Fed Ties Rates to Joblessness, With Target of 6.5%

Chip Somodevilla/Getty Images

Ben Bernanke, chairman of the Fed, said Wednesday that the agency was nearing the limits of its ability to help the unemployed.

WASHINGTON — The Federal Reserve made it plain on Wednesday that job creation had become its primary focus, announcing that it planned to continue suppressing interest rates so long as the unemployment rate remained above 6.5 percent.

It was the first time the nation’s central bank had publicized such a specific economic objective, underscoring the depth of its concern about the persistence of what the Fed chairman, Ben S. Bernanke, called “a waste of human and economic potential.”

To help reduce unemployment, the Fed said it would also continue monthly purchases of $85 billion in Treasury securities and mortgage-backed securities until job market conditions improved, extending a policy announced in September.

But the Fed released new economic projections showing that most of its senior officials did not expect to reach the goal of 6.5 percent unemployment until the end of 2015, raising questions of why it was not moving to expand its economic stimulus campaign.

At a news conference after a two-day meeting of the bank’s top policy committee, Mr. Bernanke suggested that the Fed was approaching the limits of its ability to help the unemployed.

“If we could wave a magic wand and get unemployment down to 5 percent tomorrow, obviously we would do that,” he said when asked if the Fed could do more. “But there are constraints in terms of the dynamics of the economy, in terms of the power of these tools and in terms that we do need to take into account other costs and risks that might be associated with a large expansion of our balance sheet,” referring to the monthly purchases of securities.

The changes announced Wednesday continue a shift that began in September, when the Fed announced that it would buy mortgage bonds until the job market generally improved.

As it did in September, the Fed sought to make clear on Wednesday that it was not responding to new evidence of economic problems, but increasing its efforts to address existing problems that have restrained growth for more than three years.

In focusing on job creation, the Fed is breaking with its long history of treating the inflation rate as the primary focus of a central bank. But the Fed is charged by Congress with both controlling inflation and minimizing unemployment. And over the last year, a group of officials led by Charles L. Evans, president of the Federal Reserve Bank of Chicago, convinced their colleagues that the Fed was falling short on the unemployment front.

The unemployment rate in November was 7.7 percent — it has not been below 6.5 percent since September 2008 — while the rate of inflation in recent months is lower than the 2 percent annual rate that the Fed considers healthiest.

“Imagine that inflation was running at 5 percent against our inflation objective of 2 percent,” Mr. Evans said in a September 2011 speech first describing the proposal. “Is there a doubt that any central banker worth their salt would be reacting strongly to fight this high inflation rate? No, there isn’t any doubt. They would be acting as if their hair was on fire. We should be similarly energized about improving conditions in the labor market.”

That argument was easier to win because inflation is under control, and the Fed expects the pace of price increases to remain at or below 2 percent through 2015. But in perhaps the clearest indication of the Fed’s philosophical shift, the Federal Open Market Committee said Wednesday that it would not relent in its focus on unemployment unless the medium-term outlook for inflation rose above 2.5 percent.

The change was supported by 11 of the committee’s 12 members. The only dissent came from Jeffrey M. Lacker, president of the Federal Reserve Bank of Richmond, who has repeatedly called for the Fed to do less. He says he believes the policies are ineffective and could inhibit the central bank’s ability to control inflation.

The Fed has held short-term interest rates near zero since December 2008, and it said in September that it intended to do so until at least mid-2015. The forecast was intended to reduce borrowing costs by persuading investors that interest rates would remain low for longer than they might have expected.

Mr. Bernanke said Wednesday that the shift to economic targets was not significant in the short term because the Fed still expected its goals to be reached no sooner than mid-2015. He said the bank chose 6.5 percent as its target because analyses showed that full-throttle stimulus beyond that level of unemployment could result in higher inflation.

Stock prices jumped after the Fed released its policy statement at midday, then began falling during Mr. Bernanke’s news conference about two hours later as he insisted that the Fed was not significantly increasing its efforts to bolster the economy. The Standard & Poor’s 500-stock index rose 0.04 percent on the day.

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Another Look at a Drink Ingredient, Brominated Vegetable Oil

James Edward Bates for The New York Times

Sarah Kavanagh, 15, of Hattiesburg, Miss., started an online petition asking PepsiCo to change Gatorade’s formula.

