U.S. DEPARTMENT OF EDUCATION AWARDS $50,000 TO COLORADO SCHOOLS RECOVER FROM THEATER SHOOTING

Public School.  Credit:  Wikimedia. 

FROM: U.S. DEPARTMENT OF EDUCATION
U.S. Department of Education Awards Nearly $50,000 to Help Colorado's Aurora Public Schools Recover from Theater Shooting

November 16, 2012The U.S. Department of Education’s Office of Safe and Healthy Students, formerly the Office of Safe and Drug-Free Schools, has awarded Aurora Public Schools in Aurora, Colo., a Project School Emergency Response to Violence (SERV) grant totaling nearly $50,000. The grant will provide assistance for ongoing recovery efforts following a deadly shooting during the midnight premiere of the movie, "The Dark Knight Rises."

"This senseless attack profoundly impacted students and educators throughout the city, and these resources will help the Aurora community provide special care to those who need it," said U.S. Secretary of Education Arne Duncan. "We want to support this community as it continues to recover and reconnect after this horrific event."

Project SERV provides critical support to districts and institutions of higher education that have experienced a significant traumatic event and need resources to respond, recover, and re-establish a safe environment for students. The Office of Safe and Healthy Students has awarded more than $29 million to 97 grantees, including Aurora Public Schools, since the grant program began in 2001.

On Thursday, July 20, 2012, a lone gunman opened fire in the Century 16 multiplex theater. He shot and killed 12 people, including a recent school district graduate, and wounded 58 more. According to Aurora Public Schools, more than 300 of its students and staff were affected, including 50 students from Gateway High School, some of whom were injured, and 10 students from Hinkley High School, who experienced the shooting spree in the theater. With high school registration scheduled for the following week, and the new academic year’s launch scheduled for the week of August 6, 2012, the teaching and learning environment was immediately affected, and continues to be impacted by the tragedy.

Aurora Public Schools applied for and received a Project SERV Immediate Services grant in order to support efforts taken by the district to restore the learning environment while also providing critical assistance to students and staff.

J.P. MORGAN SECURITIES LLC CHARGED BY SEC WITH MISLEADING INVESTORS IN RMBS OFFERINGS

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
In coordination with the federal-state Residential Mortgage-Backed Securities Working Group, the Securities and Exchange Commission today charged J.P. Morgan Securities LLC and affiliated entities with misleading investors in offerings of residential mortgage-backed securities (RMBS). The firm agreed to a settlement in which it will pay $296.9 million. The SEC plans to distribute the money to harmed investors.

The SEC alleges that JP Morgan misstated information about the delinquency status of mortgage loans that provided collateral for an RMBS offering in which it was the underwriter. JP Morgan received fees of more than $2.7 million, and investors sustained losses of at least $37 million on undisclosed delinquent loans. JP Morgan also is charged for Bear Stearns' failure to disclose its practice of obtaining and keeping cash settlements from mortgage loan originators on problem loans that Bear Stearns had sold into RMBS trusts. The proceeds from this bulk settlement practice were at least $137.8 million.

According to the SEC's complaint against JP Morgan filed in federal court in Washington D.C., federal regulations under the securities laws require the disclosure of delinquency information related to assets that provide collateral for an asset-backed securities offering. Information about the delinquency status of mortgage loans in an RMBS transaction is important to investors because those loans are the primary source of funds by which investors can earn interest and obtain repayment of their principal.

The SEC alleges that in the prospectus supplement for the $1.8 billion RMBS offering that occurred in December 2006, JP Morgan made materially false and misleading statements about the loans that provided collateral for the transaction. The firm represented that only four loans (.04 percent of the total loans collateralizing the transaction) were delinquent by 30 to 59 days, and that those four were the only loans that had had an instance of delinquency of 30 or more days in the 12 months prior to the "cut-off date" for the transaction. However, at the time JP Morgan made these representations, the firm actually had information showing that more than 620 loans (above 7 percent of the total loans collateralizing the transaction) were, and had been, 30 to 59 days delinquent, and the four loans represented as being 30 to 59 days delinquent were in fact 60 to 89 days delinquent.

The SEC's complaint also alleges that Bear Stearns' bulk settlements covered loans collateralizing 156 different RMBS transactions issued from 2005 to 2007. Loan originators were usually required by contract to buy back loans that suffered early payment defaults or had other defects. However, Bear Stearns frequently negotiated discounted cash settlements with these loan originators in lieu of a buy-back on loans that were owned by the RMBS trusts. The firm - both before and after the merger with JP Morgan - then kept most of the bulk settlement proceeds. The firm failed to disclose the practice to investors who owned the loans. Bear Stearns repurchased only about 13 percent of these defective bulk settlement loans from the trusts, compared to a nearly 100 percent repurchase rate when loan originators agreed to buy back the defective loans. For most loans covered by bulk settlements, the firm collected money from originators without paying anything to the trusts.

JP Morgan and J.P. Morgan Acceptance Corporation I settled the SEC's charges by consenting to pay disgorgement of $39,900,000, prejudgment interest of $10,600,000, and a penalty of $24,000,000 for the delinquency misstatements, which the SEC will seek to distribute to harmed investors in the transaction through a Fair Fund. JP Morgan; EMC Mortgage, LLC; Bear Stearns Asset Backed Securities I, LLC; Structured Asset Mortgage Investments II, Inc.; and SACO I, Inc. agreed to pay disgorgement of $137,800,000, prejudgment interest of $24,265,536, and a penalty of $60,350,000 for the bulk settlement practice misconduct, and the SEC will seek to distribute these funds to harmed investors through a separate Fair Fund. JP Morgan and each of the other defendants consented, without admitting or denying the allegations, to the entry of a final judgment permanently enjoining them from violating Section 17(a)(2) and (3) of the Securities Act of 1933. The settlement is subject to court approval.

U.S. DOD 'DISTRIBUTION SYNCHRONIZER'

U.S. Transportation Command's global campaign plan for distribution will ensure the command is postured to ensure warfighters have the transportation and logistical support required to conduct future missions around the world. Here, Army Spc. Chance Alwin with 1st Battalion, 17th Infantry Regiment, takes the lead during a combat patrol in Kandahar province, Afghanistan, Dec. 9, 2009. Courtesy photo

FROM: U.S. DEPARTMENT OF DEFENSE

Transcom Charts Future as DOD's 'Distribution Synchronizer'
By Donna Miles
American Forces Press Service
SCOTT AIR FORCE BASE, Ill., Nov. 14, 2012 - For years, tiny Morón Air Base in Southern Spain appeared to be headed to the chopping block. The base, established with the Spaniards in the early 1950s, had for decades been relegated to standby status for U.S. deployments in support of exercises or crisis response.

