News Analysis: Still Bitter About Election, Republican Opposition Unwilling to Compromise with President





WASHINGTON — If Friday’s memorial service for one of this country’s long-serving senators was a somber recollection of a bipartisan era that once was, the rest of the day was a frenetic reminder of the political gridlock that now grips the capital.




At the National Cathedral, the nation’s political leaders eulogized Senator Daniel K. Inouye of Hawaii, who died this week at 88 after more than 50 years in Congress. President Obama said he learned from Mr. Inouye “how our democracy is supposed to work.”


Across town, democracy was, at best, showing its gritty side as it ground along angrily, noisily and slowly: A weary Speaker John A. Boehner admitted failure in his efforts to avert a fiscal crisis with a bill to increase taxes on millionaires but asserted that his job was not at risk; a top National Rifle Association official bluntly challenged Congress to embrace guns at schools, not control them; and Mr. Obama bowed to the reality that Republicans had blocked his first choice to be the next secretary of state.


Though it has been 45 days since voters emphatically reaffirmed their faith in Mr. Obama, the time since then has shown the president’s power to be severely constrained by a Republican opposition that is bitter about its losses, unmoved by Mr. Obama’s victory and unwilling to compromise on social policy, economics or foreign affairs.


“The stars are all aligning the wrong way in terms of working together,” said Peter Wehner, a former top White House aide to President George W. Bush. “Right now, the political system is not up to the moment and the challenges that we face.”


House Republicans argue that voters handed their members a mandate as well, granting the party control of the House for another two years and with it the right to stick to their own views, even when they clash strongly with the president’s.


And many Republicans remember well when the tables were turned. After Mr. Bush’s re-election in 2004, Democrats eagerly thwarted his push for privatization of Social Security, hobbling Mr. Bush’s domestic agenda in the first year of his second term.


New polls suggest that Mr. Obama’s popularity has surged to its highest point since he announced the killing of Osama bin Laden. In the latest CBS News survey, the president’s job approval rating was at 57 percent.


But taken together, events suggest that even that improvement in the polls has done little to deliver the president the kind of clear authority to enact his policies that voters seemed to say they wanted during the election.


Even some of the president’s closest advisers said they were surprised by the ferocity of the Republican opposition.


“It’s kind of a stunning thing to watch the way this has unfolded, at least to date,” said David Axelrod, one of Mr. Obama’s longtime advisers. “The question is, how do you break free from these strident voices?”


Friday’s wrangling crystalized the challenges that Mr. Obama faces as he prepares to begin a second term next month.


In Mr. Boehner, the president has a potential deal-making partner who is unable to rally House Republicans behind his own plans, much less any agreement he might cut with Mr. Obama. In a news conference on Friday morning, Mr. Boehner essentially admitted he was running out of ideas to avert big tax increases and spending cuts early next year.


“How we get there,” Mr. Boehner told reporters, “God only knows.”


Just minutes later, officials with the National Rifle Association made clear what House Republicans had been whispering all week: The president’s call for gun control in the wake of the Connecticut shooting is likely to run into tremendous opposition.


Wayne LaPierre, the executive vice president of the firearm group, made clear the N.R.A. would not support the president’s call for gun control, recommending instead a “school shield” program of armed security guards at the nation’s schools as well as a national database that could track the mentally ill.


At the same time, Mr. Obama officially named Senator John Kerry of Massachusetts as his choice to lead the State Department — a decision the president was forced to make after Republicans effectively blocked his preferred choice, Susan E. Rice, the ambassador to the United Nations.


Ms. Rice, a longtime confidante of Mr. Obama’s, was never formally nominated, but it was no secret inside the White House that the president would have liked her to succeed Hillary Rodham Clinton early next year. But even on the heels of his electoral victory, Mr. Obama was unable to overcome Republican opposition — led by Senator John McCain, the man he defeated for the presidency in 2008 — to her nomination.


There are still 10 days left in which Mr. Obama might reach some sort of arrangement with Congress on averting a fiscal crisis that some predict could plunge the nation back into recession.


In an evening news briefing, Mr. Obama proposed a scaled-back deal that might avert fiscal crisis while putting off the major philosophical arguments for another day. He said he hoped lawmakers could cool off, "drink some eggnog, have some Christmas cookies and sing some Christmas carols" before coming back to Washington.


