Rice Ends Bid to Succeed Clinton as Secretary of State

WASHINGTON — President Obama knew before he picked up the phone on Thursday afternoon what Susan E. Rice, his ambassador to the United Nations, was calling about: she wanted to take herself out of the running for secretary of state and spare him a fight.

By acceding to Ms. Rice’s request, which she had conveyed to White House aides the night before, Mr. Obama averted a bitter, potentially disruptive battle with Republicans in Congress at the start of his second term and at a time when his administration is struggling to reach a politically difficult deal on the federal budget.

In a statement, the president praised Ms. Rice and expressed some anger over the withering criticism directed at her by Republicans because of  comments she made in the aftermath of the lethal attack on the American mission in Benghazi, Libya.

“While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks,” he said, “her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first.”

By all accounts, Ms. Rice had been Mr. Obama’s first choice to succeed Hillary Rodham Clinton, though recently he seemed to be signaling that her nomination was far from a foregone conclusion. Her decision to withdraw, which senior officials insist Ms. Rice made without prodding from the White House, clears the way for Mr. Obama to nominate Senator John Kerry, Democrat of Massachusetts and chairman of the Senate Foreign Relations Committee, officials said.

Republicans say Mr. Kerry would sail through a confirmation process, while several senators had vowed to block Ms. Rice’s nomination, citing what they said were her misleading statements about the Sept. 11 attack that killed four Americans, including Ambassador J. Christopher Stevens.

By stepping aside, Ms. Rice will allow Mr. Obama to present a full slate of appointees to his national security team, as early as next week. Among the other candidates for key posts, officials said, is former Senator Chuck Hagel, a Nebraska Republican, for secretary of defense. Like Mr. Kerry, Mr. Hagel, a Vietnam veteran who opposed the Iraq war, would be supported by many of his former colleagues.

Their nominations would also remove a major source of tension between the White House and Congressional Republicans, who had expanded their attack on Ms. Rice from Benghazi to a broader indictment of her record as a policy maker on Africa, her role in securing American embassies in Kenya and Tanzania that came under terrorist attack, and even her personal finances.

Senator Lindsey Graham, a Republican from South Carolina and one of Ms. Rice’s fiercest critics, said Thursday that he respected her decision, but added in a statement that he planned “to continue working diligently to get to the bottom of what happened in Benghazi.”

In a letter she sent to Mr. Obama before her call, Ms. Rice attributed her decision to a recognition that “the confirmation process would be lengthy, disruptive and costly — to you and to our most pressing national and international priorities. The trade-off is simply not worth it to our country.”

Mr. Obama said he accepted her request with regret, describing her in a statement as “an extraordinarily capable, patriotic, and passionate public servant” with a “limitless capability to serve our country” — a line that one official said signaled that Ms. Rice, who will continue in her job at the United Nations, remains a candidate for other senior posts, including national security adviser.

Republicans are eager to see a new appointee, and should it be Mr. Kerry, his party’s 2004 presidential nominee, he would receive a far different reception.  “She made her own decision and I think it’s the right decision,” said Senator John Barrasso of Wyoming, a member of the Foreign Relations Committee. “I think she would have had a very hard time getting through.” Mr. Kerry, by contrast, is “immensely qualified and he would be easily confirmed,” he said.

For his part, Mr. Kerry heaped praise on Ms. Rice. In a statement, he said, “As someone who has weathered my share of political attacks and understands on a personal level just how difficult politics can be, I’ve felt for her throughout these last difficult weeks, but I also know that she will continue to serve with great passion and distinction.”

Jennifer Steinhauer contributed reporting.

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N. Joseph Woodland, Inventor of the Bar Code, Dies at 91

N. Joseph Woodland, who six decades ago drew a set of lines in the sand and in the process conceived the modern bar code, died on Sunday at his home in Edgewater, N.J. He was 91.

His daughter Susan Woodland confirmed the death.

A retired mechanical engineer, Mr. Woodland was a graduate student when he and a classmate, Bernard Silver, created a technology — based on a printed series of wide and narrow striations — that encoded consumer-product information for optical scanning.

Their idea, developed in the late 1940s and patented 60 years ago this fall, turned out to be ahead of its time. But it would ultimately give rise to the universal product code, or U.P.C., as the staggeringly prevalent rectangular bar code is officially known.

The code now adorns tens of millions of different items, scanned in retail establishments around the world at the rate of more than five billion a day.

