Many Cruise Ship Lack Backup Power Systems, Vexing Regulators


Denis Poroy/Associated Press


The Carnival Splendor cruise ship was towed into San Diego Bay in 2010, after a fire destroyed its electrical systems.







It is becoming a familiar tale: When the cruise ship was towed into port, the endless hours for passengers of sleeping on deck and going without electricity or toilets were finally over.




“It was really hell,” said Bernice Spreckman, who is 77 and lives in Yonkers, N.Y. “I used my life jacket, which was flashing with a little light on it, to find a bathroom it was so dark.”


Ms. Spreckman was not among the 4,200 people aboard the Carnival Triumph who this month endured five days of sewage-soaked carpets and ketchup sandwiches. Her trial at sea came in 2010, on another ship run by Carnival Cruises, called the Splendor, which carried 4,500 passengers.


On both ships, fires broke out below decks, destroying the electrical systems and leaving them helpless. A preliminary Coast Guard inquiry into the Splendor found glaring deficiencies in its firefighting operations, including manuals that called for crew members to “pull” valves that were designed to turn.


But more than two years after the episode, the final report about what happened on the Splendor has yet to appear, a reflection of what critics say is a pattern of international regulatory roulette that governs cruise ship safety.


While the Splendor was based in the United States, the ship was legally registered in Panama, meaning the Panamanian Maritime Authority had the right to lead the investigation. But after the 2010 fire, Panamanian regulators chose to have the Coast Guard take over the inquiry. Then, officials in both countries apparently spent months trading drafts of their reports.


One official in Panama said the authority had completed its review of the Splendor report in October 2012. But a Coast Guard spokeswoman, Lisa Novak, said it still had not “finalized” the report. In the case of the Carnival Triumph, the regulatory scene will shift to the Bahamas, where that ship was registered.


In a recent letter to Coast Guard officials, Senator Jay Rockefeller, Democrat of West Virginia, said that cruise ships seemed to have two separate lives. Only during days near port are they closely monitored.


“Once they are beyond three nautical miles from shore, the world is theirs,” said the letter from Senator Rockefeller, who has headed recent inquiries into cruise ship safety.


Cruise industry officials point out that seaborne vacations are extremely safe and that some 20 million people go on cruises annually, with few problems. The most glaring exception to that record occurred last year when a vessel operated by a subsidiary of Carnival, the Costa Concordia, ran aground off the coast of Italy, resulting in 32 deaths.


In the Triumph’s case, the Coast Guard has said that the ship’s safety equipment failed to contain the blaze. And both the Triumph and the Splendor returned from their aborted voyages without serious injuries to passengers or crew.


But those successes also underscore what most travelers do not realize when they book cruises: nearly all ships lack backup systems to help them return to port should power fail because to install them would have cost operators more money.


The results are repeated episodes involving dead ships, with all the discomforts and potential dangers such situations can bring. In another case, in late 2012, the Costa Allegra cruise ship, a sister ship of the Concordia, lost power after a fire in the generator room and it had to be towed under guard from its location in the Indian Ocean.


In many ways, passengers aboard boats like the Triumph and Splendor were lucky because their ships were disabled in calm weather, when instead they could have been knocked out during storms, or when they were far out at sea or in pirate-infested waters, experts said.


“Anything that knocks a ship dead in the water is serious,” said Mark Gaouette, a safety expert and former Navy officer.


Read More..

The Lede: Reeva Steenkamp, Steve Biko and the Quest for Justice in South Africa

LONDON – The title of the presiding judge 35 years ago was the same, chief magistrate of Pretoria, and the venue for the hearing, a converted synagogue, was not far from the modern courthouse seen on television screens around the world in recent days as Oscar Pistorius, the gold medal-winning Paralympic athlete, fought for bail in the killing of his girlfriend, Reeva Steenkamp.

The case that unfolded in the last weeks of 1977, like the one featuring Mr. Pistorius, centered on a death that captured global attention. Then, too, it was the role of the chief magistrate, a jurist of relatively minor standing in South Africa’s legal system, to weigh whether it was a case of murder or mishap. Then, too, there were constituencies, inside the courtroom and beyond, that clamored passionately for their version of the truth.

