2012 MINISTERIAL COUNCIL MEETING OF OECD

Photo Credit:  Wikimedia.  
FROM:  U.S. DEPARTMENT OF STATE
2012 OECD Ministerial
Fact Sheet
Bureau of Economic and Business Affairs
May 25, 2012
The 2012 Ministerial Council Meeting of the Organization for Economic Cooperation and Development (OECD) built on the momentum of last year's 50th Anniversary Ministerial, which was chaired by the United States. Implementing a 21st-century vision for the OECD in cooperation with other member nations and the Secretary-General, the United States highlights the many substantial accomplishments, including:

U.S. Grant Supports Open Government in the Middle East North Africa Region – Delivering on the new Development Strategy and the Deauville Partnership, the United States announced a $1.5 million grant to the OECD to support the governments of Jordan, Libya, Morocco, and Tunisia as they design and implement, together with their citizens and civil society organizations, policies that increase government transparency and accountability. The implementation of these policies will assist Libya, Morocco and Tunisia as they make the reforms necessary to join the Open Government Partnership and OGP member Jordan with its country action plan.

Development Strategy Focuses Whole of OECD on Development – The Development Strategy delivers on the Development Framework agreed at the U.S.-chaired Ministerial to leverage OECD’s expertise to help partner countries improve governance and grow their economies.

Gender Initiative Aims to Fix "Leaky Pipeline" – The OECD Gender Initiative, launched and funded by the United States, explains the paradox that although more girls than ever are graduating and getting a job, we still see little change in top management or in ownership of assets. The OECD report and a complementary business report issued in response to a U.S. request document this "leaky pipeline" and offer tools to repair it.

Russia Invited to Join the Nuclear Energy Agency – Russia was invited to join the Nuclear Energy Agency. This follows on the heels of Russia becoming a Party to the OECD Anti-Bribery Convention in April 2012 and is a milestone in Russia’s OECD accession effort.

Competitive Neutrality – Ministers welcomed OECD work on competitive neutrality. The OECD was asked to expand this work, in cooperation with Russia and Key Partners, and to engage in a dialogue on policies by home and recipient countries related to state-controlled enterprises’ international trade and investment, to promote a level global playing field, to fight protectionist practices and support growth and development.

Skills Strategy Focuses on Job Growth – The OECD released its Skills Strategy highlighting the importance of spending on education and skills as an investment in the future. The Strategy includes tailored recommendations for individual countries.

Tunisia and Morocco Move Closer to OECD – Tunisia and Morocco signed on to the Declaration on Propriety, Integrity and Transparency and the Declaration of Green Growth. Tunisia also signed on to the Declaration on International Investment and Multinational Enterprises, deposited Tunisia’s intention to become a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and handed over two documents concerning the adherence of Tunisia to the Development Centre and the Global Forum on Transparency and Exchange of Information for Tax Purposes.

New Approaches to Economic Challenges – OECD members launched New Approaches to Economic Challenges charging the OECD to learn from the crisis and as appropriate update and upgrade its analytical framework, as well as develop a new policy agenda for inclusive growth.

International Collaborative Initiative on Trade and Employment Fights Protectionism– ICITE findings suggest strongly that protectionist measures will not protect or preserve jobs. ICITE confirms that liberalization done right results in job creation.

Boost to OECD Green Growth Work –Ministers sent a strong signal to the Rio+20 Conference by endorsing the Policy Statement from the OECD Environment Policy Committee Ministerial Meeting on 29-30 March 2012 to the Rio+20 Conference and the OECD DAC Policy Statement for the Rio+20 Conference.

About the U.S. Mission to the OECD 
The United States is a member of the Organization for Economic Cooperation and Development, an international organization composed of 34 democratic countries with market-based economies. Through its cross-country economic research, “soft law,” and peer reviews, the OECD provides the United States an opportunity for engaging with other countries on economic policy.

U.S. DEPARTMENT OF LABOR TO GIVE OUT OVER $20 MILLION IN GRANTS TO PUT FORMER INMATES BACK TO WORK

Photo Credit:  Wikimedia.
FROM:  U.S. DEPARTMENT OF LABOR
US Labor Department announces $20.5 million in grants to support, help ensure success of formerly incarcerated adults returning to work in their communities

WASHINGTON — The U.S. Department of Labor today announced grants totaling $20,518,598 to 18 nonprofit organizations across the country to fund employment-related services for formerly incarcerated adults who are returning to high-poverty, high-crime communities. These grants represent the fifth round of funding under the department's Reintegration of Ex-Offenders-Adult program, through which more than $98 million has been awarded to date.

"A strong support network is the key for formerly incarcerated individuals to successfully transition back to their communities," said Secretary of Labor Hilda L. Solis. "The federal grants announced today will help to establish this network, while also providing job training to ensure long-term stability and success."

Grantees will use the funds to provide occupational training that leads to credentials in high-demand industries; mentoring; and assistance in connecting formerly incarcerated adults with supportive services such as housing, substance abuse programs and mental health treatment.

In 2010, nearly 709,000 people were released from state and federal prisons, an increase of almost 20 percent from 2002. Research indicates that, without assistance to make a successful transition, the majority of former offenders return to criminal activity. This program aims to break that cycle.

U.S. SECRETARY OF STATE'S STATEMENT ON EGYPTIAN PRESIDENTIAL ELECTION

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FROM:  U.S. STATE DEPARTMENT
Egyptian Presidential Election
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
May 24, 2012

The Egyptian people concluded a historic two days of voting in the first round of their presidential election, marking another important milestone in their transition to democracy. We look forward to working with Egypt's democratically elected government. We will continue to stand with the Egyptian people as they work to seize the promise of last year's uprising and build a democracy that reflects their values and traditions, respects universal human rights, and meets their aspirations for dignity and a better life.

SECRETARY OF STATE CLINTON'S REMARKS ON THE 2011 HUMAN RIGHTS REPORT

FROM:  U.S. DEPARTMENT OF STATE
Release of the 2011 Human Rights Report
Remarks Hillary Rodham Clinton
Secretary of State Washington, DC
May 24, 2012
Good morning. Good morning, everyone. I’m very pleased to be joined here today by Assistant Secretary Posner to release our 2011 Country Reports on Human Rights Practices. These reports, which the United States Government has published for nearly four decades, make clear to governments around the world: We are watching and we are holding you accountable. And they make clear to citizens and activists everywhere: You are not alone. We are standing with you.

Mike and his team and the staff at our embassies and consulates around the world have worked tirelessly to produce these reports. And I want to thank each and every person who has contributed to them.

Now, as you know, this has been an especially tumultuous and momentous year for everyone involved in the cause of human rights. Many of the events that have dominated recent headlines from the revolutions in the Middle East to reforms in Burma began with human rights, with the clear call of men and women demanding their universal rights.

Today in Egypt, we are seeing in real time that those demands are making a difference as Egyptians are going to the polls to determine for the first time in their history who their leaders will be. Whatever the outcome of the election, the Egyptian people will keep striving to achieve their aspirations. And as they do, we will continue to support them.

