DealBook: Obama’s Nominee for S.E.C. Tries to Allay Skepticism

Mary Jo White’s path to the Securities and Exchange Commission has reached a crucial juncture: the Congressional charm campaign.

Lawmakers are scrutinizing Ms. White ahead of her Senate confirmation hearing, raising questions about the former prosecutor’s lack of regulatory experience and the challenge of policing Wall Street firms she recently defended in private practice. But Ms. White is seeking to quell concerns about potential conflicts of interest.

She recently scheduled meetings with Senate Banking Committee members, who must clear her nomination, and answered a 20-page boilerplate questionnaire detailing her qualifications, according to a copy provided to The New York Times. The document sheds new light on her list of Wall Street clients, including little-known work performed for HSBC’s former chief executive. It also describes her ties to New York Democratic causes and laurels she earned both as a defense lawyer and federal prosecutor.

The questionnaire, created by the banking committee, focused significant attention on her movement through the revolving door between government service and private practice, a concern that has loomed since President Obama nominated Ms. White in January.

“As a government official, I believe I have an established track record and the reputation of being tough, but fair,” she said in the document.

Ms. White also offered a previously undisclosed concession, vowing “as far as can be foreseen,” never to return to Debevoise & Plimpton, where she had built a lucrative legal practice. To avert potential conflicts stemming from her work on behalf of Wall Street giants, Ms. White had already agreed to recuse herself for one year from most matters that involve former clients.

While Ms. White’s nomination is expected to sail through the committee before receiving full Senate approval, four Congressional officials who spoke anonymously warned that some Democrats have lingering reservations.

The Democrats note that her husband, John W. White, is co-chairman of the corporate governance practice at Cravath, Swaine & Moore, where he represents many of the companies that the S.E.C. regulates. They also question whether Ms. White’s recusals, even if well-intentioned, could cripple her ability to run the agency.

In a meeting on Tuesday with Senator Sherrod Brown, Democrat of Ohio, Ms. White did little to alleviate the fears.

“Senator Brown respects Ms. White’s credentials and experience, but is concerned with Washington’s long-held bias toward Wall Street,” his spokeswoman, Meghan Dubyak, said in a statement. “He pushed Ms. White,” to explain “whether her previous employment or her spouse’s current employment could cause her to recuse herself from key business facing the S.E.C.” The agency has already fallen behind in writing dozens of new rules for Wall Street.

Ms. White’s supporters counter that, before the White House announced the appointment, the Office of Government Ethics vetted her disclosures. The nonpartisan officials concluded that, even with her recusals, Ms. White could effectively run the agency.

Her supporters also trumpet her long tenure as a tenacious prosecutor. During stints as a federal prosecutor in Brooklyn and as the first woman United States attorney in Manhattan, she helped oversee the prosecution of the crime figure John Gotti and directed the case against those responsible for the 1993 World Trade Center bombing. The cases won her praise from several lawmakers.

Ms. White still has time to win over remaining skeptics. Her confirmation hearing is not expected until the week of March 11, Congressional officials briefed on the matter said.

Until then, Ms. White is blitzing through the halls of Congress, a routine practice for nominees. She began her charm offensive at the top of the banking committee’s roster, visiting this month with the Democratic chairman, Senator Tim Johnson, of South Dakota. A Congressional official briefed on the matter said Ms. White performed well at the gathering, and no major issues arose.

In the next round of meetings, she will face off with a more liberal arm of the committee known to scrutinize nominees. After meeting Mr. Brown, Ms. White is scheduled to see Senator Jeff Merkley, Democrat of Oregon. She also will meet Elizabeth Warren, the Massachusetts Democrat who is an outspoken critic of Wall Street, Ms. Warren’s office confirmed on Tuesday.

Even if Ms. White fails to satisfy lawmakers’ concerns, the meetings are an important step in clearing the way for her appointment.

“Senators will have a chance to size Mary Jo up, and I believe will come away with a great sense of comfort that she’s a candidate of true quality,” said Harvey Pitt, who passed through the confirmation process in 2001 to lead the S.E.C.

He noted that additional disclosures could bolster her candidacy. “I do think she will need to provide a level of comfort to the committee that she is aware of the issue, has a definitive plan for navigating through the potential conflict issues, and will be completely open about when she has a potential recusal issue, and how she has handled it,” he said.

Ms. White, a political independent, assured lawmakers in her questionnaire that she was “completely independent of political or personal influences.” She did disclose, however, $13,000 in campaign donations to Democratic candidates. She also served on the campaign committee of a Democrat who had run for New York attorney general.

Her ties to Debevoise — and its clients — are more significant; she represented JPMorgan Chase, UBS and Michael Geoghegan, the former head of HSBC.

Ms. White, 65, said this month said that she would retire from Debevoise after taking over the S.E.C. and would forgo the firm’s typical retirement perks: office space and a free BlackBerry. She also will sever financial ties to the firm during her term at the S.E.C., taking an upfront lump-sum retirement payment rather than collecting a monthly installment of $42,500.