The similarities – and dissimilarities – will have pressed in on anyone who was present in the Pretoria courtroom those decades ago, when the proceeding involved was an inquest, and the death that of Steve Biko, a 30-year-old black activist who was a popular youth leader of the anti-apartheid movement. By the miserable manner of his dying, alone, naked, and comatose on the floor of a freezing prison cell, Mr. Biko became, in death still more than in life, a powerful force for an end to South Africa’s institutionalized system of racial repression.

A British television report from South Africa in 1977, eight days after Steve Biko, an anti-apartheid activist, was beaten to death in police custody.

The two cases, of course, will find widely different places on history’s ladder. Mr. Pistorius, awarded bail on Friday after a hearing that was sensational for what it revealed of his actions in shooting Ms. Steenkamp, and for the raw emotions the athlete displayed in the dock, became a global celebrity in recent years for his feats as the Blade Runner, a track star who overcame the disability of being born with no bones in his lower legs.

But for all that it has been a shock to the millions who have seen his running as a parable for triumph in adversity, Mr. Pistorius’s tragedy — and still more, Ms. Steenkamps’s — has been a personal one. Mr. Biko’s death was considered at the time, as it has been ever since, as a watershed in the history of apartheid, a grim milestone among many others along South Africa’s progress towards black majority rule, which many ranked as the most inspiriting event in the peacetime history of the 20th-century when it was finally achieved in 1994.

Still, for a reporter who covered the Biko inquest for the Times as the paper’s South Africa correspondent through the turbulent years of the 1970’s, there were strong resonances in the week’s televised proceedings in Pretoria. Among them was the sheer scale of the media coverage, and the display of how live-by-satellite broadcasting and the digitalization of the print press, with computers, cellphones and Twitter feeds, have globalized the news business.

Oscar Pistorius facing the media during his bail hearing this week in Pretoria.

For the Pistorius hearing, there was a frenzied, tented camp of television crews outside the court, a crush among reporters struggling to get into the hearing, and platoons of studio commentators eager to have their say.

The crush among reporters outside the bail hearing for Oscar Pistorius this week in Pretoria.

On each of the 13 days the Biko inquest was in session, I had no trouble finding myself a seat in the airy courtroom. I took my lunch quietly with members of the Biko family’s legal team, and loitered uneasily during adjournments in an outside passageway, eavesdropping on the policemen who were Mr. Biko’s captors in his final days as they fine-tuned the testimony they were to give in court.

In the Pistorius case, the police again emerged poorly, having, as it seemed, bungled aspects of the forensic investigation in ways that could complicate the prosecution’s case that Ms. Steenkamp’s death was a case of premeditated murder — and having assigned the case to an officer who turned out to be under investigation in a case of attempted murder himself. But nothing in that bungling could compare with the sheer wretchedness of the security police officers in the Biko case, who symbolized, in their brutal and callous treatment of a defenseless man, and in the jesting about it I heard in that courtroom passageway, just how far below human decency apartheid had descended.

There was, too, the extraordinary contrast in the deportment of the magistrates in their rulings in the two cases, and what that said about the different South Africas of then and now. Desmond Nair, presiding at the Pistorius hearing, took more than two hours to review the evidence in the killing of Ms. Steenkamp, swinging back and forth in a meandering — and often bewildering — fashion between the contending accounts of Ms. Steenkamp’s death offered by Mr. Pistorius’s legal counsel and those put forward by the police.

Marthinus J. Prins, the chief magistrate in the Biko inquest, took an abrupt three minutes to deliver his finding, a numbing, 120-word exculpation of the policemen and government doctors who ushered Mr. Biko to his death on the stone-flagged floor of the Pretoria Central Prison. “The court finds the available evidence does not prove the death was brought about by any act or omission involving any offense by any person,” Mr. Prins said, reading hurriedly from a prepared statement before leaving the courtroom and slipping away by a rear door.