The bar code would never have developed as it did without a chain of events noteworthy even in the annals of invention etiology:

Had Mr. Woodland not been a Boy Scout, had he not logged hours on the beach and had his father not been quite so afraid of organized crime, the code would very likely not have been invented in the form it was, if at all.

Norman Joseph Woodland was born in Atlantic City on Sept. 6, 1921. As a Boy Scout he learned Morse code, the spark that would ignite his invention.

After spending World War II on the Manhattan Project at Oak Ridge National Laboratory in Tennessee, Mr. Woodland resumed his studies at the Drexel Institute of Technology in Philadelphia (it is now Drexel University), earning a bachelor’s degree in 1947.

As an undergraduate, Mr. Woodland perfected a system for delivering elevator music efficiently. His system, which recorded 15 simultaneous audio tracks on 35-millimeter film stock, was less cumbersome than existing methods, which relied on LPs and reel-to-reel tapes.

He planned to pursue the project commercially, but his father, who had come of age in “Boardwalk Empire”-era Atlantic City, forbade it: elevator music, he said, was controlled by the mob, and no son of his was going to come within spitting distance.

The younger Mr. Woodland returned to Drexel for a master’s degree. In 1948, a local supermarket executive visited the campus, where he implored a dean to develop an efficient means of encoding product data.

The dean demurred, but Mr. Silver, a fellow graduate student who overheard their conversation, was intrigued. He conscripted Mr. Woodland.

An early idea of theirs, which involved printing product information in fluorescent ink and reading it with ultraviolet light, proved unworkable.

But Mr. Woodland, convinced that a solution was close at hand, quit graduate school to devote himself to the problem. He holed up at his grandparents’ home in Miami Beach, where he spent the winter of 1948-49 in a chair in the sand, thinking.

To represent information visually, he realized, he would need a code. The only code he knew was the one he had learned in the Boy Scouts.

What would happen, Mr. Woodland wondered one day, if Morse code, with its elegant simplicity and limitless combinatorial potential, were adapted graphically? He began trailing his fingers idly through the sand.

“What I’m going to tell you sounds like a fairy tale,” Mr. Woodland told Smithsonian magazine in 1999. “I poked my four fingers into the sand and for whatever reason — I didn’t know — I pulled my hand toward me and drew four lines. I said: ‘Golly! Now I have four lines, and they could be wide lines and narrow lines instead of dots and dashes.’ ”

That transformative sweep was merely the beginning. “Only seconds later,” Mr. Woodland continued, “I took my four fingers — they were still in the sand — and I swept them around into a full circle.”

Mr. Woodland favored the circular pattern for its omnidirectionality: a checkout clerk, he reasoned, could scan a product without regard for its orientation.

On Oct. 7, 1952, Mr. Woodland and Mr. Silver were awarded United States patent 2,612,994 for their invention — a variegated bull’s-eye of wide and narrow bands — on which they had bestowed the unromantic name “Classifying Apparatus and Method.”

But that method, which depended on an immense scanner equipped with a 500-watt light, was expensive and unwieldy, and it languished for years.

The two men eventually sold their patent to Philco for $15,000 — all they ever made from their invention.

By the time the patent expired at the end of the 1960s, Mr. Woodland was on the staff of I.B.M., where he worked from 1951 until his retirement in 1987.

Over time, laser scanning technology and the advent of the microprocessor made the bar code viable. In the early 1970s, an I.B.M. colleague, George J. Laurer, designed the familiar black-and-white rectangle, based on the Woodland-Silver model and drawing on Mr. Woodland’s considerable input.

Thanks largely to the work of Alan Haberman, a supermarket executive who helped select and popularize the rectangular bar code and who died in 2011, it was adopted as the industry standard in 1973.

Mr. Woodland, who earned a master’s in mechanical engineering from Syracuse University in the 1950s, received the National Medal of Technology and Innovation in 1992. Last year, he was inducted into the National Inventors Hall of Fame. (Mr. Silver, who died in 1963, was inducted posthumously along with him.)

Besides his daughter Susan, Mr. Woodland is survived by his wife, the former Jacqueline Blumberg, whom he married in 1951; another daughter, Betsy Karpenkopf; a brother, David; and a granddaughter.

Today, the bar code graces nearly every surface of contemporary life — including groceries, wayward luggage and, if you are a traditionalist, the newspaper you are holding — all because a young man, his mind ablaze with dots and dashes, one day raked his fingers through the sand.

