Media Decoder Blog: In Wake of Restructuring, NBC News President Quits

8:30 p.m. | Updated

The longest-serving president of any of the three network news divisions, Steve Capus of NBC News, stepped down from his position on Friday, six months after Comcast restructured its news units in a way that diminished his authority.

Pat Fili-Krushel, chairwoman of the NBCUniversal News Group, said in a brief telephone interview on Friday that she would “cast a wide net” while searching for a successor to Mr. Capus. In the interim, the leaders of the news division will report directly to her.

Ms. Fili-Krushel became Mr. Capus’s boss last July when Steve Burke, the chief executive of NBCUniversal, consolidated all of NBC’s news units — NBC News, the cable news channels MSNBC and CNBC, and its stake in the Weather Channel — under a new umbrella, the NBCUniversal News Group. Mr. Burke asked Ms. Fili-Krushel, one of his most trusted lieutenants, to run it, while keeping Mr. Capus and the heads of the other units in place.

Ms. Fili-Krushel worked early in her career at HBO and Lifetime. A veteran of the Walt Disney Company, where she helped program ABC, and  Time Warner, where she was an administrator, she is by her own admission not a journalist.  But now she is, by default, the highest-ranking woman in the American television news industry — not just at the moment, but in the history of the medium. The heads of the news divisions at ABC and CBS are men, as are the heads of the Fox News Channel, CNN, and Bloomberg.

Ms. Fili-Krushel has kept a low public profile, but has been a forceful presence behind the scenes, recently moving from her office on the 51st floor of 30 Rockefeller Center, near Mr. Burke’s, to a new one on the third floor, where NBC News is based. On Friday, she said she had spent her first six months “learning, listening and getting to know the players here.” She called the News Group an “unbelievably strong organization.”

Though Mr. Capus’s exit saddened many at NBC News on Friday, it came as little surprise. He had previously reported directly to Mr. Burke, but after the restructuring he reported to Ms. Fili-Krushel, and he made no secret of his unhappiness with the change. His contract had a clause that allowed him to leave in the event that he no longer reported to Mr. Burke, according to two people with direct knowledge of the arrangement at NBC, and he decided to exercise that right after months of contemplation. The people insisted on anonymity because they were not authorized by the network to speak publicly.

Mr. Capus told Ms. Fili-Krushel of his intent to leave last Friday. It is likely that he would have left sooner, but a series of major news stories kept him busy late last year — including Hurricane Sandy, the presidential election and the school shooting in Newtown, Conn. Mr. Capus also oversaw the network’s response to the kidnapping of Richard Engel and an NBC News crew in Syria last month.

“It has been a privilege to have spent two decades here, but it is now time to head in a new direction,” he wrote in an e-mail to staff members on Friday afternoon.

Mr. Capus guided NBC through a revolutionary time in news-gathering and distribution. He maintained the news division’s profitability, managed tensions between NBC News and its increasingly liberal cable channel MSNBC, and fostered new business ventures like an in-house production company and an annual education summit. Last year, he unwound an old deal with Microsoft to give the news division complete control over its Web site, now named NBCNews.com, for the first time.

Ms. Fili-Krushel wrote in a separate e-mail to staff members that “NBC News is America’s leading source of television news and Steve has been a big part of that success.”

NBC News is the producer of the most popular evening newscast in the country. But its single biggest source of profits, the morning show “Today,” fell to second place last year, behind ABC’s “Good Morning America,” for the first time since the 1990s. The decline caused widespread anxiety inside the news division and speculation that Mr. Capus would be relieved of his duties.

Inside NBC, both Mr. Capus and the executive producer of “Today,” Jim Bell, received much of the blame for the botched removal of Ann Curry from “Today” last June, which worsened the show’s already tenuous position in the ratings. Ms. Fili-Krushel was put in charge just a few weeks later.

Mr. Bell was replaced at “Today” last fall and is now the executive producer for NBC Olympics. Savannah Guthrie is now the co-host of “Today,” and Ms. Curry is a national and international correspondent for the network, but is rarely seen. Mr. Capus’s exit was seen by some at the network as the last shoe that had to drop.

In his e-mail to staff members, Mr. Capus called it an “extremely difficult decision to walk away,” noting that he started at NBC as a producer 20 years ago this month. He did not make any mention of what he would do next. “Journalism is, indeed, a noble calling, and I have much I hope to accomplish in the next phase of my career,” he wrote.

“Today” continues to lose to ABC’s “Good Morning America” among total viewers, but lately it has won a few weeks in the 25- to 54-year-old demographic that advertisers covet.

“NBC Nightly News” has more successfully fended off ABC’s “World News,” despite an aggressive push by ABC. Mr. Capus said, “NBC News has grown in all key metrics — from ratings and reputation to profitability.”

Read More..

Ferrol Sams, Doctor Turned Novelist, Dies at 90

Ferrol Sams, a country doctor who started writing fiction in his late 50s and went on to win critical praise and a devoted readership for his humorous and perceptive novels and stories that drew on his medical practice and his rural Southern roots, died on Tuesday at his home in Lafayette, Ga. He was 90.

The cause, said his son Ferrol Sams III, also a doctor, was that he was “slap wore out.”

“He lived a full life,” his son said. “He didn’t leave anything in the tank.”

Dr. Sams grew up on a farm in the rural Piedmont area of Georgia, seven mud-road miles from the nearest town. He was a boy during the Depression; books meant escape and discovery. He read “Robinson Crusoe,” then Mark Twain and Charles Dickens. One of his English professors at Mercer University, in Macon, suggested he consider a career in writing, but he chose another route to examining the human condition: medical school.

When he was 58 — after he had served in World War II, started a medical practice with his wife, raised his four children and stopped devoting so much of his mornings to preparing lessons for Sunday school at the Methodist church — he began writing “Run With the Horsemen,” a novel based on his youth. It was published in 1982.

“In the beginning was the land,” the book begins. “Shortly thereafter was the father.”

In The New York Times Book Review, the novelist Robert Miner wrote, “Mr. Sams’s approach to his hero’s experiences is nicely signaled in these two opening sentences.”

He added: “I couldn’t help associating the gentility, good-humored common sense and pace of this novel with my image of a country doctor spinning yarns. The writing is elegant, reflective and amused. Mr. Sams is a storyteller sure of his audience, in no particular hurry, and gifted with perfect timing.”

Dr. Sams modeled the lead character in “Run With the Horsemen,” Porter Osborne Jr., on himself, and featured him in two more novels, “The Whisper of the River” and “When All the World Was Young,” which followed him into World War II.

Dr. Sams also wrote thinly disguised stories about his life as a physician. In “Epiphany,” he captures the friendship that develops between a literary-minded doctor frustrated by bureaucracy and a patient angry over past racism and injustice.

Ferrol Sams Jr. was born Sept. 26, 1922, in Woolsey, Ga. He received a bachelor’s degree from Mercer in 1942 and his medical degree from Emory University in 1949. In his addition to his namesake, survivors include his wife, Dr. Helen Fletcher Sams; his sons Jim and Fletcher; a daughter, Ellen Nichol; eight grandchildren; and nine great-grandchildren.

Some critics tired of what they called the “folksiness” in Dr. Sams’s books. But he did not write for the critics, he said. In an interview with the Georgia Writers Hall of Fame, Dr. Sams was asked what audience he wrote for. Himself, he said.

“If you lose your sense of awe, or if you lose your sense of the ridiculous, you’ve fallen into a terrible pit,” he added. “The only thing that’s worse is never to have had either.”

Read More..

Ferrol Sams, Doctor Turned Novelist, Dies at 90

Ferrol Sams, a country doctor who started writing fiction in his late 50s and went on to win critical praise and a devoted readership for his humorous and perceptive novels and stories that drew on his medical practice and his rural Southern roots, died on Tuesday at his home in Lafayette, Ga. He was 90.

The cause, said his son Ferrol Sams III, also a doctor, was that he was “slap wore out.”

“He lived a full life,” his son said. “He didn’t leave anything in the tank.”

Dr. Sams grew up on a farm in the rural Piedmont area of Georgia, seven mud-road miles from the nearest town. He was a boy during the Depression; books meant escape and discovery. He read “Robinson Crusoe,” then Mark Twain and Charles Dickens. One of his English professors at Mercer University, in Macon, suggested he consider a career in writing, but he chose another route to examining the human condition: medical school.

When he was 58 — after he had served in World War II, started a medical practice with his wife, raised his four children and stopped devoting so much of his mornings to preparing lessons for Sunday school at the Methodist church — he began writing “Run With the Horsemen,” a novel based on his youth. It was published in 1982.

“In the beginning was the land,” the book begins. “Shortly thereafter was the father.”

In The New York Times Book Review, the novelist Robert Miner wrote, “Mr. Sams’s approach to his hero’s experiences is nicely signaled in these two opening sentences.”

He added: “I couldn’t help associating the gentility, good-humored common sense and pace of this novel with my image of a country doctor spinning yarns. The writing is elegant, reflective and amused. Mr. Sams is a storyteller sure of his audience, in no particular hurry, and gifted with perfect timing.”

Dr. Sams modeled the lead character in “Run With the Horsemen,” Porter Osborne Jr., on himself, and featured him in two more novels, “The Whisper of the River” and “When All the World Was Young,” which followed him into World War II.

Dr. Sams also wrote thinly disguised stories about his life as a physician. In “Epiphany,” he captures the friendship that develops between a literary-minded doctor frustrated by bureaucracy and a patient angry over past racism and injustice.

Ferrol Sams Jr. was born Sept. 26, 1922, in Woolsey, Ga. He received a bachelor’s degree from Mercer in 1942 and his medical degree from Emory University in 1949. In his addition to his namesake, survivors include his wife, Dr. Helen Fletcher Sams; his sons Jim and Fletcher; a daughter, Ellen Nichol; eight grandchildren; and nine great-grandchildren.