We will support people everywhere who seek the same. Men and women who want to speak, worship, associate, love the way they choose – we will defend their rights; not just on the day we issue these reports, but every day.

As Secretary, I have worked with my superb team on advancing human rights in a 21st century landscape, focusing on new frontiers even as we stand up against age-old abuses. Where women have been and continue to be marginalized, we’re helping them become full partners in their governments and economies. Where LGBT people are mistreated and discriminated against, we’re working to bring them into full participation in their societies. We’re expanding access to technology and defending internet freedom because people deserve the same rights online as off. And we know that in the 21st century human rights are not only a question of civil and political liberties, it’s about the fundamental question of whether people everywhere have the chance to make the most of their God-given potential.

So we are supporting efforts around the world to give people a voice in their societies, a stake in their economies, and to support them as they determine for themselves the future of their own lives and the contributions they can make to the future of their countries. We think this is the way, together, we can make human rights a human reality.

Now as these reports document, there is a lot of work that remains to be done. In too many places, governments continue to stifle their own people’s aspirations. And in some places like Syria, it is not just an assault on freedom of expression or freedom of association, but an assault on the very lives of citizens. The Assad regime’s brutality against its own people must and will end, because Syrians know they deserve a better future.

These reports are more than a report card; they are a tool for lawmakers and scholars, for civil society leaders and activists. We also think they are a tool for government leaders. It’s always been bewildering to me that so many government leaders don’t want to make the most of the human potential of their own people.

And so I don’t expect this to be reading material everywhere, but I do hope somewhere in the corner of my mind that maybe a leader will pick it up and say: How do we compare with others, and what can we do today, tomorrow, and next year that will maximize the potential of more of our citizens?

This year we’ve made the reports easier to read online, easier to track trends across a region, easier to follow the progress of a particular group, easier to find out which governments are or are not living up to their commitments.

Now, every year that we issue this, we take stock of ourselves. We say: What more can we do? Where have we succeeded or are succeeding? Where are we falling short? And we know we have to recommit to the work of advancing universal rights, building the partnerships that will move us forward, helping every man, woman, and child live up to their God-given potential. And we know we have to be able to speak out and speak up for those unable to use their own voices.

But this is at the core of who we are. This is central to what we believe. And this is the work that will continue administration after administration, secretary after secretary, because of its centrality to our foreign policy and national security.

Now I’d like to turn things over to Assistant Secretary for Democracy, Human Right, and Labor Mike Posner, who will speak further about some of the specific findings in this year’s reports. Thank you all very much. Thanks, Mike.

USS MIAMI SUBMARINE FIRE

FROM:  U.S. NAVY
120315-N-TT535-014 KITTERY, Maine (March 15, 2012) The Los Angeles-class attack submarine USS Miami (SSN 755) enters dry dock to begin an engineered overhaul at Portsmouth Naval Shipyard. (U.S. Navy photo by Jim Cleveland/Released) 

USS Miami Crew, Portsmouth Naval Shipyard Combat Fire Aboard Submarine
By Submarine Group Two
GROTON, Conn. (NNS) -- Statement from Rear Admiral Rick Breckenridge, Commander, of Submarine Group Two in Groton, Connecticut:

"Late yesterday afternoon, USS MIAMI experienced a fire in the submarine's forward compartment.

"Portsmouth Naval Shipyard Fire Department and Ship's force, along with mutual assistance from several other area fire departments, immediately responded and successfully extinguished the fire on USS MIAMI. I repeat, the fire is out.

"The fire and subsequent damage was limited to the forward compartment spaces only which includes crew living and command and control spaces. The nuclear propulsion spaces were physically isolated from the Forward Compartment early during initial response.

"The ship's reactor has been shut down for over 2 months and remained in a safe and stable condition throughout the event. The propulsion spaces remained habitable and were continuously manned through the night.

"There were no weapons on board in the torpedo room.
The fire spread to spaces within the submarine that were difficult to access. The heat and smoke contained in these confined spaces made it challenging for fire-fighters to combat the blaze.

"I want to emphasize that the heroic actions of the firefighting teams averted what could have been a much more severe situation. As a result of their quick and effective response, the fire was contained and brought under control.

"We greatly appreciate the strong support received from our state and local partners who assisted us throughout this event.

"All of USS MIAMI's crew and the personnel supporting work and recovery efforts on the submarine are accounted for.

"Seven people were injured during the fire-fighting response. However, their injuries were minor in nature. The injured personnel included three Portsmouth Naval Shipyard fire-fighters; two ships force crew members; and two civilian fire-fighters providing support. These personnel were either treated on-scene or transported to a local medical facility for further treatment and all have been released. So all injured personnel have been released and are in good shape. There were no casualties in this fire.

"Again, the response of the shipyard and the community fire-fighters has been exceptional. Their efforts clearly minimized the severity of the event. They immediately took actions to stabilize the situation, protect the public, and limit the impact to the environment.

"So we are now moving forward with recovery actions.
The shipyard remains open for normal business and the workforce will report to work as scheduled.

A full investigation has begun to determine the cause of the fire. We will continue to provide updates later today as more information becomes available.
For now I need to get back to my responsibilities in the command center."

CFTC CHARGES CHICAGO-BASED TRADER WITH FRAUD

Photo:  Chicago Board Of Trade Granite Lady.  Credit:  Wikimedia.
FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION
CFTC Charges Chicago-based Trader Bradley Schiller with $7.8 Million Commodity Fraud
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today filed a complaint in the U.S. District Court for the Northern District of Illinois, chargingBradley Scott Schiller of Chicago, Ill., with solicitation fraud, misappropriating investors’ funds, and issuing false statements in connection with soliciting at least $7.8 million from at least six investors to trade commodity futures contracts in managed accounts.

Specifically, the CFTC complaint alleges that since at least January 2008 to at least February 2012, in soliciting investors and throughout the course of the investment scheme, Schiller lied about his success as a trader and used altered account statements to bolster his claims. His actual trading in the accounts, however, resulted in net trading losses, and, when his investors demanded the return of their funds, Schiller put them off until he could solicit funds from new investors. Schiller then used much of the funds he obtained from the new investors to pay back his old investors.

However, according to the complaint, of the at least $7.8 million Schiller received since January 2008, he deposited only approximately $3.7 million of those funds into trading accounts, lost approximately $1.6 million in trading, and withdrew over $2.1 million from the trading accounts, leaving near zero balances in the accounts. Schiller misappropriated investor funds to support “a lavish lifestyle,” purchasing expensive automobiles, a pricy, high-rise condominium, and paying personal expenses, according to the complaint. He also allegedly used at least $3.5 million of investor funds to repay two of his early investors and still owes four of his investors at least $4.35 million.

In its continuing litigation against the defendant, the CFTC seeks restitution to defrauded investors, disgorgement of ill-gotten gains, a civil monetary penalty, trading and registration bans, and permanent injunctions against further violations of federal commodities laws.