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My Story: Taking on Cancer Again, This Time With the Wisdom of Age

After I finished eight months of treatment for testicular cancer in my mid-20s, my psychologist said, “Well, that was like having five years of therapy all at once.” What he meant was that you learn a lot about yourself in weekly talk sessions, but during a life-threatening illness, the “issues” come at you nonstop. I relished the slow unfolding of myself in the first, but I resented — no, hated — every step of the second. Nearly two decades later, when confronted with the same diagnosis, I finally understood the benefits of that earlier trial by fire, much as I did the wisdom of Ralph Waldo Emerson when he wrote, “The years teach much which the days never knew.”

To be sure, there were benefits to being young — I was 26 — when I was first diagnosed, not the least of which was my competitive swimmer’s body. After almost dying in the I.C.U. and becoming a “patient-in-residence,” I plunged back into the pool (and my day job) just a fortnight after my release.

Ah, the determination — and denial — of youth.

But facing cancer at that young age had more drawbacks than benefits, not the least of which was losing my sense of invulnerability when confronted with the prospect of disfigurement and disability, even death.

Less obvious, but still unsettling, was the loss of my laissez-faire attitude toward life itself. I had always been the kind of guy who focused on the journey (the experience) more than the destination (winning). During backstroke events prior to falling ill I was more interested in watching the clouds race overhead than the swimmer racing in the next lane. This mindset didn’t do much for my success in the pool, but it helped define who I was.

To make matters worse, conventional wisdom says only one thing matters when it comes to cancer: Beating the hell out of it. Suddenly I had to find an emotional depth I hadn’t sought before, a passion for a fight that I didn’t want.

Am I the kind of person who can win this battle? I asked myself early on.

To ensure that I was, I did a complete about-face, saying “No way” to the journey and “Hell, yes” to the destination. Every decision began to turn on life and longevity, and for that I tolerated side effects like hair loss, neuropathy and “dry ejaculation” — because I simply had to win.

I re-read Dylan Thomas, who told me to “rage, rage against the dying of the light,” and I did. I became a rager. And it almost ruined my life.

Not in terms of my health, because in fact my treatment was effective. I was “clinically cured” and chalked up that achievement to my new “Top Gun” mentality. Then I jumped back into daily life — and managed to mess everything up. I applied my new approach to relationships (“My way or the highway”), and got dumped by my boyfriend. In graduate school, I aced my studies but lost friends.

Fortunately, my best friends didn’t hold back on telling me I had become a jerk, and that got my attention. I had upshifted at the start of my treatment, but now I needed to downshift. I struggled to find my pace, but eventually found a middle gear, more vulnerable than I cared to be but also more human.

The second time I was diagnosed, the oncologist sat me down to give me the new installment of the old bad news. I surprised myself and my friends with a very different approach.

I did not rage, which isn’t to say I was happy about this predicament. And I had moved on from my original question to a new one: How can I go through this and still be the kind of person I want to be?

In the intervening years, I had come to realize that cancer victories are not won by personality types, but by a combination of doggedness (choosing the best physician, getting the right diagnosis and treatment), responsibility (doing your own research and taking care of your overall health), and plain old luck.

From that very first day of my second time around, I challenged myself not to shift into that “win at any cost” mentality. That’s where the gift of age and experience came to my aid, even if my older body did not. Over the years I had learned that life was not a series of choices between winners and losers — I knew that way of seeing things to be oversimplified, if not dead wrong. You can be stronger than an ox, never miss a day of work, or swim your lungs out and, damn it, still die.

I could become a jerk again and focus on the end point, or I could accept that the journey is the destination – which I did.

Two months after I had been diagnosed and two days before the surgeon was scheduled to excise my remaining testicle, I had a dream so vivid — “I am cancer-free!” — that I demanded to go on a “surveillance” protocol. Reluctantly my doctor agreed, but by year’s end I had “won” the debate when my so-called tumor was reclassified as a benign nodule.

The years had taught me much — both to listen to my body and to trust in its wisdom. And, most importantly, to find the courage to speak its truth — whether in the doctor’s office or out in the world.

Steven Petrow writes the Civil Behavior column for Booming, addressing questions about gay and straight etiquette for a boomer-age audience. You can find him on Facebook and Twitter.

You can follow Booming via RSS here or visit nytimes.com/booming.

