FROM: U.S. DEPARTMENT OF JUSTICE
NEW JERSEY INVESTOR PLEADS GUILTY FOR ROLE IN BID-RIGGING
SCHEME AT MUNICIPAL TAX LIEN AUCTIONS
Investigation Has Yielded 12 Guilty Pleas
WASHINGTON — A financial investor who purchased municipal tax liens pleaded guilty today for his role in a conspiracy to rig bids for the sale of tax liens auctioned by municipalities in New Jersey, the Department of Justice announced.
A felony charge was filed today in U.S. District Court for the District of New Jersey in Newark, against Norman T. Remick, of Barnegat, N.J. According to the charge, from in or about the beginning of 2007 until approximately February 2009, Remick participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to allocate among certain bidders which liens each would bid on. The department said that Remick proceeded to submit bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
"The conspirators illegally met and engaged in anticompetitive discussions to allocate bids amongst themselves at tax lien auctions in New Jersey, depriving distressed homeowners of competitive interest rates at a time when they most needed them," said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division's criminal enforcement program. "Prosecuting these types of bid-rigging schemes remains a top priority for the division."
The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. State law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.
According to the court documents, Remick was involved in a conspiracy with others not to bid against one another at municipal tax lien auctions in New Jersey. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens that earned a higher interest rate. Property owners were, therefore, made to pay higher interest on their tax debts than they would have paid had their liens been purchased through open and honest competition, the department said.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the $1 million statutory maximum.
Today's plea is the 12th guilty plea resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions. Eight individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby and David Butler – and three companies – DSBD LLC, Crusader Servicing Corp. and Mercer S.M.E. Inc. – have previously pleaded guilty as part of this investigation.
Today's charge was brought in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants.
Friday, April 26, 2013
SECRETARY OF DEFENSE HAGEL MEETS WITH MEDIA IN CAIRO, EGYPT
FROM: U.S. DEPARTMENT OF DEFENSE
Presenter: Secretary of Defense Chuck Hagel
April 24, 2013 Media Availability with Secretary Hagel in Cairo, Egypt
SECRETARY OF DEFENSE CHUCK HAGEL: Okay, good, good. Good afternoon. How were the pyramids?
Q: Still there, huh.
Q: We wouldn't know.
SEC. HAGEL: You worked, that's right. Yeah, well, let me open up with a couple of comments, and then we'll go to whatever you want to talk about.
I wanted to stop in Egypt to, first, reaffirm American commitment to Egypt's emerging democracy, encourage the democratic and economic reforms that are underway here. Egypt's been an important partner of the U.S. over many years, and I wanted to get acquainted with the new president. I did not know him. I knew many of the military leaders.
So today was -- was a day to get acquainted, get reacquainted, and also reaffirm America's commitment to this emerging democracy. It is not easy. This is a difficult part of the world. This is a large country, an important country. They are undertaking the right course of action, human dignity and freedom and democratic norms and governance. We are committed to helping any nation that does that.
So we discussed, the president and I, many issues this afternoon, had a good meeting. I spent a lot of time with the defense minister and a number of his representatives. Some I've known over the years. So I was -- I was very, very happy that I stopped here and pleased that I spent the day to really take my own assessment of the situation here.
So that's what I was doing here. I'd be glad to respond to your questions.
Q: Question for you about Syria and chemical weapons. We haven't had a chance to ask you that since before the news of the Israeli assessment. What do you make of this new Israeli assessment, that they have used chemical weapons?
SEC. HAGEL: Well, when I was in Israel, they did not give me that assessment. I guess it wasn't complete. So I haven't seen the specifics, haven't talked to any Israeli officials, nor have I talked to any of our intelligence officials specifically about it. As I said, our intelligence agency, our agencies are assessing the information. So I really don't have anything to say beyond that.
Q: Is there -- sorry to follow up -- I'll try -- is there a danger here, a risk that U.S. credibility comes into question? Because there's been this red line declared. And yet you now have the British and the French also very strong suspicions, and now you have this very explicit confirmation from Israeli military intelligence.
SEC. HAGEL: Well, I don't think there's any danger. Suspicions are one thing. Evidence is another. I think we have to be very careful here before we make any conclusions -- draw any conclusions based on -- on real intelligence. And that's not at all questioning other nations' intelligence, but the United States relies on its own intelligence and must. So until I can see that intelligence, I really don't have anything else to say.
Q: Mr. Secretary, you said that they did not give you that assessment, but you spent a lot of time with Defense Minister Ya'alon. Did -- what did he discuss with you about Syrian chemical weapons? I mean, did he give you other assessments? Did he say they were still pending? Did he give you a different story? Or did he not talk to you about it?
SEC. HAGEL: Well, you know I don't discuss my conversations with any senior officials, nor -- nor do I get into any specifics -- any of our allies' specific conversations I had. We talked about everything. We talked about Syria. We talked about chemical weapons. We talked about the region. We talked about many issues. And we did talk about this issue.
Q: Well, with all due respect, you do talk about what you discuss with senior officials all the time. I mean, did -- it's an important question.
SEC. HAGEL: I don't discuss with you what I discuss with senior officials.
Q: Well, I understand, but I still think it's a fair question. Did the minister bring this up with you or not?
SEC. HAGEL: I said he did. We talked about it. I said we talked about it.
Q: But not that assessment particularly --
SEC. HAGEL: Well --
Q: -- that the IDF came out with
SEC. HAGEL: No, because I -- I think, as I just said earlier, I don't know if that assessment had been completed when I was there. So -- go ahead.
Q: I was going to ask you, do you think that assessment reflects the Israeli government's position at this point? Do you think it was just the IDF wanting to put that out there? And when we talk about a red line, you know, looking down the road, let's say we do find that this was true, that there was chemical weapons used. How do you decide -- does it -- does setting the red line -- does it mean it has to be used to a certain degree, so many people have to be affected in order to cross that red -- how -- how do we define a red line?
SEC. HAGEL: Well, first, I can't address whose assessment you're referring to was specifically in Israel. I assume it was an Israeli assessment, but I haven't seen it. That's my point. And I can't respond to something I don't know about, nor have I seen.
I'm not sure I understand your question about assessing red lines.
Q: (off mic) what would be a trigger, you know -- I mean, if a small amount is used, that's not the same as a large amount being used --
SEC. HAGEL: No.
Q: -- and, therefore, our response would -- would depend on those kinds of factors. Is that the kind of thing that you guys are talking about, in terms of how you would respond, if you were to determine that the line was crossed?
SEC. HAGEL: Well, we're looking at all possibilities, assessing all situations, and until we have intelligence, until we have facts, until we have confidence in those facts, then I have nothing else to say about it.
Q: Has -- has the Defense Department -- has the U.S. government sought clarification on what the military intelligence officer reported in his speech? And do you know, is that -- again, is that the official Israeli assessment on what happened there at Aleppo in Damascus? Do you know that?
SEC. HAGEL: Well, first -- first, you all know more about it than I do on official assessments. I have not talked to anybody about the Israeli assessment or report. That's first. And what I rely on is specific U.S. intelligence agency assessments. And any recommendations I would make to the president would have to come from those assessments, from our intelligence agencies.
Q: Do you think there's a risk, sir, that -- do you think that we need to make -- the U.S. needs to make the determination relatively quickly, now that you have three close allies having put out these assessments? Does the U.S. need to make a determination in the next week or few weeks or months? I mean, what are we looking at in terms of a timeline here?
SEC. HAGEL: Well, I don't think -- I don't think you judge these kinds of serious matters based on you have a timeline. It's based on the facts. It's based on intelligence. It's -- it's based on what you know, what you don't know, and what you think you know.
But this is serious business. And you want to be as sure as you can be on these kind of things. And until I see our intelligence assessments and the results of those, I can't respond any further.
Q: Sir, you have an intelligence background. How long do these things take? What's the --
SEC. HAGEL: I'm not in the intelligence business. I was on the Intelligence Committee in the Congress, co-chaired the president's Intelligence Advisory Board, but to say I have an intelligence background, I think, is a stretch.
But you don't take intelligence and say, okay, here's the timeframe. We're going to have it done in 24 hours. Intelligence is a matter of many pieces coming together. You look at all those pieces and facts. Sometimes it's easy. Most times it's not easy.
So you take the facts as they are. You get those facts. You do all the things you've got to do to make an assessment based on what you know and the facts, and then you come to some conclusion and some judgment based on that -- it's like a big mosaic. And I just don't have anything more to say until I see what our intelligence agencies have.
Q: How about a different topic?
GEORGE LITTLE: Thanks. That's all right. We've got to run now.
Q: (off mic)
SEC. HAGEL: All right. We'll take one more (off mic)
Q: (off mic)
Q: I have an Egypt question for you.
SEC. HAGEL: Go ahead, Bob, and then -- okay, all right.
Q: (off mic)
Q: So, I mean, the U.S. provides $1.7 billion to Egypt by way of military assistance each year. And most of that goes towards upgrading fighter jets and military tanks. But the problem that Egypt seems to face right now is counterterrorism. Is there any thought being given to taking or diverting some of that money towards counterterrorism efforts that Egypt needs right now than upgrading fighter planes and tanks?
SEC. HAGEL: Well, as you know, that's a program that goes through the FMF program, Foreign Military Financing, and Egypt makes assessments on where they think their security needs are.
Q: One more on Egypt, if I could. The Sinai is of interest to Israel, your first stop. I'm curious whether the rise of militancy in Sinai came up today, whether the Egyptians pledged anything to sort of tamp that down, which could be a big problem with the Israelis.
SEC. HAGEL: We did talk about the Sinai. We talked about many issues today and all the big issues that affect Israel's and Egypt's security, affects the Middle East security, stability, regional stability, America's security. Yes, we talked about it all.
Q: Thanks.
MR. LITTLE: Got to wrap up (off mic)
SEC. HAGEL: Thank you.
Q: Thank you very much.
Q: Thank you, Mr. Secretary.
U.S. CONGRATULATES THREE NATIONS ON THEIR NATIONAL DAYS
FROM: U.S. DEPARTMENT OF STATE
South Africa's Freedom Day
Press Statement
John Kerry
Secretary of State
Washington, DC
April 26, 2013
On behalf of President Obama and the people of the United States, I congratulate the people of the Republic of South Africa and offer my best wishes as you celebrate Freedom Day April 27.
The partnership between the United States and South Africa is founded on a common set of principles and ideals that include democracy, respect for human rights, religious freedom, and the rule of law.
Celebrating this Freedom Day, we commemorate the remarkable progress that South Africans have achieved since the first inclusive election 19 years ago. Your successful struggle to overcome apartheid remains a testament to the power of democracy and an inspiration to people around the world who value freedom.
I commend South Africa’s progress as a nation and its dedication to the development of the African continent. The United States looks forward to continued cooperation and shared success in the future.
I offer you my best wishes on the occasion of this important anniversary and join the country in wishing President Mandela a speedy recovery.
On the Occasion of the Republic of Togo's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
April 26, 2013
On behalf of the American people, I extend my best wishes to the people of Togo as they celebrate their independence on April 27.
In commemorating this important event, we also celebrate our long history of friendly and productive relations.
The United States welcomes Togo’s efforts as a member of the United Nations Security Council and the Economic Community of West African States to support global and regional peace and prosperity.