"Now is not the time for more self-inflicted wounds," Mr. Obama pleaded as he left town for a Hawaii holiday vacation. "Certainly not those coming from Washington."


In another 31 days, Mr. Obama will deliver his second Inaugural Address, providing him the opportunity to make his case to the American public on the direction he wants to take them in a second term. A few weeks after that, he will give his State of the Union address, which he has already promised to use in part as a call for new gun control laws.


Tom Daschle, a former Democratic majority leader in the Senate, said he feared Washington would remain paralyzed on taxes and other issues until the country truly faces a crisis.


“I worry that it’s going to take that kind of a condition to bring people to the reality that they can’t mess around here anymore,” Mr. Daschle said.


On Friday, Mr. Obama was more hopeful.


“This is something within our capacity to solve,” he insisted, even as he left Washington without even the outlines of a deal in place.


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Ashton Kutcher files for divorce from Demi Moore


LOS ANGELES (AP) — Ashton Kutcher filed court papers Friday to end his seven-year marriage to actress Demi Moore.


The actor's divorce petition cites irreconcilable differences and does not list a date that the couple separated. Moore announced last year that she was ending her marriage to the actor 15 years her junior, but she never filed a petition.


Kutcher's filing does not indicate that the couple has a prenuptial agreement. The filing states Kutcher signed the document Friday, hours before it was filed in Los Angeles Superior Court.


Kutcher and Moore married in September 2005 and until recently kept their relationship very public, communicating with each other and fans on the social networking site Twitter. After their breakup, Moore changed her name on the site from (at)mrskutcher to (at)justdemi.


Kutcher currently stars on CBS' "Two and a Half Men."


Messages sent to Kutcher's and Moore's publicists were not immediately returned Friday.


Moore, 50, and Kutcher, 34, created the DNA Foundation, also known as the Demi and Ashton Foundation, in 2010 to combat the organized sexual exploitation of girls around the globe. They later lent their support to the United Nations' efforts to fight human trafficking, a scourge the international organization estimates affects about 2.5 million people worldwide.


Moore was previously married to actor Bruce Willis for 13 years. They had three daughters together — Rumer, Scout and Tallulah Belle — before divorcing in 2000. Willis later married model-actress Emma Heming in an intimate 2009 ceremony at his home in Parrot Cay in the Turks and Caicos Islands that attended by their children, as well as Moore and Kutcher.


Kutcher has been dating former "That '70s Show" co-star Mila Kunis.


The divorce filing was first reported Friday by People magazine.


___


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


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The Neediest Cases: The Daughter of a Sick Woman Falls Prey to a Craigslist Scam





Sitting side by side on their living room sofa, Patricia Morales and her daughter, Katherine, could be any mother-daughter duo. Both have dark hair, dark eyes and welcoming, infectious smiles.







Librado Romero/The New York Times

Patricia Morales, 62, at home in the Bronx. Her treatment for ailments like rheumatoid arthritis and hepatitis C led to depression.






2012-13 Campaign


Previously recorded:

$3,375,394



Recorded Wednesday:

182,251



*Total:

$3,557,645



Last year to date:

$3,320,812




*Includes $709,856 contributed to the Hurricane Sandy relief efforts.

The Neediest CasesFor the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.


Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.







The Youngest Donors


If your child or family is using creative techniques to raise money for this year’s campaign, we want to hear from you. Drop us a line on Facebook or talk to us on Twitter.





But the ties that bind them go beyond their genes, beyond the bodies they were born with.


“It’s called a neck ring. It’s a silver curved barbell, one inch,” Katherine, 20, said as she swept aside her shoulder-length black hair to show the piercing in the back of her neck, a show of solidarity with her mother. She had it done when she was 16. “I wanted to know what it felt like for my mom.”


Her mother then turned around and outlined with her finger two lengthy scars that run down her back.


“I’ve had a lot of physical problems,” Ms. Morales, 62, said. Shaking her head at her daughter’s piercing, she added, “I’ve had rods put in my upper and lower spine, but I could never do that.”


The rods were surgically planted to treat herniated discs, the result of having a cruel combination of osteoporosis, hepatitis C, fibromyalgia and rheumatoid arthritis. Ms. Morales contracted hepatitis C from a blood transfusion she received in 1972 after the birth of her only son, she said.


“I didn’t even know about it until 10 years ago,” she said. “My liver blood count was a little high.”