In finding that nobody was to blame in the black leader’s death, the magistrate brushed aside testimony suggesting what the policemen and doctors involved acknowledged many years later to have been true, when they petitioned for amnesty under the Truth and Reconciliation Commission process that sought to heal the wounds of apartheid: that Mr. Biko had been beaten in police custody, suffering a severe brain injury that was left untreated until he died.

The utter lack of compassion, and of anything resembling justice, was expressed in the dull-eyed satisfaction of Mr. Prins when I caught up with him an hour or so after the verdict in his vast, dingy office a few blocks from the courtroom.

“To me, it was just another death,” he said, pulling off his spectacles and rubbing his eyes. “It was just a job, like any other.”

Mr. Prins, who rose to his position through the apartheid bureaucracy, without legal training, appeared at that moment, as he had throughout the inquest, to be disturbingly sincere, yet utterly blinded. Faithful servant of the apartheid system, he had given it the clean bill of health it demanded, and freed the police to continue treating black political detainees as they chose. Among the country’s rulers, the verdict was embraced as a triumphal vindication, while those who chose to see matters more clearly understood it to be a tolling of history’s bell.

Listening to Mr. Nair delivering his ruling in the Pistorius case, there will have been many, in South Africa and abroad, who will have found his monologue on Friday confusing, circular in its argument, and numbingly repetitive. As an exercise in jurisprudence, it was something less than a stellar advertisement for a South African legal system that, at its best, is a match for any in the world, as it was back in 1977.

Sydney Kentridge, lead counsel for the Biko family at the inquest, moved seamlessly to England in the years that followed, and became, by widespread reckoning among his peers, Britain’s most distinguished barrister, still practicing in London now, at 90.

In the 2011 Steve Biko Lecture at the University of Cape Town, Sydney Kentridge spoke about the inquest into his death in 1977.

A host of other South African expatriates who fled apartheid have made outstanding careers as lawyers and judges in Britain, the United States, and elsewhere in the English-speaking world, but many others stayed at home, and continue to serve a court system that has fared rather better, in recent years, than many other institutions in the new South African state.

But even if Mr. Nair, in granting Mr. Pistorius bail, seemed no match in the elegance of his argument for South Africa’s finest legal minds, he nonetheless did South Africa proud. In the chaotic manner of his ruling, which sounded at times like a man grabbing for law books off a shelf, he was, indisputably, doing something that Mr. Prins, all those years before, had not even attempted: looking for ways to steer his course to justice. People will disagree whether Mr. Pistorius deserved the break he got in walking free from that courtroom, but nobody could reasonably contest that what we saw in his case was the working of a legal system that strives for justice, and not to rubber-stamp the imperatives of the state.

This post was revised to make it clear that Sydney Kentridge, the lawyer who represented Steve Biko’s family in 1977 and practiced law well into his 80s, is now 90.

Read More..

Major Banks Aid in Payday Loans Banned by States


Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.


With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.


While the banks, which include giants like JPMorgan Chase, Bank of America and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals.


“Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn’t operate,” said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.


The banking industry says it is simply serving customers who have authorized the lenders to withdraw money from their accounts. “The industry is not in a position to monitor customer accounts to see where their payments are going,” said Virginia O’Neill, senior counsel with the American Bankers Association.


But state and federal officials are taking aim at the banks’ role at a time when authorities are increasing their efforts to clamp down on payday lending and its practice of providing quick money to borrowers who need cash.


The Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau are examining banks’ roles in the online loans, according to several people with direct knowledge of the matter. Benjamin M. Lawsky, who heads New York State’s Department of Financial Services, is investigating how banks enable the online lenders to skirt New York law and make loans to residents of the state, where interest rates are capped at 25 percent.


For the banks, it can be a lucrative partnership. At first blush, processing automatic withdrawals hardly seems like a source of profit. But many customers are already on shaky financial footing. The withdrawals often set off a cascade of fees from problems like overdrafts. Roughly 27 percent of payday loan borrowers say that the loans caused them to overdraw their accounts, according to a report released this month by the Pew Charitable Trusts. That fee income is coveted, given that financial regulations limiting fees on debit and credit cards have cost banks billions of dollars.