CFTC Division of Enforcement staff members responsible for this case are Jennifer Diamond, Judith McCorkle, Joseph Konizeski, Scott Williamson, Rosemary Hollinger, and Richard B. Wagner.

EXPORT-IMPORT BANK SAYS NEW POLICY WILL INCREASE AVIATION-INDUSTRY EXPORTS

Photo:  Cargo Ship.  Credit:  Wikimedia. 
FROM:  EXPORT-IMPORT BANK 
Ex-Im Bank Announces New Policy to Increase
U.S. Aviation-Industry Exports
WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) today announced a new policy to increase U.S. aviation-industry exports. Ex-Im will now finance transactions of U.S.-produced goods and services for aftermarket (post-manufacturing) use on foreign-manufactured aircraft.

The new policy will expand Ex-Im financing to benefit suppliers of many different products and services, including escape slides, flight simulators, entertainment systems and maintenance services.
Ex-Im Bank also may now consider support for exports by a U.S. small business to a foreign aircraft manufacturer.

Ex-Im policy will continue to prohibit the Bank from financing non-small-business sales of capital goods, services and major component sales to large-foreign-aircraft manufacturers.

“Upon careful consideration and review, we have determined that it is in the best interest of U.S. exporters, and small businesses in particular, for Ex-Im Bank to be able to finance aftermarket sales to airlines to outfit or service their foreign aircraft,” said Fred P. Hochberg, chairman and president of the Ex-Im Bank. “Airlines need to purchase parts and services for their aircraft, and we want them to buy American. This new policy will strengthen our support for the U.S. aviation industry, particularly for small businesses seeking to grow through exporting.”

Chairman Hochberg added that the Bank will continue its strong support for U.S aircraft export sales to meet tough global competition.

In fiscal year 2011, Ex-Im Bank authorized more than $12.6 billion in financing to support the export of U.S.-made aircraft of all types, including $10.8 billion in support of commercial aircraft sales to a total of 21 countries.

About Ex-Im Bank:

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

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

RECENT ACTIONS IN AFGHANISTAN

Photo Credit:  U.S. Department of Defense  
FROM:  AMERICAN FORCES PRESS SERVICE
Afghan-led Security Force Captures Insurgent Facilitator
Compiled from International Security Assistance Force Joint Command News Releases

WASHINGTON, May 24, 2012 - An Afghan-led, coalition-supported security force detained an Islamic Movement of Uzbekistan facilitator and several other insurgents during an operation in the Argo district of Afghanistan's Badakhshan province today, military officials reported.

The facilitator was responsible for acquiring and transporting explosive materials and planning improvised explosive device attacks against Afghan and coalition forces throughout the district, officials said.

In other operations today:
-- In the Shorabak district of Kandahar province, coalition forces discovered an IED cache containing 5,000 pounds of homemade explosives and several main charges. All of the materials were destroyed.

-- A combined force detained a Haqqani leader and called in an airstrike that killed several insurgents in the Jaji district of Paktiya province. The Haqqani leader coordinated roadside bombings and indirect-fire attacks against Afghan and coalition forces. He also provided weapons, including IEDs, to insurgents.

-- A combined force detained a Taliban facilitator and one other insurgent in the Baraki Barak district of Logar province. The facilitator supplied weapons, ammunition and equipment to insurgents for attacks against Afghan and coalition troops.

-- A combined force detained several suspects during a search for a Taliban leader in the Wali Muhammad Shahid Khugyani district of Ghazni province. The sought-after insurgent leader plans and conducts roadside bombings against Afghan and coalition forces along Highway 1.

In May 23 operations:
-- A combined force discovered a cache containing 12 IEDs, two mines and seven jugs filled with homemade explosives in the Zharay district of Kandahar province.

-- A combined force killed six insurgents during a firefight in the Pul-E Alam district of Logar province. Some small arms and a radio device were recovered from the insurgents.

-- A combined force detained eight insurgents in the Terezayi district of Khowst province.

-- A combined force detained four insurgents in the Sabari district of Khowst province after finding three IEDs and four loaded AK-47 rifles in their vehicle.

-- A combined force called in an airstrike that killed two insurgents, including Jamil Ur Rahman, a senior insurgent leader, during an operation in the Waygal district of Nuristan province. Rahman had provided leadership and coordinated insurgent activities across eastern Afghanistan.

-- A combined force discovered a weapons cache containing 50 pounds of homemade explosives, five 120 mm mortar rounds and some small-arms ammunition in the Mizan district of Zabul province.

-- In the Shindand district of Herat province, a combined force discovered a weapons cache containing seven cluster bombs,
12 82 mm mortar rounds, one 107 mm rocket and 10 rocket engine boosters. The cache was destroyed.

In May 21 operations:
-- In the Kajaki district of Helmand province, a combined force killed several insurgents and destroyed 3,102 pounds of poppy seed, 484 pounds of wet opium, 22 pounds of ammonium nitrate and drug production equipment.

EPA WILL SPEND OVER $63 MILLION ON CONTAMINATED SITES AND REVITALIZING COMMUNITIES

Photo Credit:  Wikimedia
FROM:  U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Announces $69.3 Million to Clean Up Contaminated Sites and Revitalize Communities
Investment will protect people’s health and the environment, create jobs and promote economic redevelopment nationwide

WASHINGTON – Today the Environmental Protection Agency (EPA) announced $69.3 million in grants for new investments to provide communities with funding necessary to clean and redevelop contaminated properties, boost local economies and create jobs while protecting public health.

"Restored Brownfield properties can serve as cornerstones for rebuilding struggling communities. These grants will be the first step in getting pollution out and putting jobs back into neighborhoods across the country,” said EPA Administrator Lisa P. Jackson. “Clean, healthy communities are places where people want to live, work and start businesses. We're providing targeted resources to help local partners transform blighted, contaminated areas into centers of economic growth."

The 245 grantees include tribes and communities in 39 states across the country, funded by EPA’s Brownfields Assessment, Revolving Loan Fund, and Cleanup (ARC) grants, and Revolving Loan Fund Supplemental grants. The grants awarded will assess and clean up abandoned industrial and commercial properties. Nearly half of the grantees this year are new awardees who demonstrate a high level of commitment for undertaking specific projects and leveraging the funding to move those projects forward.

Highlights of the projects planned by grant recipients:

 DeKalb County, Ga. plans to clean up and redevelop major industrial areas served by transit and infrastructure in community areas, in addition to expanding greenspace and community-based development. One important revitalization effort is targeted for the General Motors Assembly Plant (closed in 2008), which sits at the convergence of two major corridors and the Doraville MARTA Station. Upon redevelopment, the project will reduce blight and increase the local tax base.

 Toledo, Ohio (Coalition) will use the awarded assessment grant funding to revitalize under-served neighborhoods and create local jobs at two proposed projects. The Coalition will investigate properties in the Cherry Street Corridor/Summit Street Redevelopment area to allow for the expansion of St. Vincent's Hospital and Central Catholic High School. Secondly, the Fernwood Growing Center Area, located in an underserved, low income neighborhood, will be expanded by at least two additional sites for the use of urban agriculture.