We look forward to continued cooperation to promote democracy and economic growth in Togo.
On the Occasion of the Republic of Sierra Leone's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
April 26, 2013
On behalf of all Americans, I send best wishes to the people of Sierra Leone as they celebrate 52 years of independence on April 27.
We congratulate Sierra Leone on having completed last year its third consecutive series of free and fair presidential and parliamentary elections, which marks a milestone for democracy and stability in your country. The active participation by so many Sierra Leoneans in this process serves as an example for the entire world to emulate.
Together with its recent deployment of another battalion of peacekeepers, Sierra Leone is now truly an important contributor to Africa’s collective security. This day is a well-earned opportunity for Sierra Leoneans to commemorate their commitment to freedom, democracy, and the rule of law.
The United States welcomes and encourages Sierra Leone’s ongoing efforts to promote open government, to combat corruption, and to strengthen investment in its people.
The United States looks forward to continued partnership with Sierra Leone as our countries work to achieve our common goals and help all Sierra Leoneans enjoy greater benefits of peace and prosperity in the coming year.
South Africa's Freedom Day
Press Statement
John Kerry
Secretary of State
Washington, DC
April 26, 2013
On behalf of President Obama and the people of the United States, I congratulate the people of the Republic of South Africa and offer my best wishes as you celebrate Freedom Day April 27.
The partnership between the United States and South Africa is founded on a common set of principles and ideals that include democracy, respect for human rights, religious freedom, and the rule of law.
Celebrating this Freedom Day, we commemorate the remarkable progress that South Africans have achieved since the first inclusive election 19 years ago. Your successful struggle to overcome apartheid remains a testament to the power of democracy and an inspiration to people around the world who value freedom.
I commend South Africa’s progress as a nation and its dedication to the development of the African continent. The United States looks forward to continued cooperation and shared success in the future.
I offer you my best wishes on the occasion of this important anniversary and join the country in wishing President Mandela a speedy recovery.
On the Occasion of the Republic of Togo's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
April 26, 2013
On behalf of the American people, I extend my best wishes to the people of Togo as they celebrate their independence on April 27.
In commemorating this important event, we also celebrate our long history of friendly and productive relations.
The United States welcomes Togo’s efforts as a member of the United Nations Security Council and the Economic Community of West African States to support global and regional peace and prosperity.
We look forward to continued cooperation to promote democracy and economic growth in Togo.
On the Occasion of the Republic of Sierra Leone's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
April 26, 2013
On behalf of all Americans, I send best wishes to the people of Sierra Leone as they celebrate 52 years of independence on April 27.
We congratulate Sierra Leone on having completed last year its third consecutive series of free and fair presidential and parliamentary elections, which marks a milestone for democracy and stability in your country. The active participation by so many Sierra Leoneans in this process serves as an example for the entire world to emulate.
Together with its recent deployment of another battalion of peacekeepers, Sierra Leone is now truly an important contributor to Africa’s collective security. This day is a well-earned opportunity for Sierra Leoneans to commemorate their commitment to freedom, democracy, and the rule of law.
The United States welcomes and encourages Sierra Leone’s ongoing efforts to promote open government, to combat corruption, and to strengthen investment in its people.
The United States looks forward to continued partnership with Sierra Leone as our countries work to achieve our common goals and help all Sierra Leoneans enjoy greater benefits of peace and prosperity in the coming year.
GENERAL DEMPSEY DISCUSSES MULTITUDE OF SUBJECTS WITH CHINESE LEADERS
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| Former U.S. Secretary of State Henry A Kissinger , left, and U.S. Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, meet in Beijing, China, Apr 23, 2013. DOD photo by D. Myles Cullen |
FROM: U.S. DEPARTMENT OF DEFENSE
China Visit Sparks Dynamic Engagements, Dempsey Says
By Karen Parrish
American Forces Press Service
BEIJING, April 24, 2013 - With his visit to China nearly complete, Army Gen. Martin E. Dempsey said today he has been afforded good access to senior Chinese leaders, junior leaders and future leaders.
Dempsey, the chairman of the Joint Chiefs of Staff, said during a media roundtable that one thread common to the meetings he's attended here is that with power comes responsibility -- local, regional and, increasingly, global.
Dempsey said his discussions in China, which is widely considered the world's greatest rising power, have ranged from regional concerns such as territorial disputes to the potentially global issue of North Korea's nuclear ambitions. Other major topics in his talks here this week, he said, included growing risk in the cyber domain and the U.S. rebalance to the Asia-Pacific region.
Earlier this week, Dempsey met separately with Chinese President Xi Jinping and State Councilor Yang Jiechi. He also met individually and in some group meetings with senior Chinese army officers, including Gen. Chang Wanguan, minister of national defense; Gen. Fan Changlong, vice chairman of the Central Military Commission; and his host for this visit, Gen. Fang Fenghui, chief of the general staff.
Addressing reporters' questions on North Korea today, Dempsey said the ballistic missile and nuclear tests Pyongyang has conducted show that nation is "on a path that will certainly increase risk in the region, and ultimately could present risk globally."
The United States has responded to North Korean provocations in the past, he noted, by denouncing North Korea's path toward nuclear weapons and its failure to live up to agreements and U.N. Security Council resolutions against such development. The U.S. military posture toward a nuclear-armed North Korea is one of deterrence and preparedness, the chairman said.
"If they were to launch, we do have the capability to defend ourselves, our people, our facilities," Dempsey added.
China, North Korea's primary ally along with Russia, has been very clear that among its national interests is a non-nuclearized Korean Peninsula, Dempsey said. He added that he will leave China believing that its leaders are "as concerned as we are" about the issue.
Dempsey said his meetings here did not touch on specific measures the Chinese might take in response to further North Korean actions.
"We think there's still time for North Korea's leaders to back away from further provocations, and we certainly hope they take the opportunity to do so," he added.
To questions on cyber concerns involving China, Dempsey said he has the advantage of being able to build on decisions that already have been taken. He noted that during Secretary of State John F. Kerry's visit here earlier this month, the Chinese agreed to form a cyber working group.
"I reinforced my belief that that was timely and appropriate," the chairman said. "We had a very useful discussion about how the challenges in cyber are migrating from theft to disruption, and left unaddressed, are likely to lead to destruction."
The nations that have the strongest economies and rely most on technology are most vulnerable to cyber activity, Dempsey said. In discussions with Chinese leaders, he said, "I encouraged them to put their best and brightest minds to seek a level of collaboration and transparency with us, because it will affect both of our futures."
The chairman said he supports developing a code of conduct for cyber activity, likening the concept to Albert Einstein's assertion that "if I had 60 minutes to save the world, I should spend 55 minutes understanding the problem and only five minutes solving it."
"I think we're in that '55 minutes,'" Dempsey said. "I think we're in that period of gaining a common understanding. ... Cyber continues to evolve, whether we would like it to or not."
State, nonstate and individual actors all operate in the cyber domain, he said, and while cyber originated as an open-architecture system designed to allow information to move freely, "there has to be some code of conduct established."
The chairman also responded to reporters' questions about the territorial dispute between China and Japan over a group of uninhabited islands in the East China Sea, adjacent to possible undersea oil reserves. Japan refers to them as the Senkaku Islands, while in China they are known as the Diaoyu Islands.
Dempsey noted the United States doesn't take sides in such disputes and urges peaceful resolution to all such issues.
In discussions, both he and the Chinese were "very candid" about their respective positions on the islands, he said.
"In the case of Japan, in particular, I was careful to remind them that we do have certain treaty obligations with Japan that we would honor," the chairman said. "And therefore, it was in everyone's best interest that this be resolved peacefully and without military coercion."
The chairman said many of the senior and mid-level Chinese military leaders he spoke with here sought clarity about the U.S. rebalance to the Asia-Pacific region.
"I think I was successful in describing it as a long-term process," he said. "We've never suggested this would be something that would manifest itself overnight. But also, it was a strategic imperative for us to rebalance, over time, to the Pacific."
Economic, security, and demographic trends all lead to the Asia-Pacific region, he said.
"Furthermore, I tell them this wasn't about them, meaning China. Of course they're a factor, ... but this wasn't a strategy that was aimed at them in any way," Dempsey said.
The chairman added that military considerations are only part of the broader U.S. regional strategy. "I pointed out to them that among the first visitors who came here after our ... rebalancing initiative was announced was Jack Lew, the secretary of the treasury," he said.
Dempsey noted that President Barack Obama and Chinese President Xi Jinping have discussed forging a new relationship between the two countries. "That new relationship will, of course, be established in the context of our other and enduring relationships in the region," he said.
In every case, Dempsey said, discussion about the rebalance was dynamic.
"I like to believe that my trip here has contributed to a greater understanding of what we're doing and why," he said. "But it's something that we're going to have to continue to work over time."
Today, the chairman visited China's National Defense University, the 4th Aviation Regiment and the Army Aviation Academy.
The cadets Dempsey spoke with are training to become either maintainers or pilots of aircraft, he noted. In discussion with the Chinese cadets, Dempsey said, "they probably asked me a dozen or more questions. One of the questions was about an issue of geostrategic importance, and 11 of them were about leadership."
"It was fascinating, actually," he added. "I found them to be genuinely interested in how I described myself as a leader, what were the attributes I thought were important, ... [and] the difference between junior-level leadership and senior-level leadership."
The chairman said his answer to the cadets was fundamentally the same thing he would tell a junior military leader in the U.S. forces.
"That is, that what we expect our junior leaders to do is to become competent in their chosen fields, so if you're an aviator, you should aspire to be the best aviator that you can be," Dempsey said. "And then, spend as much time thinking about how to be a man or woman of character, because leadership is the combination of competence and character."
SEC CHARGES CAPITAL ONE FINANCIAL CORPORATION WITH UNDERSTATING AUTO LOAN LOSSES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., April 24, 2013 — The Securities and Exchange Commission today charged Capital One Financial Corporation and two senior executives for understating millions of dollars in auto loan losses incurred during the months leading into the financial crisis.
An SEC investigation found that in financial reporting for the second and third quarters of 2007, Capital One failed to properly account for losses in its auto finance business when they became higher than originally forecasted. The profitability of its auto loan business was primarily derived from extending credit to subprime consumers. As credit markets began to deteriorate, Capital One’s internal loss forecasting tool found that the declining credit environment had a significant impact on its loan loss expense. However, Capital One failed to properly incorporate these internal assessments into its financial reporting, and thus understated its loan loss expense by approximately 18 percent in the second quarter and 9 percent in the third quarter.
Capital One agreed to pay $3.5 million to settle the SEC’s charges. The two executives – former Chief Risk Officer Peter A. Schnall and former Divisional Credit Officer David A. LaGassa – also agreed to settle the charges against them.
"Accurate financial reporting is a fundamental obligation for any public company, particularly a bank’s accounting for its provision for loan losses during a time of severe financial distress," said George Canellos, Co-Director of the Division of Enforcement. "Capital One failed in this responsibility by underreporting expenses relating to its loan losses even as its own internal forecasting tool had signaled an increase in incurred losses due to the impending financial crisis."