Some state and federal authorities say the banks’ role in enabling the lenders has frustrated government efforts to shield people from predatory loans — an issue that gained urgency after reckless mortgage lending helped precipitate the 2008 financial crisis.


Lawmakers, led by Senator Jeff Merkley, Democrat of Oregon, introduced a bill in July aimed at reining in the lenders, in part, by forcing them to abide by the laws of the state where the borrower lives, rather than where the lender is. The legislation, pending in Congress, would also allow borrowers to cancel automatic withdrawals more easily. “Technology has taken a lot of these scams online, and it’s time to crack down,” Mr. Merkley said in a statement when the bill was introduced.


While the loans are simple to obtain — some online lenders promise approval in minutes with no credit check — they are tough to get rid of. Customers who want to repay their loan in full typically must contact the online lender at least three days before the next withdrawal. Otherwise, the lender automatically renews the loans at least monthly and withdraws only the interest owed. Under federal law, customers are allowed to stop authorized withdrawals from their account. Still, some borrowers say their banks do not heed requests to stop the loans.


Ivy Brodsky, 37, thought she had figured out a way to stop six payday lenders from taking money from her account when she visited her Chase branch in Brighton Beach in Brooklyn in March to close it. But Chase kept the account open and between April and May, the six Internet lenders tried to withdraw money from Ms. Brodsky’s account 55 times, according to bank records reviewed by The New York Times. Chase charged her $1,523 in fees — a combination of 44 insufficient fund fees, extended overdraft fees and service fees.


For Subrina Baptiste, 33, an educational assistant in Brooklyn, the overdraft fees levied by Chase cannibalized her child support income. She said she applied for a $400 loan from Loanshoponline.com and a $700 loan from Advancemetoday.com in 2011. The loans, with annual interest rates of 730 percent and 584 percent respectively, skirt New York law.


Ms. Baptiste said she asked Chase to revoke the automatic withdrawals in October 2011, but was told that she had to ask the lenders instead. In one month, her bank records show, the lenders tried to take money from her account at least six times. Chase charged her $812 in fees and deducted over $600 from her child-support payments to cover them.


“I don’t understand why my own bank just wouldn’t listen to me,” Ms. Baptiste said, adding that Chase ultimately closed her account last January, three months after she asked.


A spokeswoman for Bank of America said the bank always honored requests to stop automatic withdrawals. Wells Fargo declined to comment. Kristin Lemkau, a spokeswoman for Chase, said: “We are working with the customers to resolve these cases.” Online lenders say they work to abide by state laws.


Read More..

Off the Dribble: Salley Offers a Healthy Assist

When Carmelo Anthony went on a vegetarian diet a few weeks ago and caused the biggest culinary conundrum in sports since fried chicken and beer had starring roles in the Red Sox clubhouse, John Salley could only shake his head.

Anthony’s diet was blamed for his sluggish play and the Knicks’ 3-4 record during the 15-day fast.

Anthony admitted that his body felt “depleted out there.”

But Salley, the former N.B.A. player, said that if Anthony had eaten a vegetarian diet correctly, he would have felt invigorated and anything but depleted.

And not just for two weeks but for the entire season.

For Salley, many of his salad days in the N.B.A. really were salad days. Particularly kale salad.

Salley, a 6-foot-11 power forward and center, became a vegetarian in January 1991 after he felt he had to make changes in his lifestyle, much like Anthony’s stated desire for “clarity in his life.”

Vegetarians do not eat meat, fish or poultry, but may eat dairy products like cheese, eggs, yogurt or milk.

Salley had read a story about the Celtics’ Robert Parish, whom he had always admired, and his interest in yoga and a red-meat-free diet.

While Parish’s regimen was not total vegetarian, he recently said that it made a difference in his career, helping him withstand the rigors of playing center against behemoths in the paint.