 Paul Cuffee School, a maritime charter school for Providence public school children in Rhode Island, is receiving two EPA cleanup grants to clean and redevelop adjacent properties for a new parking lot and athletic field for students.

 Land-of-Sky, a local government planning and development organization located in N.C., will use grant funds awarded to rehabilitate the Chatham Site, a former manufacturing plant, a mill and a Western electric plant into approximately 150 multifamily rental units. The project may result in leveraging additional funding, including New Markets Tax Credits, construction permanent loans, Federal Historic Tax Credit equity, NC Mill Rehab Tax Credit equity and deferred development fees. Assessments have been completed and the project is ready to begin redevelopment.

 Wisconsin Department of Natural Resources will provide a loan from its Revolving Loan Fund to the city of Kenosha for the cleanup of the Kenosha Engine Plant Cleaning site, a former Chrysler/American Motors plant. The site, once the pride of southeastern Wisconsin, will provide the community the opportunity to market the site to private investors that could bring jobs and tax revenue to the community.

Approximately 29 percent of the grants are being awarded to non-urban areas with populations of 100,000 or less, 16 percent are being awarded to “micro” communities with populations of 10,000 or less, and the remaining grants are being awarded to urban areas with populations exceeding 100,000.

There are an estimated 450,000 abandoned and contaminated waste sites in America. In 2011, EPA’s brownfields program leveraged 6,447 jobs and $2.14 billion in cleanup and redevelopment funds. Since its inception EPA’s brownfields investments have leveraged more than $18.3 billion in cleanup and redevelopment funding from a variety of public and private sources and have resulted in approximately 75,500 jobs. More than 18,000 properties have been assessed, and over 700 properties have been cleaned up. Brownfields grants also target under-served and low income neighborhoods – places where environmental cleanups and new jobs are most needed.

FDIC INSURED BANKS EARNED OVER $35 BILLION IN THE FIRST QUARTER OF 2012

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FROM:  FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported an aggregate profit of $35.3 billion in the first quarter of 2012, a $6.6 billion improvement from the $28.8 billion in net income the industry reported in the first quarter of 2011. This is the 11th consecutive quarter that earnings have registered a year-over-year increase. However, loan balances declined by $56.3 billion (0.8 percent) after three consecutive quarterly increases.

FDIC Acting Chairman Martin J. Gruenberg said, "The condition of the industry continues to gradually improve. Insured institutions have made steady progress in shedding bad loans, bolstering net worth, and increasing profitability." He also noted, "The overall decline in loan balances is disappointing after we saw three quarters of growth last year. But we should be cautious in drawing conclusions from just one quarter."
More than two-thirds of all institutions (67.5 percent) reported improvements in their quarterly net income from a year ago. Also, the share of institutions reporting net losses for the quarter fell to 10.3 percent from 15.7 percent a year earlier. The average return on assets (ROA), a basic yardstick of profitability, rose to 1.02 percent from 0.86 percent a year ago.

Lower provisions for loan losses and higher noninterest income were responsible for most of the year-over-year improvement in earnings. First-quarter loss provisions totaled $14.3 billion, almost one-third less than the $20.9 billion that insured institutions set aside for losses in the first quarter of 2011. Net operating revenue (net interest income plus total noninterest income) totaled $169.6 billion, an increase of $5 billion (3.1 percent) from a year earlier, as gains from loan sales rose by $2.3 billion. Realized gains on investment securities and other assets were $2 billion higher than in the first quarter of 2011.
Asset quality indicators continued to improve as insured banks and thrifts charged off $21.8 billion in uncollectible loans during the quarter, down $11.7 billion (34.8 percent) from a year earlier. The amount of noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell for an eighth consecutive quarter, but the percentage of loans and leases that were noncurrent remained high by historical standards.
Financial results for the first quarter of 2012 are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Among the findings:

Total loan balances fell. Credit card loans had a seasonal decrease of $38.2 billion, closed-end 1-4 family residential real estate loans fell by $19.2 billion, and home equity lines of credit dropped by $13.1 billion. Balances in constructon and development loans declined by $11.7 billion. However, loans to commercial and industrial borrowers increased by $27.3 billion, and auto loans were up by $4.5 billion.

The flow of money into insured deposit accounts slowed. Deposits in domestic offices increased by $67.8 billion (0.8 percent) during the quarter, after rising by more than $200 billion in each of the previous three quarters. Balances in large noninterest-bearing transaction accounts, which have temporary unlimited deposit insurance coverage, fell by $77.3 billion. In contrast, in the previous three quarters the balances in these accounts increased by more than $532 billion. Most of the current quarter's decline occurred at a few of the largest banks that previously received a major share of the inflows. Balances in interest-bearing deposits at domestic offices rose by $100.1 billion.

The number of "problem" institutions fell for the fourth quarter in a row. The number of "problem" institutions declined from 813 to 772. This is the smallest number of "problem" banks since year-end 2009. Total assets of "problem" institutions declined from $319 billion to $292 billion. Sixteen insured institutions failed during the first quarter. This is the smallest number of failures in a quarter since the fourth quarter of 2008, when there were 12.

The Deposit Insurance Fund (DIF) balance continued to increase. The DIF balance — the net worth of the fund — rose to $15.3 billion at March 31 from $11.8 billion at the end of 2011. Assessment revenue and fewer bank failures continued to drive growth in the fund balance. The contingent loss reserve, which covers the costs of expected failures, fell from $6.5 billion to $5.3 billion during the quarter. Estimated insured deposits grew 0.7 percent in the first quarter.

"In summary, indicators of financial strength and asset quality continued to improve in the first quarter, but the process of recovery is clearly still ongoing," Acting Chairman Gruenberg said. He added, "The improved financial condition of the industry has not yet translated into sustained loan growth. We will continue to watch this indicator closely."
The complete Quarterly Banking Profile is available at http://www2.fdic.gov/qbp on the FDIC Web site.

FLEET WEEK PARADE OF SHIPS

FROM:  U.S. NAVY

Fleet Week New York 2012 begins with a parade of tall and military ships on the Hudson River. More than 6,000 Sailors, Marines and Coast Guardsmen arrived in New York on six U.S. Navy ships, three U.S. Coast Guard cutters, and 12 coalition ships. Fleet Week will commemorate the bicentennial of the War of 1812 and the Star-Spangled Banner. U.S. Navy photo by Mass Communication Specialist 2nd Class Leona Mynes (Released) 120523-N-LU814-153

150TH ANNIVERSARY OF TAPS

U.S. AIR FORCE
Buglers from across the nation gathered at Arlington National Cemetery on Saturday, May 19, 2012 to honor the 150th anniversary of taps. (Photo by Jim Dresbach) 
Arlington ceremony honors 150th anniversary of taps 
by Jim Dresbach
Pentagram Staff Writer
5/21/2012 - WASHINGTON (AFNS) -- Intermingled with song birds and reverent silence, 200 buglers from around the country collectively sounded America's most recognizable bugle call May 19 at Arlington National Cemetery.