Her husband has also offered concessions. He agreed to convert his partnership at Cravath, Swaine & Moore from equity to nonequity status and promised not to “communicate directly” with the S.E.C. about rule-making. Ms. White will not participate in a matter with a direct effect on his compensation.

In line with a standard move for federal appointees, Ms. White further agreed to recuse herself for one year from voting on enforcement cases involving Debevoise clients. There are limitations to the policy, though, in case it is “in the public interest” and a “reasonable” person would not object.

Some lawmakers dismiss questions about her potential conflicts, but still question her mastery of regulatory minutiae. While Ms. White is a skilled litigator, she lacks experience in financial rule-writing, unlike a predecessor, Mary Schapiro, a lifelong regulator who ran the S.E.C. for nearly four years.

In her questionnaire, Ms. White highlighted her role as a director of the Nasdaq exchange and other experiences that she said gave her “a firm grounding” in securities laws.

She also, inadvertently, drew a connection to Ms. Schapiro. Like Ms. Schapiro, Ms. White is an animal lover, currently serving as a board member of the American Society for the Prevention of Cruelty to Animals.

She agreed to step down from the board once she is sworn in at the S.E.C.

A version of this article appeared in print on 02/27/2013, on page B1 of the NewYork edition with the headline: Nominee For S.E.C. Tries to Allay Skepticism.
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Fed Chairman Defends Stimulus Efforts


WASHINGTON – The Federal Reserve chairman, Ben S. Bernanke, on Tuesday downplayed objections raised by some Fed officials about the central bank’s efforts to stimulate the economy, saying the policies are both necessary and effective.


Mr. Bernanke, in written testimony submitted to the Senate Banking Committee, also urged Congress and the Obama administration to replace the sequestration cuts scheduled to begin Friday with a plan to reduce federal deficits more gradually.


“Although monetary policy is working to promote a more robust recovery, it cannot carry the entire burden of ensuring a speedier return to economic health,” Mr. Bernanke said. He warned that the combination of previous spending cuts and sequestration “could create a significant headwind for the economic recovery.”


Still, Mr. Bernanke was relatively upbeat about the health of the broader economy, which he described as growing at a “moderate if somewhat uneven pace.”


He said disappointing growth in the fourth quarter “does not appear to reflect a stalling-out of the recovery.” Consumer demand kept rising and, he said, “Available information suggests that economic growth has picked up again this year.”


Mr. Bernanke, who reports to Congress on monetary policy twice each year, used his written testimony to strongly defend the Fed’s expansion of its economic stimulus campaign in September and December to reduce unemployment more quickly. He will answer questions from the Senate committee Tuesday morning, then testify before the House Financial Services Committee on Wednesday morning.


The Fed, which has amassed almost $3 trillion in Treasury and mortgage-backed securities, is expanding those holdings by $85 billion a month until it sees clear improvement in the labor market. It plans to hold short-term interest rates near zero even longer, at least until the unemployment rate falls below 6.5 percent.


“In the current economic environment, the benefits of asset purchases, and of policy accommodation more generally, are clear,” Mr. Bernanke said. “Monetary policy is providing important support to the recovery” while keeping inflation in check.


The asset purchases and the interest-rate policy are designed to reduce borrowing costs for businesses and consumers. Mr. Bernanke said the recovery of the housing market and higher sales of automobiles, among other durable goods, demonstrated the benefit of the Fed’s campaign.


Fed Governor Jeremy C. Stein and some other Fed officials have expressed concern in recent months that low interest rates are encouraging excessive risk-taking by investors pursuing higher returns. Mr. Stein in a recent speech highlighted rising demand for junk bonds and certain kinds of real estate investments, and shifts in bank balance sheets, as areas of potential concern.


Mr. Bernanke said Tuesday that the Fed takes these concerns “very seriously,” noting that the central bank has significantly expanded its efforts to monitor financial markets, and has given greater priority to financial regulation.


But he noted that low interest rates also were helping to strengthen the financial system, by encouraging companies to increase reliance on long-term funding, allowing debt levels to decline and strengthening growth.


He added that he saw no reason to consider a change in course.


“To this point we do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery and more rapid job creation,” Mr. Bernanke said.


He also downplayed the concern expressed by some Fed officials and analysts that the central bank’s plans to control inflation as the economy recovers could be complicated by a political backlash because it may lose money as it sheds some of its vast holdings of Treasuries and mortgage bonds.


Such losses could be large enough to prevent the Fed from transferring profits to the Treasury Department for the first time since 1934, according to a Fed analysis.


Mr. Bernanke, noting the Fed has transferred $290 billion to Treasury since 2009, said it was “highly likely” Treasury still would see a net benefit from the purchases because any losses would not exceed those profits.


“Moreover, to the extent that monetary policy promotes growth and job creation, the resulting reduction in the federal deficit would dwarf any variation in the Federal Reserve’s remittances to the Treasury,” he said.