“My diet consisted of chicken, fish, seafood, salad, pasta and organic when possible,” he said. “I had very little sugar and drank a gallon of water every day. I also ate rice and beans, peas, cabbage, mustard, collards greens and assorted nuts. I would always focus on healthy eating. My success depended on my body and I tried to do right by it. ”

His body responded with 20 years of service in his Hall of Fame career. Parish retired at 43.

Salley was striving for similar health and success.

“I was 27, and I felt I had to change my life,” Salley said. “My knees were sore, my joints ached, I had back problems and my cholesterol was 275. ”

When he was with the Pistons, Salley visited a nutritionist in Detroit who advised him to eliminate fried foods and adopt a macrobiotic diet (grains and vegetables).

Salley, invigorated and healthy, had his best season in 1991. A defensive specialist, he had more energy and quickness and averaged a career best 9.5 points a game.

He kept his healthy diet a secret from his burly Bad Boy Piston steak-and-pork-chop teammates, who included Bill Laimbeer, Rick Mahorn and Dennis Rodman.

“I would tell them all the time,” Salley said, “if you go into a steak house it’s not that they have a certain thing inside the dead flesh or they cook it differently. They make it the same way everybody else does. All you’re doing is eating dead food.”

Salley would search out health food restaurants with a few tables or just counter service for his diet staples of quinoa, kale, spinach, stir fried vegetables, brown rice and wheatgrass on the menu.

“It was hard to find places in 1991,” he said. “So many times I would go into restaurants and ask the cook to steam my vegetables and make me the lightest fish.”

But it was worth it.

“I was playing so well it was crazy,” he said.

During his career, Salley, who retired in 2000, won four championships with the Detroit Pistons, the Chicago Bulls and the Los Angeles Lakers.

He now follows a vegan diet, which eliminates all dairy foods in addition to animal products.

“I’m eating raw,” said Salley, 48. “And I make all my food with no sugar, no salt and no oil.”

Salley is familiar with Anthony’s foray into vegetarian living. The Knicks star followed the Daniel Fast based on the book of Daniel in the Bible, which espouses a diet of mainly liquid and vegetables.

“He felt depleted because you need to find a natural source of vitamin B12,” Salley said.

B12 is not found in any significant amounts in plant food, and a deficiency can cause fatigue, weakness and tingling in the legs.

It can also cause irritability. Anthony said his diet might have caused him to lash out at Kevin Garnett in a game against the Boston Celtics.

“He didn’t take any supplements to help his body,” Salley said. “He did not get his body to heal. It’s like cutting yourself and not putting a Band-Aid on. He just got part of the plan right.”

Salley is working to make sure children get the plan right with food choices. He spreads the word about healthy eating in the community, having lobbied Congress for more vegetarian options in school lunches.

Although Anthony may have struggled to maintain his vegetarian diet, other N.B.A players and athletes have embraced it.

James Jones of the Miami Heat and Anthony’s teammate A’mare Stoudemire are vegetarians.

Baseball’s Prince Fielder, the triathlete Brendan Brazier, the mixed martial artist Mac Danzig, the bodybuilder Derek Tresize and the tennis player Serena Williams are among athletes who are vegans or vegetarians.

Dr. Joel Kahn, a clinical professor of medicine at Wayne State University School of Medicine and medical director of wellness programs, preventive cardiology, and cardiac rehabilitation at Detroit Medical Center, has counseled Salley and other athletes about the benefits of vegan and vegetarian diets.

“A plant-based, whole-food diet low on sugar and gluten is very anti-inflammatory and ideal for rapid recovery from workouts,” he said.

Read More..

Off the Dribble: Salley Offers a Healthy Assist

When Carmelo Anthony went on a vegetarian diet a few weeks ago and caused the biggest culinary conundrum in sports since fried chicken and beer had starring roles in the Red Sox clubhouse, John Salley could only shake his head.

Anthony’s diet was blamed for his sluggish play and the Knicks’ 3-4 record during the 15-day fast.

Anthony admitted that his body felt “depleted out there.”

But Salley, the former N.B.A. player, said that if Anthony had eaten a vegetarian diet correctly, he would have felt invigorated and anything but depleted.

