Terror group fills Syria rebels' space






STORY HIGHLIGHTS


  • U.S. declared a key opposition group in Syria a terrorist organization

  • New report says it is the most effective group in the opposition, with 5,000 fighters

  • Nada Bakos: The group has ties to al Qaeda but also seeks to provide social services

  • She says the chances are slim that it could be persuaded to give up radical goals




Editor's note: Nada Bakos is a former Central Intelligence Agency analyst.


(CNN) -- In the midst of the struggle against Bashar al-Assad's government stands Jabhat al-Nusra, recently designated by the U.S. State Department as a foreign terrorist organization.


A new report by the Quilliam Foundation in London says the organization is the most effective arm of the Syrian insurgency and now fields about 5,000 fighters against the Assad regime.


Practically speaking, the terrorist designation means little that is new for the immediate struggle in Syria. Shortly after al-Nusra claimed credit for one of its early suicide bombings in January 2012, the Obama administration made known al-Nusra's connection to al Qaeda in Iraq, a group with which I was intimately familiar in my capacity as an analyst and targeting officer at the Central Intelligence Agency.



Nada Bakos

Nada Bakos



The administration's position was reinforced when Director of National Intelligence James Clapper one month later testified in front of the Senate Armed Services Committee that "...we believe al-Qaeda in Iraq is extending its reach into Syria."


Analysis: Study shows rise of al Qaeda affiliate in Syria


Al-Nusra is filling a power vacuum through charitable efforts to galvanize local support and generating influence among Syrians. In light of al-Nusra's influence in Syria, the real question is not so much about the scope and scale of al-Nusra currently, but rather how should the United States respond to its rise, particularly after al-Assad's eventual exit?



Historically, the U.S. government seemed to believe that as soon as people are given the chance, they will choose and then create a Jeffersonian democracy. Then we are surprised, if not outraged, that people turn to organizations such as Hamas, Hezbollah or the Muslim Brotherhood in electoral contests. These organizations often provide the basic necessities that people need to survive: food, water, medical care, education and security.


As ideologically distasteful as we might find them, they are often doing things corrupt, weak or failing governments do not: providing the basic necessities that people need to survive (let alone create the conditions that enable people to aspire to thrive).


Why does al-Nusra keep quiet about its ties to al Qaeda in Iraq? The documents pulled from the Abottabad raid that killed Osama bin Laden shed light on his awareness that the al Qaeda brand had been deteriorating.








Bin Laden urged regional groups, "If asked, it would be better to say there is a relationship with al Qaeda, which is simply a brotherly Islamic connection, and nothing more," according to CNN. Bin Laden and Ayman al-Zawahiri had criticized the Jordanian-born founder and leader of al Qaeda in Iraq, Abu Musab al-Zarqawi, for his killing of civilians and lack of political acumen to win public support.


Talk about al Qaeda seems distant. It was a bogeyman made real in 1993 when it unsuccessfully attacked the World Trade Center and terrifyingly tangible in 2001 when its operatives succeeded in destroying the twin towers and expanded their attacks to the Pentagon and the air over Pennsylvania. Its looming shadow has since faded from the public eye, particularly with the death of bin Laden. Its vision and ideology, however, continue to have a strong appeal.


Now that al Qaeda central has a less visible role, what makes players like al-Nusra and al Qaeda in Iraq threats? Even today, after Zarqawi's death, al Qaeda in Iraq has managed to continue to wreak havoc in Iraq and in the region through an autonomous, adaptable structure.


Al-Nusra has declared itself a player in the fight for a global jihad, a bold statement for what is today a localized group . Even small groups, however, have the potential to disrupt regional stability and complicate America's pursuit of its national security objectives—a fact I learned firsthand tracking and trying to stem the rise, influence and efficacy of al Qaeda in Iraq in the aftermath of the U.S. invasion of Iraq.


Zarqawi, until his death in 2006, was able to confound U.S. forces and attack Jordan by attracting recruits from North Africa (including Libya), Central Europe, Jordan and Syria.


Some of Zarqawi's earliest recruits were veterans of the Syrian Muslim Brotherhood, an organization that lashed out against the Syrian government during the 1980s. Captured records from a raid near the city of Sinjar, Iraq, indicated that during the 2006-2007 time frame, 8% of al Qaeda in Iraq operatives were Syrians. The percentage likely ebbed and flowed as the group formed, became influential and waned, but it suggests that there was no shortage of recruits amenable to engage in religious conflict in Syria as recently as 5-10 years ago.


The most striking thing about the captured records, however, is that it appears almost every foreign fighter entering Iraq to join al Qaeda in Iraq came through Syria. As a targeter, I can tell you that facilitation networks are key: they are the means by which groups such as al Qaeda in Iraq are funded, supplied and sustained. During the Iraq war, Zarqawi's top aides in Syria played a critical role in recruiting, funding and operational planning outside Iraq.


One of the things U.S. officials and the international media should watch for is how al-Nusra uses its terrorist designation: If it seeks to use the declaration to burnish its jihadist credentials, it might be able to bolster the image of the organization in the eyes of the extremist community and parlay that recognition into larger, or steadier, streams of funding—a development that will make the group more viable over the long-term or allow it to expand its operations or influence in the short- to mid-term.


An important differentiator between al Qaeda in Iraq and al-Nusra is one of its tactics: Zarqawi made a practice of indiscriminately killing Iraqi civilians, effectively terrorizing the Iraqi population, especially the Shiite minority. Zarqawi, despite identifying with al Qaeda, had a much thinner theological basis than al Qaeda central.


Key figures at al Qaeda central such as bin Laden and Zawahiri argued with Zarqawi over his tactics, complaining that alienating mainstream Muslims would not help achieve the over-arching goal of instilling Sharia law.


Al-Nusra is using some of the same tactics as al Qaeda in Iraq (e.g., suicide bombings, kidnappings and car bombs), but it appears to be trying to strike a balance Zarqawi was unwilling to make: Not only does it seem to be avoiding alienating—if not antagonizing—the larger population, but it also is providing the people of Syria with a range of goods and services such as food, water and medical care—basic necessities that people need to survive in the best of times, let alone when their country is in the throes of a civil war.


If this becomes a trend, it might signal that al-Nusra aspires to be more like Hezbollah or Hamas, organizations that defy neat categorization based on the range of social, political and military activities they engage in and the resultant legitimacy they have in the eyes of their constituencies.


In the Syrian uprising, the opportunity for meaningful U.S. intervention might have passed: Exhaustion from operations in Iraq and Afghanistan have taken their toll on the U.S. military, have taxed the national treasury, and sapped political will, especially as the state of the economy remains at the center of the debate in Washington.


Our absence from the fight is going to cost us if the al-Assad regime fails, leaving rebel groups like al-Nusra dictating the direction, pace and scope of a new Syria.


Given that managing affairs in the Middle East has never been one of our strong suits, the question at this point should be how can the United States, particularly the Department of State, best engage groups that might be inimical to U.S. values but necessary to our interests in the Middle East? For that, I am not sure there is a clear or simple answer.


One opportunity would be if the United States uses its designation of al-Nusra as both a stick and carrot, cajoling and encouraging it to enter into mainstream politics when (or if) the Assad regime falls.


My read of al-Nusra, however, is that, like Zarqawi, it does not aspire to be a political player and is unlikely to settle for a political role in the new government. Instead, it may aim to play the spoiler for any transitional government and use its resources and political violence to empower and encourage other like-minded extremists. With time and opportunity, al-Nusra could not only add to regional instability in the Middle East, but also rekindle global jihad.



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The opinions expressed in this commentary are solely those of Nada Bakos.






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Bucks' strong second half enough for victory over Bulls









New coach Jim Boylan chuckled pregame Wednesday night when asked if he discussed what happened the last time the Bucks visited the United Center.

"I don't think you want to bring up the fact you were down 27 points midway through a third quarter," Boylan said.

This time, the Bucks "only" trailed by 15 in the opening period, but the comeback carried the same weight. Preventing the Bulls from posting their first, four-game winning streak this season, the Bucks stormed back behind a scintillating performance from Brandon Jennings for a 104-96 triumph.





