FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged the managing partners of a Charlotte, N.C.-based investment advisory firm for compromising their independent judgment and allowing a third party with its own interests to influence the portfolio selection process of a collateralized debt obligation (CDO) being offered to investors.
The investment managers have agreed to collectively pay more than $472,000 and exit the securities industry to settle the SEC’s charges.
According to the SEC’s order instituting settled administrative proceedings, disclosures to investors indicated that NIR Capital Management LLC was solely selecting the assets for Norma CDO I Ltd. as the designated collateral manager. However, NIR’s Scott H. Shannon accepted assets chosen by hedge fund firm Magnetar Capital LLC for the Norma CDO’s portfolio, and Joseph G. Parish III allowed Magnetar to influence the selection of some other assets. Shannon himself called at least one of the residential mortgage-backed securities (RMBS) ultimately included in the portfolio a “real stinker.” Magnetar bought the equity in the CDO but also placed short bets on collateral in the CDO and therefore had an interest not necessarily aligned with potential long-term debt investors that relied on the CDO and its collateral to perform well.
The SEC also today announced charges against Merrill Lynch, which structured and marketed the Norma CDO.
“Shannon and Parish could not serve two masters,” said George S. Canellos, co-director of the SEC’s Division of Enforcement. “They allowed Magnetar to influence asset selection and abdicated their duty to pick only the assets they believed were best for their client.”
According to the SEC’s order, NIR initially was unaware when Magnatar purchased $472.5 million in long exposure to RMBS for the Norma CDO in August and September 2006 based on information that NIR provided to Magnetar that was preliminary and not intended as a basis for actual collateral selection. By the time it learned about the purchases in November 2006, NIR already had purchased a substantial portion of the RMBS collateral. Nevertheless, NIR used its own internal credit metrics to analyze the collateral that Magnetar purchased, and Shannon then sought to exclude some of the RMBS collateral that Magnetar had acquired and selected. NIR, however, ultimately incorporated the collateral that Magnetar purchased in the closing portfolio. Shannon explained to an NIR credit analyst that the final portfolio included a number of trades that NIR did not execute, and “this leaves us with several names we probably would not want...”
According to the SEC’s order, Parish allowed Magnetar to exercise so-called approval rights by permitting the firm to be involved in the process of selecting CDO assets acquired for the portfolio. As a result, Parish knew that Magnetar was the short counterparty for much of the Norma CDO’s synthetic exposure to CDO securities. NIR attested in the collateral management agreement with the Norma CDO that it would act in good faith and exercise reasonable care in selecting the portfolio. However, the CDO and its debt investors knew nothing about NIR’s compromised decision-making with Magnetar involved in the collateral selection process.
Shannon and Parish consented to the SEC’s order finding that Shannon violated Sections 206(1) and (2) of the Investment Advisers Act of 1940 and Parish violated Section 206(2). Shannon agreed to be barred from the securities industry for at least two years and must pay disgorgement and prejudgment interest of $140,662 and a penalty of $116,553. Parish agreed to be suspended from the securities industry for at least 12 months and must pay disgorgement and prejudgment interest of $140,662 and a penalty of $75,000. Without admitting or denying the SEC’s findings, Shannon and Parish consented to cease and desist from violating respective Sections of 206 of the Advisers Act. They have agreed to dissolve the NIR business.
The SEC’s investigation was conducted by Steven Rawlings, Tony Frouge, Sharon Bryant, Kapil Agrawal, Douglas Smith, Howard Fischer, and Daniel Walfish with assistance from Gerald Gross and Joshua Pater of the New York Regional Office. They were assisted by examiners Edward Moy, Luis Casais, and Thomas Shupe in the New York office.
Friday, December 13, 2013
HACKER SENTENCED FOR ROLE IN SCHEME TO SELL ACCESS TO COMPUTER NETWORKS
FROM: U.S. JUSTICE DEPARTMENT
Thursday, December 12, 2013
Pennsylvania Man Sentenced to 18 Months in Prison for Hacking into Multiple Computer Networks
A Pennsylvania man was sentenced to serve 18 months in prison for his role in a scheme to hack into computer networks and sell access to those networks.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U .S. Attorney Carmen M. Ortiz of the District of Massachusetts made the announcement after sentencing by U.S. District Judge Mark Wolf in the District of Massachusetts on Dec. 11, 2013.
Andrew James Miller, 23, of Devon, Pa., pleaded guilty to conspiracy and computer fraud on Aug. 26, 2013. According to court documents, from 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers.
Miller obtained login credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other login credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks. Miller attempted to sell access for $50,000 to two supercomputers at the Lawrence Livermore Laboratory in Oakland, California, that were part of the National Energy Research Scientific Computing Center.
The case was investigated by the FBI and prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
Thursday, December 12, 2013
Pennsylvania Man Sentenced to 18 Months in Prison for Hacking into Multiple Computer Networks
A Pennsylvania man was sentenced to serve 18 months in prison for his role in a scheme to hack into computer networks and sell access to those networks.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U .S. Attorney Carmen M. Ortiz of the District of Massachusetts made the announcement after sentencing by U.S. District Judge Mark Wolf in the District of Massachusetts on Dec. 11, 2013.
Andrew James Miller, 23, of Devon, Pa., pleaded guilty to conspiracy and computer fraud on Aug. 26, 2013. According to court documents, from 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers.
Miller obtained login credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other login credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks. Miller attempted to sell access for $50,000 to two supercomputers at the Lawrence Livermore Laboratory in Oakland, California, that were part of the National Energy Research Scientific Computing Center.
The case was investigated by the FBI and prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
IRPAC ISSUES RECOMMENDATIONS ON TAX ISSUES TO IRS COMMISSIONER
FROM: U.S. INTERNAL REVENUE SERVICE
IRPAC Issues Annual Report for 2013
WASHINGTON — The Information Reporting Program Advisory Committee (IRPAC) today released its annual report for 2013, including numerous recommendations to the Commissioner of Internal Revenue on new and existing issues in tax administration.
“In their report, IRPAC members provide valuable feedback to the IRS on a wide range of information reporting issues,” IRS Acting Commissioner Danny Werfel said. “Committee members have graciously offered their time and expertise. The IRS will carefully consider their recommendations.”
In the 2013 report, IRPAC recommends that IRS:
Extend truncation of taxpayer identification numbers (TINs) to employer identification numbers (EINs)
Expand the TIN matching program to permit matching on a greater number of return types
Improve instructions to reduce errors on Form 1099-MISC and
Provide additional guidance with regard to merchant card reporting on Form 1099-K
The committee also commented on cost basis reporting for debt instruments, specifically addressing requirements, practices and capabilities for reporting market premium and discount. There are also extensive discussions of reporting requirements under the Foreign Account Tax Compliance Act (FATCA) and the Affordable Care Act.
IRPAC Issues Annual Report for 2013
WASHINGTON — The Information Reporting Program Advisory Committee (IRPAC) today released its annual report for 2013, including numerous recommendations to the Commissioner of Internal Revenue on new and existing issues in tax administration.
“In their report, IRPAC members provide valuable feedback to the IRS on a wide range of information reporting issues,” IRS Acting Commissioner Danny Werfel said. “Committee members have graciously offered their time and expertise. The IRS will carefully consider their recommendations.”
In the 2013 report, IRPAC recommends that IRS:
Extend truncation of taxpayer identification numbers (TINs) to employer identification numbers (EINs)
Expand the TIN matching program to permit matching on a greater number of return types
Improve instructions to reduce errors on Form 1099-MISC and
Provide additional guidance with regard to merchant card reporting on Form 1099-K
The committee also commented on cost basis reporting for debt instruments, specifically addressing requirements, practices and capabilities for reporting market premium and discount. There are also extensive discussions of reporting requirements under the Foreign Account Tax Compliance Act (FATCA) and the Affordable Care Act.
SECRETARY OF STATE KERRY'S REMARKS AT TRANSFORMATIONAL TRENDS STRATEGIC FORUM
FROM: U.S. STATE DEPARTMENT
Remarks at the Transformational Trends Strategic Forum
Remarks
John Kerry
Secretary of State
Four Seasons Hotel
Washington, DC
December 11, 2013
SECRETARY KERRY: Well, thank you, David, very, very much. Thank you, Foreign Policy Magazine. And thank you, all of you, for not singing. I really appreciate it. (Laughter.)
The – I understand that you’ve had a terrific session today talking about transformational trends with a lot of speakers. I guess Danny Russel was just here, who’s doing a superb job on Asia. And I have just come from the Hill, where I spent a good part of the afternoon with my former senator colleagues briefing them on this first-step agreement that we have secured with Iran and with P5+1. And I’ll say a few words about that in the course of this evening.
I also want to thank, recognize David McKean, who’s the State Department’s Director of Policy Planning. And his office is happily and proudly co-hosting today’s conference. We’re delighted with that. I’m looking over here, I see Ambassador David Thorne, who’s serving as the Counselor in the Department now. And Tom Friedman sitting there, and so I’ve got to be really careful with what I say tonight. (Laughter.)
Thank you very much for giving me an opportunity to talk to you. I have to tell you that at the frightening age of 70 you don’t get an AARP card, you don’t get a Medicare card, you don’t get anything, you don’t get many birthday cards either; you just get a little older. And my staff
asked me what I wanted for my birthday, and I said I want a trip around the world. They said, “Really? Another one?” (Laughter.)
The truth is I’m leaving shortly on another trip, ultimately heading for the next few days back to Vietnam, my first trip there as Secretary of State. But many, many trips, obviously, to try to lift the embargo, normalize relations, and begin the process of the transformation that we’re in today. So I’ll be proud to be back there and see the differences being made.
This conference is rightfully focused on transformation trends. And we do so, obviously, in a week where all the world is celebrating one of those really rare, truly transformational figures: Nelson Mandela. I had the privilege of attending the service, at least most of it, at the National Cathedral today.
Madiba left behind a lot of powerful lessons and a lot of profound words. But one observation of his that has always intrigued me is this: It always seems impossible until it is done. In many ways, his entire life journey seemed impossible. Mandela knew that nothing is impossible – but as President Obama said in Johannesburg just yesterday, “Nothing that he achieved was inevitable.” He didn’t know he would succeed, only that he had a responsibility to act. And he had a vision, a dream, whatever you want to call it. He knew that South Africa had to transform and that it needed agents of transformation.
I think President Obama and I both believe in agents of transformation. It takes leadership, and you have to understand that the greatest risk is not taking a risk at all. As we reflect on his life, we have to make sure that our own work summons his courage and summons his common sense.
Today, the greatest risk the United States faces not – doesn’t come from a rising rival, but it comes from dangers that arise in a world if we fail to lead. We risk creating a vacuum that, believe me, would be all too quickly filled by those with values very much different from our own – by nihilists eager to destroy, who have proven that that is their goal, without any slightest interest or stated intent in providing health care, building schools, developing energy, establishing trade, creating opportunity, expanding rights, or even most importantly perhaps, pursuing peace and stability.
The United States, without a statement of arrogance or chauvinism, still remains the indispensable nation. Why? Because we have an unparalleled ability to transform things and places, people, and the world by convening allies and adversaries alike around a set of values and around a set of principles. And after a decade of war, it has never been more clear that diplomacy can be the transformational tool that shapes the world according to our values.
Now this doesn’t mean – does not mean, I want to emphasize – that America must be the world’s parent or the world’s policeman, not at all. That’s not what the world wants from us, nor is it what we want for the world. The hard work of diplomacy and our hopes for the world have to be informed by humility. We can’t do it alone.
But the truth is America has a singular ability to be able to articulate a vision, to lay down a set of principles that we have actually lived by and practiced and made a difference by in order to galvanize the global community. History is what documents what I just said. History shows that when America musters the courage to tackle the toughest challenges, we do and can inspire our partners around the world to do the same – and to do what seems, at first, to be the impossible.
Last week, which ended with the world learning of Mandela’s death, it began with the world celebrating the progress that we’ve made on another great struggle of the 20th century: the scourge of HIV and AIDS.
Thirty years ago, as the world slowly became aware of a disease that few even understood, and even fewer believed anything could be done about it, and many feared even talking about it. People were uncomfortable with that concept. When I arrived in the Senate, I saw this discomfort that people had with even the discussion. And as recently as 10 years ago, experts said that the crisis had reached a point of no return, and AIDS was considered an automatic death sentence in much of the world.
But the United States didn’t let this pessimism deter us from bringing the world together and using our collective power to establish programs, like PEPFAR, that are turning the trend around and preventing an even greater catastrophe. I know something about that because in 1991, I think it was, Bill Frist as the Majority Leader and I joined forces in bipartisan fashion to serve as co-chairs of the CSIS Task Force on AIDS. And out of that grew an initiative that we put together, which we even got Jesse Helms to support and pass unanimously in the United States Senate. That became PEPFAR.
And since its peak in the last decade, AIDS-related deaths have declined by a third. New HIV infections have declined by 40 percent in Sub-Saharan Africa – the region that’s most heavily affected. And the number of people receiving life-saving HIV treatments has increased 40-fold. The goal that President Obama set of an AIDS-free generation – one you could barely dream about when the program began – is actually within reach today.
This is the combination of hope and hard work that only the United States can inspire to rally the world to take on that kind of complex challenge. That’s an example, and that is the spirit that guides American diplomacy, I believe, under President Obama. That’s the charge that he gave me nearly a year ago now – a little shy, a couple of months. And that vision can prove transformational in the days to come as we confront challenges of peace and prosperity, and even the very future of our planet. And that is not an exaggeration or excessively stated proposition.
There’s a reason that I believe diplomacy should always be our first resort. As many of you know, or most of you know, I’ve worn the uniform of my country and I have seen war. I know what it’s like to be shot at and I know what it’s like to lose friends in that process. And I can tell you point blank that when you have been there, done that, it sharpens your focus on the responsibility of leaders to avoid that if possible – not because you’re a pacifist but because you know the consequences. War is the failure of diplomacy.
In the first decade of this century, we all saw what happens when America favors the force of arms over the force of our diplomacy. In three of today’s most pressing challenges – in Iran, Syria, and the Israeli-Palestinian conflict – we saw the dangerous direction that events were heading. But with the careful balance of strength and diplomacy, we have now worked hard to transform those trends to shape a more secure future for our friends and allies, and deliver a hard-won and sustainable peace.
In Iran, the regime was spinning centrifuges faster and faster. In 2003, there were 164 centrifuges. Now, there are 19,000. There was a clear direction in which that program was moving, and Iran was clearly marching closer and closer to a nuclear bomb. The Syrian regime used chemical weapons against its own people, started a civil war that has taken more than a hundred thousand lives, and continues to use starvation as a weapon of war. Right next door, we see a demographic ticking time bomb testing whether Israel can remain both a Jewish and a democratic state. And we see a Palestinian people frustrated in their hopes of realizing their legitimate aspirations of economic opportunity and sovereignty.
In each of these cases, pundits and armchair isolationists said addressing the problem would be too hard, or that we were too late, or that it wasn’t our place, or that diplomacy wasn’t up to the task. But today, we see that American diplomacy, often backed by the strength of our military, in fact gives us the best chance to deliver a more secure future for our friends and allies, one where the people of the region are more free to pursue their common aspirations.
From day one, President Obama realized the danger a nuclear Iran would pose to our national security interests in the region, including our ally Israel. The President has kept his personal commitment to assuring that Iran does not obtain a nuclear weapon and will not obtain a weapon by keeping the credible threat of force on the table while using all of the tools of American diplomacy to pursue a peaceful resolution.
As only the President of the United States can, President Obama brought the world together to impose the most biting sanctions regime in history. Thanks to the President’s leadership, Iran did come to the table. In fact, you can, beyond any reasonable doubt, carry the argument that the Iranian election was profoundly affected by the will of the people to get out from under those sanctions, and that they sent a message directly contrary to what was the original intent of the regime and the people they were backing for president, that they wanted to move in a new direction. And Iran came to the table, and we are negotiating from a position of strength.
So when those same pessimists said that we should accept or contain a nuclear armed Iran, the President actually saw a different future. He knew that if the United States didn’t test Iran, the region would only grow more dangerous, that if Iran indeed was merely contained, or that somehow we threw up our hands and said this can’t be achieved, there would absolutely be to a certainty an arms race in the Gulf states and in the region.
Today, to the contrary, it is clear that diplomacy provides the best path to neutralize this threat. And I am convinced beyond any doubt that our friends in the region absolutely, positively became safer the moment this agreement was inked. And the moment it is implemented, they will truly be able to measure additional safety. And that is because we have ensured, providing the implementation provides – proceeds forward, that Iran’s program will not advance while we negotiate.
