A Google-a-Day Puzzle for Jan. 19











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @geekdads on Twitter.



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John Powers, author who wrote about growing up Catholic, dies






(Reuters) – John Powers, a U.S. author and motivational speaker who wrote about his experiences growing up Catholic in Chicago including the novel “Do Black Patent Leather Shoes Really Reflect Up?” has died, his family said on Thursday.


Powers, 67, died late Wednesday of natural causes at his home in Lake Geneva, Wisconsin, his daughter Jacey Powers said.






A product of a working-class neighborhood, Powers wrote what he called humorous social portraits in columns to novels, a musical based on “Black Patent Leather Shoes” and more recently wrote and performed one-man shows.


“He cherished every moment and lived with tremendous passion and motivated others to do the same,” Jacey Powers said.


Powers lived the last 25 years in Lake Geneva, spending almost all of his time writing on the front porch, she said.


“He had just finished rewriting his one-man show and wanted to put it up,” Jacey Powers said. “(He) was always looking for new ways to reinvent himself and to find the next challenge and to live life better.”


A self-described “horrible” student at a Catholic high school – his motivational speaking website says he graduated in the bottom 3 percent of his class – he liked to say he was the only student in school history to fail music appreciation.


Powers went on to earn a bachelor’s degree from Loyola University Chicago, and a master’s and doctorate from Northwestern University and became a college professor himself for six years.


Other books by Powers include “The Last Catholic in America” and “The Unoriginal Sinner and the Ice-Cream God.”


Visitation and services are planned for Sunday at The Chapel on the Hill in Lake Geneva.


Powers is survived by his wife, JaNelle Powers, and daughters Jacey Powers and Joy Powers.


(Reporting by David Bailey in Minneapolis; Editing by Lisa Shumaker)


Celebrity News Headlines – Yahoo! News





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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control



Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”


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DealBook: Despite Improving Profits, Morgan Stanley's Path Is Uncertain

8:40 p.m. | Updated

Morgan Stanley has taken aggressive action to bolster profit. Over the last year, the Wall Street bank has cut thousands of employees, sold costly assets and retooled major businesses.

Those efforts worked. In the fourth quarter, Morgan Stanley reported earnings of $481 million, in contrast to a loss of $275 million in 2011. Profit was equally strong for the year.

But the path to future growth is less clear. While the financial firm can find other ways to cut costs, its core operations face significant challenges, from both internal and external forces. Reflecting those issues, revenue was flat last year, excluding charges related to its debt.

“They are doing everything they can to boost returns,” said Glenn Schorr, an analyst at the Japanese bank Nomura. “But given the environment and the state of their franchise, they can only do so much.”

Investors are assessing the progress versus the prospects.

After Morgan Stanley beat analysts’ expectations, the bank’s shares increased nearly 8 percent, to close at $22.38 on Friday. Morgan Stanley’s stock is up nearly 50 percent since early 2012.

“The company has been steadily chipping away at areas of investor concern, and has shown evidence of that progress,” Roger Freeman, a Barclays analyst, wrote in a note to investors.

Still, investors don’t value the investment bank as highly as some of its peers.

Morgan Stanley is trading at approximately 70 percent of its book value, a crucial financial measure that refers to the liquidation value of a company’s assets if it were forced to sell everything. Goldman, in contrast, is trading at book value.

More than four years after the financial crisis, Morgan Stanley has emerged as a much stronger, albeit smaller, bank.

After getting badly bruised during the crisis, Morgan Stanley, under the leadership of James P. Gorman, the chief executive, has moved to remake itself. He has diversified operations, emphasizing less risky businesses like wealth management.

That group was a particular bright spot. In the latest quarter, wealth management, with its 16,780 financial advisers, posted decent revenue growth. Pretax profit margin rose to 17 percent, up from 7 percent a year ago. That trumped the firm’s internal goals of 15 percent.

Investment banking, too, showed signs of strength. The group posted revenue of $1.23 billion in the fourth quarter, up 26 percent from the previous year.

The bank has also cut expenses significantly to help drive profitability. In 2012, Morgan Stanley reduced its head count by 7 percent, to 57,061 employees. It laid off 1,600 people this month.

