Chinese Regulator’s Family Profited From Stake in Insurer

The New York Times

The Ping An International Finance Center, being built in Shenzhen. Ping An is among the world’s biggest financial institutions.

SHANGHAI — Relatives of a top Chinese regulator profited enormously from the purchase of shares in a once-struggling insurance company that is now one of China’s biggest financial powerhouses, according to interviews and a review of regulatory filings.

The regulator, Dai Xianglong, was the head of China’s central bank and also had oversight of the insurance industry in 2002, when a company his relatives helped control bought a big stake in Ping An Insurance that years later came to be worth billions of dollars. The insurer was drawing new investors ahead of a public stock offering after averting insolvency a few years earlier.

With growing attention on the wealth amassed by families of the politically powerful in China, the investments of Mr. Dai’s relatives illustrate that the riches extend beyond the families of the political elites to the families of regulators with control of the country’s most important business and financial levers. Mr. Dai, an economist, has since left his post with the central bank and now manages the country’s $150 billion social security fund, one of the world’s biggest investment funds.

How much the relatives made in the deal is not known, but analysts say the activity raises further doubts about whether the capital markets are sufficiently regulated in China.

Nicholas C. Howson, an expert in Chinese securities law at the University of Michigan Law School, said: “While not per se illegal or even evidence of corruption, these transactions feed into a problematic perception that is widespread in the P.R.C.: the relatives of China’s highest officials are given privileged access to pre-I.P.O. properties.” He was using the abbreviation for China’s official name, the People’s Republic of China.

The company that bought the Ping An stake was controlled by a group of investment firms, including two set up by Mr. Dai’s son-in-law, Che Feng, as well as other firms associated with Mr. Che’s relatives and business associates, the regulatory filings show.

The company, Dinghe Venture Capital, got the shares for an extremely good price, the records show, paying a small fraction of what a large British bank had paid per share just two months earlier. The company paid $55 million for its Ping An shares on Dec. 26, 2002. By 2007, the last time the value of the investment was made public, the shares were worth $3.1 billion.

In its investigation, The New York Times found no indication that Mr. Dai had been aware of his relatives’ activities, or that any law had been broken. But the relatives appeared to have made a fortune by investing in financial services companies over which Mr. Dai had regulatory authority.

In another instance, in November 2002, Dinghe acquired a big stake in Haitong Securities, a brokerage firm that also fell under Mr. Dai’s jurisdiction, according to the brokerage firm’s Shanghai prospectus.

By 2007, just after Haitong’s public listing in Shanghai, those shares were worth about $1 billion, according to public filings. Later, between 2007 and 2010, Mr. Dai’s wife, Ke Yongzhen, was chairwoman on Haitong’s board of supervisors.

A spokesman for Mr. Dai and the National Social Security Fund did not return phone calls seeking comment. A spokeswoman for Mr. Che, the son-in-law, denied by e-mail that he had ever held a stake in Ping An. The spokeswoman said another businessman had bought the Ping An shares and then, facing financial difficulties, sold them to a group that included Mr. Che’s friends and relatives, but not Mr. Che.

The businessman “could not afford what he has created, so he had to sell his shares all at once,” the spokeswoman, Jenny Lau, wrote in an e-mail.

The corporate records reviewed by The Times, however, show that Mr. Che, his relatives and longtime business associates set up a complex web of companies that effectively gave him and the others control of Dinghe Venture Capital, which made the investments in Ping An and Haitong Securities. The records show that one of the companies later nominated Mr. Che to serve on the Ping An board of supervisors. His term ran from 2006 to 2009.

The Times reported last month that another investment company had also bought shares in Ping An Insurance at an unusually low price on the same day in 2002 as Dinghe Venture Capital. That company, Tianjin Taihong, was later partly controlled by relatives of Prime Minister Wen Jiabao, then serving as vice premier with oversight of China’s financial institutions. In late 2007, the shares Taihong bought in Ping An were valued at $3.7 billion.

The investments by Dinghe and Taihong are significant in part because by late 2002, Beijing regulators had granted Ping An an unusual waiver to rules that would have forced the insurer to sell off some divisions. Throughout the late 1990s, the company was fighting rules that would have required a breakup, a move that Ping An executives worried could lead to bankruptcy.