As we negotiate, Iran will forfeit its entire stock of 20 percent enriched uranium, and that – that puts it a short step away from weapons grade uranium and bomb-making material. As we negotiate, Iran will be unable to grow its stock of 3.5 percent uranium, or to stockpile centrifuges, or to increase the number of centrifuges that were in operation. As we negotiate, international inspectors will have unprecedented access to Iran’s key facilities, including daily access – which we don’t have today – to Fordow, daily access – which we don’t have today – to Natanz, and regular access to Arak, the heavy water reactor. As we negotiate, construction on the – as we negotiate, during the reprocessing facility at Arak, which could have provided an alternative path to a bomb because the plutonium – that now will not be able to move forward. All components that are not yet installed will not be able to be installed. No fuel rods will be transferred. No fuel will be transferred. No additional fuel will be able to be tested. The nuclear component of that facility will stop dead in its tracks where it is today.
As we negotiate, our Treasury Department will strongly enforce core sanctions architecture, which has deprived Iran of nearly 80 billion to 100 billion in oil revenues since 2012 as well as access to the international banking system. None of that architecture is undone in this first step agreement. It stays in place. As we negotiate, we will continue to be clear – absolutely clear – about the price of noncompliance, or of failing to satisfy the international concerns about the nuclear program in Iran. And guess what? If, in the course of this, Iran does not live up to those agreements, or if in the course of this we have failed to be able to reach agreement, we will immediately have the ability to ratchet up new sanctions and take whatever further steps are needed to prevent Iran from acquiring a nuclear weapon. Nothing has been taken off the table.
The first step that the P5+1 achieved in Geneva, I will tell you, was far from easy. And our task is far from complete. And none of us approach this on the basis somehow of existing trust. It’s not based on trust. Reagan said trust but verify. We say test but verify – test and verify. And that is exactly what we’re setting out to do. And we know the next six months are going to be even harder than this first step, because it’s going to take really tough decisions by Iran in order to absolutely live up to the notion that they’re prepared to prove that their program can only be peaceful. And when we say that, we know there are capacities that have already been built in and that are already part of their capacity today, but what we seek to do in this is expand every conceivable notion of breakout possibility from months to years. That makes Israel and the region and the world safer.
Now, it’s going to take strong military consultations with our partners, including Israel. Yossi Cohen, the national security advisor to Prime Minister Netanyahu, is here in Washington this week, already consulting with us. And we will consult with all of our partners – our European partners, Russia, China, our P5+1 partners, as well as other countries in the world – in order to focus in on what we must achieve at the negotiating table.
We still are convinced – we know that no deal, in the end, is better than a bad deal. A bad deal can lull you into some belief that you achieved something you haven’t while they have a loophole that allows them to do what you don’t want them to do. I assure you every expert in the world will be looking at this. Obviously, our friends and allies will, and we will, with as careful an eye as is humanly possible to make certain that if Iran has this program going forward, it is indeed the peaceful program, and can only be the peaceful program, that they profess it to be.
Now, there is another place in the region where strong, smart diplomacy backed by the threat of force has created a better path. As in Iran, the historic agreement to rid Syria of its chemical weapons was only a first step. But guess what? Against all the naysayers, against all the cynics, against the people who believed that dropping some bombs over the course of whatever period of time was somehow going to – which were calculated to degrade and deter their program, or the use of their program, that somehow that was more intelligent than getting all of the weapons out of the country and destroyed. That’s a logic that I find hard to follow.
What we proved was that diplomacy can be so powerful that it can diffuse the worst weapons of war. And while the President was prepared to use military force and made his decision known to the world, we also knew that that alone would not solve the problem. Force could deter and degrade Syria’s chemical weapons, but we needed to destroy it. That was our goal. And it’s because the President chose the path of diplomacy that today we are on our way to actually completing an historic first time ever complete removal of all weapons of mass destruction of a certain kind from a country. We’re going to rid this region of these heinous weapons.
But we also know that to bring an end to the humanitarian crisis, and to build a foundation for a future in which all Syrians have a say, and we end this conflict, diplomacy is going to have to do a lot more. We’ve also been pushing for Geneva II, which is to implement Geneva I, which is a transitional government, in order to try to bring that stability. And we’re finally at a point where, despite difficulties, despite delays, despite all the hurdles, that conference will take place in January.
There has to be a legitimate transition to a new government. And I haven’t heard anybody – not Putin, not Foreign Minister Lavrov, not any of our fellow foreign ministers in the region – say to us that they believe somehow there is a military solution here. Everybody has adopted and stated – the London 11 – there has to be a political solution. Well, how do you arrive at a political decision? You’ve got to negotiate. You’ve got to have diplomacy.
We knew that if the United States didn’t engage, the dangers in that region would only grow, disintegrate potentially into a complete and total breakup of the state of Syria, compartmentalization, the enclave creation of a failed state. So only as our country can do, we are working to bring opposing forces and international partners to the table. Now, I know again this is not going to be easy, but that doesn’t absolve us of our responsibility. It doesn’t mean you don’t try.
And of course, nowhere in the Middle East has peace eluded diplomats longer than in the sliver of land between the Mediterranean Sea and the Jordan River. I have been focused on that issue for a good 30 years. I’ve heard all the arguments from all the pundits on all sides – the conflict is too frozen, it’s too complicated, they don’t trust each other enough, there’s no way possible that there’s ingredients to try to make peace, it’s a fool’s errand to believe that the future can be better than the past.
Well, President Obama and I reject that cynicism. Countless prime ministers and presidents over the years have made it clear what a two-state solution looks like. That’s not the question. The question is how to get there. Today’s leaders – on both sides – have already made some tough decisions, tough choices, courageous choices, to try to take steps to move in the right direction.
President Obama is committed to this process because he understands that the possibilities of peace are dramatic and worth fighting for: a secure, Jewish, and democratic Israel living alongside a sovereign and independent Palestinian state; an Israel that enjoys peace and normalized relations with 22 Arab nations. That’s what waiting if you can implement a peace, because that’s what’s been promised in the Arab Peace Initiative, which has now been updated to include the possibility of swaps along ‘67 lines, as long as Israel is recognized – and also with 35 Muslim nations – 57 nations in all in one fell swoop.
Imagine what peace would do for trade and for tourism, what it would mean for developing technology and talent, for future generations of Israeli and Palestinian children. Imagine the possibilities of a warm peace with Egypt and other countries, where you can export the technology, help Egypt deal with a $13 billion agriculture deficit, energy deficit. The possibilities are infinite.
And that’s why exercising leadership that comes from our partnerships in the world is so critical, and that’s why we work to bring the parties back to the table. One of the reasons I’m late is I was just on the phone talking to Prime Minister Netanyahu. And I’m leaving tonight, shortly after this speech, to head back over there and then onto Vietnam and the Philippines. And we are going to continue this conversation on both sides, clear-eyed about the challenges but knowing that the status quo is unsustainable.
What you see today, this complacency, this sense of affluence and prosperity, and the lack of the violence that used to characterize it because of the nature of the fenced wall, then the – and the commitment of the Palestinians to a track of nonviolence has changed life. But it’s not going to change it forever if you don’t resolve the final status issues. The status quo is unsustainable, and there is no realistic alternative but two states for two peoples.
If diplomacy, backed by the credible threat of military force, can erase the menace of chemical weapons in Syria, if it can ultimately prevent the menace of nuclear weapons in Iran, if it can pave the way to peace and security between Israelis and Palestinians, if we can fully address these threats near and far without going to war, the region and the world will be far better off, and you, we, together will invite a true transformation in the life of that region. And the United States will gain because of that.
In the 21st century, American diplomacy, however, is not just defined by addressing conflict. The global economy is more interconnected than ever before. And I said to my – at my confirmation hearing that, in my judgment, in the modern-day world of diplomacy, foreign policy, economic policy and foreign policy are really part and parcel of the same thing; they’re one and the same.
So we know that the hard work of diplomacy demands creating shared prosperity. If you don’t deal with a problem of whole countries in large swaths of the world where 60 and 65 percent of the population are under the age of 25 or 30 at least, and 50 percent are under the age of 21, and 40 percent are under the age of 18, and they have no hope for education or jobs or a future, what do you think is going to supplant that vacuum? What’s going to fill it?
At the core of President Obama’s strategic rebalance to Asia is this whole notion of increased prosperity, of shared prosperity. And after the great recession, we saw where the trends were heading. America’s debts were too high, global demand for our products was too low. We all heard many in Congress argue that we should just turn inward, rebuilding at home instead of promoting better economic partnerships abroad.
President Obama always understood that this was a false choice. He understood that building bridges to opportunity requires breaking down barriers to competition and opening up new markets for our products abroad.
And thanks to the President’s leadership, we have signed new trade agreements with Korea, Columbia, Panama, and today we are engaged in two of the largest high-standard trade negotiations in history. The Trans-Pacific Partnership will integrate the most dynamic economic region of the world, comprising 40 percent of global economic activity. And at the same time, the United States is leading the charge to forge the Transatlantic Trade and Investment Partnership, which represents another 40 percent of the global economy.
President Obama understood that if America doesn’t speak up for high standards when it comes to labor and trade, globalization will force a race to the bottom rather than a race to the top. And as the largest market on earth, only we have the power to set that standard. We also have a responsibility to ensure that globalization is a force that affirms human dignity, ensuring strong protections for workers and consumers, and especially nowadays the environment.
We must also be mindful, as I said a moment ago, of this challenge of young people. What happened in Tunisia – it was started by a fruit vendor. It wasn’t religious motivation. It wasn’t some kind of ideological extremism. It was a human being, a person who aspired to a life where he could sell his wares without corruption, without being slapped around by a police officer. And he was so frustrated and so despairing that he took his own life in self-immolation. And that ignited a revolution that got rid of a dictator of 30 years of so.
In Tahrir Square, it wasn’t an ounce of Muslim Brotherhood. It wasn’t a religious movement. It was young people with their cell phones, smart phones, and texting and googling and talking to each other and trying to have a change because they knew they didn’t get the education they wanted, didn’t have the jobs they wanted.
And so it was incidentally in Syria, too. That began in the same form and was met with bullets and violence and has now translated into the civil war that it is, and I might add with huge extremist overtures that are threatening in many different ways.
So if we don’t create opportunity, we have multiple examples of how we create instability and how we create the problem of these conflicts that confound us. As more and more young people join the labor market, the world is going to need about a half billion new jobs by 2030.
That’s why it is hugely in the United States’ interest to support young innovators through programs like President Obama’s Global Entrepreneurship Summit, which I had the privilege of speaking at in Malaysia recently. It’s why we invest in the flagship Fulbright program and efforts like 100,000 Strong, which spur greater educational exchange. We’re trying to bring 100,000 young people from Latin America to America and send people from here to there. It’s why in every mission around the world diplomats are forging deeper and more durable links to young people. And through initiatives like SelectUSA, our ambassadors and Commerce Department are working with businesses around the world to create jobs for American workers.
In a time of tighter and tighter budgets, I’ve heard some people try to argue that these somehow are luxuries that we can’t afford. I could not disagree more, and I hope you join me in that. These are not luxuries. This is not something we do because it’s out of the goodness of our heart and it’s altruistic. These are investments that pay off in the opportunities that they create, in the far more dangerous alternatives that they avoid. A good job and a hopeful future is the best antidote to extremism.
And we’ve seen the transformation from aid to trade actually work. Our nation has had a long tradition of helping other nations stand on their own two feet. We did it brilliantly after World War II, George Marshall’s great plan, Harry Truman, which brought Europe back, developed democracies, wrote constitutions, and created wealth. We also know that this is the way to create prosperity and security here at home. Guess what? Today, 11 out of 15 of our biggest trading partners are former recipients of American foreign aid. One of them, South Korea, graduated not so long ago from recipient of aid to donor to other countries. So I just say to you, think of the opportunities awaiting us in Africa, home to seven of the 10 fastest-growing economies in the world. There is no long-term challenge more worthy of our diplomatic energy, however. I can say a lot more about this, incidentally because – I don’t have time tonight, but there’s just so much staring us in the face in terms of these opportunities.
And by the way, those of you who travel have experienced firsthand the infrastructure gap that is growing between the United States and lots of other countries. The quality of airports, quality of train stations, quality of tracks, quality of available infrastructure, the fact that America is a great big gaping hole right in the center of our country where we don’t have a grid, we don’t connect our energy. You could produce clean energy in the four corners down around Colorado, Arizona, New Mexico, and so forth, but we can’t send it anywhere. We have an east coast grid, a west coast grid, a little line up in the north of America, and down south we got the Texas grid all by itself. Huge hole in the middle. So if you produce clean energy in Minnesota by wind power, you can’t send it somewhere. If you produce clean energy in the south by solar power, and you can’t send it to the north when they need it. This doesn’t make sense. And guess what? There’s a huge amount of private capital in the world waiting to invest in revenue-producing infrastructure projects, and we’re not even in the ballgame.
In the end, there’s no more long-term challenge more worthy of our diplomatic energy than the one that might just trump all the others. And it’s not about territory, it’s not about security, it’s not about religion. It is the threat of global climate change. I just read the latest report from the United Nations Intergovernmental Panel on Climate Change, who Foreign Policy Magazine had the good sense to recognize as one of this year’s 100 global thinkers. If we continue down the path that we’re on today, scientists predict – not politicians, not radio talk show hosts – scientists, people we once most respected in our society for their knowledge and their body of work and their evidentiary process and their pedagogy for how they produce what they produce – well, they predict today that by the end of this century, the sea will have risen on average by a full meter. I know a meter doesn’t sound like a lot to some people, but if you put it into reality, it’s enough to put large swaths of Miami, Calcutta, Dhaka, Tokyo, and a host of other major cities under water. That would displace millions of people, threaten billions in economic activity and infrastructure. It would also mean longer, more unpredictable monsoon seasons and more extreme weather events. We’ll see more frequent and more intense droughts, which means poor crop yields, ultimately higher food prices, and challenges food security in a world that already has food security challenges.
The scientific consensus has been clear, not for this one year, but for years and years. I remember the first hearings we held in the United States Senate. Al Gore, Tim Wirth, myself, others, we had a series of hearings. It’s been clear for years since then that this is growing in its impact and reality. And it grows only more unanimous with each study – thousands of studies, peer reviewed. Some minimal number of paid for, quote, “peer reviewed” to the contrary. Ninety-seven percent of climate experts on this planet agree that humans are creating climate change, global warming. Climate change is an economic threat. It’s a security threat. You will have climate refugees in the world, you will have climate conflicts in the world as people fight for water, where people fight for food, and they’re dislocated.
A handful of world leaders say we have reached the point of no return. And some members of Congress nevertheless still claim that this is a hoax. Even some of those who believe the science say it’s not America’s responsibility to help lead the charge. Well, we’ve heard this pessimism before. But just as the United States rallied the world to take on the scourge of AIDS, President Obama has imagined a different future, and with his Climate Action Plan is taking as much executive action as he can to try to make a different choice.
The United States has a fundamental responsibility to help address this global crisis, and we are in a unique position to do so in important ways. And our responsibility comes from a simple fact: The United States and China alone represent not quite 50 percent of all the climate – of all of the greenhouse gasses in the world. And if you put 17 to 20 nations together, they represent what is happening to the rest of the world, well over 90-plus percent. So we need to constructively engage in tough negotiations with all the major countries of the world to forge an ambitious and sustainable climate agreement.
And second, we have to help countries coming onto the grid to do so in a way that doesn’t buy into the same old mistakes and the same old process of the past. Right now, we’re seeing this plethora of gas wind up lowering the price of coal, and whole countries are turning accordingly, just driven by price, to go buy the coal and burn it. Nothing could be more damaging to our efforts to deal with climate change. We cannot look at climate change only as a burden. It actually is an incredible opportunity. The energy market that is staring us in the face, my friends, is a $6 trillion market. And it’s going to grow over the next several decades to include about 6 billion to 9 billion users.
Let me put that in perspective. In the 1990s, when every single quintile of American income earner saw their income go up, that was a $1 trillion market with 1 billion users, the high tech market. We’re looking at a $6 trillion market today with 4- to 5 billion users, going up to 6 to 9, because that’s what's going to happen to the population of the planet. And we have technology. We could be leading the charge in this if we were willing to make some tough decisions.
And so listening to the cynics who see this problem as too large, or our solutions as too late, would be absolutely the greatest missed opportunity in the world. As the most innovative economy in the world, what the United States decides to do will determine not just whether the sea is going to continue to rise, but whether the world will rise to meet this challenge at all. I think it’s an understatement to say that none of these challenges I’ve just gone through are easy. Obviously, if they were, they would have been solved some time ago. Although in today’s political world, not even that is a guarantee. But the United States takes these issues on because I think we are moved more by our vision of what is possible than by the pessimism of naysayers.