When Mr. Bernanke last appeared before Congress in July, he identified three major obstacles to faster growth: the depressed housing market, the financial crisis in Europe, and American fiscal policy. In his prepared testimony Tuesday, he did not mention Europe and barely touched on housing. But he warned that government policy was continuing to slow the pace of economic growth.


The recent agreements to reduce deficits, Mr. Bernanke said, focused on short-term spending cuts while doing little to address longer-term imbalances.


“To address both the near- and longer-term issues,” he said, “the Congress and the administration should consider replacing the sharp, front-loaded spending cuts required by the sequestration with policies that reduce the federal deficit more gradually in the near term but more substantially in the longer run.”


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'Breaking Bad' donates cast clothing to NM shelter


ALBUQUERQUE, N.M. (AP) — The AMC hit television series "Breaking Bad" about the methamphetamine wars in Albuquerque is helping the homeless.


New Mexico's largest emergency shelter says the show recently donated boxes of clothing worn by cast members in past episodes.


Joy Junction CEO Jeremy Reynalds says the clothing will be sold at the shelter's thrift store beginning Wednesday, and proceeds will go toward the Albuquerque-based shelter.


Reynalds says donated clothing also will give "Breaking Bad" fans an opportunity to buy pieces of show memorabilia.


"Breaking Bad" follows Walter White, played by Bryan Cranston, producing and selling methamphetamine with a former student, Jesse Pinkman, played by Aaron Paul. The series is shot in Albuquerque.


Joy Junction currently is raising money for a new chapel and dormitory.


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The ConsUmer: Questions About a Robotic Surgery

Ever since it was approved by the Food and Drug Administration in 2005, robotic surgery for hysterectomy has been heavily advertised. Surgeons promise that using the da Vinci robotic device will bring better results and an easier recovery, and many hospitals claim that patients will experience less pain and fewer complications, getting back on their feet faster.

The company that makes da Vinci robotic surgery equipment promoted it last May at free health workshops organized by the federal Office on Womens’ Health. On Sunday, the Liberty Science Museum in Jersey City will host its first “Let’s Operate Day,” offering guests “hands-on” practice peering into video monitors and using da Vinci’s robot arms to pick up and manipulate small objects.

The cost of the new technology is rarely mentioned. But last week, a new study that evaluated outcomes in more than a quarter of a million American women raised questions about the manufacturer’s claims. The paper, published in The Journal of the American Medical Association, compared outcomes in 264,758 women who had either laparoscopic or robotically assisted hysterectomy at 441 hospitals between 2007 and 2010. Both methods are minimally invasive and involve smaller incisions than open abdominal surgery.

The researchers found no overall difference in complication rates between the two groups, and no difference in the rates of blood transfusion, even though one of the claims regarding robotic surgery is that it causes less blood loss.

But the researchers did find a big difference in cost. Robotically assisted surgery for hysterectomy costs on average about one-third more than laparoscopic surgery.

“It’s important to separate the marketing from the data,” said Dr. Jason D. Wright, the study’s lead author, an assistant professor of obstetrics and gynecology at Columbia University Medical Center. “For the surgeon, there is a greater degree of movement and control of the instruments and the visualization is better.

“But the ultimate question is, does this change outcomes for patients? This study suggests that there really is not a lot of difference as far as quantifiable outcomes.”

The majority of patients in both groups left the hospital in less than two days, though patients who had robotic surgery were slightly more likely to go home that early: 80 percent went home in less than two days, compared with 75 percent of those who had laparoscopic surgery.

But the cost of robotic surgeries was significantly higher, with a median cost to the hospital of $8,868, compared with $6,679 for laparoscopic hysterectomy. The study did not look at the difference in patients’ bills, but according to Newchoicehealth.com, the average patient price for a laparoscopic hysterectomy ranges from $7,700 in Dallas to $11,600 in Los Angeles.

With laparoscopic surgery — sometimes called keyhole surgery — narrow instruments and a small video camera are inserted through tiny incisions; the surgeon sees the image on a monitor and can cut and sew tissue with the instruments. With robotically assisted surgery, the surgeon sits at a console with a 3-dimensional view of the surgical site, and computer technology translates his or her hand movements into precise, scaled movements of the instruments.

Even without offering clear advantages the proportion of hysterectomies performed robotically has increased rapidly, up to nearly 10 percent of hysterectomies in 2010 from less than 1 percent in 2007, Dr. Wright said. Minimally invasive surgeries for hysterectomies are increasing across the board, he found, even at hospitals not performing robotic surgery.

Dr. Myriam J. Curet, chief medical adviser to Intuitive Surgical, which makes the da Vinci systems, did not dispute the study’s findings, but said the important message was that more women were able to receive minimally invasive surgeries because more options were available.

“That’s good for patients and for the health care system,” Dr. Curet said. Women who are not candidates for laparoscopic surgery might still be candidates for robotically-assisted surgery, she added.