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Obama Accuses Republicans of Blocking Tax Deal

Pete Souza/The White House, via NBC

President Obama spoke with David Gregory of NBC's "Meet The Press" in the Blue Room of the White House during an interview taped on Saturday.

WASHINGTON — President Obama on Sunday implored Congress to act in the next 48 hours to avert the sharp tax increases and benefit cuts scheduled to take effect beginning on Tuesday, but there were indications that negotiations on the Hill were making little progress.

In an appearance on the NBC program “Meet the Press,” Mr. Obama accused Republicans of blocking action on measures to prevent taxes from rising for most Americans, threatening the still-fragile economic recovery.

“We have been talking to the Republicans ever since the election was over,” Mr. Obama said in the interview, which was taped on Saturday. “They have had trouble saying yes to a number of repeated offers. Yesterday I had another meeting with the leadership, and I suggested to them if they can’t do a comprehensive package of smart deficit reductions, let’s at minimum make sure that people’s taxes don’t go up and that two million people don’t lose their unemployment insurance.”

“And I was modestly optimistic yesterday, but we don’t yet see an agreement,” Mr. Obama said. “And now the pressure’s on Congress to produce.”

Unless Congress acts by midnight Monday, a broad set of tax increases and federal spending cuts will be automatically imposed on Jan. 1, affecting virtually every taxpayer and government program. The spending cuts were put in place earlier this year as draconian incentives that would force the president and lawmakers to confront the nation’s growing debt. Now, lawmakers are trying to keep them from happening, though it seemed likely that the cuts, known as sequestration, would be left for the next Congress, to be sworn in this week.

As of late Sunday morning, talks were not going well, according to two officials with knowledge of the negotiations. Republicans were pushing for the largest deficit reduction deal they could get in the time remaining, the two officials said. They have told Democrats that they are willing to put off scheduled cuts to health care providers treating Medicare patients but that they want to pay for it with spending cuts elsewhere.

They also want to include Mr. Obama’s offer to change the way inflation is calculated to slow the growth of benefit programs like Social Security and raise more revenue.

Democrats have balked at both, the officials said, fearing that any such concessions now would only increase demands for addition concessions in the coming weeks when talks resume on a “grand bargain” to reduce the deficit.

Both sides worry that the confrontational tone the president took on “Meet the Press” was not helpful.

A spokesman for Senator McConnell, Don Stewart, issued a statement criticizing Mr. Obama’s remarks. “While the president was taping those discordant remarks yesterday,” Mr. Stewart said, “Senator McConnell was in the office working to bring Republicans and Democrats together on a solution. Discussions continue today.”

House Speaker John Boehner of Ohio, in his comments, pointed to the president as the problem. Republicans have tried to reach an agreement, Mr. Boehner said, but “the president has continued to insist on a package skewed dramatically in favor of higher taxes that would destroy jobs.”

Republicans have blamed Mr. Obama for seeking to punish the wealthy with large tax increases and for not negotiating in good faith. They say his approach would worsen the deficit by protecting Democratic constituency groups from tax increases and benefit reductions while imposing sharp penalties on farmers and small business owners.

Senator John Barrasso of Wyoming, a member of the Republican leadership, said Sunday on the CNN program “State of the Union” that Mr. Obama was not dealing with the real issue imperiling the economy — the Democrats’ “addiction to spending.”

The president and party leaders in the House and Senate have been seeking a compromise measure that would protect middle-income families from the worst jolt of tax increases, but so far there is no agreement on where to draw the line. With the Bush-era tax cuts expiring, Mr. Obama and Democrats have said they want tax rates to rise on income over $250,000 a year, while Republicans want a higher threshold, perhaps at $400,000.

As part of the last-minute negotiations, the lawmakers have haggled over unemployment benefits, cuts in Medicare payments to doctors, taxes on large inheritances and how to limit the impact of the alternative minimum tax, a parallel income tax system that is intended to ensure the rich pay a fair share but that is increasingly encroaching on the middle class.

Mr. Obama has said that if talks between the Senate leaders broke down, he wanted the Senate to schedule an up-or-down vote on a narrower measure that would extend only the middle-class tax breaks and unemployment benefits. The Senate majority leader, Harry Reid of Nevada, said he would schedule such a vote on Monday absent a deal.

