THE ALLEGED BOILER-ROOM ENTREPRENEUR

FROM:  SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., May 16, 2012 — The Securities and Exchange Commission today charged a Hawaii resident and two firms he used to orchestrate a scheme in which he covertly founded small companies, installed management, and recruited overseas boiler rooms that pressured investors into buying their stock while he pocketed more than $2 million in consulting fees from proceeds of the fraudulent stock sales.

The SEC alleges that Nicholas Louis Geranio worked behind the scenes to create eight U.S.-based companies used to raise money through the sale of Regulation S stock, which is exempt from SEC registration under the securities laws because it is offered solely to investors located outside the United States. Geranio handpicked the management for the companies, primarily Keith Michael Field of Sherman Oaks, Calif., who served as an officer, director, or investor relations representative for each company and also is charged in the SEC’s complaint. Geranio then set up consulting arrangements through his firms — The Good One Inc. and Kaleidoscope Real Estate Inc. — so he could instruct management on how to run the companies and raise money offshore. Geranio extracted consulting fees from the companies, which generally had few or no employees, little or no office space, and no sales or customers.

The SEC alleges that Field drafted misleading business plans, marketing materials, and website information about the companies that were provided to investors as part of fraudulent solicitation efforts by teams of telemarketers operating in boiler rooms that Geranio recruited primarily in Spain. The boiler rooms used high-pressure sales tactics and false statements about the companies to raise more than $35 million from investors. Meanwhile, Geranio instructed Field and others to buy and sell shares in some of the companies to create an illusion of trading activity and manipulate upwards the price of the publicly-traded stock.

“Geranio covertly set up companies and manipulated the market for their stock to profit from aggressive offshore boiler room activity,” said Stephen L. Cohen, Associate Director in the SEC’s Division of Enforcement. “Geranio pulled the strings while Field scripted the show for the boiler rooms to bring a payday to everyone but the investors.”

According to the SEC’s complaint filed in the U.S. District Court for the Central District of California, Geranio was the subject of a previous SEC enforcement action in 2000. In his latest misconduct, he concealed his role from investors and the public at all times by acting through The Good One and Kaleidoscope. The scheme lasted from April 2007 to September 2009. Geranio began by locating and acquiring shell companies to create the issuers used in the scheme: Blu Vu Deep Oil & Gas Exploration Inc., Green Energy Live Inc., Microresearch Corp., Mundus Group Inc., Power Nanotech Inc., Spectrum Acquisition Holdings Inc., United States Oil & Gas Corp., and Wyncrest Group Inc. Geranio then appointed management for these companies, in some cases turning to business associates, friends, or others. For example, the former CEO of Blu Vu was someone Geranio met while kite surfing in Malibu.

According to the SEC’s complaint, Geranio worked behind the scenes to keep the companies’ publicly-traded shares trading at prices conducive to the boiler room sales. He did this by directing Field, personal friends, and others to open accounts and buy or sell shares in at least five of the companies as part of matched orders and manipulative trades that created the false impression of active trading and market value in these stocks. The manipulative trades allowed the boiler rooms to sell the Regulation S shares to overseas investors at higher prices.

The SEC alleges that boiler room representatives recruited by Geranio induced investors by using aggressive techniques consistent with boiler room activity. For instance, they promised immediate and substantial investment returns, convinced investors that they needed to purchase the shares immediately or miss the grand opportunity altogether, and threatened legal action if an investor did not agree to purchase shares that the representatives believed the investor had already agreed to purchase. The boiler rooms also used “advance fee” solicitations, telling investors that only if they purchased shares in one of these companies would the boiler room agree to sell their other shares. Many of the investors were elderly and living in the United Kingdom.

According to the SEC’s complaint, investors were directed to pay for their Regulation S stock by sending money to U.S.-based escrow agents. As arranged by Geranio, the escrow agents paid 60 to 75 percent of the approximately $35 million raised from investors to the boiler rooms as their sales markups, kept 2.5 percent as their own fee, and paid the remaining proceeds back to the companies that Geranio created. The companies (or in some cases the escrow agents) then funneled approximately $2.135 million of the proceeds back to Geranio through The Good One and Kaleidoscope in the form of consulting fees, and paid Field approximately $279,000.

The SEC alleges that Geranio also assisted in diverting $240,000 in investor funds toward an undisclosed down payment on a property to start a Hawaiian wedding planning company.

The SEC’s complaint alleges that Geranio, Field, The Good One and Kaleidoscope violated Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder. The complaint alleges that Field also violated Section 17(a)(2) of the Securities Act and aided and abetted the companies’ violations of Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder, and Geranio is liable as a control person of The Good One and Kaleidoscope under Exchange Act Section 20(a). The SEC is seeking financial penalties, disgorgement of ill-gotten gains plus prejudgment interest, penny stock bars, and permanent injunctions against all of the defendants, as well as officer and director bars against Geranio and Field. The complaint seeks disgorgement and prejudgment interest against relief defendant BWRE Hawaii LLC based on its alleged receipt of investor funds.
The SEC's investigation, which is continuing, has been conducted by Ricky Sachar, Carolyn Kurr, and Wendy Kong under the supervision of Josh Felker with assistance from Jim Daly in the Office of International Affairs. Richard Simpson will lead the litigation. The SEC acknowledges the assistance of the City of London Police, Macedonian Securities and Exchange Commission, Macedonian Public Prosecutor, Lithuanian Securities Commission, Australian Securities and Investments Commission, Comision Nacional del Mercado de Valores (Spain), and Financial Market Supervisory Authority (Switzerland).

BATTLESHIP MOVIE SPECIAL SCREENING FOR SAILORS AND FAMILIES

FROM:  U.S. NAVY
CNIC's MWR Brings Battleship to Bases Nationwide
By Mass Communication Specialist 1st Class (SW/AW) Monique K. Hilley, Commander, Navy Installations Command Public Affairs
WASHINGTON (NNS) -- Navy Morale, Welfare and Recreation (MWR), in coordination with Universal Studios, will be offering special screenings of Battleship to Sailors and their families prior to the nationwide release of the movie May 18.

The film's director, Peter Berg, kicked off the free screenings at Naval Base Coronado and Naval Base San Diego May 11. Special screenings also took place at Camp Lejeune, Naval Air Station Whidbey Island, Naval Submarine Base New London and Joint Base Little Creek-Fort Story.

Berg, director of Battleship, will also attend the Joint Base Little Creek-Fort Story screening. Future screenings will take place in Washington, D.C. May 14, at Naval Air Station Jacksonville May 15 and onboard USS Missouri May 16.

Those interested in attending the special screenings should contact their local MWR offices for show times and locations.

Following Department of Defense (DoD) approval in 2010, the film's production began in early 2010 and principal photography took place during the Pacific Fleet's RIMPAC training exercise later that year. Because filming took place on top of already scheduled training events, it did not impair the exercise and there was no cost to the Navy or American taxpayers.

Additional filming also took place in Hawaii, San Diego, and on a film set in Baton Rouge, La., constructed by Universal Studios.

The end result is a film that provides movie-goers with a realistic look of the Navy and our Sailors operating at sea in an action-packed Hollywood film.

Battleship is a 2012 American science fiction action naval war film. The film was directed by Peter Berg and released by Universal Pictures. The film stars Taylor Kitsch, Alexander Skarsgård, Rihanna, Brooklyn Decker and Liam Neeson.

Commander, Navy Installations Command (CNIC) operates the MWR program worldwide to enhance quality of life for Sailors and their families.

EX-IM BANK APPROVES $350 MILLION LOAN GUARANTEE TO SUPPORT TEXTRON’S EXPORTS OF CESSNA AIRCRAFT AND BELL HELICOPTERS

FROM:  U.S. EXPORT-IMPORT BANK 

GENEVA, SWITZERLAND: The Export-Import Bank of the United States (Ex-Im Bank) has approved a guarantee of a $350 million loan facility to provide the funds to assist Textron Inc. in financing the exports by two of its companies, Cessna Aircraft Company and Bell Helicopter Textron. The guaranteed lender is PNC Bank in Pittsburgh, Pa.

The Ex-Im Bank-guaranteed loan facility will enable Textron’s Finance segment to provide financing to international customers that take delivery of new Cessna aircraft and Bell commercial helicopters. The facility will be guaranteed by Textron's captive finance company, Textron Financial Corporation (TFC). The repayment term is 12 years.