We’ve had a vision for a better world – for greater peace, for greater prosperity, for a greater future for the planet. That doesn’t mean we’re going to succeed every time or that we can solve every problem in our time. But let me tell you something for certain, that is not an excuse for letting whole states fail, for letting peace pass us by, for letting economic opportunity elude us, or letting our environment fall into further disrepair.
So I will be on this plane a few hours from now. And this weekend, I’ll be in Vietnam for the first time since I think I was there with President Clinton back in around 2000 or so. And in the years after we returned from our combat tours, I will tell you, my friends and I often dreamed of a day when someone would say the word “Vietnam,” and we would think of the country, not a war. I believe that day is here. It’s proof that as painful as the past can be, we can still believe in the possibility of change. Through the hard work of diplomacy, history’s enemies can become partners for a new day. I remind our friends in the West Bank of that every day when I talk to them. In 1967, Jordanians and Israelis were shooting at each other, right across the line from the Old City to the King David Hotel. Today, they are fast, firm partners working together for peace. The challenges now can become opportunities, I believe, for a new age.
We’re not unrealistic about the road ahead of us. We know that the solutions that may or may not be possible are rarely perfect. But I’ll tell you, like all Americans, President Obama believes we can be the authors of our own future. We really can be, despite all the negativity and the conflict we see today in our politics. And as Mandela proved, though it may sometimes seem impossible, when we stay hopeful, when we stay persistent, when we stay true to our deepest values, when we are prepared to stand up and fill the vacuum or to lead, we can transform history. That’s what this is all about, and that’s what we have to go out and do.
Thank you very, very much. (Applause.)
Remarks at the Transformational Trends Strategic Forum
Remarks
John Kerry
Secretary of State
Four Seasons Hotel
Washington, DC
December 11, 2013
SECRETARY KERRY: Well, thank you, David, very, very much. Thank you, Foreign Policy Magazine. And thank you, all of you, for not singing. I really appreciate it. (Laughter.)
The – I understand that you’ve had a terrific session today talking about transformational trends with a lot of speakers. I guess Danny Russel was just here, who’s doing a superb job on Asia. And I have just come from the Hill, where I spent a good part of the afternoon with my former senator colleagues briefing them on this first-step agreement that we have secured with Iran and with P5+1. And I’ll say a few words about that in the course of this evening.
I also want to thank, recognize David McKean, who’s the State Department’s Director of Policy Planning. And his office is happily and proudly co-hosting today’s conference. We’re delighted with that. I’m looking over here, I see Ambassador David Thorne, who’s serving as the Counselor in the Department now. And Tom Friedman sitting there, and so I’ve got to be really careful with what I say tonight. (Laughter.)
Thank you very much for giving me an opportunity to talk to you. I have to tell you that at the frightening age of 70 you don’t get an AARP card, you don’t get a Medicare card, you don’t get anything, you don’t get many birthday cards either; you just get a little older. And my staff
asked me what I wanted for my birthday, and I said I want a trip around the world. They said, “Really? Another one?” (Laughter.)
The truth is I’m leaving shortly on another trip, ultimately heading for the next few days back to Vietnam, my first trip there as Secretary of State. But many, many trips, obviously, to try to lift the embargo, normalize relations, and begin the process of the transformation that we’re in today. So I’ll be proud to be back there and see the differences being made.
This conference is rightfully focused on transformation trends. And we do so, obviously, in a week where all the world is celebrating one of those really rare, truly transformational figures: Nelson Mandela. I had the privilege of attending the service, at least most of it, at the National Cathedral today.
Madiba left behind a lot of powerful lessons and a lot of profound words. But one observation of his that has always intrigued me is this: It always seems impossible until it is done. In many ways, his entire life journey seemed impossible. Mandela knew that nothing is impossible – but as President Obama said in Johannesburg just yesterday, “Nothing that he achieved was inevitable.” He didn’t know he would succeed, only that he had a responsibility to act. And he had a vision, a dream, whatever you want to call it. He knew that South Africa had to transform and that it needed agents of transformation.
I think President Obama and I both believe in agents of transformation. It takes leadership, and you have to understand that the greatest risk is not taking a risk at all. As we reflect on his life, we have to make sure that our own work summons his courage and summons his common sense.
Today, the greatest risk the United States faces not – doesn’t come from a rising rival, but it comes from dangers that arise in a world if we fail to lead. We risk creating a vacuum that, believe me, would be all too quickly filled by those with values very much different from our own – by nihilists eager to destroy, who have proven that that is their goal, without any slightest interest or stated intent in providing health care, building schools, developing energy, establishing trade, creating opportunity, expanding rights, or even most importantly perhaps, pursuing peace and stability.
The United States, without a statement of arrogance or chauvinism, still remains the indispensable nation. Why? Because we have an unparalleled ability to transform things and places, people, and the world by convening allies and adversaries alike around a set of values and around a set of principles. And after a decade of war, it has never been more clear that diplomacy can be the transformational tool that shapes the world according to our values.
Now this doesn’t mean – does not mean, I want to emphasize – that America must be the world’s parent or the world’s policeman, not at all. That’s not what the world wants from us, nor is it what we want for the world. The hard work of diplomacy and our hopes for the world have to be informed by humility. We can’t do it alone.
But the truth is America has a singular ability to be able to articulate a vision, to lay down a set of principles that we have actually lived by and practiced and made a difference by in order to galvanize the global community. History is what documents what I just said. History shows that when America musters the courage to tackle the toughest challenges, we do and can inspire our partners around the world to do the same – and to do what seems, at first, to be the impossible.
Last week, which ended with the world learning of Mandela’s death, it began with the world celebrating the progress that we’ve made on another great struggle of the 20th century: the scourge of HIV and AIDS.
Thirty years ago, as the world slowly became aware of a disease that few even understood, and even fewer believed anything could be done about it, and many feared even talking about it. People were uncomfortable with that concept. When I arrived in the Senate, I saw this discomfort that people had with even the discussion. And as recently as 10 years ago, experts said that the crisis had reached a point of no return, and AIDS was considered an automatic death sentence in much of the world.
But the United States didn’t let this pessimism deter us from bringing the world together and using our collective power to establish programs, like PEPFAR, that are turning the trend around and preventing an even greater catastrophe. I know something about that because in 1991, I think it was, Bill Frist as the Majority Leader and I joined forces in bipartisan fashion to serve as co-chairs of the CSIS Task Force on AIDS. And out of that grew an initiative that we put together, which we even got Jesse Helms to support and pass unanimously in the United States Senate. That became PEPFAR.
And since its peak in the last decade, AIDS-related deaths have declined by a third. New HIV infections have declined by 40 percent in Sub-Saharan Africa – the region that’s most heavily affected. And the number of people receiving life-saving HIV treatments has increased 40-fold. The goal that President Obama set of an AIDS-free generation – one you could barely dream about when the program began – is actually within reach today.
This is the combination of hope and hard work that only the United States can inspire to rally the world to take on that kind of complex challenge. That’s an example, and that is the spirit that guides American diplomacy, I believe, under President Obama. That’s the charge that he gave me nearly a year ago now – a little shy, a couple of months. And that vision can prove transformational in the days to come as we confront challenges of peace and prosperity, and even the very future of our planet. And that is not an exaggeration or excessively stated proposition.
There’s a reason that I believe diplomacy should always be our first resort. As many of you know, or most of you know, I’ve worn the uniform of my country and I have seen war. I know what it’s like to be shot at and I know what it’s like to lose friends in that process. And I can tell you point blank that when you have been there, done that, it sharpens your focus on the responsibility of leaders to avoid that if possible – not because you’re a pacifist but because you know the consequences. War is the failure of diplomacy.
In the first decade of this century, we all saw what happens when America favors the force of arms over the force of our diplomacy. In three of today’s most pressing challenges – in Iran, Syria, and the Israeli-Palestinian conflict – we saw the dangerous direction that events were heading. But with the careful balance of strength and diplomacy, we have now worked hard to transform those trends to shape a more secure future for our friends and allies, and deliver a hard-won and sustainable peace.
In Iran, the regime was spinning centrifuges faster and faster. In 2003, there were 164 centrifuges. Now, there are 19,000. There was a clear direction in which that program was moving, and Iran was clearly marching closer and closer to a nuclear bomb. The Syrian regime used chemical weapons against its own people, started a civil war that has taken more than a hundred thousand lives, and continues to use starvation as a weapon of war. Right next door, we see a demographic ticking time bomb testing whether Israel can remain both a Jewish and a democratic state. And we see a Palestinian people frustrated in their hopes of realizing their legitimate aspirations of economic opportunity and sovereignty.
In each of these cases, pundits and armchair isolationists said addressing the problem would be too hard, or that we were too late, or that it wasn’t our place, or that diplomacy wasn’t up to the task. But today, we see that American diplomacy, often backed by the strength of our military, in fact gives us the best chance to deliver a more secure future for our friends and allies, one where the people of the region are more free to pursue their common aspirations.
From day one, President Obama realized the danger a nuclear Iran would pose to our national security interests in the region, including our ally Israel. The President has kept his personal commitment to assuring that Iran does not obtain a nuclear weapon and will not obtain a weapon by keeping the credible threat of force on the table while using all of the tools of American diplomacy to pursue a peaceful resolution.
As only the President of the United States can, President Obama brought the world together to impose the most biting sanctions regime in history. Thanks to the President’s leadership, Iran did come to the table. In fact, you can, beyond any reasonable doubt, carry the argument that the Iranian election was profoundly affected by the will of the people to get out from under those sanctions, and that they sent a message directly contrary to what was the original intent of the regime and the people they were backing for president, that they wanted to move in a new direction. And Iran came to the table, and we are negotiating from a position of strength.
So when those same pessimists said that we should accept or contain a nuclear armed Iran, the President actually saw a different future. He knew that if the United States didn’t test Iran, the region would only grow more dangerous, that if Iran indeed was merely contained, or that somehow we threw up our hands and said this can’t be achieved, there would absolutely be to a certainty an arms race in the Gulf states and in the region.
Today, to the contrary, it is clear that diplomacy provides the best path to neutralize this threat. And I am convinced beyond any doubt that our friends in the region absolutely, positively became safer the moment this agreement was inked. And the moment it is implemented, they will truly be able to measure additional safety. And that is because we have ensured, providing the implementation provides – proceeds forward, that Iran’s program will not advance while we negotiate.
As we negotiate, Iran will forfeit its entire stock of 20 percent enriched uranium, and that – that puts it a short step away from weapons grade uranium and bomb-making material. As we negotiate, Iran will be unable to grow its stock of 3.5 percent uranium, or to stockpile centrifuges, or to increase the number of centrifuges that were in operation. As we negotiate, international inspectors will have unprecedented access to Iran’s key facilities, including daily access – which we don’t have today – to Fordow, daily access – which we don’t have today – to Natanz, and regular access to Arak, the heavy water reactor. As we negotiate, construction on the – as we negotiate, during the reprocessing facility at Arak, which could have provided an alternative path to a bomb because the plutonium – that now will not be able to move forward. All components that are not yet installed will not be able to be installed. No fuel rods will be transferred. No fuel will be transferred. No additional fuel will be able to be tested. The nuclear component of that facility will stop dead in its tracks where it is today.
As we negotiate, our Treasury Department will strongly enforce core sanctions architecture, which has deprived Iran of nearly 80 billion to 100 billion in oil revenues since 2012 as well as access to the international banking system. None of that architecture is undone in this first step agreement. It stays in place. As we negotiate, we will continue to be clear – absolutely clear – about the price of noncompliance, or of failing to satisfy the international concerns about the nuclear program in Iran. And guess what? If, in the course of this, Iran does not live up to those agreements, or if in the course of this we have failed to be able to reach agreement, we will immediately have the ability to ratchet up new sanctions and take whatever further steps are needed to prevent Iran from acquiring a nuclear weapon. Nothing has been taken off the table.
The first step that the P5+1 achieved in Geneva, I will tell you, was far from easy. And our task is far from complete. And none of us approach this on the basis somehow of existing trust. It’s not based on trust. Reagan said trust but verify. We say test but verify – test and verify. And that is exactly what we’re setting out to do. And we know the next six months are going to be even harder than this first step, because it’s going to take really tough decisions by Iran in order to absolutely live up to the notion that they’re prepared to prove that their program can only be peaceful. And when we say that, we know there are capacities that have already been built in and that are already part of their capacity today, but what we seek to do in this is expand every conceivable notion of breakout possibility from months to years. That makes Israel and the region and the world safer.
Now, it’s going to take strong military consultations with our partners, including Israel. Yossi Cohen, the national security advisor to Prime Minister Netanyahu, is here in Washington this week, already consulting with us. And we will consult with all of our partners – our European partners, Russia, China, our P5+1 partners, as well as other countries in the world – in order to focus in on what we must achieve at the negotiating table.
We still are convinced – we know that no deal, in the end, is better than a bad deal. A bad deal can lull you into some belief that you achieved something you haven’t while they have a loophole that allows them to do what you don’t want them to do. I assure you every expert in the world will be looking at this. Obviously, our friends and allies will, and we will, with as careful an eye as is humanly possible to make certain that if Iran has this program going forward, it is indeed the peaceful program, and can only be the peaceful program, that they profess it to be.
Now, there is another place in the region where strong, smart diplomacy backed by the threat of force has created a better path. As in Iran, the historic agreement to rid Syria of its chemical weapons was only a first step. But guess what? Against all the naysayers, against all the cynics, against the people who believed that dropping some bombs over the course of whatever period of time was somehow going to – which were calculated to degrade and deter their program, or the use of their program, that somehow that was more intelligent than getting all of the weapons out of the country and destroyed. That’s a logic that I find hard to follow.
What we proved was that diplomacy can be so powerful that it can diffuse the worst weapons of war. And while the President was prepared to use military force and made his decision known to the world, we also knew that that alone would not solve the problem. Force could deter and degrade Syria’s chemical weapons, but we needed to destroy it. That was our goal. And it’s because the President chose the path of diplomacy that today we are on our way to actually completing an historic first time ever complete removal of all weapons of mass destruction of a certain kind from a country. We’re going to rid this region of these heinous weapons.
But we also know that to bring an end to the humanitarian crisis, and to build a foundation for a future in which all Syrians have a say, and we end this conflict, diplomacy is going to have to do a lot more. We’ve also been pushing for Geneva II, which is to implement Geneva I, which is a transitional government, in order to try to bring that stability. And we’re finally at a point where, despite difficulties, despite delays, despite all the hurdles, that conference will take place in January.
There has to be a legitimate transition to a new government. And I haven’t heard anybody – not Putin, not Foreign Minister Lavrov, not any of our fellow foreign ministers in the region – say to us that they believe somehow there is a military solution here. Everybody has adopted and stated – the London 11 – there has to be a political solution. Well, how do you arrive at a political decision? You’ve got to negotiate. You’ve got to have diplomacy.
We knew that if the United States didn’t engage, the dangers in that region would only grow, disintegrate potentially into a complete and total breakup of the state of Syria, compartmentalization, the enclave creation of a failed state. So only as our country can do, we are working to bring opposing forces and international partners to the table. Now, I know again this is not going to be easy, but that doesn’t absolve us of our responsibility. It doesn’t mean you don’t try.
And of course, nowhere in the Middle East has peace eluded diplomats longer than in the sliver of land between the Mediterranean Sea and the Jordan River. I have been focused on that issue for a good 30 years. I’ve heard all the arguments from all the pundits on all sides – the conflict is too frozen, it’s too complicated, they don’t trust each other enough, there’s no way possible that there’s ingredients to try to make peace, it’s a fool’s errand to believe that the future can be better than the past.
Well, President Obama and I reject that cynicism. Countless prime ministers and presidents over the years have made it clear what a two-state solution looks like. That’s not the question. The question is how to get there. Today’s leaders – on both sides – have already made some tough decisions, tough choices, courageous choices, to try to take steps to move in the right direction.
President Obama is committed to this process because he understands that the possibilities of peace are dramatic and worth fighting for: a secure, Jewish, and democratic Israel living alongside a sovereign and independent Palestinian state; an Israel that enjoys peace and normalized relations with 22 Arab nations. That’s what waiting if you can implement a peace, because that’s what’s been promised in the Arab Peace Initiative, which has now been updated to include the possibility of swaps along ‘67 lines, as long as Israel is recognized – and also with 35 Muslim nations – 57 nations in all in one fell swoop.
Imagine what peace would do for trade and for tourism, what it would mean for developing technology and talent, for future generations of Israeli and Palestinian children. Imagine the possibilities of a warm peace with Egypt and other countries, where you can export the technology, help Egypt deal with a $13 billion agriculture deficit, energy deficit. The possibilities are infinite.