Some critics tired of what they called the “folksiness” in Dr. Sams’s books. But he did not write for the critics, he said. In an interview with the Georgia Writers Hall of Fame, Dr. Sams was asked what audience he wrote for. Himself, he said.

“If you lose your sense of awe, or if you lose your sense of the ridiculous, you’ve fallen into a terrible pit,” he added. “The only thing that’s worse is never to have had either.”

Read More..

Washington Post Joins List of News Media Hacked by the Chinese

SAN FRANCISCO — The question is no longer who has been hacked. It’s who hasn’t?

The Washington Post can be added to the growing list of American news organizations whose computers have been penetrated by Chinese hackers.

After The New York Times reported on Wednesday that its computers as well as those of Bloomberg News had been attacked by Chinese hackers, The Wall Street Journal said on Thursday that it too had been a victim of Chinese cyberattacks.

According to people with knowledge of an investigation at The Washington Post, its computer systems were also attacked by Chinese hackers in 2012. A former Post employee said there had been hacking attempts at the Washington Post for at least four years, but none targeted the company’s newsroom. Then, last year, newsroom computers were found to be communicating with Web servers that were traced back to China, according to people with knowledge of the Post investigation who declined to speak on the record.

Jennifer Lee, a spokeswoman for the Post Company, said that the “company did not have anything to share at this time.”

Security experts said that in 2008, Chinese hackers began targeting American news organizations as part of an effort to monitor coverage of Chinese issues.

In a report for clients in December, Mandiant, a computer security company, said that over the course of several investigations it found evidence that Chinese hackers had stolen e-mails, contacts and files from more than 30 journalists and executives at Western news organizations, and had maintained a “short list” of journalists for repeated attacks.

Among those targeted were journalists who had written about Chinese leaders, political and legal issues in China and the telecom giants Huawei and ZTE.

The Times reported on Wednesday that Bloomberg L.P. was also attacked by Chinese hackers after its Bloomberg News unit published an article last June about the wealth accumulated by relatives of Xi Jinping, China’s vice president at the time. Mr. Xi became general secretary of the Communist Party in November and is expected to become president in March.

The secretary of state, Hillary Rodham Clinton, said on Thursday that a global effort was needed to establish rules for cyberactivity. In her final meeting with reporters, Mrs. Clinton addressed a question about China’s efforts to infiltrate computer systems at The New York Times. “We have seen over the last years an increase in not only the hacking attempts on government institutions but also nongovernmental ones,” she said, adding that the Chinese “are not the only people who are hacking us.”

Read More..

India Ink: India Moves to Strengthen Sexual Assault Laws

On Friday, a special meeting of the Union Cabinet approved an ordinance to strengthen laws to deal with sexual violence against women. While the ordinance approved some suggestions made by the Justice Verma Committee making stalking, voyeurism and acid attacks punishable under criminal law, it diverged on issues such as marital rape, capital punishment and the prosecution of armed forces personnel who commit sexual assaults. The ordinance has received a mixed response from lawyers and women’s groups, who were agitating for more holistic legislation.

“This is a piecemeal and fragmented ordinance which seems to be more of an exercise to make an impact,” said Kirti Singh, a senior advocate in the Supreme Court of India who specializes in women’s issues. “After twenty years of not doing anything they seem to be in a tremendous hurry to do something or the other to appease public sentiment.”

The Dec. 16 rape and subsequent death of a young woman on a moving bus in India prompted a nationwide response and calls to improve India’s legislation to curb sexual violence against women. On Jan. 23, a three-member committee headed by a retired Supreme Court chief justice, J.S. Verma, submitted its recommendations urging the government to act. In response, Prime Minister Manmohan Singh pledged Wednesday to act quickly to adopt the committee’s recommendations.

Mr. Singh on Friday convened a special cabinet meeting to discuss the recommendations of the Justice Verma Committee, after which the ordinance was passed. The ordinance must be approved by President Pranab Mukherjee and passed by the Parliament to become law. “The approval of the ordinance in an utmost expeditious manner is in response to the sensitivities of the people felt in the aftermath of the gruesome incident that happened on Dec. 16,” Ashwani Kumar, the Union Law Minister, told the Indian Express. He said that the ordinance contains provisions of Verma Committee recommendations along with the Criminal Law (Amendment) Bill, 2012 that is pending in Parliament.

The ordinance has accepted some of the recommendations made by the Justice Verma Committee such as making voyeurism, stalking and acid attacks punishable offenses. “We welcome some of the things mentioned in the ordinance such as the inclusion of graded sexual abuse and harsher punishment for sexual offenses,” said Annie Raja, general secretary of the National Federation of Indian Women. The recognition that the sexual history of the victim should not be an issue and addition of improved investigation procedures that require the presence of female police officers were also welcomed by women’s rights activists.

Contrasting with the recommendations made by the Verma Committee, the ordinance has introduced capital punishment for special cases of sexual violence that cause severe physical or mental damage, lead to death or leave the victim in a persistent vegetative state. The ordinance provides for varying degrees of punishment for rapists depending on the gravity of the crime such that the punishment for those convicted for rape can range from seven years to the death penalty. There has also been a special provision for gang rape, which entails a minimum punishment of 20 years and a maximum punishment of the death sentence.

“Every country is moving towards the elimination of death penalty and India is strengthening the legislation for death penalty,” said Kavita Srivastava , the national secretary for the People’s Union for Civil Liberties. “Here we are still looking for an eye for an eye framework.”

While the Dec. 16 gang rape revived debates about the application of the death penalty for rape and calls for the six accused men to be executed, legal experts believe that the provision of the death penalty is a regressive step.

“We have had a long experience of the court not even awarding the minimum sentence for rape,” Ms. Singh said. “Rather than the introduction of the death penalty, which seems like a knee-jerk reaction to public demands, there should be a provision for the certainty of punishment which ties down the discretion of the court.” Ms. Singh also said that the law should assure that a life sentence cannot be commuted and actually results in rigorous imprisonment for life.

The ordinance also did not accept the suggestions of the Verma Committee that dealt with sexual violence among members of the armed forces and police personnel. The committee had asked for a removal of the Armed Forces Special Powers Act that gives the armed forces immunity from prosecution and proposed that the senior police or army officer would be held responsible for a sexual offense committed by a junior officer.

Other issues in which the government ordinance rejected the suggestions of the Verma committee are the incorporation of marital rape as a punishable criminal offense, the payment of compensation to victims of sexual violence and the lowering of the juvenile age from 18 to 16 years. The ordinance has also made the definition of rape gender neutral, rather than keeping it gender-specific to women as suggested by the Verma Committee.

A statement issued by the All India Democratic Women’s Association objected to what they described as the “selective and arbitrary approach of the government” with regards to the Verma Committee recommendations. “The present piecemeal and fragmented ordinance can only serve to sabotage the intention of providing recourse to victims of sexual violence,” the statement said.

The introduction of an ordinance — ahead of the budget session in parliament scheduled to begin later this month — has been criticized by women’s rights activists and lawyers. “It is on the whole a very, very problematic ordinance that disregards many suggestions made by the Verma Committee,” said Ms. Kavita Srivastava. “It is too serious an issue for the cabinet to have gone ahead on its own, they could have waited for the budget session which is only twenty days away.”

Activists said that they would be issuing responses to the ordinance and asking for the legislation to be debated in parliament.

“They should have convened a special parliament session to the debate the question of sexual violence against women and discuss the human resources and financial resources required to implement new measures,” Ms. Raja said. “Because it has taken the form of an ordinance, there is no room for discussion or debate. Legislation cannot be made on the basis of popular opinion.”

Read More..

DealBook: Doubt Is Cast on Consultants Hired to Fix Banks’ Abuses

Federal authorities are scrutinizing private consultants hired to clean up financial misdeeds like money laundering and foreclosure abuses, taking aim at an industry that is paid billions of dollars by the same banks it is expected to police.

The consultants operate with scant supervision and produce mixed results, according to government documents and interviews with prosecutors and regulators. In one case, the consulting firms enabled the wrongdoing. The deficiencies, officials say, can leave consumers vulnerable and allow tainted money to flow through the financial system.

“How can you be independent if you’re hired by the entity you’re reviewing?” Senator Jack Reed, Democrat of Rhode Island, who sits on the Senate Banking Committee, said.

The pitfalls were exposed last month when federal regulators halted a broad effort to help millions of homeowners in foreclosure. The regulators reached an $8.5 billion settlement with banks, scuttling a flawed foreclosure review run by eight consulting firms. In the end, borrowers hurt by shoddy practices are likely to receive less money than they deserve, regulators said.

On Thursday, Senator Elizabeth Warren, Democrat of Massachusetts, and Representative Elijah Cummings, Democrat of Maryland, announced that they would open an investigation into the foreclosure review, seeking “additional information about the scope of the harms found.”

Critics concede that regulators have little choice but to hire outsiders for certain responsibilities after they find problems at the banks. The government does not have the resources to ensure that banks follow the rules. Still, consultants like Deloitte & Touche and the Promontory Financial Group can add to regulators’ headaches, the government documents and interviews indicate. Some banks that work with consultants continue to run afoul of the law. At other times, consultants underestimate the extent of the misdeeds or facilitate them, preventing regulators from holding institutions accountable.

Now, regulators and lawmakers are rethinking their relationship with the consultants. Officials at the Federal Reserve, which oversees many large banks, are questioning the prudence of relying on consultants so heavily, said two people with direct knowledge of the matter.

When the Office of the Comptroller of the Currency penalized JPMorgan Chase last month for breakdowns in money-laundering controls, it imposed stricter requirements, ordering the bank to hire a consultant with “specialized experience” in money laundering and to ensure that the firm “not be subject to any conflict of interest.” In a separate action against the bank related to a $6 billion trading loss last year, the agency opted not to mandate an outside consultant at all.