Since the diagnosis, Ms. Morales, a former schoolteacher, has ridden the arduous highs and lows common to patients with hepatitis C. Her treatments for the disease, which debilitates the liver over time, have included pills and injections that can cause depression. Ms. Morales, a single parent, found an unforgiving salve in alcohol.


“I was depressed; I was totally drunk,” she said. “I didn’t want to live anymore.”


Then, about a year ago, she reached a turning point when visiting her hepatitis C specialist.


“I was 210 pounds,” she said. “The doctor said: ‘You have to stop drinking. You have to lose weight.’ ”


To help combat the depression, her doctor referred her to Jewish Association Serving the Aging, a beneficiary agency of UJA-Federation of New York, one of the organizations supported by The New York Times Neediest Cases Fund. She began weekly counseling sessions with a social worker and started taking an antidepressant medication. The federation drew about $600 from the fund in May so that Ms. Morales could buy a mattress.


“I had a horrible bed,” she said. “I felt like I was sleeping on rocks, and with rods in my back, I was waking up every hour.”


After several months of therapy and starting a diet, Ms. Morales was on her way to losing 60 pounds. Today, she weighs 148.


Light was starting to show itself again when the family took an unexpected financial hit this summer. While taking time off from attending Hostos Community College, Katherine Morales looked for work on Craigslist.


“I saw my mom, and I realized I needed to get a job,” Katherine said shyly. “This guy asked me to be his personal assistant, and he asked me to wire money.”


Offering $400 a week, the man requested help transferring almost $2,000 from what he said was his wife’s account. He transferred the money to Katherine’s account, asking her to wire it to a bank account in Malaysia.


Shortly after she wired the money, the bank froze the account, which Katherine and her mother shared. It was then that Katherine realized she had been the victim of a scam. The money transferred into her account turned out to have been stolen, and she was responsible for repaying it.


Katherine went to detectives immediately with more than 20 pages of evidentiary e-mails, but found that she was unable to file a complaint.


“They told me it wasn’t enough,” she said. “These things happen all the time.”


They lost almost $2,000.


Ms. Morales lives on a fixed income. She receives just over $700 a month from Social Security and $200 month in food stamps. The rent for the apartment she shares with her daughter in the Throgs Neck neighborhood of the Bronx is $230, and Ms. Morales has a monthly combined phone and cable bill of $140. Ms. Morales has a son, but he is unable to help the family.


Falling behind on her bills, Ms. Morales turned once again to JASA for help paying a combined phone and cable bill of nearly $200, a grant the agency drew from the Neediest Cases Fund.


“It was terrible, because my intention was to help my mom,” said Katherine, who has since found a part-time job at a vitamin shop.


Ms. Morales has been feeling much better, but she is nervous about an appointment with her hepatitis C specialist in January.


“I’m taking things one day at a time, but I’m looking forward to someone taking care of me,” she said. “I want to live a little bit longer, but not that long.”


“Why are you putting a time limit on it?” Katherine said, jokingly. “Seventy’s the new 20!” she added, nudging her mother in the side. “Remember, the doctor said you wouldn’t live past your late 50s, but you did.”


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Instagram Reversal Doesn’t Appease Everyone


Peter DaSilva for The New York Times


Kevin Systrom, right, co-founder of Instagram, with employees in the company office in San Francisco last year.







SAN FRANCISCO — Facebook may have quelled a full-scale rebellion by quickly dumping the contentious new terms of use for Instagram, its photo-sharing service. But even as the social network furiously backpedaled, some users said Friday they were carrying through on plans to leave.








Eric Piermont/Agence France-Presse — Getty Images

Kevin Systrom, Instagram’s co-founder, said the company would complete its plans, then explain its ad policy.






Ryan Cox, a 29-year-old management consultant at ExactTarget, an Indianapolis-based interactive marketing software company, said he had already moved his photos to Flickr, Yahoo’s photo-sharing app, where he could have better control.


Mr. Cox said the uproar this week over whether Instagram owned its users’ photos was “a wake-up call.”


“It’s my fault,” he continued. “I’m smart enough to know what Instagram had and what they could do — especially the minute Facebook acquired them — but I was a victim of naïve optimism.”


“Naïve optimism” is as good a term as any for the emotion that people feel as they put their private lives onto social networks.


Companies like Google, Twitter, Yelp and Facebook offer themselves as free services for users to store and share their most intimate pictures, secrets, messages and memories. But to flourish over the long term, they need to seek new ways to market the personal data they accumulate. They must constantly push the envelope, hoping users either do not notice or do not care.