This is the second financing facility approved by the Bank to assist TFC in supporting Textron’s exports. In May 2009, Ex-Im Bank authorized a $500 million direct-loan facility that has helped to finance the export of over 100 Cessna business jets and six Bell helicopters.

The announcement of the new facility was made today by Ex-Im Bank Chairman and President Fred P. Hochberg at the 12^th annual European Business Aviation Convention and Exhibition (EBACE), being held in Geneva, Switzerland, May 14-16.

“Business aircraft and helicopters are an important part of America’s aerospace industry, which is helping to boost U.S. exports to all-time highs. Ex-Im Bank is pleased to approve a second financing facility to support Textron’s exports of Cessna aircraft and Bell helicopters. We anticipate that this facility will add to the success of the first such financing for Textron, which has helped to support hundreds of manufacturing jobs in Kansas, Georgia and Texas,” Chairman Hochberg said.
"This guaranteed loan facility for the export of Cessna and Bell aircraft is a wonderful example of Ex-Im Bank fulfilling its purpose – facilitating exports to foreign markets where financing isn't otherwise readily available and preserving American jobs. We greatly value our relationship with Ex-Im Bank, and we are proud of the work they do," said John Klopfer, president and CEO of Textron’s Aviation Finance Group.
 The Ex-Im Bank-guaranteed loan facility will enable Textron’s Finance segment to continue to finance exports of Cessna aircraft and Bell helicopters with competitive interest rates and repayment terms. TFC will be the ultimate source of repayment for the loan facility and will retain credit risk of the international buyers. The loan facility will be disbursed on a periodic basis, reimbursing Textron’s Finance segment for financings of eligible aircraft and helicopters that have been exported.

Textron is a multi-industry company with a global network of aircraft, defense, industrial and finance businesses. Cessna Aircraft Company currently employs more than 11,000 workers at its manufacturing plants in Wichita and Independence, Kan., and Columbus, Ga. Bell Helicopter Textron is headquartered in Fort Worth, Texas, and also has a manufacturing facility in Amarillo, Texas. Bell Helicopter has approximately 8,100 U.S. employees.

TFC is a commercial finance company that provides financing for products manufactured by its parent company, Textron Inc.

Hochberg also announced at EBACE in Geneva today that Ex-Im Bank has approved a new credit process to facilitate and expedite the Bank’s financing for business-aircraft and helicopter exports from other U.S. manufacturers that do not have a captive financing company. Under the new process, Ex-Im Bank will work with qualified industry experts to perform due diligence and credit analysis for these business-aircraft and helicopter transactions.

In FY 2011, Ex-Im Bank authorized more than $12.6 billion in financing to support the export of U.S.-manufactured aircraft of all types, including approximately $90 million for 10 business aircraft and helicopters exports to four countries – Brazil, Mexico, Panama and Switzerland.

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

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

GENERAL DEMPSEY TELLS NORWICH UNIVERSITY GRADUATES TO "LIVE UNCOMMON LIVES"

FROM:  AMERICAN FORCES PRESS SERVICE 
Chairman Urges Norwich Grads to Live 'Uncommon Lives'
By Jim Garamone
WASHINGTON, May 13, 2012 - Army Gen. Martin E. Dempsey, the chairman of the Joint Chiefs of Staff, today urged Norwich University graduates to live "uncommon lives" of leadership based on time-honored virtues.

Norwich, located in the town of Northfield, Vt., is the oldest of six senior military colleges and is considered the birthplace of the Reserve Officers' Training Corps.

"Norwich has started you on an uncommon road of selflessness and courage, to go out and contribute and serve our nation," Dempsey said in prepared remarks. "Realize it or not, you have internalized the Norwich virtues of courage, honesty, temperance and wisdom -- guideposts that will serve you as you lead our nation's future."

Norwich is a private university whose student body features a Corps of Cadets as well as traditional civilian students. Some of this year's graduates are joining the U.S. military as commissioned officers. Others will go on to eventually take leadership roles in business, industry, politics, government, and other fields of endeavor.

The experiences the university provides will serve all of the graduates in good stead, because leadership is important in all aspects of life, Dempsey said.

Norwich University dates from 1819 and it boasts a long list of famous leaders as graduates, from Admiral of the Navy George Dewey of Spanish-American War fame to retired Gen. Gordon R. Sullivan, who had served as the Army chief of staff in the early 1990s and now serves as president and chief operating officer of the Association of the United States Army headquartered in Arlington, Va.

Dempsey said the university "would be little more than a beautiful monument to the past glory of American leaders if not for you, its next generation of leaders."
Now it is up to the graduates to make the most of their experiences at Norwich -- and the ones they will have in the future -- to make a difference and have an impact, he said.
Living an uncommon life means achieving "the outcome that is necessary in whatever particular line of work you choose." Dempsey said.

Dempsey also spoke about trust. "It doesn't get any more fundamental than trust," he said. "It's one of the pillars of the strength of our nation. At every level, trust wins, and it starts with trust in yourself."

There's also "a broader trust between the citizen and the nation, and nation-to-nation with our allies and partners, as well," Dempsey said, noting that the pursuit of U.S. security interests today involves more than just military power.

"Our security commitments cut across the lines of diplomacy, intelligence, economics, and social progress," he said. "It demands the support of an array of professions and skills as well as alliances, international systems and volunteer organizations. And it requires the best from each of us and all of us."

In today's changing world, the challenge for Americans involves "doing what's right for ourselves, our family, our nation, and the global community," Dempsey said.
"We can only make it work," he added, "if we consistently and persistently leverage every opportunity to build confidence in each other, building trust."

DOOR OPENS ONTO A SUSPECTED EXPLOSIVES FACTORY

FROM:  U.S. DEPARTMENT OF DEFENSE
An Afghan villager unlocks the door of a suspected homemade explosives factory for U.S. Army Spc. Timothy Rodgers in Afghanistan's Ghazni province, May 4, 2012. Rodgers is assigned to the 82nd Airborne Division’s 1st Brigade Combat Team. U.S. Army photo by Sgt. Michael J. MacLeod

PRESIDENT OBAMA WELCOMES NEW STAGE IN AFGHAN SECURITY TRASITION

FROM:  AMERICAN FORCES PRESS SERVICE
Obama Welcomes New Stage of Afghan Security Transition
WASHINGTON, May 13, 2012 - President Barack Obama welcomed Afghanistan President Hamid Karzai's announcement of his government's list of areas intended for the third stage of the transition of security responsibility from NATO's International Security Assistance Force to Afghan security forces.

"I welcome President Karzai's announcement today of the third tranche of areas to transition to Afghan security lead, which is an important step forward in our effort to achieve our objectives in Afghanistan," Obama said in a statement issued today.

"As transition proceeds in these areas," Obama said, "nearly 75 percent of the population of Afghanistan will be living in provinces, districts and villages where Afghan forces are leading."

The Afghan government will now enter the third of five tranches or stages, as they continue to move forward in the process of taking the responsibility of national security, ISAF officials said in a news release issued today.

Meanwhile, Afghanistan's national security forces "are strengthening their capacity as we remain on track to meet our goal of having the Afghan government fully responsible for security across the country by the end of 2014," Obama said in his statement.

A week from now, Obama said, world leaders will gather at the May 20-21 NATO Summit in Chicago "to discuss how we can effectively advance the transition process as our forces move from combat to a support role and demonstrate our enduring support for the Afghan government and Afghan National Security Forces."

Obama said he "looks forward to meeting with President Karzai and my fellow leaders in Chicago to discuss these critical steps that will strengthen Afghan sovereignty while responsibly winding down the war."

DEFENSE BACKS PRODUCTION OF F-35 STRIKE FIGHTER

FROM:  AMERICAN FORCES PRESS SERVICE
Defense Secretary Leon E. Panetta and U.S. Rep. Steny H. Hoyer of Maryland look at the cockpit of the F-35 Joint Strike Fighter with Navy Capt. Erik "Rock" Etz on Naval Air Station Patuxent River, Md., Jan. 20, 2012. Panetta and Hoyer toured several facilities related to the F-35 Joint Strike Fighter, which is in its test phases at the base. DOD photo by Erin A. Kirk-Cuomo    



Officials Emphasize Commitment to Joint Strike Fighter
By Amaani Lyle
WASHINGTON, May 9, 2012 - Senior leaders from the Air Force and Navy affirmed yesterday that the F-35 joint strike fighter remains the centerpiece of the tactical aircraft program and will play a large part in the services' ongoing modernization plans.