Jennings scored 20 of his opponent-season-high 35 points in the third period, mocking Nate Robinson's winged airplane routine on two of his four 3-pointers in the period. Robinson, starting for the injured Kirk Hinrich, punctuated his 13 first-quarter points with several demonstrative gestures.

"I really don't take kindly to trash talking because I don't do a lot of trash talking," Jennings said. "I warned him. And then I got ticked off at halftime and just attacked."

That the Bucks rallied despite beating the Suns at home on Tuesday while the Bulls rested made the victory all the more impressive. Boylan is 2-0 since replacing the departed Scott Skiles on Monday, getting 16 points and four 3-pointers off the bench from Mike Dunleavy.

"We had a good edge to start but then we started trading buckets," coach Tom Thibodeau said. "They got to every loose ball, made the effort plays. In the first half, we moved the ball. In the second half, we didn't, which led to their 15 blocked shots."

That's the most blocks for a Bulls' opponent since the Magic had the same on April 6, 2005. Larry Sanders posted seven as the Bulls shot 29.8 percent in the second half.

"Larry's presence around the basket is intimidating," Boylan said. "Guys go in there and they're looking for him."

Robinson disputed this as vehemently as he disputed his duel with Jennings got out of hand, emphasizing on the former that the Bulls kept attacking the basket. As for the latter, Robinson said the trash talking is "just basketball."

Robinson finished with 19 points, six assists, five rebounds and a career-high-tying five steals, so it's not like he got distracted. Still, Thibodeau was asked if he would rather see Robinson keep his emotions in check.

"It's a competitive game," Thibodeau said. "Some guys do it and they're fine. To me, if you do it and that's the way you are and you're not distracted … I prefer just to concentrate on doing your job."

Translated: Yes.

The Bulls' last gasp faded when Marco Belinelli missed a wide-open 3-pointer with 69 seconds left and failed to close a 100-96 deficit. Belinelli later followed with a frustration foul on Sanders, who blocked his attempt on the next possession.

Carlos Boozer posted 22 points and 11 rebounds for his sixth straight double-double, his longest streak as a Bull.

"Having Kirk out was a huge factor because of the pressure he applies to Brandon in the backcourt," Boylan said.

Didn't look like much could stop Jennings.

kcjohnson@tribune.com

Twitter @kcjhoop





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Analysis: Modi's Gujarat growth model might not work across India


SURAT, India (Reuters) - Turning a single Indian state with a long tradition of entrepreneurship and a solid political majority into an investor-friendly economic powerhouse is one thing.


Replicating that experience across a diverse country of 1.2 billion would be a tougher prospect for Narendra Modi, whose leadership of booming Gujarat state has led to his being touted as a potential candidate to become India's next prime minister.


While Modi wins praise even from critics for cutting red tape and making government more responsive and predictable, many ingredients for Gujarat's run of growth were in place well before he took office in 2001.


"It is like an icing on cake sort of thing. You have a nice cake and Modi has done a lot of good icing," said Rakesh Chaudhary, director of Pratibha Group, a textile manufacturer in Palsana on the outskirts of the Gujarat city of Surat.


Industry in Gujarat is helped by a long coastline and plenty of barren land that is easy to turn over to factory use.


The power that comes from a long-standing and heavy majority for his Bharatiya Janata Party (BJP) in the state also gives Modi an advantage that he would not enjoy on a national stage marked by fractious coalition politics.


Despite a controversial past - Modi is accused by critics of not doing enough to stop or of even quietly encouraging religious riots in 2002 that saw as many as 2,000 killed, most of them Muslims - he has established a reputation as an economic reformer in part by building on the strengths of Gujarat and marketing them heavily.


Modi's marketing savvy, aided by the Washington lobbying and public affairs firm APCO Worldwide, will be on display at the biennial "Vibrant Gujarat Summit" that begins on Friday.


Initiated by Modi in 2003 to attract investment after the violence and an earthquake in 2001, the event is attended by thousands of corporate officials who pledge billions in investment, although in reality only a fraction has seen the light of day. Of 12.4 trillion rupees ($225 billion) in investment proposed at the 2009 event, just 8.5 percent had been spent as of November 2011, according to state government data.


"Under Modi's regime, there has been significant improvement in infrastructure growth, significant improvement in industrialization, as well as agriculture," said Jahangir Aziz, senior Asia economist at JPMorgan. "But what has been overplayed is initial conditions were actually pretty decent in Gujarat."


HIGHER OFFICE?


The stocky Modi, who favors traditional Indian attire and a clipped white beard, plays down any prime ministerial ambitions.


But his popularity in Gujarat - the BJP won 115 of the state assembly's 182 seats in a December election - has fuelled speculation that he could lead his Hindu nationalist party in 2014 against India's ruling Congress party, which has been beset by corruption scandals and overseen a sharp economic slowdown.


"His economic record in Gujarat is obviously something which matters a lot to the middle classes. That, coupled with strong leadership," said Swapan Dasgupta, an analyst with links to the BJP who expects Modi to be the party standard-bearer in 2014.


Critics say that while Modi has indeed encouraged investment and helped bring reliable electricity and law and order, double-digit growth has not been shared broadly enough. In the five years through March 2010, some states - including Tamil Nadu and Karnataka - did better at bringing down poverty levels.


"Big business people get a lot from the government and scheduled caste people (minorities) get a lot, but people like us who are in between get nothing," said Bhupendra Thakkar, 50, who earns 6,000 rupees ($109) a month selling fruit near Surat's decrepit railway station.


FRIEND OF BUSINESS


Modi lured Tata Motors to the state in 2008 after the company's plans to build a factory for its low-cost Nano car were thwarted by farmers in West Bengal.


Ford Motor Co and Maruti Suzuki are also building plants in the western state - high profile investments that carry the added benefit of acting as marketing tools.


In the seven years through March 2011, Gujarat's economy grew an annual 10.08 percent at constant prices, against 6.45 percent in the eight years through March 2002 (Modi took office in October 2001), which was still ahead of the all-India average of 6.16 percent. A handful of states, including Maharashtra and Tamil Nadu, clocked bigger gains over the same recent period.


By comparison, policy gridlock at the national level has contributed to a drop-off in corporate investment, putting India on track to record its slowest annual growth rate in a decade.


Accustomed to getting his way, Modi, 62, could struggle to negotiate the coalition politics that have become the norm at the national level and have hindered attempts at reform by Prime Minister Manmohan Singh's Congress-led administration.


"Policymaking has benefited from the fact that the BJP has had absolute majority in the state legislature - an advantage it certainly will not enjoy in the federal parliament," said Anjalika Bardalai, an analyst with the Eurasia Group in London.


Modi has also been able to leverage the business acumen of Gujaratis, a group that has long been known for trading and entrepreneurship and includes a prosperous global diaspora as well as billionaires such as Adani Group chief Gautam Adani and Mukesh Ambani, who controls Reliance Industries, India's most valuable company.


"Modi might not be as successful as he has been here because the business mentality is unique to Gujarat," said Chandrakant Sanghavi, chairman of Sanghavi Exports International, a diamond trader and processor. "It could be prevalent in other states but the ratio may be less." ($1 = 55.0700 Indian rupees)


(Editing by John Chalmers and Alex Richardson)



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Asian shares rise as earnings eyed

TOKYO (Reuters) - Asian shares rose on Wednesday after rounds of profit taking from a sharp rally at the start of the new year subsided, while investors waited warily for corporate earnings season to kick off in full force.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.4 percent, with Australian shares <.axjo> among the outperformers with a 0.4 percent gain to break a three-day losing streak. Hong Kong shares <.hsi> also climbed 0.4 percent.


South Korean shares <.ks11> were virtually flat. Shares in tech heavyweight Samsung Electronics Co Ltd were also flat despite announcing on Tuesday a better-than-expected estimated fourth-quarter operating profit.


"The main (Seoul) index is trading nearly flat after falling steadily since last week's rapid gains, due to concerns about lackluster fourth-quarter earnings outlooks," said Park Jung-sup, an analyst at Daishin Securities.