While the comptroller’s office will continue requiring consultants in certain cases, some agency officials are worried about the quality of the work, as well as the consultants’ independence, according to three government officials briefed on the matter.

Since the financial crisis, regulators have increasingly relied on consultants. The comptroller’s office ordered banks to hire consultants in more than 130 enforcement actions since 2008, or nearly 15 percent of the cases.

It can be a lucrative business. In 2011, regulators mandated that 14 banks employ consultants to determine whether homeowners were wrongfully evicted. Over 14 months, the consultants collected about $2 billion in fees, according to regulators and bank officials.

Those fees amounted to more than half of what homeowners will receive under the $8.5 billion settlement that ended the review. As part of the deal, officials will disburse $3.3 billion to 3.8 million borrowers in foreclosure.

According to consultants and regulators, the broad review was plagued with inefficiencies. For example, Promontory initially instructed employees to calculate lawyers’ fees for each loan, to assess if borrowers were overcharged. Later, it scrapped the original procedure, only to reverse the policy again two weeks later, according to two reviewers who worked for Promontory.

“From Day 1, Promontory strove to conduct its review work as thoroughly and independently as possible,” a spokesman for the firm, Christopher Winans, said in a statement. “Our overarching concern at all times was to serve the best interests of borrowers.”

Some lawmakers question whether a consultant’s regulatory connections helped it secure contracts. PricewaterhouseCoopers, which has a stable of former Securities and Exchange Commission officials, won much of the foreclosure review work, signing deals with four banks, including Citigroup. Promontory, the firm examining loans for Wells Fargo, Bank of America and PNC, was founded in 2000 by the former head of the comptroller’s office, Eugene A. Ludwig.

When the contracts were initially awarded, some housing advocates complained that consulting firms could not objectively evaluate banks with which they had pre-existing business relationships. The comptroller’s office said it vetted the firms to spot such potential conflicts, and argued that the process provided swifter relief for homeowners than if the government had hired the companies directly through a lengthy contracting process.

But concerns persisted. Deloitte, which won the contract to review JPMorgan’s loans, had previously audited Washington Mutual and Bear Stearns, two firms JPMorgan acquired during the financial crisis. In May, the comptroller’s office replaced Allonhill, the consultant for Aurora Bank, after the firm disclosed that it had already reviewed some “of the same pool of loans” as part of an earlier contract.

“It’s clear from the foreclosure settlement that oversight over consultants was inadequate and the review process was deeply flawed,” said Representative Carolyn B. Maloney, Democrat of New York, who recently pressed regulators to detail how consultants were paid. People close to the review say consultants relied on a process that the comptroller’s office designed in 2011, under previous leadership.

“This was a very complex process,” a spokesman for the comptroller said. “Throughout the process, regulators provided continuous oversight, guidance and were available to discuss issues.” The agency also performs spot checks on the consultants.

Still, the foreclosure review highlighted broader concerns about the role consultants play.

Since the financial crisis, the comptroller’s office has issued nearly 20 enforcement actions against banks that had already hired consultants to help iron out problems, according to government documents. While consultants cannot be expected to remedy every last issue at the banks, the actions raise questions about the effectiveness of their work.

When HSBC, the British bank, was sanctioned in 2003 over porous money-laundering controls, the bank turned to Deloitte to review its compliance, an official briefed on the matter said. Deloitte also worked for HSBC from 2006 to 2008, the person said, building a system to monitor money flows more effectively. But the bank ran into trouble in 2010 over similar issues, as highlighted in a recent scathing report by the Senate’s Permanent Subcommittee on Investigations.

As part of a regulatory order, HSBC again hired Deloitte, this time to assess the number of times the bank failed to report suspicious transactions. Deloitte, three officials said, generously bundled hundreds of missed transfers into a single report. That helped save the bank from some government fines.

Despite the undercounting, HSBC still paid a record $1.9 billion last year to settle accusations that it enabled drug cartels to move money through its American subsidiaries.

In a statement, a spokesman for the firm said, “Deloitte fully stands behind the quality and integrity of its work on behalf of regulatory authorities.”

Deloitte has also been suspected of helping institutions cloak illicit transfers of money to rogue nations around the globe. In August, New York’s top banking regulator, Benjamin M. Lawsky, accused Deloitte of helping the British bank Standard Chartered flout American sanctions.

The consulting firm was hired to flag suspicious transfers routed through Standard Chartered’s New York branches. Instead, it instructed bankers on how to escape regulatory scrutiny, according to state court documents.

Deloitte turned over “highly confidential information” from which the bank gleaned insight into “regulators’ concerns and strategies,” the court documents said. The firm later doctored its report to regulators, Mr. Lawsky said, deliberately removing some illegal transfers on behalf of Iranian clients. In an e-mail, a Deloitte partner admitted that a report on the transactions was a “watered-down version.”

The authorities never took legal action against Deloitte, and federal officials noted in a separate settlement agreement that Standard Chartered employees withheld critical information from the consulting firm.

Despite these concerns, regulators are turning to a familiar source to help Standard Chartered. As part of a $327 million settlement last year, the bank is required to hire “an independent consultant.”

Read More..

The New Old Age Blog: Caregiving, Laced With Humor

“My grandmother, she’s not a normal person. She’s like a character when she speaks. Every day she’s playing like she’s an actress.”

These are words of love, and they come from Sacha Goldberger, a French photographer who has turned his grandmother, 93-year-old Frederika Goldberger, into a minor European celebrity.

In the photos, you can see the qualities grandson and grandmother have in common: a wicked sense of humor, an utter lack of pretension and a keen taste for theatricality and the absurd.

This isn’t an ordinary caregiving relationship, not by a long shot. But Sacha, 44 years old and unmarried, is deeply devoted to this spirited older relation who has played the role of Mamika (“my little grandmother,” translated from her native Hungarian) in two of his books and a photography exhibition currently underway in Paris.

As for Frederika, “I like everything that my grandson does,” she said in a recent Skype conversation from her apartment, which also serves as Sacha’s office. “I hate not to do anything. Here, with my grandson, I have the feeling I am doing something.”

Their unusual collaboration began after Frederika retired from her career as a textile consultant at age 80 and fell into a funk.

“I was very depressed because I lived for working,” she told me in our Skype conversation.

Sacha had long dreamed of creating what he calls a “Woody Allen-like Web site with a French Jewish humor” and he had an inspiration. What if he took one of the pillars of that type of humor, a French man’s relationship with his mother and grandmother, and asked Frederika to play along with some oddball ideas?

This Budapest-born baroness, whose family had owned the largest textile factory in Hungary before World War II, was a natural in front of the camera, assuming a straight-faced, imperturbable comic attitude whether donning a motorcycle helmet and goggles, polishing her fingernails with a gherkin, wearing giant flippers on the beach, lighting up a banana, or dressed up as a Christmas tree with a golden star on her head. (All these photos and more appear in “Mamika: My Mighty Little Grandmother,” published in the United States last year.)

“It was like a game for us, deciding what crazy thing we were going to do next, how we were going to keep people from being bored,” said Sacha, who traces his close relationship with his grandmother to age 14, when she taught him how to drive and often picked him up at school. “Making pictures was a very good excuse to spend time together.”

“He thought it was very funny to put a costume on me,” said Frederika. “And I liked it.”

People responded enthusiastically, and before long Sacha had cooked up what ended up becoming the most popular character role for Frederika: Super Mamika, outfitted in a body-hugging costume, tights, a motorcycle helmet and a flowing cape.

His grandmother was a super hero of sorts, because she had helped save 10 people from the Nazis during World War II, said Sacha. He also traced inspiration to Stan Lee, a Jewish artist who created the X-Men, The Hulk and the Fantastic Four for Marvel comics. “I wanted to ask what happens to these super heroes when they get old in these photographs with my grandmother.”

Lest this seem a bit trivial to readers of this blog, consider this passage from Sacha’s introduction to “Mamika: My Might Little Grandmother”:

In a society where youth is the supreme value; where wrinkles have to be camouflaged; where old people are hidden as soon as they become cumbersome, where, for lack of time or desire, it is easier to put our elders in hospices rather than take care of them, I wanted to show that happiness in aging was also possible.

In our Skype conversation, Sacha confessed to anxiety about losing his grandmother, and said, “I always was very worried about what would happen if my grandmother disappeared. Because she is exceptional.”

“I am not normal,” Frederika piped up at his side, her face deeply wrinkled, her short hair beautifully coiffed, seemingly very satisfied with herself.

“So, making these pictures to me is the best thing that could happen,” Sacha continued, “because now my grandma is immortal and it seems everyone knows her. I am giving to everybody in the world a bit of my grandma.”

This wonderful expression of caring and creativity has expanded my view of intergenerational relations in this new old age. What about you?

Read More..

The New Old Age Blog: Caregiving, Laced With Humor

“My grandmother, she’s not a normal person. She’s like a character when she speaks. Every day she’s playing like she’s an actress.”

These are words of love, and they come from Sacha Goldberger, a French photographer who has turned his grandmother, 93-year-old Frederika Goldberger, into a minor European celebrity.

In the photos, you can see the qualities grandson and grandmother have in common: a wicked sense of humor, an utter lack of pretension and a keen taste for theatricality and the absurd.

This isn’t an ordinary caregiving relationship, not by a long shot. But Sacha, 44 years old and unmarried, is deeply devoted to this spirited older relation who has played the role of Mamika (“my little grandmother,” translated from her native Hungarian) in two of his books and a photography exhibition currently underway in Paris.

As for Frederika, “I like everything that my grandson does,” she said in a recent Skype conversation from her apartment, which also serves as Sacha’s office. “I hate not to do anything. Here, with my grandson, I have the feeling I am doing something.”