U.S. Air Forces in Europe leaders, looking for ways to cut operations that don't directly support their contingency plans, were prepared to close its gates. However, officials at U.S. Transportation Command, working with U.S. European Command, helped them realize that although Morón may no longer be vital to activities in the European theater, it's a key node for operations within both U.S. Central Command and U.S. Africa Command.

The decision to maintain Morón offers a snapshot of Transcom's work as the Defense Department's officially designed "distribution synchronizer," Navy Rear Adm. William "Andy" Brown, the command's director of strategy, policies, programs and logistics, told American Forces Press Service

That mission, assigned in early 2011, charges Transcom to look horizontally across the combatant commands -- rather than vertically, through individual combatant command stovepipes -- to synchronize planning for global distribution operations, Brown explained.

The idea is to help DOD "knit the distribution seams among the combatant commands to better support their theater campaign and contingency plans," Air Force Gen. William M. Fraser III, the Transcom commander, told the Senate Armed Services Committee earlier this year.

This, in turn, will help ensure access to the places vital to Transcom's transportation and distribution mission, Fraser said, ensuring sufficient distribution lines across multiple theaters for it to project and sustain forces around the globe.

A big consideration, Brown said, is to continue posturing Transcom to react to simultaneous events with the transportation and distribution network in place to support them. "What happens if we had to [respond to] a hurricane over here and another operation over there?" he said, pointing to two opposite ends of the globe. "What happens to the global transportation network, and how do you maintain that resiliency and ability to react quickly to changes?"

Transcom's global campaign plan for distribution, expected to be completed by late 2013, will provide the framework for addressing these issues, Air Force Col. Carol Johnson, a plans officer in Brown's directorate, reported.

The campaign plan will help Transcom identify what measures need to be taken now to provide the infrastructure, relationships and other requirements to support the defense strategic guidance, she said. That includes the department's pivot toward the Asia-Pacific region, the drawdown of combat operations within Centcom, natural disasters and other contingencies.

Recognizing that requirements will always outweigh capability, Johnson said the global campaign plan will help DOD identify redundancies, establish priorities, weigh risks and recommend solutions for reducing them.

Working with an initial concept, Transcom brought together stakeholders from across its distribution community to war-game it in July. "Everybody agreed it was feasible and would work," Johnson said of the concept. Now, the Transcom staff is waiting for Undersecretary of Defense for Policy James N. Miller to give that concept the green light, most likely in early December, so they can begin drafting the official plan.

If that plan is approved as expected by the end of next year, Transcom officials plan to spend a year fine-tuning the processes.

Then, once each year, the Transcom commander will sit at the table with defense senior leaders and the other combatant commanders to review their theater distribution plans and identify ways to shore up any gaps.

"Our job will be to look across the spectrum and make recommendations to the chairman," Brown said. "From a national perspective, our No. 1 priority is to get this global campaign plan for distribution right."

The annual review will help keep Transcom's global distribution plan in line with the changing strategic environment and COCOM requirements, Johnson said.

"Most people write plans, get them approved, then put them on the shelf until it's time to pull them off and execute," she said. "But ours is consistently going to be evolving and updating, because we do this every day. Our plan will be updated based on the strategic environment and the strategic needs of the Defense Department."

Ultimately, she said, the new plan will help DOD develop a more strategic posture for the future.

"In the past, we have been reactionary in supporting folks when things happen, and we haven't had that strategic look at distribution," Johnson said. "But with the global campaign plan for distribution, we can be more strategic in the planning effort of distribution. And that will make us more effective in everything we do."

DEFENSE: MULTIPLE MISSILE ENGAGEMENT

A Terminal High Altitude Area Defense (THAAD) interceptor is launched from Meck Island on its way to intercept of a ballistic missile target during MDA’s historic flight test on Oct. 24, 2012. (Photo by Andrew Hall)

FROM: U.S. DELPARTMENT OF DEFENSE
Written by jtozer
Five Targets, One Missile

The Missile Defense Agency, U.S. Army soldiers from the 94th and 32nd Army Air and Missile Defense Command; U.S. Navy sailors aboard the USS FITZGERALD (DDG 62); and airmen from the 613th Air and Space Operations Center successfully conducted the largest, most complex missile defense flight test ever attempted resulting in the simultaneous engagement of five ballistic missile and cruise missile targets.

An integrated air and ballistic missile defense architecture used multiple sensors and missile defense systems to engage multiple targets at the same time.

All targets were successfully launched and initial indications are that the Terminal High Altitude Area Defense system successfully intercepted its first medium-range ballistic target in history, and PATRIOT Advanced Capability-3 (PAC-3) near simultaneously destroyed a Short Range Ballistic Missile and a low flying cruise missile target over water.

The live-fire demonstration, conducted at U.S. Army Kwajalein Atoll/Reagan Test Site, Hickam Air Force Base and surrounding areas in the western Pacific, stressed the performance of the Aegis Ballistic Missile Defense, THAAD and PATRIOT weapon systems.

An Extended Long Range Air Launch Target (E-LRALT) missile was airdropped over the broad ocean area north of Wake Island from a U.S. Air Force C-17 aircraft, staged from Joint Base Pearl Harbor-Hickam, Hawaii. The AN/TPY-2 X-band radar, located with the THAAD system on Meck Island, tracked the E-LRALT, and a THAAD interceptor successfully intercepted the medium-range ballistic missile. THAAD was operated by soldiers from the 32nd AAMDC.

Another short-range ballistic missile was launched from a mobile launch platform located in the broad ocean area northeast of Kwajalein Atoll. The PATRIOT system, manned by soldiers of the 94th AAMDC, detected, tracked and successfully intercepted the target with a PAC-3 interceptor.

The USS FITZGERALD successfully engaged a low-flying cruise missile over water. The Aegis system also tracked and launched an SM-3 Block 1A interceptor against a short-range ballistic missile. However, despite indication of a nominal flight of the SM-3 Block 1A interceptor, there was no indication of an intercept of the SRBM.

FTI-01 was a combined developmental and operational test. Soldiers, sailors and airmen from multiple combatant commands operated the systems and were provided a unique opportunity to refine operational doctrine and tactics. Program officials continue to assess and evaluate system performance based upon telemetry and other data obtained during the test.