He said overall market outlooks for fourth-quarter corporate results have been revised down considerably, but worries for earnings shocks remain.


Global shares fell and bond prices rose on Tuesday, with investors cautious ahead of a U.S. earnings season expected to show sluggish growth in quarterly corporate profits.


The U.S. earnings season began on Tuesday with Alcoa Inc , the largest aluminum producer in the U.S., with customers in a wide range of industries, reporting a fourth-quarter profit of $242 million, in line with expectations.


U.S. corporate profits are expected to be higher than the third quarter's lackluster results, but analysts' estimates are down sharply from where they were in October.


Credit Suisse said in a research note that Asian equity market price indices may start to catch up with earnings estimates which had been outperforming market prices, suggesting further upside scope for Asian share prices.


The consensus earnings forecast so far is flat in January, following virtually flat revisions in December, it said.


"It was the persistent EPS downgrades that led to the gap between equity market price indices and EPS. These flat revisions could act as a catalyst for equity market price indices to converge with EPS," Credit Suisse said.


Data flows were light with Australian retail sales showing a surprise softness, falling 0.1 percent in November from October, undershooting forecasts for a 0.3 percent rise on the month and sending the Australian dollar down to session lows of $1.0486 from $1.0517 before the data was released.


China will release its trade data on Thursday, which includes initial estimates for metals imports and exports.



Australian retail sales: http://link.reuters.com/zew92t


China exports graphic: http://link.reuters.com/kun94t


Euro zone retail sales: http://link.reuters.com/tyb25s


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


YEN STAYS WEAK


Japan's benchmark Nikkei stock average <.n225> erased earlier losses to crawl up 0.5 percent as the yen's rebound against the dollar lost steam. Investors had been taking profits from the dollar's steady and sharp rally against the yen of about 12 percent over the past two months. The Nikkei had risen about 21 percent in the same period. <.t/>


The dollar was up 0.5 percent to 87.43 yen, recovering from the day's low of 86.825. It scaled its highest since July 2010 at 88.48 on Friday. The euro also steadied against the yen at 114.35, off the day lows of 113.55. The euro last week hit 115.995 yen, its highest since July 2011.


The Bank of Japan will consider easing monetary policy again at its January 21-22 meeting, by likely boosting buying of government bonds and treasury discount bills, while considering a doubling of its inflation target to 2 percent.


Expectations of much bolder monetary easing from the BOJ to help Japan beat deflation under new Japanese Prime Minister Shinzo Abe have encouraged investors to sell the yen.


But as trading resumed from year-end holidays, analysts and traders said markets were ripe for position adjustments.


"After a good run in risk assets since December, we entered in a phase of consolidation which is moving from Japanese equities to short JPY positions," said Sebastien Galy, FX strategist at Societe Generale in New York, in a note, adding that the dollar could consolidate to 85 yen but must first take out the first Fibonacci retracement at 85.75 yen.


Yen crosses which had been bought the most, including the yen/Korean won, are the most exposed to the correction.


"Such a washout in JPY crosses is the opportunity many long-term investors will be waiting for to continue their switch into strategic short yen positions," he said.


The euro held steady against the dollar at $1.3075.


With no major economic data this week, the euro was seen staying in a range ahead of Thursday's European Central Bank policy meeting and Spanish and Italian bond auctions toward the end of the week.


U.S. crude was nearly flat at $93.17 a barrel, after the annual rebalancing of the S&P GSCI commodity index, which increased its weighting for Brent and reduced its share of U.S. WTI crude. Brent was also little changed at $111.90.


Sentiment turned cautious in Asian credit markets, with the spread on the iTraxx Asia ex-Japan investment-grade index widening slightly by 1 basis point.


(Additional reporting by Joyce Lee in Seoul; Editing by Eric Meijer)



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RG3 to have surgery on torn right knee ligament


WASHINGTON (AP) — Robert Griffin III is having surgery Wednesday on a torn ligament in his right knee — and to see if there's a second ligament that also needs to be repaired.


Baylor coach Art Briles confirmed to USA Today and The Associated Press on Tuesday night that the Washington Redskins rookie has a torn lateral collateral ligament. He said the surgery also will determine whether Griffin has damaged the ACL in that knee.


A person close to Griffin, speaking on condition of anonymity because the Redskins have not made an announcement, also confirmed the details surrounding Griffin's injury to the AP.


A torn LCL requires a rehabilitation period of several months, possibly extending into training camp and the start of next season. A torn ACL is a more severe injury, typically requiring nine to 12 months of recovery, although Minnesota Vikings running back Adrian Peterson make a remarkable return this season some eight months after tearing an ACL — and nearly broke the NFL's single-season rushing record.


Griffin tore his ACL in the same knee while playing for Baylor in the third game of the 2009 season and missed the rest of the year. He was injured on the opening drive against Northwestern State but kept playing until halftime.


Griffin came back to win the Heisman Trophy two years later, and Briles predicted a similar recovery this time.


"RG3 will be good as new, though. I know that!" Briles said in a text message to the AP.


Griffin sprained the LCL last month against the Baltimore Ravens and missed one game. He returned wearing a bulky black brace for subsequent games and reinjured the knee at least twice in Sunday's playoff loss to the Seattle Seahawks, prompting a national debate over whether coach Mike Shanahan endangered his franchise player's career by not taking him out sooner.


The Redskins said an MRI taken after the game was inconclusive, so Griffin flew to Florida on Tuesday for a more detailed examination conducted by orthopedist James Andrews. Andrews will perform the surgery Wednesday.


Griffin, the No. 2 overall pick, was one of several rookie quarterbacks to make an instant impact on the league this season. He set the NFL record for best season passer rating by a rookie QB and led the Redskins to their first NFC East title in 13 years.


But Griffin also had to leave three games early due to injuries — two because of his knee and one because of a concussion — and missed a fourth altogether because of the knee. Shanahan repeatedly said Griffin had clearance from doctors to return to play, but the coach also said he trusted Griffin's own word when deciding that the rookie should continue during Sunday's game — even though Griffin was clearly struggling after reinjuring the knee in the first quarter.


Griffin remained in the game until the fourth quarter, when he hurt the knee again while fielding a bad shotgun snap.


___


AP Sports Writer Stephen Hawkins in Dallas contributed to this report.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Why Fingers & Toes Get Pruney in Water






Fingers may wrinkle when wet to help people grip wet objects, find researchers, who say the pruney feature may have helped human ancestors do the same in wet conditions.


When a person’s hands and feet are soaked in water, wrinkles eventually develop on the tips of fingers and toes. Scientists once thought this puckering resulted from the outermost layer of skin absorbing and swelling with water, but recent studies revealed the nervous system actively controlled this wrinkling by constricting blood vessels below the skin.






That the nervous system controls this behavior suggests these wrinkles served a purpose. Now researchers find these wrinkles could help fingers and toes grip wet surfaces.


“A phenomenon that everybody is familiar with is not just some kind of side effect of the nature of the skin on fingers and toes, but a functional feature that has very likely been selected for by evolution,” researcher Tom Smulders, an evolutionary biologist at Newcastle University in England, told LiveScience.


Smulders and his colleagues had 20 volunteers pick up wet marbles and small lead weights of different sizes. Volunteers attempted the task either with normal, dry hands or after their fingers had wrinkled following a 30-minute soak in warm water. The participants picked up wet items 12 percent faster with wrinkled fingers. [10 Odd Facts About the Human Body]


“We have shown that wrinkled fingers give a better grip in wet conditions,” Smulders said. “It could be working like treads on your car tires, which allow more of the tire to be in contact with the road, [which] gives you a better grip.” Another possibility is that wrinkling causes changes in skin properties, such as its flexibility or stickiness, which help the fingers and toes perform better when wet.


“The most surprising thing to me was how the effect was there in all 20 participants, independent of how fast they were on average,” Smulders said. “I never expected the effect to be so strong and obvious.”