Their unusual collaboration began after Frederika retired from her career as a textile consultant at age 80 and fell into a funk.

“I was very depressed because I lived for working,” she told me in our Skype conversation.

Sacha had long dreamed of creating what he calls a “Woody Allen-like Web site with a French Jewish humor” and he had an inspiration. What if he took one of the pillars of that type of humor, a French man’s relationship with his mother and grandmother, and asked Frederika to play along with some oddball ideas?

This Budapest-born baroness, whose family had owned the largest textile factory in Hungary before World War II, was a natural in front of the camera, assuming a straight-faced, imperturbable comic attitude whether donning a motorcycle helmet and goggles, polishing her fingernails with a gherkin, wearing giant flippers on the beach, lighting up a banana, or dressed up as a Christmas tree with a golden star on her head. (All these photos and more appear in “Mamika: My Mighty Little Grandmother,” published in the United States last year.)

“It was like a game for us, deciding what crazy thing we were going to do next, how we were going to keep people from being bored,” said Sacha, who traces his close relationship with his grandmother to age 14, when she taught him how to drive and often picked him up at school. “Making pictures was a very good excuse to spend time together.”

“He thought it was very funny to put a costume on me,” said Frederika. “And I liked it.”

People responded enthusiastically, and before long Sacha had cooked up what ended up becoming the most popular character role for Frederika: Super Mamika, outfitted in a body-hugging costume, tights, a motorcycle helmet and a flowing cape.

His grandmother was a super hero of sorts, because she had helped save 10 people from the Nazis during World War II, said Sacha. He also traced inspiration to Stan Lee, a Jewish artist who created the X-Men, The Hulk and the Fantastic Four for Marvel comics. “I wanted to ask what happens to these super heroes when they get old in these photographs with my grandmother.”

Lest this seem a bit trivial to readers of this blog, consider this passage from Sacha’s introduction to “Mamika: My Might Little Grandmother”:

In a society where youth is the supreme value; where wrinkles have to be camouflaged; where old people are hidden as soon as they become cumbersome, where, for lack of time or desire, it is easier to put our elders in hospices rather than take care of them, I wanted to show that happiness in aging was also possible.

In our Skype conversation, Sacha confessed to anxiety about losing his grandmother, and said, “I always was very worried about what would happen if my grandmother disappeared. Because she is exceptional.”

“I am not normal,” Frederika piped up at his side, her face deeply wrinkled, her short hair beautifully coiffed, seemingly very satisfied with herself.

“So, making these pictures to me is the best thing that could happen,” Sacha continued, “because now my grandma is immortal and it seems everyone knows her. I am giving to everybody in the world a bit of my grandma.”

This wonderful expression of caring and creativity has expanded my view of intergenerational relations in this new old age. What about you?

Read More..

Wall Street Journal Reports Attack by China Hackers

One day after The New York Times reported that Chinese hackers had infiltrated its computers and stolen passwords for its employees, The Wall Street Journal announced that it too had been hacked.

On Thursday, The Journal reported that it had been attacked by Chinese hackers who were trying to monitor the company’s coverage of China. It said hackers had broken into its network through computers in its Beijing bureau.

In a written statement, the business newspaper owned by News Corporation described the attack as an “ongoing issue” and said it was working closely with authorities and security specialists to clean up its systems. It said that it completed a “network overhaul” on Thursday in an effort to rid its systems of hackers.

China’s Ministry of National Defense has denied any involvement in the cyberattack at The Times or any other American corporations.

But security experts said that in 2008, Chinese hackers began targeting American news organizations as part of an effort to monitor coverage of Chinese issues.

In a report for clients in December, Mandiant, a computer security company, said that over the course of several investigations it found evidence that Chinese hackers had stolen e-mails, contacts and files from more than 30 journalists and executives at Western news organizations, and had maintained a “short list” of journalists for repeated attacks. Among those targeted were journalists who had written about Chinese leaders, political and legal issues in China and the telecom giant Huawei.

Bloomberg News, another American news organization, was targeted by Chinese hackers last year, and some computers were infected, according to a person with knowledge of the company’s internal investigation. The attack occurred after Bloomberg published an article on June 29 about the wealth accumulated by relatives of Xi Jinping, a Chinese official who is expected to become president in March.

Bloomberg has confirmed that hackers had made attempts but said that “no computer systems or computers were compromised.”

The timing of the attacks on The New York Times coincided with the reporting for an investigation, published online on Oct. 25, that found that the relatives of Wen Jiabao, China’s prime minister, had accumulated a fortune worth several billion dollars through business dealings.

Security experts hired by The Times to detect and block the computer attacks found digital evidence that Chinese hackers, using methods that some consultants have associated with the Chinese military in the past, breached The Times’s network.

The Associated Press reported Thursday that officials in the Obama administration were considering more assertive action against Beijing to stop Chinese computer espionage campaigns.

The Secretary of State, Hillary Clinton, said Thursday a global effort was needed o establish “rules of the road” for cyber activity.  In her final meeting with reporters at the State Department, Mrs. Clinton addressed a question about China’s efforts to infiltrate computer systems at The New York Times. 

 “We have seen over the last years an increase in not only the hacking attempts on government institutions but also non-governmental ones,” Mrs. Clinton said.

The Chinese, she said, “are not the only people who are hacking us.” 

 “There is a lot that we are working on that will be deployed in the event that we don’t get some kind of international effort under way,” Mrs. Clinton added without elaborating.

The United States has been increasingly vocal about such efforts against government and private industry. In a November 2011 intelligence report, government officials specifically accused China and Russia of stealing intellectual property for economic gain.

Michael Gordon contributed reporting from Washington.

Read More..

India Ink: Women's World Cup Kicks off in Mumbai

Rafiq Maqbool/Associated Press Indian cricketer Niranjana Nagarajan (center) celebrates the dismissal of West Indies’ Deandra Dottin during the opening match of the ICC Women’s World Cup cricket in Mumbai, Maharashtra on Thursday.

England will be defending its title in the 10th Women’s Cricket World Cup, which began Thursday in Mumbai with a match between India, the host country, and the West Indies.

Though England is heavily favored, New Zealand, India and Australia are considered strong contenders to knock the defending champion off its perch. The four teams qualified for the Cricket World Cup by finishing in the top four spots in the last World Cup, held in Australia in March 2009.

They are joined by Pakistan, Sri Lanka, South Africa and the West Indies, who made it to the World Cup through the qualifier played in Bangladesh in 2011.

India is playing host to the quadrennial event for the third time, having held the World Cup in 1978 and 1997. All 25 matches, including the final, will be played in Cuttack and Mumbai until Feb. 17. India took the first match, by 105 runs.

India, England, Sri Lanka and the West Indies are in Group A, while Australia, New Zealand, Pakistan and South Africa are in Group B. The top three teams from each group will clash in the Super Six stage.

India’s captain, Mithali Raj, a veteran of 141 One-Day Internationals, in which she has scored 4,490 runs at 48.27 average runs per match, will not only have to lead from the front and make the most of the home conditions and comforts, but also to score runs consistently, being the mainstay of her team’s batting.

Her predecessor, Jhulan Goswami, an experienced medium-paced bowler who has taken 145 wickets at an average of 21.87 runs given per wicket in 126 One-Day Internationals, is expected to spearhead India’s attack.

India has never won the World Cup, and this may be its best chance. “Since the tournament will be held in India, our team is quite familiar with the conditions. The weather is a plus point,” Ms. Raj told The Times of India.

Charlotte Edwards, who has played a record 160 One-Day Internationals, is leading the defending champion England. England is a powerful all-round team, packed with some excellent batswomen and bowlers.

Though they will have to conquer the warmer weather and slower Indian pitches, analysts would not be surprised if the English women retain the title. In wicketkeeper-batswoman Sarah Taylor, who wants to play men’s cricket, they have a formidable player.

New Zealand, who lost to England in the last World Cup, is a very experienced side, with outstanding players like captain Suzie Bates (who is in terrific form, having scored a century and two fifties in her last five One-Day International innings), Nicola Browne, Sophie Devine and Sara McGlashan in its ranks. New Zealand won the World Cup in 2000 but has failed to win on three other occasions despite reaching the final.

Australia, led by Jodie Fields, also prides itself on its overall strength. Also, having already won the World Cup twice and beaten England in the World Twenty20 final last year, the Aussie women can fancy their chances, although the subcontinental conditions might pose a challenge to them.

West Indies, Pakistan, South Africa and Sri Lanka, which were unimpressive in the last World Cup and occupied fifth, sixth, seventh and eighth positions, respectively, at the end of the tournament, still look like the minnows of women’s cricket. They will have to put up an extraordinary performance to look more impressive this time, though it will not be easy, considering the might of the other four teams.

Read More..

Hong Kong Still Attracting Retailers Despite Forbidding Costs

HONG KONG — Hong Kong is one of the busiest and most crowded shopping meccas in the world — with sky-high retail rents to match — but that has not stopped retailers from opening yet more stores in the city of seven million, attracted by hordes of visiting consumers.

The latest arrival is Tommy Bahama, a U.S. clothing and lifestyle brand, which joined the fray Wednesday with the opening of a 370-square-meter, or 4,000-square-foot, store in the Wan Chai district, its first outlet in the city.

Amid models and canapés, Tommy Bahama executives were coy about just how much they had to fork over in rent.

But the store, said Terry Pillow, the chief executive officer, is “one of the most expensive locations” the company operates — “in a similar range” as a recently opened, significantly larger, flagship store on Fifth Avenue in New York.

That comes as little surprise.

Reports from the real estate services company CBRE last year ranked Hong Kong as the world’s most expensive location for prime real estate and office rents, and ECA International, which advises companies posting employees abroad, published a poll this week showing that Hong Kong was the most expensive place to rent high-end apartments. The cost of buying a home, likewise, has soared, despite repeated efforts by the government to cool the market.