So they sell ads against the content of an e-mail, as Google does, or transform a user’s likes into commercial endorsements, as Facebook does, or sell photographs of your adorable 3-year-old, which is what Instagram was accused of planning this week.


“The reality is that companies have always had to make money,” said Miriam H. Wugmeister, chair of Morrison Foerster’s privacy and data security group.


Even as Instagram was pulling back on its changed terms of service on Thursday night, it made clear it was only regrouping. After all, Facebook, as a publicly held corporation, must answer to Wall Street’s quarterly expectations.


“We are going to take the time to complete our plans, and then come back to our users and explain how we would like for our advertising business to work,” Kevin Systrom, Instagram’s youthful co-founder, wrote on the company’s blog.


Instagram’s actions angered many users who were already incensed over the company’s decision earlier this month to cut off its integration with Twitter, a Facebook rival, making it harder for its users to share their Instagram photos on Twitter.


Users were apprehensive that the new terms of service meant that data on their favorite things would be shared with Facebook and its advertisers. Users also worried that their photos would become advertising.


Instagram is barely two years old but has 100 million users. Last spring, Facebook announced plans to buy it in a deal that was initially valued at $1 billion. The deal was closed in September for a somewhat smaller amount.


For some users, Mr. Systrom’s apology and declaration that “Instagram has no intention of selling your photos, and we never did” was sufficient.


National Geographic, which suspended its account in the middle of the uproar, held a conference call with members of Facebook’s legal and policy teams. Afterward, the magazine, which has 658,000 Instagram followers, said it would resurrect its account.


Also mollified was Noah Kalina, who took wedding photographs earlier this year for Mark Zuckerberg, the founder of Facebook. In a widely circulated post on Twitter, Mr. Kalina said the new terms of service were “a contract no professional or nonprofessional should ever sign.” His advice: “Walk away.”


On Friday, the photographer said he had walked back. “It’s nice to know they listened.”


Kim Kardashian, the most followed person on Instagram, said on Tuesday that she “really loved” the service — note the past tense — and that the new rules were not “fair.” She had yet to update her 17 million Twitter followers on Friday, but since she is pushing her True Reflection fragrance it is a safe bet that she has forgiven and forgotten.


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Next Move Is Obama’s After Boehner’s Tax Plan Fails


Brendan Hoffman for The New York Times


Speaker John A. Boehner of Ohio leaving a meeting Thursday with fellow House Republicans on talks over the “fiscal cliff.”







WASHINGTON — With House Republicans’ revolt over their leader’s tax plan the evening before, President Obama on Friday faced the challenge of finding a new tax-and-spending solution — perhaps working now with Senate Republicans — to prevent a looming fiscal crisis in January.










Brendan Hoffman for The New York Times

Early in a disappointing day, Speaker John A. Boehner was flanked by senior Democrats.






Yet as the day dawned, officials at the White House remained as incredulous and bewildered as the rest of Washington after Speaker John A. Boehner, short of votes from his Republican majority, was forced to cancel Thursday’s vote on what he called his “Plan B.” It would have extended the soon-to-expire Bush-era tax cuts for all income up to $1 million to avert a tax increase for more than 99 percent of Americans but also, to the anger of the anti-tax conservative mutineers, would have raised the top tax rate for higher income to the level of the Clinton years.


Now Mr. Obama is looking for his own Plan B, just four days before Christmas and 10 days before a deadline for a deal to avoid the tax increases and deep, across-the-board cuts in military and domestic programs scheduled after Dec. 31.


Officials in the administration and Congress, and in both parties, suggested the likeliest route was for Mr. Obama to seek a bipartisan accord with Senator Harry Reid, the Nevada Democrat who is the Senate majority leader, and Senator Mitch McConnell of Kentucky, the Senate Republican minority leader, and hope that it could get through the House under deadline pressure. Last year, when the president and Mr. Boehner were at an impasse over getting Congress to approve the essential increase in the nation’s borrowing limit, it was the wily Mr. McConnell who first suggested the legislative way out of the mess. But Mr. McConnell faces re-election in 2014 and will be very reluctant to engage in any deal-making that could draw him a primary challenge in his conservative state.