As a potential explanation of why this effect might have evolved, Smulders said, “it could have helped with gathering food from wet vegetation or streams. And as we see the effect in our toes, too, this may have been an advantage as it may have meant our ancestors were able to get a better footing in the rain.”


Wrinkled fingers apparently made no difference when it came to picking up dry objects.


“This raises the question of why we don’t have permanently wrinkled fingers, and we’d like to examine this further,” Smulders said. “Our initial thoughts are that this could diminish the sensitivity in our fingertips or could increase the risk of damage through catching on objects.”


Future research should analyze what other primates or non-primate animals might also show this phenomenon to shed light on when and why it evolved, Smulders said.


“Which other animals share this trait? And is the link among species that share it phylogenetic — that is, they’re all related — or environmental — that is, they all deal with submerged objects, for example?” Smulders said.


The scientists detailed their findings online Jan. 9 in the journal Biology Letters.


Follow LiveScience on Twitter @livescience. We’re also on Facebook & Google+.


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Case of Wall Street greed gone too far




Goldman Sachs CEO Lloyd Blankfein was one of the executives whose stock award was accelerated to beat higher tax rate.




STORY HIGHLIGHTS


  • Goldman Sachs granted $65 million in stock to execs before new tax rates began

  • Susan Antilla says the firm's CEO had endorsed higher rates, called for entitlement cuts

  • She says Goldman benefits from the implicit promise that U.S. will bail it out

  • Antilla: It was unseemly for Goldman to rush the payments to shield execs from new rates




Editor's note: Susan Antilla is a columnist at Bloomberg View and a contributor to TheStreet.com. She has written about finance for more than 30 years. She is author of "Tales From the Boom-Boom Room: The Landmark Legal Battles That Exposed Wall Street's Shocking Culture of Sexual Harassment." Follow her on Twitter @antillaview.


(CNN) -- Nobody likes to pay taxes, so can you blame the good folks at Goldman Sachs & Co. for doing what they could to avoid the higher rates that kicked in on January 1?


While the rest of us were donning our party clothes on New Year's Eve, the legal worker bees at Goldman were pushing the send button on 10 regulatory filings to the Securities and Exchange Commission.


By the time the ball dropped in Times Square, regulators had been notified that $65 million in Goldman stock had been granted a month early, helping a cluster of powerful multimillionaire executives trim their tax tab.


Among the 10 who shared that $65 million, Chief Executive Officer Lloyd Blankfein, Chief Operating Officer Gary Cohn and Chief Financial Officer David Viniar wound up with $8.4 million apiece in Goldman stock.



Susan Antilla

Susan Antilla



Blankfein's compensation in 2011 was $16.2 million. Cohn and Viniar that year made $15.8 million. Even Gordon Gekko would be impressed to see that bosses making that much money were able to catch a tax break for a couple hundred thousand.


The 10 executives who skirted 2013's higher rates were not the only Goldmanites who benefited from the "accelerated" vesting. Michael DuVally, a Goldman spokesman, acknowledged there was "a group larger than" the 10 but declined to say how many. DuVally would not comment on who made the decision to grant the shares early.


The shrewd Goldman move is hardly unique among rich business executives or even 99 percenters of more modest means. It was no secret that higher taxes were coming this year, and taxpayers of all shapes and sizes did what they could to ensure that "tax events" would occur in 2012.



Even environmental activist and Nobel Prize winner Al Gore tried, albeit without success, to unload his Current TV to Al Jazeera before the new year dawned.


What makes the Goldman move distasteful is that it wasn't even two months ago that CEO Blankfein was mouthing off in a Wall Street Journal op-ed that he endorsed tax increases "especially for the wealthiest" -- along with a plug to cut entitlements to all you freeloaders out there.








If you're pushing the position that the rich should pay more to help fix the deficit, it doesn't quite follow to employ a tax dodge, says Dennis Kelleher, president of the Washington-based public interest group Better Markets Inc.


"Goldman's quickie year-end tax shenanigans deprived the government of what it otherwise would get," he says. "So they either cause the debt to go up, or cause others to pay more by the taxes they are avoiding."


DuVally, the Goldman spokesman, declined to comment when I asked whether it was inconsistent for Goldman to make a move for its executives to avoid taxes after Blankfein endorsed increases for the wealthy.


I've got to hand it to Goldman. The firm is a master of the "have-your-cake-and-eat-it-too" brand of politics and public relations. One minute, Goldman is cranking out press releases about its devotion to women entrepreneurs in its philanthropic "10,000 women" program. The next, it is announcing its annual list of new partners that includes a paltry 10 women but 60 men.


Goldman was a victim on the defensive when Greg Smith, a former employee, wrote a New York Times op-ed on March 14, blasting the firm for having "morally bankrupt people" who needed to be weeded out. You could almost feel sorry for poor Goldman, which shipped out a memo reminding employees that their estimable employer had been named one of the best places to work in the United Kingdom only weeks before the London-based Smith's "Why I Am Leaving Goldman Sachs" essay.


By the time Smith published a book seven months later, the firm had turned ruthless revenge-seeker, even sharing parts of Smith's self-evaluations with the media. A "best place to work?" Really? Careful what you say in the press -- and in your HR file -- if you get your paycheck from a Goldman-style operation.


The brouhaha over Smith's op-ed and book stirred up debate of the "What did you expect of an investment bank operating in capitalistic society?" type.


Fair enough. Banks are not in the philanthropy business -- even if they spend as much time as Goldman does talking about its good deeds and famous "business principles." ("Our clients always come first" is famously No. 1 on the list.)


At Goldman and other "too big to fail" banks, though, employees walk through the doors each morning knowing that the rest of us will be forced to bail them out again should another crisis ensue. We taxpayers provide the insurance policy that they enjoy without ever sending us premiums. In October of 2008, Goldman got $10 billion in taxpayer money from the Troubled Asset Relief Program, which it ultimately paid back.


Blankfein, like other bank CEOs, would later make the case that Goldman wasn't "relying on" that government help.


But leaf through the tomes of some of the regulators who lived through the crisis, and you start to wonder whether our tax-dodging heroes might be out of jobs today if the public hadn't fronted a bailout.


From "Bull by the Horns," by former Federal Deposit Insurance Corp. chairman Sheila Bair: Goldman and Morgan Stanley were "teetering on the edge" in the fall of 2008.


From "Bailout: An Inside Account of how Washington Abandoned Main Street While Rescuing Wall Street," by Neil Barofsky, former special inspector general to oversee the Troubled Assets Relief Program: Federal Reserve chairman Ben Bernanke "confided that he believed that Goldman Sachs would have been the next to go" after Morgan Stanley.


We need to change the conversation here.


Goldman and its too-big-to-fail brethren are banks that accepted welfare and are in debt to U.S. taxpayers for averting disaster. This hasn't been about hard-nosed capitalism since those first TARP wire transfers made their way into Goldman Sachs' coffers.


As for the bank's recent tax-reduction maneuver, it's another reminder that Goldman's management is either clueless about how bad it looks or doesn't care. Sometimes bad PR is a just a cost of doing business.


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The opinions expressed in this commentary are solely those of Susan Antilla.






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Attorney: Poisoned lottery winner's widow has 'nothing to hide'









The widow of a West Rogers Park man who died of cyanide poisoning weeks after winning a $1 million lottery jackpot was questioned extensively by Chicago police last month after the medical examiner's office reclassified the death as a homicide, her attorney told the Tribune on Tuesday.


Authorities investigating the death of Urooj Khan also executed a search warrant at the home he had shared with his wife, Shabana Ansari, according to Steven Kozicki, her attorney. Ansari later was interviewed by detectives for more than four hours, answering all their questions, the attorney said.


"She's got nothing to hide," Kozicki said.





The mystery surrounding Khan's death — first reported by the Tribune in a front-page story Monday — has sparked international media interest.


Cook County authorities said Tuesday that they plan to go to court in the next few days for approval to exhume Khan's remains at Rosehill Cemetery. In a telephone interview Tuesday, Medical Examiner Stephen J. Cina said he sent a sworn statement to prosecutors laying out why the body must be exhumed.


"I feel that a complete autopsy is needed for the sake of clarity and thoroughness," Cina said.