According to the SEC’s order instituting settled administrative proceedings, beginning in October 2006 and continuing through the third quarter of 2007, Capital One Auto Finance (COAF) experienced significantly higher charge-offs and delinquencies for its auto loans than it had originally forecasted. The elevated losses occurred within every type of loan in each of COAF’s lines of business. Its internal loss forecasting tool assessed that its escalating loss variances were attributable to an increase in a forecasting factor it called the "exogenous" – which measured the impact on credit losses from conditions external to the business such as macroeconomic conditions. A change in this exogenous factor generally had a significant impact on COAF’s loan loss expense, and it was closely monitored by the company through its loss forecasting tool. Capital One determined that incorporating the full exogenous levels into its loss forecast would have resulted in a second quarter allowance build of $72 million by year-end. Since no such expense was incorporated for the second quarter, it would have resulted in a third quarter allowance build of $85 million by year-end.
However, according to the SEC’s order, instead of incorporating the results of its loss forecasting tool, Capital One failed to include any of COAF’s exogenous-driven losses in its second quarter provision for loan losses and included only one-third of such losses in the third quarter. The exogenous losses were an integral component of Capital One’s methodology for calculating its provision for loan losses. As a result, Capital One’s second and third quarter loan loss expense for COAF did not appropriately estimate probable incurred losses in accordance with accounting requirements.
The SEC’s order also finds that Schnall and LaGassa caused Capital One’s understatements of its loan loss expense by deviating from established policies and procedures and failing to implement proper internal controls for determining its loan loss expense. Schnall, who oversaw Capital One’s credit management function, took inadequate steps to communicate COAF’s exogenous treatment to the senior management committee in charge of ensuring that the company’s allowance was compliant with accounting requirements. Despite warnings, he also failed to ensure that the exogenous treatment was properly documented. LaGassa, who managed the COAF loss forecasting process, failed to ensure that the proper exogenous levels were incorporated into the COAF loss forecast. He also failed to ensure that the exogenous treatment was documented consistent with policies and procedures.
"Financial institutions, especially those engaged in subprime lending practices, must have rigorous controls surrounding their process for estimating loan losses to prevent material misstatements of those expenses," said Gerald W. Hodgkins, Associate Director of the Division of Enforcement. "The SEC will not tolerate deficient controls surrounding an issuer’s financial reporting obligations, including quarterly reporting obligations."
Capital One’s material understatements of its loan loss expense and internal controls failures violated the reporting, books and records, and internal controls provisions of the federal securities laws, namely Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20 and 13a-13. Schnall and LaGassa caused Capital One’s violations of Section 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rule 13a-13 thereunder and violated Exchange Act Rule 13b2-1 by indirectly causing Capital One’s books and records violations.
Schnall agreed to pay an $85,000 penalty and LaGassa agreed to pay a $50,000 penalty to settle the SEC’s charges. Capital One and the two executives neither admitted nor denied the findings in consenting to the SEC’s order requiring them to cease and desist from committing or causing any violations of these federal securities laws.
The SEC’s investigation was conducted by Senior Counsel Anita Bandy and Assistant Chief Accountant Amanda deRoo and supervised by Assistant Director Conway Dodge.
Washington, D.C., April 24, 2013 — The Securities and Exchange Commission today charged Capital One Financial Corporation and two senior executives for understating millions of dollars in auto loan losses incurred during the months leading into the financial crisis.
An SEC investigation found that in financial reporting for the second and third quarters of 2007, Capital One failed to properly account for losses in its auto finance business when they became higher than originally forecasted. The profitability of its auto loan business was primarily derived from extending credit to subprime consumers. As credit markets began to deteriorate, Capital One’s internal loss forecasting tool found that the declining credit environment had a significant impact on its loan loss expense. However, Capital One failed to properly incorporate these internal assessments into its financial reporting, and thus understated its loan loss expense by approximately 18 percent in the second quarter and 9 percent in the third quarter.
Capital One agreed to pay $3.5 million to settle the SEC’s charges. The two executives – former Chief Risk Officer Peter A. Schnall and former Divisional Credit Officer David A. LaGassa – also agreed to settle the charges against them.
"Accurate financial reporting is a fundamental obligation for any public company, particularly a bank’s accounting for its provision for loan losses during a time of severe financial distress," said George Canellos, Co-Director of the Division of Enforcement. "Capital One failed in this responsibility by underreporting expenses relating to its loan losses even as its own internal forecasting tool had signaled an increase in incurred losses due to the impending financial crisis."
According to the SEC’s order instituting settled administrative proceedings, beginning in October 2006 and continuing through the third quarter of 2007, Capital One Auto Finance (COAF) experienced significantly higher charge-offs and delinquencies for its auto loans than it had originally forecasted. The elevated losses occurred within every type of loan in each of COAF’s lines of business. Its internal loss forecasting tool assessed that its escalating loss variances were attributable to an increase in a forecasting factor it called the "exogenous" – which measured the impact on credit losses from conditions external to the business such as macroeconomic conditions. A change in this exogenous factor generally had a significant impact on COAF’s loan loss expense, and it was closely monitored by the company through its loss forecasting tool. Capital One determined that incorporating the full exogenous levels into its loss forecast would have resulted in a second quarter allowance build of $72 million by year-end. Since no such expense was incorporated for the second quarter, it would have resulted in a third quarter allowance build of $85 million by year-end.
However, according to the SEC’s order, instead of incorporating the results of its loss forecasting tool, Capital One failed to include any of COAF’s exogenous-driven losses in its second quarter provision for loan losses and included only one-third of such losses in the third quarter. The exogenous losses were an integral component of Capital One’s methodology for calculating its provision for loan losses. As a result, Capital One’s second and third quarter loan loss expense for COAF did not appropriately estimate probable incurred losses in accordance with accounting requirements.
The SEC’s order also finds that Schnall and LaGassa caused Capital One’s understatements of its loan loss expense by deviating from established policies and procedures and failing to implement proper internal controls for determining its loan loss expense. Schnall, who oversaw Capital One’s credit management function, took inadequate steps to communicate COAF’s exogenous treatment to the senior management committee in charge of ensuring that the company’s allowance was compliant with accounting requirements. Despite warnings, he also failed to ensure that the exogenous treatment was properly documented. LaGassa, who managed the COAF loss forecasting process, failed to ensure that the proper exogenous levels were incorporated into the COAF loss forecast. He also failed to ensure that the exogenous treatment was documented consistent with policies and procedures.
"Financial institutions, especially those engaged in subprime lending practices, must have rigorous controls surrounding their process for estimating loan losses to prevent material misstatements of those expenses," said Gerald W. Hodgkins, Associate Director of the Division of Enforcement. "The SEC will not tolerate deficient controls surrounding an issuer’s financial reporting obligations, including quarterly reporting obligations."
Capital One’s material understatements of its loan loss expense and internal controls failures violated the reporting, books and records, and internal controls provisions of the federal securities laws, namely Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20 and 13a-13. Schnall and LaGassa caused Capital One’s violations of Section 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rule 13a-13 thereunder and violated Exchange Act Rule 13b2-1 by indirectly causing Capital One’s books and records violations.
Schnall agreed to pay an $85,000 penalty and LaGassa agreed to pay a $50,000 penalty to settle the SEC’s charges. Capital One and the two executives neither admitted nor denied the findings in consenting to the SEC’s order requiring them to cease and desist from committing or causing any violations of these federal securities laws.
The SEC’s investigation was conducted by Senior Counsel Anita Bandy and Assistant Chief Accountant Amanda deRoo and supervised by Assistant Director Conway Dodge.
U.S.-U.A.E. DEFENSE COOPERATION DISCUSSION
 |
| U.S. Defense Secretary Chuck Hagel meets with United Arab Emirates Gen. Mohammed bin Zayed Al Nahyan, center, the crown prince of Abu Dhabi and deputy supreme commander of the United Arab Emirates armed forces, and Sheikh Abdullah bin Zayed Al Nahyan, foreign affairs minister, in Abu Dhabi in the United Arab Emirates, April 25, 2013. Hagel met with defense leaders on his last stop of a six-day trip to the region. Photo Credit: DOD. |
FROM: U.S. DEPARTMENT OF DEFENSE
Hagel, Crown Prince Discuss U.S.-U.A.E. Defense Cooperation
By Cheryl Pellerin
American Forces Press Service
ABOARD A MILITARY AIRCRAFT, April 26, 2013 - Defense Secretary Chuck Hagel's first trip to the Middle East included a visit and official dinner with Gen. Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the United Arab Emirates armed forces.
The two men met last night and reaffirmed the strong U.S. commitment to defense and security cooperation between their countries, Pentagon Press Secretary George Little said today in a statement.
In particular, he said, they discussed the United Arab Emirates' purchase of 25 F-16 Block 60 aircraft and the U.S. decision to release standoff weapons for sale to defend the United Arab Emirates. The smart standoff weapons can navigate to their targets and are more precise and can be fired at further distances than conventional weapons.
"The additional F-16s will increase both nations' interoperability and enhance their ability to perform joint and coalition security operations," Little added.
Hagel expressed appreciation for United Arab Emirates' contributions to NATO missions in Afghanistan and Libya.
"The secretary and the crown prince concurred on the need to build on the already robust defense ties, which include bilateral exercises and training, to expand cooperation in such areas as ballistic missile defense," Little said.
The United States and the United Arab Emirates agreed to hold regular bilateral defense consultations to further coordinate expanding military activities, the press secretary said.
They also discussed a range of regional challenges, he said, including the need for Iran to meet its international obligations with respect to its nuclear program, the ongoing conflict in Syria, and countering the threat of violent extremism.
Hagel's trip to the Middle East, which began April 20 and ends later today, also took the secretary to Israel, Jordan, Saudi Arabia and Egypt to discuss common issues and interests in the region
THE CHEMISTRY OF SUN AND SNOW IN THE ARTIC
.jpg) |
| Artic Sun. U.S. Fish And Wildlife Service |
Sunlit Snow Triggers Atmospheric Cleaning, Ozone Depletion in the Arctic
Finding is related to snow atop sea ice, adding a new dimension to scientific concerns about loss of Arctic ice
National Science Foundation-funded researchers at Purdue University have discovered that sunlit snow is the major source of atmospheric bromine in the Arctic, the key to unique chemical reactions that purge pollutants and destroy ozone.
The new research also indicates that the surface snowpack above Arctic sea ice plays a previously unappreciated role in the bromine cycle and that loss of sea ice, which been occurring at an increasingly rapid pace in recent years, could have extremely disruptive effects in the balance of atmospheric chemistry in high latitudes.
The team's findings suggest the rapidly changing Arctic climate--where surface temperatures are rising three times faster than the global average--could dramatically change its atmospheric chemistry, said Paul Shepson, an NSF-funded researcher who led the research team. The experiments were conducted by Kerri Pratt, a postdoctoral researcher funded by the Division of Polar Programs in NSF's Geosciences Directorate.
"We are racing to understand exactly what happens in the Arctic and how it affects the planet because it is a delicate balance when it comes to an atmosphere that is hospitable to human life," said Shepson, who also is a founding member of the Purdue Climate Change Research Center. "The composition of the atmosphere determines air temperatures, weather patterns and is responsible for chemical reactions that clean the air of pollutants."
A paper detailing the results of the research, some of which was funded by NSF and some by the National Aeronautics and Space Administration, was recently published online at Nature Geoscience.
 |
| Arctic Sea Ice. Credit: NOAA. |
Ozone in the lower atmosphere behaves differently from the stratospheric ozone involved in the planet's protective ozone layer. This lower atmosphere ozone is a greenhouse gas that is toxic to humans and plants, but it also is an essential cleaning agent of the atmosphere.
