Chia Seeds Gain Popularity for Nutritional Benefits





First there were Chia Pets; now there are chia people.




Ubiquitous in television ads that began 30 years ago, Chia Pets were called “the pottery that grows.” Mixing chia seeds and water on the outside of an animal-shaped terra-cotta figurine produces a plant resembling green hair almost overnight.


Now, chia is having a second life as a nutritional “it” item. Whole and ground chia seeds are being added to fruit drinks, snack foods and cereals and sold on their own to be baked into cookies and sprinkled on yogurt. Grown primarily in Mexico and Bolivia, chia, like fish, is rich in omega-3 fatty acids, though of a different sort. It also has antioxidants, protein and fiber. Recognition of its nutritional value can be traced as far back as the Aztecs.


Companies like Dole and Nature’s Path have introduced chia products, which have begun showing up on shelves in mainstream grocery stores like Ralphs, Vons and Albertsons. Mintel, a market research firm, counted 100 products containing chia in a presentation it did in March on the potential of increasing the use of the seeds in dairy products.


“About two years ago, our retailers came to us and said, ‘We need you to be in this business everyone is talking about, the business of chia seeds,’ ” said Michael P. Hirsch, vice president of Joseph Enterprises, which sells Chia Pets and other novelty products and has now added chia seeds and milled chia called — what else? — Ch-Ch-Ch-Chia Omega.


Last spring, high demand collided with weather patterns that depressed production, raising prices and the awareness that chia had moved beyond the realm of health food stores into the broader market.


Janie Hoffman, founder of Mamma Chia fruit juices, was one of the first people to recognize chia’s potential as a food. She was complaining about flax seed — “I hate how you have to grind it and then it goes rancid” — to a friend, who asked why she wasn’t using chia instead. “She said it had no taste, it’s high in antioxidants, huge in omega-3, a far superior seed,” Ms. Hoffman said. “In short, she made me feel like an idiot — no one was using flax seed anymore.”


So she bought some chia seeds online and was quickly sold on their benefits. “I started incorporating it into everything I was eating,” she said. “Stir fries, yogurt, beverages — there really wasn’t anything in my kitchen that didn’t have chia in it.”


In 2009, Ms. Hoffman developed fruit juices with chia seeds suspended in them. (Exposure to liquid gives the seeds a sticky, gelatinous coating, which is how they bond to the terra-cotta pets.)


“My first sales call a year and a half later was to Whole Foods in the southern Pacific region,” she said. “I walked in to meet the buyer and presented this chia beverage and said I would like it to go into a few stores. She said, ‘No, I want you in all of them’ ” — about 40 stores — “and that was that.”


Within 11 months, Mamma Chia products were in Whole Foods stores across the nation, as well as in hundreds of bodegas and health and natural foods stores. They are now sold in Ralphs and Vons stores and will soon be in Albertsons.


“I personally think demand for it will grow for sure, though how big it will get is still a question,” said Brad C. Bartlett, president of Dole Food Company’s packaged foods business.


Dole chose chia as the first ingredient it would promote in its new Nutrition Plus line of products, which aim to provide a functional benefit to consumers. It won out over other candidates, Mr. Bartlett said, because of its long history as a source of nutrition — the Aztecs used it for many purposes — and because it does not require much processing to confer its benefits.


The company does independent clinical testing on each product in the Nutrition Plus line to back up claims it makes about their health benefits, and it was surprised by one finding: significantly more alpha-linolenic acid in omega-3 reached the bloodstream and was converted into eicosapentaenoic acid, a long-chain fatty acid considered good for the heart, when the seeds were milled rather than whole.


“That came as quite a surprise, and we stopped the rollout and reformulated our clusters to use milled chia instead of whole seeds,” Mr. Bartlett said, referring to Dole’s Chia & Fruit Clusters.


Nature’s Path, an organic cereal company, introduced its first chia-laced cereal, Apple Crumble Love Crunch, last December, and now has eight products that include the seed in some form. “Business has been great with these products — overwhelmingly positive and, perhaps surprisingly, not just in health food stores but also in regular grocery stores,” said Arjan Stephens, executive vice president of sales and marketing at Nature’s Path.


Mr. Stephens said chia’s nutritional attributes, along with its many uses in food processing, could turn it into a staple. “It can be used in gluten-free breads or waffles to add fluffiness or to replace eggs in vegan products,” he said. “It offers an alternative to those with nut allergies.”


Mr. Hirsch, the Joseph Enterprises vice president, was less certain that chia would be a blockbuster, even though his company is adding protein bars to its line of edible chia products, which are sold in Walgreens, CVS and other drugstores. He said he was concerned about the supply of chia seeds, which are harvested once a year and grown in rotation, usually with corn.


Australia has recently joined Mexico and Bolivia in the chia-production act with its own type of seed that is grown somewhat differently, Mr. Hirsch said. But it is a difficult crop to grow outside of the traditional areas, and the market is tiny, about $70 million.


“Everybody is looking at this because everybody is always looking for something new,” Mr. Hirsch said. “I also know from the sales at this point it’s a niche market still, and we don’t know how big the niche is yet.”


If that niche fails to expand, there will always be another Chia Pet. This year, Chia Hello Kitty is joining the lineup.


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DealBook: S.E.C. Chief Who Overhauled Agency to Step Down

11:42 a.m. | Updated

Mary L. Schapiro, who overhauled the Securities and Exchange Commission after the financial crisis, announced Monday that she was stepping down as chairwoman of the agency.