Sally Daly, a spokeswoman for the state's attorney's office, confirmed that papers seeking the exhumation would be filed soon in the Daley Center courthouse.


Khan, who owned a dry cleaning business on the city's North Side, died unexpectedly in July at 46, just weeks after winning a million-dollar lottery prize at a 7-Eleven store near his home. Finding no trauma to his body and no unusual substances in his blood, the medical examiner's office declared his death to be from natural causes and he was buried without an autopsy.


About a week later, a relative told authorities to take a closer look at Khan's death. By early December, comprehensive toxicology tests showed that Khan had died of a lethal amount of cyanide, leading the medical examiner's office to reclassify the death a homicide and prompting police and prosecutors to investigate.


While a motive has not been determined, police have not ruled out that Khan was killed because of his big lottery win, a law enforcement source has told the Tribune. He died before he could collect the winnings — about $425,000 after taxes and because he decided to take a lump-sum payment.


According to court records obtained by the Tribune, Khan's brother has squabbled with Ansari over the money in probate court. The brother, Imtiaz, raised concern that because Khan left no will, his 17-year-old daughter from a previous marriage would not get "her fair share" of her father's estate. Khan and Ansari did not have children.


Al-Haroon Husain, an attorney for Ansari in the probate case, said the money was all accounted for and the estate was in the process of being divided up by the court. Under Illinois law, the estate typically would be split evenly between the surviving spouse and Khan's only child, he said.


Kozicki, Ansari's criminal defense attorney, said his client adored her husband and had no financial interest in seeing harm come to him.


"Now in addition to grieving her husband, she's struggling to run the business that he essentially ran while he was alive," Kozicki said. "Once people analyze it, they (would) realize she's in a much worse financial position after his death than she was before."


Reached by phone Tuesday evening at the family dry cleaners, Ansari denied reports that she had fed her husband a traditional Indian meal of ground beef curry before he died. She said he wasn't feeling well after awakening in the middle of the night. She said he sat in a chair and soon collapsed. She then called 911.


Chicago police Superintendent Garry McCarthy, speaking Tuesday at an unrelated news conference, remarked that he had never seen a case like this in 32 years in law enforcement.


"So I'll never say that I've seen everything," he told reporters.


jmeisner@tribune.com


jgorner@tribune.com



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Venezuela postpones inauguration for cancer-stricken Chavez


CARACAS (Reuters) - Venezuela will postpone the inauguration of President Hugo Chavez for a new term due to health problems, the government said on Tuesday, another sign the socialist leader's cancer may be bringing an end to his 14 years in power.


The 58-year-old former soldier who has dominated the South American OPEC nation since 1999 has not been heard from since surgery on December 11 in Cuba - his fourth operation since he was diagnosed with an undisclosed type of cancer in June 2011.


The announcement outraged opposition leaders who insist that Chavez must be sworn in before the National Assembly on January 10 as laid out in the constitution, or temporarily step aside and leave an ally in power.


"The commander president wants us to inform that, based on his medical team's recommendations, the post-operative recovery should extend past January 10," said Vice President Nicolas Maduro, Chavez's chosen successor, in a letter read to the legislature.


"As a result, he will not be able to be present at the National Assembly on that date."


The letter said authorities would seek another date for the inauguration ceremony but did not say when it would take place or give a time frame for Chavez's return from Havana.


Rather than being sworn in by the legislature, he would take his oath at a later date before the Supreme Court, the letter said, as allowed by the constitution.


Government leaders insist Chavez is completely fulfilling his duties as head of state, even though official medical bulletins say he has a severe pulmonary infection and has had trouble breathing.


The government has called for a massive rally outside the presidential palace on Thursday, and allied presidents including Uruguay's Jose Mujica and Bolivia's Evo Morales have confirmed they will visit Venezuela this week despite Chavez's absence.


Argentine President Cristina Fernandez has announced plans to visit Chavez in Havana on Friday.


But the unprecedented silence by the president - famous for regularly speaking for hours in meandering broadcasts - has left many convinced he could be in his last days.


His resignation or death would upend politics in the oil-rich nation, where he enjoys a deity-like status among poor supporters thankful for his social largesse.


His critics call him a fledgling dictator who has squandered billions of dollars from crude sales while dashing the independence of state institutions.


CONSTITUTION DISPUTE


The constitution does not specify what happens if the president does not take office on January 10.


The Supreme Court, controlled by Chavez allies, called a news conference for Wednesday. It is widely expected to announce an interpretation of the constitution that will give Chavez leeway to take office when he is fit to do so.


If he dies or steps aside, new elections would be called within 30 days. Before leaving for Havana in December, the president instructed his supporters to back Maduro in that vote if he were unable to continue.


Opposition leaders argue that Congress chief and Chavez ally Diosdado Cabello should take over, as mandated by the constitution if the president's absence is formally declared.


Cabello has ruled that out, saying the president continues to be in charge.


"Who could have believed the opposition would be screaming for Diosdado Cabello to be given the presidency of the republic?" he said during a rambunctious session of Congress. "That's crazy, the opposition is losing it."


Meanwhile opposition deputies accused the Socialist Party of failing to follow Chavez's instructions - a scene that would have been unimaginable before Chavez's prolonged absence.


"President Chavez is the only one among you who has spoken clearly," said opposition leader Julio Borges.


He was drowned out by pro-Chavez deputies clapping and chanting the socialist leader's name and rebuffed by Cabello, who had long been considered a potential successor to Chavez until he was passed over for Maduro.


"It's not my fault you weren't chosen, don't take your frustration out on me," Borges quipped.


Another opposition deputy complained that during the debate a copy of the constitution was thrown across the chamber from the direction of the Socialist Party's deputies.


Chavez's supporters have held near-daily vigils for his recovery, while opposition activists accuse the president's allies of a Cuban-inspired manipulation of the situation.


Maduro has taken over the day-to-day running of the government and looks set to continue in the role past Thursday.


The mustachioed former bus driver lacks Chavez's charisma, but he has sought to imitate the president's style with vituperative attacks on the opposition and televised ribbon-cutting ceremonies.


With the micro-managing Chavez away, major policy decisions in Venezuela, such as a widely expected devaluation of the bolivar currency, appear to be on hold.


Venezuelan bond prices, which had soared in recent weeks on Chavez's health woes, dipped on Monday and Tuesday as investors' expectations of a quick government change apparently dimmed.


"The 'regime change' euphoria seems excessive taking into account the unclear legal transition and perhaps, more importantly, the risk that regime change does not allow for policy change," New York-based Jefferies' managing director Siobhan Morden said in a note on the bonds.


(Editing by Daniel Wallis and Eric Beech)



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Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.


Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.


Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.


The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.


"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.


Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.


The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.


Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.


In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.


The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.


Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.


Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.


"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.


Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.


Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.


Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.


Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.


Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.


(Reporting By Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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Bama bashes Notre Dame 42-14 in BCS title game


MIAMI GARDENS, Fla. (AP) — Alabama romped to its second consecutive BCS championship, and third in four seasons, beating No. 1 Notre Dame 42-14 in a BCS championship game that was no classic after all.


AJ McCarron threw four touchdown passes and Eddie Lacy ran for 140 yards and scored twice for the second-ranked Crimson Tide, which scored on its first three drives and cruised to the second-most lopsided BCS championship game victory Monday night.


Alabama (13-1) became the third team to win three national titles in four seasons since polls started being used to crown champions in 1936, and the first since Nebraska from 1994-97.


Tide coach Nick Saban now has won four national championships. Only Alabama's Paul "Bear" Bryant, with six, has more.


The Fighting Irish (12-1) didn't score until they were down 35-0 late in the third quarter.


In a matchup of tradition-rich programs tied for the most AP national championships with eight, Notre Dame was looking for its first national championship in 24 years. The Crimson Tide got its ninth.


The Crimson Tide marched with ease on the opening drive, going 82 yards on five plays to take a 7-0 lead on Lacy's 20-yard touchdown run up the middle with 12:03 left in the first quarter.