Moreover, even those companies that are prepared to bite the bullet on rent might struggle to find what they need.

It took Mr. Pillow and his colleagues at Tommy Bahama, whose casual wear is in the “affordable luxury” range of the market, four years to find a site they liked, in terms of store size and location.

They considered many of the high-end shopping malls, which are inhabited by all the usual suspects of the fashion world, but in the end, they settled on Wan Chai, a neighborhood that is better known for its bars and nightlife than for high-end shopping. But that fits with Tommy Bahama’s neighborhood-bar-type image, the company’s executives said.

“We were in a hurry to come to Hong Kong, but it was important for us to come to Hong Kong in the right way,” Mr. Pillow said.

So acute is the space-cost situation that analysts have begun to warn that Hong Kong has become too expensive for its own good.

Executives at CBRE in Hong Kong warned last October that the space constraints meant the city’s standing as a key location in Asia was “under threat.” Long waiting lists for spots in schools and high housing costs add to the financial pain and are increasingly causing companies to think twice about deploying expatriate employees or expanding teams in the city.

“Hong Kong has been losing out to Singapore in the past few years because of that,” Lee Quane, regional director for ECA International, said by telephone.

Similarly, in the retail sector, the lack and cost of suitable space has meant that some companies have taken relatively long to come to Hong Kong, industry analysts and real estate experts say.

Gap and American Eagle Outfitters, for example, opened shops in Hong Kong only in 2011. Forever 21, another popular U.S. brand, opened a large store in the bustling shopping district of Causeway Bay early last year, and Abercrombie & Fitch’s flagship store, in the heart of Central, the financial district, opened last August.

The British brand Topshop, which is well established in other parts of Asia — it has eight shops each in Indonesia and Malaysia, six in Singapore and four in Japan — is opening its first store in Hong Kong this year, in May.

However, retail executives clearly believe that the expense of having a presence in Hong Kong is worth it.

After all, Hong Kong’s shopping population is vastly increased by the millions of tourists who flock to the city every month.

Last year, 48.6 million visitors came to Hong Kong, nearly three-quarters of them from mainland China, whose increasingly affluent consumers are eager to capitalize on the lower taxes in Hong Kong and greater certainty that what they are buying is the genuine article.

For retailers like Tommy Bahama, Louis Vuitton and Prada, Hong Kong is a necessary location, and a store in the city means visibility that extends well beyond the city, which is a special administrative region of China, into the vast mainland Chinese market.

“It’s a dog-eat-dog world out there,” said Rob Goldberg, senior vice-president for marketing at Tommy Bahama, referring to Hong Kong’s property and rental costs. “But if you can make it here, you’ll make it anywhere.”

Tommy Bahama executives said they were “very happy” with the performance of the Hong Kong store so far (The shop opened quietly two weeks ago but had its official ribbon-cutting event Wednesday.)

The company is looking for more locations in the city, as well as in mainland China.

Riva Hiranand contributed reporting.

Read More..

Well: Waiting for Alzheimer's to Begin

My gray matter might be waning. Then again, it might not be. But I swear that I can feel memories — as I’m making them — slide off a neuron and into a tangle of plaque. I steel myself for those moments to come when I won’t remember what just went into my head.

I’m not losing track of my car keys, which is pretty standard in aging minds. Nor have I ever forgotten to turn off the oven after use, common in menopausal women. I can always find my car in the parking lot, although lots of “normal” folk can’t.

Rather, I suddenly can’t remember the name of someone with whom I’ve worked for years. I cover by saying “sir” or “madam” like the Southerner I am, even though I live in Vermont and grown people here don’t use such terms. Better to think I’m quirky than losing my faculties. Sometimes I’ll send myself an e-mail to-do reminder and then, seconds later, find myself thrilled to see a new entry pop into my inbox. Oops, it’s from me. Worse yet, a massage therapist kicked me out of her practice for missing three appointments. I didn’t recall making any of them. There must another Nancy.

Am I losing track of me?

Equally worrisome are the memories increasingly coming to the fore. Magically, these random recollections manage to circumnavigate my imagined build-up of beta-amyloid en route to delivering vivid images of my father’s first steps down his path of forgetting. He was the same age I am now, which is 46.

“How old are you?” I recall him asking me back then. Some years later, he began calling me every Dec. 28 to say, “Happy birthday,” instead of on the correct date, Dec. 27. The 28th had been his grandmother’s birthday.

The chasms were small at first. Explainable. Dismissible. When he crossed the street without looking both ways, we chalked it up to his well-cultivated, absent-minded professor persona. But the chasms grew into sinkholes, and eventually quicksand. When we took him to get new pants one day, he kept trying on the same ones he wore to the store.

“I like these slacks,” he’d say, over and over again, as he repeatedly pulled his pair up and down.

My dad died of Alzheimer’s last April at age 73 — the same age at which his father succumbed to the same disease. My dad ended up choosing neurology as his profession after witnessing the very beginning of his own dad’s forgetting.

Decades later, grandfather’s atrophied brain found its way into a jar on my father’s office desk. Was it meant to be an ever-present reminder of Alzheimer’s effect? Or was it a crystal ball sent to warn of genetic fate? My father the doctor never said, nor did he ever mention, that it was his father’s gray matter floating in that pool of formaldehyde.

Using the jarred brain as a teaching tool, my dad showed my 8-year-old self the difference between frontal and temporal lobes. He also pointed out how brains with Alzheimer’s disease become smaller, and how wide grooves develop in the cerebral cortex. But only after his death — and my mother’s confession about whose brain occupied that jar — did I figure out that my father was quite literally demonstrating how this disease runs through our heads.

Has my forgetting begun?

I called my dad’s neurologist. To find out if I was in the earliest stages of Alzheimer’s, he would have to look for proteins in my blood or spinal fluid and employ expensive neuroimaging tests. If he found any indication of onset, the only option would be experimental trials.

But documented confirmation of a diseased brain would break my still hopeful heart. I’d walk around with the scarlet letter “A” etched on the inside of my forehead — obstructing how I view every situation instead of the intermittent clouding I currently experience.

“You’re still grieving your father,” the doctor said at the end of our call. “Sadness and depression affect the memory, too. Let’s wait and see.”

It certainly didn’t help matters that two people at my father’s funeral made some insensitive remarks.

“Nancy, you must be scared to death.”

“Is it hard knowing the same thing probably will happen to you?”

Maybe the real question is what to do when the forgetting begins. My dad started taking 70 supplements a day in hopes of saving his mind. He begged me to kill him if he wound up like his father. He retired from his practice and spent all day in a chair doing puzzles. He stopped making new memories in an all-out effort to preserve the ones he already had.

Maybe his approach wasn’t the answer.

Just before his death — his brain a fraction of its former self — my father managed to offer up a final lesson. I was visiting him in the memory-care center when he got a strange look on his face. I figured it was gas. But then his eyes lit up and a big grin overtook him, and he looked right at me and said, “Funny how things turn out.”

An unforgettable moment?

I can only hope.

---

Nancy Stearns Bercaw is a writer in Vermont. Her book, “Brain in a Jar: A Daughter’s Journey Through Her Father’s Memory,” will be published in April 2013 by Broadstone.

Read More..

Well: Waiting for Alzheimer's to Begin

My gray matter might be waning. Then again, it might not be. But I swear that I can feel memories — as I’m making them — slide off a neuron and into a tangle of plaque. I steel myself for those moments to come when I won’t remember what just went into my head.

I’m not losing track of my car keys, which is pretty standard in aging minds. Nor have I ever forgotten to turn off the oven after use, common in menopausal women. I can always find my car in the parking lot, although lots of “normal” folk can’t.

Rather, I suddenly can’t remember the name of someone with whom I’ve worked for years. I cover by saying “sir” or “madam” like the Southerner I am, even though I live in Vermont and grown people here don’t use such terms. Better to think I’m quirky than losing my faculties. Sometimes I’ll send myself an e-mail to-do reminder and then, seconds later, find myself thrilled to see a new entry pop into my inbox. Oops, it’s from me. Worse yet, a massage therapist kicked me out of her practice for missing three appointments. I didn’t recall making any of them. There must another Nancy.

Am I losing track of me?

Equally worrisome are the memories increasingly coming to the fore. Magically, these random recollections manage to circumnavigate my imagined build-up of beta-amyloid en route to delivering vivid images of my father’s first steps down his path of forgetting. He was the same age I am now, which is 46.

“How old are you?” I recall him asking me back then. Some years later, he began calling me every Dec. 28 to say, “Happy birthday,” instead of on the correct date, Dec. 27. The 28th had been his grandmother’s birthday.

The chasms were small at first. Explainable. Dismissible. When he crossed the street without looking both ways, we chalked it up to his well-cultivated, absent-minded professor persona. But the chasms grew into sinkholes, and eventually quicksand. When we took him to get new pants one day, he kept trying on the same ones he wore to the store.

“I like these slacks,” he’d say, over and over again, as he repeatedly pulled his pair up and down.

My dad died of Alzheimer’s last April at age 73 — the same age at which his father succumbed to the same disease. My dad ended up choosing neurology as his profession after witnessing the very beginning of his own dad’s forgetting.

Decades later, grandfather’s atrophied brain found its way into a jar on my father’s office desk. Was it meant to be an ever-present reminder of Alzheimer’s effect? Or was it a crystal ball sent to warn of genetic fate? My father the doctor never said, nor did he ever mention, that it was his father’s gray matter floating in that pool of formaldehyde.

Using the jarred brain as a teaching tool, my dad showed my 8-year-old self the difference between frontal and temporal lobes. He also pointed out how brains with Alzheimer’s disease become smaller, and how wide grooves develop in the cerebral cortex. But only after his death — and my mother’s confession about whose brain occupied that jar — did I figure out that my father was quite literally demonstrating how this disease runs through our heads.