Navy Vice Adm. David J. Venlet, F-35 Lightning II program executive officer, told the Senate Armed Services Committee's airland subcommittee that the F-35's basic engine designs were deemed sound and deliverable after a battery of tests and observations over the past year.

"While there is still risk in the program, it is risk-balanced," Venlet said. "I have confidence in the resilience of the plan to absorb further learning discovery and stay on track."

Still, Venlet said, the program will "not execute itself," and will require resources, tools and processes to enable disciplined decisions on development and incremental capability delivery.

Technical and cost issues exist, the admiral acknowledged, but he added that the joint strike fighter's enhanced capability can be the backbone of fifth-generation fighters.
Carrier test pilots conducting approaches at Patuxent River, Md., have lauded the handling characteristics of the F-35's aircraft carrier variant, he said, and short takeoff and vertical landing results have demonstrated solid performance.

"It is a testimony to the very effective and impressive marriage of engine and airframe," Venlet said, adding that measures will stay in place to ensure the program's long-term effectiveness. "Rigorous management control by the joint program office, supported by the service system commands, will be applied with a ... focus on production and affordable delivery capability -- our only meaningful external result."

Navy Vice Adm. W. Mark Skinner, principal military deputy in the office of the assistant secretary of the Navy for research, development and acquisition, said affordability will be a key focus in delivering capabilities.

"During these austere times, we must persist in modernizing and recapitalizing our naval aviation forces and increase our capability through force multipliers, such as the Navy Integrated Fire Control Counter-Air and using 'should-cost/will-cost' processes to bring more affordable systems to our warfighters," Skinner said.

Lt. Gen. Janet C. Wolfenbarger, assistant secretary of the Air Force for acquisition, told the panel the fiscal 2013 budget aligns with the Air Force's tactical aviation program as the service shifts its national security strategy to counter modern-day threats.
"Our rapidly aging aircraft fleet drives the urgent need to balance procurement of new inventory with sustainment of our current fleet," Wolfenbarger said.

RETIRED GENERAL KEVIN CHILTON INDUCTED INTO NASA'S ASTRONAUT HALL OF FAME

FROM:  U.S. AIR FORCE SPACE COMMAND
Space shuttle astronauts Franklin Chang Díaz, retired Gen. Kevin Chillton and Charlie Precourt celebrate their induction into the Astronaut Hall of Fame at the Kennedy Space Center, Fla., May 5, 2012. More than 30 Hall of Fame astronauts and hundreds of guests gathered to witness the annual induction ceremony. Chilton is a 1976 graduate of the Air Force Academy. His wife, Brig. Gen. Cathy Chilton, is the mobilization assistant to the Academy superintendent. (NASA photo) 


Former AFSPC/CC named to  
Astronaut Hall of Fame 
By Don Branum
Air Force Academy Public Affairs

5/11/2012 - Kennedy Space Center, Fla -- Retired Gen. Kevin Chilton was inducted into NASA's Astronaut Hall of Fame during a ceremony May 5 at the Kennedy Space Center in Florida.

Chilton is the former commander of Air Force Space Command and U.S. Strategic Command, a 1976 graduate of the Air Force Academy, the husband of Academy Mobilization Assistant Brig. Gen. Cathy Chilton and the father of Cadet 1st Class Madison Chilton.

Chilton piloted the Space Shuttle Endeavour on its maiden voyage during the Space Transportation System-49 mission, his first as an astronaut. Highlights of that mission included NASA's first three-person extravehicular activity during an operation to capture and repair a non-functional Intelsat VI satellite. He also piloted the 11-day STS-59 mission aboard Endeavour, which used radar imaging to map parts of the U.S., Europe and Asia for climate research.

Chilton commanded STS-76 aboard the Space Shuttle Atlantis on his third mission. STS-76 highlights included docking with the Mir space station and a six-hour EVA by astronauts Michael Clifford and Linda Godwin.

His career also includes a joint assignment as the Joint Staff's director of politico-military affairs for Asia-Pacific and the Middle East regions. He held commands at Air Force Space Command at Peterson Air Force Base, Colo., the Joint Functional Component Command for Space and Global Strike at Offutt AFB, Neb., 8th Air Force at Barksdale AFB, La., and the 9th Reconnaissance Wing at Beale AFB, Calif.

Chilton was a rated pilot with more than 5,000 flying hours in several airframes, including the F-4 Phantom, F-15 Eagle, B-52 Stratofortress and U-2 Dragon Lady. He holds a master's degree in mechanical engineering from Columbia University in New York. He retired Feb. 1, 2011.

Also honored during Saturday's ceremony were Franklin Chang Díaz and Charles Precourt. Díaz, NASA's first Latino astronaut, flew on seven space shuttle flights and logged more than 1,600 hours in space, according to NASA's website. Precourt flew on four space shuttle missions: STS-55 (Columbia), STS-71 (Atlantis), STS-84 (Atlantis) and STS-91 (Discovery).

The ceremony brings the total number of astronauts named to the Astronaut Hall of Fame to 82. Previous inductees include astronauts from the Mercury, Gemini, Apollo, Skylab and Apollo-Soyuz programs, according to NASA.

MASSIVE BLACK HOLE RELEASES TORRENTS OF ENERGY

FROM:  NASA
New data from the Herschel Space Observatory shows that galaxies with the most powerful, active, supermassive black holes at their cores produce fewer stars than galaxies with less ones. Supermassive black holes are believed to reside in the hearts of all large galaxies. When gas falls upon these monsters, the materials are accelerated and heated around the black hole, releasing great torrents of energy. In the process, active black holes often generate colossal jets that blast out twin streams of heated matter. Inflows of gas into a galaxy also fuel the formation of new stars. In a new study of distant galaxies, Herschel helped show that star formation and black hole activity increase together, but only up to a point. Astronomers think that if an active black hole flares up too much, it starts spewing radiation that prevents raw material from coalescing into new stars. This artist concept of the local galaxy Arp 220, captured by the Hubble Space Telescope, helps illustrate the Herschel results. The bright core of the galaxy, paired with an overlaid artist's impression of jets emanating from it, indicate that the central black hole's activity is intensifying. As the active black hole continues to rev up, the rate of star formation will, in turn, be suppressed in the galaxy. Astronomers want to further study how star formation and black hole activity are intertwined. Herschel is a European Space Agency cornerstone mission, with science instruments provided by consortia of European institutes, with important participation by NASA. Image Credit: NASA/JPL-Caltech

CFTC CHAIRMAN CHILTON'S SPEECH ON FINANCIAL REFORM

Photo:  CBOT.  Credit:  Wikimedia.
FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION
Speech of Commissioner Bart Chilton before Americans for Financial Reform, Washington, DC
May 9, 2012
Introduction
Thank you for the introduction. I appreciate the opportunity to be with you today to discuss cost/benefit analysis (CBAs). As we know, this has been the matter of lawsuits and countless meetings in the wake of the passage of the Wall Street Reform and Consumer Protection Act, otherwise known as Dodd-Frank. It is an important topic.
Load of Compromisin’

For me, most things that are resolved in this town result from an appropriate equilibrium. The truth or answer isn’t found on the outskirts of issues; they reside on the inside, in the medium. Most things I’ve worked upon or have seen worked upon seem to resolve themselves better when there is cooperation and compromise. That usually means some level of concession from all parties. When something is approved and everyone is grumbling a bit, that typically indicates it is legitimately worthy, in general. At least, that is what I’ve found.