Notre Dame (12-0) had allowed only two rushing touchdowns in its surprising run to the championship game. The Fighting Irish were the first team to reach the BCS championship game after starting the season unranked. They were trying to become the first team to go from unranked to national champion since BYU in 1984.


Alabama quickly made the Fighting Irish look as if they were in over their heads.


Notre Dame did nothing to respond to Alabama's opening march, and on its punt back, the Crimson Tide might have caught a break. Returner Christion Jones muffed the kick, but Notre Dame was flagged for interfering with the catch, though it was one of Jones' teammates that made contact with him.


Lacy and the Crimson Tide went right back to work, hammering away at Notre Dame's vaunted defense. The Irish struggled to bring down the 220-pound tailback, who even ran through Heisman Trophy finalist Manti Te'o on a screen pass.


In the second quarter, it was freshman T.J. Yeldon slipping through Te'o's arms in the backfield on a third-down run and getting a first down.


Lacy set up Alabama's second touchdown with another 20-yard run, this time to the Irish 2. Instead of running into a Notre Dame goal-line defense that has become known for goal-line stands, McCarron faked a handoff and found tight end Michael Williams all alone for the score and a 14-0 lead.


Alabama made it 3 for 3 on the next drive when Yeldon scored from a yard out on the first play of the second quarter.


The Alabama fans seemed outnumbered at Sun Life Stadium by Fighting Irish followers, pumped to see their team try to win its first national title in 24 years. But the folks in Crimson and houndstooth were making all the noise as the Tide rolled.


Lacy landed one more blow with 31 seconds left in the half. McCarron dumped off to Lacy, who spun off two tacklers, and went 11 yards to make it 28-0.


The Southeastern Conference, winners of the last six BCS championships, was storming toward seven in a row. Those familiar "S-E-C!" chants started early in this one.


The Fighting Irish started the third quarter with a promising drive that ended with another Alabama highlight.


HaHa Clinton-Dix made a sensational diving interception, grabbing a tipped pass and tapping his toe inches from the sideline. Alabama turned the game's first turnover into another long scoring drive. McCarron capped this one with a 34-yard TD pass to freshman Amari Cooper, the longest TD pass the Irish have given up this season.


With the score 35-0 and some Fighting Irish fans in the stadium record crowd of 80,120, Notre Dame finally got on the board with 4:08 left in the third.


Everett Golson took an option keeper 2 yards for a touchdown to break a streak of 108 minutes, 7 seconds in which Alabama had not allowed a point in a BCS championship game, dating to the last 6 minutes of the fourth quarter of the 2009 title game against Texas at the Rose Bowl. Alabama had scored 69 straight points in that span.


Alabama had 529 yards. The Irish defense came in allowing 286 per game.


Golson, the redshirt freshman quarterback who coach Brian Kelly had nurtured through the season, was 21 for 36 for 270 yards.


___


Follow Ralph D. Russo at www.Twitter.com/ralphDrussoAP


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AAA Mich.: Gas prices down 9 cents from last week






DEARBORN, Mich. (AP) — AAA Michigan says gasoline prices have fallen roughly 9 cents during the past week to a statewide average of about $ 3.24 per gallon.


The auto club said Monday the average is about 28 cents per gallon less than last year at this time.






Of the Michigan cities it surveys, AAA Michigan said the cheapest price for self-serve unleaded fuel is in the Saginaw and Bay City areas, where it’s about $ 3.11 a gallon. The highest average is in the Ann Arbor area at about $ 3.29.


Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily.


Energy News Headlines – Yahoo! News





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Why Al Jazeera deal doesn't seem right






STORY HIGHLIGHTS


  • Al Gore sold Current to al Jazeera and could net an estimated $70 million

  • Howard Kurtz: Gore's Current network failed to gain an identity or viewers

  • He says it's odd that the former vice president is selling to an oil-rich potentate

  • Kurtz: Al Jazeera may have a tough time getting traction with U.S. viewers




Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.


(CNN) -- So Al Gore starts a liberal cable network, which turns into a complete and utter flop, then sells it to a Middle East potentate in a deal that will bring him an estimated $70 million.


Is America a great country or what?


There is something highly unusual -- OK, just plain weird -- about a former vice president of the United States doing this deal with the emir of Qatar, Sheikh Hamad bin Khalifa al-Thani.



Howard Kurtz

Howard Kurtz



Al Jazeera, owned by said emir's government, is trying to buy its way into the American television market by purchasing Current TV for a half billion dollars. The only thing stranger would be if Gore had sold Current to Glenn Beck -- oh wait, Beck did try to buy it and was told no way within 15 minutes.


So the sale was in part about ideology, which opens the door to examining why Gore believes Al Jazeera gives "voice to those who are not typically heard" and speaks "truth to power."


Bill O'Reilly, on Fox News, calls the network "anti-American." Fox pundit Dick Morris says Gore has sold to a fount of "anti-Israel propaganda." Such labels are rooted in the network's role during the height of the war on terror, when it aired smuggled videos of Osama bin Laden and was denounced by Bush administration officials.


Watch: How Lance Armstrong lied to me about doping



But Al Jazeera English, the spinoff channel launched in 2006, doesn't have the same reputation. In fact, no less a figure than Secretary of State Hillary Clinton has praised it as "real news," and the channel has won journalism awards for its reporting on the Arab Spring and other global events.


To be sure, the main Al Jazeera network gives a platform to such figures as Yusuf al-Qaradawi. He's the Muslim cleric in Egypt who, The Washington Post gas reported, frequently appears on air to castigate Jews and America and has praised suicide bombings. But when I went to the home page of Al Jazeera English the other day, there was video of David Frost, the acclaimed British journalist who now works for the main network, interviewing Israeli President Shimon Peres.




That's not to say Al Jazeera America, the working name for the new channel, won't have its own biases. Al Jazeera English is sometimes determined to paint the U.S. in a negative light.


During a report on President Barack Obama signing a renewal of the Foreign Intelligence Surveillance Act, which entails a legitimate controversy over civil liberties, the reporter said flatly that the law "violate(s) U.S. constitutional rights in the name of national security."


Watch: Can Al Jazeera make it in the American market?


Dave Marash, the ABC News veteran who once worked for Al Jazeera English, told me the network has a "post-colonial" view of America and its stories can be infused with that attitude.


And there are real questions about how independent these channels are from the Qatar government that helps bankroll them. The director-general of Al Jazeera, Sheikh Ahmed bin Jassim al-Thani, is a member of the country's royal family and has no background in journalism.


Such details add to the odd spectacle of the ex-veep, who would have been running Mideast policy had he won a few more votes in Florida, selling -- and some say selling out -- to the emir. Not to mention that the crusader against climate change is taking petrodollars from an empire built on oil, the bete noire of environmentalists.


Watch: Hey Fox, Hillary Clinton was sick after all


But what is Al Jazeera buying? The network is going to have a tough time cracking the American market.


Its earlier reputation makes the company highly controversial, and other cable carriers might follow the lead of Time Warner Cable (which is no longer owned by CNN's parent company, Time Warner) in refusing to carry it. These carriers agreed to air Current TV, after all, and contracts generally require them to approve a major change in programming.


Global politics aside, it may just be bad business. There's a reason Al Jazeera English, which will supply 40% of the content to the new channel, has barely gotten a foothold in the United States. Most Americans aren't lusting for a steady diet of international news.


Watch: Did Nancy Pelosi go too far in photoshopping picture of congresswomen?


There's no denying that Gore, a onetime newspaper reporter who had testy relations with the press during his 2000 campaign, presided over a lousy cable channel. No one quite knew what Current was during the years when it aired mostly low-rent entertainment fare and was famous mainly for North Korea taking two of its correspondents, including Lisa Ling's sister Laura, into custody.


Then Gore tried to relaunch it as a talking head channel to the left of MSNBC, hiring Keith Olbermann -- a relationship that ended with his firing and mutual lawsuits -- along with the likes of Eliot Spitzer and Jennifer Granholm, former Michigan governor. Gore himself offered commentary during major political events.


It was the utter failure of that incarnation of Current that prompted Gore and co-founder Joel Hyatt to put the thing up for sale.