Sarah Kavanagh and her little brother were looking forward to the bottles of Gatorade they had put in the refrigerator after playing outdoors one hot, humid afternoon last month in Hattiesburg, Miss.

But before she took a sip, Sarah, a dedicated vegetarian, did what she often does and checked the label to make sure no animal products were in the drink. One ingredient, brominated vegetable oil, caught her eye.

“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” Ms. Kavanagh said. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”

She threw the product away and started a petition on Change.org, a nonprofit Web site, that has almost 200,000 signatures. Ms. Kavanagh, 15, hopes her campaign will persuade PepsiCo, Gatorade’s maker, to consider changing the drink’s formulation.

Jeff Dahncke, a spokesman for PepsiCo, noted that brominated vegetable oil had been deemed safe for consumption by federal regulators. “As standard practice, we constantly evaluate our formulas and ingredients to ensure they comply with federal regulations and meet the high quality standards our consumers and athletes expect — from functionality to great taste,” he said in an e-mail.

In fact, about 10 percent of drinks sold in the United States contain brominated vegetable oil, including Mountain Dew, also made by PepsiCo; Powerade, Fanta Orange and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.

The ingredient is added often to citrus drinks to help keep the fruit flavoring evenly distributed; without it, the flavoring would separate.

Use of the substance in the United States has been debated for more than three decades, so Ms. Kavanagh’s campaign most likely is quixotic. But the European Union has long banned the substance from foods, requiring use of other ingredients. Japan recently moved to do the same.

“B.V.O. is banned other places in the world, so these companies already have a replacement for it,” Ms. Kavanagh said. “I don’t see why they don’t just make the switch.” To that, companies say the switch would be too costly.

The renewed debate, which has brought attention to the arcane world of additive regulation, comes as consumers show increasing interest in food ingredients and have new tools to learn about them. Walmart’s app, for instance, allows access to lists of ingredients in foods in its stores.

Brominated vegetable oil contains bromine, the element found in brominated flame retardants, used in things like upholstered furniture and children’s products. Research has found brominate flame retardants building up in the body and breast milk, and animal and some human studies have linked them to neurological impairment, reduced fertility, changes in thyroid hormones and puberty at an earlier age.

Limited studies of the effects of brominated vegetable oil in animals and in humans found buildups of bromine in fatty tissues. Rats that ingested large quantities of the substance in their diets developed heart lesions.

Its use in foods dates to the 1930s, well before Congress amended the Food, Drug and Cosmetic Act to add regulation of new food additives to the responsibilities of the Food and Drug Administration. But Congress exempted two groups of additives, those already sanctioned by the F.D.A. or the Department of Agriculture, or those experts deemed “generally recognized as safe.”

The second exemption created what Tom Neltner, director of the Pew Charitable Trusts’ food additives project, a three-year investigation into how food additives are regulated, calls “the loophole that swallowed the law.” A company can create a new additive, publish safety data about it on its Web site and pay a law firm or consulting firm to vet it to establish it as “generally recognized as safe” — without ever notifying the F.D.A., Mr. Neltner said.

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Another Look at a Drink Ingredient, Brominated Vegetable Oil

James Edward Bates for The New York Times

Sarah Kavanagh, 15, of Hattiesburg, Miss., started an online petition asking PepsiCo to change Gatorade’s formula.

Sarah Kavanagh and her little brother were looking forward to the bottles of Gatorade they had put in the refrigerator after playing outdoors one hot, humid afternoon last month in Hattiesburg, Miss.

But before she took a sip, Sarah, a dedicated vegetarian, did what she often does and checked the label to make sure no animal products were in the drink. One ingredient, brominated vegetable oil, caught her eye.

“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” Ms. Kavanagh said. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”

She threw the product away and started a petition on Change.org, a nonprofit Web site, that has almost 200,000 signatures. Ms. Kavanagh, 15, hopes her campaign will persuade PepsiCo, Gatorade’s maker, to consider changing the drink’s formulation.

Jeff Dahncke, a spokesman for PepsiCo, noted that brominated vegetable oil had been deemed safe for consumption by federal regulators. “As standard practice, we constantly evaluate our formulas and ingredients to ensure they comply with federal regulations and meet the high quality standards our consumers and athletes expect — from functionality to great taste,” he said in an e-mail.