And not just for two weeks but for the entire season.

For Salley, many of his salad days in the N.B.A. really were salad days. Particularly kale salad.

Salley, a 6-foot-11 power forward and center, became a vegetarian in January 1991 after he felt he had to make changes in his lifestyle, much like Anthony’s stated desire for “clarity in his life.”

Vegetarians do not eat meat, fish or poultry, but may eat dairy products like cheese, eggs, yogurt or milk.

Salley had read a story about the Celtics’ Robert Parish, whom he had always admired, and his interest in yoga and a red-meat-free diet.

While Parish’s regimen was not total vegetarian, he recently said that it made a difference in his career, helping him withstand the rigors of playing center against behemoths in the paint.

“My diet consisted of chicken, fish, seafood, salad, pasta and organic when possible,” he said. “I had very little sugar and drank a gallon of water every day. I also ate rice and beans, peas, cabbage, mustard, collards greens and assorted nuts. I would always focus on healthy eating. My success depended on my body and I tried to do right by it. ”

His body responded with 20 years of service in his Hall of Fame career. Parish retired at 43.

Salley was striving for similar health and success.

“I was 27, and I felt I had to change my life,” Salley said. “My knees were sore, my joints ached, I had back problems and my cholesterol was 275. ”

When he was with the Pistons, Salley visited a nutritionist in Detroit who advised him to eliminate fried foods and adopt a macrobiotic diet (grains and vegetables).

Salley, invigorated and healthy, had his best season in 1991. A defensive specialist, he had more energy and quickness and averaged a career best 9.5 points a game.

He kept his healthy diet a secret from his burly Bad Boy Piston steak-and-pork-chop teammates, who included Bill Laimbeer, Rick Mahorn and Dennis Rodman.

“I would tell them all the time,” Salley said, “if you go into a steak house it’s not that they have a certain thing inside the dead flesh or they cook it differently. They make it the same way everybody else does. All you’re doing is eating dead food.”

Salley would search out health food restaurants with a few tables or just counter service for his diet staples of quinoa, kale, spinach, stir fried vegetables, brown rice and wheatgrass on the menu.

“It was hard to find places in 1991,” he said. “So many times I would go into restaurants and ask the cook to steam my vegetables and make me the lightest fish.”

But it was worth it.

“I was playing so well it was crazy,” he said.

During his career, Salley, who retired in 2000, won four championships with the Detroit Pistons, the Chicago Bulls and the Los Angeles Lakers.

He now follows a vegan diet, which eliminates all dairy foods in addition to animal products.

“I’m eating raw,” said Salley, 48. “And I make all my food with no sugar, no salt and no oil.”

Salley is familiar with Anthony’s foray into vegetarian living. The Knicks star followed the Daniel Fast based on the book of Daniel in the Bible, which espouses a diet of mainly liquid and vegetables.

“He felt depleted because you need to find a natural source of vitamin B12,” Salley said.

B12 is not found in any significant amounts in plant food, and a deficiency can cause fatigue, weakness and tingling in the legs.

It can also cause irritability. Anthony said his diet might have caused him to lash out at Kevin Garnett in a game against the Boston Celtics.

“He didn’t take any supplements to help his body,” Salley said. “He did not get his body to heal. It’s like cutting yourself and not putting a Band-Aid on. He just got part of the plan right.”

Salley is working to make sure children get the plan right with food choices. He spreads the word about healthy eating in the community, having lobbied Congress for more vegetarian options in school lunches.

Although Anthony may have struggled to maintain his vegetarian diet, other N.B.A players and athletes have embraced it.

James Jones of the Miami Heat and Anthony’s teammate A’mare Stoudemire are vegetarians.

Baseball’s Prince Fielder, the triathlete Brendan Brazier, the mixed martial artist Mac Danzig, the bodybuilder Derek Tresize and the tennis player Serena Williams are among athletes who are vegans or vegetarians.

Dr. Joel Kahn, a clinical professor of medicine at Wayne State University School of Medicine and medical director of wellness programs, preventive cardiology, and cardiac rehabilitation at Detroit Medical Center, has counseled Salley and other athletes about the benefits of vegan and vegetarian diets.