The firm has also been bringing its pay levels down modestly. The firm’s compensation ratio, excluding certain charges, came in at roughly 51 percent, down from 57 percent a year ago.

Such efforts will most likely continue. On Friday, the bank said it might cut expenses by as much as $1.6 billion over the next two years.

Mr. Gorman called this quarter “pivotal,” on Friday. “I am confident we are on the path to increasing shareholder value that will be evident regardless of the macro environment,” he said in a statement.

Even so, the latest results underscored the growing gap between the bank and its rivals.

Revenue was flat for the quarter at Morgan Stanley, while it increased by 19 percent at Goldman Sachs during the same period. Excluding charges related to its debt, Morgan Stanley’s return on equity, a measure of profitability, was 5 percent. That compares with 10.7 percent at Goldman. To simply cover its debt expenses and other capital costs, Morgan Stanley needs to achieve a return on equity closer to 10 percent.

The firm’s problem child is the fixed income department.

Fourth-quarter revenue from fixed income sales and trading, headed by Ken deRegt, was $811 million, excluding the charges related to the firm’s debt. This was well below analysts’ forecasts. The bank was hurt by poor results in commodities trading, Mr. Gorman said in an interview on CNBC. He said it was a “terrible quarter,” citing factors like Hurricane Sandy, adding that it was one of the worst for the commodities business since 1995.

Despite its successes, Morgan Stanley faces a tough road.

The bank, which has had its credit rating cut deeper than its rivals, is also adjusting to a new regulatory environment. It now has to put up more capital against its operations, forcing the bank to leave certain businesses, reducing profitability.

Morgan Stanley is also trying to build market share in less-capital-intensive businesses like interest rates trading. But it is a highly competitive area, with lower margins.

“They have made some clear progress, but still have their work cut out for them in fixed income,” said Mr. Schorr of Nomura.

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Algeria raid puts a lawless region in the spotlight









CAIRO — The offensive by Algerian soldiers to free hostages at a natural gas complex has refocused world attention on the dangers of a lawless desert region bristling with gunrunners, smugglers and a virulent strain of Islamic ideology.


Coming days after French airstrikes on Islamist militants in neighboring Mali, the raid Thursday killed or wounded many militants and an unspecified number of Western and Algerian hostages, the Algerian government said. Officials in Algiers, the capital, said late in the evening that they had wrapped up the assault on the compound near the Algerian-Libyan border deep in the Sahara desert.


"The operation resulted in the neutralization of a large number of terrorists and the freeing of a considerable number of hostages," Communications Minister Mohamed Said Belaid told state-run media. "Unfortunately we deplore also the death of some.... We do not have final numbers."





The Algerian news agency said 45 hostages, including Americans, escaped the site. But later Algerian media reports indicated that only four to six foreign hostages were freed and that there were a number of "victims."


A Mauritanian news organization quoting a militant spokesman suggested that gunfire from Algerian military helicopters struck two vehicles attempting to flee the compound, killing 35 foreigners and 15 kidnappers, including the militant group's commander. The differing accounts were impossible to confirm or reconcile and epitomized a chaotic day that appeared to raise questions from Western leaders over the operation's planning.


In addition to as many as seven Americans, captives included Algerians, Britons, Japanese, Norwegians and other foreigners.


The army raid marked a surprising twist in a drama that had raised fears of a long siege and highlighted the revived Islamist extremism in the region.


To the west of Algeria lies Mali, where Islamist rebels have intensified their fight in recent days to overthrow the government, prompting French military action backed by American logistical support. To the east lie Tunisia and Libya, where revolutions beginning in 2010 overthrew President Zine el Abidine ben Ali in Tunis and Moammar Kadafi in Tripoli.


Since then, militant and radical Islamist groups, including Algeria's Al Qaeda in the Islamic Maghreb, have become more emboldened amid the political upheaval of new governments. Western countries have grown increasingly concerned that North Africa could become a seedbed for international terrorism.