In fact, about 10 percent of drinks sold in the United States contain brominated vegetable oil, including Mountain Dew, also made by PepsiCo; Powerade, Fanta Orange and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.

The ingredient is added often to citrus drinks to help keep the fruit flavoring evenly distributed; without it, the flavoring would separate.

Use of the substance in the United States has been debated for more than three decades, so Ms. Kavanagh’s campaign most likely is quixotic. But the European Union has long banned the substance from foods, requiring use of other ingredients. Japan recently moved to do the same.

“B.V.O. is banned other places in the world, so these companies already have a replacement for it,” Ms. Kavanagh said. “I don’t see why they don’t just make the switch.” To that, companies say the switch would be too costly.

The renewed debate, which has brought attention to the arcane world of additive regulation, comes as consumers show increasing interest in food ingredients and have new tools to learn about them. Walmart’s app, for instance, allows access to lists of ingredients in foods in its stores.

Brominated vegetable oil contains bromine, the element found in brominated flame retardants, used in things like upholstered furniture and children’s products. Research has found brominate flame retardants building up in the body and breast milk, and animal and some human studies have linked them to neurological impairment, reduced fertility, changes in thyroid hormones and puberty at an earlier age.

Limited studies of the effects of brominated vegetable oil in animals and in humans found buildups of bromine in fatty tissues. Rats that ingested large quantities of the substance in their diets developed heart lesions.

Its use in foods dates to the 1930s, well before Congress amended the Food, Drug and Cosmetic Act to add regulation of new food additives to the responsibilities of the Food and Drug Administration. But Congress exempted two groups of additives, those already sanctioned by the F.D.A. or the Department of Agriculture, or those experts deemed “generally recognized as safe.”

The second exemption created what Tom Neltner, director of the Pew Charitable Trusts’ food additives project, a three-year investigation into how food additives are regulated, calls “the loophole that swallowed the law.” A company can create a new additive, publish safety data about it on its Web site and pay a law firm or consulting firm to vet it to establish it as “generally recognized as safe” — without ever notifying the F.D.A., Mr. Neltner said.

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G.O.P. Balks at Plan to Add Airwaves for Mobile Internet and Wi-Fi

WASHINGTON — House Republicans warned the Federal Communications Commission on Wednesday against “giving away” scarce airwaves that they said could produce up to $19 billion in proceeds if they were instead auctioned to telecommunications companies for use in mobile broadband networks.

The remarks, which came at a House communications subcommittee hearing, took aim at one of the top priorities of Julius Genachowski, the F.C.C. chairman: to make available more unlicensed airwaves, or spectrum, to open congested mobile broadband networks and to use in Wi-Fi hot spots.

In September, the F.C.C. proposed freeing 12 to 20 megahertz of spectrum for those unlicensed uses. The unlicensed space on the electromagnetic spectrum would also be used as “guard bands.” Those are areas that border segments of airwaves that are used by cellphone companies, broadcasters and other communications entities; their purpose is to limit interference from transmissions on nearby airwaves.

Mr. Genachowski defended the commission’s plans. “Unlicensed spectrum has a powerful record of driving innovation, investment and economic growth — hundreds of billions of dollars of value creation for our economy and consumers,” he told the committee on Wednesday.

He pointed to Wi-Fi networks, which operate on unlicensed airwaves on the electromagnetic spectrum, as an example of innovation that has generated “hundreds of billions in tax revenues” and made the United States a leader in the use of unlicensed airwaves.

But Representative Greg Walden, an Oregon Republican, who is chairman of the panel, said the law that gave the F.C.C. the ability to conduct “incentive auctions” of newly available spectrum required “maximizing the proceeds from the auction.”

For the F.C.C. to obtain the highest price for the spectrum it sells, it should limit the size of guard bands, Mr. Walden said; he said the six-megahertz minimum size proposed by the F.C.C. was unnecessarily fat.

Up to $7 billion of auction proceeds is earmarked to help build a nationwide public safety communications network for first responders. The spectrum for the auctions is supposed to come from television broadcasters who voluntarily give it up or move their position on the airwaves in exchange for some of the auction proceeds.