The thing is: in order to reach an agreement, to reach that balance, sometimes it is sort of like that oldRhinestone Cowboy lyric, “There’ll be a load of compromisin’ on the road to my horizon.” For those of you who were too young, or don’t recall the song, made famous by country singer Glen Campbell, it is your loss. It was a huge hit. By the way, I saw a neat tee shirt last weekend. On it was written, “I’m old, but I got to see all the cool bands.” Nevertheless, for most things good to get done in this town, the fact of the matter is that there is a load of compromisin’ on the road to that horizon.
The D.C. Quadrakill

My experience, however, is once upon a time in a faraway land when and where people actually wanted to get some things done. There is a contingent now that simply wishes to take the Nancy Reagan approach to a lot of things and “Just say no.” (By the way, one is getting old when a lot of your references seem like they need references, or foot notes). Not gonna do it on that one. She was a great First Lady. If you don’t know “Just say no,” that’s why we have Google. Nowadays, there are a lot of people who just say “no” to a lot of things. There is no load of compromisin’ going on. There is no compromisin’ period. And, that’s why precious little legislation is coming from the Hill these days and why frustration with Washington is rampant.

I do have a point. We are working toward cost/benefit analysis. Hang on my brothers and sisters. There is a little-articulated Washington play book section. I call it the D.C. Quadrakill. It isn’t an innovative thing, and it is a tried and true strategy, for sure. First, if you don’t like a bill, amendment or provision thereof, you try to defeat it with a vote. Just say, then vote, no (or nay, or whatever). If that fails, go to stage two. You can try to defund it through the appropriations process. If that doesn’t work, there is stage three. This is where you can try to stop it, change it or delay it through the regulatory rulemaking process. If all of those things fail, you can go to DEFCON four: litigation. That’s the D.C. Quadrakill: 1. kill bill; 2. defund it; 3. regulate it; and, 4. litigate it.

There is no shame in availing yourself of this Quadrakill strategy, although not everyone can do the full meal Quadrakill deal. Sure people can lobby their Representatives and Senators regarding voting for, or funding of, some legislation. Maybe they will get some gallery chamber passes, too. Perhaps they will have a quick photo op. That stuff takes place all the time. But the thing is: the other two stages of the Quadrakill—regulate and litigate—those are for serious societies—the class of folks who have some buckaroos. No lobbyist wants a tour of the CFTC or a photo with a Commissioner. It is all work. And as far as litigation, watch out. That’s long, laborious and lavish—only those with the big bucks can do stage four Quadrakill: litigation.

This brings me to my point, and I do have one, despite those that questioned it. The thing is: we are seeing a lot of stage four Quadrakill dialogue and action out there. There is more trash talk and more action regarding litigation related to financial regulation than ever before. Frankly, it has become an unprecedented problem and a dilemma for regulators. Unfortunately, the thing is: that is part of the purpose of those that talk about or live to litigate.

More Perfect Regulation 
I think we all need to take a step back and think about Quadrakill stage four a little more. Let’s take a breath and think thoughtfully, and a little more calmly than seems to me to have been done in the last several months. This event is the perfect venue to do just that.
In the preamble to the Constitution of the United States, there is this wonderful aspirational language:

“We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.”

“In order to form a more perfect union.”   Those words, “in order to”—they meant that our forefathers were working toward, hoping, aspiring, to form a more perfect union. It wasn’t perfect, and it might not reach perfection, but they were trying to get there.  Here’s something to think about:  those wonderful “planks” toward making that “more perfect union”—establishing justice, insuring domestic tranquility, promoting the general welfare—each one of those distinct factors didn’t in and of themselves create “The More Perfect Union.”  Rather, each facet was a building block that the Founding Fathers intended to use to “get there,” to get to that “More Perfect Union.”   In other words, “providing for the common defense,” wasn’t the be all and end all, but instead it was one of the important pieces used to get to the ultimate goal:  a more perfect union.

 In a similar approach, cost/benefit analyses in regulatory rulemaking are analogous to those discrete building block factors in the Constitution’s preamble.  The thing is: a CBA is not the ultimate goal of rulemaking, although if you listen to some you might think it so.  A CBA is an important piece of reaching the ultimate goal:  a “more perfect regulation.”  Like the framers of our Constitution, regulators aspire to reach objectives that protect the common weal.  That’s our job.  In the recent past, however, our jobs have been made significantly more difficult by a contortion. The thing is: we have seen an obnoxious bastardization of the conduct and use of CBAs in regulatory rulemaking.

This by no means is a new phenomenon. It isn’t a paranormal event.  It has cropped up over the years, time and again, as a convenient tool to scuttle regulatory initiatives.  Its’ use at this moment in history is, however, particularly rampant and greatly galling, given the focus of the regulations that are being decelerated and the harm that was caused to the public as a result of the economic crisis of 2008.

There are a bevy of bellowers booing about the “costs” of regulation.  To those catcalls, I’d simply ask, what were the complete “costs” of the $414 billion taxpayer funded bailout?  What are the “costs” of families losing their homes or of folks who can’t get a job?  What are the “costs” to our economy of skyrocketing oil and gas prices, fueled by unbridled excessive speculative activity?  What could be the added “costs” if regulations that Congress and the President have required are not put in place? My view is that there is not a single benefit to not doing these regulations, but there are unacceptable costs if we don’t go forward. Without these rules and regulations, there will be unacceptable costs to consumers, to businesses, to markets, to our economy and our country.

I wouldn’t go so far as paraphrasing Samuel Johnson and saying that litigation is the last refuge for scoundrels. But, the cost-benefit bellowers are openly trying to impose a discredited economic philosophy (that just happens to serve their financial interests) on regulators by beseeching the courts to adopt their extreme interpretation of our statutory duty to “consider” the costs and benefits of our regulations. This economic philosophy is, in short, that the financial markets work just fine on their own and there’s no need for regulators to ensure a minimum level of safety in these markets or a maximum level of speculation. The market can police itself, thank you very much. They want us to write off the 2008 financial crisis as an aberration and ignore countless reputable scholars who’ve found that the costs of opaque, unregulated derivatives markets are borne by the public. The truth is speculation without limits can fuel bubbles, and left unaccountable, the captains of finance may veer the economy into dangerous waters in search of bigger and riskier profits. In short, these bellowers want us to go beyond a “consideration” of costs and benefits to making their narrow conception of costs (discounting the social costs to the public of deregulation) and benefits (discounting the social benefits of the public of smart regulation), the crucible for judging all financial regulations.

The thing is: CBAs are being used, as I have said before, as a Sword of Damocles over regulatory agencies.  We are virtually paralyzed by intimidation—or, indeed, the reality—of lawsuits brought (haphazardly, in my assessment) on the foundations of allegedly poor CBAs.  When this occurs, regulators are sort of like those ghost hunters seen on television, looking for the scary litigation risk in every corner or closet. Did you hear what it said? “Wha, wha, wha.” We used an especially sensitive machine and after analysis in the lab, it appears that what the voice said was this: “If you regulate, we will litigate,” or perhaps “Ready for stage four Quadrakill.” Hmm, because I thought it just sounded like “Wha, wha, wha.” The thing is: either way, the rulemaking action slows, or slogs to a stop—and that is the clear-cut intent of some of those who threaten, design, and bring, these lawsuits.

Take this example: our position limits rule took up 81 pages in the Federal Register. Guest how much of the text was cost/benefit analysis? 19 pages. Yup, almost a fourth—and yet we’re still getting sued.

At the same time, American citizens and businesses and our economy endure more than is fair for a gallon of gas and the resultant impact on our Gross Domestic Product. We continue to see devalued homes, and continue to face higher-than-they-could-be unemployment rates. The potential for further damage due to a still yet unimplemented new regulatory regime is out there. How do we measure those harsh “costs?”  If those costs are not more scary than the threat of litigation due to cost/benefit analysis, then regulators should seek a new line of work.

So today, I’m suggesting that CBAs be expanded to include not just the quantitative, quantifiable elements of a rule but its qualitative aspects as well. In other words the social costs and benefits need to be taken into account. I by no means want to slow the rulemaking process down in any way but I really believe some of the most important cost-benefit effects of rules go beyond P & L statements, so I’ll ask my colleagues to consider painting a more complete picture of what—without these rules—the societal cost might be. Memories fade with time and we need to be mindful of the costs of not doing these things right in the context of the colossal calamity of late ’08.

The thing is: it’s time to put some sense (and cents) back into CBAs, and to criticisms of rules.  By that I mean, I’d like to see reasonable, accurate, and well-supported analyses, and those who criticize our CBAs should berequired to provide, not “masked data,” with no clear or hard figures, but real, verifiable dollars and cents to rebut our analyses.  If we are all held to the same reasonable standards, not just trying to create ghastly ghosts in an effort to slow the process down, CBAs might actually be useful as they were intended:  as a factor in forming “more perfect regulations.”
Conclusion

Look, I understand that people have to represent themselves and take advantage of the opportunities which exist to make their case, on the Hill, in the agencies, or in court. That doesn’t mean I have to agree with them. It seems to me this has gone too far. They may mean well. I’m just not sure they are well.