And that’s why exercising leadership that comes from our partnerships in the world is so critical, and that’s why we work to bring the parties back to the table. One of the reasons I’m late is I was just on the phone talking to Prime Minister Netanyahu. And I’m leaving tonight, shortly after this speech, to head back over there and then onto Vietnam and the Philippines. And we are going to continue this conversation on both sides, clear-eyed about the challenges but knowing that the status quo is unsustainable.
What you see today, this complacency, this sense of affluence and prosperity, and the lack of the violence that used to characterize it because of the nature of the fenced wall, then the – and the commitment of the Palestinians to a track of nonviolence has changed life. But it’s not going to change it forever if you don’t resolve the final status issues. The status quo is unsustainable, and there is no realistic alternative but two states for two peoples.
If diplomacy, backed by the credible threat of military force, can erase the menace of chemical weapons in Syria, if it can ultimately prevent the menace of nuclear weapons in Iran, if it can pave the way to peace and security between Israelis and Palestinians, if we can fully address these threats near and far without going to war, the region and the world will be far better off, and you, we, together will invite a true transformation in the life of that region. And the United States will gain because of that.
In the 21st century, American diplomacy, however, is not just defined by addressing conflict. The global economy is more interconnected than ever before. And I said to my – at my confirmation hearing that, in my judgment, in the modern-day world of diplomacy, foreign policy, economic policy and foreign policy are really part and parcel of the same thing; they’re one and the same.
So we know that the hard work of diplomacy demands creating shared prosperity. If you don’t deal with a problem of whole countries in large swaths of the world where 60 and 65 percent of the population are under the age of 25 or 30 at least, and 50 percent are under the age of 21, and 40 percent are under the age of 18, and they have no hope for education or jobs or a future, what do you think is going to supplant that vacuum? What’s going to fill it?
At the core of President Obama’s strategic rebalance to Asia is this whole notion of increased prosperity, of shared prosperity. And after the great recession, we saw where the trends were heading. America’s debts were too high, global demand for our products was too low. We all heard many in Congress argue that we should just turn inward, rebuilding at home instead of promoting better economic partnerships abroad.
President Obama always understood that this was a false choice. He understood that building bridges to opportunity requires breaking down barriers to competition and opening up new markets for our products abroad.
And thanks to the President’s leadership, we have signed new trade agreements with Korea, Columbia, Panama, and today we are engaged in two of the largest high-standard trade negotiations in history. The Trans-Pacific Partnership will integrate the most dynamic economic region of the world, comprising 40 percent of global economic activity. And at the same time, the United States is leading the charge to forge the Transatlantic Trade and Investment Partnership, which represents another 40 percent of the global economy.
President Obama understood that if America doesn’t speak up for high standards when it comes to labor and trade, globalization will force a race to the bottom rather than a race to the top. And as the largest market on earth, only we have the power to set that standard. We also have a responsibility to ensure that globalization is a force that affirms human dignity, ensuring strong protections for workers and consumers, and especially nowadays the environment.
We must also be mindful, as I said a moment ago, of this challenge of young people. What happened in Tunisia – it was started by a fruit vendor. It wasn’t religious motivation. It wasn’t some kind of ideological extremism. It was a human being, a person who aspired to a life where he could sell his wares without corruption, without being slapped around by a police officer. And he was so frustrated and so despairing that he took his own life in self-immolation. And that ignited a revolution that got rid of a dictator of 30 years of so.
In Tahrir Square, it wasn’t an ounce of Muslim Brotherhood. It wasn’t a religious movement. It was young people with their cell phones, smart phones, and texting and googling and talking to each other and trying to have a change because they knew they didn’t get the education they wanted, didn’t have the jobs they wanted.
And so it was incidentally in Syria, too. That began in the same form and was met with bullets and violence and has now translated into the civil war that it is, and I might add with huge extremist overtures that are threatening in many different ways.
So if we don’t create opportunity, we have multiple examples of how we create instability and how we create the problem of these conflicts that confound us. As more and more young people join the labor market, the world is going to need about a half billion new jobs by 2030.
That’s why it is hugely in the United States’ interest to support young innovators through programs like President Obama’s Global Entrepreneurship Summit, which I had the privilege of speaking at in Malaysia recently. It’s why we invest in the flagship Fulbright program and efforts like 100,000 Strong, which spur greater educational exchange. We’re trying to bring 100,000 young people from Latin America to America and send people from here to there. It’s why in every mission around the world diplomats are forging deeper and more durable links to young people. And through initiatives like SelectUSA, our ambassadors and Commerce Department are working with businesses around the world to create jobs for American workers.
In a time of tighter and tighter budgets, I’ve heard some people try to argue that these somehow are luxuries that we can’t afford. I could not disagree more, and I hope you join me in that. These are not luxuries. This is not something we do because it’s out of the goodness of our heart and it’s altruistic. These are investments that pay off in the opportunities that they create, in the far more dangerous alternatives that they avoid. A good job and a hopeful future is the best antidote to extremism.
And we’ve seen the transformation from aid to trade actually work. Our nation has had a long tradition of helping other nations stand on their own two feet. We did it brilliantly after World War II, George Marshall’s great plan, Harry Truman, which brought Europe back, developed democracies, wrote constitutions, and created wealth. We also know that this is the way to create prosperity and security here at home. Guess what? Today, 11 out of 15 of our biggest trading partners are former recipients of American foreign aid. One of them, South Korea, graduated not so long ago from recipient of aid to donor to other countries. So I just say to you, think of the opportunities awaiting us in Africa, home to seven of the 10 fastest-growing economies in the world. There is no long-term challenge more worthy of our diplomatic energy, however. I can say a lot more about this, incidentally because – I don’t have time tonight, but there’s just so much staring us in the face in terms of these opportunities.
And by the way, those of you who travel have experienced firsthand the infrastructure gap that is growing between the United States and lots of other countries. The quality of airports, quality of train stations, quality of tracks, quality of available infrastructure, the fact that America is a great big gaping hole right in the center of our country where we don’t have a grid, we don’t connect our energy. You could produce clean energy in the four corners down around Colorado, Arizona, New Mexico, and so forth, but we can’t send it anywhere. We have an east coast grid, a west coast grid, a little line up in the north of America, and down south we got the Texas grid all by itself. Huge hole in the middle. So if you produce clean energy in Minnesota by wind power, you can’t send it somewhere. If you produce clean energy in the south by solar power, and you can’t send it to the north when they need it. This doesn’t make sense. And guess what? There’s a huge amount of private capital in the world waiting to invest in revenue-producing infrastructure projects, and we’re not even in the ballgame.
In the end, there’s no more long-term challenge more worthy of our diplomatic energy than the one that might just trump all the others. And it’s not about territory, it’s not about security, it’s not about religion. It is the threat of global climate change. I just read the latest report from the United Nations Intergovernmental Panel on Climate Change, who Foreign Policy Magazine had the good sense to recognize as one of this year’s 100 global thinkers. If we continue down the path that we’re on today, scientists predict – not politicians, not radio talk show hosts – scientists, people we once most respected in our society for their knowledge and their body of work and their evidentiary process and their pedagogy for how they produce what they produce – well, they predict today that by the end of this century, the sea will have risen on average by a full meter. I know a meter doesn’t sound like a lot to some people, but if you put it into reality, it’s enough to put large swaths of Miami, Calcutta, Dhaka, Tokyo, and a host of other major cities under water. That would displace millions of people, threaten billions in economic activity and infrastructure. It would also mean longer, more unpredictable monsoon seasons and more extreme weather events. We’ll see more frequent and more intense droughts, which means poor crop yields, ultimately higher food prices, and challenges food security in a world that already has food security challenges.
The scientific consensus has been clear, not for this one year, but for years and years. I remember the first hearings we held in the United States Senate. Al Gore, Tim Wirth, myself, others, we had a series of hearings. It’s been clear for years since then that this is growing in its impact and reality. And it grows only more unanimous with each study – thousands of studies, peer reviewed. Some minimal number of paid for, quote, “peer reviewed” to the contrary. Ninety-seven percent of climate experts on this planet agree that humans are creating climate change, global warming. Climate change is an economic threat. It’s a security threat. You will have climate refugees in the world, you will have climate conflicts in the world as people fight for water, where people fight for food, and they’re dislocated.
A handful of world leaders say we have reached the point of no return. And some members of Congress nevertheless still claim that this is a hoax. Even some of those who believe the science say it’s not America’s responsibility to help lead the charge. Well, we’ve heard this pessimism before. But just as the United States rallied the world to take on the scourge of AIDS, President Obama has imagined a different future, and with his Climate Action Plan is taking as much executive action as he can to try to make a different choice.
The United States has a fundamental responsibility to help address this global crisis, and we are in a unique position to do so in important ways. And our responsibility comes from a simple fact: The United States and China alone represent not quite 50 percent of all the climate – of all of the greenhouse gasses in the world. And if you put 17 to 20 nations together, they represent what is happening to the rest of the world, well over 90-plus percent. So we need to constructively engage in tough negotiations with all the major countries of the world to forge an ambitious and sustainable climate agreement.
And second, we have to help countries coming onto the grid to do so in a way that doesn’t buy into the same old mistakes and the same old process of the past. Right now, we’re seeing this plethora of gas wind up lowering the price of coal, and whole countries are turning accordingly, just driven by price, to go buy the coal and burn it. Nothing could be more damaging to our efforts to deal with climate change. We cannot look at climate change only as a burden. It actually is an incredible opportunity. The energy market that is staring us in the face, my friends, is a $6 trillion market. And it’s going to grow over the next several decades to include about 6 billion to 9 billion users.
Let me put that in perspective. In the 1990s, when every single quintile of American income earner saw their income go up, that was a $1 trillion market with 1 billion users, the high tech market. We’re looking at a $6 trillion market today with 4- to 5 billion users, going up to 6 to 9, because that’s what's going to happen to the population of the planet. And we have technology. We could be leading the charge in this if we were willing to make some tough decisions.
And so listening to the cynics who see this problem as too large, or our solutions as too late, would be absolutely the greatest missed opportunity in the world. As the most innovative economy in the world, what the United States decides to do will determine not just whether the sea is going to continue to rise, but whether the world will rise to meet this challenge at all. I think it’s an understatement to say that none of these challenges I’ve just gone through are easy. Obviously, if they were, they would have been solved some time ago. Although in today’s political world, not even that is a guarantee. But the United States takes these issues on because I think we are moved more by our vision of what is possible than by the pessimism of naysayers.
We’ve had a vision for a better world – for greater peace, for greater prosperity, for a greater future for the planet. That doesn’t mean we’re going to succeed every time or that we can solve every problem in our time. But let me tell you something for certain, that is not an excuse for letting whole states fail, for letting peace pass us by, for letting economic opportunity elude us, or letting our environment fall into further disrepair.
So I will be on this plane a few hours from now. And this weekend, I’ll be in Vietnam for the first time since I think I was there with President Clinton back in around 2000 or so. And in the years after we returned from our combat tours, I will tell you, my friends and I often dreamed of a day when someone would say the word “Vietnam,” and we would think of the country, not a war. I believe that day is here. It’s proof that as painful as the past can be, we can still believe in the possibility of change. Through the hard work of diplomacy, history’s enemies can become partners for a new day. I remind our friends in the West Bank of that every day when I talk to them. In 1967, Jordanians and Israelis were shooting at each other, right across the line from the Old City to the King David Hotel. Today, they are fast, firm partners working together for peace. The challenges now can become opportunities, I believe, for a new age.
We’re not unrealistic about the road ahead of us. We know that the solutions that may or may not be possible are rarely perfect. But I’ll tell you, like all Americans, President Obama believes we can be the authors of our own future. We really can be, despite all the negativity and the conflict we see today in our politics. And as Mandela proved, though it may sometimes seem impossible, when we stay hopeful, when we stay persistent, when we stay true to our deepest values, when we are prepared to stand up and fill the vacuum or to lead, we can transform history. That’s what this is all about, and that’s what we have to go out and do.
Thank you very, very much. (Applause.)
FORMER EXECUTIVE SENTENCED FOR ROLE IN SCHEME TO DEFRAUD WELLS FARGO BANK
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, December 11, 2013
Former Chief Executive of Mortgage Servicing Company Sentenced for Scheme to Withhold Funds from Wells Fargo Bank
Earl Gross, 74, of Las Vegas, the former President and Chief Executive Officer of U.S. Mortgage, a loan servicing company, was sentenced to serve 18 months in prison for his role in an $8 million scheme to defraud Wells Fargo Bank.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement after the sentence was imposed by U.S. District Court Judge Andrew P. Gordon of the District of Nevada.
On June 11, 2013, Gross pleaded guilty to one count of bank fraud. In addition to his prison term, Gross was ordered to forfeit $8,440,439 in fraudulent proceeds.
According to plea documents, Wells Fargo Bank contracted with U.S. Mortgage to service pools of residential mortgage loans held by investors in mortgage backed securities. Under the agreement, Gross and U.S. Mortgage were obligated to collect from the borrowers the monthly payments that the borrowers made toward their mortgage obligations and forward these proceeds to Wells Fargo Bank. In the event that a borrower paid off the loan – usually by selling the mortgaged property – U.S. Mortgage was obligated to remit to Wells Fargo Bank the full payoff amount. U.S. Mortgage agreed to provide Wells Fargo Bank with monthly reports that described the status of the loans, and it received servicing fees for each loan it serviced.
According to the indictment, from 2004 to 2009, Mr. Gross and U.S. Mortgage withheld over $8 million in loan payoffs that were due Wells Fargo Bank by submitting to the bank reports stating that numerous borrowers were continuing to make monthly payments when in fact they had paid off the loans in full. Rather than remit the full payoff amount to Wells Fargo Bank, Gross and U.S. Mortgage forwarded only what the borrowers’ monthly payments would have been and retained the difference in U.S. Mortgage’s bank account. To deceive Wells Fargo Bank about the status of paid-off loans, Gross and U.S. Mortgage created fake amortization schedules indicating that borrowers who had sold and paid off homes were continuing to make monthly payments. In addition to withholding loan payoff amounts to which he was not entitled, Gross charged Wells Fargo Bank fees to service mortgage loans that had been paid off.
The case was investigated by the FBI and prosecuted by Deputy Chief Charles La Bella and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, with assistance from Roberto Iraola of the Office of International Affairs and the United States Attorney’s Office for the District of Nevada.
Today’s guilty plea was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
Wednesday, December 11, 2013
Former Chief Executive of Mortgage Servicing Company Sentenced for Scheme to Withhold Funds from Wells Fargo Bank
Earl Gross, 74, of Las Vegas, the former President and Chief Executive Officer of U.S. Mortgage, a loan servicing company, was sentenced to serve 18 months in prison for his role in an $8 million scheme to defraud Wells Fargo Bank.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement after the sentence was imposed by U.S. District Court Judge Andrew P. Gordon of the District of Nevada.
On June 11, 2013, Gross pleaded guilty to one count of bank fraud. In addition to his prison term, Gross was ordered to forfeit $8,440,439 in fraudulent proceeds.
According to plea documents, Wells Fargo Bank contracted with U.S. Mortgage to service pools of residential mortgage loans held by investors in mortgage backed securities. Under the agreement, Gross and U.S. Mortgage were obligated to collect from the borrowers the monthly payments that the borrowers made toward their mortgage obligations and forward these proceeds to Wells Fargo Bank. In the event that a borrower paid off the loan – usually by selling the mortgaged property – U.S. Mortgage was obligated to remit to Wells Fargo Bank the full payoff amount. U.S. Mortgage agreed to provide Wells Fargo Bank with monthly reports that described the status of the loans, and it received servicing fees for each loan it serviced.
According to the indictment, from 2004 to 2009, Mr. Gross and U.S. Mortgage withheld over $8 million in loan payoffs that were due Wells Fargo Bank by submitting to the bank reports stating that numerous borrowers were continuing to make monthly payments when in fact they had paid off the loans in full. Rather than remit the full payoff amount to Wells Fargo Bank, Gross and U.S. Mortgage forwarded only what the borrowers’ monthly payments would have been and retained the difference in U.S. Mortgage’s bank account. To deceive Wells Fargo Bank about the status of paid-off loans, Gross and U.S. Mortgage created fake amortization schedules indicating that borrowers who had sold and paid off homes were continuing to make monthly payments. In addition to withholding loan payoff amounts to which he was not entitled, Gross charged Wells Fargo Bank fees to service mortgage loans that had been paid off.
The case was investigated by the FBI and prosecuted by Deputy Chief Charles La Bella and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, with assistance from Roberto Iraola of the Office of International Affairs and the United States Attorney’s Office for the District of Nevada.