Right now, however, it is not clear how to identify which women would benefit from robotic surgery and which would do well with a less expensive method.

The growing use of robotic surgery in hospitals will continue to drive up health costs, said Joel S. Weissman, of Brigham and Women’s Hospital and a co-author of an editorial published with the study.

“Once you have that robot, the tendency is to use it for all kinds of things, for which it may or may not have great value,” Dr. Weissman said. Studies like this one, he said, demonstrate the waste of health care dollars on “something that costs a lot more and doesn’t offer any added benefit over current treatment options.”

Each year approximately 600,000 American women have hysterectomies, according to the Centers for Disease Control and Prevention. By age 60, one in three American women has had her uterus removed, often along with her ovaries and cervix.

Critics who say far too many hysterectomies are done in the United States worry that all the attention to surgical method distracts from the question of whether patients should be having the surgery at all.

Most hysterectomies are prescribed for conditions that are not life-threatening, and advocates worry that women are not fully informed of the long-term harms, which may include a loss of sexual responsiveness, depression and chronic constipation, and higher risk for osteoporosis and heart disease, said Nora W. Coffey, the founder of the nonprofit Hysterectomy Educational Resources and Services Foundation.

“That’s the conversation we should be having,” Ms. Coffey said.


Nora W. Coffey and other experts emphasize that women considering a hysterectomy should discuss all options with their doctors.

¶Ask what the alternatives are and whether watchful waiting is an option. Remember that it is irreversible, regardless of how the surgery is done.

¶Learn about the nonreproductive functions of the uterus, ovaries and cervix, and the potential long-term consequences associated with their removal, as well as the function of the ovaries and cervix.

¶If you proceed, discuss the advantages and disadvantages of different surgical methods with your doctor. Interview several surgeons and inquire about the cost and how much insurance will cover. Your co-pay may vary depending on the surgical method.

¶Tell your surgeon if you do not want your ovaries and cervix removed.

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British Government Seeks to Limit Disclosure in Litvinenko Case





The British government sought on Tuesday to limit the information it is ready disclose at a planned inquest into the death of Alexander V. Litvinenko, a former officer in the K.G.B. who died of radiation poisoning in London more than six years ago, and the coroner hearing the case said it may now be postponed.




“Due to the complexity of the investigation which necessarily precedes the hearings” Sir Robert Owen, the coroner said, the planned May 1 start date for the hearings could represent “a timetable to which it may not be possible to adhere.”


The inquest would be the first — and likely the only — public forum at which witnesses would testify under oath about the killing, which strained Britain’s relationship with the Kremlin and kindled memories of the cold war.


The prospect of a postponement brought charges from Ben Emmerson, a lawyer representing Mr. Litvinenko’s widow, Marina Litvinenko, that the British government was trying to gag the inquiry in order to protect lucrative trade deals with Russia.


Referring to Prime Minister David Cameron, Mr. Emmerson said on Tuesday that “the British government, like the Russian government, is conspiring to get this inquest closed down in exchange for substantial trade interests which we know Mr. Cameron is pursuing."


He added: "One has to ask what is going on at the highest level of Her Majesty’s Government, particularly when the highest levels are building bridges with the Kremlin."


The British government, he said, had “no right to say to an independent judiciary, ’you may not investigate these issues’. That happens in Russia, for sure.”


“This has all the hallmarks of a situation which is shaping up to be a stain on British justice,” the lawyer said.


Sir Robert, the coroner, said he would rule on Wednesday on the government’s application for a so-called Public Interest Immunity Certificate, usually issued on the grounds of national security, which would prevent the inquest from hearing information on topics without explaining what those issues were.


British analysts say they believe Britain is keen to avoid disclosing any information that might link Mr. Litvinenko to the British security services.


Last December, Mr. Emmerson, the lawyer, told a preparatory hearing that that Mr. Litvinenko was a “registered and paid agent and employee of MI6,” as the British Secret Intelligence Service is known. Mr. Litvinenko also worked for the Spanish intelligence service, Mr. Emmerson said, and both the British and Spanish spy agencies made payments into a joint account with his wife. The lawyer added that the inquest should consider whether MI6 failed in its duty to protect the onetime KGB officer against a “real and immediate risk to life.”


Mr. Litvinenko, who fled Russia in 2000 and styled himself a whistle-blower and foe of the Kremlin, died in November 2006, aged 43, weeks after he secured British citizenship. He had ingested polonium 210 — a rare radioactive isotope — at the Pine Bar of the Millennium Hotel in London’ central Grosvenor Square.


Britain’s Crown Prosecution Service is seeking the extradition from Russia of Andrei K. Lugovoi, another former K.G.B. officer, to face trial on murder charges. Mr. Lugovoi denies the accusation and Russia says its Constitution forbids it from sending its citizens to other countries to face trial.