In recent days, the S.E.C. informed the White House and Treasury Department that Ms. Schapiro planned to leave Dec. 14, becoming the first major departure from the Obama administration’s team of financial regulators. Ms. Schapiro will also relinquish her position as one of the five members of the agency’s commission, the group that oversees Wall Street and the broader financial markets.

The White House announced on Monday that President Obama was naming Elisse B. Walter, a commissioner at the S.E.C., as the new chairwoman. In a somewhat surprising move, Ms. Walter will not step into an interim post, but will take over the top spot for the foreseeable future.

Ms. Walter’s appointment does not require Congressional approval because the Senate previously confirmed her as a commissioner. Eventually, the White House is expected to nominate another agency chief, according to a person briefed on the matter.

Ms. Schapiro’s departure, which follows a bruising four-year tenure, was widely telegraphed. Ms. Schapiro, 57, has confided in staff members for more than a year that she was exhausted and hoped to leave after the November elections.

“It has been an incredibly rewarding experience to work with so many dedicated S.E.C. staff who strive every day to protect investors and ensure our markets operate with integrity,” Ms. Schapiro said in a statement. “Over the past four years we have brought a record number of enforcement actions, engaged in one of the busiest rule-making periods, and gained greater authority from Congress to better fulfill our mission.”

In 2008, Mr. Obama nominated Ms. Schapiro, a political independent, to head the S.E.C. at a time when extreme economic turmoil had shaken investor confidence in the country’s securities regulators.

The agency was faulted for its lax oversight of brokerage firms like Lehman Brothers, which failed in 2008 and contributed to the worst economic downturn since the Great Depression. Just weeks before Ms. Schapiro started as chairwoman, the Wall Street investor Bernard L. Madoff was accused of running a large Ponzi scheme, further damaging the credibility of regulators like the S.E.C., which missed crucial warning signs about the fraud.

“When Mary agreed to serve nearly four years ago, she was fully aware of the difficulties facing the S.E.C. and our economy as a whole,” Mr. Obama said in a statement. “But she accepted the challenge, and today, the S.E.C. is stronger and our financial system is safer and better able to serve the American people – thanks in large part to Mary’s hard work.”

Ms. Schapiro, a lifelong regulator who previously ran the Commodity Futures Trading Commission and the Financial Industry Regulatory Authority, quickly gained a reputation as a consensus builder determined to repair the agency’s reputation. A tireless preparer and self-described pragmatist, Ms. Schapiro overhauled the agency’s management ranks, revived the enforcement unit and secured more money and technology at a time when other agencies were being asked to cut back. She also helped craft new rules for Wall Street oversight, as part of the Dodd-Frank regulatory overhaul.

“The S.E.C. came back from the brink,” said Harvey L. Pitt, a former chairman of the agency under President George W. Bush. “I give her enormous credit for that.”

Consumer advocates and other critics, however, say she failed to grab the bully pulpit at a time the country needed a vocal critic of Wall Street. Since the financial crisis, the agency brought few enforcement cases against the Wall Street executives at the center of the crisis.

The S.E.C. notes it has brought a record number of cases over the last two years. While no top banking executives have been charged, the agency has filed actions against 129 people and firms tied to the crisis.

Ms. Walter, a Democrat who became an S.E.C. commissioner in 2008 and briefly served as the agency’s acting leader a year later, is a longtime ally of Ms. Schapiro. They overlapped at the Commodity Futures Trading Commission and Finra, where Ms. Walter was a senior regulator and lawyer. At the S.E.C., Ms. Walter was often the only reliable vote for Ms. Schapiro’s rule-making efforts and is now expected to carry out a similar agenda as chairwoman.

While Ms. Walter will take over, she may not serve the whole term. Among the other people that Mr. Obama may consider naming as agency chief include Mary J. Miller, a senior Treasury Department official, a person briefed on the matter said. Sallie L. Krawcheck, a former top executive at Citigroup and Bank of America, is also in the running, according to people with knowledge of the matter. The agency’s enforcement chief, Robert Khuzami, is a long-shot contender.

As for Ms. Schapiro, few expect her to follow her predecessors and move into private legal practice, where she would defend the banks she has spent years regulating. Instead, they say she is more likely to seek out a position at a university or research group.

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New Senate’s First Task Will Likely Be Trying to Fix Itself


Jacquelyn Martin/Associated Press


At a news conference after meeting with President Obama about the budget, from left, Nancy Pelosi, the House Democratic leader; Harry Reid, the Senate Democratic leader; Speaker John A. Boehner; and Mitch McConnell, the Senate Republican leader.







WASHINGTON — Senator Bob Dole had just assumed the mantle of Senate majority leader, after the Republican landslide of 1994, when he confronted a problem.




Piles of Republican legislation from Newt Gingrich’s self-styled “revolutionary” House were stacking up in a narrowly divided, more deliberate Senate, and Democrats were threatening to gum up the works with amendments that would stall the bills.


Mr. Dole turned to the Senate’s Democratic master of floor procedure, Robert C. Byrd of West Virginia, who taught him a parliamentary trick known to Senate insiders as “filling the tree,” Mr. Dole recalled.


The convoluted procedure allows the majority leader to claim all opportunity for offering changes to a bill, effectively preventing any other senator from proposing an amendment intended to slow down legislation or force a politically embarrassing vote.


“I never knew what ‘filling the tree’ was until I tried it, but it turned out to be pretty good,” Mr. Dole said, ruefully accepting a share of the blame for the parliamentary arms race that has consumed the Senate in recent years. “I don’t think there’s any credit.”