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My Story: Taking on Cancer Again, This Time With the Wisdom of Age

After I finished eight months of treatment for testicular cancer in my mid-20s, my psychologist said, “Well, that was like having five years of therapy all at once.” What he meant was that you learn a lot about yourself in weekly talk sessions, but during a life-threatening illness, the “issues” come at you nonstop. I relished the slow unfolding of myself in the first, but I resented — no, hated — every step of the second. Nearly two decades later, when confronted with the same diagnosis, I finally understood the benefits of that earlier trial by fire, much as I did the wisdom of Ralph Waldo Emerson when he wrote, “The years teach much which the days never knew.”

To be sure, there were benefits to being young — I was 26 — when I was first diagnosed, not the least of which was my competitive swimmer’s body. After almost dying in the I.C.U. and becoming a “patient-in-residence,” I plunged back into the pool (and my day job) just a fortnight after my release.

Ah, the determination — and denial — of youth.

But facing cancer at that young age had more drawbacks than benefits, not the least of which was losing my sense of invulnerability when confronted with the prospect of disfigurement and disability, even death.

Less obvious, but still unsettling, was the loss of my laissez-faire attitude toward life itself. I had always been the kind of guy who focused on the journey (the experience) more than the destination (winning). During backstroke events prior to falling ill I was more interested in watching the clouds race overhead than the swimmer racing in the next lane. This mindset didn’t do much for my success in the pool, but it helped define who I was.

To make matters worse, conventional wisdom says only one thing matters when it comes to cancer: Beating the hell out of it. Suddenly I had to find an emotional depth I hadn’t sought before, a passion for a fight that I didn’t want.

Am I the kind of person who can win this battle? I asked myself early on.

To ensure that I was, I did a complete about-face, saying “No way” to the journey and “Hell, yes” to the destination. Every decision began to turn on life and longevity, and for that I tolerated side effects like hair loss, neuropathy and “dry ejaculation” — because I simply had to win.

I re-read Dylan Thomas, who told me to “rage, rage against the dying of the light,” and I did. I became a rager. And it almost ruined my life.

Not in terms of my health, because in fact my treatment was effective. I was “clinically cured” and chalked up that achievement to my new “Top Gun” mentality. Then I jumped back into daily life — and managed to mess everything up. I applied my new approach to relationships (“My way or the highway”), and got dumped by my boyfriend. In graduate school, I aced my studies but lost friends.

Fortunately, my best friends didn’t hold back on telling me I had become a jerk, and that got my attention. I had upshifted at the start of my treatment, but now I needed to downshift. I struggled to find my pace, but eventually found a middle gear, more vulnerable than I cared to be but also more human.

The second time I was diagnosed, the oncologist sat me down to give me the new installment of the old bad news. I surprised myself and my friends with a very different approach.

I did not rage, which isn’t to say I was happy about this predicament. And I had moved on from my original question to a new one: How can I go through this and still be the kind of person I want to be?

In the intervening years, I had come to realize that cancer victories are not won by personality types, but by a combination of doggedness (choosing the best physician, getting the right diagnosis and treatment), responsibility (doing your own research and taking care of your overall health), and plain old luck.

From that very first day of my second time around, I challenged myself not to shift into that “win at any cost” mentality. That’s where the gift of age and experience came to my aid, even if my older body did not. Over the years I had learned that life was not a series of choices between winners and losers — I knew that way of seeing things to be oversimplified, if not dead wrong. You can be stronger than an ox, never miss a day of work, or swim your lungs out and, damn it, still die.

I could become a jerk again and focus on the end point, or I could accept that the journey is the destination – which I did.

Two months after I had been diagnosed and two days before the surgeon was scheduled to excise my remaining testicle, I had a dream so vivid — “I am cancer-free!” — that I demanded to go on a “surveillance” protocol. Reluctantly my doctor agreed, but by year’s end I had “won” the debate when my so-called tumor was reclassified as a benign nodule.

The years had taught me much — both to listen to my body and to trust in its wisdom. And, most importantly, to find the courage to speak its truth — whether in the doctor’s office or out in the world.

Steven Petrow writes the Civil Behavior column for Booming, addressing questions about gay and straight etiquette for a boomer-age audience. You can find him on Facebook and Twitter.

You can follow Booming via RSS here or visit nytimes.com/booming.

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10 Arrested in Theft of Personal Data

International authorities, with some help from Facebook, have arrested 10 people accused of operating a network of infected computers that stole personal information from millions of victims.