Today’s guilty plea was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
A LOOK AT YELLOWKNIFE BAY ON MARS
Yellowknife Bay Formation on Mars
This mosaic of images from Curiosity's Mast Camera (Mastcam) shows geological members of the Yellowknife Bay formation. The scene has the Sheepbed mudstone in the foreground and rises up through Gillespie Lake member to the Point Lake outcrop. These rocks record superimposed ancient lake and stream deposits that offered past environmental conditions favorable for microbial life. Rocks here were exposed about 70 million years ago by removal of overlying layers due to erosion by the wind.
The scene is a portion of a 111-image mosaic acquired during the 137th Martian day, or sol, of Curiosity's work on Mars (Dec. 24, 2012). The foothills of Mount Sharp are visible in the distance, upper left, southwest of camera position. Image Credit: NASA-JPL-Caltech-MSSS
Thursday, December 12, 2013
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING DECEMBER 7, 2013
SEASONALLY ADJUSTED DATA
In the week ending December 7, the advance figure for seasonally adjusted initial claims was 368,000, an increase of 68,000 from the previous week's revised figure of 300,000. The 4-week moving average was 328,750, an increase of 6,000 from the previous week's revised average of 322,750.
The advance seasonally adjusted insured unemployment rate was 2.1 percent for the week ending November 30, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 30 was 2,791,000, an increase of 40,000 from the preceding week's revised level of 2,751,000. The 4-week moving average was 2,793,500, a decrease of 4,750 from the preceding week's revised average of 2,798,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 461,422 in the week ending December 7, an increase of 146,241 from the previous week. There were 429,188 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.3 percent during the week ending November 30, an increase of 0.4 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,961,497, an increase of 474,856 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,174,709.
The total number of people claiming benefits in all programs for the week ending November 23 was 3,800,667, a decrease of 296,234 from the previous week. There were 5,641,066 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending November 23.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,493 in the week ending November 30, a decrease of 907 from the prior week. There were 1,373 initial claims filed by newly discharged veterans, a decrease of 776 from the preceding week.
There were 18,209 former Federal civilian employees claiming UI benefits for the week ending November 23, a decrease of 2,200 from the previous week. Newly discharged veterans claiming benefits totaled 29,041, a decrease of 2,989 from the prior week.
States reported 1,248,932 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending November 23, a decrease of 101,672 from the prior week. There were 2,194,253 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending November 30 were in Alaska (5.0), Puerto Rico (3.6), New Jersey (3.1), Connecticut (2.8), Pennsylvania (2.7), Virgin Islands (2.7), Montana (2.6), Oregon (2.6), Nevada (2.5), Rhode Island (2.5), California (2.4), and Illinois (2.4).
The largest increases in initial claims for the week ending November 30 were in Wisconsin (+4,420), Ohio (+2,597), Kentucky (+1,538), Massachusetts (+1,129), and New Jersey (+1,124), while the largest decreases were in California (-19,920), Texas (-7,284), Florida (-5,400), Pennsylvania (-5,145), and Nevada (-3,295).
In the week ending December 7, the advance figure for seasonally adjusted initial claims was 368,000, an increase of 68,000 from the previous week's revised figure of 300,000. The 4-week moving average was 328,750, an increase of 6,000 from the previous week's revised average of 322,750.
The advance seasonally adjusted insured unemployment rate was 2.1 percent for the week ending November 30, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 30 was 2,791,000, an increase of 40,000 from the preceding week's revised level of 2,751,000. The 4-week moving average was 2,793,500, a decrease of 4,750 from the preceding week's revised average of 2,798,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 461,422 in the week ending December 7, an increase of 146,241 from the previous week. There were 429,188 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.3 percent during the week ending November 30, an increase of 0.4 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,961,497, an increase of 474,856 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,174,709.
The total number of people claiming benefits in all programs for the week ending November 23 was 3,800,667, a decrease of 296,234 from the previous week. There were 5,641,066 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending November 23.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,493 in the week ending November 30, a decrease of 907 from the prior week. There were 1,373 initial claims filed by newly discharged veterans, a decrease of 776 from the preceding week.
There were 18,209 former Federal civilian employees claiming UI benefits for the week ending November 23, a decrease of 2,200 from the previous week. Newly discharged veterans claiming benefits totaled 29,041, a decrease of 2,989 from the prior week.
States reported 1,248,932 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending November 23, a decrease of 101,672 from the prior week. There were 2,194,253 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending November 30 were in Alaska (5.0), Puerto Rico (3.6), New Jersey (3.1), Connecticut (2.8), Pennsylvania (2.7), Virgin Islands (2.7), Montana (2.6), Oregon (2.6), Nevada (2.5), Rhode Island (2.5), California (2.4), and Illinois (2.4).
The largest increases in initial claims for the week ending November 30 were in Wisconsin (+4,420), Ohio (+2,597), Kentucky (+1,538), Massachusetts (+1,129), and New Jersey (+1,124), while the largest decreases were in California (-19,920), Texas (-7,284), Florida (-5,400), Pennsylvania (-5,145), and Nevada (-3,295).
SECRETARY OF DEFENSE HAGEL'S STATEMENT ON BUDGET AGREEMENT
FROM: U.S. DEFENSE DEPARTMENT
Statement by Secretary of Defense Chuck Hagel on Budget Agreement
Last night, I spoke with House Budget Committee Chairman Paul Ryan and Senate Budget Committee Chairman Patty Murray to thank them for their work to achieve a bipartisan budget agreement. The deal they reached reduces the impact of sequestration cuts and provides the Department of Defense with greater budget certainty, which is important for us to be able to plan effectively. While this agreement doesn't solve every budget problem facing DoD, it will help address our military readiness challenge by restoring funding for training and procurement - especially in fiscal year 2014.
The Department of Defense has been warning about the impact of sequestration's steep, deep, and abrupt cuts for months, and I'm pleased that Congress has been willing to work in a bipartisan manner to limit its worst impacts. I urge Congress to promptly act on a balanced agreement.
Tough decisions will still be necessary going forward in order to achieve the right balance in military capacity, capabilities, and readiness. The Department of Defense will need more flexibility, and we will continue to look to Congress as a vital partner in our efforts to realign priorities and address needed reforms in areas like military compensation in order to maximize our military's fighting strength.
Statement by Secretary of Defense Chuck Hagel on Budget Agreement
Last night, I spoke with House Budget Committee Chairman Paul Ryan and Senate Budget Committee Chairman Patty Murray to thank them for their work to achieve a bipartisan budget agreement. The deal they reached reduces the impact of sequestration cuts and provides the Department of Defense with greater budget certainty, which is important for us to be able to plan effectively. While this agreement doesn't solve every budget problem facing DoD, it will help address our military readiness challenge by restoring funding for training and procurement - especially in fiscal year 2014.
The Department of Defense has been warning about the impact of sequestration's steep, deep, and abrupt cuts for months, and I'm pleased that Congress has been willing to work in a bipartisan manner to limit its worst impacts. I urge Congress to promptly act on a balanced agreement.
Tough decisions will still be necessary going forward in order to achieve the right balance in military capacity, capabilities, and readiness. The Department of Defense will need more flexibility, and we will continue to look to Congress as a vital partner in our efforts to realign priorities and address needed reforms in areas like military compensation in order to maximize our military's fighting strength.
U.S. DEFENSE DEPARTMENT CONTRACTS FOR DECEMBER 12, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
NAVY
The Boeing Co., St. Louis, Mo., is being awarded an indefinite-delivery/indefinite-quantity contract with an estimated ceiling-price of $872,766,714 for system upgrades for F/A-18 A/B, C/D, E/F and EA-18G aircraft for the U.S. Navy and the governments of Australia, Finland, Switzerland, Kuwait, Malaysia, and Canada. This contract provides for deliverables and services based on System Configuration Set life cycle phases for the aircraft. Work will be performed in St. Louis, Mo. (95 percent) and China Lake, Calif. (5 percent), and is expected to be completed in December 2018. Fiscal 2014 research, development, test and evaluation, Navy contract funds in the amount of $100,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to the FAR 6.302-1. This contract combines purchases for the U.S. Navy ($802,945,377; 92 percent) and the governments of Australia ($29,674,068; 3
40 percent); Finland ($21,819,168; 2.50 percent); Switzerland ($6,982,134; .80 percent); Kuwait ($4,363,834; .50 percent); Malaysia ($4,363,833; .50 percent); and Canada ($2,618,300; .30 percent). The Naval Air Warfare Center Weapons Division, China Lake, Calif., is the contracting activity (N68936-14-D-0008).
Northrop Grumman Systems Corp., Sunnyvale, Calif., was awarded an $112,926,348 firm-fixed-price, cost-plus-incentive-fee, cost-plus-fixed-fee contract, for Trident II (D5) Underwater Launcher System and Advanced Launcher Development Program Support. This contract provides for ongoing support for the TRIDENT II (D-5) deployed SSBN and the SSGN underwater launcher subsystem, Engineering Refueling Overhaul shipyard support, spares procurement, United States (U.S.) and United Kingdom (U.K.) launcher trainer support, Vertical Support Group E-mount and shim procurement, Nuclear Weapons Safety and Security Review, TRIDENT II (D-5) missile hoist overhaul, underwater launch technology support, U.S. and U.K. SSP Alterations and non-compliance report projects, gas generator refurbishment and case hardware production. It provides specialized technical support of TRIDENT II (D-5) missile tube closure production, technical engineering services, and tactical hardware production efforts for the New Strategic Arms Reduction Treaty. It provides technical engineering services to support the Advanced Launcher Development Program and the Common Missile Compartment Concept Development and Prototyping effort for the U.S. and U.K. The contractor shall be required to assess and analyze technologies and concepts to support the selection of a preferred system concept, which includes the identification of critical cost and risk impacts as a result of immature launcher technologies and/or immature requirements. The result of the effort will then advance and support the conduct of the technology development effort to support developing cost-effective launcher subsystem architecture for the Ohio-class Replacement Program. Work will be performed at Sunnyvale, Calif. (78 percent), Kings Bay, Ga. (7 percent), Bangor, Wash. (6 percent), St. Charles, Mo. (5 percent), Gardena, Calif. (2 percent), Camarillo, Calif. (1 percent), and Los Angeles, Calif. (1 percent), with an expected completion date of Sept. 30, 2018. The maximum dollar value, including the base period and one option year, is $220,288,791. Fiscal year 2014 operations and maintenance, Navy contract funds in the amount of $38,527,166; fiscal 2014 research, development, test and evaluation contract funds in the amount of $31,762,778; fiscal 2014 other procurement, Navy contract funds in the amount of $31,102,315; and fiscal 2014 United Kingdom contract funds in the amount of $11,534,089. Contract funds in the amount of $38,527,166 will expire at the end of the fiscal year. This contract was a sole source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0011). (Awarded Dec. 11, 2013).
Science Applications International Corp., McLean, Va., is being awarded a $10,037,074 modification to a previously awarded time-and-materials contract to exercise a one-year option for marine mammal systems support services providing care and training of the Navy's marine mammals. Work will be performed in San Diego, Calif. (70 percent), Kings Bay, Ga. (17 percent), and Bangor, Wash. (13 percent), and work is expected to be completed Dec. 31, 2014. Fiscal 2013 Navy working capital funds in the amount of $5,018,537 will be placed on contract and obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with one offer received. The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-10-C-0070).
Simmonds Precision Products operating as Goodrich Corp., Sensors and Integrated Systems, Vergennes, Vt., is being awarded a $7,945,029 modification on a previously awarded firm-fixed-price contract (N00019-12-C-2015) to exercise an option for 8 MH-60S integrated mechanical diagnostic systems (IMDS) production A1 kits, 27 IMDS integrated vehicle health ,management units and data transfer units, 17 MH-60S IMDS retrofit kits, 19 MH-60R IMDS Troy kits, and 19 MH-60R IMDS production A1 kits. Work will be performed in Vergennes, Vt., and is expected to be completed in December 2015. Fiscal 2014 aircraft procurement, Navy funds in the amount of $7,945,029 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
AIR FORCE
Lockheed Martin Corp, Newton, Pa., has been awarded a $200,700,415 cost-plus-incentive-fee modification (P00276) on an existing contract (FA8807-08-C-0010) for GPS III space vehicles 05 and 06. Work will be performed at Littleton. Colo., and Clifton, N.J., and is expected to be completed by Dec. 14, 2017 for space vehicle 05 and June 14, 2018 for space vehicle 06. Fiscal 2013 missile procurement funds in the amount of $200,700,415 are being obligated at time of award. The Air Force Space and Missile Systems Center Contracting Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
U.S. TRANSPORTATION COMMAND
Textainer Equipment Management (U.S.) Ltd., San Francisco, Calif., is being awarded a $15,952,358 indefinite-delivery-requirements-type, fixed-price with economic-price-adjustment contract for the program management, leasing, transportation and repair of intermodal equipment. Work will be performed at multiple locations both within and outside of the United States, with an expected completion date of Sept. 30, 2017. Program management and transition of operations are funded by fiscal 2014 transportation working capital funds and individual leasing task orders will be funded by each individual Department of Defense requiring activity at the time the order is placed. The U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity (HTC711-14-D-R027).
ARMY
Exelis Systems Corp., FKI ITT Systems, Colorado Springs, Colo., was awarded an $11,538,204 contract modification (FR0112) to contract W911SE-07-D-0006 to exercise the option for logistic support center base operations support services, Fort Rucker, Ala. Fiscal 2014 operations and maintenance, Army funds in the amount of $9,713,703 were obligated at the time of the award. Estimated completion date is Dec. 16, 2014. Sixteen bids were solicited with four received. Work will be performed at Fort Rucker, Ala. Army Contracting Command, Fort Rucker, Ala., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Carestream Health, Inc., Rochester, N.Y., has been awarded a maximum $70,228,104 modification (P00101) exercising the fifth one-year option period on a one-year base contract (SPM2D1-09-D-8308) with seven one-year option periods for radiology systems, subsystems, and components. This is a fixed-price with economic-price-adjustment contract. Location of performance is New York with a Dec. 15, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
DEFENSE INFORMATION SYSTEMS AGENCY
MCI Communications Services Inc., doing business as Verizon Business Services, Ashburn, Va., was awarded an $11,071,650 sole-source modification (P00066) to firm-fixed-price, indefinite delivery/indefinite quantity contract DCA200-02-D-5003 for Defense Research and Engineering Network II telecommunication services in support of the High Performance Computing Modernization program office. This action adds a second six-month option that runs from Dec. 19, 2013 to June 18, 2014. Performance will be at various sites geographically dispersed across the continental United States, as well as locations outside the U.S. The Defense Information Technology Contracting Office, Scott Air Force Base, Ill., is the contracting activity. (Awarded Dec. 11, 2013).
CONTRACTS
NAVY
The Boeing Co., St. Louis, Mo., is being awarded an indefinite-delivery/indefinite-quantity contract with an estimated ceiling-price of $872,766,714 for system upgrades for F/A-18 A/B, C/D, E/F and EA-18G aircraft for the U.S. Navy and the governments of Australia, Finland, Switzerland, Kuwait, Malaysia, and Canada. This contract provides for deliverables and services based on System Configuration Set life cycle phases for the aircraft. Work will be performed in St. Louis, Mo. (95 percent) and China Lake, Calif. (5 percent), and is expected to be completed in December 2018. Fiscal 2014 research, development, test and evaluation, Navy contract funds in the amount of $100,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to the FAR 6.302-1. This contract combines purchases for the U.S. Navy ($802,945,377; 92 percent) and the governments of Australia ($29,674,068; 3
40 percent); Finland ($21,819,168; 2.50 percent); Switzerland ($6,982,134; .80 percent); Kuwait ($4,363,834; .50 percent); Malaysia ($4,363,833; .50 percent); and Canada ($2,618,300; .30 percent). The Naval Air Warfare Center Weapons Division, China Lake, Calif., is the contracting activity (N68936-14-D-0008).