Mr. McConnell has given no indication of his next move, but a spokesman, Don Stewart, offered no hint on Friday morning of an immediate helping hand. “I sure hope they have a plan of their own,” said Mr. Stewart, referring to Democrats Mr. Obama, Mr. Reid and the House minority leader, Representative Nancy Pelosi.


A number of Senate Republicans, unlike most party colleagues in the House, say they could support a deficit-reduction plan raising tax rates on high incomes, if Democrats agree to significant reductions in the growth of Medicare and Social Security. But both Republicans and Democrats are being assailed by party allies – groups on the right against any tax increases and on the left against cuts in entitlement-program spending.


If Mr. Obama were to reach some agreement that passes in the Senate, it still must get through the House. That, people in both parties say, could confront Mr. Boehner – who controls the Republican Party’s one lever of power -- with a decision about whether to allow a vote on a measure that presumably could not pass with Republican votes, but would have to be carried over the line with Democrats’ votes.


That prospect in turn gives rise to the question of whether Mr. Boehner can survive the House vote for speaker on Jan. 3, when the new Congress will include fewer Republicans given party losses last November.


Adam Jentleson, spokesman for the Senate Democratic leader, Mr. Reid, said in a statement, “It is now clear that to protect the middle class from the fiscal cliff, Speaker Boehner must allow a bill to pass with a combination of Democratic and Republican votes.”


The House, at Mr. Boehner’s direction, closed down until after Christmas and members dispersed. The president, who once had planned to leave on Friday with his family for its traditional Christmas vacation in Hawaii, would stay at the White House pending “the next moves,” said a senior administration official, who, like most others interviewed, would not be identified given the uncertainty about the next step. “If there is action this weekend, he will be here.”


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Country singer Tate Stevens wins Fox's 'X Factor'


NEW YORK (AP) — Tate Stevens, who was mentored by music exec L.A. Reid on the second season of "The X Factor," has won the Fox singing competition.


The 37-year-old country singer from Belton, Mo., beat runner-up Carly Rose Sonenclar, a 13-year-old schoolgirl from Westchester, N.Y., and teenage girl group Fifth Harmony on the finale that aired live Thursday night.


Stevens wins a $5 million recording contract.


More than 35 million votes were cast by viewers after Wednesday's performance show.


Besides Reid, judges this season included Demi Lovato, Britney Spears and series creator Simon Cowell.


Thursday's show was also the grand finale for Reid. Earlier this month, he said he wouldn't be returning to "The X Factor" next year. No replacement has been announced.


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About New York: One Boy’s Death Moves State to Action to Prevent Others





Prompted by the death of a 12-year-old Queens boy in April, New York health officials are poised to make their state the first in the nation to require that hospitals aggressively look for sepsis in patients so treatment can begin sooner. Under the regulations, which are now being drafted, the hospitals will also have to publicly report the results of their efforts.




The action by New York has elated sepsis researchers and experts, including members of a national panel who this month formally recommended that the federal government adopt standards similar to what the state is planning.


Though little known, sepsis, an abnormal and self-destructive immune response to infection or illness, is a leading cause of death in hospitals. It often progresses to severely low blood pressure, shock and organ failure.


Over the last decade, a global consortium of doctors, researchers, hospitals and advocates has developed guidelines on early identification and treatment of sepsis that it says have led to significant drops in mortality rates. But first hints of the problem, like a high pulse rate and fever, often are hard for clinicians to tell apart from routine miseries that go along with the flu or cold.


“First and foremost, they need to suspect sepsis,” Dr. Mitchell M. Levy, a professor at Brown University School of Medicine and a lead author of a paper on the latest sepsis treatment guidelines to be published simultaneously next month in the United States in a journal, Critical Care Medicine, and in Europe in Intensive Care Medicine.


“It’s the most common killer in intensive care units,” Dr. Levy said. “It kills more people than breast cancer, lung cancer and stroke combined.”


If started early enough, the treatment, which includes antibiotics and fluids, can help people escape from the drastic vortex of sepsis, according to findings by researchers working with the Surviving Sepsis Campaign, the global consortium. The tactics led to a reduction of “relative risk mortality by 40 percent,” Dr. Levy said.


Although studies of 30,000 patients show that the guidelines save lives, “the problem is that many hospitals are not adhering to them,” said Dr. Clifford S. Deutschman, director of the sepsis research program at the Perelman School of Medicine at the University of Pennsylvania and the president of the Society of Critical Care Medicine.