The Justice Department said Tuesday night that the F.B.I. and international agencies were helped in their investigations by Facebook, whose users were among those targeted by the malware, or malicious software, over the last several years.

The agencies arrested people from Bosnia and Herzegovina, Britain, Croatia, Macedonia, New Zealand, Peru and the United States, the F.B.I. said.

The suspects used a chain of infected computers to form what was known as the Butterfly botnet, which spread a piece of malicious software called Yahos, officials said. Versions of the software have long been trafficked among criminals who spread it over social networks and by other means, compromising the security of infected PCs and letting criminals steal personal data, including credit card numbers.

In a statement, the Justice Department said variants of this kind of software had infected about 11 million computers and caused more than $850 million in losses. A Justice Department official said those figures referred to the cumulative damage from the long-running problem, not a measure of the damage done by the people who were arrested.

Mark Hammell, Facebook’s Internet threat researcher, said the company had begun investigating suspicious behavior on its service two years ago. The malware had hijacked some users’ accounts and posted links on their friends’ Facebook pages. A person who clicked on those links could download the software and infect his computer.

Facebook’s researchers reverse-engineered the software to understand how it worked, and eventually traced some of its activities to computer servers controlled by the suspects. That helped Facebook determine the identities of some of the people involved in the crime ring, Mr. Hammell said.

“We realized we didn’t have the ability to stop it completely, and at that point, we decided the best response was to escalate this to law enforcement,” he said in an interview. Two of the people who were arrested were the original authors of the malware, he noted. Facebook said its users made up only a small percentage of those who were infected.

Security firms and social networks are generally on the lookout for this particular form of malware, and software to detect and eliminate it has been available for years. The Justice Department urged computer users to take common-sense measures, like antivirus scanning, to guard against the risk of infections, and said people who suspect they have been victimized should file a complaint with the F.B.I.’s Internet crime complaint center at ic3.gov.

Facebook said users who were concerned about being infected could check their computers at on.fb.me/infectedMSE. The malware does not infect Apple computers, Facebook said.

Manos Antonakakis, director of academic research at Damballa, a company that specializes in fighting botnets, said the size of the Butterfly botnet was significant. It was more than double the size of the last major botnet that authorities took down last November, one that used a piece of malware called DNSChanger that had infected an estimated four million computers.

“This is a major achievement for law enforcement,” he said, “and we look forward to many things like this, so we can effectively tackle emerging botnets out there.”

But Dr. Antonakakis said the estimate of 11 million infected machines was probably high, because a computer could be counted as a new device each time it connected to a different network, like the Wi-Fi at a Starbucks or a home router.

The $850 million figure may also be high given that credit card companies typically wipe out fraudulent charges.

Peter G. Neumann, principal scientist at SRI International, an engineering research laboratory, was less excited about the arrests. He said that defeating this particular botnet did not solve the fundamental problem of computer security being too weak. Anybody could easily take the same software and create the botnet again, he said.

“You’re solving a problem that wouldn’t exist if the systems were designed properly,” he said.

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10 Arrested in Theft of Personal Data

International authorities, with some help from Facebook, have arrested 10 people accused of operating a network of infected computers that stole personal information from millions of victims.

The Justice Department said Tuesday night that the F.B.I. and international agencies were helped in their investigations by Facebook, whose users were among those targeted by the malware, or malicious software, over the last several years.

The agencies arrested people from Bosnia and Herzegovina, Britain, Croatia, Macedonia, New Zealand, Peru and the United States, the F.B.I. said.

The suspects used a chain of infected computers to form what was known as the Butterfly botnet, which spread a piece of malicious software called Yahos, officials said. Versions of the software have long been trafficked among criminals who spread it over social networks and by other means, compromising the security of infected PCs and letting criminals steal personal data, including credit card numbers.

In a statement, the Justice Department said variants of this kind of software had infected about 11 million computers and caused more than $850 million in losses. A Justice Department official said those figures referred to the cumulative damage from the long-running problem, not a measure of the damage done by the people who were arrested.

Mark Hammell, Facebook’s Internet threat researcher, said the company had begun investigating suspicious behavior on its service two years ago. The malware had hijacked some users’ accounts and posted links on their friends’ Facebook pages. A person who clicked on those links could download the software and infect his computer.