The hostage drama unfolded in a gas field known as In Amenas, close to the border with Libya, a country of particular concern to Algeria. Extremists and weapons looted from Kadafi's military and police have flowed across the border for months.


Farther east, Egyptian authorities are concerned that militants from Algeria and Libya have joined terrorist cells in the Sinai Peninsula along the Israeli border.


It was the strife in Mali, however, that apparently led to the militant takeover of the Western-run gas compound Wednesday. The Algerian militants, who belonged to an Al Qaeda-linked group called the Signed-in-Blood Battalion, said they were acting in retaliation for French airstrikes against advancing Malian rebels. They reportedly threatened to blow up the plant if Algerian commandos attempted to free the hostages.


After the compound was seized by the militants, hundreds of Algerian soldiers firing warning shots ringed the remote compound as helicopters skimmed overhead. The militants asked for safe passage to Libya, with the hostages accompanying them. Algerian officials, who over the years have cracked down harshly on Islamic radicals, said they would not consider such requests.


"The authorities do not negotiate, no negotiations," Interior Minister Daho Ould Kabila said on state television. "We have received their demands, but we didn't respond to them."


The Algerian government was under pressure from the U.S., Britain and other countries whose nationals were taken hostage. But the raid caught some by surprise and appeared to irritate some Western leaders. British Prime Minister David Cameron's office said he would have preferred to have been told in advance of the operation.


"I think we should be prepared for the possibility of further bad news, very difficult news in this extremely difficult situation," Cameron said.


The State Department declined to provide details of the Algerian offensive, saying it could endanger hostages, some of whom were reportedly forced to wear explosives-laden belts.


White House spokesman Jay Carney told reporters, "We are certainly concerned about reports of loss of life and we are seeking clarity from the government of Algeria."


The Algerians are "used to fighting terrorism, in their own, quite hard way," said Mathieu Guidere, a professor of "Islamology" at the University of Toulouse in France and author of "The New Terrorists." "It's likely the deaths at the petrol base were as a result of the assault by the Algerian security forces."


Reports have suggested that as many as 41 foreigners were being held along with scores of Algerians. An Irishman who was among them contacted his family to say he had been freed.


The natural gas field complex at In Amenas, which supplies Europe and Turkey, is a joint venture operated by BP; Statoil, a Norwegian firm; and Sonatrach, the Algerian national oil company.


The assault on the compound dramatically changed the dynamics of Algeria's decades-long campaign against radicals. Militants had rarely, if ever, targeted oil and gas operations, even during the 1990s civil war, when few rules applied amid beheadings and massacres. Their seizure of the compound was a direct strike at the government and the nation's economic and political stability.


The civil war in Algeria, a country rich in oil and gas and with a spectacular coast and vast deserts, killed more than 100,000 people. The conflict began when the military, fearing Islamists would come to power, shut down parliamentary elections and the country collapsed into turmoil.


The government offered an amnesty program more than a decade ago. Thousands of militants accepted, but hard-core members of what had become Al Qaeda in the Islamic Maghreb resisted. The group publicly joined Al Qaeda in 2006, sending recruits to fight U.S. forces in Iraq while expanding its suicide bombings and kidnappings of businessmen and Westerners for ransom in Algeria.


AQIM and other Algerian radicals are heavily armed and fluid, shifting much of their attention last year to neighboring Mali, where they joined rebels and Islamists in a war to overthrow the government. Mali has attracted extremists from across Africa and the Middle East who are attempting to exploit the country's instability to create an Islamist state.


Two top radicals are believed to be connected to the gas field seizure: Abdelmalek Droukdel, AQIM's leader, who has called for militants to target France over its intervention in Mali, and Mokhtar Belmokhtar, a mercurial, one-eyed smuggler and kidnapper who runs the Signed-in-Blood Battalion, an AQIM splinter group that claims to have carried out Wednesday's predawn attack.


The hostages at the complex "who managed to reach loved ones abroad said the terrorists that captured them have Egyptian, Tunisian, Libyan accents," said an Algerian risk-assessment analyst who asked to remain anonymous because of the sensitivity of his job.


jeffrey.fleishman@latimes.com


Special correspondents Kim Willsher in Paris and Reem Abdellatif in Cairo and Times staff writers Henry Chu in London and Paul Richter in Washington contributed to this report.