From Section 60 to the Kennedy gravesites, the 150th anniversary of the bugle call "taps" was commemorated at a morning tribute in the Old Amphitheater and by sounding a mid-day rendition from corner to corner of the cemetery.

"This is an enormous privilege. I am honored," said Jay Callahan of Greensboro, N.C., who sounded the call in the vicinity of Gen. John Pershing's grave.

Like Callahan, who wore a typical World War I-era uniform featuring leggings and wool trousers, many buglers took the opportunity to wear war-period uniforms. Male and female, young and old, active-duty and veterans traveled from as far as California and Washington state to fill a sun-kissed sky with the gift of taps.

Before the mass-sounding, the buglers cradled their instruments during the anniversary commemoration and listened to the executive director of the Army National Cemeteries Program, Kathryn A. Condon, who thanked the standing room-only crowd for their attendance and their devotion toward veterans and active-duty service members.

"On behalf of Arlington [National Cemetery] and all of the other national cemeteries, I want to thank each and every one of you today for honoring our veterans - those who are laid to rest and those who are currently serving - with your presence today," she said. "I want to wish happy anniversary to taps because taps is even older than Arlington."

History has recorded that taps formally replaced a French bugle call for lights out during the Civil War and was first sounded at a military burial in July of 1862. By 1900, the bugle call was routinely being played at every military funeral.

Many stories of cemetery location choices where buglers sounded the 24 notes of taps were poignant and touching. Bugler John Teller of Middletown, Md., who was dressed in Civil War-era garb, picked the burial site of his grandfather, U.S. Navy Capt. Steadman Teller, in Arlington National Cemetery's section two.

Tom Day, the founder of Bugles Across America - an organization devoted to providing a live sounding of taps at every military funeral - played at President Howard Taft's grave. Born in Illinois, Day graduated from Chicago's Taft High School.

Bruce McKee of Martinsville, Ind., made sure he played in section 34 where his long-time Air Force buddy is buried.

"To me, [playing here] is the Holy Grail," said McKee, who was also joined by his 19-year-old daughter, Carrie, who also played taps during the Saturday ceremonies. "This is a once-in-a-lifetime event.
Basically, this is a dream come true for a bugler to stand here and play in this place."

Alan Tolbert, a 13-year-old middle school trumpeter from Shippensburg, Pa., played near the burial site of Johnny Clem, a Civil War Union drummer boy who became the youngest noncommissioned officer in Army history and later a brigadier general.

"This is a great opportunity to honor all those who served and died in the military," said Tolbert. "Taps is something that differs from every other bugle call."

BP TO ADD OVER $400 MILLION IN POLLUTION CONTROLS AND PAY $8 MILLION PENALTY

Photo Credit:  Wikimedia.
FROM:  U.S. ENVIRONMENTAL PROTECTION AGENCY
BP Agrees to Add More Than $400 Million in Pollution Controls at Indiana Refinery and Pay $8 Million Clean Air Act Penalty

WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced that BP North America Inc. has agreed to pay an $8 million penalty and invest more than $400 million to install state-of-the-art pollution controls and cut emissions from BP’s petroleum refinery in Whiting, Ind. When fully implemented, the agreement is expected to reduce harmful air pollution that can cause respiratory problems such as asthma and are significant contributors to acid rain, smog and haze, by more than 4,000 tons per year.

“Today's settlement will protect the residents of northwestern Indiana from harmful air pollution by requiring state-of-the-art pollution controls,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance."BP's agreement to install fenceline monitoring will also ensure that residents have access to critical information about pollution that may be affecting their community.”

“In this case, BP North America has not lived up to all of its obligations under an earlier settlement agreement and has committed new violations of the Clean Air Act at its Whiting refinery in Indiana,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “This settlement secures a significant penalty, requires state-of-the-art controls, and is a fair and just resolution that will address BP’s violations. We will continue to hold BP accountable and ensure that it complies with the nation’s environmental laws.”

The complaint alleges violations of Clean Air Act (CAA) requirements at the Whiting refinery in connection with construction and expansion of the Whiting Refinery, as well as violations of a 2001 consent decree with the company that covered all of BP’s refineries and was entered into as part of EPA’s Petroleum Refinery Initiative.

Today’s settlement will lead to the installation of innovative pollution controls on the largest sources of emissions at the Whiting refinery, including extensive new controls on the refinery’s flaring devices. Flaring devices are used to burn-off waste gases. The more waste gases sent to a flare, and the less efficient the flare is when burning those gases, the more pollution that will occur. Under the settlement, BP will install new equipment that will limit the amount of waste gas sent to flaring devices in the first place, as well as implement innovative, cutting-edge controls to ensure proper combustion efficiency for any gases that are burned in a flaring device. The requirements, similar to those included in a recent settlement with Marathon Petroleum Corp., are part of EPA’s national effort to reduce emissions from flares at refineries, petrochemical and chemical plants.

In addition to the controls on the refinery’s flares, the settlement will also result in reduced emissions by imposing some of the lowest emission limits in refinery settlements to date, enhancing controls on wastewater containing benzene and providing for an enhanced leak detection and repair program. Today’s settlement also requires the Whiting refinery to spend $9.5 million on projects at the refinery to reduce the emissions of greenhouse gases.

BP will perform a supplemental environmental project in which they will install, operate and maintain a $2 million fence line emission monitoring system at the Whiting refinery and will make the data collected available to the public by posting the information on a publicly-accessible website. Fenceline monitors will continuously monitor benzene, toluene, pentane, hexane, sulfur dioxide, hydrogen sulfide and all compounds containing reduced sulfur.

BP Products North America Inc., headquartered in Warrenville Ill., engages in the exploration, development, production and marketing of oil and natural gas, and additionally operates petroleum refineries in California, Indiana, Ohio, Texas and Washington. BP North America Inc. is a subsidiary of BP p.l.c., headquartered in London, England. The Whiting Refinery has a refining capacity of approximately 405,000 barrels per day, and is the 6th largest refinery in the United States.

The state of Indiana, the Sierra Club, Save the Dunes, the Natural Resources Defense Council, the Hoosier Environmental Council, the Environmental Law and Policy Center, the Environmental Integrity Project, Susan Eleuterio and Tom Tsourlisalso joined in this settlement.

INVESTMENT CLUB MANAGER GETS 12 YEARS FOR $40 MILLION FRAUD

Photo:  Lady Justice.  Credit:  Wikimedia.
FROM:  U.S. JUSTICE DEPARTMENT
Wednesday, May 23, 2012
Investment Club Manager Sentenced in Virginia to 12 Years in Prison for $40 Million Fraud
WASHINGTON – Alan James Watson, 47, of Clinton Township, Mich., was sentenced today to 12 years in prison for fraudulently soliciting and accepting $40 million from more than 900 members of his investment club, Cash Flow Financial LLC (CFF).  Watson subsequently lost nearly all of the investors’ money through non-disclosed, high-risk investments.  Victims were located in Virginia and nationwide.  Watson was also ordered to forfeit $36,615,344.