Facebook’s researchers reverse-engineered the software to understand how it worked, and eventually traced some of its activities to computer servers controlled by the suspects. That helped Facebook determine the identities of some of the people involved in the crime ring, Mr. Hammell said.

“We realized we didn’t have the ability to stop it completely, and at that point, we decided the best response was to escalate this to law enforcement,” he said in an interview. Two of the people who were arrested were the original authors of the malware, he noted. Facebook said its users made up only a small percentage of those who were infected.

Security firms and social networks are generally on the lookout for this particular form of malware, and software to detect and eliminate it has been available for years. The Justice Department urged computer users to take common-sense measures, like antivirus scanning, to guard against the risk of infections, and said people who suspect they have been victimized should file a complaint with the F.B.I.’s Internet crime complaint center at ic3.gov.

Facebook said users who were concerned about being infected could check their computers at on.fb.me/infectedMSE. The malware does not infect Apple computers, Facebook said.

Manos Antonakakis, director of academic research at Damballa, a company that specializes in fighting botnets, said the size of the Butterfly botnet was significant. It was more than double the size of the last major botnet that authorities took down last November, one that used a piece of malware called DNSChanger that had infected an estimated four million computers.

“This is a major achievement for law enforcement,” he said, “and we look forward to many things like this, so we can effectively tackle emerging botnets out there.”

But Dr. Antonakakis said the estimate of 11 million infected machines was probably high, because a computer could be counted as a new device each time it connected to a different network, like the Wi-Fi at a Starbucks or a home router.

The $850 million figure may also be high given that credit card companies typically wipe out fraudulent charges.

Peter G. Neumann, principal scientist at SRI International, an engineering research laboratory, was less excited about the arrests. He said that defeating this particular botnet did not solve the fundamental problem of computer security being too weak. Anybody could easily take the same software and create the botnet again, he said.

“You’re solving a problem that wouldn’t exist if the systems were designed properly,” he said.

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Eli Lilly to Conduct Additional Study of Alzheimer’s Drug

The drug maker Eli Lilly & Company said on Wednesday that it planned an additional study of an experimental Alzheimer’s drug that failed to improve the condition of people with the disease, saying that it remained hopeful about the drug’s prospects.

The newest study is expected to get under way in the third quarter of 2013 and will focus on patients with mild Alzheimer’s disease. Lilly released results of two clinical trials in August that showed the drug, called solanezumab, did not significantly improve either the cognition or the daily functioning of people with mild and moderate forms of the disease. But despite that failure, the results also gave some reason for hope: when patients with mild Alzheimer’s were separated out, the drug was shown to significantly slow their decline in cognition.

In a statement on Wednesday, the company said it decided not to pursue approval of the drug based on existing study results after it met with officials from the Food and Drug Administration. A Lilly executive said, however, that the company was still optimistic.

“We remain encouraged and excited by the solanezumab data,” David Ricks, a senior vice president at Lilly and president of Lilly Bio-Medicines, said in the statement. “We are committed to working with the F.D.A. and other regulatory authorities to bring solanezumab to the millions of patients and caregivers suffering from this devastating disease who urgently need this potential treatment.”

The Lilly drug is the second Alzheimer’s treatment to fail in clinical trials this year. Pfizer and Johnson & Johnson stopped development of a similar treatment, bapineuzumab, after it, too, was not shown to work. Both drugs target beta amyloid, a protein in the brain that is found in people with Alzheimer’s disease.

Lilly shares closed at $49, down 3.2 percent.

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Eli Lilly to Conduct Additional Study of Alzheimer’s Drug

The drug maker Eli Lilly & Company said on Wednesday that it planned an additional study of an experimental Alzheimer’s drug that failed to improve the condition of people with the disease, saying that it remained hopeful about the drug’s prospects.

The newest study is expected to get under way in the third quarter of 2013 and will focus on patients with mild Alzheimer’s disease. Lilly released results of two clinical trials in August that showed the drug, called solanezumab, did not significantly improve either the cognition or the daily functioning of people with mild and moderate forms of the disease. But despite that failure, the results also gave some reason for hope: when patients with mild Alzheimer’s were separated out, the drug was shown to significantly slow their decline in cognition.

In a statement on Wednesday, the company said it decided not to pursue approval of the drug based on existing study results after it met with officials from the Food and Drug Administration. A Lilly executive said, however, that the company was still optimistic.