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Facebook Wants New Breed of Flash Memory for Storing Old Pics



With each passing day, more than 350 million digital photos find their way onto Facebook, joining the more than 240 billion that are already there. Jay Parikh is the man who makes sure all those photos can remain online from now until the end of time, and that’s going pretty well. But he wants a little help. He wants the world to build him a new kind of flash memory ideally suited to storing all those old pics you rarely look at anymore.


The way things are going, he’ll probably get it. As Facebook’s vice president of infrastructure engineering, Parikh oversees the development of both the software and the hardware needed to operate the world’s most popular social network, and in recent months, he and his colleagues have developed a certain knack for convincing the world’s hardware companies to build stuff that suits Facebook’s particular needs — and the needs of other massive online operations. Just yesterday, Intel, AMD, and two other chip makers put their weight behind Facebook’s effort to create a new type of server that lets you add and remove processors whenever you like.


In the spring of 2011, Facebook founded something called the Open Compute Project, hoping to remake the hardware industry through communal collaboration, and on Wednesday, even as the company was showing off the latest fruits of the project, Parikh was calling for more.


Today, Facebook stores all your photos on good old-fashioned mechanical hard disks. This works well enough, but now that the company is juggling hundreds of billions of photos, many of them dating back three or four years, it makes less sense by the day. Those older photos aren’t accessed that often, and if they remain on hard drives, they continue to sap relatively large amounts of power.



“We can’t say: ‘Hey, you want to look at that picture from Halloween five years ago? We’ll go grab the tape and put it on the drive and send it to you in the week.’”


— Jay Parikh



Traditionally, companies have moved their older digital data to, say, magnetic tape. With Facebook, there’s an added rub. Even those older photos must be stored in a way that lets you instantly retrieve them. “We can’t say: ‘Hey, you want to look at that picture from Halloween five years ago? We’ll go grab the tape and put it on the drive and send it to you in the week,’” Parikh explained on Wednesday, during a speech at the Open Compute Project’s latest summit meeting. “That just doesn’t work.”


Parikh and company could move those older photos to the sort of flash memory devices that are now invading other parts of the computer data center — devices that consumes far less power than hard disks — but these carry relatively high price tags. Today’s super-speedy flash devices are a great to store information that’s accessed all the time, but they’re too expensive for the kind of “cold storage” Facebook needs for old photos.


So Parikh wants someone to build him some flash storage that’s cheaper. Basically, today’s flash is built to maximize the number of reads and writes you can make — the medium tends to degrade as you read and write — but he wants a version that specifically designed for data that’s accessed only occasionally.


“We want something with a low write-endurance,” he told us on Wednesday. “We want to get to something with a much, much lower unit cost per gigabyte.” This will also reduce the company’s power consumption, and according to Parikh, it will give his engineers more flexibility when it comes to writing software. “You play all sorts of neat software tricks in terms of how you optimize it.” When you’re reading and writing data on spinning hard drive platters — and you want to keep speeds up — there are tight restrictions on how you can do so.


On stage, during his speech, Parikh likened storage devices to cars. Right now, he said, it was as if his only options were a minivan and a high-end sports car. What he really wants is a third option — something more like a Prius. “We want is a continuum of options,” he said. “Today, the spectrum is very coarse. There’s tape on one end. There’s flash on the other end. And spinning disks in the middle. And that’s it.”


That may seem like a tall order, but Facebook is now so large — and so influential — it can make such requests in earnest. According to Facebook hardware design and supply chain guru Frank Frankovksy, Facebook engineers have long worked hand-in-hand with the Utah-based flash storage outfit Fusion-io, playing directly into the company’s latest designs, including the new 3.2 terabyte flash introduced on Wednesday at the Open Compute Summit, and Fusion-io chief David Flynn is only too happy to advertise this relationship.


Fusion-io’s high-speed flash cards are already driving Facebook’s database software — where so much of your text-based today is stored — but someday, Facebook will also move flash into the cold storage facility it’s building outside its data center up in Prineville, Oregon. It needs to get its hands on an entirely new type of flash before that can happen. But that shouldn’t be a problem.