“A plant-based, whole-food diet low on sugar and gluten is very anti-inflammatory and ideal for rapid recovery from workouts,” he said.

Read More..

Major Banks Aid in Payday Loans Banned by States


Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.


With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.


While the banks, which include giants like JPMorgan Chase, Bank of America and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals.


“Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn’t operate,” said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.


The banking industry says it is simply serving customers who have authorized the lenders to withdraw money from their accounts. “The industry is not in a position to monitor customer accounts to see where their payments are going,” said Virginia O’Neill, senior counsel with the American Bankers Association.


But state and federal officials are taking aim at the banks’ role at a time when authorities are increasing their efforts to clamp down on payday lending and its practice of providing quick money to borrowers who need cash.


The Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau are examining banks’ roles in the online loans, according to several people with direct knowledge of the matter. Benjamin M. Lawsky, who heads New York State’s Department of Financial Services, is investigating how banks enable the online lenders to skirt New York law and make loans to residents of the state, where interest rates are capped at 25 percent.


For the banks, it can be a lucrative partnership. At first blush, processing automatic withdrawals hardly seems like a source of profit. But many customers are already on shaky financial footing. The withdrawals often set off a cascade of fees from problems like overdrafts. Roughly 27 percent of payday loan borrowers say that the loans caused them to overdraw their accounts, according to a report released this month by the Pew Charitable Trusts. That fee income is coveted, given that financial regulations limiting fees on debit and credit cards have cost banks billions of dollars.


Some state and federal authorities say the banks’ role in enabling the lenders has frustrated government efforts to shield people from predatory loans — an issue that gained urgency after reckless mortgage lending helped precipitate the 2008 financial crisis.


Lawmakers, led by Senator Jeff Merkley, Democrat of Oregon, introduced a bill in July aimed at reining in the lenders, in part, by forcing them to abide by the laws of the state where the borrower lives, rather than where the lender is. The legislation, pending in Congress, would also allow borrowers to cancel automatic withdrawals more easily. “Technology has taken a lot of these scams online, and it’s time to crack down,” Mr. Merkley said in a statement when the bill was introduced.


While the loans are simple to obtain — some online lenders promise approval in minutes with no credit check — they are tough to get rid of. Customers who want to repay their loan in full typically must contact the online lender at least three days before the next withdrawal. Otherwise, the lender automatically renews the loans at least monthly and withdraws only the interest owed. Under federal law, customers are allowed to stop authorized withdrawals from their account. Still, some borrowers say their banks do not heed requests to stop the loans.


Ivy Brodsky, 37, thought she had figured out a way to stop six payday lenders from taking money from her account when she visited her Chase branch in Brighton Beach in Brooklyn in March to close it. But Chase kept the account open and between April and May, the six Internet lenders tried to withdraw money from Ms. Brodsky’s account 55 times, according to bank records reviewed by The New York Times. Chase charged her $1,523 in fees — a combination of 44 insufficient fund fees, extended overdraft fees and service fees.


For Subrina Baptiste, 33, an educational assistant in Brooklyn, the overdraft fees levied by Chase cannibalized her child support income. She said she applied for a $400 loan from Loanshoponline.com and a $700 loan from Advancemetoday.com in 2011. The loans, with annual interest rates of 730 percent and 584 percent respectively, skirt New York law.


Ms. Baptiste said she asked Chase to revoke the automatic withdrawals in October 2011, but was told that she had to ask the lenders instead. In one month, her bank records show, the lenders tried to take money from her account at least six times. Chase charged her $812 in fees and deducted over $600 from her child-support payments to cover them.


“I don’t understand why my own bank just wouldn’t listen to me,” Ms. Baptiste said, adding that Chase ultimately closed her account last January, three months after she asked.


A spokeswoman for Bank of America said the bank always honored requests to stop automatic withdrawals. Wells Fargo declined to comment. Kristin Lemkau, a spokeswoman for Chase, said: “We are working with the customers to resolve these cases.” Online lenders say they work to abide by state laws.