The increased use of the tactic, which had previously been rare, is part of the procedural warfare that has reached a zenith over the past two years in the Senate. Republicans threaten to filibuster and propose politically charged amendments, Democrats fill the amendment tree, and Republicans filibuster in retaliation.


The tactic initially meant to speed bills has instead helped slow them down. The Senate — the legislative body that was designed as the saucer to cool the House’s tempestuous teacup — has become a deep freeze, where even once-routine matters have become hopelessly stuck and a supermajority is needed to pass almost anything.


As a result, the first fight of the next Senate, which convenes in January, is not likely to be over a fiscal crisis, immigration, taxes or any issue that animated the elections of 2012. It will instead probably be over how and whether to change a troubled Senate, members and aides say.


With his majority enhanced and a crop of frustrated young Democrats pushing him hard, Senator Harry Reid of Nevada, the Democratic leader, says he will move on the first day of the 113th Congress to diminish the power of Republicans to obstruct legislation. “We need to change the way we do business in the Senate,” said Senator Tom Udall, Democrat of New Mexico. “Right now, we have gridlock. We have delay. We have obstruction, and we don’t have any accountability.”


The pressure leaves Mr. Reid with a weighty decision: whether to ram through a change in the rules with a simple majority that would significantly diminish Republicans’ power to slow or stop legislation.


The changes under consideration may sound arcane, but they would have such a profound impact that they are referred to as the “nuclear option.” In effect, they would remake a Senate that was long run on compromise and gentlemen’s agreements into something more like the House, where the majority rules almost absolutely.


Critics of the idea, who exist in both parties, say such a change would do great damage, causing Washington to career from one set of policies to another, depending on which party held power.


Senator Mitch McConnell of Kentucky, the Republican leader, said he would aggressively fight any rule change and blamed the Democratic majority for the Senate’s dysfunction. “This notion that the Senate is dysfunctional is not because of the rules,” he said. “It’s because of behavior.”


Supporters of the idea, who also do not fit a neat ideological profile, argue that the collegial Senate of the past no longer exists and that American democracy is often paralyzed as a result. Today’s Senate, they say, has left crucial positions unfilled, like a confirmed head for the new Consumer Financial Protection Bureau, and is preventing action on major issues like job creation proposals.


“There is a tendency to look to the past through rose-colored glasses, to some mythical golden era when everyone got along and cooperated. That’s not true. It’s always been tough, and it’s always been rough,” said George Mitchell, a former Democratic majority leader who would now back some changes. “But I do believe and accept the premise that it’s worse now.”


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Professor finds profiling in ads for personal data website

LAS VEGAS (Reuters) - Dr. Latisha Smith, an expert in decompression sicknesses afflicting deep sea divers, has cleared criminal background checks throughout her medical career. Yet someone searching the Web for the Washington State physician might well come across an Internet ad suggesting she may have an arrest record.


"Latisha Smith, arrested?" reads one such advertisement.


Another says: "Latisha Smith Truth... Check Latisha Smith's Arrests."


Instantcheckmate.com, which labels itself the "Internet's leading authority on background checks," placed both ads. A statistical analysis of the company's advertising has found it has disproportionately used ad copy including the word "arrested" for black-identifying names, even when a person has no arrest record.


Latanya Sweeney is a Harvard University professor of government with a doctorate in computer science. After learning that her own name had popped up in an "arrested?" ad when a colleague was searching for one of her academic publications, she ran more than 120,000 searches for names primarily given to either black or white children, testing ads delivered for 2,400 real names 50 times each. (The author of this story is a Harvard University fellow collaborating with Professor Sweeney on a book about the business of personal data.)


Ebony Jefferson, for example, often turns up an instantcheckmate.com ad reading: "Ebony Jefferson, arrested?" but an ad triggered by a search for Emily Jefferson would read: "We found Emily Jefferson." Searches for randomly chosen black-identifying names such as Deshawn Williams, Latisha Smith or Latanya Smith often produced the "arrested?" headline or ad text with the word "arrest," whereas other less ethnic-sounding first names matched with the same surnames typically did not.


"As an African-American, I'm used to profiling like that," said Dr. Smith. "I think it's horrendous that they get away with it."


Instantcheckmate.com declined to comment. The company's founder and managing partner, Kristian Kibak, did not respond to repeated emails and phone calls over a period of several months, and other employees referred calls to management. Company officials also declined to comment when visited twice at their call center in Las Vegas. Former employees said they had signed nondisclosure agreements that barred them from speaking openly about Instant Checkmate.


Instantcheckmate.com is one of many data brokers that use and sell data for a variety of purposes. The field is attracting growing attention, both from government and consumers concerned about possible abuse. Rapid advances in technology have opened up all sorts of opportunities for commercialization of data.


Anyone can set up shop and sell arrest records as long as they stay clear of U.S. legal limitations such as using the information to determine creditworthiness, insurance or job suitability.


Companies that compete with instantcheckmate.com include intelius.com and mylife.com. An examination of Internet advertising starting last March as well as Sweeney's study did not find any rival companies advertising background searches on individual names along racial lines.


WHO CAN BE TRUSTED?


In its own marketing, Instantcheckmate.com sums up its mission like this: "Parents will no longer need to wonder about whether their neighbors, friends, home day care providers, a former spouse's new love interest or preschool providers can be trusted to care for their children responsibly."