U.S. District Judge Gerald Bruce Lee in the Eastern District of Virginia also sentenced Watson to three years of supervised release.  Watson pleaded guilty to one count of wire fraud on Sept. 22, 2011.

The sentencing was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Postal Inspector in Charge of Criminal Investigations Gerald O’Farrell of the U.S. Postal Inspection Service (USPIS).

“Mr. Watson deceived members of his investment club from early on and drove his scheme deeper and deeper while investors remained none the wiser,” said Assistant Attorney General Breuer.  “His lies destroyed lives, and today’s sentence ensures he will pay for his destructive actions.  The 12-year prison sentence handed down today is a signal to fraudsters that criminal deception born from greed will not be tolerated.”
“The pitch Mr. Watson made to investors was a big fat lie, and he kept lying until his scheme collapsed and investors lost nearly everything,” said U.S. Attorney MacBride.  “Based on these lies, investors recommended Mr. Watson’s club to their friends and family, and the damage to these relationships was just as harmful as the financial devastation itself.”

“More than 900 unwitting victims thought they had done their homework and calculated their investment wisely; instead, they were met with false documentation that yielded no return on their investment,” said FBI Assistant Director in Charge McJunkin.  “Investigating white collar crime has been and will continue to be a priority for the FBI and our law enforcement partners, as demonstrated by this case and today’s sentence.”
According to court documents, Watson created CFF in 2004 and served as the club’s chief executive officer.  From 2006 to 2009, Watson received almost $40 million from investors.  Watson purported that the money would be invested through an equities-trading system developed by an expert consultant, Trade LLC, with a promised return on investment of 10 percent per month.  In reality, Watson admitted that only $6 million of the $40 million was ever invested in Trade LLC, while the remaining $34 million was secretly invested in miscellaneous, high-risk ventures without the consent of investment club members.  These high-risk investments resulted in a near complete loss of the $34 million.

According to court documents, despite the losses for the investors, Watson continued to create false monthly account statements showing net gains from their investments.  In addition, Watson included “bonus” items on the account statements that appeared as trading profits, the result of a Ponzi scheme he orchestrated to use new investor funds to pay off earlier investors.

In March of 2009, Watson ceased investing in Trade LLC and re-deposited those funds in separate unauthorized ventures.  In 2010, nearly a year after he had fully withdrawn finances from Trade LLC, Watson informed investment club members that he had not invested their money as promised, and that none of the reported returns had ever materialized.  This resulted in a combined $40 million loss for investment club members.
The Commodity Futures Trading Commission (CFTC) has filed a related civil case in the Eastern District of Michigan.

This case was investigated by the FBI’s Washington Field Office, USPIS, the CFTC and the U.S. Securities and Exchange Commission.  The department thanks these agencies for their substantial assistance in this matter.

Trial Attorney Kevin B. Muhlendorf of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark D. Lytle of the Eastern District of Virginia are prosecuting the case on behalf of the United States.

The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia.  The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force, an interagency national task force.

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

MARINES BECOME U.S. CITIZENS

FROM:  AMERICAN FORCES PRESS SERVICE
Marine Corps Sgt. Jose Guadarramapedraza, left, and Marine Corps Staff Sgt. Jason Constable pose for a photo at Camp Leatherneck, Afghanistan, May 16, 2012. They earned their U.S. citizenship before deploying. U.S. Marine Corps photo by Cpl. Isaac Lamberth  

Face of Defense: Marines Earn Citizenship Before Deployment
By Marine Corps Cpl. Isaac Lamberth
3rd Marine Aircraft Wing
CAMP LEATHERNECK, Afghanistan, May 24, 2012 - Two Marines with Marine Wing Support Squadron 273 reached a turning point in their lives before deploying to Afghanistan.

Staff Sgt. Jason Constable, a watch officer and combat engineer, and Sgt. Jose Guadarramapedraza, an administration specialist, are now citizens of the United States.
"I've always felt like I was an American," said Constable, a native of New Zealand.
Constable said he came to the United States in 1985 and completed his sophomore year in high school after having stayed in the country for four years. He returned in 1991 and became a security guard at a hospital in Phoenix before joining the Marine Corps in 1993.
"My father wanted me to join the French Foreign Legion," he said. Instead, Constable sought his friends' opinions on what the hardest option would be to serve in the U.S. military. His friends told him it was the Marine Corps.

Constable enlisted in 1993 and left the Corps when his enlistment ended four years later.
"I lived a pretty uneventful seven years after that," he said. "After I got out, it just wasn't the same."

Constable said he missed the camaraderie and his sense of belonging and having a purpose in life. After the 9/11 attacks, he said, he felt a resurgence in patriotism and re-enlisted in 2004. In 2005, he deployed to Iraq, where he earned a Purple Heart after being injured when his vehicle hit a roadside bomb.

Constable said he wanted to earn his citizenship, and he also needed it to perform his duties. "I started needing clearances that I couldn't get because I wasn't a citizen," he explained. He took his citizenship oath hours before he deployed to Afghanistan.

Guadarramapedraza migrated to Idaho from central Mexico with his family of 11. He grew up in Mountain Home and enlisted in the Marine Corps in 2004. He said he had permanent residency before he joined, but that not being a citizen began to hamper his ability to carry out day-to-day activities at work.

"I can do my job easier and not have headaches from having to renew my green card and not be able to do certain tasks with my job," he said. "It's a huge relief."
Guadarramapedraza said gaining his citizenship has opened new avenues for him at work. As an administrative specialist, he ensures squadron personnel are paid their entitlements and receive their awards. The new clearances allow him to access secure networks while he's deployed.

"I felt proud," he said. "It was the right thing to do for my family and the Marine Corps. In order to do my job and be proficient and support my Marines, I needed my citizenship," he said.

GEN. ALLEN ON AFGHANISTAN "WE'RE GOING TO NEED COMBAT POWER"

FROM:  AMERICAN FORCES PRESS SERVICE
Marine Corps Gen. John R. Allen, commander of U.S. and international forces in Afghanistan, briefs reporters at the Pentagon, May 23, 2012. DOD photo by U.S. Navy Petty Officer 1st Class Chad J. McNeeley  


Allen Anticipates Much Summer Activity in Afghanistan
By Karen Parrish
WASHINGTON, May 23, 2012 - The commander of NATO and U.S. forces in Afghanistan candidly told reporters today his assessment will largely set the course for operations there after the drawdown of U.S. surge forces and before the end of NATO's combat role in 2014.

"I owe the president some real analysis on this. We're going to need combat power; I don't think anyone questions that," Marine Corps Gen. John R. Allen, International Security Assistance Force commander, told reporters at the Pentagon.

Allen said significant events will occur in Afghanistan this summer, including the withdrawal of some troops, reposturing the battle space, inserting advisors, and moving Afghan forces increasingly into the lead.