In his comments, Mr. Obama singled out the top Republican leaders — Senator McConnell and Mr. Boehner — for threatening to derail any deal in order to protect the wealthiest Americans.

Jonathan Weisman contributed reporting.

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Apple loses another copyright lawsuit in China: Xinhua

SHANGHAI (Reuters) - A Chinese court has fined Apple Inc 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People's Court ruled on Thursday, Xinhua said.

Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.

"We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy," Bei Zhicheng, a spokesman for the group, told Reuters.

Apple said in a statement that it takes copyright infringement complaints "very seriously".

"We're always updating our service to better assist content owners in protecting their rights," Apple spokeswoman Carolyn Wu said.

China has the world's largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.

Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.

($1 = 6.2360 Chinese yuan)

(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)

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'The Hobbit' stays atop box office for third week

LOS ANGELES (AP) — "The Hobbit: An Unexpected Journey" continues to rule them all at the box office, staying on top for a third-straight week with nearly $33 million.

The Warner Bros. fantasy epic from director Peter Jackson, based on the J.R.R. Tolkien novel, has made $222.7 million domestically alone.

Two big holiday movies — and potential awards contenders — also had strong openings. Quentin Tarantino's spaghetti Western-blaxploitation mash-up "Django Unchained" came in second place for the weekend with $30.7 million. The Weinstein Co. revenge epic, starring Jamie Foxx and Christoph Waltz, has earned $64 million since its Christmas Day opening.

And in third place with $28 million was the sweeping, all-singing "Les Miserables." The Universal Pictures musical starring Hugh Jackman and Anne Hathaway has made $67.5 million since debuting on Christmas.

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Well: Exercise and the Ever-Smarter Human Brain

Anyone whose resolve to exercise in 2013 is a bit shaky might want to consider an emerging scientific view of human evolution. It suggests that we are clever today in part because a million years ago, we could outrun and outwalk most other mammals over long distances. Our brains were shaped and sharpened by movement, the idea goes, and we continue to require regular physical activity in order for our brains to function optimally.

Phys Ed

Gretchen Reynolds on the science of fitness.

The role of physical endurance in shaping humankind has intrigued anthropologists and gripped the popular imagination for some time. In 2004, the evolutionary biologists Daniel E. Lieberman of Harvard and Dennis M. Bramble of the University of Utah published a seminal article in the journal Nature titled “Endurance Running and the Evolution of Homo,” in which they posited that our bipedal ancestors survived by becoming endurance athletes, able to bring down swifter prey through sheer doggedness, jogging and plodding along behind them until the animals dropped.

Endurance produced meals, which provided energy for mating, which meant that adept early joggers passed along their genes. In this way, natural selection drove early humans to become even more athletic, Dr. Lieberman and other scientists have written, their bodies developing longer legs, shorter toes, less hair and complicated inner-ear mechanisms to maintain balance and stability during upright ambulation. Movement shaped the human body.

But simultaneously, in a development that until recently many scientists viewed as unrelated, humans were becoming smarter. Their brains were increasing rapidly in size.

Today, humans have a brain that is about three times larger than would be expected, anthropologists say, given our species’ body size in comparison with that of other mammals.

To explain those outsized brains, evolutionary scientists have pointed to such occurrences as meat eating and, perhaps most determinatively, our early ancestors’ need for social interaction. Early humans had to plan and execute hunts as a group, which required complicated thinking patterns and, it’s been thought, rewarded the social and brainy with evolutionary success. According to that hypothesis, the evolution of the brain was driven by the need to think.

But now some scientists are suggesting that physical activity also played a critical role in making our brains larger.

To reach that conclusion, anthropologists began by looking at existing data about brain size and endurance capacity in a variety of mammals, including dogs, guinea pigs, foxes, mice, wolves, rats, civet cats, antelope, mongooses, goats, sheep and elands. They found a notable pattern. Species like dogs and rats that had a high innate endurance capacity, which presumably had evolved over millenniums, also had large brain volumes relative to their body size.

The researchers also looked at recent experiments in which mice and rats were systematically bred to be marathon runners. Lab animals that willingly put in the most miles on running wheels were interbred, resulting in the creation of a line of lab animals that excelled at running.