According to preliminary findings of Professor Sweeney's research, searches of names assigned primarily to black babies, such as Tyrone, Darnell, Ebony and Latisha, generated "arrest" in the instantcheckmate.com ad copy between 75 percent and 96 percent of the time. Names assigned at birth primarily to whites, such as Geoffrey, Brett, Kristen and Anne, led to more neutral copy, with the word "arrest" appearing between zero and 9 percent of the time.


A few names fell outside of these patterns: Brad, a name predominantly given to white babies, produced an ad with the word "arrest" 62 percent to 65 percent of the time. Sweeney found that ads appear regardless of whether the name has an arrest record attached to it.


Blacks make up about 13 percent of the U.S. population but account for 28 percent of the arrests listed on the FBI's most recent annual crime statistics.


Internet advertising based on millions of name pairs has only existed in recent years, so targeting ads along racial lines raises new legal questions. Experts say the Federal Trade Commission, which this year assessed an $800,000 penalty against personal data site Spokeo.com for different reasons (related to the use of data for job-vetting purposes), would be the institution best placed to review Instant Checkmate's practices.


The FTC enforces regulations against unfair or deceptive business practices. A deceptive claim that would be more likely to get people to purchase a product than they would otherwise would be a typical reason the FTC might act against a company, said one FTC official who did not want to be identified. For example, authorities could take action against a firm that makes misleading claims suggesting a product such as records exist when they do not.


"It's disturbing," Julie Brill, an FTC commissioner, said of Instant Checkmate's advertising. "I don't know if it's illegal ... It's something that we'd need to study to see if any enforcement action is needed."


Instant Checkmate's Kibak, who is in his late 20s, works out of a San Diego office near the Pacific Ocean. The son of a California biology professor, he did not respond to repeated phone calls and emails seeking comment about his business.


"We would consider the answers to most of your questions trade secrets and therefore would not be comfortable disclosing that information," Joey Rocco, Kibak's partner according to the firm's Nevada state registration, said in an email.


Instant Checkmate LLC maintains its official corporate headquarters at an address in an industrial zone across the highway from the Las Vegas strip. At the back of a long parking lot, the company shares a warehouse building with an auto repair shop. At one end, a large roll-up garage-style door opens to the company's call center. Workers face a gray cinder-block wall, their backs to the entrance. Staff declined to answer questions.


DATA FIRMS PROLIFERATE


Professor Sweeney's analysis found that some instantcheckmate.com ads hint at arrest records when the firm's database has no record of any arrest for that name, as is the case with her own name. In other cases, such as that of Latisha Smith, the company does have arrest records for some people by that name, although not for the doctor of hypobaric medicine in Washington State.


Laura Beatty, an Internet Marketing Inc expert in helping companies achieve prominent placement in Web searches, said instantcheckmate.com appeared to choose its ads based on combinations of thousands of different first and last names and then segment them based on the first names.


"There does look like there is some definite profiling going on here," she said. "In the searches that I looked at, it seemed like the more Midwestern- and WASP-sounding the name was, the less likely it was to have either any advertisement at all or to have something that was more geared around the arrest or criminal background."


Internet firms selling criminal records and personal data to the public have proliferated in recent years, as low-cost computing enables even modest operations to maintain large databases on millions of Americans. Such sites sell access to users for a one-time fee - $29.95 in the case of instantcheckmate.com - or via monthly subscription plans.


Instant Checkmate, first registered in Nevada in 2010, said in a recent press release posted online that the firm had attracted more than 570,000 customers since its start and counted more than 200,000 subscribers.


According to alexa.com, an Amazon.Com Inc site analyzing website traffic, instantcheckmate.com has ranged roughly between the 500th and 600th most visited U.S. site in recent weeks, making it an increasingly major player in this area.


The company is able to target its ads on an individual name basis through a program called Google AdWords. Instantcheckmate.com and others companies like it use Google AdWords to bid to place small text advertisements alongside search results on major websites triggered by the names in their data base. Such ads typically cost a company far less than a dollar, sometimes just a few pennies, each time they're clicked.


Google says it does not control what names appear in AdWords. "Advertisers select all of their keywords, and ads are triggered when someone searches for that name. We don't have any role in the advertiser's selection of unique proper names," said a Google spokesman.


Some in Congress have raised concerns about developments in the use of personal data. In October, Senator John Rockefeller IV, a Democrat from West Virginia and chairman of the Senate Committee on Commerce, Science and Transportation, opened a probe into leading data brokers. "Collecting, storing and selling information about Americans raises all types of questions that require careful scrutiny," he said.


(Adam Tanner is a Reuters correspondent currently on a 2012-13 fellowship at Harvard University’s Department of Government.)


(Editing by Claudia Parsons and Prudence Crowther)


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'Twilight,' Bond, 'Lincoln' lead record weekend

LOS ANGELES (AP) — Bella Swan, James Bond and Abe Lincoln have combined to lift Hollywood to record Thanksgiving revenue at the box office.

Kristen Stewart's finale as Bella in "The Twilight Saga: Breaking Dawn — Part 2" was No. 1 again with $64 million during the five-day holiday stretch that began Wednesday, according to studio estimates Sunday.

Daniel Craig's Bond adventure "Skyfall" came in at No. 2 with $51 million, while Daniel Day-Lewis and Steven Spielberg's Civil War saga "Lincoln" finished third with $34.1 million.

According to box-office tracker Hollywood.com, the three films paced Hollywood to an all-time Thanksgiving week best of about $290 million from Wednesday to Sunday.