Has my forgetting begun?

I called my dad’s neurologist. To find out if I was in the earliest stages of Alzheimer’s, he would have to look for proteins in my blood or spinal fluid and employ expensive neuroimaging tests. If he found any indication of onset, the only option would be experimental trials.

But documented confirmation of a diseased brain would break my still hopeful heart. I’d walk around with the scarlet letter “A” etched on the inside of my forehead — obstructing how I view every situation instead of the intermittent clouding I currently experience.

“You’re still grieving your father,” the doctor said at the end of our call. “Sadness and depression affect the memory, too. Let’s wait and see.”

It certainly didn’t help matters that two people at my father’s funeral made some insensitive remarks.

“Nancy, you must be scared to death.”

“Is it hard knowing the same thing probably will happen to you?”

Maybe the real question is what to do when the forgetting begins. My dad started taking 70 supplements a day in hopes of saving his mind. He begged me to kill him if he wound up like his father. He retired from his practice and spent all day in a chair doing puzzles. He stopped making new memories in an all-out effort to preserve the ones he already had.

Maybe his approach wasn’t the answer.

Just before his death — his brain a fraction of its former self — my father managed to offer up a final lesson. I was visiting him in the memory-care center when he got a strange look on his face. I figured it was gas. But then his eyes lit up and a big grin overtook him, and he looked right at me and said, “Funny how things turn out.”

An unforgettable moment?

I can only hope.

---

Nancy Stearns Bercaw is a writer in Vermont. Her book, “Brain in a Jar: A Daughter’s Journey Through Her Father’s Memory,” will be published in April 2013 by Broadstone.

Read More..

Chinese Hackers Infiltrate New York Times Computers

SAN FRANCISCO — For the last four months, Chinese hackers have persistently attacked The New York Times, infiltrating its computer systems and getting passwords for its reporters and other employees.

The New York Times published an article in October about the wealth of the family of China's prime minister, Wen Jiabao, in both English and Chinese.

After surreptitiously tracking the intruders to study their movements and help erect better defenses to block them, The Times and computer security experts have expelled the attackers and kept them from breaking back in.

The timing of the attacks coincided with the reporting for a Times investigation, published online on Oct. 25, that found that the relatives of Wen Jiabao, China’s prime minister, had accumulated a fortune worth several billion dollars through business dealings.

Security experts hired by The Times to detect and block the computer attacks gathered digital evidence that Chinese hackers, using methods that some consultants have associated with the Chinese military in the past, breached The Times’s network. They broke into the e-mail accounts of its Shanghai bureau chief, David Barboza, who wrote the reports on Mr. Wen’s relatives, and Jim Yardley, The Times’s South Asia bureau chief in India, who previously worked as bureau chief in Beijing.

“Computer security experts found no evidence that sensitive e-mails or files from the reporting of our articles about the Wen family were accessed, downloaded or copied,” said Jill Abramson, executive editor of The Times.

The hackers tried to cloak the source of the attacks on The Times by first penetrating computers at United States universities and routing the attacks through them, said computer security experts at Mandiant, the company hired by The Times. This matches the subterfuge used in many other attacks that Mandiant has tracked to China.

The attackers first installed malware — malicious software — that enabled them to gain entry to any computer on The Times’s network. The malware was identified by computer security experts as a specific strain associated with computer attacks originating in China. More evidence of the source, experts said, is that the attacks started from the same university computers used by the Chinese military to attack United States military contractors in the past.

Security experts found evidence that the hackers stole the corporate passwords for every Times employee and used those to gain access to the personal computers of 53 employees, most of them outside The Times’s newsroom. Experts found no evidence that the intruders used the passwords to seek information that was not related to the reporting on the Wen family.

No customer data was stolen from The Times, security experts said.

Asked about evidence that indicated the hacking originated in China, and possibly with the military, China’s Ministry of National Defense said, “Chinese laws prohibit any action including hacking that damages Internet security.” It added that “to accuse the Chinese military of launching cyberattacks without solid proof is unprofessional and baseless.”

The attacks appear to be part of a broader computer espionage campaign against American news media companies that have reported on Chinese leaders and corporations.

Last year, Bloomberg News was targeted by Chinese hackers, and some employees’ computers were infected, according to a person with knowledge of the company’s internal investigation, after Bloomberg published an article on June 29 about the wealth accumulated by relatives of Xi Jinping, China’s vice president at the time. Mr. Xi became general secretary of the Communist Party in November and is expected to become president in March. Ty Trippet, a spokesman for Bloomberg, confirmed that hackers had made attempts but said that “no computer systems or computers were compromised.”

Signs of a Campaign

The mounting number of attacks that have been traced back to China suggest that hackers there are behind a far-reaching spying campaign aimed at an expanding set of targets including corporations, government agencies, activist groups and media organizations inside the United States. The intelligence-gathering campaign, foreign policy experts and computer security researchers say, is as much about trying to control China’s public image, domestically and abroad, as it is about stealing trade secrets.

This article has been revised to reflect the following correction:

Correction: January 31, 2013

An earlier version of this article misstated the year that the United States and Israel were said to have started a cyber attack that caused damage at Iran’s main nuclear enrichment plant, and the article misstated the specific type of attack. The attack was a computer worm, not a virus, and it started around 2008, not 2012.

Read More..

Chinese Court Issues Severe Sentences in Tibetan Self-Immolations

BEIJING – A court in southwest China gave severe prison sentences to two Tibetans who court officials said were guilty of urging eight people to self-immolate, three of whom had died, according to a report on Thursday by Xinhua, the state news agency.

One Tibetan, Lorang Konchok, 40, was sentenced to death with a two-year reprieve, which often means the convict will eventually get a lifetime prison sentence. His nephew, Lorang Tsering, 31, was sentenced to 10 years in prison. The Xinhua report said the older Tibetan was also being stripped of his “political rights” for life, while the other man would have his stripped for three years.

The sentencing took place in Aba Prefecture of Sichuan Province, an area at the heart of the recent wave of self-immolations by Tibetans. Nearly 100 Tibetans have set themselves on fire since 2009 to protest Chinese rule in Tibetan regions, which lie in western China but which many Tibetans say should be granted independence or true autonomy.

At least 81 died following their acts, according to International Campaign for Tibet, an advocacy group based in London. Few other nations have been confronted by such a large wave of self-immolations as political protest.

Chinese officials have sentenced Tibetans before to prison sentences for what courts have said were their roles in promoting self-immolations, but the most recent sentences were among the harshest. There now appears to be a concentrated effort to rein in the self-immolations, which gathered pace in late 2012, by criminalizing both the act itself and making it a crime to help or encourage people to commit it.

On Dec. 3, a newspaper in a Tibetan area of Gansu Province published an editorial that said China’s supreme court, prosecution agency and Ministry of Public Security had issued “guidelines” that said “the act of self-immolation by Tibetans is a crime.” The guidelines said that assisting or encouraging self-immolations was considered intentional homicide, and that those who committed self-immolation were also criminals and punishable by law if they “have caused severe damage,” according to the newspaper.

The Xinhua report on Thursay said the two monks “incited and coerced” eight people to self-immolate; three committed the act and died last year, and the others “willfully” abandoned their plans after the police “intervened.”

The Chinese government has blamed the Dalai Lama, the exiled spiritual leader of the Tibetans, for encouraging the self-immolations, even though the Dalai Lama has not made any explicit statements in support of the acts. Tibetans have said in interviews that the self-immolations are genuine self-expressions of political anger and frustration at Chinese oppression and are not the result of plots hatched by senior monks or other Tibetan leaders.

The two monks sentenced in Aba, which Tibetans called Ngaba, were detained in August 2012, according to a report last December by Xinhua. Both monks are from Kirti Monastery, which was a site central to the earliest self-immolations.

That Xinhua report said Lorang Konchock became involved in promoting self-immolations after being contacted by a “Tibetan independence organization” tied to the Dalai Lama. Xinhua said the contact took place after February 2009, when a young monk from Kirti named Tapey set fire to himself outside the monastery. Tapey did not die, but the second Tibetan to commit the act, Phuntsog, also from Kirti, killed himself in March 2011.

After Phuntsog’s death, a court sentenced three monks to long prison sentences, in what were the first legal punishments handed out in relation to the self-immolations. Two monks were found guilty of involvement in Phuntsog’s self-immolation and one, an uncle of Phuntsog’s, was found guilty of refusing to turn his body over to the police at the time.

The Tibetans who have self-immolated have come from a variety of backgrounds. They have included men and women, young and old, clergy and laypeople. So far this year, at least three Tibetans have self-immolated, all men. The second one, Tsering, who killed himself in Ngaba Prefecture on Jan. 18, was survived by a wife and two children.

Read More..

DealBook: McClendon, Under Fire, to Retire at Chesapeake Energy

9:15 p.m. | Updated

HOUSTON — Aubrey K. McClendon, Chesapeake Energy’s daring and innovative co-founder, will step down as chief executive on April 1 after months of scrutiny over how he mixed his personal finances and those of the corporation.

Mr. McClendon’s retirement, announced by the company on Tuesday, comes as the national boom in natural gas drilling, which he helped set in motion, is fading, diminishing Chesapeake’s prospects.

Over the past decade, Mr. McClendon aggressively explored for gas and outbid competitors in one shale field after another. Not only did his small Oklahoma company become the nation’s second biggest gas producer after Exxon Mobil, but Mr. McClendon also assembled a trophy room of assets that included a piece of the Oklahoma Thunder basketball team, a winery and a $12 million collection of antique maps.

In the end, a downturn in natural gas prices, caused in large part by the industry’s exuberant drilling, dealt a huge blow to the company’s balance sheet and to Mr. McClendon’s personal fortune.