About 300 hospitals participate in the study, and the consortium has a goal of having 10,000. “The case is irrefutable: if you take these sepsis measures, and you build a program to help clinicians and hospitals suspect sepsis and identify it early, that will mean more people will survive,” Dr. Levy said.


At a symposium in October, the New York health commissioner, Dr. Nirav R. Shah, said that he would require state hospitals to adopt best practices for early identification and treatment of sepsis. Gov. Andrew M. Cuomo intends to make it a major initiative in 2013, said Josh Vlasto, a spokesman for the governor. “The state is taking unprecedented measures to prevent and effectively treat sepsis in health care facilities across the state and is looking at a wide range of additional measures to better protect patients,” Mr. Vlasto said.


In April, Rory Staunton, a sixth grader from Queens, died of severe septic shock after he became infected, apparently through a cut he suffered while playing basketball. The severity of his illness was not recognized when he was treated in the emergency room at NYU Langone Medical Center. He was sent home with a diagnosis of an ordinary bellyache. Hours later, alarming laboratory results became available that suggested he was critically ill, but neither he nor his family was contacted. For an About New York column in The New York Times, Rory’s parents, Ciaran and Orlaith Staunton, publicly discussed their son’s final days. Their revelations prompted doctors and hospitals across the country to seek new approaches to heading off medical errors.


In addition, Commissioner Shah in New York convened a symposium on sepsis, which included presentations from medical experts and Rory’s parents.


At the end of the meeting, Dr. Shah said that he had listened to all the statistics on the prevalence of the illness, and that one had stuck in his memory: “Twenty-five percent,” he said — the portion of the Staunton family lost to sepsis.


He said he would issue new regulations requiring hospitals to use best practices in identifying and treating sepsis, actions that, he said, he was taking “in honor of Rory Staunton.”


The governor’s spokesman, Mr. Vlasto, said that “the Staunton family’s advocacy has been essential to creating a strong public will for action.”


Dr. Levy said New York’s actions were “bold, pioneering and grounded in good scientific evidence,” adding, “The commissioner has taken the first step even before the federal government.”


Dr. Deutschman said that initiatives like those in New York were needed to overcome resistance among doctors. “You’re talking about a profession that has always prided itself on its autonomy,” he said. “They don’t like to be told that they’re wrong about something.”


The availability of proven therapies should move treatment of sepsis into a new era, experts say, comparing it to how heart attacks were handled not long ago. People arriving in emergency rooms with chest pains were basically put to bed because not much could be done for them, said Dr. Kevin J. Tracey, the president of the Feinstein Institute for Medical Research at North Shore-Long Island Jewish Health System. Dr. Tracey, a neurosurgeon, has made major discoveries about the relationship between the nervous system and the runaway immune responses of sepsis.


If physicians and nurses were trained to watch for sepsis, as they now routinely do for heart attacks, many of its most dire problems could be headed off before they got out of control, he said. The Stauntons have awakened doctors and nurses to the possibility of danger camouflaged as a stomach bug.


“We are with sepsis where we were with heart attack in the early 1980s,” Dr. Tracey said.


“If you don’t think of it as a possibility, this story can happen again and again. This case could change the world.”


E-mail: dwyer@nytimes.com


Twitter: @jimdwyernyt



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DealBook: Peter Madoff Is Sentenced to 10 Years for His Role in Fraud

8:48 p.m. | Updated

Peter B. Madoff was sentenced on Thursday to 10 years in prison for crimes that helped his brother, Bernard L. Madoff, swindle investors out of billions of dollars in a Ponzi scheme that collapsed four years ago this month.

A lawyer by training, Peter Madoff is the second figure in the scandal to be sentenced. His older brother, Bernard, pleaded guilty in March 2009 and is serving a prison term of 150 years.

Mr. Madoff, in a slate blue suit and striped blue tie, entered the crowded courtroom accompanied only by his lawyers, although many members of his family and friends had written letters of support for him. The 63 character references stood in stark contrast to his brother’s sentencing, when the judge in that case noted that he had not received a single supportive letter.

Still, a handful of victims attended the hearing, including two who spoke emotionally about the financial and psychological hardships they are enduring and urged the judge to impose a life sentence.

In his own brief statement to the judge, Peter Madoff said he was “deeply ashamed” of his conduct and had “tried to atone by pleading guilty.” He added: “I am profoundly sorry that my failures have let so many people down, including my own loved ones and family.”