Ballistic Missile Defense System programs have completed 56 successful hit-to-kill intercepts in 71 flight test attempts since 2001

Story provided by the Missile Defense Agency


　

SOL HAS TWIN SONS

FROM: NASA

Double Prominence Eruptions


The Sun erupted with two prominence eruptions, one after the other over a four-hour period (Nov. 16, 2012). The action was captured in the 304 Angstrom wavelength of extreme ultraviolet light. It seems possible that the disruption to the Sun’s magnetic field might have triggered the second event since they were in relatively close proximity to each other. The expanding particle clouds heading into space do not appear to be Earth-directed. Credit: NASA/SDO

 

OHIO AUTOMOBILE PARTS SUPPLIER EXECUTIVE PLEADS GUILTY IN PRICE FIXING AND BID-RIGGING CONSPIRACY

FROM: U.S. DEPARTMENT OF JUSTICE

Executive Agrees to Serve One Year in U.S. Prison
WASHINGTON — An executive at the Ohio subsidiary of a Japanese automotive supplier pleaded guilty today for his role in a conspiracy to fix prices and rig bids of anti-vibration rubber parts sold in the United States and elsewhere, the Department of Justice announced. This is the first charge in the department’s ongoing investigation into price fixing and bid rigging in the automobile anti-vibration rubber parts industry, which is one of the department’s ongoing investigations into anticompetitive conduct in the automotive parts industry.

According to a one-count felony charge filed on Oct. 30, 2012, in the U.S. District Court for the Northern District of Ohio, in Toledo, Hiroshi Yoshida, a Japanese national employed at the Ohio-based U.S. subsidiary of an automobile anti-vibration rubber supplier headquartered in Saitama, Japan, participated in a conspiracy to rig bids for, and to fix prices of, automobile anti-vibration rubber parts sold in the United States and elsewhere. According to the charge, Yoshida’s involvement in the conspiracy began at least as early as October 2005 and continued until at least June 2011. The department said Yoshida and his co-conspirators carried out the conspiracy by agreeing, in meetings and discussions, to allocate the supply of certain automobile anti-vibration rubber parts, to exchange prices, to submit noncompetitive bids and to sell the parts at collusive and noncompetitive prices in the United States and elsewhere.

According to the plea agreement, Yoshida has agreed to serve 12 months and one day in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. Yoshida’s sentencing is scheduled to take place on Dec. 20, 2012.

Anti-vibration rubber parts are comprised primarily of rubber and metal, and are installed in automobiles to reduce engine and road vibration. Anti-vibration rubber parts are installed in suspension systems and engine mounts, as well as other parts of an automobile.

"This is the first charge in the division’s investigation into anticompetitive conduct involving automotive parts used to reduce engine and road vibration," said Joseph Wayland, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "The aim of this multi-year conspiracy was to do away with competition among suppliers, through bid rigging and price fixing, in order to maximize profits."

"We are pleased with the guilty plea entered today by Mr. Yoshida and his acceptance of responsibility, as the anti-vibration rubber parts industry is a critical component of the automobile manufacturing process," said Stephen D. Anthony, Special Agent in Charge of the FBI Cleveland Division. "The Cleveland FBI is committed to working with our Department of Justice partners in the Antitrust Division to keep this industry and other critical industries competitive by aggressively pursuing any conspiracy in Northern Ohio that undermines free competition and our economy."

Including Yoshida, nine companies and 12 executives have pleaded guilty or agreed to plead guilty in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Furukawa Electric Co. Ltd., DENSO Corp., Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc. and TRW Deutschland Holding GmbH pleaded guilty and were sentenced to pay a total of more than $790 million in criminal fines. Nippon Seiki Co. Ltd. and Tokai Rika Co. Ltd. have agreed to plead guilty and await arraignment and sentencing. Additionally, Junichi Funo, Hirotsugu Nagata, Tetsuya Ukai, Tsuneaki Hanamura, Ryoki Kawai, Shigeru Ogawa, Hisamitsu Takada, Norihiro Imai, Kazuhiko Kashimoto, Toshio Sudo and Makoto Hattori have pleaded guilty and been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each.

Yoshida is charged with violating the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

SEC CHARGES LIFE INSURANCE COMPANY WITH SECURITIES LAW VIOLATIONS

FROM: SECURITIES AND EXCHANGE COMMISSION

Washington, D.C., Nov. 15, 2012 — The Securities and Exchange Commission today charged Massachusetts Mutual Life Insurance Company with securities law violations for failing to sufficiently disclose the potential negative impact of a "cap" it placed on a complex investment product that investors were planning to use for retirement.

The SEC's investigation found that MassMutual included a cap feature in certain optional riders offered to investors, and the cap potentially affected $2.5 billion worth of MassMutual variable annuities. Neither the prospectuses nor the sales literature sufficiently explained that if the cap was reached, the guaranteed minimum income benefit (GMIB) value would no longer earn interest. MassMutual's disclosures instead implied that interest would continue to accrue after the GMIB value reached the cap, and dollar-for-dollar withdrawals would remain available to investors. A number of MassMutual's own sales agents were confused by the language in the disclosures, and investors were not sufficiently informed of the potential negative effect of taking withdrawals if they reached the cap approximately a decade from now.

MassMutual, which removed the cap after the SEC's investigation to ensure that no investors will be harmed, has agreed to settle the charges and pay a $1.625 million penalty.

"Investors shouldn't have their retirement nest eggs at risk because of undisclosed investment complexities," said Robert Khuzami, Director of the SEC's Division of Enforcement. "Through our proactive investigative efforts, we exposed a problem with a complex variable annuity investment at least a decade before it could have harmed investors."

According to the SEC's order instituting settled administrative proceedings, MassMutual offered GMIB 5 and 6 riders from 2007 to 2009 as an optional feature on certain variable annuity products. The GMIB rider sets a minimum floor for a future amount that can be applied to an annuity option, known as the "GMIB value." Unlike the contract value of the annuity that fluctuates with the performance of the underlying investment, the GMIB value increases by a compound annual interest rate of either 5 or 6 percent and allows investors to make withdrawals any time during the annuity's accumulation phase.

According to the SEC's order, MassMutual advertised its GMIB riders as providing "Income Now" if investors elected to make withdrawals during the accumulation phase or "Income Later" if they elected to receive annuity payments. MassMutual's sales literature highlighted the guarantee provided by the riders by stating, "Even if your contract value drops to zero, you can apply your GMIB value to a fixed or variable annuity." The riders included a maximum GMIB value, and investors could not reach this cap until 2022. If the GMIB value reached the cap, every dollar withdrawn would reduce the GMIB value by a pro-rata amount tied to the percentage decrease on the contract value. After a number of such withdrawals, depending on market conditions, both the contract value and the GMIB value could decline and adversely affect the amount a customer could apply to an annuity and the future income stream.