The thing is: we had, and have, an economic mess created by lax or non-existent regulations in our financial markets. That isn’t a joke or a scary story for millions of people. It is an unfortunate and seemingly unforgiving reality. We need to do all we can to appropriately implement the Dodd-Frank rules to not only protect consumers, businesses, and markets alike, but to fuel inject the economic engine of our democracy. This new law—and the regulations that go with it if done properly—are the blueprints for how our economy can thrive. If we all work together as honest partners in the rulemaking process, I am confident we not only can, but will move our nation forward.
Thank you.

BACKGROUND NOTES: REPUBLIC OF MAURITIUS

Photo:  Souillac.  Credit:  Wikipedia.
FROM;  U.S. STATE DEPARTMENT  
Geography 
Area: 2,040 sq. km. (787 sq. mi.); 500 miles east of Madagascar, in the Indian Ocean.
Dependencies: Rodrigues Island, the Agalega Islands and Cargados Carajos Shoals; Mauritius also claims sovereignty over the Chagos Archipelago, part of the British Indian Ocean Territory, where U.S. Naval Support Facility at Diego Garcia is located.

Cities: Capital--Port Louis (pop. 148,638). Other cities--Beau Bassin and Rose Hill (110,687), Vacoas-Phoenix (108,186), Curepipe (84,487), Quatre Bornes (81,773).
Terrain: Volcanic island surrounded by coral reefs. A central plateau is rimmed by mountains.
Climate: Tropical; cyclone season mid-December-April.

HISTORY
While Arab and Malay sailors knew of Mauritius as early as the 10th century AD and Portuguese sailors first visited in the 16th century, the island remained uninhabited until colonized in 1638 by the Dutch. Mauritius was populated over the next few centuries by waves of traders, planters and their slaves, indentured laborers, merchants, and artisans. The island was named in honor of Prince Maurice of Nassau by the Dutch, who abandoned the colony in 1710.

The French claimed Mauritius in 1715 and renamed it Ile de France. It became a prosperous colony under the French East India Company. The French Government took control in 1767, and the island served as a naval and privateer base during the Napoleonic wars. In 1810, Mauritius was captured by the British, whose possession of the island was confirmed 4 years later by the Treaty of Paris. French institutions, including the Napoleonic code of law, were maintained. The French language is still used more widely than English.

Mauritian Creoles trace their origins to the plantation owners and slaves who were brought to work the sugar fields. Indo-Mauritians (primarily Hindus, but also Muslims and Christians) are descended from immigrants who arrived in the 19th century from the Indian subcontinent to work as indentured laborers after slavery was abolished in 1835. Franco-Mauritians still control most of the large sugar estates and are active in business and banking. As the Indo-Mauritian population became numerically dominant and the voting franchise was extended, political power shifted from the Franco-Mauritians and their Creole allies to the Indo-Mauritian Hindus.

Elections in 1947 for the newly created Legislative Assembly marked Mauritius' first steps toward self-rule. An independence campaign gained momentum after 1961, when the British agreed to permit additional self-government and eventual independence. A coalition composed of the Mauritian Labor Party (MLP), the Muslim Committee of Action (CAM), and the Independent Forward Bloc (IFB)--a traditionalist Hindu party--won a majority in the 1967 Legislative Assembly election, despite opposition from Franco-Mauritian and Creole supporters of Gaetan Duval's Mauritian Social Democratic Party (PMSD). The contest was interpreted locally as a referendum on independence. Following a period of communal strife, brought under control with assistance from British troops, Seewoosagur Ramgoolam, MLP leader and chief minister in the colonial government, became the first prime minister at independence, on March 12, 1968.

GOVERNMENT AND POLITICAL CONDITIONS
Mauritian politics are vibrant and characterized by coalition and alliance building. All parties are centrist and reflect a national consensus that supports democratic politics and a relatively open economy with a strong private sector. Mauritius became a republic on March 12, 1992. The most immediate result was that a Mauritian-born president became head of state, replacing Queen Elizabeth II. Under the amended constitution, political power remained with parliament, with the office of the president being largely ceremonial. The National Assembly elects the president. The Council of Ministers (cabinet), responsible for the direction and control of the government, consists of the prime minister (head of government, who is also the leader of the majority party in the legislature), and about 24 ministers. The unicameral National Assembly has up to 70 deputies. Sixty-two are elected by universal suffrage, and as many as eight "best losers" are chosen from the runners-up by the Electoral Supervisory Commission using a formula designed to give at least minimal representation to minority ethnic communities. Elections are scheduled at least every 5 years. Parliamentary elections were last held in May 2010. The next elections are expected to be held in 2015.

Mauritian law is an amalgam of French and British legal traditions. The Supreme Court--a chief justice and 18 other judges--is the highest judicial authority. There is an additional right of appeal to the Queen's Privy Council in London. Local government has nine administrative divisions, with municipal and town councils in urban areas and district and village councils in rural areas. The island of Rodrigues forms the country's 10th administrative division.

Alone or in coalition, the Mauritius Labor Party (MLP) ruled from 1947 through 1982, returning to power from 1995 to 2000, and again regaining power in 2005. From 1982 through 1995, power was in the hands of the Mauritian Militant Movement (MMM), the Mauritian Socialist Party (PSM), and the Militant Socialist Movement (MSM) in various combinations and alliances. In December 1995, the MLP returned to power, this time in coalition with the MMM. Labor's Navinchandra Ramgoolam, son of the country's first prime minister, became prime minister himself. Ramgoolam dismissed his MMM coalition partners in mid-1997, leaving Labor in power with several small parties allied with it. Elections in September 2000 saw the re-emergence of the MSM-MMM as a winning alliance, and Anerood Jugnauth once again became the prime minister with the caveat that mid-term, the leader of the MMM party would take over as prime minister and Prime Minister Jugnauth would become the next President of the Republic. In September 2003, in keeping with the campaign promise which forged the coalition, Jugnauth stepped down as Prime Minister and Deputy Prime Minister Paul Raymond Berenger became Prime Minister. One month later, the Berenger-led National Assembly elected Anerood Jugnauth as President of the Republic. Berenger became the first Catholic, Franco-Mauritian to head the government. The move created a historic precedent of having a non-Hindu, non-majority member head the national government. The 2005 parliamentary elections returned Navinchandra Ramgoolam to office as prime minister, and he retained that position following the 2010 elections. President Jugnauth resigned his office on March 31, 2012. Vice President Monique Ohsan Bellepeau became acting President. The Mauritian constitution provides that in the event of a vacancy in the office of president, the vice president assumes the office, but only until such time as the prime minister appoints, and the National Assembly concurs, in the appointment of a new president.

Mauritius ranked first among all African countries in the 2011 Ibrahim Index, a product of the Mo Ibrahim Foundation that measures the effective delivery of public goods and services to citizens in Africa. The index ranked 53 African countries according to four overarching dimensions: safety and rule of law, participation and human rights, sustainable economic opportunity, and human development.

FOREIGN RELATIONS
Mauritius has strong and friendly relations with the international community, including with India and the countries of southern and eastern Africa. It is a member of the African Union (AU), World Trade Organization (WTO), the Commonwealth, La Francophonie, the Southern African Development Community (SADC), the Indian Ocean Commission, the Common Market for Eastern and Southern Africa (COMESA), and the Indian Ocean Rim Association.

Trade, commitment to democracy, colonial and cultural ties, and the country's small size are driving forces behind Mauritian foreign policy. The country's political history and dependence on Western markets have led to close ties with the European Union and its member states, particularly the United Kingdom and France, which exercises sovereignty over neighboring Reunion.

Considered part of Africa geographically, Mauritius has friendly relations with other African states in the region, particularly South Africa, by far its largest continental trading partner. Mauritian investors have gradually begun entering African markets, such as nearby Madagascar and Mozambique (though the pace of investment in Madagascar has cooled considerably since the 2009 coup d’etat in that country). Mauritius coordinates much of its foreign policy with the Southern African Development Community and the African Union.