Interestingly, after multiple generations, these animals began to develop innately high levels of substances that promote tissue growth and health, including a protein called brain-derived neurotrophic factor, or BDNF. These substances are important for endurance performance. They also are known to drive brain growth.

What all of this means, says David A. Raichlen, an anthropologist at the University of Arizona and an author of a new article about the evolution of human brains appearing in the January issue of Proceedings of the Royal Society Biology, is that physical activity may have helped to make early humans smarter.

“We think that what happened” in our early hunter-gatherer ancestors, he says, is that the more athletic and active survived and, as with the lab mice, passed along physiological characteristics that improved their endurance, including elevated levels of BDNF. Eventually, these early athletes had enough BDNF coursing through their bodies that some could migrate from the muscles to the brain, where it nudged the growth of brain tissue.

Those particular early humans then applied their growing ability to think and reason toward better tracking prey, becoming the best-fed and most successful from an evolutionary standpoint. Being in motion made them smarter, and being smarter now allowed them to move more efficiently.

And out of all of this came, eventually, an ability to understand higher math and invent iPads. But that was some time later.

The broad point of this new notion is that if physical activity helped to mold the structure of our brains, then it most likely remains essential to brain health today, says John D. Polk, an associate professor of anthropology at the University of Illinois at Urbana-Champaign, and co-author, with Dr. Raichlen, of the new article.

And there is scientific support for that idea. Recent studies have shown, he says, that “regular exercise, even walking,” leads to more robust mental abilities, “beginning in childhood and continuing into old age.”

Of course, the hypothesis that jogging after prey helped to drive human brain evolution is just a hypothesis, Dr. Raichlen says, and almost unprovable.

But it is compelling, says Harvard’s Dr. Lieberman, who has worked with the authors of the new article. “I fundamentally agree that there is a deep evolutionary basis for the relationship between a healthy body and a healthy mind,” he says, a relationship that makes the term “jogging your memory” more literal than most of us might have expected and provides a powerful incentive to be active in 2013.

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Narrower Tax Deal Floated as Lawmakers to Sit With Obama

WASHINGTON — Congressional leaders prepared for what was looming as a make-or-break White House meeting on the fiscal crisis Friday afternoon as top aides said they were exploring a scaled-back proposal that would prevent tax increases on household income of $400,000 or below.

The potential compromise, which was in the early stages and far from a certainty, was emerging as the top four Congressional leaders — Senator Harry Reid, the majority leader; Senator Mitch McConnell, the Republican leader; Speaker John A. Boehner; and Representative Nancy Pelosi, the Democratic leader — were set to meet with President Obama as a group for the first time in weeks to try to reach a resolution as Congress headed toward a rare New Year’s Eve session.

Congressional officials say staff-level talks between the White House and the Senate Republican leader are centering around a deal that would extend all the expiring Bush income tax cuts up to $400,000 in income. Some spending cuts would pay for a provision putting off a sudden cut in payments to medical providers treating Medicare patients. The deal would also prevent an expansion of the alternative minimum tax to keep it from hitting more of the middle class. It would extend a raft of already expired business tax cuts, like the research and development credit, and would renew tax cuts for the working poor and the middle class included in the 2009 stimulus law. The estate tax would stay at current levels.

It would not stop automatic spending cuts from hitting military and domestic programs beginning on Wednesday, nor would it raise the statutory borrowing limit, which will be reached on Monday. Congressional aides said those issues would be dealt with early next year in yet another showdown.

White House officials denied that any such offer was developing and said that the president was sticking with his insistence that household income only up to $250,000 would be protected from tax increases.

While neither side was confident of any agreement, some top lawmakers said there was still a chance of a breakthrough that could at least avoid the most far-reaching economic effects. “I am hopeful that there will be a deal that avoids the worst parts of the fiscal cliff; namely, taxes’ going up on middle-class people,” Senator Charles E. Schumer, the No. 3 Senate Democrat, said Friday on the “Today” show on NBC. “I think there can be. And I think the odds are better than people think that they could be.”

Democrats from high-tax, high-wealth states have pressed the White House and their leaders to accept a threshold higher than the president’s $250,000, but they appear ready to accept anything that can pass.