Interactions between sunlight, ozone and water vapor create an "oxidizing agent" that scrubs the atmosphere of most of the pollutants human activity releases into it, Shepson said.
Temperatures at the poles are too cold for the existence of much water vapor and in the Arctic this cleaning process appears instead to rely on reactions on frozen surfaces involving molecular bromine, a halogen gas derived from sea salt.
This gaseous bromine reacts with and destroys atmospheric ozone. This aspect of the bromine chemistry works so efficiently in the Arctic that ozone is often entirely depleted from the atmosphere above sea ice in the spring, Shepson noted.
"This is just a part of atmospheric ozone chemistry that we don't understand very well, and this unique Arctic chemistry teaches us about the potential role of bromine in other parts of the planet," he said. "Bromine chemistry mediates the amount of ozone, but it is dependent on snow and sea ice, which means climate change may have important feedbacks with ozone chemistry."
While it was known that there is more atmospheric bromine in polar regions, the specific source of the natural gaseous bromine has remained in question for several decades, said Pratt, a Polar Programs-funded postdoctoral fellow and lead author of the paper.
"We thought that the fastest and best way to understand what is happening in the Arctic was to go there and do the experiments right where the chemistry is happening," Pratt said.
She and Purdue graduate student Kyle Custard performed the experiments in -45 to -34 Celsius (-50 to -30 Fahrenheit) wind chills near Barrow, Alaska. The team examined first-year sea ice, salty icicles and snow and found that the source of the bromine gas was the top surface snow above both sea ice and tundra.
"Sea ice had been thought to be the source of the gaseous bromine," she said. "We had an 'of course!' moment when we realized it was the snow on top of the sea ice. The snow is what is in direct contact with the atmosphere. Sea ice is critical to the process, though. Without it, the snow would fall into the ocean, and this chemistry wouldn't take place. This is among the reasons why the loss of sea ice in the Arctic will directly impact atmospheric chemistry."
The team also discovered that sunlight triggered the release of bromine gas from the snow and the presence of ozone increased the production of bromine gas.
"Salts from the ocean and acids from a layer of smog called Arctic haze meet on the frozen surface of the snow, and this unique chemistry occurs," Pratt said. "It is the interface of the snow and atmosphere that is the key."
A series of chemical reactions that quickly multiplies the amount of bromine gas present, called the "bromine explosion," is known to occur in the atmosphere. The team suggests this also occurs in the spaces between the snow crystals and wind then releases the bromine gas up into the air above the snow.
The team performed 10 experiments with snow and ice samples contained in a "snow chamber," a box constructed of aluminum with a special coating to prevent surface reactions and a clear acrylic top. Clean air with and without ozone was allowed to flow through the chamber and experiments were performed in darkness and in natural sunlight.
The team also measured the levels of bromine monoxide, a compound formed from the reaction of bromine atoms with ozone, through flights of the Purdue Airborne Laboratory for Atmospheric Research.
Shepson is the pilot of this specially equipped aircraft, which he and air operations technical specialist Brian Stirm flew from Indiana to Barrow for these experiments. They found the compound was most prevalent over snow-covered first-year sea ice and tundra, consistent with their snow chamber experiments.
The experiments were performed from March to April 2012 and were part of NASA's Bromine, Ozone and Mercury Experiment, or BROMEX. The goal of the study is to understand the implications of Arctic sea ice reduction on tropospheric chemistry.
Shepson's group next plans to perform laboratory studies to test the proposed reaction mechanisms and to return to Barrow to perform more snow chamber experiments.
In addition, Shepson is co-leading a team using ice-tethered buoys to measure carbon dioxide, ozone and bromine monoxide across the Arctic Ocean, and Pratt is working with scientists from the University of Washington to examine the chemistry of snow from across the Arctic Ocean.
"In the Arctic, climate change is happening at an accelerated pace," Pratt said. "A big question is what will happen to atmospheric composition in the Arctic as the temperatures rise and snow and ice decline even further?"
-NSF-
CDC WARNING REGARDING POSSIBLE WORKER HEALTH RISKS ASSOCIATED WITH NANOMATERIALS
FROM: CENTERS FOR DISEASE CONTROL
To protect worker health NIOSH recommends new exposure levels for nanomaterials
What
New Current Intelligence Bulletin issued by CDC’s National Institute for Occupational Safety and Health (NIOSH) reports the results of research in which various types of carbon nanotubes/carbon nanofibers can cause pulmonary fibrosis, inflammatory effects, and granulomas in laboratory animals exposed to them by inhalation. NIOSH considers these animal study findings to be relevant to human health risk because similar lung effects have been observed in workers exposed to respirable particulates of other materials in dusty jobs.
Who
CDC’s National Institute for Occupational Safety and Health (NIOSH) today recommended that occupational exposures to carbon nanotubes and nanofibers be controlled to reduce worker’s potential risk for certain work-related lung effects. NIOSH is the first federal agency to issue recommended exposure levels for this growing industry.
Background
The number of workers that are potentially exposed to nanomaterials cannot be determined with certainty. However, the demand for nanomaterials are expected to grow over the next decade with increasing use in energy saving products, consumer goods and the structural material of medical devices. These nanomaterials are also incorporated into plastics, ceramics, paints, coatings, and electronics, among other everyday products.
Carbon nanotubes and carbon nanofibers are only two of many types of nanomaterials being incorporated into different products to increase strength, durability, versatility, heat resistance, and other useful properties. They are routinely used by workers in a variety of manufacturing industries including, automotive, aviation, construction manufacturers of structural materials, textiles, batteries, and consumer products such as sporting goods.
To protect worker health NIOSH recommends new exposure levels for nanomaterials
What
New Current Intelligence Bulletin issued by CDC’s National Institute for Occupational Safety and Health (NIOSH) reports the results of research in which various types of carbon nanotubes/carbon nanofibers can cause pulmonary fibrosis, inflammatory effects, and granulomas in laboratory animals exposed to them by inhalation. NIOSH considers these animal study findings to be relevant to human health risk because similar lung effects have been observed in workers exposed to respirable particulates of other materials in dusty jobs.
Who
CDC’s National Institute for Occupational Safety and Health (NIOSH) today recommended that occupational exposures to carbon nanotubes and nanofibers be controlled to reduce worker’s potential risk for certain work-related lung effects. NIOSH is the first federal agency to issue recommended exposure levels for this growing industry.
Background
The number of workers that are potentially exposed to nanomaterials cannot be determined with certainty. However, the demand for nanomaterials are expected to grow over the next decade with increasing use in energy saving products, consumer goods and the structural material of medical devices. These nanomaterials are also incorporated into plastics, ceramics, paints, coatings, and electronics, among other everyday products.
Carbon nanotubes and carbon nanofibers are only two of many types of nanomaterials being incorporated into different products to increase strength, durability, versatility, heat resistance, and other useful properties. They are routinely used by workers in a variety of manufacturing industries including, automotive, aviation, construction manufacturers of structural materials, textiles, batteries, and consumer products such as sporting goods.
Thursday, April 25, 2013
SECRETARY OF DEFENSE HAGEL MAKES REMARKS IN SOUTHWEST ASIA
FROM: U.S. DEPARTMENT OF DEFENSE
Presenter: Secretary of Defense Chuck Hagel April 25, 2013
Remarks by Secretary Hagel at an Air Base in Southwest Asia
MODERATOR: Ladies and gentlemen, the secretary of defense, the Honorable Chuck Hagel. (Applause.)
SECRETARY OF DEFENSE CHUCK HAGEL: Good morning. You guys are at ease. I remember as an old sergeant -- there you go -- I've never done that before. That's -- that's pretty good, isn't it?
Thank you for having me. Thank you for allowing me to say a few words and come out and get my picture taken with you. And thank you for what you're doing. I don't have to tell you the kind of world that we live in today, the complications and the dangers. You're a very big part of helping keep our world secure and safe, stable, not easy. But it's worth doing.
I've always admired anyone who makes the armed forces their career, if for no other reason than you've figured out in your life a purpose. And not everyone can say that. So I want you to know how much we all appreciate the work you do.
I know also it's a great sacrifice for each of you with your families, but I don't have to tell you it's worth doing and your families are proud of you. We're going to do everything we can to continue to support your mission and your efforts and everything you're doing. These are defining times in the world. These are exciting times, dangerous times, but I don't know of a time for any of us to be part of something so important than right now.
You know, each generation has an opportunity to make the world better and contribute and do things, but your generation is truly part of building a new world order. And I don't think we've seen this kind of a reality and this kind of effort being put forward, nor this kind of a complete upside-down world order since the end of World War II. And what you do here and how you're doing it and your lives and your careers are going to have a tremendous impact on how this turns out, as this new world order is built.
So thank you for doing this. Thank you for giving me the privilege of being part of your team and coming out here today. I've had an interesting five days here in the Middle East. And this is my last stop after visiting five countries. We'll go back tomorrow.
Always, it's important to come out and see firsthand and listen carefully and closely to the men and women who are doing the job out here. And I very much appreciated this time out in your area. You get a little closer to what's going on and get connected better with what you're doing and how I can help you and how everybody in our enterprise can help you do your jobs better in every way we can.
Give my thanks to your families and my best regards to your families. I know how proud they are of each of you.
Now, I'd be glad to respond to questions if you've got some advice for the secretary of defense. I'm very open to that, and I welcome that. So we've got a few minutes, I think, before we take some pictures, and I'd be glad to respond to anything I can and anything that you want to talk about. Want to also acknowledge your commanding officer and all those who have responsibility of these important units out here for their leadership and what they're continuing to do for our country and our efforts.
So, general, chief, thank you each, as well as all the leaders out here in this operation.
So who wants to -- who wants to start? Anything you want to talk about. Yes?
Q: Mr. Secretary, thank you for taking my question. (Inaudible) . Recently, servicemen and women saw tuition assistance suspended and then restarted. My question is, what, if any, changes can we expect to see in fiscal year '14 to that program?
SEC. HAGEL: Tuition assistance is an important program for all the reasons you know. When I was in the Senate, I was a strong supporter -- I think all of Congress is. All of America understands the importance of it. We have reinstituted it, as you have noted, sergeant. We'll continue to make it a priority.
But in the scope of the budget realities that you all are familiar with, we are having to make some tough choices to comply with budget cuts that are significant. I wish we didn't have to do that, but we do.
So what I have to focus on, as all of our leaders, first, the readiness of the men and women who are out on the front lines and support you and your mission and what you're doing. That's number one, is to support you in your mission in every way we can. We won't cut that.
Then we've got to go from there. How then do we fairly distribute these cuts without cutting into our operations, without cutting into our maintenance? And we're balancing that now. Not easy. We'll get through it. But these are difficult -- difficult issues.
So tuition assistance, it's important. It's a priority. You all understand it. We do. But in the first scope of this, sergeant, when we made that initial decision based on those initial numbers, we had to assess what was highest priority. And I just gave you what the highest priority was. As important as tuition assistance is, will continue to be -- it was not at the same level of supporting our readiness of you all.
But, again, I say, not to minimize the importance of that program -- it is important, we will fund it, and we'll continue to fund it. Thank you.
Where are you from, sergeant?
Q: (Inaudible), sir.