Mr. McClendon borrowed heavily — more than $800 million — to finance his participation in an unusual compensation plan that allowed him to invest alongside his company in every well it drilled, sharing both in profits and expenses. Last year, the Securities and Exchange Commission opened an inquiry into Mr. McClendon’s finances, and a shareholder rebellion led to his removal as chairman in June and a reshuffling of the board.

Chesapeake, which borrowed extensively to finance its expansion spree, has been forced to unload $12 billion in valuable oil and gas fields over the last year as it tried to pay off its crushing debts. Last September, the company still had $19 billion in debt, according to Philip Weiss, a senior oil company analyst at Argus.

“He really built this company from nothing and made it into something meaningful,” Mr. Weiss said, “but in the end, I think it’s the right thing for the company and its shareholders” for him to leave. “The company needs a financial guy to bring spending under control.”

Investors appeared to agree, sending Chesapeake’s shares up more than 10 percent in after-hours trading.

The roots of Mr. McClendon’s sudden departure lay partly in a shake-up of Chesapeake’s board last summer, in which the company replaced more than half of its directors. Four of those board members were nominated by two major investors, Southeastern Asset Management and the investor Carl C. Icahn; an independent chairman was also appointed.

In recent weeks, Chesapeake’s board concluded that the company’s stock was suffering from Mr. McClendon’s presence, according to a person briefed on the matter. Shares in the company have fallen 14 percent over the last 12 months.

“Aubrey and the board have agreed that the time has come for the company to select a new leader,” Chesapeake’s chairman, Archie W. Dunham, said in a statement.

The company said the board’s review of Mr. McClendon’s financial dealings “to date has not revealed improper conduct.”

Mr. McClendon, 53, agreed to retire from the company on April 1 and will continue serving as chief executive until a successor is appointed.

“I am extremely proud of what we have built over the last quarter of a century,” he said in a statement. “While I have certain philosophical differences with the new board, I look forward to working collaboratively with the company and the board to provide a smooth transition.”

When gas prices were still high four years ago, Chesapeake’s stock price soared, and Mr. McClendon had a net worth of more than $1 billion. He bought homes in Hawaii, Colorado and Bermuda.

But as the price of gas fell by more than two-thirds over the last few years, Chesapeake lost more than two-thirds of its value as well.

Pressure on Mr. McClendon began last April after news reports revealed that he had obtained personal loans using minority stakes in company-owned wells as collateral. Reuters reported that he had personally borrowed more than $1 billion from EIG Global Energy Partners, a firm that also invested in Chesapeake, raising questions over conflict of interest.

Mr. McClendon was a larger-than-life figure in an industry filled with them. His dealings stretched across the globe as he negotiated partnerships with the Norwegian oil company Statoil, China’s CNOOC and France’s Total, shepherding the foreign oil giants into joint ventures in shale fields around the country.

“It’s an end of an era,” said Fadel Gheit, a senior oil analyst at Oppenheimer. “He was a maverick in the true sense of the word, and he represented both the good and the bad in corporate America. He was the risk-taker, a true visionary, but obviously there were excesses.”

Mr. Icahn, now one of the company’s largest shareholders, was generous in his praise.

“Aubrey has every right to be proud of the company he has built, the world-class team of people at Chesapeake and the collection of assets he has assembled, which in my opinion are the best portfolio of energy assets in the country,” he said.

Read More..

The New Old Age Blog: For Some Caregivers, the Trauma Lingers

Recently, I spoke at length to a physician who seems to have suffered a form of post-traumatic stress after her mother’s final illness.

There is little research on this topic, which suggests that it is overlooked or discounted. But several experts acknowledge that psychological trauma of this sort does exist.

Barry Jacobs, a clinical psychologist and author of “The Emotional Survival Guide for Caregivers” (The Guilford Press, 2006), often sees caregivers who struggle with intrusive thoughts and memories months and even years after a loved one has died.

“Many people find themselves unable to stop thinking about the suffering they witnessed, which is so powerfully seared into their brains that they cannot push it away,” Dr. Jacobs said.

Flashbacks are a symptom of post-traumatic stress disorder, along with feelings of numbness, anxiety, guilt, dread, depression, irritability, apathy, tension and more. Though one symptom or several do not prove that such a condition exists — that’s up to an expert to determine — these issues are a “very common problem for caregivers,” Dr. Jacobs said.

Dolores Gallagher-Thompson, a professor of psychiatry at the Stanford University School of Medicine who treats many caregivers, said there was little evidence that caregiving on its own caused post-traumatic stress. But if someone is vulnerable for another reason — perhaps a tragedy experienced earlier in life — this kind of response might be activated.

“When something happens that the individual perceives and reacts to as a tremendous stressor, that can intensify and bring back to the forefront of consciousness memories that were traumatic,” Dr. Gallagher-Thompson said. “It’s more an exacerbation of an already existing vulnerability.”

Dr. Judy Stone, the physician who was willing to share her mother’s end-of-life experience and her powerful reaction to it, fits that definition in spades.

Both of Dr. Stone’s Hungarian parents were Holocaust survivors: her mother, Magdus, called Maggie by family and friends, had been sent to Auschwitz; her father, Miki, to Dachau. The two married before World War II, after Maggie left her small village, moved to the city and became a corset maker in Miki’s shop.

Death cast a long shadow over the family. During the war, Maggie’s first baby died of exposure while she was confined for a time to the Debrecen ghetto. After the war, the family moved to the United States, where they worked to recover a sense of normalcy and Miki worked as a maker of orthopedic appliances. Then he died suddenly of a heart attack at the age of 50.

“None of us recovered from that,” said Dr. Stone, who traces her interest in medicine and her lifelong interest in fighting for social justice to her parents and trips she made with her father to visit his clients.

Decades passed, as Dr. Stone operated an infectious disease practice in Cumberland, Md., and raised her own family.

In her old age, Maggie, who her daughter describes as “tough, stubborn, strong,” developed macular degeneration, bad arthritis and emphysema — a result of a smoking habit she started just after the war and never gave up. Still, she lived alone, accepting no help until she reached the age of 92.

Then, in late 2007, respiratory failure set in, causing the old woman to be admitted to the hospital, then rehabilitation, then assisted living, then another hospital. Maggie had made her preferences absolutely clear to her daughter, who had medical power of attorney: doctors were to pursue every intervention needed to keep her alive.

Yet one doctor sent her from a rehabilitation center to the hospital during respiratory crisis with instructions that she was not to be resuscitated — despite her express wishes. Fortunately, the hospital called Dr. Stone and the order was reversed.

“You have to be ever vigilant,” Dr. Stone said when asked what advice she would give to families. “You can’t assume that anything, be it a D.N.R. or allergies or medication orders, have been communicated correctly.”

Other mistakes were made in various settings: There were times that Dr. Stone’s mother had not received necessary oxygen, was without an inhaler she needed for respiratory distress, was denied water or ice chips to moisten her mouth, or received an antibiotic that can cause hallucinations in older people, despite Dr. Stone’s request that this not happen. “People didn’t listen,” she said. “The lack of communication was horrible.”

It was a daily fight to protect her mother and make sure she got what she needed, and “frankly, if I hadn’t been a doctor, I think I would have been thrown out of there,” she said.

In the end, when it became clear that death was inevitable, Maggie finally agreed to be taken off a respirator. But rather than immediately arrange for palliative measures, doctors arranged for a brief trial to see if she could breathe on her own.

“They didn’t give her enough morphine to suppress her agony,” Dr. Stone recalled.

Five years have passed since her mother died, and “I still have nightmares about her being tortured,” the doctor said. “I’ve never been able to overcome the feeling that I failed her — I let her down. It wasn’t her dying that is so upsetting, it was how she died and the unnecessary suffering at the end.”

Dr. Stone had specialized in treating infectious diseases and often saw patients who were critically ill in intensive care. But after her mother died, “I just could not do it,” she said. “I couldn’t see people die. I couldn’t step foot in the I.C.U. for a long, long time.”

Today, she works part time seeing patients with infectious diseases on an as-needed basis in various places — a job she calls “rent a doc” — and blogs for Scientific American about medical ethics. “I tilt at windmills,” she said, describing her current occupations.

Most important to her is trying to change problems in the health system that failed her mother and failed her as well. But Dr. Stone has a sense of despair about that: it is too big an issue, too hard to tackle.

I’m grateful to her for sharing her story so that other caregivers who may have experienced overwhelming emotional reactions that feel like post-traumatic stress realize they are not alone.

It is important to note that both Dr. Jacobs and Dr. Gallagher-Thompson report successfully treating caregivers beset by overwhelming stress. It is hard work and it takes time, but they say recovery is possible. I’ll give a sense of treatment options they and others recommend in another post.

Read More..

The New Old Age Blog: For Some Caregivers, the Trauma Lingers

Recently, I spoke at length to a physician who seems to have suffered a form of post-traumatic stress after her mother’s final illness.

There is little research on this topic, which suggests that it is overlooked or discounted. But several experts acknowledge that psychological trauma of this sort does exist.

Barry Jacobs, a clinical psychologist and author of “The Emotional Survival Guide for Caregivers” (The Guilford Press, 2006), often sees caregivers who struggle with intrusive thoughts and memories months and even years after a loved one has died.

“Many people find themselves unable to stop thinking about the suffering they witnessed, which is so powerfully seared into their brains that they cannot push it away,” Dr. Jacobs said.

Flashbacks are a symptom of post-traumatic stress disorder, along with feelings of numbness, anxiety, guilt, dread, depression, irritability, apathy, tension and more. Though one symptom or several do not prove that such a condition exists — that’s up to an expert to determine — these issues are a “very common problem for caregivers,” Dr. Jacobs said.

Dolores Gallagher-Thompson, a professor of psychiatry at the Stanford University School of Medicine who treats many caregivers, said there was little evidence that caregiving on its own caused post-traumatic stress. But if someone is vulnerable for another reason — perhaps a tragedy experienced earlier in life — this kind of response might be activated.