“I support the use of unlicensed spectrum to foster innovation” for relief of congested broadband, Mr. Walden said. “What I cannot support,” he added, “is the unnecessary expansion of unlicensed spectrum in other bands needed for licensed services, especially at the expense of funding for public safety.”

The F.C.C.’s five commissioners, who all testified before the subcommittee on Wednesday, are split 3-2 along party lines over the issue of unlicensed spectrum.

Commissioner Robert M. McDowell, a Republican, said it would be premature for the commission to reserve newly available airwaves for unlicensed use.

Instead, the commission should set aside the “white spaces” between broadcast television channels for unlicensed use, he said. White spaces are similar, but smaller, guard bands in the part of the spectrum dedicated to broadcast television that are intended to minimize interference between stations.

“At this early stage in the incentive auction process,” Mr. McDowell said, “it is not apparent that we should stop the progress well under way in the TV white spaces arena to create a solution for a problem — an alleged shortage of unlicensed spectrum in lower spectrum bands — that may never exist.”

The F.C.C.’s plans for unlicensed spectrum received support from Democrats on the subcommittee, including Representative Henry A. Waxman of California. Mr. Waxman said the way unlicensed spectrum would be set aside and used were settled in negotiations on the Public Safety and Spectrum Act, which was enacted this year.

“I am troubled by attempts by some to relitigate issues that were resolved earlier this year, when the bill passed Congress with widespread support,” Mr. Waxman said.

Republicans on the subcommittee also sparred with Mr. Genachowski over whether the F.C.C. should limit the amount of spectrum any one company could own. That would limit the potential buyers of some spectrum to be auctioned. Supporters of restrictions say they are one of a few ways to give smaller cellphone companies the ability to build nationwide networks.

Separately, the F.C.C. said late Wednesday that it had agreed to allow Dish, the satellite television company, to use spectrum that it controled for mobile broadband; previously, the airwaves were to be used only for satellite transmissions. The change, which was expected, greatly expands the value of the spectrum and could allow Dish to enter a mobile broadband partnership with another wireless company.

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Chinese Court Said to Punish Tibetan Students with Prison Terms

BEIJING — A Chinese court has sentenced eight Tibetan students to prison for their role in street protests last month that unnerved security forces already coping with a wave of self-immolations, many of them by young people who have become increasingly radicalized in their opposition to Chinese policies in the region, a Washington-based advocacy group reported on Wednesday.

According to the group, the International Campaign for Tibet, the students, from a predominantly Tibetan part of Qinghai Province, were sentenced to five-year terms on Dec. 5 for organizing demonstrations in response to government booklets that vilified the self-immolators and disparaged the Dalai Lama, Tibet’s exiled spiritual leader.

The group said news of the verdicts was based on a Tibetan exile with contacts in the region. Local government officials reached by telephone on Thursday declined to comment.

Word of the trials and convictions comes amid a growing crisis for Beijing as it tries to stop the surge in self-immolations that began more than two years ago. So far, nearly 100 people in Tibetan areas of the country have set themselves on fire, nearly a third of them since November. The majority have been in their teens and 20s.

The authorities have responded harshly, locking down some monasteries, requiring Buddhist monks to attend “political education” classes and issuing new regulations that criminalize any act seen as encouraging the protests. Earlier this week, the official Xinhua news agency said a Tibetan monk and his nephew had been detained for their role in eight self-immolations.

The student demonstrations in Tsolho Prefecture, known in Chinese as Hainan, began late last month after the authorities distributed the pamphlets. Infuriated by several passages, students from the Tsolho Professional Training School marched to a government building chanting slogans that called for “freedom” and Tibetan language rights, according to Radio Free Asia.

At one point, some protesters burned the pamphlets, drawing a violent response from paramilitary police who arrested a number of participants. “They beat up the students, hurled tear gas at them and there was also some kind of explosive used on the student crowd,” according to an account published by Radio Free Asia, quoting a local source. More than 20 students were injured, several critically, the report said.

Although the literature was designed in part to convince local students to support bilingual education, it also took aim at the Dalai Lama, calling him a “political itinerant who wants to split the Chinese Motherland.” It also described the self-immolators as puppets controlled by “foreign imperialist forces.”