SEC. HAGEL: Thank you.
Who else has a -- a question? Yes.
Q: (off mic)
SEC. HAGEL: How do I see the shift, did you say? I'm sorry. I didn't get the last part.
Q: Yes, sir. What do you see the Air Force doing -- particularly the Air Force, but the military as a whole -- to make that transition from this AOR to the Pacific?
SEC. HAGEL: Well, the larger context of your question was regarding our rebalancing of our focus with our assets around the world. As you noticed and noted in your comments, we are unwinding our -- our major combat presence in Afghanistan and we have unwound our presence in Iraq. And we have made the assessment -- and I think correctly -- that -- and, by the way, these assessments are constantly changing based on the world, based on dangers, based on assets, based on interest, based on allies. And so the world is not static; I don't have to remind any of you. It changes hour to hour, minute to minute.
So our job in the Department of Defense, a leader's job, President Obama's job, all of your jobs, is to protect our country and to assure our interest in the world, and security is the anchor to that. So that policy, as we rebalance our focus, has rebalanced more assets to the Asia Pacific, which I think is exactly right.
All our services, including the Air Force, will continue to have a very, very, very significant role in that. How can it be otherwise? We will -- we will shift in varying ways presence in operations, depending on what the threat is, depending on how we want to project power, and that is all part of a continual assessment.
So the Air Force in particular, the question you asked about, will continue to play an important role, if for no other reason than projection of power. And I think where we want to continue to go -- Secretary Gates talked about this, Secretary Panetta talked about it -- is a flexible, agile military.
The threats are shifted. Ten years ago, I don't think very many people in this room would have talked much about cyber warfare or -- or the cyber threat. Even five years ago, it was a different world. Obviously, non-state actors, Islamic fundamentalism, terrorists, the coordination of those terrorists, interests that go below the surface, these are not coming all or mainly from state threats, from nation-state threats. Most of these threats are coming from non-state actors.
And so that is shifting not only our balance of assets, but our -- our strategic interests and the strategies that protect those strategic interests and the tactics then that employ those -- those strategies. So our Air Force, our Navy, our Marines, our Army, Coast Guard, all remain -- will continue to remain vital parts of our security interests.
You may be spending more time in the Pacific. Not a bad assignment.
Did somebody else have one? Yes.
Q: Sir, thank you. (Inaudible). Quick question on the note of sequestration, with the 17 squadrons that are being temporarily stood down until the end of the fiscal year. What is your prediction on the possibility of an agreement being made prior to the end of the year to keep the squadrons flying? And if not, how do you view our CMR status up to the end of the fiscal year?
SEC. HAGEL: An agreement on what?
Q: The flying hour program to keep the squadrons flying, get them flying again, get the 17 units that were stood down.
SEC. HAGEL: Well, as I said, these strategies and our programs and our policies and where we think our needs are, and then the operations to fulfill those requirements, are in constant review. I opened up our Q&A here this morning and answered a question about tuition assistance by referencing the budget limitations.
Now, budget should never, ever hold hostage a nation's interests -- should never hold hostage a nation's security. But budgets are all part of what we live with, and so we have got to adjust and adapt to the reality of those budgets. And, yes, it will affect some of our missions. Yes, it will affect some of our strategies and how, in fact, we protect our interests and our strategic interest, in particular, and then how we adapt with our tactical operations.
So we'll continue to review and shift, but, again, I say, this is all anchored by the absolute requirement of having a ready force, an adaptable force, a flexible, agile force, and a committed force. And I said when I became secretary of defense -- I think every secretary of defense has said this, is committed to this, as all your leaders -- the one asset an institution has that's more valuable than anything else, its people. And you take care of your people. You have to take care of your people.
And we're committed to do that first, because it won't matter how many planes you have or ships you have and how sophisticated the equipment if the people aren't right, if the people are not committed, if they're not of quality. And our force is our highest priority.
Another question? Yes.
Q: Sir, (inaudible) deployed out of (inaudible), California. Speaking about strategic interests, sir, I was wondering if you could talk a little bit about the economic sanctions against Iran and what your assessment of their effectiveness is.
SEC. HAGEL: Well, I believe that our policy regarding Iran is the correct policy. We are employing all the tools that wise, great powers employ when dealing with issues and challenges and dangers. And so we are working the diplomatic track. As you noted, we're working the international sanctions -- economic sanctions track. On Iran in particular, those economic sanctions against Iran are the most effective, most international, most penetrating economic sanctions that I think have ever been employed against a country.
And we do know, by every measurement, every metric applied, that it is doing significant damage to Iran's economy. It is having an effect inside Iran. You use all the other dimensions, the threat, always, of the military option. You build an international consensus, which we have done, using the international economic sanctions. You build especially a consensus with your regional partners, which you're doing out here. And you take the entire universe of these capabilities and assets and you focus them.
The military option in these situations is always an option, but I believe -- I think the president -- I know the president believes this -- that should be the last option. And I don't know if all of these efforts that we're applying in dealing with Iran, one being international economic sanctions, will, in fact, change their attitude about what we think is their objective moving toward a nuclear weapon, possibility of delivering that weapon. I don't know if what we're doing will shift their thoughts or their approach.
But we have the time. We have the assets. We have the international community. We are working toward that end. So I think those sanctions have been effective. I think they'll continue to be effective. We can continue to do more, but it's important to remember, as I said, the international consensus in these kinds of dangerous efforts is very, very important. And we continue to build that international consensus.
GEORGE LITTLE: (off mic)
SEC. HAGEL: Okay, George. George Little, very famous man over here. You've all seen -- he's our assistant secretary for public affairs. He's the spokesman. He has everything just right all the time. And he's willing to stay for four or five hours and answer questions. Isn't that right, George? If you --
MR. LITTLE: (off mic)
SEC. HAGEL: Yeah. Guys, I am grateful personally as an American citizen for what you're doing. I'm proud as secretary of defense to be your leader. And I thank you and your families, especially, for the sacrifices you're making for our country and the efforts that we're all making to make a better world.
Now, if you all want to do some photos, I'd be very pleased if we wanted to get a picture. Thank you.
Presenter: Secretary of Defense Chuck Hagel April 25, 2013
Remarks by Secretary Hagel at an Air Base in Southwest Asia
MODERATOR: Ladies and gentlemen, the secretary of defense, the Honorable Chuck Hagel. (Applause.)
SECRETARY OF DEFENSE CHUCK HAGEL: Good morning. You guys are at ease. I remember as an old sergeant -- there you go -- I've never done that before. That's -- that's pretty good, isn't it?
Thank you for having me. Thank you for allowing me to say a few words and come out and get my picture taken with you. And thank you for what you're doing. I don't have to tell you the kind of world that we live in today, the complications and the dangers. You're a very big part of helping keep our world secure and safe, stable, not easy. But it's worth doing.
I've always admired anyone who makes the armed forces their career, if for no other reason than you've figured out in your life a purpose. And not everyone can say that. So I want you to know how much we all appreciate the work you do.
I know also it's a great sacrifice for each of you with your families, but I don't have to tell you it's worth doing and your families are proud of you. We're going to do everything we can to continue to support your mission and your efforts and everything you're doing. These are defining times in the world. These are exciting times, dangerous times, but I don't know of a time for any of us to be part of something so important than right now.
You know, each generation has an opportunity to make the world better and contribute and do things, but your generation is truly part of building a new world order. And I don't think we've seen this kind of a reality and this kind of effort being put forward, nor this kind of a complete upside-down world order since the end of World War II. And what you do here and how you're doing it and your lives and your careers are going to have a tremendous impact on how this turns out, as this new world order is built.
So thank you for doing this. Thank you for giving me the privilege of being part of your team and coming out here today. I've had an interesting five days here in the Middle East. And this is my last stop after visiting five countries. We'll go back tomorrow.
Always, it's important to come out and see firsthand and listen carefully and closely to the men and women who are doing the job out here. And I very much appreciated this time out in your area. You get a little closer to what's going on and get connected better with what you're doing and how I can help you and how everybody in our enterprise can help you do your jobs better in every way we can.
Give my thanks to your families and my best regards to your families. I know how proud they are of each of you.
Now, I'd be glad to respond to questions if you've got some advice for the secretary of defense. I'm very open to that, and I welcome that. So we've got a few minutes, I think, before we take some pictures, and I'd be glad to respond to anything I can and anything that you want to talk about. Want to also acknowledge your commanding officer and all those who have responsibility of these important units out here for their leadership and what they're continuing to do for our country and our efforts.
So, general, chief, thank you each, as well as all the leaders out here in this operation.
So who wants to -- who wants to start? Anything you want to talk about. Yes?
Q: Mr. Secretary, thank you for taking my question. (Inaudible) . Recently, servicemen and women saw tuition assistance suspended and then restarted. My question is, what, if any, changes can we expect to see in fiscal year '14 to that program?
SEC. HAGEL: Tuition assistance is an important program for all the reasons you know. When I was in the Senate, I was a strong supporter -- I think all of Congress is. All of America understands the importance of it. We have reinstituted it, as you have noted, sergeant. We'll continue to make it a priority.
But in the scope of the budget realities that you all are familiar with, we are having to make some tough choices to comply with budget cuts that are significant. I wish we didn't have to do that, but we do.
So what I have to focus on, as all of our leaders, first, the readiness of the men and women who are out on the front lines and support you and your mission and what you're doing. That's number one, is to support you in your mission in every way we can. We won't cut that.
Then we've got to go from there. How then do we fairly distribute these cuts without cutting into our operations, without cutting into our maintenance? And we're balancing that now. Not easy. We'll get through it. But these are difficult -- difficult issues.
So tuition assistance, it's important. It's a priority. You all understand it. We do. But in the first scope of this, sergeant, when we made that initial decision based on those initial numbers, we had to assess what was highest priority. And I just gave you what the highest priority was. As important as tuition assistance is, will continue to be -- it was not at the same level of supporting our readiness of you all.
But, again, I say, not to minimize the importance of that program -- it is important, we will fund it, and we'll continue to fund it. Thank you.
Where are you from, sergeant?
Q: (Inaudible), sir.
SEC. HAGEL: Thank you.
Who else has a -- a question? Yes.
Q: (off mic)
SEC. HAGEL: How do I see the shift, did you say? I'm sorry. I didn't get the last part.
Q: Yes, sir. What do you see the Air Force doing -- particularly the Air Force, but the military as a whole -- to make that transition from this AOR to the Pacific?
SEC. HAGEL: Well, the larger context of your question was regarding our rebalancing of our focus with our assets around the world. As you noticed and noted in your comments, we are unwinding our -- our major combat presence in Afghanistan and we have unwound our presence in Iraq. And we have made the assessment -- and I think correctly -- that -- and, by the way, these assessments are constantly changing based on the world, based on dangers, based on assets, based on interest, based on allies. And so the world is not static; I don't have to remind any of you. It changes hour to hour, minute to minute.
So our job in the Department of Defense, a leader's job, President Obama's job, all of your jobs, is to protect our country and to assure our interest in the world, and security is the anchor to that. So that policy, as we rebalance our focus, has rebalanced more assets to the Asia Pacific, which I think is exactly right.
All our services, including the Air Force, will continue to have a very, very, very significant role in that. How can it be otherwise? We will -- we will shift in varying ways presence in operations, depending on what the threat is, depending on how we want to project power, and that is all part of a continual assessment.