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Eclectic opening for Sundance with films about Mideast, Chile, U.S. Southwest






PARK CITY, Utah (Reuters) – The Sundance Film Festival opens Thursday with movies and documentaries from around the world, including a feature that examines the cultural divide between the Middle East and the United States.


The 10-day Sundance Film Festival, founded by actor-director Robert Redford and now in its 35th year, will showcase 119 films from 32 countries.






“May in the Summer,” the U.S. dramatic competition opener, comes from writer-director Cherien Dabis, who caught the eye of Sundance organizers in 2009 with her directorial debut “Amreeka,” about a Palestinian family‘s experiences living in post 9/11 America.


Palestinian-American Dabis, 36, reverses the perspective on the Middle East, showing a Jordanian woman who has established a successful life in America but undergoes an identity crisis when she returns to her family in Jordan to plan her wedding.


“May in the Summer” will join U.S. documentary “Twenty Feet from Stardom” about back-up singers, Chilean drama “Crystal Fairy,” “Who is Dayani Cristal,” about a mysterious corpse found in the Arizona desert, and five short films as part of the opening day roster at the world’s leading independent film festival.


“We want the kind of films that will really set the tone for the rest of the festival. Those four films do that perfectly. They’re very different in what they are, but they collectively represent what’s going to be unfolding over the next days,” festival director John Cooper told Reuters.


OPENING UP TO THE WORLD


Festival organizers are making efforts this year to encourage more international stories and filmmakers to come to Sundance.


“They saw the value in the continuing changing world we live in and that even American stories are coming from all over the world,” Dabis said.


“The movie is a universal story that’s set in the Middle East, and we all know the Middle East is a place where we all need to expand our perceptions of what life is like there,” she added.


Sundance founder Robert Redford said the festival was all about encouraging diversity in filmmaking.


“As long as we go forward and we adapt to change, we keep in touch with our original purpose which is simply to support and develop new voices to be seen and heard,” Redford told reporters at a news conference on Thursday.


In addition to the usual film competition and premiere categories, festival organizers have expanded their slate of edgier films and projects, including actor James Franco’s sexually explicit films “kink” and “Interior. Leather Bar.”


There is also a thriving short film initiative, with more than 40 films showcased.


Outside of the films, Sundance has become a hot spot for the film industry to escape the hustle of Hollywood’s awards season and relax in Sundance’s more relaxed vibe.


Live music will feature prominently, with a spotlight on electronic dance music and four pop-up clubs featuring DJs such as Nero and Afrojack.


VIPs can take private snowboarding lessons or take part in the culinary event ChefDance, in a fusion of food and film.


(Reporting By Piya Sinha-Roy, editing by Jill Serjeant and Cynthia Osterman)


Movies News Headlines – Yahoo! News




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Well: The Fallout of a Chance Medical Finding

An incidental finding — I was convinced of it. My patient had undergone a CT scan of the abdomen at another hospital because of stomach pains and “incidentally noted” was a 2-centimeter mass in her adrenal gland. She brought in the report for me to see, nervous that she might have cancer.

I reassured her that it was exceedingly unlikely that she had cancer. Benign masses in the adrenal gland are nearly as common as birthmarks. They almost never cause symptoms and we stumble across them only because we do so many scans for other reasons. They’ve even earned their own appellation: incidentalomas, and that’s what I was sure she had.

Of course a tiny fraction — 1 to 2 percent — of these adrenal masses can wreak havoc by churning out an excess of adrenal hormones or by being cancerous. Luckily, the mass on my patient’s scan possessed all the reassuring characteristics of benignity: it was small, low-attenuating, well circumscribed, with smooth borders. And she had no symptoms to suggest adrenal hyperactivity or cancer. It was most likely a benign adrenal adenoma that would never cause her harm.