The SEC's investigation found that a number of MassMutual sales agents and others did not understand that all withdrawals taken after the GMIB value reached the cap would result in such pro-rata reductions. After reviewing MassMutual's prospectuses and other disclosures, they believed that if the GMIB value reached the cap, investors could take withdrawals and the GMIB value would remain at the cap. Some sales agents mistakenly believed that investors could maximize their benefits by waiting until the GMIB value reaches the cap, taking annual 5 or 6 percent withdrawals, and annuitizing their contracts in order to receive an income stream tied to the maximum GMIB value. But in reality, following such an investment strategy could have had severe adverse consequences for investors. By taking withdrawals annually after the cap is reached, investors would proportionately reduce their GMIB values and in turn potentially decrease their future income streams. In a worst-case scenario, they would withdraw all of their contract value, the GMIB value would decline to zero, and they would be left with nothing to annuitize and, consequently, no future income stream.

According to the SEC's order, while MassMutual was offering GMIB riders, there were indications that sales agents and others did not understand the effect of post-cap withdrawals on the GMIB value, which should have alerted the company to the fact that its disclosures were inadequate. Beginning May 1, 2009, after it stopped offering the riders, MassMutual revised its prospectuses to better explain the consequences of taking withdrawals after the GMIB value reaches the cap. Following the SEC's investigation, MassMutual undertook the remedial step of removing the cap entirely from these riders in order to guarantee that no investor will ever reach the cap. This action contributed to the determination of the penalty amount. MassMutual consented to the SEC's order without admitting or denying the findings. In addition to the $1.625 million penalty, MassMutual agreed to cease and desist from committing or causing any violations and any future violations of Section 34(b) of the Investment Company Act.

The SEC's investigation was conducted by Attorney-Advisor Daniel H. Rubenstein and supervised by Associate Director Stephen L. Cohen and Assistant Director C. Joshua Felker.

HOLIDAY RETAIL CROWD CONTROL AND WORKER SAFETY

Shopping Mall Photo Credit:  Wikimedia Commons

FROM: U.S. DEPARTMENT OF LABOR

US Labor Department's OSHA encourages retailers to provide crowd management measures to protect workers during major sales events

WASHINGTON — The U.S. Department of Labor's Occupational Safety and Health Administration is encouraging retail employers to take precautions to prevent worker injuries during Black Friday and other major sales events during the holiday season.

In 2008, a worker was trampled to death while a mob of shoppers rushed through the doors of a large store to take advantage of an after-Thanksgiving Day Black Friday sales event. OSHA recommends that retailers follow certain safeguards against this type of tragedy.

"Crowd control and proper planning are critical to preventing injuries and deaths," said Dr. David Michaels, assistant secretary of labor for occupational safety and health. "OSHA urges retailers to adopt a crowd management plan during the holiday shopping season that includes a few simple guidelines."

Crowd management plans should include:
On-site trained security personnel or police officers.
Barricades or rope lines for pedestrians that do not start right in front of the store’s entrance.
Implementing crowd control measures well in advance of customers arriving at the store.
Emergency procedures in place to address potential dangers.
Explaining approach and entrance procedures to the arriving public.
Not allowing additional customers to enter the store when it reaches its maximum occupancy level.
Not blocking or locking exit doors.

Weekly Address: Working Together to Extend the Middle Class Tax Cuts | The White House

Weekly Address: Working Together to Extend the Middle Class Tax Cuts | The White House

U.S. SEC. OF STATE CLINTON ADDRESSES EMBASSY STAFF IN SINGAPORE

FROM: U.S. DEPARTMENT OF STATE

Meeting With Embassy Singapore Staff and Their Families
Remarks
Hillary Rodham Clinton
Secretary of State
St. Regis Hotel
Singapore
November 17, 2012

AMBASSADOR ADELMAN: Well, Madam Secretary, you are in the presence of an all-star team. And that is really what we're about here in the U.S. Embassy Singapore, and that is teamwork. We've got 19 U.S. Government agencies working hard every day. And you saw some of their good work over the last couple of days. U.S.-Singapore relations, as you know, have never been better, and that's a result of the work of these extraordinarily talented people and their families, who have all served the public. And, if you don't mind, I will add following in your good example.

I know they want to hear from you, and we sincerely hope you will have some time to greet some of the families individually.

SECRETARY CLINTON: Absolutely. Absolutely.

AMBASSADOR ADELMAN: So, once again, please join me in thanking our United States Secretary of State, Hillary Rodham Clinton. (Applause.)

SECRETARY CLINTON: Thank you so much. Thank you, David. Thank you. Thank you all. Well, it is wonderful, being back here in Singapore, and having this chance to thank each and every one of you for the great contributions you are making to this important relationship. I want to thank the ambassador and Caroline and their entire family for representing our country so well, so enthusiastically, and so positively. And it is a special pleasure for me to thank you for what you've done to help make this trip of mine successful, and what you do every day to bring the people of our two countries closer together.

I have had excellent meetings here in Singapore. I just gave a speech about an hour-and-a-half ago at Singapore Management University about the nexus of economic power and global influence, and explaining what I call our economic statecraft agenda. I raised these issues in the meetings with the Prime Minister and the Foreign Minister. And we couldn't do what we are doing without all of you supporting American businesses, including the more than 2,000 who have their regional headquarters here. I was just out at the GE facility that does aircraft parts repair, and it was great to see what they are doing here in this region. And I also want to thank you for coordinating the efforts, as David was saying, of 19 agencies represented here. That's a lot of coordination. From State and Defense to Commerce, Treasury, USDA, and so much more.

But that represents the depth and breadth of our relationship. And this embassy has led the way with regional trade missions to Indonesia, Vietnam, India, Malaysia, most recently Burma, that ended with at least five American companies either opening an office or landing a sale there. And I am proud to say that today U.S. exports to Singapore are at an all-time high, as are American investments. That's a testament to the ambassador's leadership and the talent and energy of so many of you in this room.

I know you're also reaching out to the community, helping to clean up one of Singapore's beautiful beaches, volunteering at the Special Olympics or the Ronald McDonald House, serving meals at a retirement home, building connections which, after all, are the base of any strong relationship. That is every bit as important as security and economics for the long run.

I also want to thank all the family members who are here today. I know that there is a lot of you who are far from home. But I am glad that you are part of this team. Some of you have served unaccompanied time in Afghanistan, Iraq, and Pakistan, which I greatly appreciate. The President and I are very grateful for what you do.