So the Air Force in particular, the question you asked about, will continue to play an important role, if for no other reason than projection of power. And I think where we want to continue to go -- Secretary Gates talked about this, Secretary Panetta talked about it -- is a flexible, agile military.
The threats are shifted. Ten years ago, I don't think very many people in this room would have talked much about cyber warfare or -- or the cyber threat. Even five years ago, it was a different world. Obviously, non-state actors, Islamic fundamentalism, terrorists, the coordination of those terrorists, interests that go below the surface, these are not coming all or mainly from state threats, from nation-state threats. Most of these threats are coming from non-state actors.
And so that is shifting not only our balance of assets, but our -- our strategic interests and the strategies that protect those strategic interests and the tactics then that employ those -- those strategies. So our Air Force, our Navy, our Marines, our Army, Coast Guard, all remain -- will continue to remain vital parts of our security interests.
You may be spending more time in the Pacific. Not a bad assignment.
Did somebody else have one? Yes.
Q: Sir, thank you. (Inaudible). Quick question on the note of sequestration, with the 17 squadrons that are being temporarily stood down until the end of the fiscal year. What is your prediction on the possibility of an agreement being made prior to the end of the year to keep the squadrons flying? And if not, how do you view our CMR status up to the end of the fiscal year?
SEC. HAGEL: An agreement on what?
Q: The flying hour program to keep the squadrons flying, get them flying again, get the 17 units that were stood down.
SEC. HAGEL: Well, as I said, these strategies and our programs and our policies and where we think our needs are, and then the operations to fulfill those requirements, are in constant review. I opened up our Q&A here this morning and answered a question about tuition assistance by referencing the budget limitations.
Now, budget should never, ever hold hostage a nation's interests -- should never hold hostage a nation's security. But budgets are all part of what we live with, and so we have got to adjust and adapt to the reality of those budgets. And, yes, it will affect some of our missions. Yes, it will affect some of our strategies and how, in fact, we protect our interests and our strategic interest, in particular, and then how we adapt with our tactical operations.
So we'll continue to review and shift, but, again, I say, this is all anchored by the absolute requirement of having a ready force, an adaptable force, a flexible, agile force, and a committed force. And I said when I became secretary of defense -- I think every secretary of defense has said this, is committed to this, as all your leaders -- the one asset an institution has that's more valuable than anything else, its people. And you take care of your people. You have to take care of your people.
And we're committed to do that first, because it won't matter how many planes you have or ships you have and how sophisticated the equipment if the people aren't right, if the people are not committed, if they're not of quality. And our force is our highest priority.
Another question? Yes.
Q: Sir, (inaudible) deployed out of (inaudible), California. Speaking about strategic interests, sir, I was wondering if you could talk a little bit about the economic sanctions against Iran and what your assessment of their effectiveness is.
SEC. HAGEL: Well, I believe that our policy regarding Iran is the correct policy. We are employing all the tools that wise, great powers employ when dealing with issues and challenges and dangers. And so we are working the diplomatic track. As you noted, we're working the international sanctions -- economic sanctions track. On Iran in particular, those economic sanctions against Iran are the most effective, most international, most penetrating economic sanctions that I think have ever been employed against a country.
And we do know, by every measurement, every metric applied, that it is doing significant damage to Iran's economy. It is having an effect inside Iran. You use all the other dimensions, the threat, always, of the military option. You build an international consensus, which we have done, using the international economic sanctions. You build especially a consensus with your regional partners, which you're doing out here. And you take the entire universe of these capabilities and assets and you focus them.
The military option in these situations is always an option, but I believe -- I think the president -- I know the president believes this -- that should be the last option. And I don't know if all of these efforts that we're applying in dealing with Iran, one being international economic sanctions, will, in fact, change their attitude about what we think is their objective moving toward a nuclear weapon, possibility of delivering that weapon. I don't know if what we're doing will shift their thoughts or their approach.
But we have the time. We have the assets. We have the international community. We are working toward that end. So I think those sanctions have been effective. I think they'll continue to be effective. We can continue to do more, but it's important to remember, as I said, the international consensus in these kinds of dangerous efforts is very, very important. And we continue to build that international consensus.
GEORGE LITTLE: (off mic)
SEC. HAGEL: Okay, George. George Little, very famous man over here. You've all seen -- he's our assistant secretary for public affairs. He's the spokesman. He has everything just right all the time. And he's willing to stay for four or five hours and answer questions. Isn't that right, George? If you --
MR. LITTLE: (off mic)
SEC. HAGEL: Yeah. Guys, I am grateful personally as an American citizen for what you're doing. I'm proud as secretary of defense to be your leader. And I thank you and your families, especially, for the sacrifices you're making for our country and the efforts that we're all making to make a better world.
Now, if you all want to do some photos, I'd be very pleased if we wanted to get a picture. Thank you.
LETTER TO CONGRESS WARNS OF POSSIBLE SYRIAN REGIME USE OF CHEMICAL WEAPONS
FROM: U.S. DEPARTMENT OF DEFENSE
This morning, the White House delivered a letter to several members of Congress on the topic of chemical weapons use in Syria. The letter, which will be made available to you here shortly, states that the U.S. intelligence community assesses with some degree of varying confidence that the Syrian regime has used chemical weapons on a small scale in Syria, specifically the chemical agent sarin.
As I have said, the intelligence community has been assessing information for some time on this issue, and the decision to reach this conclusion was made in the past 24 hours, and I have been in contact with senior officials in Washington today and most recently the last couple of hours on this issue.
We cannot confirm the origin of these weapons, but we do believe that any use of chemical weapons in Syria would very likely have originated with the Assad regime. As the letter states, the President has made it clear that the use of chemical weapons or the transfer of such weapons to terrorist groups would be unacceptable.
The United States has an obligation to fully investigate – including with all key partners and allies, and through the United Nations – evidence of chemical weapons use in Syria.
Over the past week, I have traveled as you all know to five countries in the Middle East – all of whom have expressed concerns about the deteriorating situation in Syria. And you have asked me on several occasions about chemical weapons use.
As I've said, this is serious business – we need all the facts.
This morning, the White House delivered a letter to several members of Congress on the topic of chemical weapons use in Syria. The letter, which will be made available to you here shortly, states that the U.S. intelligence community assesses with some degree of varying confidence that the Syrian regime has used chemical weapons on a small scale in Syria, specifically the chemical agent sarin.
As I have said, the intelligence community has been assessing information for some time on this issue, and the decision to reach this conclusion was made in the past 24 hours, and I have been in contact with senior officials in Washington today and most recently the last couple of hours on this issue.
We cannot confirm the origin of these weapons, but we do believe that any use of chemical weapons in Syria would very likely have originated with the Assad regime. As the letter states, the President has made it clear that the use of chemical weapons or the transfer of such weapons to terrorist groups would be unacceptable.
The United States has an obligation to fully investigate – including with all key partners and allies, and through the United Nations – evidence of chemical weapons use in Syria.
Over the past week, I have traveled as you all know to five countries in the Middle East – all of whom have expressed concerns about the deteriorating situation in Syria. And you have asked me on several occasions about chemical weapons use.
As I've said, this is serious business – we need all the facts.
THE PITCHER PLANT ECOSYSTEM
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| Pitcher Plant. Dept of the Interior, National Park Service |
Earth Day: Big Ecosystem Changes Viewed Through the Lens of Tiny Carnivorous Plants
April 22, 2013
In one drop of water are found all the secrets of all the oceans.
---Kahlil Gibran
What do a pond or a lake and a carnivorous pitcher plant have in common?
The water-filled pool within a pitcher plant, it turns out, is a tiny ecosystem whose inner workings are similar to those of a full-scale water body.
Whether small carnivorous plant or huge lake, both are subject to the same ecological "tipping points," of concern on Earth Day--and every day, say scientists.
The findings are published in this week's issue of the journal Proceedings of the National Academy of Sciences.
In the paper, ecologists affiliated with the National Science Foundation (NSF) Harvard Forest Long-Term Ecological Research site in Massachusetts offer new insights about how such tipping points happen.
"Human societies, financial markets and ecosystems all may shift abruptly and unpredictably from one, often favored, state to another less desirable one," says Saran Twombly, program director in NSF's Division of Environmental Biology, which funded the research.
"These researchers have looked at the minute ecosystems that thrive in pitcher plant leaves to determine early warning signals and to find ways of predicting and possibly forestalling such 'tipping points.'"
Life in lakes and ponds of all sizes can be disrupted when too many nutrients--such as in fertilizers and pollution--overload the system.
When that happens, these aquatic ecosystems can cross "tipping points" and change drastically. Excess nutrients cause algae to bloom. Bacteria eating the algae use up oxygen in the water. The result is a murky green lake.
"The first step to preventing tipping points is understanding what causes them," says Aaron Ellison, an ecologist at Harvard Forest and co-author of the paper. "For that, you need an experiment where you can demonstrate cause-and-effect."
Ellison and other scientists demonstrated how to reliably trigger a tipping point.
They continually added a set amount of organic matter--comparable to decomposing algae in a lake--to a small aquatic ecosystem: the tiny confines of a pitcher plant, a carnivorous plant native to eastern North America.
Each pitcher-shaped leaf holds about a quarter of an ounce of rainwater. Inside is a complex, multi-level food web of fly larvae and bacteria.
"The pitcher plant is its own little ecosystem," says Jennie Sirota, a researcher at North Dakota State University and lead author of the paper.
Similar to lake ecosystems, oxygen levels inside the water of a pitcher plant are controlled by photosynthesis and the behavior of resident organisms--in this case, mostly bacteria.
Ellison says that conducting an experiment with bacteria is like fast-forwarding through a video.
"A bacterial generation is 20 minutes, maybe an hour," he says. "In contrast, fish in a lake have generation times of a year or more.
"We would need to study a lake for 100 years to get the same information we can get from a pitcher plant in less than a week."
The same mathematical models, Ellison and colleagues discovered, can be used to describe a pitcher plant or a lake ecosystem.
To approximate an overload of nutrients in pitcher-plant water, the team fed set amounts of ground-up wasps to the plants.
"That's equivalent to a 200-pound person eating one or two McDonald's quarter-pounders every day for four days," says Ellison.
In pitcher plants with enough added wasps, an ecosystem tipping point reliably occurred about 45 hours after the start of feeding.
The scientists now have a way of creating tipping points. Their next step will be to identify the early warning signs.
"Tipping points may be easy to prevent," says Ellison, "if we know what to look for."
Other authors of the paper are Benjamin Baiser of Harvard Forest and Nicholas Gotelli of the University of Vermont.
-NSF-
SECREATY HAGEL VISITS JORDAN
FROM: U.S. DEPARTMENT OF DEFENSE
Places Jordan Among Most Important Middle East Partners
By Cheryl Pellerin
American Forces Press Service
AMMAN, Jordan, April 23, 2013 - Defense Secretary Chuck Hagel met here today with Jordan's Lt. Gen. Prince Faisal bin Al Hussein and Gen. Mashal al-Zaben, chairman of the Joint Chiefs of Staff of the Jordanian armed forces, Pentagon Press Secretary George Little said in a statement.
The United States and Jordan -- which Hagel said is one of the most important U.S. partners in the region -- share concerns about the crisis in Syria and continue to consult closely on issues including chemical weapons and demands posed by the influx of Syrian refugees fleeing the violence, Little added.