"We've got about 30 months left on the campaign, 31 months or so," the commander said. "The ANSF has yet to be fully recruited. It'll be done soon, but the deadline on it was 1 October."

The general noted Afghan army and police numbers have grown over the past year from 276,000 to 340,000, and they will reach their full strength ahead of the scheduled deadline in October.

After the 23,000 remaining U.S. "surge" troops leave Afghanistan by the end of September, Allen said, he will take "a very hard look" at the state of the insurgency, the Afghan forces' success in planning and leading combat operations, and the operational environment he anticipates in 2013.

"The aggregation of those factors will generate ultimately an assessment of what U.S. and non-U.S. ISAF combat power I'll need ... to continue the process of moving the ANSF into the lead in '13 and '14 and giving them the kind of support that they need so that they'll be successful," he said.

"We're going to make that analysis in the aftermath of the fighting season and the recovery of the 23,000 troops," the general added.

Afghan forces augmented by International Security Assistance Force advisory teams will fill in as NATO troops thin out, the general said.

"While, in absolute terms, eventually our numbers come down, it is not our intention to cede the ground ... to the Taliban," he said.

Afghan forces will concentrate in the eastern and southwestern areas of Afghanistan to maintain security gains in the hardest-fought areas, Allen said.

At the Chicago NATO summit that ended Monday, coalition members noted the ISAF commander will regularly assess operational conditions and the capability of Afghan forces, Allen said.

"Right now we're planning every six months, so that we can adapt our plan ultimately for the final size and structure of the [Afghan army and police forces] in the post-2014 period as conditions require," he added.

Allen said NATO's campaign in Afghanistan has been long, difficult and costly, but he believes it is on track.

"I see it every day -- tangible evidence of progress," he said. "And we're making a difference. We're fulfilling the Lisbon road map of transition, and the international community is standing with the noble people of Afghanistan and Afghanistan now and into the decade of transformation."

BARK BEETLES IN PINE TREES CONTRIBUTE TO AIR POLLUTION IN TOURIST AREAS

Photo Credit:  U.S. Park Service
FROM:  NATIONAL SCIENCE  FOUNDATION
Beetle-infested Pine Trees Contribute to Air Pollution and Haze in Forests
Popular summer tourist destinations may 'see' the effects
May 23, 2012
The hordes of bark beetles that have bored their way through more than six billion trees in the western United States and British Columbia since the 1990s do more than kill stately pine, spruce and other trees.

Results of a new study show that these pests can make trees release up to 20 times more of the organic substances that foster haze and air pollution in forested areas.
A paper reporting the findings appears today in the journalEnvironmental Science & Technology, published by the American Chemical Society.

Scientists Kara Huff Hartz of Southern Illinois University Carbondale, Gannet Hallar of the Desert Research Institute's Storm Peak Laboratory in Steamboat Springs, Colo., and colleagues say that western North America is experiencing a population explosion of mountain pine beetles, a type of bark beetle that damages and kills pines and other trees.

The beetles bore into the bark of pine trees to lay eggs.
Gases called volatile organic compounds (VOCs) are released from the bore holes, which act as defense mechanisms against the beetles.

VOCs, however, also contribute to the smog and haze that obscures views of natural landscapes in U.S. national parks and other natural areas where tourists flock in summer.

"These results highlight one of the many potential feedbacks due to aerosols, which continue to be the greatest challenge to improving predictive models for air quality, visibility and climate," says Alex Pszenny, program director in the National Science Foundation's Division of Atmospheric and Geospace Sciences, which funded the research.

To determine how beetle attacks affect the atmosphere, the researchers measured VOC levels in the air near healthy and infected pine trees.

They found that beetle-infested trees release up to 20 times more VOCs than healthy trees near the ground surface.

The predominant type of VOC released by trees was called ß-phellandrene.
The data suggest that the bark beetle epidemic in the western United States could have led to higher concentrations of organic compounds in the air, which may contribute to haze.
The haze, say the scientists, may in turn harm human health, reduce visibility and affect climate.

Other authors of the paper are Hardik Amin and Aaron Brown of Southern Illinois University Carbondale; P. Tyson Atkins of the Desert Research Institute; Rachel Russo of the University of New Hampshire; and Barkley Sive of Appalachian State University in Boone, N.C.

SECRETARY OF THE AIR FORCE DONLEY VISITS THE FAR NORTH

FROM:  U.S. NAVY
Secretary of the Air Force Michael Donley addresses Airmen May 21, 2012, inside Hangar 21 at Joint Base Elmendorf-Richardson, Alaska. Donley visited Elmendorf to speak to Airmen about the direction of the Air Force, visit them on the job and find out their concerns. (U.S. Air Force photo/Staff Sgt. Zachary Wolf)  

SecAF visits 'Arctic Warriors'
by Chris McCann
Joint Base Elmendorf-Richardson Public Affairs

5/23/2012 - JOINT BASE ELMENDORF-RICHARDSON, Alaska (AFNS) -- Airmen from around Joint Base Elmendorf-Richardson gathered at Hangar 20 here May 21, where Secretary of the Air Force Michael Donley addressed the assemblage.

"This is a great opportunity to thank you for your recent service and the service of your families," Donley said.

The secretary said visiting with the Arctic Warriors was a special treat, due to the awards and recognitions Elmendorf Airmen have won recently, including an Outstanding Unit Award and numerous Air Force-level and major command-level awards.

He also noted the vital missions and strategically important locale that Alaska presents.
In 2011, approximately 1,000 Elmendorf Airmen were deployed. Around a third of those went to Afghanistan; the rest deployed to the Horn of Africa and other areas in the Central Command area of operations.

The Department of Defense has been emphasizing the importance and continued focus on the Pacific region.

"Alaska, Hawaii, Guam, Korea and Japan are critical to U.S. interests," Donley said, emphasizing "close relationships with allies and emerging powers."

The secretary also highlighted the Air Force's efforts to continue to modernize and protect a high-quality, ready force that's able to grow more capable in the future.

"We're redoubling our efforts to eliminate waste and maintain an effective acquisition process," Donley said, although he noted that the current $33 billion in efficiencies found is not enough.

"In short, the best course of action is to trade size for quality," he said. "We will get smaller, but we'll continue to modernize ... to be a superb force."

Some areas will be protected from coming budget cuts, he said - special operations forces, space and cyber in particular.

"But as we get smaller, we cannot protect everything," Donley explained.

He said that as part of its Fiscal Year 2013 budget request, the Air Force is looking to cut 3,900 active-duty personnel, 5,100 Air National Guard personnel and 900 Air Force Reserve personnel to balance force structure changes with manpower requirements. In addition, some programs will be restructured or terminated to protect key Air Force priorities.

One of the changes proposed in the FY13 budget is to move the squadron of F-16 Fighting Falcon fighters from Eielson Air Force Base to JBER, which would mean approximately 540 Airmen relocating to Elmendorf.

"That move does not close Eielson," Donley emphasized.

The secretary also underscored the vital role that Airmen play in making today's Air Force the best in the world.