“I have a very practical standard to apply: whatever threshold we need to avoid the fiscal cliff,” said Senator Joseph I. Lieberman, a Democrat-turned-independent from Connecticut.

Much of the legislative attention was focused on Mr. McConnell as Democrats pushed him to provide assurances that Republicans would not use procedural tactics to block any measure that the Senate might consider. House Republican leaders have already said they would be willing to consider whatever legislation the Senate could pass when the House convenes beginning Sunday afternoon. If Republicans chose to erect hurdles to any legislation, Congress might not have sufficient time to advance a measure before the deadline on Tuesday.

Mr. McConnell was well aware of the Democratic efforts to put the onus on him. “Make no mistake: the only reason Democrats have been trying to deflect attention onto me and my colleagues over the past few weeks is that they don’t have a plan of their own that could get bipartisan support,” he said on Thursday.

But he also said he was willing to review any proposal that would come from the White House and then “we’ll decide how best to proceed.”

“Hopefully there is still time for an agreement of some kind that saves the taxpayers from a wholly preventable economic crisis,” he added.

As it awaited a proposal on tax and spending issues, the Senate did make some progress on other legislation, sending the president a renewal of antiterrorism surveillance laws and advancing some relief for states and communities hit by Hurricane Sandy this year.

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Apple loses another copyright lawsuit in China: Xinhua

SHANGHAI (Reuters) - A Chinese court has fined Apple Inc 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People's Court ruled on Thursday, Xinhua said.

Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.

"We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy," Bei Zhicheng, a spokesman for the group, told Reuters.

Apple said in a statement that it takes copyright infringement complaints "very seriously".

"We're always updating our service to better assist content owners in protecting their rights," Apple spokeswoman Carolyn Wu said.

China has the world's largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.

Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.

($1 = 6.2360 Chinese yuan)

(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)

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FBI removes many redactions in Marilyn Monroe file

LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning acquaintances who drew concern from government officials and her own entourage.

But the files, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the file show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.

Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.

The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.

A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.

"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.

Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.

"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."

Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.

The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.

For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.

A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."

That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."

"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."

Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.

The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.

For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.

"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Surgery Returns to NYU Langone Medical Center

Chang W. Lee/The New York Times

Senator Charles E. Schumer spoke at a news conference Thursday about the reopening of NYU Langone Medical Center.

NYU Langone Medical Center opened its doors to surgical patients on Thursday, almost two months after Hurricane Sandy overflowed the banks of the East River and forced the evacuation of hundreds of patients.

While the medical center had been treating many outpatients, it had farmed out surgery to other hospitals, which created scheduling problems that forced many patients to have their operations on nights and weekends, when staffing is traditionally low. Some patients and doctors had to postpone not just elective but also necessary operations for lack of space at other hospitals.

The medical center’s Tisch Hospital, its major hospital for inpatient services, between 30th and 34th Streets on First Avenue, had been closed since the hurricane knocked out power and forced the evacuation of more than 300 patients, some on sleds brought down darkened flights of stairs.

“I think it’s a little bit of a miracle on 34th Street that this happened so quickly,” Senator Charles E. Schumer of New York said Thursday.

Mr. Schumer credited the medical center’s leadership and esprit de corps, and also a tour of the damaged hospital on Nov. 9 by the administrator of the Federal Emergency Management Agency, W. Craig Fugate, whom he and others escorted through watery basement hallways.

“Every time I talk to Fugate there are a lot of questions, but one is, ‘How are you doing at NYU?’ ” the senator said.

The reopening of Tisch to surgery patients and associated services, like intensive care, some types of radiology and recovery room anesthesia, was part of a phased restoration that will continue. Besides providing an essential service, surgery is among the more lucrative of hospital services.

The hospital’s emergency department is expected to delay its reopening for about 11 months, in part to accommodate an expansion in capacity to 65,000 patient visits a year, from 43,000, said Dr. Andrew W. Brotman, its senior vice president and vice dean for clinical affairs and strategy.

In the meantime, NYU Langone is setting up an urgent care center with 31 bays and an observation unit, which will be able to treat some emergency patients. It will initially not accept ambulances, but might be able to later, Dr. Brotman said. Nearby Bellevue Hospital Center, which was also evacuated, opened its emergency department to noncritical injuries on Monday.