Relations with India are strong for both historical/cultural and commercial reasons. Foreign embassies in Mauritius include Australia, China, Egypt, France, India, Libya, Madagascar, Pakistan, Russia, South Africa, the United Kingdom, and the United States.

DEFENSE
Mauritius does not have a standing army. All military, police, and security functions are carried out by approximately 10,000 active-duty personnel under the command of the Commissioner of Police. The 8,000-member National Police is responsible for domestic law enforcement. The roughly 1,200-member Special Mobile Force (SMF) and the roughly 740-member National Coast Guard are the only two paramilitary units in Mauritius. Both units are composed of police officers on lengthy rotations to those services.

The SMF is organized as a ground infantry unit and engages extensively in civic works projects. The Coast Guard, led by a detailee from the Indian Navy, has four patrol craft for search-and-rescue missions and surveillance of territorial waters, and 41 small craft for coastal surveillance and search and rescue. The Coast Guard is also equipped with three aircraft (two Dornier and one Defender aircraft). A 90-member police helicopter squadron assists in search-and-rescue operations. There also is a special supporting unit of nearly 400 personnel trained in riot control.

Military advisers from the United Kingdom and India work with the SMF, the Coast Guard, and the Police Helicopter Unit, and Mauritian police officers are trained in the United Kingdom, India, and France. The United States provides training to Mauritian security officers in such fields as counterterrorism methods, forensics, seamanship, and maritime law enforcement. In May 2010, the U.S. Government donated three Safeboat Harbor Patrol boats with an estimated value of $1.1 million to the Government of Mauritius.

U.S.-MAURITIAN RELATIONS
Official U.S. representation in Mauritius dates from the end of the 18th century. An American consulate established in 1794 closed in 1911. It was reopened in 1967 and elevated to embassy status upon the country's independence in 1968. Since 1970, the mission has been directed by a resident U.S. ambassador.

Relations between the United States and Mauritius are cordial and revolve largely around trade and investment. The United States is Mauritius' third-largest market but ranks 13th in terms of exports to Mauritius. Principal imports from the United States include plastic articles, agricultural/construction/industrial machinery and equipment, medical and surgical instruments, precious stones and jewelry, aircraft parts (for Air Mauritius), automatic data processing machines, casino slot machines, outboard motors, books and encyclopedias, and industrial chemicals.

Mauritian exports to the United States include apparel, sugar, non-industrial diamonds, jewelry articles, live animals, sunglasses, processed specialty foods, rum, and cut flowers. Mauritian products that meet the rules of origin are eligible for duty- and quota-free entry into the U.S. market under the African Growth and Opportunity Act. In September 2006, the Governments of Mauritius and the United States signed a Trade and Investment Framework Agreement to remove impediments and further enhance trade and investment relations between the two countries. Negotiations for a Bilateral Investment Treaty are ongoing.

More than 200 U.S. companies are represented in Mauritius. About 25 have offices in Mauritius, serving the domestic and/or the regional market, mainly in the information technology, textile, fast food, express courier, and financial services sectors. U.S. brands are sold widely. Several U.S. franchises, notably Kentucky Fried Chicken, Pizza Hut, and McDonald's have been operating for a number of years in Mauritius.

The United States funds a small military assistance program. The embassy also manages development assistance funds, special self-help funds for community groups and nongovernmental organizations, and a democracy and human rights fund.

U.S. ARMY PFC AND AFGHAN SECURITY GUARD PULL SECURITY

FROM:  U.S. DEPARTMENT OF DEFENSE
U.S. Army Pfc. Jeffery Penning and an Afghan security guard pull security during a roving patrol on Observation Post Mustang in Afghanistan's Kunar province, May 3, 2012. Penning is assigned to the 4th Infantry Division's Company C, 1st Battalion, 12th Infantry Regiment. U.S. Army photo by Spc. Jenny Luince, May 3, 2012.

U.S. SECRETARY OF DEFENSE MEETS WITH CROWN PRINCE OF BAHRAIN

FROM:  AMERICAN FORCES PRESS SERVICE
U.S. Defense Secretary Leon E. Panetta, right, escorts Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa to a meeting at the Pentagon, May 11, 2012. The two leaders discussed issues of mutual concern. DOD photo by Erin A. Kirk-Cuomo. 

Panetta, Bahraini Crown Prince Meet at Pentagon
WASHINGTON, May 11, 2012 - Secretary of Defense Leon E. Panetta and Bahraini Crown Prince Salman Bin Hamad Al Khalifa met today at the Pentagon to discuss regional and bilateral issues, a senior DOD official said.

Panetta affirmed the long-standing commitment of the United States to a strong partnership with both the people and the government of Bahrain, said Navy Capt. John Kirby, deputy assistant secretary of defense for media operations.

The two leaders discussed the full range of regional and bilateral issues, including Bahrain's support of United States Naval Forces Central Command, Kirby said.

They also discussed the Bahraini government's ongoing efforts to implement the recommendations of the Bahrain Independent Commission of Inquiry report, Kirby said. The commission was established by the King of Bahrain in late June 2011 to investigate the civil unrest that had occurred in Bahrain in February and March of that year.

The defense secretary noted the steps already taken to implement the report's recommendations, Kirby said. But Panetta, he added, also expressed his belief that work remains to fully address ongoing human rights issues, including individual cases.

Panetta also acknowledged the release of previously requested items and services that will help Bahrain maintain its external defense capabilities, Kirby said. The United States government, he added, will continue to withhold materials that are predominantly intended for use by police and other internal security forces.

MEMBER OF HIGH PEACE COUNCIL MURDERED IN AFGHANISTAN

Photo:  Sunset in Afghanistan. Credit:  U.S. Air Force
FROM:  AMERICAN FORCES PRESS SERVICE
ISAF: Murdered Afghan Official Rejected Insurgents' Agenda
From an International Security Assistance Force Joint Command News Release
KABUL, Afghanistan, May 13, 2012 - An influential member of Afghanistan's High Peace Council and Islamic Council member, Moulavi Arsala Rahmani, was murdered while reportedly riding in a vehicle on his way to work today, International Security Assistance Force officials reported.

The ISAF offers its condolences and prayers to Rahmani's family and loved ones, officials said.

Rahmani, a former Taliban member, chose to make a positive contribution to his nation by turning his back on an insurgent movement that continues to be wholly detrimental to the future of Afghanistan, officials said.

Rahmani's decision to help make the future brighter for Afghans serves as an inspiration to all, and his contributions will be missed, officials said.

The only possible aim of this attack is to intimidate those, who like Rahmani, want to help make Afghanistan a better place for its citizens and the region, officials said. This attack is clear evidence that those who oppose the legitimate government of Afghanistan have absolutely no interest in supporting the peace process on any level but through murder, thuggery, and intimidation.

No one is underestimating the challenges in Afghanistan, or the desires of the enemies of peace to continue threatening the Afghan people and their government, officials said. The entire coalition is steadfast in its resolve, officials added, and remains ever-more confident that the government of Afghanistan is up to the tasks that lie ahead.

The ISAF and Afghan National Security Forces remain committed to stop acts of terror in order to build a secure environment that promotes lasting peace and prosperity for the Afghan people, officials said

AFGHAN SECURITY FORCES ATTACKS ON ISAF TRAINERS DEEMED AS "INDIVIDUAL ACTS OF GRIEVANCE"

Photo:  Afghan Military Personnel in Firefight.  Credit:  U.S. Army.
FROM:  AMERICAN FORCES PRESS SERVICE
Most 'Green on Blue' Attacks Individually Motivated
By Army Sgt. 1st Class Tyrone C. Marshall Jr.

WASHINGTON, May 11, 2012 - The Defense Department believes recent incidents in which members of the Afghan National Security Forces have attacked their coalition trainers are individual acts of grievance, a senior DOD spokesman said today.
"It's often difficult to determine the exact motivation behind an attacker's crime because they are, very often, killed in the act," Navy Capt. John Kirby, deputy assistant secretary of defense for media operations, told reporters at the Pentagon.

Kirby said these types of attacks have only been tracked since 2007. Between 55 and 60 such attacks, he added, have occurred during this time.