During the meeting, Hagel reaffirmed the closeness of the U.S.-Jordan strategic relationship and reiterated the DOD commitment to working with the Jordanian armed forces to address common challenges, the press secretary said.
The leaders discussed Hagel's decision, announced April 17, to sustain U.S. military personnel in Jordan to foster even closer planning, improve joint readiness, and prepare for a range of scenarios, Little noted.
Hagel and Army Gen. Martin E. Dempsey, chairman of the Joint Chief of Staff, reported to the Senate Armed Services Committee that the secretary ordered the Army deployment to help Jordanian forces defend their border with Syria. The contingent will enhance the efforts of a small U.S. military team that has been working in Jordan since last year on planning related to chemical weapons and preventing a spillover of violence across Jordan's borders, Hagel told the Senate panel.
DOD personnel and interagency partners are helping Jordan, Turkey, Iraq and other Syrian neighbors counter the threat posed by Syria's chemical weapons, Hagel said during the hearing.
The secretary, Prince Faisal and Zaben agreed to continue to work closely together to support mutual objectives, develop capacity and provide military assistance as needed to the Jordanian armed forces, Little said.
Hagel commended Jordan on its decision to keep borders open to refugees fleeing the violence in Syria, the press secretary said, adding that Jordan now hosts nearly 500,000 Syrian refugees.
In addition to about $409 million in humanitarian assistance the United States has provided to those affected by the violence in Syria, Little said, DOD has provided more than $1.2 million in goods such as food, water, medical supplies and power generators through the Jordanian armed forces to help in the care and transport of refugees coming across the border.
DOD also has provided more than $70 million to Jordan this year to help secure its borders and prevent chemical-weapons transfer, Little said.
Hagel's trip to the Middle East, which began April 20 and will end April 26, also will take the secretary to Saudi Arabia, Egypt and the United Arab Emirates to discuss common threats and interests in the region.
Places Jordan Among Most Important Middle East Partners
By Cheryl Pellerin
American Forces Press Service
AMMAN, Jordan, April 23, 2013 - Defense Secretary Chuck Hagel met here today with Jordan's Lt. Gen. Prince Faisal bin Al Hussein and Gen. Mashal al-Zaben, chairman of the Joint Chiefs of Staff of the Jordanian armed forces, Pentagon Press Secretary George Little said in a statement.
The United States and Jordan -- which Hagel said is one of the most important U.S. partners in the region -- share concerns about the crisis in Syria and continue to consult closely on issues including chemical weapons and demands posed by the influx of Syrian refugees fleeing the violence, Little added.
During the meeting, Hagel reaffirmed the closeness of the U.S.-Jordan strategic relationship and reiterated the DOD commitment to working with the Jordanian armed forces to address common challenges, the press secretary said.
The leaders discussed Hagel's decision, announced April 17, to sustain U.S. military personnel in Jordan to foster even closer planning, improve joint readiness, and prepare for a range of scenarios, Little noted.
Hagel and Army Gen. Martin E. Dempsey, chairman of the Joint Chief of Staff, reported to the Senate Armed Services Committee that the secretary ordered the Army deployment to help Jordanian forces defend their border with Syria. The contingent will enhance the efforts of a small U.S. military team that has been working in Jordan since last year on planning related to chemical weapons and preventing a spillover of violence across Jordan's borders, Hagel told the Senate panel.
DOD personnel and interagency partners are helping Jordan, Turkey, Iraq and other Syrian neighbors counter the threat posed by Syria's chemical weapons, Hagel said during the hearing.
The secretary, Prince Faisal and Zaben agreed to continue to work closely together to support mutual objectives, develop capacity and provide military assistance as needed to the Jordanian armed forces, Little said.
Hagel commended Jordan on its decision to keep borders open to refugees fleeing the violence in Syria, the press secretary said, adding that Jordan now hosts nearly 500,000 Syrian refugees.
In addition to about $409 million in humanitarian assistance the United States has provided to those affected by the violence in Syria, Little said, DOD has provided more than $1.2 million in goods such as food, water, medical supplies and power generators through the Jordanian armed forces to help in the care and transport of refugees coming across the border.
DOD also has provided more than $70 million to Jordan this year to help secure its borders and prevent chemical-weapons transfer, Little said.
Hagel's trip to the Middle East, which began April 20 and will end April 26, also will take the secretary to Saudi Arabia, Egypt and the United Arab Emirates to discuss common threats and interests in the region.
HHS HAS APP FOR MANAGEMENT OF RISK FOR HEART DISEASE
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| Photo: Mobile App. Credit: HHS |
From the U.S. Department of Health and Human Services, I’m Nicholas Garlow with HHS HealthBeat.
Your health is going digital. Health applications on the go are becoming more available. The HHS initiative, Million Hearts, recently challenged developers to create an app that helps people manage their heart health.
Dr. Simon Lin and his team at the Marshfield Clinic Research Foundation did just that.
"Just as we need motivation to exercise and to eat healthy food, we also need those easy-to-use tools to track our health goals."
The Heart Health Mobile app helps you manage your risk of heart disease.
HHS has also developed numerous apps around heart health, weight, women’s health, and more. You can find the full list of HHS apps on hhs.gov/digitalstrategy.
HHS HealthBeat is a production of the U.S. Department of Health and Human Services. I’m Nicholas Garlow.
Last revised: April 21, 2013
TESTIMONY BEFORE HOUSE FOREIGN AFFAIRS COMMITTEE ON EXPORT CONTROL REFORM
FROM: U.S. DEPARTMENT OF STATE
Export Control Reform: The Agenda Ahead
Testimony
Thomas Kelly
Acting Assistant Secretary, Bureau of Political-Military Affairs
Statement Before the House Foreign Affairs Committee Hearing on Export Control Reform
Washington, DC
April 24, 2013
I thank the Chairman for his introduction, and would ask that my written remarks be entered into the record.
Chairman Royce, Congressman Sherman, Committee Members: it has been two years since the Committee last met to hear testimony on the President’s Export Control Reform Initiative. A lot of work has been done in the intervening period. I would like to start by thanking thw Committee on behalf of the State Department for its bipartisan support throughout the process.
As the pace of technological advance accelerates, and as technological capability spreads around the world, the need to update our Export Controls is increasingly urgent. We are no longer in an era in which a handful of countries hold the keys to the most sensitive technologies, as was the case during the Cold War. Today, a whole range of nations have advanced technological capability.
At the same time, because of the diffusion of technology, many U.S. companies must collaborate with foreign partners to develop, produce and sustain leading-edge military hardware and technology. Their survival depends on it.
But because our current export controls are confusing, time-consuming, and – many would say-- overreaching, our allies increasingly seek to ‘design out’ US parts and services, thus avoiding our export controls and the end-use monitoring that comes with them in favor of indigenous design. This threatens the viability of our defense industrial base, especially in these austere times.
Our current system has another problem. It can prevent our allies in theatre from getting the equipment and technology they need to fight effectively alongside our troops in the field.
This system has its basis in the 1960s, and has not undergone significant update since the early 1990s. It is cumbersome, complex and incorrectly controls too many items as though they were "crown jewel" technologies.
What that has meant is that an inordinate amount of agencies’ resources – both in terms of licensing and compliance activities – has been expended on nuts and bolts as well as our REAL "crown jewel" technologies.
In November 2009, President Obama directed a White House task force to identify how to modernize our export control system so that it will address the current threats we face, as well as account for the technology and economic landscape of the 21st century.
His direction was grounded in national security, with the goal of putting up ‘higher fences’ around the items that deserve the greatest protection, while permitting items of lesser sensitivity to be exported more readily when appropriate.
To address the problems the task force identified, they recommended reforms in four key areas: licensing policies and procedures; control lists; information technology; and export enforcement.
The President accepted the recommendations, and since early 2010, agencies have been working hard to implement them.
Much of agencies’ efforts have centered on revising the U.S. Munitions List and the Commerce Control List. This reform will draw a "bright line" between the two lists using common terms and control parameters. This will help our exporters determine far more easily which list their products are on. The reform will ensure that those items of greatest concern to us from a national security and foreign policy perspective will remain on the USML, and thus be subject to the most stringent licensing requirements, while items of less sensitivity will be moved to the CCL.
I want to emphasize a key point: items moving to the CCL are going to remain controlled. They are not being "decontrolled", but in specific circumstances, they will be eligible for export under Commerce’s more flexible licensing mechanisms.
I am confident that the revised lists will permit State to continue to perform its national security and foreign policy mandates in export licensing.
I will also note that we are making tremendous progress in the effort to rewrite the categories. We have published twelve rebuilt USML categories in the Federal Register for public comment. The proposed rules for the seven remaining categories have been drafted and are either undergoing or awaiting interagency review so that we can then publish them for public comment.
On April 16, the Departments of State and Commerce published companion rules that implement the revised USML Categories VIII (Aircraft) and XIX (Engines). This is the first pair in a series of final rules that put in place the rebuilt export control lists. Our goal is to publish the revised USML in its entirety on a rolling basis throughout this year.
In the last phase of our reform effort, we will need legislation to bring the initiative to its logical conclusion by creating a single licensing agency. The Administration has not yet determined when to approach this effort, but we will fully engage our oversight Committees and know that we can count on your support when we do.
On that note, one final point I want to make is that this has not only been an interagency process, but a cross-government process. Over the course of the last three years, we have had the opportunity to work closely with this Committee, and with many others across the Congress, on both the broader strategic questions of national security, and the finer technical details of our proposals. Our work together shows what we can achieve together. I am grateful for your bipartisan support for this initiative and look forward to continuing to work closely with you on the remainder of the reform effort.
With that, I want to thank you for inviting me to testify. I now would like to turn the floor over to Commerce Assistant Secretary Kevin Wolf.
Export Control Reform: The Agenda Ahead
Testimony
Thomas Kelly
Acting Assistant Secretary, Bureau of Political-Military Affairs
Statement Before the House Foreign Affairs Committee Hearing on Export Control Reform
Washington, DC
April 24, 2013
I thank the Chairman for his introduction, and would ask that my written remarks be entered into the record.
Chairman Royce, Congressman Sherman, Committee Members: it has been two years since the Committee last met to hear testimony on the President’s Export Control Reform Initiative. A lot of work has been done in the intervening period. I would like to start by thanking thw Committee on behalf of the State Department for its bipartisan support throughout the process.
As the pace of technological advance accelerates, and as technological capability spreads around the world, the need to update our Export Controls is increasingly urgent. We are no longer in an era in which a handful of countries hold the keys to the most sensitive technologies, as was the case during the Cold War. Today, a whole range of nations have advanced technological capability.
At the same time, because of the diffusion of technology, many U.S. companies must collaborate with foreign partners to develop, produce and sustain leading-edge military hardware and technology. Their survival depends on it.
But because our current export controls are confusing, time-consuming, and – many would say-- overreaching, our allies increasingly seek to ‘design out’ US parts and services, thus avoiding our export controls and the end-use monitoring that comes with them in favor of indigenous design. This threatens the viability of our defense industrial base, especially in these austere times.
Our current system has another problem. It can prevent our allies in theatre from getting the equipment and technology they need to fight effectively alongside our troops in the field.