Kate Saunders, communications director for the International Campaign for Tibet, said such protests, including a series of student-led demonstrations last month in a nearby city, Rebkong, underscored the intense antipathy young people feel toward Chinese educational policies, which often emphasize Mandarin over Tibetan.

“This is a new political moment in Tibet, with a new generation prepared to directly confront the authorities despite the risks,” Ms. Saunders said. “But it seems the authorities have no strategy other than oppression and as we can see it is not working.”

She said that at least 18 students from the school remained in police custody in addition to three monks who have been accused of sending news of the protests to the outside world.

Mia Li contributed research

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Daily Stock Market Activity

Wall Street traded sharply higher Tuesday after unexpectedly cheery data out of Europe and as the Federal Reserve was set to begin its two-day policy meeting.

The Standard & Poor’s 500-stock index added 1 percent in morning trading, while the Dow Jones industrial average rose 0.9 percent and the Nasdaq composite index was up 1.5 percent.

The stock market has entered a traditionally quiet period heading into the end of the year, with thinner trading volumes and fewer large fluctuations likely.

Though the pace of talks quickened in Washington to avert impending tax increases and spending cuts, senior politicians on both sides cautioned that an agreement on all the outstanding issues remained uncertain.

The lack of progress in negotiations about the “fiscal cliff” has kept investors from making aggressive bets in recent weeks, though most expect a deal will eventually be reached.

In Germany, analyst and investor sentiment rose sharply in December, entering positive territory for the first time since May, a leading survey showed. The data helped drive European shares higher. The DAX in Frankfurt was up 0.6 percent in afternoon trading, while the FTSE 100 in London gained 0.2 percent.

“We’ve been getting a lot of the beginning of our day from seeing what Europe has been doing, and I think that’s going to hold true today,” said Kim Caughey Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

The Fed began its two-day Federal Open Market Committee meeting on Tuesday. The central bank was expected to announce a new round of Treasury securities purchases on Wednesday, according to a Reuters survey of analysts. The program would replace its so-called Operation Twist stimulus effort, which expires at the end of the year.

The Treasury Department sold its remaining stake in the American International Group, bringing an end to a government ownership role about four years after a $182 billion bailout. A.I.G.'s shares were up 4 percent in morning trading.

Two firms raised their price targets for Urban Outfitters, sending the retailer’s shares up 6 percent.

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Concussion Liability Issues Could Stretch Beyond N.F.L.

Paul Kitagaki Jr./The Sacramento Bee, via Associated Press

Insurers could raise premiums with a higher risk of lawsuits for concussions, like the one 49ers quarterback Alex Smith sustained a month ago.

As the N.F.L. confronts a raft of lawsuits brought by thousands of former players who accuse the league of hiding information about the dangers of concussions, a less visible battle that may have a more widespread effect in the sport is unfolding between the league and 32 of its current and former insurers.

The dispute revolves around how much money, if any, the insurers are obliged to pay for the league’s mounting legal bills and the hundreds of millions of dollars in potential damages that might stem from the cases brought by the retired players.

Regardless of how it is resolved, the dispute could hurt teams, leagues and schools at all levels if insurers raise premiums to compensate for the increased risk of lawsuits from the families of people who play hockey, lacrosse and other contact sports.

The N.F.L., which generates about $9 billion a year, may be equipped to handle these legal challenges. But colleges, high schools and club teams may be forced to consider severe measures in the face of liability issues, like raising fees to offset higher premiums; capping potential damages; and requiring players to sign away their right to sue coaches and schools. Some schools and leagues may even shut down teams because the expense and legal risk are too high.

“Insurers will be tightening up their own coverage and make sports more expensive,” said Robert Boland, who teaches sports law at New York University. “It could make the sustainability of certain sports a real issue.”

The N.F.L. contends that the insurers, some of whom wrote policies in the 1960s, have a duty to defend the league, which has paid them millions of dollars in premiums. The question for the N.F.L. is not whether the insurers are required to help the league, but rather what percent of the league’s expenses each insurer is obliged to cover.

The 32 insurance companies have varying arguments against the league. Some wrote policies for a limited number of years and contend their obligations should also be limited. Others contend they wrote policies for the N.F.L.’s marketing arm — for licensing disputes, for example — not the league itself.