"Based on the limited evidence that we have been able to collect, we believe that less than half, somewhere in the neighborhood of three to four out of every 10 [attacks] is inspired, or resourced, or planned or executed by the Taliban or Taliban sympathizers," he said. "In other words, that it's related to an infiltration attempt."

Kirby said it may not even be a deliberate infiltration, but a "legitimate soldier or police officer [who] turned Taliban."

Yet, the majority of attacks, he said, are acts of individual grievance.
"You know how seriously affairs of honor are to the Afghan people," Kirby said. "We believe, again, that most of these [attacks] are acted out as an act of honor for most of them representing a grievance of some sort."

The spokesman said Marine Corps Gen. John R. Allen, commander of International Security Assistance Forces in Afghanistan, believes the recent video of U.S. Marines urinating on the bodies of Taliban inspired at least one attack.

Regardless of the motivations, Kirby emphasized the attacks leave lasting impressions on the families of the service members who've been killed.

"We believe the majority of all of them are individual acts of grievance, but look, that doesn't lessen the pain for family members who suffer from this," he said. "It doesn't lessen the importance of it whether it's an act of infiltration or not.

"It's an issue that we're taking very, very seriously," Kirby added. "But we don't believe the majority of them are Taliban inspired, resource planned [or] executed."

British Army Lt. Gen. Adrian Bradshaw, ISAF's deputy commander, told Pentagon reporters during a May 9 video teleconference from Kabul that Afghanistan's National Army and police force are working to "root out this problem with great determination."
"We've had several hundred National Directorate of Security counterintelligence operatives now join the Afghan National Army on attachment," Bradshaw told reporters. "They are embedded down to battalion level, and they are carrying out rigorous counterintelligence operations. The commanders are taking great note of where their people go on leave [and] whether their families have come under pressure."

The British general said the vetting process for Afghan army and police recruits has been refined and there's also "retrospective vetting of people in the force" with a "ruthless" approach to those members displaying signs of enemy complicity. "So a number of effective measures have been taken, and we continue to bear down on this problem very seriously indeed," Bradshaw said.

U.S. STATE DEPARTMENT CONCERNED WITH SITUATION IN MALI

FROM:  U.S. STATE DEPARTMENT

The Political and Security Situation in Mali

Press Statement

Victoria Nuland
Department Spokesperson, Office of the Spokesperson

Washington, DC

May 11, 2012

The United States is deeply concerned about the deteriorating political situation in Mali. We call on the junta leader Sanogo and the CNRD to step aside and allow for the return of full civilian rule. The CNRD’s continued interference in the government has undermined democracy in Mali, led to the de facto partition of the country, and crippled the ability of the country to respond to a developing humanitarian crisis in northern Mali.

We hold the CNRD directly responsible for the increasing suffering of the Malian people. The military needs to stand aside completely in order to let the interim administration led by President Dioncounda Traoré and Prime Minister Cheick Modibo Diarra govern freely and to organize presidential elections as expeditiously as possible. A strong, stable democratic government in Mali is essential in order for the country to deal successfully with its multiple economic, social, and security challenges.

The U.S. will maintain its targeted sanctions against Captain Sanogo and other CNRD leaders as well as the Malian government until the military stands down and democracy is returned to Mali.

SAILORS FROM USS UNDERWOOD RESCUE PERUVIAN FISHERMEN

FROM:  U.S. NAVY 

PACIFIC OCEAN (May 10, 2012) Sailors assigned to the Oliver Hazard Perry-class guided-missile frigate USS Underwood (FFG 36) assist a disabled Peruvian fishing vessel in the Pacific Ocean. The fishermen were stranded at sea for ten days after their transmission failed. Underwood is deployed to Central and South America and the Caribbean in support of Southern Seas 2012. (U.S. Navy photo by Mass Communication Specialist 2nd Class Stuart Phillips/Released) 


Underwood Rescues Peruvian Fishermen
By Lt. Stephanie Homick, Southern Seas 2012 Public Affairs
USS UNDERWOOD, At Sea (NNS) -- Sailors assigned to the Oliver Hazard Perry-class frigate USS Underwood (FFG 36) rescued six Peruvian fishermen drifting in a disabled vessel off the coast of Peru, May 10.


The fishermen were isolated at sea for ten days after developing mechanical problems with their vessel. They were unable to radio for help after their 12-volt batteries died.


The fishermen signaled Underwood as the ship passed by. Underwood Sailors then boarded a rigid-hulled inflatable boat (RHIB) and approached the vessel.


"When we got there, [we saw] it was this small, broken down fishing boat," said Gas System Turbine (Mechanical) 3rd Class (SW) Brian Stankowitz. "There was a kid who was about 11 years old and he was using a manual bilge pump because they were taking on a lot of water. They were basically sinking." 


After providing food and water to the fishermen, the Sailors returned to Underwood to recharge the fishermen's 12-volt batteries so they would not have to rely on the manual bilge pump to keep afloat. 


"There was a language barrier for me because I don't speak Spanish, but when we gave them food and water, I could see the thanks in their eyes," said Stankowitz. "They ate all the food and drank all the water immediately and they were laughing."


After resupplying the fishermen, the RHIB was kept in the water on standby to assist as necessary until the Peruvian coast guard arrived. 


"We were out there for about five hours and then we came back and did a crew swap so the RHIB could go back out and take care of any needs that might come up," said Engineman 2nd Class (EXW) Zachary White, who was sent to evaluate the condition of the boat's outboard motor and assist with repairs if possible. "We swapped in a fresh crew so we could stay by their side until they got help."


White and Stankowitz expressed how good it felt to be in the RHIB, assisting fellow mariners in a significant way.


"We sometimes forget the big picture of what we do when we deploy," said White. "We get worn out and we get tired, but when we actually go out and help people that need help and it's a matter of life or death, it opens your eyes to what we're doing while we're out here. It's a very, very good feeling." 


"I think the biggest thing for me is that it was a great way to start a deployment," said Stankowitz. "We're just giving and helping people."


Underwood is deployed to Central and South America and the Caribbean in support of Southern Seas 2012.


U.S. Naval Forces Southern Command and U.S. 4th Fleet (COMUSNAVSO/C4F) supports U.S. Southern Command joint and combined full-spectrum military operations by providing principally sea-based, forward presence to ensure freedom of maneuver in the maritime domain, to foster and sustain cooperative relationships with international partners and to fully exploit the sea as maneuver space in order to enhance regional security and promote peace, stability, and prosperity in the Caribbean, Central and South American regions.

CDC SAYS SUNBURNS, TANNING BEDS ARE COMMON HIGH-RISK BEHAVIORS CAUSING SKIN CANCER

Photo:  Credit NASA  
FROM:  U.S. CENTERS FOR DISEASE CONTROL
High-risk behaviors for skin cancer common among young adults
Half of adults younger than age 30 report being sunburned; indoor tanning rates highest among white womenYoung adults are increasing their risk for developing skin cancer, according to two studies by the Centers for Disease Control and Prevention and the National Cancer Institute.

One study, of people aged 18-29, found that 50 percent reported at least one sunburn in the past year, despite an increase in protective behaviors such as sunscreen use, seeking shade, and wearing long clothing to the ankles. Another report found that indoor tanning is common among young adults, with the highest rates of indoor tanning among white women aged 18-21 years (32 percent) and 22-25 years (30 percent). Both reports evaluated data from the National Health Interview Survey’s Cancer Control Supplement. They are published in today’s issue of CDC’s Morbidity and Mortality Weekly Report.

“More public health efforts, including providing shade and sunscreen in recreational settings, are needed to raise awareness of the importance of sun protection and sunburn prevention to reduce the burden of skin cancer,” said Marcus Plescia, M.D., M.P.H., director of CDC’s Division of Cancer Prevention and Control. “We must accelerate our efforts to educate young adults about the dangers of indoor tanning to prevent melanoma as this generation ages.”

Skin cancer is the most common form of cancer in the United States, and melanoma is the most deadly type of skin cancer.  Exposure to ultraviolet radiation from the sun and from indoor tanning equipment is the most important preventable risk factor for skin cancer. Indoor tanning before age 35 increases a person’s risk of getting melanoma by 75 percent. Sunburn indicates too much exposure to ultraviolet radiation.