That tops the previous record of $273 million over Thanksgiving in 2009, when "The Twilight Saga: New Moon" led the weekend.

The "Twilight" finale, "Skyfall" and "Lincoln" finished in the same top-three rankings for the second-straight weekend as new releases were unable to dislodge the holdovers.

Released by Lionsgate's Summit Entertainment banner, "Breaking Dawn — Part 2," pulled in $43.1 million from Friday to Sunday, raising its domestic total to $227 million. The movie added $97.4 million overseas to bring its international total to $350.8 million and its worldwide take to $577.7 million.

Sony's "Skyfall" also topped $200 million domestically, ringing up $36 million for the three-day weekend to put its U.S. total at $221.7 million.

"Lincoln," a DreamWorks film distributed by Disney, took in $25 million over the weekend to lift its domestic revenue to $62.2 million.

Leading the newcomers was Paramount and DreamWorks Animation's animated tale "Rise of the Guardians" at No. 4 with $24 million for the weekend and $32.6 million since opening Wednesday.

Close behind at No. 5 was director Ang Lee's shipwreck saga "Life of Pi" at No. 5 with $22 million over the weekend. The 20th Century Fox release has taken in $30.2 million domestically since its Wednesday debut and added $17.5 million in four Asian markets.

The weekend's other new wide release, a remake of the 1980s U.S.-invasion tale "Red Dawn," opened at No. 7 with $14.6 million, raising its total to $22 million since debuting Wednesday.

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Lobbying, a Windfall and a Leader’s Family


The New York Times


Ping An, one of China’s largest financial services companies, is building a 115-story office tower in Shenzhen. The company is a $50 billion powerhouse now worth more than A.I.G., MetLife or Prudential.







SHENZHEN, China — The head of a financially troubled insurer was pushing Chinese officials to relax rules that required breaking up the company in the aftermath of the Asian financial crisis.




The survival of Ping An Insurance was at stake, officials were told in the fall of 1999. Direct appeals were made to the vice premier at the time, Wen Jiabao, as well as the then-head of China’s central bank — two powerful officials with oversight of the industry.


“I humbly request that the vice premier lead and coordinate the matter from a higher level,” Ma Mingzhe, chairman of Ping An, implored in a letter to Mr. Wen that was reviewed by The New York Times.


Ping An was not broken up.


The successful outcome of the lobbying effort would prove monumental.


Ping An went on to become one of China’s largest financial services companies, a $50 billion powerhouse now worth more than A.I.G., MetLife or Prudential. And behind the scenes, shares in Ping An that would be worth billions of dollars once the company rebounded were acquired by relatives of Mr. Wen.


The Times reported last month that the relatives of Mr. Wen, who became prime minister in 2003, had grown extraordinarily wealthy during his leadership, acquiring stakes in tourist resorts, banks, jewelers, telecommunications companies and other business ventures.


The greatest source of wealth, by far, The Times investigation has found, came from the shares in Ping An bought about eight months after the insurer was granted a waiver to the requirement that big financial companies be broken up.


Long before most investors could buy Ping An stock, Taihong, a company that would soon be controlled by Mr. Wen’s relatives, acquired a large stake in Ping An from state-owned entities that held shares in the insurer, regulatory and corporate records show. And by all appearances, Taihong got a sweet deal. The shares were bought in December 2002 for one-quarter of the price that another big investor — the British bank HSBC Holdings — paid for its shares just two months earlier, according to interviews and public filings.


By June 2004, the shares held by the Wen relatives had already quadrupled in value, even before the company was listed on the Hong Kong Stock Exchange. And by 2007, the initial $65 million investment made by Taihong would be worth $3.7 billion.


Corporate records show that the relatives’ stake of that investment most likely peaked at $2.2 billion in late 2007, the last year in which Taihong’s shareholder records were publicly available. Because the company is no longer listed in Ping An’s public filings, it is unclear if the relatives continue to hold shares.


It is also not known whether Mr. Wen or the central bank chief at the time, Dai Xianglong, personally intervened on behalf of Ping An’s request for a waiver, or if Mr. Wen was even aware of the stakes held by his relatives.


But internal Ping An documents, government filings and interviews with bankers and former senior executives at Ping An indicate that both the vice premier’s office and the central bank were among the regulators involved in the Ping An waiver meetings and who had the authority to sign off on the waiver.


Only two large state-run financial institutions were granted similar waivers, filings show, while three of China’s big state-run insurance companies were forced to break up. Many of the country’s big banks complied with the breakup requirement — enforced after the financial crisis because of concerns about the stability of the financial system — by selling their assets in other institutions.


Ping An issued a statement to The Times saying the company strictly complies with rules and regulations, but does not know the backgrounds of all entities behind shareholders. The company also said “it is the legitimate right of shareholders to buy and sell shares between themselves.”


In Beijing, China’s foreign ministry did not return calls seeking comment for this article. Earlier, a Foreign Ministry spokesman sharply criticized the investigation by The Times into the finances of Mr. Wen’s relatives, saying it “smears China and has ulterior motives.”


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Morsi Urged to Retract Edict to Bypass Judges in Egypt


Tara Todras-Whitehill for The New York Times


A demonstrator takes a breather during protests in downtown Cairo on Saturday.







CAIRO — Egyptian judges and prosecutors struck back on Saturday against an attempt by President Mohamed Morsi to place his decrees above judicial review, vowing to challenge his edict in court and reportedly going on strike in Alexandria.