Northrop Grumman Systems Corp., Sunnyvale, Calif., was awarded an $112,926,348 firm-fixed-price, cost-plus-incentive-fee, cost-plus-fixed-fee contract, for Trident II (D5) Underwater Launcher System and Advanced Launcher Development Program Support. This contract provides for ongoing support for the TRIDENT II (D-5) deployed SSBN and the SSGN underwater launcher subsystem, Engineering Refueling Overhaul shipyard support, spares procurement, United States (U.S.) and United Kingdom (U.K.) launcher trainer support, Vertical Support Group E-mount and shim procurement, Nuclear Weapons Safety and Security Review, TRIDENT II (D-5) missile hoist overhaul, underwater launch technology support, U.S. and U.K. SSP Alterations and non-compliance report projects, gas generator refurbishment and case hardware production. It provides specialized technical support of TRIDENT II (D-5) missile tube closure production, technical engineering services, and tactical hardware production efforts for the New Strategic Arms Reduction Treaty. It provides technical engineering services to support the Advanced Launcher Development Program and the Common Missile Compartment Concept Development and Prototyping effort for the U.S. and U.K. The contractor shall be required to assess and analyze technologies and concepts to support the selection of a preferred system concept, which includes the identification of critical cost and risk impacts as a result of immature launcher technologies and/or immature requirements. The result of the effort will then advance and support the conduct of the technology development effort to support developing cost-effective launcher subsystem architecture for the Ohio-class Replacement Program. Work will be performed at Sunnyvale, Calif. (78 percent), Kings Bay, Ga. (7 percent), Bangor, Wash. (6 percent), St. Charles, Mo. (5 percent), Gardena, Calif. (2 percent), Camarillo, Calif. (1 percent), and Los Angeles, Calif. (1 percent), with an expected completion date of Sept. 30, 2018. The maximum dollar value, including the base period and one option year, is $220,288,791. Fiscal year 2014 operations and maintenance, Navy contract funds in the amount of $38,527,166; fiscal 2014 research, development, test and evaluation contract funds in the amount of $31,762,778; fiscal 2014 other procurement, Navy contract funds in the amount of $31,102,315; and fiscal 2014 United Kingdom contract funds in the amount of $11,534,089. Contract funds in the amount of $38,527,166 will expire at the end of the fiscal year. This contract was a sole source acquisition in accordance with 10 U.S.C. 2304(c)(1). Strategic Systems Programs, Washington, D.C., is the contracting activity (N00030-14-C-0011). (Awarded Dec. 11, 2013).
Science Applications International Corp., McLean, Va., is being awarded a $10,037,074 modification to a previously awarded time-and-materials contract to exercise a one-year option for marine mammal systems support services providing care and training of the Navy's marine mammals. Work will be performed in San Diego, Calif. (70 percent), Kings Bay, Ga. (17 percent), and Bangor, Wash. (13 percent), and work is expected to be completed Dec. 31, 2014. Fiscal 2013 Navy working capital funds in the amount of $5,018,537 will be placed on contract and obligated at the time of award. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured via publication on the Federal Business Opportunities website and the SPAWAR e-Commerce Central website, with one offer received. The Space and Naval Warfare Systems Center Pacific, San Diego, Calif., is the contracting activity (N66001-10-C-0070).
Simmonds Precision Products operating as Goodrich Corp., Sensors and Integrated Systems, Vergennes, Vt., is being awarded a $7,945,029 modification on a previously awarded firm-fixed-price contract (N00019-12-C-2015) to exercise an option for 8 MH-60S integrated mechanical diagnostic systems (IMDS) production A1 kits, 27 IMDS integrated vehicle health ,management units and data transfer units, 17 MH-60S IMDS retrofit kits, 19 MH-60R IMDS Troy kits, and 19 MH-60R IMDS production A1 kits. Work will be performed in Vergennes, Vt., and is expected to be completed in December 2015. Fiscal 2014 aircraft procurement, Navy funds in the amount of $7,945,029 are being obligated on this award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.
AIR FORCE
Lockheed Martin Corp, Newton, Pa., has been awarded a $200,700,415 cost-plus-incentive-fee modification (P00276) on an existing contract (FA8807-08-C-0010) for GPS III space vehicles 05 and 06. Work will be performed at Littleton. Colo., and Clifton, N.J., and is expected to be completed by Dec. 14, 2017 for space vehicle 05 and June 14, 2018 for space vehicle 06. Fiscal 2013 missile procurement funds in the amount of $200,700,415 are being obligated at time of award. The Air Force Space and Missile Systems Center Contracting Directorate, Los Angeles Air Force Base, Calif., is the contracting activity.
U.S. TRANSPORTATION COMMAND
Textainer Equipment Management (U.S.) Ltd., San Francisco, Calif., is being awarded a $15,952,358 indefinite-delivery-requirements-type, fixed-price with economic-price-adjustment contract for the program management, leasing, transportation and repair of intermodal equipment. Work will be performed at multiple locations both within and outside of the United States, with an expected completion date of Sept. 30, 2017. Program management and transition of operations are funded by fiscal 2014 transportation working capital funds and individual leasing task orders will be funded by each individual Department of Defense requiring activity at the time the order is placed. The U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity (HTC711-14-D-R027).
ARMY
Exelis Systems Corp., FKI ITT Systems, Colorado Springs, Colo., was awarded an $11,538,204 contract modification (FR0112) to contract W911SE-07-D-0006 to exercise the option for logistic support center base operations support services, Fort Rucker, Ala. Fiscal 2014 operations and maintenance, Army funds in the amount of $9,713,703 were obligated at the time of the award. Estimated completion date is Dec. 16, 2014. Sixteen bids were solicited with four received. Work will be performed at Fort Rucker, Ala. Army Contracting Command, Fort Rucker, Ala., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Carestream Health, Inc., Rochester, N.Y., has been awarded a maximum $70,228,104 modification (P00101) exercising the fifth one-year option period on a one-year base contract (SPM2D1-09-D-8308) with seven one-year option periods for radiology systems, subsystems, and components. This is a fixed-price with economic-price-adjustment contract. Location of performance is New York with a Dec. 15, 2014 performance completion date. Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
DEFENSE INFORMATION SYSTEMS AGENCY
MCI Communications Services Inc., doing business as Verizon Business Services, Ashburn, Va., was awarded an $11,071,650 sole-source modification (P00066) to firm-fixed-price, indefinite delivery/indefinite quantity contract DCA200-02-D-5003 for Defense Research and Engineering Network II telecommunication services in support of the High Performance Computing Modernization program office. This action adds a second six-month option that runs from Dec. 19, 2013 to June 18, 2014. Performance will be at various sites geographically dispersed across the continental United States, as well as locations outside the U.S. The Defense Information Technology Contracting Office, Scott Air Force Base, Ill., is the contracting activity. (Awarded Dec. 11, 2013).
U.S.-SINGAPORE JOINT STATEMENT OUTLINES SOME FUTURE NAVAL DEPLOYMENTS
FROM: U.S. DEFENSE DEPARTMENT
Joint Statement by US Secretary of Defense Chuck Hagel and Singapore Minister for Defense Dr Ng Eng Hen
Secretary of Defense Chuck Hagel and Minister for Defense Dr Ng Eng Hen met today in the Pentagon. Minister Ng is in the United States to witness the Singapore Armed Forces' Exercise Forging Sabre and the 20th anniversary celebrations of the Republic of Singapore Air Force's Peace Carvin II F-16 detachment.
During their meeting, Secretary Hagel and Minister Ng reaffirmed the excellent and longstanding bilateral defense relationship between the United States and Singapore. Minister Ng expressed appreciation for the United States' support of the Republic of Singapore training detachments in the United States. Secretary Hagel thanked Singapore for the logistical support that it provides to United States military aircraft and vessels in the region under the 1990 memorandum of understanding, which is founded on a shared belief that a strong United States presence in the Asia-Pacific is vital for regional peace and stability.
Secretary Hagel and Minister Ng noted the completion of the inaugural rotational deployment of the United States Navy's first Littoral Combat Ship (LCS), USS Freedom to Singapore from April to November 2013 under the 2005 Strategic Framework Agreement, and were pleased that the deployment had strengthened the United States' engagement with Singapore and the region. They looked forward to the rotational deployment of the next LCS, USS Fort Worth in late 2014, followed by the third LCS deployment in late 2015, in line with the United States' plans to deploy up to four LCS in the region by end 2016.
Secretary Hagel and Minister Ng were pleased to note the strong military-to-military cooperation between the United States and Singapore Armed Forces, comprising personnel exchanges, joint exercises and joint operations such as the U.S.-led multinational stabilization and reconstruction efforts in Afghanistan and counter-piracy efforts in the Gulf of Aden. Both militaries have enhanced their interoperability through increasing the complexity of their joint exercises, such as Exercise Commando Sling. They have also identified new opportunities to expand the scope of joint training, such as joint urban training through the use of the Murai Urban Training Facility in Singapore.
Secretary Hagel and Minister Ng also discussed initiatives to promote regional stability in the Asia Pacific region. Trans-national threats related to maritime security, terrorism, proliferation of weapons of mass destruction and large scale natural disasters could only be tackled effectively by the combined efforts of many countries. To meet these challenges, countries and their military forces should build confidence with each other through cooperation in bilateral and multilateral exchanges.
In this regard, Secretary Hagel and Minister Ng recognized the importance of the Shangri-La Dialogue and the ASEAN Defense Ministers' Meeting Plus (ADMM-Plus) which respectively foster dialogue and practical cooperation among regional countries. Secretary Hagel and Minister Ng agreed that these interactions contributed to a climate of cooperation and opened up the possibility for the ADMM-Plus to pursue practical measures in response to regional security challenges.
Joint Statement by US Secretary of Defense Chuck Hagel and Singapore Minister for Defense Dr Ng Eng Hen
Secretary of Defense Chuck Hagel and Minister for Defense Dr Ng Eng Hen met today in the Pentagon. Minister Ng is in the United States to witness the Singapore Armed Forces' Exercise Forging Sabre and the 20th anniversary celebrations of the Republic of Singapore Air Force's Peace Carvin II F-16 detachment.
During their meeting, Secretary Hagel and Minister Ng reaffirmed the excellent and longstanding bilateral defense relationship between the United States and Singapore. Minister Ng expressed appreciation for the United States' support of the Republic of Singapore training detachments in the United States. Secretary Hagel thanked Singapore for the logistical support that it provides to United States military aircraft and vessels in the region under the 1990 memorandum of understanding, which is founded on a shared belief that a strong United States presence in the Asia-Pacific is vital for regional peace and stability.
Secretary Hagel and Minister Ng noted the completion of the inaugural rotational deployment of the United States Navy's first Littoral Combat Ship (LCS), USS Freedom to Singapore from April to November 2013 under the 2005 Strategic Framework Agreement, and were pleased that the deployment had strengthened the United States' engagement with Singapore and the region. They looked forward to the rotational deployment of the next LCS, USS Fort Worth in late 2014, followed by the third LCS deployment in late 2015, in line with the United States' plans to deploy up to four LCS in the region by end 2016.
Secretary Hagel and Minister Ng were pleased to note the strong military-to-military cooperation between the United States and Singapore Armed Forces, comprising personnel exchanges, joint exercises and joint operations such as the U.S.-led multinational stabilization and reconstruction efforts in Afghanistan and counter-piracy efforts in the Gulf of Aden. Both militaries have enhanced their interoperability through increasing the complexity of their joint exercises, such as Exercise Commando Sling. They have also identified new opportunities to expand the scope of joint training, such as joint urban training through the use of the Murai Urban Training Facility in Singapore.
Secretary Hagel and Minister Ng also discussed initiatives to promote regional stability in the Asia Pacific region. Trans-national threats related to maritime security, terrorism, proliferation of weapons of mass destruction and large scale natural disasters could only be tackled effectively by the combined efforts of many countries. To meet these challenges, countries and their military forces should build confidence with each other through cooperation in bilateral and multilateral exchanges.
In this regard, Secretary Hagel and Minister Ng recognized the importance of the Shangri-La Dialogue and the ASEAN Defense Ministers' Meeting Plus (ADMM-Plus) which respectively foster dialogue and practical cooperation among regional countries. Secretary Hagel and Minister Ng agreed that these interactions contributed to a climate of cooperation and opened up the possibility for the ADMM-Plus to pursue practical measures in response to regional security challenges.
CYBERCRIME MARKETPLACE CO-FOUNDER SENTENCED TO PRISON FOR 18 YEARS
FROM: U.S. JUSTICE DEPARTMENT
Thursday, December 12, 2013
Ukrainian National Who Co-founded Cybercrime Marketplace Sentenced to 18 Years in Prison
Co-founded Carderplanet, One of the First Online Marketplaces for Stolen Financial Data
One of the world’s most prolific cybercriminals was sentenced today to serve 18 years in prison for his role in co-founding the notorious website CarderPlanet. At the time of his arrest, Vega possessed more than half a million stolen credit card numbers.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, and Special Agent in Charge Steven G. Hughes of the U.S. Secret Service’s New York Field Office made the announcement after sentencing by Senior U.S. District Judge Allyne R. Ross of the Eastern District of New York.
Roman Vega, 49, a Ukrainian national, pleaded guilty in 2009 to conspiracies to commit money laundering and access device fraud. According to court documents, Vega – who at various times was also known as “Boa,” “Roman Stepanenko” and “Randy Riolta” – conspired with others to steal large volumes of credit card information through hacking and other sophisticated means, and then sold that stolen information to others, who ultimately used the information to purchase merchandise and services. Vega founded two different online marketplaces for this stolen credit card information.
“Today’s sentence is a significant milestone in our ongoing effort to aggressively target and dismantle global cybercrime organizations that operate from every corner of the world,” said Acting Assistant Attorney General Raman. “Vega helped create one of the largest and most sophisticated credit card fraud sites in the cybercrime underworld – a distinction that has earned him the substantial sentence he received today.”
“The defendant and his group of cybercriminals emulated the mafia in organizing their criminal operations,” said U.S. Attorney Lynch. “Now, the defendant shares the same fate as so many mafia bosses – a long term of imprisonment. This investigation has spanned the globe and should send the unmistakable message that when it comes to dismantling global cybercrime organizations, we will not be held back by distance or complexity.”
“The Secret Service is pleased to have participated in this multi-agency criminal investigation that lead to the arrest of Roman Vega also known as ‘Boa’,” said Secret Service Special Agent in Charge Hughes. “This case demonstrates by constricting this criminal enterprise, there is no such thing as anonymity in the cyber world. The Secret Service continues to seek new and innovative ways to combat emerging cyber threats. Our success in this case and other similar investigations is a result of our close work with our network law enforcement partners.”
In the late 1990s, Vega founded the Boa Factory, one of the earliest websites to provide a forum for sellers of stolen credit card information to meet potential buyers. In the early 2000s, he co-founded and became a high-ranking administrator of a second criminal website, CarderPlanet, which became one of the first and busiest online marketplaces for the sale of stolen financial information, computer hacking services and money laundering.
At its height, CarderPlanet had more than 6,000 members and had a hierarchical leadership structure that borrowed its leadership titles from La Cosa Nostra. For example, CarderPlanet was headed by a “Godfather.” Immediately below the Godfather were a number of “Dons,” including the defendant, who used the name “Boa” when serving in this role. Three levels below the Dons was the “Consigliere,” who was an advisor. Vega, using the name “RioRita,” also served as the Consigliere.
CarderPlanet became a premier online criminal bazaar in significant part as a result of Vega’s leadership. Most notably, the defendant helped institute a quality control system for sales. If a cyberthief wanted to sell stolen credit card information on CarderPlanet, the information was subjected to a vetting process overseen by a manager to ensure that buyers obtained usable stolen data. In addition, the website used e-currencies, such as WebMoney, to provide the participants with security and a layer of anonymity. Vega and his co-conspirators thus created an efficient and trustworthy online marketplace for the buyers and sellers of stolen financial information not unlike legitimate e-commerce sites.
Vega also sold stolen data on the marketplaces he founded and managed. He directed cells of cybercriminals located throughout the globe who hacked into financial institutions to steal credit card and other financial information that would in turn be sold on carding forums, including CarderPlanet. Vega’s criminal career was cut short when he was arrested in Cyprus in February 2003 and extradited to the Northern District of California for prosecution. In November 2007, Vega was transferred to the Eastern District of New York following his indictment on the instant charges, and he pleaded guilty in January 2009. Vega has been incarcerated continuously since 2003.
The case was investigated by the U.S. Secret Service, with assistance from the U.S. Postal Inspection Service. The case was prosecuted by Senior Counsel Thomas Dukes of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William P. Campos of the Eastern District of New York.
Thursday, December 12, 2013
Ukrainian National Who Co-founded Cybercrime Marketplace Sentenced to 18 Years in Prison
Co-founded Carderplanet, One of the First Online Marketplaces for Stolen Financial Data
One of the world’s most prolific cybercriminals was sentenced today to serve 18 years in prison for his role in co-founding the notorious website CarderPlanet. At the time of his arrest, Vega possessed more than half a million stolen credit card numbers.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, and Special Agent in Charge Steven G. Hughes of the U.S. Secret Service’s New York Field Office made the announcement after sentencing by Senior U.S. District Judge Allyne R. Ross of the Eastern District of New York.