The coroner has said in previous hearings that he will examine what was known about threats to Mr. Litvinenko and would also seek to determine whether the Russian state bore responsibility. In a deathbed statement, Mr. Litvinenko directly blamed President Vladimir V. Putin, who dismissed the accusation. Mr. Emmerson, the lawyer, complained on Tuesday that the preparations for the inquest were becoming “bogged down” by “the government’s attempt to keep a lid on the truth.”


“It is the government’s secret files that are delaying this inquest.”


British media outlets including the BBC and The Guardian newspaper are opposing the government’s effort to restrict evidence. The Guardian said that “the public and media are faced with a situation where a public inquest into a death may have large amounts of highly relevant evidence excluded from consideration by the inquest. Such a prospect is deeply troubling.”


But the Foreign Office said the authorities had made their application in line with their “duty to protect national security” and the coroner would rule according to “the overall public interest.”


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DealBook: Barnes & Noble Chairman Leonard Riggio to Bid for Bookstore's Retail Business

Correction Appended

The chairman of Barnes & Noble plans to bid for the retail business of the bookstore chain he started 40 years ago, as the company struggles with a changing competitive landscape.

On Monday, Leonard Riggio told the company’s board that he would make an offer for Barnes & Noble Booksellers, barnesandnoble.com and other retail assets. The proposal would not include the e-book division, Nook Media.

Like many retailers, the company is confronted by waning profit in its core business, as online retailers and other competitors gain market share. Barnes & Noble recently warned that earnings would be weak in the latest quarter, with losses rising in its Nook Media division.

Conceived as a serious competitor to Amazon.com’s Kindle, the Nook has instead become an also-ran in the race for digital book supremacy. The Kindle remains the top-selling dedicated e-reader, while the iPad consistently leads the competition among tablets. Amazon’s Kindle app has also maintained a huge lead in popularity, limiting Barnes & Noble’s reach across the broader digital bookselling landscape.

It is the boldest move yet by Mr. Riggio, the company’s largest shareholder who owns nearly 30 percent of Barnes & Noble, to try and save the company.

After building a small chain of college bookstores, Mr. Riggio in the 1970s bought the Barnes & Noble name and the flagship location in Manhattan, which had run into trouble. Over the next several decades, he built the company into the nation’s biggest brick-and-mortar bookseller.

In recent years, Mr. Riggio has fended off challenges from the likes of the billionaire Ronald W. Burkle. As part of that effort, Mr. Riggio argued, in large part, that the company was well-positioned in the future by betting on the Nook and digital books.

Others believed in the promise of the e-reader as well.

Microsoft paid $300 million in April for a 17.6 percent stake in the Nook business, valuing it then at $1.7 billion. Microsoft also secured Barnes & Noble’s commitment to produce an e-reader app for its Windows 8 operating system. And in December, the British publisher Pearson agreed to buy a 5 percent stake for $89.5 million.

Mr. Riggio, plans to negotiate the price with the board, according to a regulatory filing. The proposal is expected to be mainly in cash. The retailer’s board had already been weighing whether to spin off its Nook unit.

Barnes & Noble said in a statement that it had formed a special board committee of three directors – David G. Golden, David A. Wilson and Patricia L. Higgins – to consider Mr. Riggio’s proposal. The committee will be advised by Evercore Partners and the law firm Paul, Weiss, Rifkind, Wharton & Garrison.


Correction: February 25, 2013

An earlier version of this article referred imprecisely to the role of its largest shareholder, Leonard Riggio, in the company’s history. While Mr. Riggio founded the modern company that acquired the name in the 1970s, William Barnes and G. Clifford Noble opened the original Barnes & Noble bookstore, in 1917.

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'Argo' wins best picture on scattered Oscar night


LOS ANGELES (AP) — Just as Oscar host Seth MacFarlane set his sights on a variety of targets with a mixture of hits and misses, the motion picture academy spread the gold around to a varied slate of films. "Argo" won best picture as expected, along with two other prizes. But "Life of Pi" won the most awards with four, including a surprise win for director Ang Lee.


"Les Miserables" also won three Academy Awards, while "Django Unchained" and "Skyfall" each took two.


Among the winners were the front-runners throughout this lengthy awards season: best actor Daniel Day-Lewis for his deeply immersed portrayal of Abraham Lincoln in Steven Spielberg's epic "Lincoln," best actress Jennifer Lawrence as a troubled young widow in "Silver Linings Playbook" and supporting actress Anne Hathaway as the doomed prostitute Fantine in the musical "Les Miserables." Christoph Waltz was a bit of a surprise for supporting actor as a charismatic bounty hunter in Quentin Tarantino's "Django Unchained," an award he'd won just three years ago for Tarantino's "Inglorious Basterds."


The 22-year-old Lawrence, who got to show her lighter side in the oddball romance "Silver Linings Playbook" following serious roles in "Winter's Bone" and "The Hunger Games," gamely laughed at herself as she tripped on the stairs en route to the stage in her poufy, pale pink Dior Haute Couture gown. Backstage in the press room, when a reporter asked what she was thinking, she responded: "A bad word that I can't say that starts with 'F.'" Keeping journalists in hysterics, she explained, "I'm sorry. I did a shot before I ... sorry."