“Efforts to shape public policies awareness regarding indoor tanning generally have been targeted toward adolescents rather than young adults to help change behavior of minors,” said Anne Hartman, study coauthor from the Applied Research Program of NCI’s Division of Cancer Control and Population Sciences.  “This study suggests that as adolescents mature into young adults, they may continue to need environmental support to develop and maintain healthy behaviors and to change their perspectives about tanning.”
Findings from the two studies:
Among adults aged 18-29 years, whites reported the highest sunburn prevalence (66 percent in 2010) whereas the lowest rates were among blacks (11 percent in 2010). Although sunburn is not as common among blacks as compared to whites, blacks can get sunburned.
The most common sun protective behaviors reported among women aged 18-29 years in 2010 were using sunscreen (37 percent) and staying in the shade (35 percent).  White women were less likely to stay in the shade, and black women were less likely to use sunscreen compared to other racial/ethnic groups. Among men aged 18-29 years, the most common sun protective behaviors reported in 2010 were wearing long clothing to the ankles (33 percent) and staying in the shade (26 percent).

Among white women aged 18-21 years who reported indoor tanning, an average of 28 visits occurred in the past year. White women aged 18-21 years were the most common users of indoor tanning.

The highest prevalence of indoor tanning was reported among white women aged 18-21 years residing in the Midwest (44 percent), and those aged 22-25 years in the South (36 percent).

Among white adults who reported indoor tanning, 58 percent of women and 40 percent of men used one 10 or more times in the previous year.

People should take these steps to protect themselves from ultraviolet light exposure that could lead to skin cancer by:
Seeking shade, especially during midday hours (10 a.m. to 2 p.m.).
Wearing clothing to protect exposed skin.
Wearing a wide-brimmed hat to shade the face, head, ears, and neck.
Wearing wrap-around sunglasses that block as close to 100 percent of ultraviolet A (UVA) and ultraviolet B (UVB) rays as possible.  Sunglasses safeguard your eyes from UVA and UVB rays, protect the tender skin around your eyes from sun exposure, and reduce the risk of cataracts and ocular melanoma.
Using sunscreen with sun protective factor 15 or higher, and both UVA and UVB protection.
Avoiding indoor tanning.

LT. BEN. ADRIAN BRADSHAW OF BRITISH ARMY SAYS CAMPAIGN ON TRACK IN AFGHANISTAN

Photo:  U.S. Navy Convoy In Afghanistan.  Credit:  U.S. Navy

FROM:  AMERICAN FORCES PRESS SERVICE

Afghanistan Campaign on Track, Deputy Commander Says

By Karen Parrish

WASHINGTON, May 9, 2012 - The message from coalition commanders in Afghanistan is loud and clear that the campaign is "in a good place right now," the deputy commander of the NATO-led International Security Assistance Force said today.

Lt. Gen. Adrian J. Bradshaw of the British army told Pentagon reporters today via video link from Kabul that Afghan forces are gaining depth, and their partnered operations with ISAF troops in 2011 and this year have reversed Taliban and Haqqani network momentum.

"Across the theater, [we've seen] Afghan national security forces increasing in strength, capability and confidence," Bradshaw said. Meanwhile, he added, coalition commanders get reliable reporting of Taliban commanders feeling under pressure with lack of weapons, equipment and money.

Afghan army and police forces are coordinating with civil authorities to plan, lead and carry out sophisticated, brigade-level operations, the general said.

"ISAF troops [are] more and more ... providing advice and assistance, but letting the Afghans get to grips with the major combat operations," he said. "They have surprised us, and I think they've surprised themselves, with how well they've performed in a whole range of different sorts of operations across the theater."

Bradshaw said he has witnessed partnered operations teaming Afghan and Italian, U.S. and British forces over recent weeks. In all cases, he added, he's seen "high morale, an awareness of the threat, but a confidence that we are on track."

The strategic agreement President Barack Obama and Afghan President Hamid Karzai signed last week, leading up to NATO's summit in Chicago later this month, enhances Afghan confidence that the coalition will support security efforts beyond 2014, the general said.

"It sets a very good baseline for the Chicago conference, where we hope and expect that nations will come forward and commit funding to the Afghan forces for beyond 2014," Bradshaw said. "And so it's a major achievement."

Rebuilding the security relationship with Pakistan is important to future Afghan security, the general noted.

"We've got a common interest in addressing the terrorist insurgent problem that crosses the Pakistan-Afghanistan border," he said. NATO and Pakistani officials are in talks, Bradshaw added, "and things are moving in the right direction there."

Pakistan is also important to the long-term defeat of the Taliban, he said.

"As long as [insurgents] can operate with relative impunity from sanctuaries outside the country, it's quite difficult to defeat them militarily," he said. "I would argue that in a counterinsurgency campaign, it's got to be a combination of military, economic, political and other measures anyway to effect a total elimination of this problem."

The deputy commander said coalition and Afghan leaders take very seriously the issue of "green on blue" incidents, in which Afghan army and police attack and sometimes kill coalition members. Bradshaw said the number of attacks is small, considering the Afghan force has grown to a third of a million very rapidly in recent years. "Nevertheless," he added, "we treat every one with extreme seriousness, and I can tell you that our Afghan partners do as well."

Afghan commanders are aggressively pursuing green-on-blue countermeasures, including embedding counterintelligence operatives down to the battalion level, where they are carrying out rigorous counterintelligence operations, the general said. Commanders also regularly vet new recruits and their established troops, he added.

"The commander of the Afghan National Army has told his people who have family in Pakistan that they need to get their families into country," he said, "and that his commanders are to take note of any possible linkages with insurgents [so they know] if people have come under pressure when they go on leave. And if there are doubts, ... then they're asked to leave the service," he added.

Overall, the campaign in Afghanistan aims to keep "ruthless pressure" on insurgents, Bradshaw said.

"We've got plenty of work still to do," he acknowledged. "We've got to continue building the capability, the institutional depth, I would say, of the Afghan national security forces."

Coalition leaders believe Afghan forces will take on the counterinsurgency mission by the end of 2014 and execute it to good effect, the general said.

"By that time, we expect to have considerably enhanced their logistics capabilities, their leadership, their capabilities across a range of areas which are being built right now," Bradshaw added. "We have great confidence that they'll be able to take on the job and maintain security for the government of Afghanistan."

SEC CHARGES FORMER OIL COMPANY EXECUTIVE WITH INSIDER TRADING

Photo:  NYSE.  Credit:  Wikimedia
FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
May 11, 2012
The Securities and Exchange Commission today announced charges against a former executive at a Bakersfield, Calif.-based oil and gas production company for insider trading in his company’s stock using confidential information received while he was the CEO and chairman of the board.

The Commission alleges that Frank Lynn Blystone received e-mail updates prior to his March 5, 2010, retirement from Tri-Valley Corporation that contained confidential information about the company’s ongoing efforts to raise capital and problems it had encountered in a securities offering. Based on the non-public information he received, Blystone liquidated stock he held in a brokerage account shortly before a Tri-Valley announcement on April 6, 2010, that it had entered into an agreement with six institutional investors to sell its securities at a deep discount from the prevailing market price. Blystone avoided losses of approximately $36,000 when the company’s stock price fell 38 percent after the announcement.

Blystone has agreed to pay $75,000 to settle the Commission’s charges without admitting or denying the allegations.

According to the Commission’s complaint filed in the U.S. District Court for the Eastern District of California, based on the confidential information he received, Blystone concluded that the terms of a contemplated securities offering by Tri-Valley would be onerous. He foresaw that either the company’s securities would be sold at a discount to the market price or additional securities would be issued if the price of the stock fell, which would dilute the value of Tri-Valley’s stock. After leaving the company, Blystone’s concerns about Tri-Valley’s securities offering were reinforced when he learned of plans to sell two oil drilling leases in what he characterized in an e-mail to a friend as a “fire sale.” Therefore, Blystone liquidated 50,100 shares of Tri-Valley stock that he held in a brokerage account. He sold 90 percent of those shares on April 5, the day before Tri-Valley’s public announcement.

The complaint charges Blystone with violating Section 17(a)(1) and (3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5(a) and (c) thereunder. Blystone agreed to pay disgorgement of $36,267, prejudgment interest of $2,493, and a penalty of $36,267. He also agreed to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 and barring him from serving as an officer or director of a public company. The settlement is subject to court approval.