Roman Vega, 49, a Ukrainian national, pleaded guilty in 2009 to conspiracies to commit money laundering and access device fraud. According to court documents, Vega – who at various times was also known as “Boa,” “Roman Stepanenko” and “Randy Riolta” – conspired with others to steal large volumes of credit card information through hacking and other sophisticated means, and then sold that stolen information to others, who ultimately used the information to purchase merchandise and services. Vega founded two different online marketplaces for this stolen credit card information.
“Today’s sentence is a significant milestone in our ongoing effort to aggressively target and dismantle global cybercrime organizations that operate from every corner of the world,” said Acting Assistant Attorney General Raman. “Vega helped create one of the largest and most sophisticated credit card fraud sites in the cybercrime underworld – a distinction that has earned him the substantial sentence he received today.”
“The defendant and his group of cybercriminals emulated the mafia in organizing their criminal operations,” said U.S. Attorney Lynch. “Now, the defendant shares the same fate as so many mafia bosses – a long term of imprisonment. This investigation has spanned the globe and should send the unmistakable message that when it comes to dismantling global cybercrime organizations, we will not be held back by distance or complexity.”
“The Secret Service is pleased to have participated in this multi-agency criminal investigation that lead to the arrest of Roman Vega also known as ‘Boa’,” said Secret Service Special Agent in Charge Hughes. “This case demonstrates by constricting this criminal enterprise, there is no such thing as anonymity in the cyber world. The Secret Service continues to seek new and innovative ways to combat emerging cyber threats. Our success in this case and other similar investigations is a result of our close work with our network law enforcement partners.”
In the late 1990s, Vega founded the Boa Factory, one of the earliest websites to provide a forum for sellers of stolen credit card information to meet potential buyers. In the early 2000s, he co-founded and became a high-ranking administrator of a second criminal website, CarderPlanet, which became one of the first and busiest online marketplaces for the sale of stolen financial information, computer hacking services and money laundering.
At its height, CarderPlanet had more than 6,000 members and had a hierarchical leadership structure that borrowed its leadership titles from La Cosa Nostra. For example, CarderPlanet was headed by a “Godfather.” Immediately below the Godfather were a number of “Dons,” including the defendant, who used the name “Boa” when serving in this role. Three levels below the Dons was the “Consigliere,” who was an advisor. Vega, using the name “RioRita,” also served as the Consigliere.
CarderPlanet became a premier online criminal bazaar in significant part as a result of Vega’s leadership. Most notably, the defendant helped institute a quality control system for sales. If a cyberthief wanted to sell stolen credit card information on CarderPlanet, the information was subjected to a vetting process overseen by a manager to ensure that buyers obtained usable stolen data. In addition, the website used e-currencies, such as WebMoney, to provide the participants with security and a layer of anonymity. Vega and his co-conspirators thus created an efficient and trustworthy online marketplace for the buyers and sellers of stolen financial information not unlike legitimate e-commerce sites.
Vega also sold stolen data on the marketplaces he founded and managed. He directed cells of cybercriminals located throughout the globe who hacked into financial institutions to steal credit card and other financial information that would in turn be sold on carding forums, including CarderPlanet. Vega’s criminal career was cut short when he was arrested in Cyprus in February 2003 and extradited to the Northern District of California for prosecution. In November 2007, Vega was transferred to the Eastern District of New York following his indictment on the instant charges, and he pleaded guilty in January 2009. Vega has been incarcerated continuously since 2003.
The case was investigated by the U.S. Secret Service, with assistance from the U.S. Postal Inspection Service. The case was prosecuted by Senior Counsel Thomas Dukes of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William P. Campos of the Eastern District of New York.
PRODUCT MARKETER SETTLES ALLEGATIONS OF FALSELY USING "MADE-IN-USA" CLAIM
FROM: U.S. FEDERAL TRADE COMMISSION
FTC Approves Final Consent Settling Charges that Marketer of Outdoor Accessories Made False Made-in-the-USA Claims
Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that a marketer of iPhone accessories, bottle holders, lens cleaners, dog collars, leashes, and other outdoor accessories falsely claimed some of its products were “Made in the U.S.A,” or “Truly Made in the USA,” when in fact the products contained substantial foreign content.
The FTC alleged that E.K. Ekcessories, Inc. violated the Federal Trade Commission Act by making false and unsupported statements that its products were all or virtually all made in the United States. The settlement with E.K. Ekcessories, first announced in October 2013, prohibits the company from deceiving consumers about the degree to which its products are made in the United States. No comments were received regarding the proposed consent order during the public comment period.
According to the Commission’s 1997 U.S. Origin Claims Enforcement Policy Statement, for a product to be advertised or labeled as “Made in the U.S.A,” the product must be “all or virtually all” made in the United States – that is, all significant parts and processing must be of U.S. origin, and the product should contain no (or negligible) foreign content.
The Commission vote to approve the final order in this case was 4-0. (FTC File No. 132 3156, E.K. Ekcessories; the staff contact is Julia Solomon Ensor, Bureau of Consumer Protection, 202-326- 2377; see press release dated October 21, 2013)
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
FTC Approves Final Consent Settling Charges that Marketer of Outdoor Accessories Made False Made-in-the-USA Claims
Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that a marketer of iPhone accessories, bottle holders, lens cleaners, dog collars, leashes, and other outdoor accessories falsely claimed some of its products were “Made in the U.S.A,” or “Truly Made in the USA,” when in fact the products contained substantial foreign content.
The FTC alleged that E.K. Ekcessories, Inc. violated the Federal Trade Commission Act by making false and unsupported statements that its products were all or virtually all made in the United States. The settlement with E.K. Ekcessories, first announced in October 2013, prohibits the company from deceiving consumers about the degree to which its products are made in the United States. No comments were received regarding the proposed consent order during the public comment period.
According to the Commission’s 1997 U.S. Origin Claims Enforcement Policy Statement, for a product to be advertised or labeled as “Made in the U.S.A,” the product must be “all or virtually all” made in the United States – that is, all significant parts and processing must be of U.S. origin, and the product should contain no (or negligible) foreign content.
The Commission vote to approve the final order in this case was 4-0. (FTC File No. 132 3156, E.K. Ekcessories; the staff contact is Julia Solomon Ensor, Bureau of Consumer Protection, 202-326- 2377; see press release dated October 21, 2013)
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
GSA CONGRESSIONAL TESTIMONY ON BENEFITS OF "REVERSE AUCTIONS"
FROM; U.S. GENERAL SERVICES ADMINISTRATION
Bill Sisk
Joint Oversight Hearing
“Reverse Auctions”
House Veterans' Affairs Committee Subcommittee on Oversight and Investigations
and House Small Business Committee Subcommittee on Contracting and the Workforce
December 11, 2013
Good morning, Chairman Coffman, Chairman Hanna, Ranking Member Kirkpatrick , Ranking Member Meng, and members of the Subcommittees for Veterans’ Affairs Oversight and Investigations and Small Business Contracting and the Workforce. My name is Bill Sisk and I am the Deputy Commissioner of the General Services Administration’s Federal Acquisition Service.
I have spent over twenty years at GSA. I started in GSA’s Regional office in Atlanta in 1990 and have served in numerous management positions including Assistant Regional Administrator and Regional Commissioner. In my capacity as Regional Commissioner, I represented GSA’s Assisted Acquisition Services, Network Services, and Personal Property. I have also served as Assistant Commissioner in the Office of General Supplies and Services within the Federal Acquisition Service and was appointed to the U.S. AbilityOne Commission which is a unique program that provides employment opportunities for individuals who are blind or have other significant disabilities.
I appreciate the opportunity to appear here today to discuss GSA’s recently launched Reverse Auction Platform. This effort is one of a continuing series of actions the Federal Acquisition Service has undertaken in support of GSA’s mission to deliver the best value in acquisition and technology services to government and American people. Based on data since its inception, GSA’s Reverse Auction Platform is one tool that, with proper training and use, can provide savings to agencies, help them achieve small business goals, and provide visibility into spending data that, over time, can help agencies make better acquisition decisions.
GSA’s Reverse Auction Platform was put into operation July 1st, 2013 and is designed to be an efficient and cost effective platform for buying non-complex commodities and simple services. This initiative’s focus is to drive down the total cost of acquisitions and increase savings to customers and taxpayers. GSA’s Reverse Auction Platform is an eTool available to our government partners to use to facilitate the request for and submission of quotes or offers for products and services through GSA Multiple Award Schedules and Blanket Purchase agreements (BPAs), Veterans Administration’s schedules, and Department of Navy BPAs against GSA schedule contracts. GSA leveraged existing e-Buy and GSAAuctions.gov IT infrastructure resources which reduced development costs and provides users a familiar look and feel when using the Reverse Auction website.
The GSA Reverse Auction tool is non-mandatory and available to agencies to consider as they develop acquisition strategies.
Additionally, by leveraging GSA Schedule contracts and their unique ability to provide a broad array of vendors and small business set-aside capability, GSA's Reverse Auction Platform improves the government's ability to maintain small business participation through broad competitions and set-asides to promote agencies' meeting small business goals in a cost effective way.
There are a variety of potential benefits to agencies of this platform, including that it:
Displays real-time pricing
Provides customers with level III spend data (historical pricing data)
Interfaces with existing systems, i.e., eBuy / eLibrary enabling vendor authentication to verify that contracts are still valid under the GSA Multiple
Award Schedules program
Assists in meeting small business goals
Facilitates compliance with competition requirements
While agencies may realize these benefits, it is also important that the Reverse Auction Platform be used appropriately. GSA provides training on the Reverse Auction platform regularly to both the buyer and vendor communities. GSA offers on average four training sessions per week in a variety of forums. To date, over 50 sessions have been conducted and over 2000 individuals trained on the platform. Additionally, frequently asked questions and answers are available on the site as a resource for users.
The data so far has demonstrated savings in price, good competition from vendors, and support for small businesses. To date, several Federal Agencies, including GSA, have utilized the platform for 485 auctions, realizing about 6.7 percent savings on average with an average of three vendors participating per auction. 85.53 percent of the total awards and 87.18 percent of the total value of all contracts have been made to small businesses.
As the GSA Reverse Auction Platform continues to mature and evolve with more training and education provided, GSA predicts an increase in the use of the platform based on the initial interest in the platform and the overall interest by agencies in utilizing reverse auction procurement solutions. Additionally, we predict future spend data may provide insights for potential strategic sourcing opportunities. As we move forward, we welcome insights from Congress, from industry, and from partner Federal agencies on additional ways to improve the platform and ensure it is used appropriately.
During this time of continued budget uncertainty and ongoing fiscal pressure, GSA has launched the Reverse Auction platform in the hopes that it will be used by our partners to maximize savings in terms of both driving competition among vendors to achieve cost savings and by cutting processing times so that agencies achieve resource savings as well. This tool is one offering by GSA to deliver better value and savings to our partners and ultimately the American taxpayer.
Thank you again for the opportunity to testify and I am happy to answer any questions you may have.
Bill Sisk
Joint Oversight Hearing
“Reverse Auctions”
House Veterans' Affairs Committee Subcommittee on Oversight and Investigations
and House Small Business Committee Subcommittee on Contracting and the Workforce
December 11, 2013
Good morning, Chairman Coffman, Chairman Hanna, Ranking Member Kirkpatrick , Ranking Member Meng, and members of the Subcommittees for Veterans’ Affairs Oversight and Investigations and Small Business Contracting and the Workforce. My name is Bill Sisk and I am the Deputy Commissioner of the General Services Administration’s Federal Acquisition Service.
I have spent over twenty years at GSA. I started in GSA’s Regional office in Atlanta in 1990 and have served in numerous management positions including Assistant Regional Administrator and Regional Commissioner. In my capacity as Regional Commissioner, I represented GSA’s Assisted Acquisition Services, Network Services, and Personal Property. I have also served as Assistant Commissioner in the Office of General Supplies and Services within the Federal Acquisition Service and was appointed to the U.S. AbilityOne Commission which is a unique program that provides employment opportunities for individuals who are blind or have other significant disabilities.
I appreciate the opportunity to appear here today to discuss GSA’s recently launched Reverse Auction Platform. This effort is one of a continuing series of actions the Federal Acquisition Service has undertaken in support of GSA’s mission to deliver the best value in acquisition and technology services to government and American people. Based on data since its inception, GSA’s Reverse Auction Platform is one tool that, with proper training and use, can provide savings to agencies, help them achieve small business goals, and provide visibility into spending data that, over time, can help agencies make better acquisition decisions.
GSA’s Reverse Auction Platform was put into operation July 1st, 2013 and is designed to be an efficient and cost effective platform for buying non-complex commodities and simple services. This initiative’s focus is to drive down the total cost of acquisitions and increase savings to customers and taxpayers. GSA’s Reverse Auction Platform is an eTool available to our government partners to use to facilitate the request for and submission of quotes or offers for products and services through GSA Multiple Award Schedules and Blanket Purchase agreements (BPAs), Veterans Administration’s schedules, and Department of Navy BPAs against GSA schedule contracts. GSA leveraged existing e-Buy and GSAAuctions.gov IT infrastructure resources which reduced development costs and provides users a familiar look and feel when using the Reverse Auction website.
The GSA Reverse Auction tool is non-mandatory and available to agencies to consider as they develop acquisition strategies.
Additionally, by leveraging GSA Schedule contracts and their unique ability to provide a broad array of vendors and small business set-aside capability, GSA's Reverse Auction Platform improves the government's ability to maintain small business participation through broad competitions and set-asides to promote agencies' meeting small business goals in a cost effective way.
There are a variety of potential benefits to agencies of this platform, including that it:
Displays real-time pricing
Provides customers with level III spend data (historical pricing data)
Interfaces with existing systems, i.e., eBuy / eLibrary enabling vendor authentication to verify that contracts are still valid under the GSA Multiple
Award Schedules program
Assists in meeting small business goals
Facilitates compliance with competition requirements
While agencies may realize these benefits, it is also important that the Reverse Auction Platform be used appropriately. GSA provides training on the Reverse Auction platform regularly to both the buyer and vendor communities. GSA offers on average four training sessions per week in a variety of forums. To date, over 50 sessions have been conducted and over 2000 individuals trained on the platform. Additionally, frequently asked questions and answers are available on the site as a resource for users.
The data so far has demonstrated savings in price, good competition from vendors, and support for small businesses. To date, several Federal Agencies, including GSA, have utilized the platform for 485 auctions, realizing about 6.7 percent savings on average with an average of three vendors participating per auction. 85.53 percent of the total awards and 87.18 percent of the total value of all contracts have been made to small businesses.
As the GSA Reverse Auction Platform continues to mature and evolve with more training and education provided, GSA predicts an increase in the use of the platform based on the initial interest in the platform and the overall interest by agencies in utilizing reverse auction procurement solutions. Additionally, we predict future spend data may provide insights for potential strategic sourcing opportunities. As we move forward, we welcome insights from Congress, from industry, and from partner Federal agencies on additional ways to improve the platform and ensure it is used appropriately.
During this time of continued budget uncertainty and ongoing fiscal pressure, GSA has launched the Reverse Auction platform in the hopes that it will be used by our partners to maximize savings in terms of both driving competition among vendors to achieve cost savings and by cutting processing times so that agencies achieve resource savings as well. This tool is one offering by GSA to deliver better value and savings to our partners and ultimately the American taxpayer.
Thank you again for the opportunity to testify and I am happy to answer any questions you may have.
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
The U.S. Navy flight demonstration squadron, the Blue Angels, fly in the Delta Formation over the aircraft carrier USS George H.W. Bush (CVN 77) off the Florida coast near Mayport Naval Station. U.S. Navy photo by Mass Communication Specialist 1st Class Terrence Siren (Released) 131210-N-KG934-050.
The guided-missile destroyer USS Mason (DDG 87) fires its 5-inch gun during a live-fire exercise. Mason is deployed as part of the Harry S. Truman Carrier Strike Group. U.S. Navy photo by Mass Communication Specialist 2nd Class Rob Aylward (Released) 131208-N-PW661-032.
FDA ANNOUNCES VOLUNTARY PLAN TO END USE OF SOME ANTIBIOTICS IN FARM ANIMALS
 |
| Photo From FDA Website. |
Phasing Out Certain Antibiotic Use in Farm Animals
The Food and Drug Administration (FDA) is implementing a voluntary plan with industry to phase out the use of certain antibiotics for enhanced food production.
Antibiotics are added to the animal feed or drinking water of cattle, hogs, poultry and other food-producing animals to help them gain weight faster or use less food to gain weight.