A few of the companies went bankrupt or merged with rivals. Some insurers wrote primary policies that covered up to the first $1 million of claims; the rest insured obligations in excess of that amount.

Creating a formula for how to apportion liability will in some cases depend on the broader case between the league and its players now in federal court in Pennsylvania. If the N.F.L. persuades the judge to dismiss the case, the league will be left trying to recoup its legal costs from the insurers. If the judge allows the players’ case to proceed, the definitions of when, how and whether a player’s concussions led to his illness will become critical in shaping the insurers’ exposure, and could take years to sort out.

“This is baby step 1 in the process for everyone figuring how deep in the soup they are,” said Christopher Fusco, a lawyer who has worked on similar insurance cases but is not involved in the N.F.L. litigation. “Baby step 2 will be to figure out the facts.”

Fusco and other lawyers said the facts would largely come from the underlying suit between the league and the more than 3,000 retired players, including determining when the players sustained the head trauma and their injuries. This will probably be a long process because many of the retired players in the underlying suit, some of whom are now having memory loss, played decades ago, when concussions were often undiagnosed or not recorded.

Many of the insurance companies named in the suits declined to comment, citing the continuing litigation. The N.F.L. also did not comment.

The two-tiered battle between the league and its former players and insurers echoes the litigation stemming from asbestos claims because both cases center on long-tail claims, or injuries that could take years to manifest themselves.

Read More..

Concussion Liability Issues Could Stretch Beyond N.F.L.

Paul Kitagaki Jr./The Sacramento Bee, via Associated Press

Insurers could raise premiums with a higher risk of lawsuits for concussions, like the one 49ers quarterback Alex Smith sustained a month ago.

As the N.F.L. confronts a raft of lawsuits brought by thousands of former players who accuse the league of hiding information about the dangers of concussions, a less visible battle that may have a more widespread effect in the sport is unfolding between the league and 32 of its current and former insurers.

The dispute revolves around how much money, if any, the insurers are obliged to pay for the league’s mounting legal bills and the hundreds of millions of dollars in potential damages that might stem from the cases brought by the retired players.

Regardless of how it is resolved, the dispute could hurt teams, leagues and schools at all levels if insurers raise premiums to compensate for the increased risk of lawsuits from the families of people who play hockey, lacrosse and other contact sports.

The N.F.L., which generates about $9 billion a year, may be equipped to handle these legal challenges. But colleges, high schools and club teams may be forced to consider severe measures in the face of liability issues, like raising fees to offset higher premiums; capping potential damages; and requiring players to sign away their right to sue coaches and schools. Some schools and leagues may even shut down teams because the expense and legal risk are too high.

“Insurers will be tightening up their own coverage and make sports more expensive,” said Robert Boland, who teaches sports law at New York University. “It could make the sustainability of certain sports a real issue.”

The N.F.L. contends that the insurers, some of whom wrote policies in the 1960s, have a duty to defend the league, which has paid them millions of dollars in premiums. The question for the N.F.L. is not whether the insurers are required to help the league, but rather what percent of the league’s expenses each insurer is obliged to cover.

The 32 insurance companies have varying arguments against the league. Some wrote policies for a limited number of years and contend their obligations should also be limited. Others contend they wrote policies for the N.F.L.’s marketing arm — for licensing disputes, for example — not the league itself.

A few of the companies went bankrupt or merged with rivals. Some insurers wrote primary policies that covered up to the first $1 million of claims; the rest insured obligations in excess of that amount.

Creating a formula for how to apportion liability will in some cases depend on the broader case between the league and its players now in federal court in Pennsylvania. If the N.F.L. persuades the judge to dismiss the case, the league will be left trying to recoup its legal costs from the insurers. If the judge allows the players’ case to proceed, the definitions of when, how and whether a player’s concussions led to his illness will become critical in shaping the insurers’ exposure, and could take years to sort out.

“This is baby step 1 in the process for everyone figuring how deep in the soup they are,” said Christopher Fusco, a lawyer who has worked on similar insurance cases but is not involved in the N.F.L. litigation. “Baby step 2 will be to figure out the facts.”