Abdel Meguid Mahmoud, a prosecutor whom Mr. Morsi is seeking to fire, declared to a crowd of cheering judges at Egypt’s high court that the presidential decree was “null and void.” Mr. Mahmoud, who was appointed by Mr. Morsi’s predecessor, Hosni Mubarak, denounced “the systematic campaign against the country’s institutions in general and the judiciary in particular.”


Outside the court, the police fired tear gas at protesters who were denouncing Mr. Morsi and trying to force their way into the building.


The judicial backlash widened a power struggle over the drafting of a new constitution that has raised alarms about a return to autocracy 22 months after the ouster of Mr. Mubarak.


Mr. Morsi, the Islamist who became Egypt’s first elected president in June, is seeking to assert an authority unchecked by judicial review to forestall a court ruling expected on Dec. 2 that could disband the constitutional assembly and extend by two months the year-end deadline for that body to finish its work.


A high court dissolved an earlier assembly that was to draft a constitution last spring, and Mr. Morsi’s supporters accuse their secular opponents and judges appointed by Mr. Mubarak of trying to delay or derail the transition to democracy to prevent the Islamist majority from taking power.


The president’s opponents, in turn, accuse Mr. Morsi of seizing unchecked authority, noting that he holds executive and legislative power under a vague patchwork of interim constitutional declarations put in place by the military leaders who managed the first 18 months of Egypt’s post-Mubarak transition. The Supreme Constitutional Court dissolved the Islamist-dominated Parliament on the eve of Mr. Morsi’s election.


A council that oversees the judiciary on Saturday denounced Mr. Morsi’s decree, which was issued Thursday, as “an unprecedented attack” on its authority, and urged the president to retract the aspects of the decree circumscribing judicial oversight. State news media reported that judges and prosecutors walked out in Alexandria, and there were other news reports of walkouts in Qulubiya and Beheira, but those could not be confirmed.


In Cairo on Saturday, a coalition of secular opposition leaders and parties called for Mr. Morsi to withdraw his decree and disband the constituent assembly. The groups have long complained about the body’s domination by Islamists.


On Friday night their supporters set up a tent city for an open-ended sit-in in Tahrir Square, the center of the Egyptian revolt, and the groups have called for a demonstration there on Tuesday.


The Muslim Brotherhood, the Islamist group allied with Mr. Morsi, has called for demonstrations Sunday and Tuesday to support his moves as an effort to speed up Egypt’s transition to a constitutional democracy.


Near the square, a few hundred young men engaged in an unrelated battle with the police that has been going on for more than five days. They are demanding retribution against security officers who killed more than 40 people and blinded others with birdshot in clashes a year ago.


The protesters had hung a yellow banner across the street declaring “No Entry to the Brotherhood.” They blame the Muslim Brotherhood for failing to back them during last year’s protests.


On Saturday, most appeared unconcerned, if cynical, about Mr. Morsi’s decree, though some approved of his efforts to fire the Mubarak-appointed prosecutor and retry officials previously acquitted in the killings. “A drop of honey in a pool of poison,” said Hassan el-Masry, 19, who lost an eye during last year’s clashes.


Nevine Ramzy and Mai Ayyad contributed reporting.



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Sony at greater risk than Panasonic in electronics downturn: Fitch

TOKYO (Reuters) - Panasonic Corp has a better chance than rival Sony Corp of surviving Japan's consumer electronics slump because of its unglamorous but stable appliance business of washing machines and fridges, credit rating agency Fitch said Friday.


Fitch cut Panasonic's rating by two notches to BB and Sony three notches to BB minus on Thursday, the first time one of the three major ratings agencies have put the creditworthiness of either company into junk-bond territory.


Rival agencies Moody's and S&P rate both of Japan's consumer electronic giants at the same level, just above junk status. Moody's last cut its rating on Panasonic on Tuesday.


Panasonic "has the advantage of a relatively stable consumer appliance business that is still generating positive margins", Matt Jamieson, Fitch's head of Asia-Pacific, said in a conference call on Friday to explain its ratings downgrades.


But at Sony, he added, "most of their electronic business are loss making, they appear to be overstretched."


Japan's TV industry has been bested by cheaper, more innovative models from Samsung Electronics and other foreign rivals, while tablets and smartphones built by Apple Inc have become the dominant consumer electronics devices.


Investors are focusing on the fate of Sony and Panasonic after another struggling Japanese consumer electronics firm, Sharp Corp, maker of the Aquos TV, secured a $4.6 billion bail-out by banks including Mizuho Financial Group and Mitsubishi UFJ Financial Group.


Sony and Panasonic have chosen divergent survival paths.


Panasonic, maker of the Viera TV, is looking to expand its businesses in appliances, solar panels, lithium batteries and automotive components. Appliances amount to around only 6 percent of the company's sales, but they generate margins of more than 6 percent and make up a big chunk of operating profit.


Sony, creator of the Walkman, is doubling down on consumer gadgets in a bid to regain ground from Samsung and Apple in mobile devices while bolstering digital cameras and gaming.


The latest downgrades will curtail the ability of both Japanese companies to raise money in credit markets to help fund restructurings of their business portfolios.


For now, however, that impact is limited, given the support Panasonic and Sony are receiving from their banks.


In October, Panasonic, which expects to lose $10 billion in the year to March 31, secured $7.6 billion of loan commitments from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ, a financing backstop it says will help it avoid having to seek capital in credit markets.


Sony, which has forecast a full-year profit of $1.63 billion helped by the sale of a chemicals business to a Japanese state bank, announced plans to raise $1.9 billion through a convertible bond before the latest rating downgrade.