Some detractors have slammed Gore for hypocrisy because, while he has advocated higher taxes on the rich, he tried to get the Al Jazeera deal done by December 31 to avoid the Obama tax hike. (The sale didn't close until January 2.) I don't see a problem trying to legally take advantage of changes in the tax code, no matter what your political stance.


Nor do I want to prejudge Al Jazeera America. The marketplace will decide its fate.


But there is something unsettling about Gore making off with such a big payday from a government-subsidized channel after making such bad television. Nice work if you can get it.


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The opinions expressed in this commentary are solely those of Howard Kurtz.






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Magical run for Irish ends in rout









MIAMI GARDENS, Fla. — On a flawless South Florida night, Notre Dame players saw a legend emerge in present time. To their bone-deep disbelief, it was not them.


The eruption of confetti and joy surrounded them, and their shock and desolation filled the spaces in between. A program lost for a quarter-century might not be directionless, but the top looked far away from here.


A moment the Irish believed they were meant to have, a perfect season driven toward this, ended in a quiet walk out of sight and into another year of what might be. Alabama is the national champion, again, the SEC's marauding run extended to a seventh straight year with a 42-14 humiliation of Notre Dame on Monday, the Irish's first loss also their most excruciating.





Twenty-four years since that last title in 1988, and 24 years spent wandering through losses and death and empty promise. The light at the end of it all was that crystal football hoisted skyward. It remained far, far beyond their grasp at Sun Life Stadium and claimed by a different reborn college football dynasty.


It was an oppressive deluge of unprepared and nerve-racked play from the start, the most yards surrendered by Notre Dame (13-1) all year and the most points surrendered by Notre Dame in a bowl game ever. Eddie Lacy rampaged for 140 yards, AJ McCarron threw for 264 and four touchdowns and Alabama (13-1) did, basically, whatever it wanted.


Alabama players called a meeting shortly after their arrival in Florida, and some mused that it reflected a fracture in the focus of the defending champs. But the stoicism the Crimson Tide demonstrated all week turned out to be determination to kick the ever-loving tar out of the Irish on Monday.


It required Alabama only five plays to find the end zone. Lacy was the sledgehammer — and the Irish helped by leaning into the swing with two penalties — and it was 7-0 after the longest touchdown drive and the first first-quarter touchdown allowed by Notre Dame all season.


The Irish's answer was a three-and-out. Then it was more Lacy and more evisceration, with the junior's 20-yard run setting up a 3-yard McCarron touchdown pass to tight end Michael Williams to make it 14-0. Then another punt, then more curb-stomping, this time 25-yard and 28-yard McCarron completions setting up a T.J. Yeldon touchdown run.


One play into the second quarter, Alabama had evacuated nearly all hope from the building for Notre Dame. It was a 21-0 lead, arrived at brutally, with special indifference to destiny and fortune. Alabama was destroying everything Notre Dame built over a brilliant season, stomping validation into a million little pieces.


Just before halftime, McCarron clinically moved Alabama down the field, lofting a 27-yard pass to Christion Jones and then dumping one off to Lacy, who spun and spun and rumbled into the end zone for a 28-0 lead. The resilient Irish had no answers, the stout defense had no chance.


There was a flicker of promise to begin the second half, and Alabama safety HaHa Clinton-Dix snuffed it out with an acrobatic interception. From there, a bad night for the Irish defense got worse. Alabama started a 92-yard march that ended with McCarron hitting a completely uncovered Amari Cooper for 34 yards and a 35-0 lead.


Notre Dame finally responded with an 85-yard drive to an Everett Golson 2-yard option keeper for a touchdown to make it 35-7, ending the Tide's 108-minute shutout streak in BCS championship appearances. When McCarron answered with another scoring toss to Cooper, all that was left was getting out alive and figuring where to go from here.


After that last title in 1988, won by another unlikely champion in the third year of an energizing coach's tenure, the pall descended. After Lou Holtz, it was Bob Davie and George O'Leary's resume and Tyrone Willingham and Charlie Weis' decided schematic advantage, and it was nothing but false positives and failed plans.


Then Brian Kelly arrived in the winter of 2009. If the cloud lifted, it was still hazy at times. There was Matt James and Declan Sullivan and Lizzy Seeberg and sideline tirades and temporary fractures in the locker room amid two passable eight-win seasons. There was no definable reason to expect a title run to happen this year, and then it did.


It seemed, regardless of the outcome Monday, Notre Dame might be a fully functional college football leviathan humming along. Then came the mighty Tide and a dent in the validation. The Irish making it this far proves a great deal. The Irish absorbing such a bracing setback means they must prove much more.


So off they went, dazed and empty-handed. All around them the new college football dynasty celebrated. All around them, Notre Dame saw what it desperately wanted to become.


Off they went, into the tunnels, a brilliant season ending well short of legend. And the Irish would do what everyone before them had done for a quarter-century, and wake up in the morning just waiting to get back.


bchamilton@tribune.com


Twitter @ChiTribHamilton





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Ex-governor in North Korea with Google chief; seeks American's release


SEOUL (Reuters) - Former New Mexico Governor Bill Richardson and Google Executive Chairman Eric Schmidt began a controversial private mission to North Korea on Monday that will include an effort to secure the release of an imprisoned American.


The trip comes after North Korea carried out a long-range rocket test last month and as, according to satellite imagery, the reclusive state continues work on its nuclear testing facilities, potentially paving the way for a third nuclear bomb test.


Footage from North Korean state television showed Richardson and Schmidt at the Pyongyang airport on Monday evening.


"We are going to ask about the American who's been detained. A humanitarian private visit." Richardson said.


Richardson's efforts to seek the release of Kenneth Bae, a Korean-American tour guide who was detained last year will mark the latest in a series of high-profile visits over the years to free Americans detained by Pyongyang.


The delegation comprised Schmidt, his daughter, Richardson and Google executive Jared Cohen, according to South Korean news media and it arrived in Pyongyang on a flight from the Chinese capital, Beijing.


The mission has been criticized by the United States due to the sensitivity of the timing. The United States does not have diplomatic relations with North Korea and the isolated and impoverished state remains technically at war with U.S. ally South Korea.


"We continue to think the trip is ill-advised," U.S. State Department spokeswoman Victoria Nuland said in Washington. Last week she said the main U.S. objection was that the trip came so soon after North Korea's much-criticized December 12 rocket launch.


South Korea is in the midst of a transition to a new president who will take office in February, while Japan, another major U.S. ally in the region, has a new prime minister.


A U.S. official said the trip's timing was particularly bad from the Obama administration's point of view because it comes as the U.N. Security Council ponders how to respond to the North Korean missile launch.


"We are in kind of a classical provocation period with North Korea. Usually, their missile launches are followed by nuclear tests," said the official, who spoke on condition of anonymity.


"During these periods, it's very important that the international community come together, certainly at the level of the U.N. Security Council, to demonstrate to North Korea that they pay a price for not living up to their obligations."


Richardson, a former ambassador to the United Nations, has made numerous trips to North Korea in the past that have included efforts to free detained Americans. The reasons for Schmidt's involvement in the trip are not clear, though Google characterized it as "personal" travel.


Schmidt did not respond to requests for comment.


Richardson told CBS television last Friday that he had been contacted by Bae's family and that he would raise the issue while in North Korea.


Pyongyang's most notable success was securing a visit from former President Bill Clinton in 2009 to win the release of two American journalists.


Last year, Jared and Schmidt met defectors from North Korea, a state that ranks bottom in an annual survey of Internet and press freedom by Reporters Without Borders.


Media reports and think tanks say that officials from the North Korean government went to Google's headquarters in 2011, something the U.S. technology giant declined to comment on.


(Additional reporting by Cho Meeyoung and WASHINGTON Bureau; Editing by Michael Perry, Ron Popeski and David Brunnstrom)



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RG3 hurt, Seattle tops Redskins 24-14 in playoffs


LANDOVER, Md. (AP) — Russell Wilson raced ahead to throw the final block on Marshawn Lynch's fourth-quarter, go-ahead touchdown run, doing just enough to get in the way of the Washington Redskins safety near the goal line.