Because all uses of antimicrobial drugs, in both humans and animals, contribute to the development of antimicrobial resistance, it is important to use these drugs only when medically necessary. Governments around the world consider antimicrobial-resistant bacteria a major threat to public health. Illnesses caused by drug-resistant strains of bacteria are more likely to be potentially fatal when the medicines used to treat them are rendered less effective.
FDA is working to address the use of “medically important” antibiotics in food-producing animals for production uses, such as to enhance growth or improve feed efficiency. These drugs are deemed important because they are also used to treat human disease and might not work if the bacteria they target become resistant to the drugs’ effects.
“We need to be selective about the drugs we use in animals and when we use them,” says William Flynn, DVM, MS, deputy director for science policy at FDA’s Center for Veterinary Medicine (CVM). “Antimicrobial resistance may not be completely preventable, but we need to do what we can to slow it down.”
FDA is issuing a final guidance document that explains how animal pharmaceutical companies can work with the agency to voluntarily remove growth enhancement and feed efficiency indications from the approved uses of their medically important antimicrobial drug products, and move the therapeutic uses of these products from over-the-counter (OTC) availability to marketing status requiring veterinary oversight.
Once manufacturers voluntarily make these changes, the affected products can then only be used in food-producing animals to treat, prevent or control disease under the order of or by prescription from a licensed veterinarian.
“This action promotes the judicious use of important antimicrobials, which protects public health and, at the same time, ensures that sick and at-risk animals receive the therapy they need,” says CVM Director Bernadette Dunham, DVM, Ph.D. “We realize that these steps represent changes for veterinarians and animal producers, and we have been working to make this transition as seamless as possible.”
Drugs Primarily in Feed
Flynn explains that all the drugs affected by this plan are antibacterial products. They have long been FDA-approved for production (e.g. growth enhancement) purposes as well as for the treatment, control or prevention of animal diseases. Even today, he says, it is not entirely understood how these drugs make animals grow faster. The drugs are primarily added to feed, although they are sometimes added to the animals’ drinking water.
Bacteria evolve to survive threats to their existence. In both humans and animals, even appropriate therapeutic uses of antibiotics can promote the development of drug resistant bacteria. When such bacteria enter the food supply, they can be transferred to the people who eat food from the treated animal.
In 2010, FDA called for a strategy to phase out production use of medically important antimicrobial products and to bring the remaining therapeutic uses under the oversight of a veterinarian. The guidance document that FDA is issuing on Dec. 11, 2013, which was previously issued in draft form in 2012, lays out such a strategy and marks the beginning of the formal implementation period.
The agency is asking animal pharmaceutical companies to notify FDA within the next three months of their intent to voluntarily make the changes recommended in the guidance. Based on timeframes set out in the guidance, these companies would then have three years to fully implement these changes.
To help veterinarians and producers of food-producing animals comply with the new terms of use for these products once the recommended changes are implemented, FDA is proposing changes to the Veterinary Feed Directives (VFD) process. This is an existing system that governs the distribution and use of certain drugs (VFD drugs) that can only be used in animal feed with the specific authorization of a licensed veterinarian. Flynn explains that feed-use antibiotics that are considered medically important and are currently available as OTC products will, as a result of implementation of the guidance document, come under the VFD process.
The proposed changes to the VFD process are intended to clarify the administrative requirements for the distribution and use of VFD drugs and improve the efficiency of the VFD program. Such updates to the VFD process will assist in the transition of OTC products to their new VFD status.
Why Voluntary?
Flynn explains that the final guidance document made participation voluntary because it is the fastest, most efficient way to make these changes. FDA has been working with associations that include those representing drug companies, the feed industry, producers of beef, pork and turkey, as well as veterinarians and consumer groups.
"Based on our outreach, we have every reason to believe that animal pharmaceutical companies will support us in this effort," says Michael R. Taylor, FDA's deputy commissioner for foods and veterinary medicine.
This article appears on FDA's Consumer Updates page, which features the latest on all FDA-regulated products.
HHS SAYS ALMOST 365,000 HAVE SELECTED HEALTH INSURANCE MARKETPLACE PLANS
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
December 11, 2013
Nearly 365,000 Americans selected plans in the Health Insurance Marketplace in October and November
1.9 million customers made it through the process but have not yet selected a plan; an additional 803,077 assessed or determined eligible for Medicaid or CHIP
Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that nearly 365,000 individuals have selected plans from the state and federal Marketplaces by the end of November. November alone added more than a quarter million enrollees in state and federal Marketplaces. Enrollment in the federal Marketplace in November was more than four times greater than October’s reported federal enrollment number.
Since October 1, 1.9 million have made it through another critical step, the eligibility process, by applying and receiving an eligibility determination, but have not yet selected a plan. An additional 803,077 were determined or assessed eligible for Medicaid or the Children’s Health Insurance Program (CHIP) in October and November by the Health Insurance Marketplace.
“Evidence of the technical improvements to HealthCare.gov can be seen in the enrollment numbers. More and more Americans are finding that quality, affordable coverage is within reach and that they'll no longer need to worry about barriers they may have faced in the past – like being denied coverage because of a pre-existing condition,” Secretary Kathleen Sebelius said. “Now is the time to visit HealthCare.gov, to ensure you and your family have signed up in a private plan of your choice by December 23 for coverage starting January 1. It's important to remember that this open enrollment period is six months long and continues to March 31, 2014.”
The HHS issue brief highlights the following key findings, which are among many newly available data reported today on national and state-level enrollment-related information:
November’s federal enrollment number outpaced the October number by more than four times.
Nearly 1.2 million Americans, based only on the first two months of open enrollment, have selected a plan or had a Medicaid or CHIP eligibility determination;
Of those, 364,682 Americans selected plans from the state and federal Marketplaces; and
803,077 Americans were determined or assessed eligible for Medicaid or CHIP by the Health Insurance Marketplace.
39.1 million visitors have visited the state and federal sites to date.
There were an estimated 5.2 million calls to the state and federal call centers.
The report groups findings by state and federal marketplaces. In some cases only partial datasets were available for state marketplaces. The report features cumulative data for the two month period because some people apply, shop, and select a plan across monthly reporting periods. These counts avoid potential duplication associated with monthly reporting. For example, if a person submitted an application in October, and then selected a Marketplace plan in November, this person would only be counted once in the cumulative data.
December 11, 2013
Nearly 365,000 Americans selected plans in the Health Insurance Marketplace in October and November
1.9 million customers made it through the process but have not yet selected a plan; an additional 803,077 assessed or determined eligible for Medicaid or CHIP
Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that nearly 365,000 individuals have selected plans from the state and federal Marketplaces by the end of November. November alone added more than a quarter million enrollees in state and federal Marketplaces. Enrollment in the federal Marketplace in November was more than four times greater than October’s reported federal enrollment number.
Since October 1, 1.9 million have made it through another critical step, the eligibility process, by applying and receiving an eligibility determination, but have not yet selected a plan. An additional 803,077 were determined or assessed eligible for Medicaid or the Children’s Health Insurance Program (CHIP) in October and November by the Health Insurance Marketplace.
“Evidence of the technical improvements to HealthCare.gov can be seen in the enrollment numbers. More and more Americans are finding that quality, affordable coverage is within reach and that they'll no longer need to worry about barriers they may have faced in the past – like being denied coverage because of a pre-existing condition,” Secretary Kathleen Sebelius said. “Now is the time to visit HealthCare.gov, to ensure you and your family have signed up in a private plan of your choice by December 23 for coverage starting January 1. It's important to remember that this open enrollment period is six months long and continues to March 31, 2014.”
The HHS issue brief highlights the following key findings, which are among many newly available data reported today on national and state-level enrollment-related information:
November’s federal enrollment number outpaced the October number by more than four times.
Nearly 1.2 million Americans, based only on the first two months of open enrollment, have selected a plan or had a Medicaid or CHIP eligibility determination;
Of those, 364,682 Americans selected plans from the state and federal Marketplaces; and
803,077 Americans were determined or assessed eligible for Medicaid or CHIP by the Health Insurance Marketplace.
39.1 million visitors have visited the state and federal sites to date.
There were an estimated 5.2 million calls to the state and federal call centers.
The report groups findings by state and federal marketplaces. In some cases only partial datasets were available for state marketplaces. The report features cumulative data for the two month period because some people apply, shop, and select a plan across monthly reporting periods. These counts avoid potential duplication associated with monthly reporting. For example, if a person submitted an application in October, and then selected a Marketplace plan in November, this person would only be counted once in the cumulative data.
U.S.-U.K. LAUNCH COUNTER ONLINE CHILD EXPLOITATION TASK FORCE
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, December 11, 2013
U.S., U.K. Law Enforcement Launch Task Force to Counter Online Child Exploitation
The U.S. Department of Justice today hosted a meeting to launch a joint task force between the United Kingdom and the United States to counter online child exploitation.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.K. Minister for Policing, Criminal Justice and Victims Damian Green made the announcement.
“Sexual predators are using technology to exploit and harm children, and we need to consider whether technology-based solutions can help curb this abuse and give parents the tools they need to keep their children safe,” said Acting Assistant Attorney General Raman. “Law enforcement is committed to protecting children from abuse, but we know that the help and support of the innovators in the tech community are critical to this important effort. We look forward to collaborating with experts throughout the digital industry on the work of this taskforce.”
“Child abuse is a vile crime,” said Minister Green. “ The UK government is working hard with partners in the US to ensure the Internet cannot be used to sexually abuse children or trade child abuse imagery no matter how technically savvy an offender may be. We have set up the US-UK task force to counter online child exploitation and are drawing on the brightest and best minds from across industry, law enforcement and academia to tackle the dark web, catch abusers and make it much more difficult to access child abuse images online. Today experts from the online industry were invited to attend the first task force meeting, and more companies, both large and small, will be invited to join us in the coming months.”
The task force – co-chaired by Acting Assistant Attorney General Raman and Minister Green – was established to find new technological solutions to combat child sexual exploitation crimes on the Internet and to reduce the volume of child sexual exploitation images online. The task force members include the FBI, Homeland Security Investigations of the Department of Homeland Security, and the U.K. National Crime Agency’s Child Exploitation and Online Protection Centre Command.
The growth of crimes involving the sexual exploitation of children on the Internet is a significant law enforcement challenge shared by all countries. An epidemic volume of child sexual exploitation images is stored and transmitted online by offenders whose crimes are increasingly facilitated by evolving and complex technologies. The task force will seek to leverage the intellectual talent and technical resources of the digital industry by forming and collaborating with an Industry Solutions Group, which will include experts from sectors across the industry to help address the varied and complex technical issues and challenges raised by online child exploitation offenses.
The task force will report back to the U.S. Attorney General and U.K. Prime Minister on its achievements in November 2014.
Wednesday, December 11, 2013
U.S., U.K. Law Enforcement Launch Task Force to Counter Online Child Exploitation
The U.S. Department of Justice today hosted a meeting to launch a joint task force between the United Kingdom and the United States to counter online child exploitation.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.K. Minister for Policing, Criminal Justice and Victims Damian Green made the announcement.
“Sexual predators are using technology to exploit and harm children, and we need to consider whether technology-based solutions can help curb this abuse and give parents the tools they need to keep their children safe,” said Acting Assistant Attorney General Raman. “Law enforcement is committed to protecting children from abuse, but we know that the help and support of the innovators in the tech community are critical to this important effort. We look forward to collaborating with experts throughout the digital industry on the work of this taskforce.”
“Child abuse is a vile crime,” said Minister Green. “ The UK government is working hard with partners in the US to ensure the Internet cannot be used to sexually abuse children or trade child abuse imagery no matter how technically savvy an offender may be. We have set up the US-UK task force to counter online child exploitation and are drawing on the brightest and best minds from across industry, law enforcement and academia to tackle the dark web, catch abusers and make it much more difficult to access child abuse images online. Today experts from the online industry were invited to attend the first task force meeting, and more companies, both large and small, will be invited to join us in the coming months.”
The task force – co-chaired by Acting Assistant Attorney General Raman and Minister Green – was established to find new technological solutions to combat child sexual exploitation crimes on the Internet and to reduce the volume of child sexual exploitation images online. The task force members include the FBI, Homeland Security Investigations of the Department of Homeland Security, and the U.K. National Crime Agency’s Child Exploitation and Online Protection Centre Command.
The growth of crimes involving the sexual exploitation of children on the Internet is a significant law enforcement challenge shared by all countries. An epidemic volume of child sexual exploitation images is stored and transmitted online by offenders whose crimes are increasingly facilitated by evolving and complex technologies. The task force will seek to leverage the intellectual talent and technical resources of the digital industry by forming and collaborating with an Industry Solutions Group, which will include experts from sectors across the industry to help address the varied and complex technical issues and challenges raised by online child exploitation offenses.
The task force will report back to the U.S. Attorney General and U.K. Prime Minister on its achievements in November 2014.
LANL ON USE OF QUANTUM DOTS TO IMPROVE SOLAR CELLS
FROM: LOS ALAMOS NATIONAL LABORATORY
Nontoxic Quantum Dot Research Improves Solar Cells
Record power-conversion efficiency at Los Alamos from quantum-dot sensitized photovoltaics
LOS ALAMOS, N.M., Dec. 10, 2013—Solar cells made with low-cost, non-toxic copper-based quantum dots can achieve unprecedented longevity and efficiency, according to a study by Los Alamos National Laboratory and Sharp Corporation.
“For the first time, we have certified the performance of a quantum dot sensitized solar cell at greater than 5 percent, which is among the highest reported for any quantum dot solar cell,” said Hunter McDaniel, a Los Alamos postdoctoral researcher and the lead author on a paper appearing in Nature Communications this week. “The robust nature of these devices opens up the possibility for commercialization of this emerging low-cost and low-toxicity photovoltaic technology,” he noted.
The reported solar cells are based on a new generation of nontoxic quantum dots (not containing either lead or cadmium as do most quantum dots used in solar cells). These dots are based on copper indium selenide sulfide and are rigorously optimized to reduce charge-carrier losses from surface defects and to provide the most complete coverage of the solar spectrum.
“The new solar cells were certified by the National Renewable Energy Laboratory (NREL) and demonstrated a record power-conversion efficiency for this type of devices,” according to Victor Klimov of Los Alamos, director of the Center for Advanced Solar Photophysics a DOE Energy Frontier Research Centers (EFRC). In addition to CASP-EFRC, this research has been also supported via a cooperative research agreement with Sharp Corporation.
The paper, “An integrated approach to realizing high-performance liquid-junction quantum dot sensitized solar cells” is scheduled for online publication in Nature Communications on Dec. 10, 2013.
The paper's authors are Hunter McDaniel, Nikolay S. Makarov, Jeffrey M. Pietryga, and Victor I. Klimov of the Center for Advanced Solar Photophysics, Los Alamos National Laboratory, in partnership with Nobuhiro Fuke of the Materials & Energy Technology Laboratory, Sharp Corporation, Japan.
Nontoxic Quantum Dot Research Improves Solar Cells
Record power-conversion efficiency at Los Alamos from quantum-dot sensitized photovoltaics
LOS ALAMOS, N.M., Dec. 10, 2013—Solar cells made with low-cost, non-toxic copper-based quantum dots can achieve unprecedented longevity and efficiency, according to a study by Los Alamos National Laboratory and Sharp Corporation.
“For the first time, we have certified the performance of a quantum dot sensitized solar cell at greater than 5 percent, which is among the highest reported for any quantum dot solar cell,” said Hunter McDaniel, a Los Alamos postdoctoral researcher and the lead author on a paper appearing in Nature Communications this week. “The robust nature of these devices opens up the possibility for commercialization of this emerging low-cost and low-toxicity photovoltaic technology,” he noted.
The reported solar cells are based on a new generation of nontoxic quantum dots (not containing either lead or cadmium as do most quantum dots used in solar cells). These dots are based on copper indium selenide sulfide and are rigorously optimized to reduce charge-carrier losses from surface defects and to provide the most complete coverage of the solar spectrum.
“The new solar cells were certified by the National Renewable Energy Laboratory (NREL) and demonstrated a record power-conversion efficiency for this type of devices,” according to Victor Klimov of Los Alamos, director of the Center for Advanced Solar Photophysics a DOE Energy Frontier Research Centers (EFRC). In addition to CASP-EFRC, this research has been also supported via a cooperative research agreement with Sharp Corporation.
The paper, “An integrated approach to realizing high-performance liquid-junction quantum dot sensitized solar cells” is scheduled for online publication in Nature Communications on Dec. 10, 2013.
The paper's authors are Hunter McDaniel, Nikolay S. Makarov, Jeffrey M. Pietryga, and Victor I. Klimov of the Center for Advanced Solar Photophysics, Los Alamos National Laboratory, in partnership with Nobuhiro Fuke of the Materials & Energy Technology Laboratory, Sharp Corporation, Japan.
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