I also want to take a moment to recognize our locally-engaged staff. Could all of our Singaporean staff raise your hands so we can thank you for what you do every single day? (Applause.) I want to congratulate your FSN of the Year, Susan Mok. (Applause.) And there are 3 staff members -- I did a double-take when I saw this number -- there are 3 staff members who, between them, have put in a combined 120 years of service at this post. (Applause.) Now, they all started when they were in kindergarten. (Laughter.) But let me thank Yahya Rahmat, Amy Ho, and Helen Jen. (Applause.) Because I know very well that ambassadors come and go, and secretaries come and go, but our locally-employed staff provide the continuity, the memory bank that keeps our mission going year after year.

So, it is wonderful for me to be able to come and take this chance to celebrate and thank you for all you're accomplishing on behalf of the American people and this critical relationship. And now I'm going to shake as many hands as I can, and thank you personally for the great job you are doing. Thank you all. (Applause.)

LATVIA'S NATIONAL DAY

Latvia.  Map Credit:  CIA World Factbook.

FROM: U.S. STATE DEPARTMENT

Latvia's National Day
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
November 15, 2012

On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Latvia as you celebrate the 94th anniversary of your independence this November 18. You have made progress under difficult circumstances and demonstrated what can be accomplished through hard work, pride in country, and an unwavering faith in democracy.

The United States is proud of our long shared history as strategic allies, valued partners, and close friends. Since 1918, American support for the sovereign people of Latvia has never wavered. Today, Latvia and the United States remain steadfast partners. From cooperation in Afghanistan to exploring new business opportunities, the ties between our two countries only grow stronger.

On this special day, I send my deepest congratulations to all the people of Latvia and look forward to strengthening our cooperation even more as we promote the fundamental values we both cherish.

Latvia Locator Map Credit:  CIA World Factbook.

ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK

The name "Latvia" originates from the ancient Latgalians, one of four eastern Baltic tribes that formed the ethnic core of the Latvian people (ca. 8th-12th centuries A.D.). The region subsequently came under the control of Germans, Poles, Swedes, and finally, Russians. A Latvian republic emerged following World War I, but it was annexed by the USSR in 1940 - an action never recognized by the US and many other countries. Latvia reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 28% of the population) remains of concern to Moscow. Latvia joined both NATO and the EU in the spring of 2004.

GAMER CHARGED WITH HACKING INTO GAMING COMPANY SERVERS

Photo:  Gamer Hisroty, Atari's Pong.  Credit:  Wikimedia Commons.

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, November 15, 2012

Gamer Charged with Hacking into and Disabling New Hampshire Gaming Company’s Computer Servers

WASHINGTON – A federal grand jury in the District of New Hampshire returned an indictment late yesterday charging a Dutch national with allegedly conspiring to hack into and disable computer servers belonging to Rampid Interactive, a New Hampshire-based company that publishes and hosts a multi-player online role-playing game called "Outwar," Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire announced today.

Anil Kheda, 24, of the Netherlands, is charged with one count of conspiring to commit computer intrusion and one count of making extortionate interstate threats.

The indictment alleges that from November 2007 to August 2008, Kheda and other members of the conspiracy, all of whom were avid "Outwar" players, accessed Rampid’s computer servers without authorization and rendered "Outwar" unplayable for days at a time. According to the indictment, Kheda and his alleged co-conspirators also used their unauthorized access to Rampid’s servers to alter user accounts – causing the restoration of suspended player accounts and the accrual of unearned game points – and obtain a copy of all or portions of the "Outwar" computer source code, which they used to help create a competitor online game, "Outcraft." The indictment also alleges that Kheda and his alleged co-conspirators sent Rampid interstate communications threatening to continue to hack into Rampid’s computer systems unless Rampid agreed to pay them money or provide them with other benefits.

According to the indictment, as a result of the defendants’ hacking activities, Rampid was unable to operate "Outwar" for a total of approximately two weeks over a nine-month period and incurred over $100,000 in lost revenues, wages, hosting costs, long term loss of business, as well as the loss of exclusive use of their proprietary source code, which it had invested approximately $1.5 million in creating.

According to court documents, Kheda earned approximately $10,000 in profits from operating "Outcraft," which has approximately 10,000 players worldwide.

If convicted, Kheda faces a maximum sentence of five years in prison on the conspiracy charge and two years in prison on the interstate threats charge.

The case was investigated by the FBI and is being prosecuted by Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.

The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

FORFEITURE JUDGEMENTS ENTERED AGAINST PROPERTIES BOUGHT WITH BRIBE MONEY

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, November 14, 2012
U.S. Forfeits $2.1 Million Worth of Property Purchased with Alleged Bribes Paid to the Family of the Former President of Taiwan

The Department of Justice has forfeited a Manhattan condominium and a Virginia residence – with a combined value of approximately $ 2.1 million – purchased with the proceeds of alleged bribes paid to the family of the former President of Taiwan, Shui-Bian Chen, as part of the department’s Kleptocracy Asset Recovery Initiative. Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division announced the forfeiture today with U.S . Immigration and Customs Enforcement (ICE) Director John Morton.

On Oct. 23, 2012, U.S. District Judge Norman Moon of the Western District of Virginia entered a final forfeiture judgment against a residence in Keswick, Va., and On Oct. 24, 2012, U.S. District Judge Katherine Forrest in the Southern District of New York entered a final forfeiture judgment against a condominium in Manhattan. Both properties were previously owned by the former first family of Taiwan through a British Virgin Islands shell company.

Today, ICE Homeland Security Investigations (HSI) took possession of the Virginia property. The title of the Manhattan condominium has been vested through court order to the government.

According to the civil forfeiture complaints filed in this case, during former President Chen’s administration, Yuanta Securities Co. Ltd. paid a bribe of 200 million New Taiwan dollars (equivalent to approximately $6 million USD) to former first lady Sue-Jen Wu in 2004 to ensure that the Taiwan government would not oppose Yuanta’s bid to acquire a financial holding company.

The former first family used Hong Kong and Swiss bank accounts, British Virgin Island companies and a St. Kitts and Nevis trust to purchase the two properties. One of the shell companies, Avallo Limited, which held title to both properties through U.S. domestic companies, settled both forfeiture actions under terms that provide for the sale of the property and forfeiture to the U.S. government of approximately 85 percent of the net proceeds from the sale of both properties.