Less than a minute later, Robert Griffin III's knee buckled as he tried to field a bad shotgun snap, the pain so bad that he didn't even try to recover the ball.


The last rookie quarterback standing in the NFL playoffs is Wilson — the third-round pick who teamed with Lynch on Sunday to lead the Seattle Seahawks to a 24-14 victory over Griffin and the Redskins.


"Marshawn always tells me, 'Russ, I got your back, no matter what,'" Wilson said. "So I just try to help him out every once in a while."


And the latest debate over the wisdom of keeping an injured franchise player on the field — when he's obviously nowhere near his best — starts with coach Mike Shanahan, who let Griffin keep going until the QB could absolutely go no more.


"I think I did put myself at more risk," Griffin said. "But every time you get on the field, you're putting yourself on the line."


Lynch ran for 132 yards, and Wilson completed 15 of 26 passes for 187 yards and ran eight times for 67 yards as Seahawks overcame a 14-0 first-quarter hole — their biggest deficit of the season — and will visit the top-seeded Atlanta Falcons next Sunday.


Meanwhile, Griffin was headed for an MRI exam to determine the extent of the damage on his re-injured right knee. He was already playing with a big black brace, having sprained the lateral collateral ligament about a month ago against the Baltimore Ravens. He hadn't looked his usual self in the two games he had played since, and he was obviously hobbled after falling awkwardly while throwing an incomplete pass in the first quarter Sunday.


In the fourth quarter, Griffin labored on a 9-yard run that made him look 32 years old instead of 22.


"He said, 'Hey, trust me. I want to be in there, and I deserve to be in there,'" Shanahan said. "I couldn't disagree with him."


Shanahan said he'll probably second-guess himself over his decision. He has the entire offseason to do so. And, whatever the injury, Griffin at least has time to recover.


Wilson, on the other hand, will carry on. The day began with three rookie quarterbacks in the playoffs, but No. 1 overall pick Andrew Luck was eliminated when Indianapolis lost to Baltimore.


Seattle is riding a six-game winning streak, having left behind any doubts that the team can hold its own outside the Pacific Northwest. The Seahawks were 3-5 on the road in the regular season and had lost eight straight road playoff games, the last win coming in 1983 against the Miami Dolphins.


"It was only two touchdowns, but it's still a big comeback and, in this setting and the crowd, it's a marvelous statement about the guys' resolve and what is going on," Seattle coach Pete Carroll said. "It's not about how you start but how you finish."


Seattle's defense shut down the Redskins after a rough start. Washington had 129 yards in the first quarter and 74 for the rest of the game. Griffin was 6 for 9 for 68 yards and two touchdowns after 15 minutes; he was 4 for 10 for 16 yards with one interception the rest of the way.


"It was hard to watch RG3 tonight," Carroll said. "It was hard on him. He was freaking gallant."


The numbers were reversed for the Seahawks, who rediscovered Lynch in the second quarter and put together three consecutive scoring drives to pull within a point, 14-13, at halftime.


Steven Hauschka, who injured his left calf during the first half and had to relinquish kickoff duties, nevertheless sandwiched field goals of 32 and 29 yards around a 4-yard touchdown pass from Wilson to Michael Robinson. Wilson fumbled on the TD drive, but the ball was fortuitously scooped up by Lynch, who ran for a 19-yard gain.


The Seahawks controlled the second half, but then it was Lynch's turn to fumble — at Washington's 1-yard line. The Redskins recovered this one, and the Seahawks had another drive get to Washington's 28 before a sack forced a punt — rather than a long field goal attempt by an injured kicker.


But the Seahawks kept coming. Wilson led the way for two big change-of-direction runs by Lynch in the game, the second one a 27-yard scoring run with 7:08 remaining.


A 2-point conversion gave the Seahawks a 21-14 lead, and then came the moment that essentially put the outcome to rest.


On the second play of the Redskins' next possession, Griffin's knee bent the wrong way on a second-and-22 at the Washington 12. He lay on the ground as the Seahawks pounced on the ball.


Griffin walked off the field under his own power, but he was done for the night. By the end of the game, he was sitting alone on the white sideline bench, his brace discarded on a bench next to him.


With good field position, the Seahawks kicked a short field goal to give them the insurance they needed. Fellow rookie Kirk Cousins, subbing for Griffin, was unable to rally the Redskins in the final minutes.


"Despite the fact that we have a 'nobody' team," Seattle cornerback Richard Sherman said, "a team not full of first-rounders and things like that, we have a lot of guys that play at a high level."


NOTES: DE Chris Clemons, Seattle's best pass rusher, hurt his left knee in the third quarter and did not return. He will undergo an MRI. "We're concerned about it," Carroll said. ... Redskins LG Kory Lichtensteiger re-injured his sprained left ankle in the first quarter. ... The playoff meeting between the two teams was the third, but first outside Seattle. The Seahawks won 20-10 in January 2006, and 35-14 in January 2008. Those were the last two postseason games played by the Redskins. ... Redskins LT Trent Williams shoved Sherman in the face as the teams met on the field after the final whistle. "It was a dirty move by Trent Williams," Sherman said. "I can understand why he's frustrated; it's the end of their season." Williams took responsibility and said he acted in an "immature manner." Later, Sherman tweeted that he received "a very classy text" message from Williams and there's "no ill will either way."


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Follow Joseph White on Twitter: http://twitter.com/JGWhiteAP


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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Asian shares drift, Basel ruling supports banks

SINGAPORE (Reuters) - Asian stocks drifted on Monday as investors booked profits from a New Year rally that had pushed markets to multi-month highs, but financial stocks gained after global regulators decided to relax draft plans for tough new bank liquidity rules.


Commodity prices mostly held firm, supported by data showing the U.S. economy continuing on a path of slow but steady recovery that propelled Wall Street stocks to a five-year high.


The dollar sat close to a two-and-a-half-year high against the yen as investors adjusted to the possibility of more monetary stimulus in 2013 from the Bank of Japan and less from the U.S. Federal Reserve.


MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus>, which had reached its highest level since August 2011 on Thursday, was flat, while Tokyo's Nikkei share average <.n225> retreated after touching a 23-month high in early trade to stand down 0.2 percent. <.t/>


"Investors have been carefully waiting for the timing to take profits as they believed the market can't keep rising," said Yutaka Miura, a senior technical analyst at Mizuho Securities.


CASH BUFFERS


The MSCI benchmark's financial sector sub-index <.miapjfn00pus> gained 0.5 percent after the Basel Committee of banking supervisors agreed on Sunday to give banks four more years and greater flexibility to build up cash buffers so they can use some of their reserves to help struggling economies.


HSBC Holdings Hong Kong shares rose 1.3 percent, while Australia and New Zealand Banking Corp gained 0.6 percent. <.hk><.ax/>


Shares in Japanese exporters were supported by a weaker yen, which traded around 88.05 to the dollar, a little firmer on the day, after the U.S. currency rose as far as 88.40 yen, its highest in nearly two-and-a-half years, on Friday.


The dollar posted a gain of around 2.7 percent against the yen last week, its biggest weekly rise in more than a year. Its gains had accelerated after minutes from the Federal Reserve's December meeting showed some policymakers has mulled ending the Fed's bond-buying program as early as this year.


By contrast, many investors are now betting that Japan's new government, led by Prime Minister Shinzo Abe, will push to weaken the yen and drive through aggressive fiscal stimulus, and pressure the Bank of Japan to do the same on the monetary side.


The dollar ticked up slightly against the euro, which traded around $1.3060.


The U.S. benchmark S&P 500 index <.spx> closed at its highest level since December 2007 on Friday after data showed a steady pace of jobs growth and brisk expansion of the services sector in the world's biggest economy.


That offered support to growth-sensitive commodities, with copper edging up 0.2 percent to around $8,100 a tonne, while Brent crude oil gained 0.2 percent to around $111.50 a barrel and U.S. crude stood flat just above $93.


(Editing by Eric Meijer)



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