Fusco and other lawyers said the facts would largely come from the underlying suit between the league and the more than 3,000 retired players, including determining when the players sustained the head trauma and their injuries. This will probably be a long process because many of the retired players in the underlying suit, some of whom are now having memory loss, played decades ago, when concussions were often undiagnosed or not recorded.

Many of the insurance companies named in the suits declined to comment, citing the continuing litigation. The N.F.L. also did not comment.

The two-tiered battle between the league and its former players and insurers echoes the litigation stemming from asbestos claims because both cases center on long-tail claims, or injuries that could take years to manifest themselves.

Read More..

John Silva, Maker of ‘Telecopter’ Camera, Dies at 92

Helicopter news footage is common today. But until myriad problems in sending live pictures from a moving aircraft were solved, television broadcasters could not show an eagle’s-eye view of a forest fire, or contemplate aerial coverage of, say, a famous man fleeing the police in a white Ford Bronco.

John Silva made that now-familiar vantage possible in 1958, when he converted a small helicopter into the first airborne virtual television studio.

The KTLA “Telecopter,” as it was called by the Los Angeles station where Mr. Silva was the chief engineer, became the basic tool of live television traffic reporting, disaster coverage and that most famous glued-to-the-tube moment in the modern era of celebrity-gawking, the 1994 broadcast of O. J. Simpson leading a motorcade of pursuers on Los Angeles freeways after his former wife and a friend of hers were killed.

Mr. Silva, who later earned two Emmy Awards for his pioneering technical work, died in Camarillo, Calif., on Nov. 27. His death was confirmed by a spokesman for KTLA-TV, where he worked from 1946 until leaving to become an electronics design consultant in 1978. He was 92.

Mr. Silva, an electronics engineer trained in radar science during World War II, faced three main roadblocks to transmitting black-and-white images live from helicopters. Rotor vibrations distorted the pictures, and sometimes even cracked the transmitter’s vacuum tubes. Directional antennas went haywire when helicopters changed direction suddenly, as helicopters sometimes do. And the camera equipment weighed a ton.

With help from fellow KTLA engineers, though mainly working alone to keep the project secret from competitors, Mr. Silva stabilized onboard cameras with a system of shock absorbers and cushions, designed aluminum parts to replace heavier metals in his equipment and commissioned an antenna that would extend below the chopper and rotate to maintain uninterrupted contact with KTLA’s mountaintop transmitter. By paring and remachining a basic set of broadcast equipment, he reduced it to 368 pounds from 2,000 pounds and distributed the load with precise symmetry throughout the tiny Bell 47G2 chopper leased for the project to prevent listing.

KTLA, the first commercially licensed television station west of the Rockies, faced growing competition in the late ’50s. New network-affiliated stations were scoring scoops with mobile broadcast units like ones Mr. Silva had pioneered, and everyone was fighting to get through increasingly clogged Los Angeles freeways.

The Telecopter was intended to kill the competition.

“If we could build a news mobile unit in a helicopter,” Mr. Silva recalled in a 2002 interview for the Archive of American Television, “we could get over it all, get there first, avoid the traffic and get to all the stories before anybody in the competition.”

“It’d be a wonderful thing,” he said.

By the time he began work on his airborne live television, Mr. Silva had already achieved a landmark in ground-level television history. In 1949, he was the technical director at KTLA who rigged the electronic connections — using duct-tape ingenuity and a borrowed generator — that carried what historians consider the first live television broadcast of a breaking news event.

The 27-hour rescue operation in San Marino, Calif., to save Kathy Fiscus, a 3-year-old trapped in an abandoned water pipe 94 feet below ground, was unsuccessful; but the station’s coverage was the precursor to every wall-to-wall television event broadcast since.

The Telecopter’s first flight took place at Los Angeles City Hall on July 24, 1958. It re-established KTLA’s dominance (until competitors put their own helicopters up). And for better and worse, it brought a Hollywood-style excitement to television news.

In the archive interview, Mr. Silva was asked what the first live helicopter pictures showed. They were panning shots, he said — zooming in and out of the L.A. landscape between the station’s Sunset Boulevard studio and City Hall.

Most of what they showed, he added, “was the freeway.”