“We remain encouraged and excited by the solanezumab data,” David Ricks, a senior vice president at Lilly and president of Lilly Bio-Medicines, said in the statement. “We are committed to working with the F.D.A. and other regulatory authorities to bring solanezumab to the millions of patients and caregivers suffering from this devastating disease who urgently need this potential treatment.”

The Lilly drug is the second Alzheimer’s treatment to fail in clinical trials this year. Pfizer and Johnson & Johnson stopped development of a similar treatment, bapineuzumab, after it, too, was not shown to work. Both drugs target beta amyloid, a protein in the brain that is found in people with Alzheimer’s disease.

Lilly shares closed at $49, down 3.2 percent.

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Study Shows a Pattern of Risky Loans by F.H.A.

A new and extensive analysis of 2.4 million loans insured by the Federal Housing Administration in recent years shows a pattern of risky lending that could generate $20 billion in losses and harm thousands of the nation’s most vulnerable borrowers. By ignoring risks in loans it insured in 2009 and 2010, the study concludes, the F.H.A. is imperiling both borrowers and taxpayers who stand behind the agency.

The analysis emerged less than a month after the F.H.A.’s auditor submitted a troubling report on the financial soundness of its insurance fund. In mid-November, the auditor estimated that the fund, which backs $1.1 trillion in mortgages, has a value of negative $13.5 billion. In other words, if it were to stop insuring loans today, the F.H.A. fund could not cover the losses anticipated on loans it has already insured.

The new study of the potential risks in recent F.H.A.-insured loans is illuminating because it provides a level of detail, including where government-backed loans are, that is usually missing from agency analyses. In addition, the report’s loss estimates are somewhat surprising given that the loans it examined were made after the mortgage crisis became evident.

The loan analysis was conducted by Edward Pinto, a resident fellow at the American Enterprise Institute, a conservative organization. But its findings were based entirely on foreclosure estimates made by the F.H.A.’s auditor as well as detailed individual loan data like ZIP codes and borrower credit scores.

Officials at the Department of Housing and Urban Development, which oversees the F.H.A., were briefed on the study’s findings earlier this week.

George Gonzalez, a spokesman for F.H.A., disputed the findings of the analysis. “The assertion that F.H.A. is setting up potential homeowners for failure by insuring 30-year, fixed-rate, fully documented loans for underserved borrowers is not supported by the information presented,” he said. “Selective use of F.H.A. data ignores that F.H.A. has successfully provided access to mortgage financing for millions of creditworthy borrowers for almost 80 years.”

The mission of the F.H.A., created in 1934, is to provide “homeownership opportunities for first-time homebuyers and other borrowers who would not otherwise qualify for conventional mortgages on affordable terms, as well as for those who live in underserved areas where mortgages may be harder to get.” It was founded to save homeowners from default during the Great Depression.

In recent years, the F.H.A. has been increasing its participation in the market. After the mortgage crisis, traditional lenders withdrew from the business and borrowing to buy a home became much more difficult. The F.H.A., as well as Fannie Mae and Freddie Mac, have stepped in to fill that void. While Fannie and Freddie have tightened their loan standards, the F.H.A.’s underwriting requirements have remained liberal.

To receive F.H.A. backing on their loans, borrowers must have a credit score of at least 580 out of a possible 850, and they are required to put down at least 3.5 percent. F.H.A. allows the borrowers whose loans it insures to have a monthly housing debt payment of around 30 percent of their incomes.

Still, 40 percent of the 2010 loans in the F.H.A.’s insurance portfolio were made to borrowers whose total monthly debt payments were greater than 50 percent of their monthly incomes, the study found, a dangerous level.

F.H.A. does not adequately monitor the risks in the loans it backs, the study said. Moreover, it does not charge guarantee fees appropriately adjusted to reflect these risks. For example, the study notes that F.H.A. levies the same insurance premium for a borrower with a 3.5 percent down payment, a 580 credit score and a 50 percent total debt-to-income level as one who puts 20 percent down, has a 720 credit score and 25 percent debt-to-income.

The concentration of loans backed by the F.H.A. in areas of subpar family incomes is another warning flag, according to the study. Of the 2.4 million loans studied, some 44 percent were made to borrowers in ZIP codes where the median family income was below that of the corresponding metropolitan area. These loans will most likely generate foreclosure rates averaging 15 percent, the study concluded, well above the overall 9.6 percent average the F.H.A.’s auditor has projected for those years.