In June, Peter Madoff, 67, admitted to a range of crimes, including falsifying documents, lying to securities regulators and filing sham tax returns. Prosecutors said that if Peter Madoff had properly done his job as chief compliance officer at Bernard L. Madoff Investment Securities, regulators would likely have detected the fraud years earlier.

Peter Madoff was not charged with knowing about the Ponzi scheme, and insists that he first learned about it only 36 hours before his brother’s arrest.

During the sentencing in Federal District Court in Manhattan, Judge Laura Taylor Swain expressed skepticism about that assertion.

“Peter Madoff’s contention that he did not know that anything was wrong with the investment advisory business is beneath the dignity” of a sophisticated Wall Street executive, Judge Swain said.

“It is also, frankly, not believable,” she added.

Peter Madoff’s lawyer, John R. Wing, has portrayed his client as a loving, charitable family man who was bullied, betrayed and destroyed by the imperious older brother he had idolized all his life. Bernard Madoff was widely viewed as an honorable and successful trader, Mr. Wing wrote in a letter to the court, “and no one believed it more than Peter did. Peter revered him and trusted him implicitly.”

In the geography of the Madoff offices, the money management business run by Bernard Madoff operated from a separate suite two floors below Peter Madoff’s office and the firm’s trading operations. With separate key cards, Bernard Madoff kept the suite off limits, shutting his brother and sons out of the investment advisory business.

In pleading guilty, Peter Madoff has agreed to a 10-year sentence and a forfeiture order of $143 billion. Though a staggering sum that does not bear any relation to what Mr. Madoff could pay, it is tied to the amount of the crime’s proceeds. The government set the amount that high to send a clear signal that it would seize all of his and his family’s assets and distribute them to victims.

On the day of Bernard Madoff’s arrest, his customers thought their accounts contained a total of $64.8 billion, but most of that wealth was fictitious. Madoff’s customers had actual cash losses of about $17.3 billion in the fraud, according to Irving H. Picard, the Madoff bankruptcy trustee.

Mr. Picard has recovered about $9.3 billion and distributed about $3.7 billion of that to eligible victims. An additional $2.35 billion has been seized by federal prosecutors under forfeiture laws and will be distributed separately by the Justice Department.

Peter Madoff worked alongside his brother for 39 years. Though Bernard was the firm’s sole owner, he paid Peter handsomely. The government said that Peter received about $40 million in compensation from 1998 to 2008. That money was put toward his and his wife, Marion’s, lifestyle that included homes in Old Westbury, N.Y., on Long Island, and Palm Beach, Fla., as well as a $4 million apartment on Park Avenue.

In his letter to the judge, Mr. Wing cited the early patterns of the Madoff family as a reason Peter Madoff dutifully obeyed his brother. “Their mother viewed Bernie as the prince, and Peter longed for the love and approval of his brother and family,” Mr. Wing wrote. “Peter had a large build, and Bernie ridiculed him mercilessly, calling him ‘Rollo,’ which hurt Peter deeply.”

But despite that demeaning abuse, “Peter seemed to be blind to his brother’s flaws,” Mr. Wing wrote.

Judge Swain saw it differently. In her view, Peter knew for decades that the Madoff business operation was “a little bit crooked and he was content to go along with that.” She then added, “We all know that a crooked operation is only rarely, if ever, just a little bit crooked.”

Before Thursday’s hearing, both sides filed letters to the judge highlighting factors they hoped she would consider.

The prosecutors stressed the harm done by Peter Madoff’s willful failure to carry out his duties. They cited a letter submitted by Marion Wiesel, the wife of the Nobel Peace Prize-winner Elie Wiesel, whose foundation lost $15.2 million in the fraud. Mrs. Wiesel said the crime that flourished under Peter Madoff’s neglect caused “the immediate and dramatic loss of a lifetime’s worth of work and savings.”

Judge Swain directed Peter Madoff to report to prison on Feb. 6, implicitly granting a request that he not be incarcerated until after his granddaughter’s bat mitzvah in late January.

In her own appeal to the court, the granddaughter wrote, “I would give anything just to have him see me reading from the Torah even if it was only for a second.”

The judge also complied with a request by Mr. Wing that she ask that Peter be assigned to a nearby prison in Otisville, N.Y., permitting regular visits from his family, though that decision ultimately rests with the Bureau of Prisons.