John Daniel Silva was born in San Diego on Feb. 20, 1920, the youngest of three children of a commercial fisherman, Guy Silva, and his wife, Lottie, a homemaker. He attended M.I.T. for two years, and graduated with a bachelor’s degree after two years more at Stanford.

During World War II, he was a Naval officer who positioned radar defenses in the Pacific.

After the war, he worked for Paramount Pictures as an engineer for an experimental television station, W6XYZ, that later became KTLA.

Mr. Silva’s survivors include his wife, Mary Lou Steinkraus-Silva; three daughters, Patricia Vawter, Kathleen Silva and Karen Samaha; and a granddaughter.

The Telecopter had its greatest moments, predictably, at news events of Cecil B. DeMille dimensions: The 1963 dam break at the Baldwin Hills Reservoir in Los Angeles that sent 250 million gallons of water into surrounding neighborhoods, destroying many homes and claiming five lives. The 1965 Watts riots. The 1961 brush fire that swept through Bel Air, sending Hollywood stars scrambling to their roofs with garden hoses.

In his three-hour interview with the television archive, Mr. Silva never mentioned the 1994 O. J. Simpson freeway pursuit footage he made possible. But in answering a question about the future of helicopter reporting, he made clear that he had no regrets about the Telecopter’s role in creating an increasingly graphic television sensibility.

He would just like the lenses to get longer and the close-ups tighter, he said.

“When they’re doing freeway chases, they need to have a system that can come down in front, and be able to get pictures of suspects in the front windshield,” he said, describing one improvement he hoped to see.

Smiling, he added, “To fill the screen with their wonderful faces.”

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Cheikh Modibo Diarra, Mali’s Prime Minister, Resigns After Arrest

BAMAKO, Mali — Soldiers arrested Mali’s prime minister at his residence late Monday night, signaling new turmoil in a West African nation racked by military interference and an Islamist takeover in the north.

Associated Press

Prime Minister Cheikh Modibo Diarra appeared on state television and announced his government’s resignation on Tuesday.

Hours later, Prime Minister Cheikh Modibo Diarra appeared grim-faced on national television to announce his government’s resignation. A spokesman for soldiers who seized power earlier in the year — and later nominally relinquished it to Mr. Diarra — confirmed the prime minister’s arrest on Tuesday morning, accusing him of “playing a personal agenda” while the country faced a crisis in the north. The soldiers arrived at Mr. Diarra’s home around 11 p.m. Monday as he was preparing for a flight to Paris for a medical checkup, said the military spokesman, Bakary Mariko. The prime minister was taken to the military encampment at Kati, just outside Bamako, the capital, where Capt. Amadou Sanogo, the officer who led the March military coup, and others told him “there were proofs against him that he was calling for subversion,” Mr. Mariko said.

On Tuesday morning, the streets of Bamako appeared calm following what appeared to be the country’s second coup d’état in less than a year. But the new upheaval is likely to be considered a setback to Western efforts to help Mali regain control of territory lost to Qaeda-linked militants earlier in the year.

The West has watched with growing alarm as Islamist radicals have constructed a stronghold in the country’s vast north. The United Nations, regional African bodies, France and the United States have tried to aid the faltering Malian Army in a military strike to take back the lost north. Those efforts have so far not coalesced into a coherent plan, despite numerous meetings and United Nations resolutions. More meetings at the United Nations are planned for later this month.

The latest political turmoil in the capital will almost certainly slow down any campaign in the north, however. Already, the United States has expressed reluctance to provide too much direct military assistance, given the shakiness of the political order here. Those doubts are only likely to increase following the latest upheaval.

Mr. Diarra — appointed last spring as a caretaker prime minister until new elections could be organized — was known to disagree with Captain Sanogo on military policy.

He has been an advocate of immediate international military assistance to recapture the north from the Islamists. Captain Sanogo has rebuffed suggestions that the Malian military is incapable of handling the job on its own. Indeed, the captain for weeks resisted the notion that troops from other African nations should even approach the capital.

While Mr. Diarra has made the rounds of foreign capitals, pleading for help to fight the increasingly aggressive Islamists, military leaders have remained at the Kati base, grumbling.

That conflict was evident in the declarations of the military’s spokesman on Tuesday. “Since he has been in power, he has been working simply to position his own family,” Mr. Mariko said. “There has been a paralysis in government.”

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