That's the kind of raunchiness MacFarlane himself seemed to be aiming for as host while also balancing the more traditional demands of the job. There was a ton of singing and dancing during the three-and-half-hour broadcast — no surprise from the musically minded creator of the animated series "Family Guy" — including a poignant performance from Barbra Streisand of "The Way We Were," written by the late Marvin Hamlisch, during the memorial montage. But MacFarlane also tried to keep the humor edgy with shots at Mel Gibson, George Clooney, Chris Brown and Rihanna.


An extended bit in which William Shatner came back from the future as his "Star Trek" character, Capt. James T. Kirk, had its moments while a joke about the drama "Flight" being restaged entirely with sock puppets was a scream. A John Wilkes Booth gag in reference to "Lincoln" was a bit of a groaner, perhaps intentionally, while MacFarlane relied on his alter ego, the cuddly teddy bear from his directorial debut "Ted," to make a crack about a post-Oscar orgy at Jack Nicholson's house. (MacFarlane already has indicated he's one-and-done with Academy Awards hosting.)


But it was Day-Lewis who came up with the kind of pop-culture riffing that's MacFarlane's specialty. In accepting his record third best-actor award from presenter Meryl Streep, he deadpanned that before they'd swapped roles, he originally was set to play Margaret Thatcher "and Meryl was Steven's first choice for 'Lincoln,' and I'd like to see that version."


Besides best picture, "Argo" won for Chris Terrio's adapted screenplay and for William Goldenberg's film editing. Affleck famously (and strangely) wasn't included in the best-director category for his thrilling and surprisingly funny depiction of a daring rescue during the 1979 Iranian hostage crisis. But as a producer on the film alongside George Clooney and Grant Heslov, he got to take home the top prize of the night.


"I never thought I'd be back here, and I am because of so many of you in this academy," said Affleck, who shared a screenplay Oscar with pal Matt Damon 15 years earlier for their breakout film "Good Will Hunting."


Among the wisdom he's acquired since then: "You can't hold grudges — it's hard but you can't hold grudges."


Lee, who previously won best director in 2006 for "Brokeback Mountain" (which also didn't win best picture), was typically low-key and self-deprecating in victory. His "Life of Pi" is a fable set in glorious 3-D, but Spielberg looked like the favorite for "Lincoln." The film also won for its cinematography, original score and visual effects.


"Thank you, movie god," the Taiwanese director said on stage. Later, he thanked his agents and said: "I have to do that," with a little shrug and a smile.


"Les Miserables" also won for sound mixing and makeup and hairstyling. The other Oscar for "Django Unchained" came for Tarantino's original screenplay. Asked about his international appeal backstage, Tarantino was enthusiastic as usual in saying: "I'm an American, and a filmmaker, but I make movies for the planet Earth."


Speaking of global hits, the James Bond action thriller "Skyfall" won for its original song by the unstoppable Adele (with Paul Epworth). It also tied for sound editing with "Zero Dark Thirty," the only win of the night for Kathryn Bigelow's detailed saga about the hunt for Osama bin Laden.


Among the other winners, "Searching for Sugar Man," about a forgotten musician's rediscovery, took the prize for best documentary feature. Pixar's fairy tale "Brave" won best animated feature.


One of the biggest moments of the night came at the end, as First Lady Michelle Obama announced the winner of the best picture prize. Backstage, Affleck described how surreal it was when he heard her say the word: "Argo."


"I was sort of hallucinating when that was happening," he explained. "In the course of a hallucination it doesn't seem that odd: 'Oh look, a purple elephant. Oh look, Michelle Obama.'"


___


Contact AP Movie Critic Christy Lemire through Twitter: http://twitter.com/christylemire


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Mediterranean Diet Can Cut Heart Disease, Study Finds





About 30 percent of heart attacks, strokes and deaths from heart disease can be prevented in people at high risk if they switch to a Mediterranean diet rich in olive oil, nuts, beans, fish, fruits and vegetables, and even drink wine with meals, a large and rigorous new study found.




The findings, published on the New England Journal of Medicine’s Web site on Monday, were based on the first major clinical trial to measure the diet’s effect on heart risks. The magnitude of the diet’s benefits startled experts. The study ended early, after almost five years, because the results were so clear it was considered unethical to continue.


The diet helped those following it even though they did not lose weight and most of them were already taking statins, or blood pressure or diabetes drugs to lower their heart disease risk.


“Really impressive,” said Rachel Johnson, a professor of nutrition at the University of Vermont and a spokeswoman for the American Heart Association. “And the really important thing — the coolest thing — is that they used very meaningful end points. They did not look at risk factors like cholesterol of hypertension or weight. They looked at heart attacks and strokes and death. At the end of the day, that is what really matters.”


Until now, evidence that the Mediterranean diet reduced the risk of heart disease was weak, based mostly on studies showing that people from Mediterranean countries seemed to have lower rates of heart disease — a pattern that could have been attributed to factors other than diet.