Besides the two brothers, criminal charges have been filed against a dozen other defendants. Bernard Madoff, 74, is serving his sentence at a federal prison near Raleigh, N.C. Peter’s daughter, Shana Madoff Swanson, was a lawyer at the Madoff firm but has not been charged with any crime.

Frank DiPascali, a longtime Madoff employee, pleaded guilty in August 2009 and is awaiting sentencing. Of the remaining defendants, six have pleaded guilty to violations of tax and securities laws that sustained the scheme. The remaining five defendants have denied the government’s charges and their trial is scheduled for October.

Among the 41 victim letters submitted by prosecutors was an unexpected one from Robert Roman, the brother-in-law of Bernard’s wife, Ruth Madoff. Mr. Roman said that although he and his wife lost their life savings in the fraud, he did not want to see Peter imprisoned.

“Our family is supposed to hate him. But — we do not,” Mr. Roman wrote. “Peter in prison is an answer only to those who seek revenge. It is not a solution.”

Toward the end of the hourlong sentencing, as Peter Madoff fought back tears, Judge Swain counseled the defendant that true atonement required that he fully disclose what happened at his brother’s firm.

“Be honest about all that you have done and all that you have seen,” the judge said. “In other words, all that you know.”

A version of this article appeared in print on 12/21/2012, on page B1 of the NewYork edition with the headline: Peter Madoff Sentenced to 10 Years in Fraud Case.
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DealBook: Upstart Exchange in $8.2 Billion Deal for N.Y.S.E.

8:39 a.m. | Updated The owner of the 220-year-old New York Stock Exchange on Thursday agreed to an $8.2 billion deal that would give control of the longstanding symbol of American capitalism to an upstart competitor.

NYSE Euronext said that it would sell itself to the IntercontinentalExchange for about $33.12 a share in cash and stock. The combined company would have headquarters in both ICE’s home of Atlanta and in New York.

The takeover signals the revival of consolidation in the world of market operators, after a wave of deals dissipated amid concerns over antitrust and nationalist sentiment. ICE had partnered with NYSE Euronext’s main rival, the Nasdaq OMX Group, in an $11 billion hostile bid for the Big Board’s parent, but that offer was blocked by the Justice Department.

And NYSE Euronext had sought to combine with Deutsche Börse, creating a global giant in the trading of derivatives. But that merger was stymied by European antitrust regulators.

Thursday’s deal is expected to run into fewer problems. ICE and NYSE Euronext have little overlap: the former focuses on the trading of commodities like energy products, the latter on stocks and derivatives.

Indeed, while the New York Stock Exchange, with its opening bell and floor traders, has been the public image of a stock market for two centuries, it is NYSE Euronext’s businesses in the over-the-counter trading of derivatives — including the Liffe market in London — that is the main attraction in the merger talks.

As part of the deal, ICE will consider spinning off NYSE Euronext’s European stock market operations.

Shareholders of NYSE Euronext would own about 36 percent of the combined company.

ICE’s chief executive, Jeffrey C. Sprecher, would keep that role in the newly enlarged market operator. NYSE Euronext’s chief, Duncan L. Niederauer, would be president.

Both companies relied on armies of advisers. ICE was advised by Morgan Stanley, BMO Capital Markets, Broadhaven Capital Partners, JPMorgan Chase, Lazard, Société Générale and Wells Fargo. It received legal counsel from Sullivan & Cromwell and Shearman & Sterling.

NYSE Euronext was advised by Perella Weinberg Partners, BNP Paribas, the Blackstone Group, Citigroup, Goldman Sachs and Moelis & Company. It was counseled by Wachtell, Lipton, Rosen & Katz; Slaughter & May; and Stibbe N.V.

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Study: Solo stars at higher death risk than bands


LONDON (AP) — Rock 'n' roll will never die — but it's a hazardous occupation.


A new study confirms that rock and pop musicians die prematurely more often than the general population, and an early death is twice as likely for solo musicians as for members of bands.


Researchers from Liverpool John Moores University studied 1,489 rock and pop stars who became famous between 1956 and 2009 and found they suffered "higher levels of mortality than demographically matched individuals in the general population."


American stars are more likely to die prematurely than British ones.


Lead researcher Mark Bellis speculates that could be because bands provide peer support at stressful times.


The research was published Thursday in online journal BMJ Open.


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