Thomson Reuters' Starmine structural model, which evaluates market views of credit risk, debt levels and changes in asset values gives Panasonic and Sony an implied rating of BB minus. Sharp's implied rating is three notches lower at B minus.


Standard & Poor's rates Panasonic and Sony at BBB, the second lowest of the investment grade, while Moody's Investors Service has them on Baa3, the lowest of its high-grade category. Moody's has a negative outlook for both firms while S&P sees a stable outlook for Panasonic and a negative one for Sony.


Stock markets in Japan were closed on Friday for a national holiday.


(Reporting by Tim Kelly; Editing by Mark Bendeich)


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'Dallas' star Larry Hagman dies in Texas

J.R. Ewing was a business cheat, faithless husband and bottomless well of corruption. Yet with his sparkling grin, Larry Hagman masterfully created the charmingly loathsome oil baron — and coaxed forth a Texas-size gusher of ratings — on television's long-running and hugely successful nighttime soap, "Dallas."

Although he first gained fame as nice guy Major Tony Nelson on the fluffy 1965-70 NBC comedy "I Dream of Jeannie," Hagman earned his greatest stardom with J.R. The CBS serial drama about the Ewing family and those in their orbit aired from April 1978 to May 1991, and broke viewing records with its "Who shot J.R.?" 1980 cliffhanger that left unclear if Hagman's character was dead.

The actor, who returned as J.R. in a new edition of "Dallas" this year, had a long history of health problems and died Friday due to complications from his battle with cancer, his family said.

"Larry was back in his beloved hometown of Dallas, re-enacting the iconic role he loved the most. Larry's family and closest friends had joined him in Dallas for the Thanksgiving holiday," the family said in a statement that was provided to The Associated Press by Warner Bros., producer of the show.

The 81-year-old actor was surrounded by friends and family before he passed peacefully, "just as he'd wished for," the statement said.

Linda Gray, his on-screen wife and later ex-wife in the original series and the sequel, was among those with Hagman in his final moments in a Dallas hospital, said her publicist, Jeffrey Lane.

"He brought joy to everyone he knew. He was creative, generous, funny, loving and talented, and I will miss him enormously. He was an original and lived life to the fullest," the actress said.

Years before "Dallas," Hagman had gained TV fame on "I Dream of Jeannie," in which he played an astronaut whose life is disrupted when he finds a comely genie, portrayed by Barbara Eden, and takes her home to live with him.

Eden recalled late Friday shooting the series' pilot "in the frigid cold" on a Malibu beach.

"From that day, for five more years, Larry was the center of so many fun, wild and sometimes crazy times. And in retrospect, memorable moments that will remain in my heart forever," Eden said.

Hagman also starred in two short-lived sitcoms, "The Good Life" (NBC, 1971-72) and "Here We Go Again" (ABC, 1973). His film work included well-regarded performances in "The Group," ''Harry and Tonto" and "Primary Colors."

But it was Hagman's masterful portrayal of J.R. that brought him the most fame. And the "Who shot J.R.?" story twist fueled international speculation and millions of dollars in betting-parlor wagers. It also helped give the series a place in ratings history.

When the answer was revealed in a November 1980 episode, an average 41 million U.S. viewers tuned in to make "Dallas" one of the most-watched entertainment shows of all time, trailing only the "MASH" finale in 1983 with 50 million viewers.

It was J.R.'s sister-in-law, Kristin (Mary Crosby) who plugged him — he had made her pregnant, then threatened to frame her as a prostitute unless she left town — but others had equal motivation.

Hagman played Ewing as a bottomless well of corruption with a charming grin: a business cheat and a faithless husband who tried to get his alcoholic wife, Sue Ellen (Gray), institutionalized.

"I know what I want on J.R.'s tombstone," Hagman said in 1988. "It should say: 'Here lies upright citizen J.R. Ewing. This is the only deal he ever lost.'"

On Friday night, Victoria Principal, who co-starred in the original series, recalled Hagman as "bigger than life, on-screen and off. He is unforgettable, and irreplaceable, to millions of fans around the world, and in the hearts of each of us, who was lucky enough to know and love him."

Ten episodes of the new edition of "Dallas" aired this past summer and proved a hit for TNT. Filming was in progress on the sixth episode of season two, which is set to begin airing Jan. 28, the network said.

There was no immediate comment from Warner or TNT on how the series would deal with Hagman's loss.

In 2006, he did a guest shot on FX's drama series "Nip/Tuck," playing a macho business mogul. He also got new exposure in recent years with the DVD releases of "I Dream of Jeannie" and "Dallas."

Dallas Mayor Mike Rawlings said Saturday morning in a statement that Hagman's role as J.R. helped the city gain "worldwide recognition."

"Larry is a North Texas jewel that was larger than life and he will be missed by many in Dallas and around the world," Rawlings said.

The Fort Worth, Texas, native was the son of singer-actress Mary Martin, who starred in such classics as "South Pacific" and "Peter Pan." Martin was still in her teens when he was born in 1931 during her marriage to attorney Ben Hagman.

As a youngster, Hagman gained a reputation for mischief-making as he was bumped from one private school to another. He made a stab at New York theater in the early 1950s, then served in the Air Force from 1952-56 in England.

While there, he met and married young Swedish designer Maj Axelsson. The couple had two children, Preston and Heidi, and were longtime residents of the Malibu beach colony that is home to many celebrities.