And some experts had been skeptical that the effect of diet could be detected, if it existed at all, because so many people are already taking powerful drugs to reduce heart disease risk, while other experts hesitated to recommend the diet to people who already had weight problems, since oils and nuts have a lot of calories.


Heart disease experts said the study was a triumph because it showed that a diet is powerful in reducing heart disease risk, and it did so using the most rigorous methods. Scientists randomly assigned 7,447 people in Spain who were overweight, were smokers, had diabetes or other risk factors for heart disease to follow the Mediterranean diet or a low-fat one.


Low-fat diets have not been shown in any rigorous way to be helpful, and they are also very hard for patients to maintain — a reality born out in the new study, said Dr. Steven E. Nissen, chairman of the department of cardiovascular medicine at the Cleveland Clinic Foundation.


“Now along comes this group and does a gigantic study in Spain that says you can eat a nicely balanced diet with fruits and vegetables and olive oil and lower heart disease by 30 percent,” he said. “And you can actually enjoy life.”


The study, by Dr. Ramon Estruch, a professor of medicine at the University of Barcelona, and his colleagues, was long in the planning. The investigators traveled the world, seeking advice on how best to answer the question of whether a diet alone could make a big difference in heart disease risk. They visited the Harvard School of Public Health several times to consult Dr. Frank M. Sacks, a professor of cardiovascular disease prevention there.


In the end, they decided to randomly assign subjects at high risk of heart disease to three groups. One would be given a low-fat diet and counseled on how to follow it. The other two groups would be counseled to follow a Mediterranean diet. At first the Mediterranean dieters got more intense support. They met regularly with dietitians while the low-fat group just got an initial visit to train them in how to adhere to the diet followed by a leaflet each year on the diet. Then the researchers decided to add more intensive counseling for them, too, but they still had difficulty staying with the diet.


One group assigned to a Mediterranean diet was given extra virgin olive oil each week and was instructed to use at least 4 tablespoons a day. The other group got a combination of walnuts, almonds and hazelnuts and was instructed to eat about an ounce of them each day. An ounce of walnuts, for example, is about a quarter cup — a generous handful. The mainstays of the diet consisted of at least 3 servings a day of fruits and at least two servings of vegetables. Participants were to eat fish at least three times a week and legumes, which include beans, peas and lentils, at least three times a week. They were to eat white meat instead of red, and, for those accustomed to drinking, to have at least 7 glasses of wine a week with meals.


They were encouraged to avoid commercially made cookies, cakes and pastries and to limit their consumption of dairy products and processed meats.


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Many Cruise Ship Lack Backup Power Systems, Vexing Regulators


Denis Poroy/Associated Press


The Carnival Splendor cruise ship was towed into San Diego Bay in 2010, after a fire destroyed its electrical systems.







It is becoming a familiar tale: When the cruise ship was towed into port, the endless hours for passengers of sleeping on deck and going without electricity or toilets were finally over.




“It was really hell,” said Bernice Spreckman, who is 77 and lives in Yonkers, N.Y. “I used my life jacket, which was flashing with a little light on it, to find a bathroom it was so dark.”


Ms. Spreckman was not among the 4,200 people aboard the Carnival Triumph who this month endured five days of sewage-soaked carpets and ketchup sandwiches. Her trial at sea came in 2010, on another ship run by Carnival Cruises, called the Splendor, which carried 4,500 passengers.


On both ships, fires broke out below decks, destroying the electrical systems and leaving them helpless. A preliminary Coast Guard inquiry into the Splendor found glaring deficiencies in its firefighting operations, including manuals that called for crew members to “pull” valves that were designed to turn.


But more than two years after the episode, the final report about what happened on the Splendor has yet to appear, a reflection of what critics say is a pattern of international regulatory roulette that governs cruise ship safety.


While the Splendor was based in the United States, the ship was legally registered in Panama, meaning the Panamanian Maritime Authority had the right to lead the investigation. But after the 2010 fire, Panamanian regulators chose to have the Coast Guard take over the inquiry. Then, officials in both countries apparently spent months trading drafts of their reports.


One official in Panama said the authority had completed its review of the Splendor report in October 2012. But a Coast Guard spokeswoman, Lisa Novak, said it still had not “finalized” the report. In the case of the Carnival Triumph, the regulatory scene will shift to the Bahamas, where that ship was registered.


In a recent letter to Coast Guard officials, Senator Jay Rockefeller, Democrat of West Virginia, said that cruise ships seemed to have two separate lives. Only during days near port are they closely monitored.


“Once they are beyond three nautical miles from shore, the world is theirs,” said the letter from Senator Rockefeller, who has headed recent inquiries into cruise ship safety.


Cruise industry officials point out that seaborne vacations are extremely safe and that some 20 million people go on cruises annually, with few problems. The most glaring exception to that record occurred last year when a vessel operated by a subsidiary of Carnival, the Costa Concordia, ran aground off the coast of Italy, resulting in 32 deaths.