“When something happens that the individual perceives and reacts to as a tremendous stressor, that can intensify and bring back to the forefront of consciousness memories that were traumatic,” Dr. Gallagher-Thompson said. “It’s more an exacerbation of an already existing vulnerability.”

Dr. Judy Stone, the physician who was willing to share her mother’s end-of-life experience and her powerful reaction to it, fits that definition in spades.

Both of Dr. Stone’s Hungarian parents were Holocaust survivors: her mother, Magdus, called Maggie by family and friends, had been sent to Auschwitz; her father, Miki, to Dachau. The two married before World War II, after Maggie left her small village, moved to the city and became a corset maker in Miki’s shop.

Death cast a long shadow over the family. During the war, Maggie’s first baby died of exposure while she was confined for a time to the Debrecen ghetto. After the war, the family moved to the United States, where they worked to recover a sense of normalcy and Miki worked as a maker of orthopedic appliances. Then he died suddenly of a heart attack at the age of 50.

“None of us recovered from that,” said Dr. Stone, who traces her interest in medicine and her lifelong interest in fighting for social justice to her parents and trips she made with her father to visit his clients.

Decades passed, as Dr. Stone operated an infectious disease practice in Cumberland, Md., and raised her own family.

In her old age, Maggie, who her daughter describes as “tough, stubborn, strong,” developed macular degeneration, bad arthritis and emphysema — a result of a smoking habit she started just after the war and never gave up. Still, she lived alone, accepting no help until she reached the age of 92.

Then, in late 2007, respiratory failure set in, causing the old woman to be admitted to the hospital, then rehabilitation, then assisted living, then another hospital. Maggie had made her preferences absolutely clear to her daughter, who had medical power of attorney: doctors were to pursue every intervention needed to keep her alive.

Yet one doctor sent her from a rehabilitation center to the hospital during respiratory crisis with instructions that she was not to be resuscitated — despite her express wishes. Fortunately, the hospital called Dr. Stone and the order was reversed.

“You have to be ever vigilant,” Dr. Stone said when asked what advice she would give to families. “You can’t assume that anything, be it a D.N.R. or allergies or medication orders, have been communicated correctly.”

Other mistakes were made in various settings: There were times that Dr. Stone’s mother had not received necessary oxygen, was without an inhaler she needed for respiratory distress, was denied water or ice chips to moisten her mouth, or received an antibiotic that can cause hallucinations in older people, despite Dr. Stone’s request that this not happen. “People didn’t listen,” she said. “The lack of communication was horrible.”

It was a daily fight to protect her mother and make sure she got what she needed, and “frankly, if I hadn’t been a doctor, I think I would have been thrown out of there,” she said.

In the end, when it became clear that death was inevitable, Maggie finally agreed to be taken off a respirator. But rather than immediately arrange for palliative measures, doctors arranged for a brief trial to see if she could breathe on her own.

“They didn’t give her enough morphine to suppress her agony,” Dr. Stone recalled.

Five years have passed since her mother died, and “I still have nightmares about her being tortured,” the doctor said. “I’ve never been able to overcome the feeling that I failed her — I let her down. It wasn’t her dying that is so upsetting, it was how she died and the unnecessary suffering at the end.”

Dr. Stone had specialized in treating infectious diseases and often saw patients who were critically ill in intensive care. But after her mother died, “I just could not do it,” she said. “I couldn’t see people die. I couldn’t step foot in the I.C.U. for a long, long time.”

Today, she works part time seeing patients with infectious diseases on an as-needed basis in various places — a job she calls “rent a doc” — and blogs for Scientific American about medical ethics. “I tilt at windmills,” she said, describing her current occupations.

Most important to her is trying to change problems in the health system that failed her mother and failed her as well. But Dr. Stone has a sense of despair about that: it is too big an issue, too hard to tackle.

I’m grateful to her for sharing her story so that other caregivers who may have experienced overwhelming emotional reactions that feel like post-traumatic stress realize they are not alone.

It is important to note that both Dr. Jacobs and Dr. Gallagher-Thompson report successfully treating caregivers beset by overwhelming stress. It is hard work and it takes time, but they say recovery is possible. I’ll give a sense of treatment options they and others recommend in another post.

Read More..

BlackBerry 10’s Debut Is a Critical Day for Research in Motion

OTTAWA — Research in Motion’s introduction on Wednesday of a new BlackBerry phone will be the most important event in the company’s history since 1996, when its founders showed investors a small block of wood and promised that a wireless e-mail device shaped like that would change business forever.

Now with just 4.6 percent of the global market for smartphones in 2012, according to IDC, RIM long ago exchanged dominance for survival mode. On Wednesday, the company will introduce a new line of smartphones called the BlackBerry 10 and an operating system of the same name that Thorsten Heins, the president and chief executive of RIM, says will restore the company to glory.

But Frank Mersch, who became one of RIM’s earliest investors after seeing the block of wood, is far less excited by what he sees this time around.

“You’re in a very, very competitive market and you’re not the leader,” Mr. Mersch, now the chairman and a vice president at Front Street Capital in Toronto, said of RIM. “You have to ask: ‘At the end of the day are we really going to win?’ I personally think the jury’s out on that.”

The main elements of the new phones and their operating system are already well known. Mr. Heins and other executives at RIM have been demonstrating the units for months to a variety of audiences. App developers received prototype versions as far back as last spring.

While analysts and app developers may be divided about the future of RIM, there is a consensus that BlackBerry 10, which arrives more than year behind schedule, was worth the wait.

Initially RIM will release two variations of the BlackBerry 10, one a touch-screen model that resembles many other phones now on the market. The other model is a hybrid with a keyboard similar to those now found on current BlackBerrys as well as a small touch screen.

The real revolution, though, may be in the software that manages a person’s business and personal information. It is clearly designed with an eye toward retaining and, more important, luring back, corporate users.

Corporate and government information technology managers will be able to segregate business-related apps and data on BlackBerry 10 handsets from users’ personal material through a system known as BlackBerry Balance. It will enable an I.T. manager to, among other things, remotely wipe corporate data from fired employees’ phones while leaving the newly jobless workers’ personal photos, e-mails, music and apps untouched. The system can also block users from forwarding or copying information from the work side of the phone.

Messages generated by e-mail, Twitter, Facebook, instant messaging and LinkedIn accounts are automatically consolidated into a single in-box that RIM calls BlackBerry Hub.

Charles Golvin, an analyst with Forrester Research, called the new phones “beautiful” and described the operating system as “a giant leap forward” from RIM’s current operating system. Ray Sharma, who followed RIM’s glory years as a financial analyst but who now runs XMG Studio, a mobile games developer in Toronto, has been similarly impressed.

But both men are among many analysts who question the ability of BlackBerry 10, whatever its merits, to revive RIM’s fallen fortunes.

“If it’s good, it will help inspire the upgrade cycle,” Mr. Sharma said. “But it has to be great in order to inspire touch-screen users to come back. If it’s good, not great, I will be concerned.”

Mr. Golvin was more blunt. “They’ll need to prove themselves in the face of a simultaneous onslaught of marketing from Microsoft, not to mention the continued push from Apple plus Google and its Android partners,” he wrote. “This is a gargantuan challenge for a company of RIM’s size.”

In the year since he took over from the founders, Jim Balsillie and Mike Lazaridis, Mr. Heins has certainly remade RIM. He cut 5,000 jobs in a program to reduce operating costs by about $1 billion a year. Along the way, he also replaced RIM’s senior management and straightened out its balance sheet. While unprofitable, RIM remains debt-free and holds $2.9 billion in cash.

With BlackBerry 10, RIM not only started over with its operating system, it also rebuilt the company through acquisitions. Its core operating system comes from QNX Software Systems, the design of the user interface is largely the work of the Astonishing Tribe in Sweden while other main components, like the touch-screen technology, came from smaller companies that are now part of RIM.

Integrating all of those acquisitions, analysts and former RIM employees say, added to the delays that plagued BlackBerry 10.

Now that the new phones are finally here, Mr. Heins is counting on RIM’s remaining base of 79 million users globally to eagerly upgrade. But where those customers reside may be as important in their numbers in determining the success of that plan.

In the United States, which leads the world in setting smartphone trends, about 11 million BlackBerry users switched to other phones between 2009 and the middle of last year, according to an analysis by Horace Dediu on Asymco, a wireless industry blog he founded.

Until the final months of 2012, RIM continued to increase its subscriber base through sales of low-cost handsets to less developed countries like Nigeria and Indonesia. Although BlackBerry 10 will be made available worldwide, the initial phones will be too expensive for a majority of BlackBerry fans in those regions.

RIM may also have confused its loyalists, particularly in North America and Europe, in the run-up to the BlackBerry 10 debut. Many of those users stuck with BlackBerrys because of their physical keyboards. But public demonstrations for BlackBerry 10 were centered on the touch-screen-only version and its virtual keyboard.

While some corporations have remained loyal to BlackBerry, RIM not only has to sell them on the new handsets, it also must persuade them to upgrade server software to accommodate the new operating system, a costly and time-consuming process. Companies whose employees continue to use older BlackBerrys will have to run two separate BlackBerry servers.

Mr. Heins’s pitch to those corporations is that the BlackBerry 10 server software will also allow them to manage and control data on employees’ Android phones and iPhones. But any corporation or organization that allows those phones to connect with its systems long ago installed mobile device management software from other companies, including Good Technology and SAP. RIM is likely to find that the competition in device management software is as severe as it is in the handset business.

This article has been revised to reflect the following correction:

Correction: January 30, 2013

An earlier version of this story incorrectly stated that Frank Mersh is the chairman and a vice president at First Street Capital in Toronto. Mr. Mersh is the chairman and a vice president at Front Street Capital in Toronto.

Read More..