Hagman returned to acting and found work in the theater and in such TV series as "The U.S. Steel Hour," ''The Defenders" and "Sea Hunt." His first continuing role was as lawyer Ed Gibson on the daytime serial "The Edge of Night" (1961-63).

He called his 2001 memoir "Hello Darlin': Tall (and Absolutely True) Tales about My Life."

"I didn't put anything in that I thought was going to hurt someone or compromise them in any way," he told The Associated Press at the time.

Hagman was diagnosed in 1992 with cirrhosis of the liver and acknowledged that he had drank heavily for years. In 1995, a malignant tumor was discovered on his liver and he underwent a transplant.

After his transplant, he became an advocate for organ donation and volunteered at a hospital to help frightened patients.

"I counsel, encourage, meet them when they come in for their operations, and after," he said in 1996. "I try to offer some solace, like 'Don't be afraid, it will be a little uncomfortable for a brief time, but you'll be OK.' "

He also was an anti-smoking activist who took part in "Great American Smoke-Out" campaigns.

Funeral plans had not been announced as of Saturday morning.

"I can honestly say that we've lost not just a great actor, not just a television icon, but an element of pure Americana," Eden said in her statement Friday night. "Goodbye, Larry. There was no one like you before and there will never be anyone like you again."

___

Associated Press writers Erin Gartner in Chicago and Shaya Mohajer in Los Angeles, and AP Television Writer Frazier Moore in New York contributed to this report.

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Indian Prostitutes’ New Autonomy Imperils AIDS Fight





MUMBAI, India — Millions once bought sex in the narrow alleys of Kamathipura, a vast red-light district here. But prostitutes with inexpensive mobile phones are luring customers elsewhere, and that is endangering the astonishing progress India has made against AIDS.




Indeed, the recent closings of hundreds of ancient brothels, while something of an economic victory for prostitutes, may one day cost them, and many others, their lives.


“The place where sex happens turns out to be an important H.I.V. prevention point,” said Saggurti Niranjan, program associate of the Population Council. “And when we don’t know where that is, we can’t help stop the transmission.”


Cellphones, those tiny gateways to modernity, have recently allowed prostitutes to shed the shackles of brothel madams and strike out on their own. But that independence has made prostitutes far harder for government and safe-sex counselors to trace. And without the advice and free condoms those counselors provide, prostitutes and their customers are returning to dangerous ways.


Studies show that prostitutes who rely on cellphones are more susceptible to H.I.V. because they are far less likely than their brothel-based peers to require their clients to wear condoms.


In interviews, prostitutes said they had surrendered some control in the bedroom in exchange for far more control over their incomes.


“Now, I get the full cash in my hand before we start,” said Neelan, a prostitute with four children whose side business in sex work is unknown to her husband and neighbors. (Neelan is a professional name, not her real one.)


“Earlier, if the customer got scared and didn’t go all the way, the madam might not charge the full amount,” she explained. “But if they back out now, I say that I have removed all my clothes and am going to keep the money.”


India has been the world’s most surprising AIDS success story. Though infections did not appear in India until 1986, many predicted the nation would soon become the epidemic’s focal point. In 2002, the C.I.A.’s National Intelligence Council predicted that India would have as many as 25 million AIDS cases by 2010. Instead, India now has about 1.5 million.


An important reason the disease never took extensive hold in India is that most women here have fewer sexual partners than in many other developing countries. Just as important was an intensive effort underwritten by the World Bank and the Bill and Melinda Gates Foundation to target high-risk groups like prostitutes, gay men and intravenous drug users.


But the Gates Foundation is now largely ending its oversight and support for AIDS prevention in India, just as efforts directed at prostitutes are becoming much more difficult. Experts say it is too early to identify how much H.I.V. infections might rise.


“Nowadays, the mobility of sex workers is huge, and contacting them is very difficult,” said Ashok Alexander, the former director in India of the Gates Foundation. “It’s a totally different challenge, and the strategies will also have to change.”


An example of the strategies that had been working can be found in Delhi’s red-light district on Garstin Bastion Road near the old Delhi railway station, where brothels have thrived since the 16th century. A walk through dark alleys, past blind beggars and up narrow, steep and deeply worn stone staircases brings customers into brightly lighted rooms teeming with scores of women brushing each other’s hair, trying on new dresses, eating snacks, performing the latest Bollywood dances, tending small children and disappearing into tiny bedrooms with nervous men who come out moments later buttoning their trousers.


A 2009 government survey found 2,000 prostitutes at Garstin Bastion (also known as G. B.) Road who served about 8,000 men a day. The government estimated that if it could deliver as many as 320,000 free condoms each month and train dozens of prostitutes to counsel safe-sex practices to their peers, AIDS infections could be significantly reduced. Instead of broadcasting safe-sex messages across the country — an expensive and inefficient strategy commonly employed in much of the world — it encircled Garstin Bastion with a firebreak of posters with messages like “Don’t take a risk, use a condom” and “When a condom is in, risk is out.”


Surprising many international AIDS experts, these and related tactics worked. Studies showed that condom use among clients of prostitutes soared.


“To the credit of the Indian strategists, their focus on these high-risk groups paid off,” said Dr. Peter Piot, the former executive director of U.N.AIDS and now director of the London School of Hygiene and Tropical Medicine. A number of other countries, following India’s example, have achieved impressive results over the past decade as well, according to the latest United Nations report, which was released last week.


Sruthi Gottipati contributed reporting in Mumbai and New Delhi.



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