Labor and delivery, the cancer floor, epilepsy treatment and pediatrics and neurology beyond surgery are expected to open in mid-January, Langone officials said. While some radiology equipment, which was in the basement, has been restored, other equipment — including a Gamma Knife, a device using radiation to treat brain tumors — is not back.

The flooded basement is still being worked on, and electrical gear has temporarily been moved upstairs. Mr. Schumer, a Democrat, said that a $60 billion bill to pay for hurricane losses and recovery in New York and New Jersey was nearing a vote, and that he was optimistic it would pass in the Senate with bipartisan support. But the measure’s fate in the Republican-controlled House is far less certain.

The bill includes $1.2 billion for damage and lost revenue at NYU Langone, including some money from the National Institutes of Health to restore research projects. It would also cover Long Beach Medical Center in Nassau County, Bellevue, Coney Island Hospital and the Veterans Affairs hospital in Manhattan.

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Putin to Sign Ban on U.S. Adoptions of Russian Children

MOSCOW President Vladimir V. Putin said on Thursday that he would sign into law a bill banning the adoption of Russian children by American citizens, retaliating against an American law that punishes Russians accused of violating human rights and dealing a potentially grave setback to bilateral relations.

Mr. Putin announced his decision at a meeting with senior government officials, including cabinet members and legislative leaders. The adoption ban, included in a broader law aimed at retaliating against the United States, was approved unanimously by the Federation Council, the upper chamber of Parliament, on Wednesday.

Mr. Putin also said he would sign a decree calling for improvements in Russia’s deeply troubled child welfare system that the Federation Council also adopted Wednesday. “I intend to sign the law,” Mr. Putin said, “as well as a presidential decree changing the procedure of helping orphaned children, children left without parental care, and especially children who are in a disadvantageous situation due to their health problems.”

United States officials have strongly criticized the measure and have urged the Russian government not to enmesh orphaned children in politics.

“It is misguided to link the fate of children to unrelated political considerations,” a State Department spokesman, Patrick Ventrell, said on Wednesday before Mr. Putin announced his decision.

Internally, however, Obama administration officials have been debating how strongly to respond to the adoption ban, and are trying to assess the potential implications for other aspects of the relationship with Russia. The United States, for example, now relies heavily on overland routes through Russia to ship supplies to military units in Afghanistan, and has enlisted Russia’s help in containing Iran’s nuclear program. The former cold war rivals also have sharp disagreements, notably over the civil war in Syria.

Until Thursday, these larger considerations, along with the possibility that Mr. Putin might veto the adoption bill, seemed to forestall a more forceful response from Washington.

The ban is set to take effect on Tuesday, and some senior officials in Moscow said they expected it to have the immediate effect of blocking the departure of 46 children whose adoptions by American parents were nearly completed. Adoption agency officials in the United States who work regularly with Russian orphanages said they expected the number of families immediately affected by the ban to be far larger, about 200 to 250 who have already identified a child that they planned to adopt.

Since Mr. Putin returned to the presidency in May, Russian officials have used a juggernaut of legislation and executive decisions to curtail the United States’ influence and involvement in Russia, undoing major partnerships that began after the fall of the Soviet Union.

The adoption ban, however, is the first step to take direct aim at the American public and would effectively undo a bilateral agreement on international adoptions that was ratified this year and took effect Nov. 1. That agreement called for heightened oversight in response to several high-profile cases of abuse and deaths of adopted Russian children in the United States.

About 1,000 Russian children were adopted in 2011 by parents from the United States, which leads in adoptions here, and more than 45,000 such children have been adopted by American parents since 1999.

Pavel A. Astakhov, Russia’s child rights commissioner and a major proponent of the ban, said the 46 pending adoptions would be blocked regardless of previous agreements, and he expressed no regrets over the likely emotional turmoil for the families involved.

“The children who have been chosen by foreign American parents — we know of 46 children who were seen, whose paperwork was processed, who came in the sights of American agencies,” Mr. Astakhov said in his statement. “They will not be able to go to America, to those who wanted to see them as their adopted children. There is no need to go out and make a tragedy out of it.”

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