"Airmen are the living engine that powers the Air Force," Donley said. "It's all just a static display until you add Airmen.

"Our U.S. Air Force is the envy of the world," he said. "You and all members of the Total Force are up to the challenge, and you deserve to be proud of your work here in Alaska."

PRESIDENT OBAMA CONGRATULATES AIR FORCE ACADEMY GRADUATING CLASS

(U.S. Air Force graphic, photo/Mike Kaplan) 
FROM:  AMERICAN FORCES PRESS SERVICE
Obama Congratulates U.S. Air Force Academy Graduates
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service
WASHINGTON, May 23, 2012 - President Barack Obama addressed the U.S. Air Force Academy's graduating Class of 2012 today, reminding them of the Air Force's critical role and congratulating them as they prepare to build on a new era of American leadership.
"It's great to be back at a school that has produced so many of the airmen I've known as president," Obama said on the school's campus in Colorado Springs, Colo. "Every day I rely on outstanding academy graduates who serve at the White House."

The president noted "great" airmen serving the country such as Brig. Gen. Marshall B. Webb, who is prominently featured in the photo of White House's Situation Room taken the day Osama bin Laden was killed in Pakistan by Navy SEALs.

Obama also pointed out that he presented the Commander-in-Chief's Trophy to the academy's Fighting Falcons football team for a second straight year, and record 18th time, and highlighted the service of academy graduates serving aboard Air Force One, such as his pilot, Air Force Col. Scott Turner.

Obama said this visit to the Air Force Academy, his second, brought the class full circle as the cadets were preparing to go to Jacks Valley, a wooded training area on the academy's grounds, for field training in 2008.

"So I was proud to be here when you began this journey, and I thought I'd come back and help you celebrate at the end," he said.

"You survived. In you, we see the values of integrity and service and excellence that will define your lives," Obama said. "And I know you couldn't have made it without the love and support of your moms and dads and brothers and sisters and grandmas, grandpas, aunts, uncles, cousins."

Four years ago when the cadets entered the academy was a time of "extraordinary challenge for our nation," Obama said.

"Our forces were engaged in two wars," he said. "Al-Qaida, which had attacked us on 9/11, was entrenched in their safe havens. Many of our alliances were strained, and our standing in the world had suffered."

The U.S. economy at that time was "in the worst recession since the Great Depression," Obama continued. "Around the world, and here at home, there were those that questioned whether the United States still had the capacity for global leadership."

Today, the cadets are stepping forward into a "different world," the president said.
"You are the first class in nine years that will graduate into a world where there are no Americans fighting in Iraq," he said. "For the first time in your lives, and thanks to Air Force personnel who did their part, Osama bin Laden is no longer a threat to our country."
"We've put al-Qaida on the path to defeat, and you are the first graduates since 9/11 who can clearly see how we'll end the war in Afghanistan," Obama added.

The president said all of this means the 180,000 troops serving in Iraq and Afghanistan four years ago now number less than half of that figure.

"As more Afghans step up, more of our troops will come home, while achieving the objective that led us to war in the first place, and that is defeating al-Qaida and denying them safe haven," Obama said. "So we aren't just ending these wars; we are doing so in a way that makes us safer and stronger."
The president also commended the graduating class for two achievements at "one of the most demanding academic institutions in America."

This year, the academy boasts "the largest number of graduates ever to go directly on to graduate school [and] the largest number of female graduates in academy history," Obama noted. "You will follow in the footsteps of General Janet Wolfenbarger, who I was proud to nominate as the first female four-star general in Air Force history."

Obama said the cadets are joining "the finest, most capable military the world has ever known [and] no other nation even comes close."

Though the war in Afghanistan is drawing to a close, Obama cautioned the cadets that there are still terrorists in the world who seek to kill Americans.

"And so, guided by our new defense strategy, we'll keep our military and our Air Force fast and flexible and versatile," he said. "We will maintain our military superiority in all areas -- air, land, sea, space and cyber. And we will keep faith with our forces and our military families."

SPACEX BLAST-OFF

FROM:  NASA
May 22, 2012 RELEASE : 12-161  SpaceX Launches NASA Demonstration Mission to Space Station  CAPE CANAVERAL, Fla. -- The second demonstration mission for NASA's Commercial Orbital Transportation Services (COTS) program is under way as SpaceX's Falcon 9 rocket and Dragon spacecraft lifted off Tuesday from Cape Canaveral Air Force Station in Florida at 3:44 a.m. EDT.

"I want to congratulate SpaceX for its successful launch and salute the NASA team that worked alongside them to make it happen," NASA Administrator Charles Bolden said. "Today marks the beginning of a new era in exploration; a private company has launched a spacecraft to the International Space Station that will attempt to dock there for the first time. And while there is a lot of work ahead to successfully complete this mission, we are certainly off to good start. Under President Obama’s leadership, the nation is embarking upon an ambitious exploration program that will take us farther into space than we have ever traveled before, while helping create good-paying jobs right here in the United States of America."

The Dragon capsule will conduct a series of checkout procedures to test and prove its systems, including the capability to rendezvous and berth with the International Space Station. On Thursday, May 24, Dragon will perform a flyby of the space station at a distance of approximately 1.5 miles to validate the operation of sensors and flight systems necessary for a safe rendezvous and approach. Live NASA TV coverage beginning at 2:30 a.m.

Following analysis of the flyby by NASA and SpaceX managers, the Dragon capsule will be cleared to rendezvous and berth with the space station on Friday, May 25, marking the first time a commercial company has attempted this feat. The Expedition 31 crew on board the station will use the orbiting complex's robotic arm to capture Dragon and install it on the bottom side of the Harmony node. NASA TV will provide live coverage beginning at 2 a.m.

"This flight is an important milestone as NASA and SpaceX develop the next generation of U.S. spacecraft to carry the critically important experiments, payloads and supplies to our remarkable laboratory in space," said William Gerstenmaier, associate administrator for NASA's Human Exploration Operations Directorate at the agency's Headquarters in Washington.

SpaceX and Orbital Sciences, which will perform its own test flight later this year, have been working under NASA's COTS program, which provides investments to stimulate the commercial space industry in America. Once the companies have successfully completed their test flights, they will begin delivering regular cargo shipments to the station.

"NASA is working with private industry in an unprecedented way, cultivating innovation on the path toward maintaining America's leadership in space exploration," said Philip McAlister, director for NASA's Commercial Spaceflight Development.

In parallel to COTS, NASA's Commercial Crew Program is helping spur innovation and development of new spacecraft and launch vehicles from the commercial industry to develop safe, reliable and cost-effective capabilities to transport astronauts to low Earth orbit and the space station.

NASA also is developing the Orion spacecraft and Space Launch System (SLS), a crew capsule and heavy-lift rocket that will provide an entirely new capability for human exploration beyond low Earth orbit. Designed to be flexible for launching spacecraft for crew and cargo missions, SLS and Orion will expand human presence beyond low Earth orbit and enable new missions of exploration across the solar system.

- end -