"The Kleptocracy Initiative was established to prevent corrupt leaders from using the United States as a safe haven for their ill-gotten gains," said Assistant Attorney General Breuer. "The former president of Taiwan’s family allegedly accepted millions in bribes in exchange for official action favoring Yuanta Securities, and we have now taken possession of two valuable properties purchased with their alleged spoils. We are committed to using every tool available to root out foreign official corruption."

"This most recent seizure of luxury properties in New York City and Keswick, Va. belonging to the son of the former President of Taiwan Shui-Bian Chen is part of a continued effort by Homeland Security Investigations special agents to identify, locate, and seize properties and accounts in the United States belonging to him and his family," said ICE Director Morton. "HSI will continue to find and seize the U.S. assets of foreign corrupt officials who try to use our country to conceal the illicit proceeds and profits of their crimes."

The case was prosecuted by Deputy Chief Linda Samuel and Trial Attorney Jennifer Wallis of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Criminal Division’s Office of International Affairs provided valuable assistance. The case was investigated by ICE- HSI’s Foreign Corruption Investigations Group, the HSI Miami Asset Identification and Removal Group and the HSI Attaché Hong Kong, with assistance from the Taiwan Ministry of Justice, Special Investigations Division.

This case is part of the Justice Department’s Kleptocracy Asset Recovery Initiative. This initiative is carried out by a dedicated team of prosecutors in the Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and where appropriate return those proceeds to benefit those harmed

U.S. EXPORT-IMPORT BANK APPROVES APPROXIMATELY $500 MILLION LOAN TO FINANCE SALES OF DREAMLINERS TO POLAND

Photo:  787 Dreamliner.  Credit:  Wikimedia.

FROM: U.S. EXPORT-IMPORT BANK

Ex-Im Approves Approximately $500 million to Finance Export
of Boeing Dreamliners to Poland

Washington, D.C. – The board of the Export-Import Bank of the United States (Ex-Im Bank) authorized a comprehensive guarantee of an approximately $500 million loan to Polskie Linie Lotnicze LOT S.A. (LOT Airlines) for the export of a fleet of Boeing 787 Dreamliner aircraft to Poland.

Apple Bank for Savings of New York extended the loan.

Boeing delivered the first Dreamliner to LOT Nov. 9 in Everett, Wash. The Dreamliner departed Seattle Wednesday and arrived in Warsaw, Poland yesterday. LOT will be the first European airline to operate the Dreamliner, and it was also the first European airline to operate the Boeing 767.

Ex-Im Bank’s financing will support approximately 2,500 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.

"This landmark transaction brings American state-of-the-art aircraft to a competitive marketplace in Europe," said Ex-Im Bank Chairman and President Fred P. Hochberg. "By leveling the playing field, the Bank’s financing benefits business in both America and Poland and supports thousands of jobs in the U.S."

Founded in 1928, LOT became the first airline in Central and Eastern Europe to operate American-manufactured aircraft. It is also the only airline that currently offers non-stop flights between the U.S. and Poland. The fleet of Dreamliners, which will contribute to LOT’s efforts to simplify, modernize, and upgrade its operations, will continue LOT’s non-stop North American service by flying routes to Warsaw from Chicago, New York, and Toronto.

"The Dreamliner delivery is yet another historic first for LOT, already one of the world’s oldest continuing airlines, as it becomes the first airline in Europe to operate the 787," said Todd Nelp, vice president for European sales at Boeing Commercial Airplanes. "We’re thankful that Poland’s flag carrier puts its faith in American aviation know-how, and that Ex-Im Bank is there to support our customers who enable and sustain thousands of U.S. technology jobs."

Nippon Export and Investment Insurance of Japan is co-financing the transaction.

As of the end of FY 2012, Ex-Im Bank’s credit exposure in Poland totaled $5.5 million.

POLICY AND WATER RESOURSE MANAGEMENT

Photo:  Planet Mars And Future Earth?  Credit:  NASA 

FROM: NATIONAL SCIENCE FOUNDATION

Water Resources Management and Policy in a Changing World: Where Do We Go From Here?

Scientists at American Geophysical Union conference present new findings on a resource becoming more precious than gold

November 15, 2012

Visualize a dusty place where stream beds are sand and lakes are flats of dried mud. Are we on Mars? In fact, we're on arid parts of Earth, a planet where water covers some 70 percent of the surface.

How long will water be readily available to nourish life here?

Scientists funded by the National Science Foundation's (NSF) Dynamics of Coupled Natural and Human Systems (CNH) program are finding new answers.

NSF-supported CNH researchers will address water resources management and policy in a changing world at the fall meeting of the American Geophysical Union (AGU), held in San Francisco from Dec. 3-7, 2012.

In the United States, more than 36 states face water shortages. Other parts of the world are faring no better.

What are the causes? Do the reasons lie in climate change, population growth or still other factors?

Among the topics to be covered at AGU are sociohydrology, patterns in coupled human-water resource systems and the resilience of coupled natural and human systems to global change.

Researchers will report, for example, that human population growth in the Andes outweighs climate change as the culprit in the region's dwindling water supplies. Does the finding apply in other places, and perhaps around the globe?

Scientists presenting results are affiliated with CHANS-Net, an international network of researchers who study coupled natural and human systems.

NSF's CNH program supports CHANS-Net, with coordination from the Center for Systems Integration and Sustainability at Michigan State University.

CHANS-Net facilitates communication and collaboration among scientists, engineers and educators striving to find sustainable solutions that benefit the environment while enabling people to thrive.

"For more than a decade, NSF's CNH program has supported projects that explore the complex ways people and natural systems interact with each other," says Tom Baerwald, NSF CNH program director.

"CHANS-Net and its investigators represent a broad range of projects. They're developing a new, better understanding of how our planet works. CHANS-Net researchers are finding practical answers for how people can prosper while maintaining environmental quality."

CNH and CHANS-Net are part of NSF's Science, Engineering and Education for Sustainability (SEES) investment. NSF's Directorates for Geosciences; Social, Behavioral and Economic Sciences; and Biological Sciences support the CNH program.

"CHANS-Net has grown to more than 1,000 members who span generations of natural and social scientists from around the world," says Jianguo "Jack" Liu, principal investigator of CHANS-Net and Rachel Carson Chair in Sustainability at Michigan State University.

"CHANS-Net is very happy to support another 10 CHANS Fellows--outstanding young scientists--to attend AGU, give presentations there, and learn from leaders in CHANS research and build professional networks. We're looking forward to these exciting annual CHANS-Net events."

Speakers at AGU sessions organized by CHANS-Net will discuss such subjects as the importance of water conservation in the 21st century; the Gila River and whether its flows might reduce the risk of water shortages in the Colorado River Basin; and historical evolution of the hydrological functioning of the old Lake Xochimilco in the southern Mexico Basin.