That so many F.H.A.-insured loans are going to at-risk families concerns Mr. Pinto. “The F.H.A.’s underwriting policies encourage low- and moderate-income families with low credit scores to make a risky financing decision,” he said, “one combining a low score with a 30-year loan term and a low down payment. This sets up for failure the very families and communities it is the F.H.A.’s mission to help.”

Because of the potential for borrower harm that Mr. Pinto sees in F.H.A.’s practices, he said the agency should reduce mortgage terms to 20 years, so that homeowners can build up equity more easily. Or the agency should insure loans only for borrowers who carry lower overall debt loads.

“The F.H.A. should set loan terms that help homeowners establish meaningful equity in their homes with the goal of ending their dependence on F.H.A. lending,” he said.

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North Korea Launches Rocket, Defying Likely Sanctions

SEOUL, South Korea — North Korea defied the likelihood of more sanctions by the United Nations Security Council to launch a rocket on Wednesday, demonstrating that the government of its new leader, Kim Jong-un, was pressing ahead to master the technology needed to deliver a nuclear warhead on intercontinental ballistic missiles.

The Unha-3, or Galaxy-3, rocket blasted off from the Sohae Satellite Launching Station in Tongchang-ri on North Korea’s western coast near China on Wednesday morning, a spokesman for South Korea’s Defense Ministry said.

“That’s all we can confirm right now,” the spokesman said, speaking on condition of anonymity until his government made an official announcement.

It was not immediately known whether the rocket has succeeded in fulfilling North Korea’s stated goal of putting a satellite into orbit.

North Korea has said its three-stage rocket would carry an earth-observation satellite named Kwangmyongsong-3, or Shining Star-3, and that it was exercising its right to peaceful activity in space.

But Washington and its allies have said they think that North Korea’s rocket program has less to do with putting a satellite into orbit than with developing a delivery vehicle for a nuclear warhead and trying to turn the country into a more urgent threat that Washington must deal with by offering diplomatic and economic concessions.

While North Korea may still have other technological thresholds to cross, like the miniaturizing of its nuclear weapons, a successful launching of a satellite into orbit would suggest that the country had overcome a major hurdle in its efforts to demonstrate its potential of mating its growing nuclear weapons program with intercontinental ballistic missile capability.

A failure would be an embarrassment for the young Mr. Kim, who has been struggling to establish himself a new North Korean leader hailed at home and feared abroad. Whether the launching was successful or not, Mr. Kim, by attempting a second rocket launching in the first year of his rule despite international condemnations, was dashing hopes among some analysts that he might soften North Korea’s confrontational stance. Instead, he was seen as intent on bolstering his father’s main legacy of nuclear weapons and long-range missile programs to justify his own hereditary rule.

Only Monday, it told the rest of the world that it had found a technical glitch with its rocket and needed until Dec. 29 to fix the problem and carry out the launch. . Outside analysts have been speculating what might be going on behind the dark cover North Korean engineers had put up around the launching pad to prevent United States spy satellites from watching.

“A successful test would raise as a top-line national security issue for the Obama administration the specter of a direct North Korean threat to the U.S. homeland,” Victor D. Cha and Ellen Kim wrote in a recent analysis posted on the Web site of the Center For Strategic and International Studies.

Mr. Kim hardly needed another failure. The North’s first rocket launched since he took over following the death of his father a year ago broke apart shortly after blast-off in April, forcing his regime to admit to the failure in front of the foreign journalists it had invited to watch the test. This time, North Korea did not invite foreign journalists. Nor did the government announce the launching plan to its domestic audience. South Korean officials said this suggested that the regime intended to cover it up if the satellite launching failed or declare the launching a success regardless of the outcome, as it had before.

The missile capabilities of a country as opaque as North Korea are notoriously hard to assess. United States and South Korean officials have said that all of the North’s four multiple-stage rockets previously launched have exploded in mid-air or failed in their stated goal of thrusting a satellite into orbit. Still, then-Defense Secretary Robert M. Gates said in early 2011 that North Korea was within five years of being able to strike the continental United States with an intercontinental ballistic missile.

Wednesday’s unusual winter-time rocket launching came five days before the one-year anniversary of the death of the Mr. Kim’s father, Kim, Jong-il, on Dec. 17, which his son tried to mark with a fanfare aimed at showcasing his dynasty’s achievement in empowering the small and impoverished nation.

It also came a week before its rival, South Korea, was scheduled to elect its new president on Dec. 19.

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