Nevertheless, once the incidentaloma had been given life, so to speak, it was no longer incidental. We were now obliged to run some highly complicated — and expensive — lab tests. I winced as I ordered urinary metanephrines to test the adrenaline-producing capacity of the adrenal. The computer warned me with exclamation points and asterisks that this was a “greater-than-$100-send-out test.” Explaining how to correctly collect a 24-hour urine sample was its own involved discussion. Then I had to explain the even more complicated logistics of the overnight dexamethasone-suppression test to evaluate the cortisol-producing capacity of the adrenal.

After that, I considered the follow-up CT scans, recommended at six months, one year and two years, to ensure that the mass wasn’t growing. What about all that radiation? One group of endocrinologists estimated that the chance of uncovering a malignant cancer in patients like mine was roughly equal to the chance of causing a fatal cancer from the radiation of these follow-up CT scans. And might these CT scans pick up other incidental findings, opening yet more Pandora’s boxes of medical evaluation?

And what about the issue of skyrocketing medical costs? The evaluation of this incidentaloma was going to cost more than a thousand dollars. Tens of millions of CT scans are done every year in the United States. It doesn’t take many back-of-the-envelope calculations to see how quickly the costs of incidental findings, and their subsequent evaluations, add up. How much should the societal obligation weigh into the decisions for my patient?

My thoughts flitted back to the doctor who had ordered this CT in the first place. Perhaps if the doctor had had more time to spend on the history and physical, the CT would not have been necessary. From my 15 years with this patient, I knew that her symptoms could be voluminous in quantity and quality. This wasn’t to say that something serious couldn’t squeak in, but over the years I have learned that it takes immense perseverance and patience to tease out the significance of each symptom. Otherwise we’d be doing a CT every week for her.

But I could understand how a doctor in a busy ER on a weekend might have been overwhelmed by the plethora of symptoms and simply ordered a CT “to be on the safe side.” I wished that doctor had tried to call me before ordering the scan, but what’s done was done. The fallout of that decision was now in my lap.

By now we had run well over our allotted time and my patient was utterly overwhelmed by the complex testing procedures and schedules. The adrenal mass was an incidental finding, after all, but it had completely steamrolled our visit. My patient’s diabetes, obesity, depression, arthritis and elevated cholesterol all ended up with the short end of the clinical stick — an outcome that surely is not incidental to her health.


Danielle Ofri is an associate professor of medicine at New York University School of Medicine and editor in chief of the Bellevue Literary Review. Her most recent book is “Medicine in Translation: Journeys With My Patients.”

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Media Decoder Blog: Tribune Company Names Peter Liguori as Chief After Ending Bankruptcy

Peter Liguori, a longtime television executive, was named the new chief executive of the Tribune Company on Thursday, two and a half weeks after the newspaper and television station owner emerged from a wrenching four-year bankruptcy process.

Mr. Liguori’s appointment had been expected for more than a month.

Analysts expect Tribune to sell some of its newspaper assets and rely more heavily on its television stations and Web sites as it restructures itself in the months ahead.

Tribune’s newspaper holdings include The Chicago Tribune, The Los Angeles Times and The Baltimore Sun. In an interview with The Los Angeles Times on Thursday, Mr. Liguori acknowledged that there were potential buyers for some of the newspapers and that “it is my fiduciary responsibility to hear them out and see if in fact their interest is real and their commitment is concomitant with the value of these newspapers.” But he also emphasized an internal goal to maximize revenue from the newspapers.

In an e-mail message to employees, Mr. Liguori brought up the television stations first, saying, “We must find efficient ways to create our own fresh programming.” When he brought up the newspapers, he said, “We must accelerate our digital offerings and get paid for them.”

Mr. Liguori is best known for his time at News Corporation, where he ran the popular cable channel FX and then became the chairman of entertainment for Fox Broadcasting. In 2009, he joined Discovery Communications as chief operating officer.

Eddy W. Hartenstein, Tribune’s previous chief executive, will remain the publisher of The Los Angeles Times and will be a special adviser to Mr. Liguori’s office, Tribune said Thursday.

The company also said Bruce Karsh, the president of the private equity firm Oaktree Capital Management, had been elected the chairman of Tribune’s new board. Oaktree owns nearly a quarter of Tribune. Mr. Karsh said in a statement: “The company is well-positioned across its markets and now has a strong balance sheet, significant liquidity and low debt, so there is a lot of opportunity ahead.”