In the Triumph’s case, the Coast Guard has said that the ship’s safety equipment failed to contain the blaze. And both the Triumph and the Splendor returned from their aborted voyages without serious injuries to passengers or crew.


But those successes also underscore what most travelers do not realize when they book cruises: nearly all ships lack backup systems to help them return to port should power fail because to install them would have cost operators more money.


The results are repeated episodes involving dead ships, with all the discomforts and potential dangers such situations can bring. In another case, in late 2012, the Costa Allegra cruise ship, a sister ship of the Concordia, lost power after a fire in the generator room and it had to be towed under guard from its location in the Indian Ocean.


In many ways, passengers aboard boats like the Triumph and Splendor were lucky because their ships were disabled in calm weather, when instead they could have been knocked out during storms, or when they were far out at sea or in pirate-infested waters, experts said.


“Anything that knocks a ship dead in the water is serious,” said Mark Gaouette, a safety expert and former Navy officer.


This article has been revised to reflect the following correction:

Correction: February 25, 2013

A caption with an earlier version of this article misstated the number of passengers on the Carnival Splendor when it was disabled at sea. There were 4,500 aboard, not 14,500.



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Palestinians Demand Inquiry Into Detainee’s Death in Israel





JERUSALEM — Palestinian officials on Sunday called for an international investigation into the death of a 30-year-old prisoner in an Israeli jail, saying the man was tortured during interrogation, as thousands of Palestinian prisoners went on a one-day hunger strike in protest.




“Israel is responsible for what happened,” Issa Qaraqa, the Palestinian minister for prisoner affairs, said at a news conference in Ramallah, in the West Bank.


“I accuse the State of Israel of subjecting him to tough physical and psychological pressure,” Mr. Qaraqa said. “He was subjected to a heavy and severe torture.”


Israeli authorities said the prisoner, Arafat Jaradat, died of a heart attack. An autopsy was scheduled for Sunday, with a Palestinian forensic specialist and a relative of Mr. Jaradat scheduled to attend.


Amid intensifying demonstrations in the West Bank that some officials and analysts see as the stirrings of a third intifada, or uprising, Israel on Sunday transferred to the Palestinian Authority $100 million in tax revenue that it had been withholding. Isaac Molho, Prime Minister Benjamin Netanyahu’s special envoy, also sent a message to the Palestinian leadership that Israeli officials described as an “unequivocal demand to restore quiet on the ground.”


Israel has refused Palestinian requests to release four prisoners whe have been on long-term hunger strike or 123 people who have been detained since before the signing of the Oslo Accords in 1993. “Some of these people are accused of very heinous crimes,” a senior Israeli official said, speaking on the condition of anonymity because he was not authorized to discuss the matter with the news media. “They’re saying that every Palestinian hunger striker should have a get-out-of-jail-free card. You can’t have a system like that. It’s not sustainable.”


After days of demonstrations in solidarity with the hunger strikers that have included clashes with Israeli soldiers and settlers, hundreds of Palestinians turned out Sunday in several cities and villages to protest Saturday’s death of Mr. Jaradat, who relatives said worked in a gas station and was the father of a 4-year-old girl and 2-year-old boy. Demonstrators in Gaza waved the flags of Palestinian political factions along with banners reading “Tortured” and “Their freedom is our responsibility.”


“We will resort to all means to liberate the prisoners,” said Sami Abu Zuhri, a spokesman for Hamas, the militant Islamist party that rules the Gaza Strip.


Atallah Abu al-Sabah, Hamas’s minister of prisoner affairs, criticized Palestinian leaders in the West Bank for their handling of the issue, and called for kidnapping Israeli soldiers “instead of pursuing playful negotiations that brought nothing to the Palestinian cause.”


Mr. Jaradat was arrested last Monday for throwing stones at Israeli cars near a West Bank settlement during November’s conflict between Israel and the Gaza Strip. Palestinian officials said he admitted the stone-throwing but denied using Molotov cocktails. He also confessed to tossing rocks in a 2006 incident. Officials said his detention was extended 12 days at a hearing on Thursday, during which his lawyer said Mr. Jaradat complained of severe pain in his back and neck that he attributed to his interrogation.


“When he was under interrogation, the interrogator told him, ‘Say goodbye to your kids,’ ” Mr. Jaradat’s uncle, Musa, said at the Ramallah news conference. Musa Jaradat said that his nephew’s father and brothers had all spent time in Israeli jails, and that before his detention, Arafat Jaradat had sought to join the Palestinian security force.


The Palestinian prime minister, Salam Fayyad, issued a statement expressing “deep sorrow and shock” over Mr. Jaradat’s death, saying there was a “need to promptly disclose the true reasons that led to his martyrdom.”


Jodi Rudoren reported from Jerusalem, and Khaled Abu Aker from Ramallah, West Bank. Fares Akram contributed reporting from the Gaza Strip.



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