Other topics to be addressed include water conflicts in a changing world; system modeling of the Great Salt Lake in Utah to improve the hydro-ecological performance of diked wetlands; and integrating economics into water resources systems analysis.

"Of all our natural resources, water has become the most precious," wrote Rachel Carson in 1962 in Silent Spring. "By a strange paradox, most of the Earth's abundant water is not usable for agriculture, industry, or human consumption because of its heavy load of sea salts, and so most of the world's population is either experiencing or is threatened with critical shortages."

Fifty years later, more than 100 scientists will present research reflecting Rachel Carson's conviction that "seldom if ever does nature operate in closed and separate compartments, and she has not done so in distributing Earth's water supply."

SECRETARY OF DEFENSE PANETTA'S REMARKS AT THE ASEAN MEETING

U.S. Defense Secretary Leon E. Panetta, center, tours Angkor Wat with U.S. Ambassador to Cambodia William E. Todd, right, and David L. Carden, left, U.S. Ambassador to the U.S. Mission to the Association of Southeast Asian Nations, in Siem Reap, Cambodia, Nov. 16, 2012. Angkor Wat is the largest Hindu temple complex in the world. DOD photo by Erin A. Kirk-Cuomo

FROM: U.S. DEFENSE DEPARTMENT

Presenter: Secretary of Defense Leon E. Panetta November 16, 2012
Remarks by Secretary Panetta at ASEAN Meeting, Siem Reap, Cambodia


SECRETARY OF DEFENSE LEON E. PANETTA: Well, good afternoon to everyone.

It has been a real pleasure for me to have the opportunity to be here in Cambodia for my first visit as secretary of defense.

I want to thank the Association of Southeast Asian Nations, ASEAN. We had the opportunity to sit down together at lunch, and then in a more formal session, to exchange our views.

And I want to express in particular my thanks to Cambodia's minister of national defense, who has been such a gracious host.

This is my final stop on my trip to Southeast Asia. This trip has taken me to Australia, and then to Thailand, and now to Cambodia. And the message that I have conveyed on this visit, and my other visits, is that the United States's rebalance to the Asia-Pacific region is real, it is sustainable, and it will be ongoing for a long period of time into the future.

The United States military has been working with friends and partners and allies in the Asia-Pacific region for over 70 years. Americans have fought and died in this region, and our goal has always been to try to promote peace and prosperity throughout this region. And we have tried to foster conditions that would lead to economic growth, more effective governance, and an effort to help lift millions from property and create a better future for generations to come.

And we are deepening our military engagement with our allies and partners in this region, in order to ensure that we are able to promote security and prosperity for many years to come.

But our increased military engagement in the region is but one part of the effort by the United States to rebalance. This effort includes not just military, but diplomatic, economic and cultural engagement across the region. And I know that President Obama looks forward to discussing each of these elements of our rebalance when he arrives here for the East Asia Summit later this week.

Today, we reaffirm the importance of ASEAN unity for building regional stability, and also the United States's support for ASEAN-led defense cooperation in a number of critical areas to the region, including humanitarian assistance, disaster relief, maritime security, nonproliferation and counterterrorism.

I also want to underscore, and I stressed this in meetings that I participated in, the support of the United States for the protection of human rights, of civilian oversight of the military, of respect for the rule of law, and for the right of full and fair participation in the political process here in Cambodia and throughout Southeast Asia.

And as I said last year in Indonesia, and I stress again, we are committed to further strengthening the U.S.-ASEAN relationship. And as a reflection of that commitment, the United States will increase the size and number of exercises that we participate in in the Pacific with our Southeast Asia partners. And we are devoting new funding to this goal.

In addition, we're pleased to see progress toward action-oriented cooperation in the ASEAN Defense Ministers Meeting-Plus. And the United States looks forward to participating in three ADMM-Plus exercises in 2013, including a humanitarian and disaster relief exercise that will be hosted by Brunei, a counterterrorism exercise that we are cosponsoring with Indonesia, and a maritime security exercise co-chaired by Malaysia and Australia.

I expressed to my counterparts that I am impressed by the continuing development of ASEAN-led efforts to enhance security. As I stated at the last meeting, we in the Pacific are part of one family of nations, and we may not agree on all issues, but we are committed to work together to ensure the security of that family.

Let me conclude by saying that this is in many ways a new era in the U.S. relationship in this region. It is based on the principles of the rule of law. It is based on our presence to try to help develop the capabilities of nations. It is based on partnership. And it is based on the common goal of advancing peace and prosperity and opportunity for all people in all nations in the Asia-Pacific region.

Thank you.

PLANETARY NEBULA ABEL 30: 'A SPECIAL PHASE OF EVOLUTION'

FROM: NASA

A Reborn Planetary Nebula
These images of the planetary nebula Abell 30 show one of the clearest views ever obtained of a special phase of evolution for these objects. The inset image on the right is a close-up view of A30 showing X-ray data from NASA's Chandra X-ray Observatory in purple and Hubble Space Telescope data showing optical emission from oxygen ions in orange. On the left is a larger view showing optical and X-ray data from the Kitt Peak National Observatory and ESA's XMM-Newton, respectively. In this image the optical data show emission from oxygen (orange) and hydrogen (green and blue), and X-ray emission is colored purple.

A planetary nebula -- so called because it looks like a planet when viewed with a small telescope -- is formed in the late stage of the evolution of a sun-like star. After having steadily produced energy for several billion years through the nuclear fusion of hydrogen into helium in its central region, or core, the star undergoes a series of energy crises related to the depletion of hydrogen and subsequent contraction of the core. These crises culminate in the star expanding a hundred-fold to become a red giant.

Eventually the outer envelope of the red giant is ejected and moves away from the star at a relatively sedate speed of less than 100,000 miles per hour. The star meanwhile is transformed from a cool giant into a hot, compact star that produces intense ultraviolet radiation and a fast wind of particles moving at about 6 million miles per hour. The interaction of the UV radiation and the fast wind with the ejected red giant envelope creates the planetary nebula, shown by the large spherical shell in the bigger image.

In rare cases, nuclear fusion reactions in the region surrounding the star's core heat the outer envelope of the star so much that it temporarily becomes a red giant again. The sequence of events -- envelope ejection followed by a fast stellar wind -- is repeated on a much faster scale than before, and a small-scale planetary nebula is created inside the original one. In a sense, the planetary nebula is reborn.