This post has been revised to reflect the following correction:

Correction: January 18, 2013

Because of an editing error, an earlier version of this article misstated when The Los Angeles Times interview with Peter Liguori occurred. It was Thursday, not last week.

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U.S. finalizes rules for financial firms to avoid foreclosures









In a major effort to heal the $10-trillion U.S. mortgage market, the Consumer Financial Protection Bureau has finalized rules designed to ensure financial firms offer every available option to keep delinquent borrowers in their homes.


The regulations, to be announced Thursday, address widespread complaints that loan servicers — the companies that collect mortgage payments and repossess homes — were woefully unprepared to help borrowers during the tsunami of foreclosures after the housing bust.


They are designed to complement previous settlements by major banks over allegations of widespread servicing and foreclosure abuses. But unlike earlier settlements, they will apply to all large mortgage servicers, not just banks, in all states.





Still, the rules drew immediate criticism from a prominent consumer group, which said they don't do enough to force servicers to consider easing the terms of mortgages and expressed fears that the rules might preempt stronger existing provisions.


"While the establishment of industrywide standards is important, the failure to require meaningful loan modification protections is a retreat from current safeguards under the soon-to-expire [Obama administration] loan modification program," said Alys Cohen, an attorney with the National Consumer Law Center.


The consumer bureau was created when Congress passed the sweeping Dodd-Frank financial reform act in reaction to the mortgage meltdown and the global economic crisis that ensued. The law also required lenders to ensure that they only make loans that borrowers can reasonably be expected to repay.


Last week, the bureau issued major regulations providing a "safe harbor" from lawsuits under that new requirement for lenders who make certain types of presumably sound home loans. A key requirement is that total debt payments for borrowers — including principal, interest, taxes and insurance on home loans — be no more than 43% of gross income.


The rules to be released Thursday, which take effect in a year, bar lenders from pursuing foreclosure proceedings against borrowers while applications for loan modifications are pending — the much-criticized practice of "dual tracking."


The consumer bureau said banks also must provide "direct, easy, ongoing access" to employees who are required to alert borrowers to missing information, provide status reports on modification requests and ensure documents don't get lost.


Banks also are required to inform borrowers who miss two monthly payments about options to avoid foreclosure and to wait until loans go 120 days delinquent before beginning a foreclosure — a provision that would preempt a 90-day requirement under California law.


Richard Cordray, the consumer bureau's director, said distressed borrowers had not gotten the help and support they deserved, such as "timely and accurate information about their options for saving their homes."


"Servicers failed to answer phone calls, routinely lost paperwork and mishandled accounts," Cordray said in remarks to be delivered at an industry conference Thursday.


"Communication and coordination were poor, leading many to think they were on their way to a solution, only to find that their homes had been foreclosed on and sold," he said. "At times, people arrived home to find they had been unexpectedly locked out."


The new rules don't apply to most small banks and credit unions. Bureau officials said they have had few complaints about these small institutions, which are more likely to keep loans on their books, rather than sell them, and generally devote more attention to individual customers.


Servicers often are collecting payments on behalf of loan owners, who may be the banks themselves but more often are trusts created on behalf of mortgage investors. The investors have mandated a wide range of relief programs for troubled borrowers in addition to government-sponsored programs such as the Obama administration's Home Affordable Modification Program.


In the past, servicers would sometimes not inform troubled borrowers about all the options, instead steering them into foreclosure or programs that provided the servicers with greater financial rewards, bureau officials said.


The servicers are now supposed to clearly explain all alternatives to borrowers so they can pick the best one. The new rules also establish clearer opportunities for borrowers to appeal servicers' denials of loan modifications.


In addition to worries that the bureau has not cracked down hard enough on servicers, consumer advocates expressed concern that the new rules will not take effect for a year.


"While we understand that servicers need time to implement complex procedures, we're still in the middle of a foreclosure crisis," Cohen said. "Many people will unnecessarily lose their homes if we wait a year."


scott.reckard@latimes.com





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