This system has its basis in the 1960s, and has not undergone significant update since the early 1990s. It is cumbersome, complex and incorrectly controls too many items as though they were "crown jewel" technologies.
What that has meant is that an inordinate amount of agencies’ resources – both in terms of licensing and compliance activities – has been expended on nuts and bolts as well as our REAL "crown jewel" technologies.
In November 2009, President Obama directed a White House task force to identify how to modernize our export control system so that it will address the current threats we face, as well as account for the technology and economic landscape of the 21st century.
His direction was grounded in national security, with the goal of putting up ‘higher fences’ around the items that deserve the greatest protection, while permitting items of lesser sensitivity to be exported more readily when appropriate.
To address the problems the task force identified, they recommended reforms in four key areas: licensing policies and procedures; control lists; information technology; and export enforcement.
The President accepted the recommendations, and since early 2010, agencies have been working hard to implement them.
Much of agencies’ efforts have centered on revising the U.S. Munitions List and the Commerce Control List. This reform will draw a "bright line" between the two lists using common terms and control parameters. This will help our exporters determine far more easily which list their products are on. The reform will ensure that those items of greatest concern to us from a national security and foreign policy perspective will remain on the USML, and thus be subject to the most stringent licensing requirements, while items of less sensitivity will be moved to the CCL.
I want to emphasize a key point: items moving to the CCL are going to remain controlled. They are not being "decontrolled", but in specific circumstances, they will be eligible for export under Commerce’s more flexible licensing mechanisms.
I am confident that the revised lists will permit State to continue to perform its national security and foreign policy mandates in export licensing.
I will also note that we are making tremendous progress in the effort to rewrite the categories. We have published twelve rebuilt USML categories in the Federal Register for public comment. The proposed rules for the seven remaining categories have been drafted and are either undergoing or awaiting interagency review so that we can then publish them for public comment.
On April 16, the Departments of State and Commerce published companion rules that implement the revised USML Categories VIII (Aircraft) and XIX (Engines). This is the first pair in a series of final rules that put in place the rebuilt export control lists. Our goal is to publish the revised USML in its entirety on a rolling basis throughout this year.
In the last phase of our reform effort, we will need legislation to bring the initiative to its logical conclusion by creating a single licensing agency. The Administration has not yet determined when to approach this effort, but we will fully engage our oversight Committees and know that we can count on your support when we do.
On that note, one final point I want to make is that this has not only been an interagency process, but a cross-government process. Over the course of the last three years, we have had the opportunity to work closely with this Committee, and with many others across the Congress, on both the broader strategic questions of national security, and the finer technical details of our proposals. Our work together shows what we can achieve together. I am grateful for your bipartisan support for this initiative and look forward to continuing to work closely with you on the remainder of the reform effort.
With that, I want to thank you for inviting me to testify. I now would like to turn the floor over to Commerce Assistant Secretary Kevin Wolf.
RALPH LAUREN CORPORATION SETTLES FCPA ALLEGTIONS WITH JUSTICE DEPARTMENT
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, April 22, 2013
Ralph Lauren Corporation Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $882,000 Monetary Penalty
Ralph Lauren Corporation (RLC), a New York based apparel company, has agreed to pay an $882,000 penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in Argentina to obtain improper customs clearance of merchandise, announced Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the agreement, the manager of RLC’s subsidiary in Argentina bribed customs officials in Argentina over the span of five years to improperly obtain paperwork necessary for goods to clear customs; permit clearance of items without the necessary paperwork and/or the clearance of prohibited items; and on occasion, to avoid inspection entirely. RLC’s employee disguised the payments by funneling them through a customs clearance agency, which created fake invoices to justify the improper payments. During these five years, RLC did not have an anti-corruption program and did not provide any anti-corruption training or oversight with respect to its subsidiary in Argentina.
In addition to the monetary penalty, RLC agreed to cooperate with the Department of Justice, to report periodically to the department concerning RLC’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations. If RLC abides by the terms of the agreement, the Department will not prosecute RLC in connection with the conduct.
The agreement acknowledges RLC’s extensive, thorough, and timely cooperation, including self-disclosure of the misconduct, voluntarily making employees available for interviews, making voluntary document disclosures, conducting a worldwide risk assessment, and making multiple presentations to the Department on the status and findings of the internal investigation and the risk assessment. In addition, RLC has engaged in early and extensive remediation, including conducting extensive FCPA training for employees worldwide, enhancing the company’s existing FCPA policy, implementing an enhanced gift policy and other enhanced compliance, control and anti-corruption policies and procedures, enhancing its due diligence protocol for third-party agents, terminating culpable employees and a third-party agent, instituting a whistleblower hotline, and hiring a designated corporate compliance attorney.
In a related matter, the U.S. Securities and Exchange Commission today announced a non-prosecution agreement with RLC , in which RLC agreed to pay $$734,846 in disgorgement and prejudgment interest.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Sarah Coyne, Chief of the Business and Securities Fraud Section of the Eastern District of New York. The case was investigated by the FBI’s New York Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
Monday, April 22, 2013
Ralph Lauren Corporation Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $882,000 Monetary Penalty
Ralph Lauren Corporation (RLC), a New York based apparel company, has agreed to pay an $882,000 penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in Argentina to obtain improper customs clearance of merchandise, announced Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the agreement, the manager of RLC’s subsidiary in Argentina bribed customs officials in Argentina over the span of five years to improperly obtain paperwork necessary for goods to clear customs; permit clearance of items without the necessary paperwork and/or the clearance of prohibited items; and on occasion, to avoid inspection entirely. RLC’s employee disguised the payments by funneling them through a customs clearance agency, which created fake invoices to justify the improper payments. During these five years, RLC did not have an anti-corruption program and did not provide any anti-corruption training or oversight with respect to its subsidiary in Argentina.
In addition to the monetary penalty, RLC agreed to cooperate with the Department of Justice, to report periodically to the department concerning RLC’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations. If RLC abides by the terms of the agreement, the Department will not prosecute RLC in connection with the conduct.
The agreement acknowledges RLC’s extensive, thorough, and timely cooperation, including self-disclosure of the misconduct, voluntarily making employees available for interviews, making voluntary document disclosures, conducting a worldwide risk assessment, and making multiple presentations to the Department on the status and findings of the internal investigation and the risk assessment. In addition, RLC has engaged in early and extensive remediation, including conducting extensive FCPA training for employees worldwide, enhancing the company’s existing FCPA policy, implementing an enhanced gift policy and other enhanced compliance, control and anti-corruption policies and procedures, enhancing its due diligence protocol for third-party agents, terminating culpable employees and a third-party agent, instituting a whistleblower hotline, and hiring a designated corporate compliance attorney.
In a related matter, the U.S. Securities and Exchange Commission today announced a non-prosecution agreement with RLC , in which RLC agreed to pay $$734,846 in disgorgement and prejudgment interest.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Sarah Coyne, Chief of the Business and Securities Fraud Section of the Eastern District of New York. The case was investigated by the FBI’s New York Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
DEFENSE SECRETARY MEETS WITH SAUDI DEPUTY DEFENSE MINISTER
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| Defense Secretary Chuck Hagel meets with Saudi Arabia's Prince Fahd bin Abdullah, the country's deputy defense minister, for a welcoming tea ceremony in Riyadh, Saudi Arabia, April 23, 2013. Hagel is on a six-day trip to the Middle East, where he is visiting counterparts in Israel, Jordan, Saudi Arabia, Egypt and the United Arab Emirates. DOD photo by Erin A. Kirk-Cuomo |
Hagel: Defense Partnership Anchors U.S.-Saudi Relationship
By Cheryl Pellerin
American Forces Press Service
RIYADH, Saudi Arabia, April 23, 2013 - On his inaugural trip to the Middle East since taking office, Defense Secretary Chuck Hagel met here today with Saudi Crown Prince and Defense Minister Salman bin Abdulaziz Al Saud, Pentagon Press Secretary George Little said in a statement.
During their talks, Hagel and his Saudi counterpart reiterated the longstanding, steadfast relationship between the United States and Saudi Arabia, and emphasized the strong defense partnership that anchors the two nations, Little added.
They also discussed the release of standoff weapons to Saudi Arabia that will provide strategic precision defensive capabilities to the Saudi F-15 fleet, Little said. Such smart weapons can navigate to their targets and are more precise and can be fired at further distances.
"Both agreed the release reflected the close bilateral partnership and would enable long-term cooperation in the pursuit of common security policy aims of a peaceful and stable region," Little said. The two defense leaders also consulted on regional issues, including the need for Iran to abide to international commitments on its nuclear program, the situation in Syria, and the political transition in Yemen, he added.
Hagel's trip to the Middle East, which began April 20 and will end April 26, began in Israel and Jordan and tomorrow will take the secretary to Egypt and the United Arab Emirates to discuss common threats and interests in the region.
Wednesday, April 24, 2013
ISAF NEWS FROM AFGHANISTAN
U.S. Army 1st Lt. Robert Wolfe scans for security threats from a rooftop during a meeting with the Farah provincial council at the governor's compound in Farah City, Afghanistan, April 18, 2013. Wolfe, a platoon leader, is assigned to Provincial Reconstruction Team Farah. U.S. Navy photo by Chief Petty Officer Josh Ives FROM: U.S. DEPARTMENT OF DEFENSE
Combined Security Force Kills Insurgents in Helmand Province
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, April 24, 2013 - A combined Afghan and coalition security force killed two insurgents during a search for a Taliban leader in the Nad-e Ali district of Afghanistan's Helmand province yesterday, military officials reported.
The leader is believed to be responsible for purchasing and distributing improvised explosive device components to other Taliban members. He also has participated in attacks against Afghan and coalition forces and provides intelligence to senior Taliban leaders in the province, officials said.
In other Afghanistan operations yesterday:
-- A combined force in Helmand's Nahr-e Saraj district killed an insurgent during a search for a Taliban leader who is believed to oversee IED operations in the district. He also has participated in assassinations against Afghan national security force members and provided intelligence to senior Taliban leaders.
-- Afghan Provincial Response Company Zabul, enabled by coalition forces, detained several insurgents and seized and destroyed 132 pounds of ammonium nitrate aluminum powder in Zabul province's Shinkay and Qalat districts. Insurgents use the powder in making IEDs.
U.S.S HOON ARRIVES IN VEITNAM AND USS JOHN C. STENNIS RETURNS TO PEARL HARBOR-HICKAM BASE
FROM: U.S. NAVY
Sailors aboard the guided-missile destroyer USS Chung Hoon (DDG 93) shift colors after arriving in Da Nang, Vietnam, for a naval engagement activity. The engagement provides opportunities for U.S. and Vietnamese naval professionals to share best practices and exchange maritime skills in humanitarian assistance and disaster relief, medical training, fire fighting and damage control, search and rescue, diving and salvage, sports and community service projects. U.S. Navy photo by Mass Communication Specialist 1st Class Jay C. Pugh (Released) 130421-N-YU572-057
The aircraft carrier USS John C. Stennis (CVN 74) enters Joint Base Pearl Harbor-Hickam as friends and family members of Sailors greet them from shore. The John C. Stennis Carrier Strike Group is returning from an eight-month deployment conducting operations in the U.S. 5th and 7th Fleet areas of responsibility. U.S. Navy Photograph by Mass Communication Specialist 2nd Class Daniel Barker (Released) 130421-N-RI884-070.
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