Image Credit-NASA-ESA

U.S. DEFENSE DEPARTMENT AND BETTER BUYING STRATEGY

Deputy Defense Secretary Ashton B. Carter offers opening remarks as he introduces Frank Kendall, undersecretary of defense for acquisition, technology and logistics, to brief Pentagon reporters about the Defense Department's "Better Buying Power 2.0" initiative, Nov. 13, 2012. DOD photo by Glenn Fawcett

FROM: U.S. DEFENSE DEPARTMENT,
Defense Officials Preview 'Better Buying Power 2.0'

By Karen Parrish
American Forces Press Service

WASHINGTON, Nov. 13, 2012 - Deputy Defense Secretary Ashton B. Carter today unveiled a proposed new phase of the Defense Department's "Better Buying Power" initiative that since 2010 has shaped the department's acquisition arm to "do more without more."

Carter told reporters during a Pentagon briefing that when he, as undersecretary for acquisition, technology and logistics, and then-Defense Secretary Robert M. Gates announced the first round of "efficiencies" aimed at trimming defense spending, Gates "foresaw, correctly, that the days of ever-increasing defense budgets were coming to an end."

Better Buying Power, introduced in September 2010, was the acquisition contribution to the efficiencies initiative, Carter said.

"It was directed at the $400 billion that the department spends annually on goods and services, ... to get more capability for the warfighter and more value for the taxpayer by obtaining greater efficiency and productivity in defense spending what economists call 'productivity growth,'" he explained.

Now, after planning for a $487 billion decrease in spending over the next decade, the department will incorporate some lessons its members have learned since 2010 when it rolls out the final version of Better Buying Power 2.0 early in 2013, Carter said.

The deputy secretary said hundreds of examples exist of Defense Department acquisition executives putting the Better Buying Power principles into practice. "Each of these examples shows what we can achieve if we rededicate ourselves to acquisition best practices," he added.

Carter then handed the briefing off to Frank Kendall, undersecretary of defense for acquisition, technology and logistics. Kendall noted the department's proposed plan for the updated initiative will be open for review and comment for two months before a final version takes effect.

Kendall described the seven broad focus areas for the new defense buying initiative:

-- Achieve affordable programs;

-- Control costs throughout the product life cycle;

-- Offer incentives for productivity and innovation in industry and government;

-- Eliminate unproductive processes and bureaucracy;

-- Promote effective competition;

-- Improve tradecraft in acquisition of services; and

-- Improve the professionalism of the total acquisition workforce.

Kendall noted the new version includes some 36 initiatives grouped under those seven headings. In some cases, he said, they replace the original 23 initiatives in five focus areas.

"It turns out that defense acquisition is a pretty complicated subject," he noted. "And there aren't easy, simple solutions that are going to ... reform acquisition and make everything ... better overnight with one or two policy changes."

Lack of productivity -- both in government's bureaucratic processes and in industry "cycle time" – is one complicated area the acquisition chief said he thinks a lot about, and which carries over from the original 2010 initiative. Cycle time, he said, translates into "how long it takes us to get products to the field" – and he added that he's "very unhappy" with the answer.

"It's taking much too long, as far as I'm concerned," Kendall said. "And I have several efforts under way to try to understand what the root cause of that is." Delays can occur at many stages, he noted -- in setting and changing requirements, in testing, and even in production.

"Is industry not as agile as it once was? There are a number of possible causes there, and it's probably some combination of them all, together. ... But I would definitely like to reduce cycle times," he said.

The new effort brings new approaches, but the same aim, to defense acquisition as 2010's Better Buying Power initiative, Kendall said: to give troops fighting the nation's wars the best equipment, and to get good value for every taxpayer dollar.

Kendall said he sees results from the two-year-old effort, but he echoed defense leaders' statements for months past when he warned that such progress, and any plans to achieve deliberate cost savings, will wither if the Budget Control Act's sequester mechanism takes effect in January.

Sequestration would trigger an additional $500 billion in across-the-board defense spending cuts over the next decade if Congress fails to agree on an alternative.

"It's a horrible way to take money out [of the defense budget]," he said. "It really flies in the face of everything we're trying to accomplish here."

RECENT U.S. NAVY PHOTOS

 
FROM: U.S. NAVY

121110-N-ZZ999-001
ARABIAN GULF (Nov. 10, 2012) An Army AH-64D Apache helicopter from the 3-159th Attack Reconnaissance Battalion lands on the flight deck of the afloat forward staging base (interim) USS Ponce (AFSB(I) 15), while Ponce conducts interoperability familiarization and integration training. USS Ponce, formerly designated as an amphibious transport dock ship, was converted and reclassified to fulfill a long-standing U.S. Central Command request for an AFSB to be located in the 5th Fleet area of responsibility. (U.S. Navy photo by Chief Intelligence Specialist Cedric Thomas/Released)

　

121112-N-MO201-273
SOUDA BAY, Greece (Nov. 12, 2012) The Los Angeles-class fast attack submarine USS Alexandria (SSN 757) departs Souda Bay, Greece. Alexandria is homeported in Groton, Conn., and currently deployed conducting maritime security operations and theater security cooperation efforts in the U.S. 6th Fleet area of responsibility. (U.S. Navy photo by Paul Farley/Released)

USS Alexandria U.S. Navy photo by Paul Farley

PANETTA CRITICAL OF STALLED CYBERSECURITY LEGISLATION

U.S. Cyberbrigade.  Credit:  U.S. DOD.

FROM: U.S. DEPARTMENT OF DEFENSE
Panetta 'Disappointed' as Cyber Legislation Stalls
American Forces Press Service

WASHINGTON, Nov. 15, 2012 - Defense Secretary Leon E. Panetta is "disappointed" that an effort to move pending cybersecurity legislation forward failed in the Senate yesterday, Pentagon Press Secretary George Little said.

Little, traveling with Panetta in the Asia-Pacific region, issued a statement after the Senate rejected by a 51-47 vote a procedural motion by Sens. Joseph Lieberman and Susan Collins to move the legislation forward.

"Secretary Panetta was disappointed to learn that the Senate failed to move forward on the Cybersecurity Act of 2012, which would have enhanced our nation's ability to protect itself against cyber threats, which are growing at an alarming rate," Little said.

Cyberattacks threaten to have crippling effects on America's critical infrastructure and its government and private-sector systems, he added.

"The U.S. defense strategy calls for greater investments in cybersecurity measures, and we will continue to explore ways to defend the nation against cyber threats," Little said. "New legislation would have enhanced those efforts. If the Congress neglects to address this security problem urgently, the consequences could be devastating."