Read More..

At War Blog: A Modern Medal Is Met with Modern Protest

It is only fitting that the announcement of a medal created for the digital age spawned its own Internet memes. As soon as Defense Secretary Leon E. Panetta announced the creation of the new Distinguished Warfare medal — immediately dubbed the Drone Medal — images such as the one below began appearing on blog after blog; in tweet after retweet.

The medal, Mr. Panetta explained, is intended to provide “recognition for the extraordinary achievements that directly impact on combat operations, but that do not involve acts of valor or physical risk that combat entails,” such as those piloting Predator or Reaper drones from a remote trailer. The medal has sparked much Photoshopped humor and heated online debate, much of it focusing on the Pentagon’s decision to rank it above the Purple Heart and the Bronze Star, both given to troops in combat.

As the Distinguished Warfare medal heads toward production, more than 13,000 people have signed an online petition demanding that the status of the medal be revised.

“Bronze Stars are commonly awarded with a Valor device in recognition of a soldier’s service in the heat of combat while on the ground in the theater of operation,” the petition states. “Under no circumstance should a medal that is designed to honor a pilot, that is controlling a drone via remote control, thousands of miles away from the theater of operation, rank above a medal that involves a soldier being in the line of fire on the ground.”

This was a sentiment echoed by many on Twitter:

Similar commentary could be found in opinion pieces on news sites, such as The Business Insider, which called it “The Most Ridiculous Thing The Pentagon Could Do” and in longer anecdotes of protest on the comments section of the United States Air Force announcement:

2/21/2013 12:28:33 AM ET
I don’t like this at all my father was in ground combat from 1944 to 1945 in France Germany and Czechoslovakia his highest medal was the bronze star I have a copy of the award hanging in my living room I can’t even imagine what he went through. Now some guy sitting in an air conditioned building in Nevada is going to get a medal rated higher than the bronze star and the purple heart. I don’t care how many terrorists he killed or how many hours he sat in front of that screen how motivated he is or how well he does his job it is inconcievable to me that he or she can possibly earn a medal rated this high. Giving them a medal is ok but lets not degrade the honor of others who have risked their lives and in some cases actually been wounded in combat serving our country.
Michael Sharkey, Trier Germany

According to the Defense Department, there is no controversy about the medal among military leaders. Each branch is in the process of drawing up their own specific guidelines and within two for four months, the first Distinguished Warfare Medals will be awarded.

“This is not a medal that will be awarded with the frequency of these other ones,”  Lt. Cmdr. Nate Christensen, a Defense Department spokesman, told At War, when asked why the medal should be above the Bronze Star.

Although there were some forms of recognition for drone operators and cyber operators before, none recognized truly exceptional acts of service, he said.

“This medal is visionary because it fills a void that existed before,” he said.

Although few people other than Pentagon officials came to the defense of the medal, some did circulate a piece by Maj. David Blair in the Air and Space Power Journal outlining the case for medals for drone operators.

For instance, consider a scenario in which Predator crews track a critical high­ value target to a safe house where he is then kinetically struck by a dynami­cally retasked F­16. In this case, both platforms’ crews perform their du­ties with excellence and professionalism. Perhaps that excellence merits decorations, or perhaps “doing your job” shouldn’t merit decoration. Ei­ther way, giving the F­16 pilot an award for heroism while excluding the Predator crews from consideration for the same sends a very clear message about what the institution believes is worth recognizing. This message ripples back into commissioning sources and light ­training pipelines, perpetuating perceptions and relative performance discrepan­cies through selection bias.

Published in July 2012, months before the announcement of the news medal, Major Blair’s piece did not address the flip-side: What happens when a member of the Predator crew receives a medal deemed more prestigious than the one awarded to the the F-16 pilot?

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HTC Settles F.T.C. Charges Over Security Flaws in Devices





WASHINGTON — More than 18 million smartphones and other mobile devices made by HTC, a Taiwanese company that is one of the largest sellers of smartphones in the United States, had security flaws that could allow location tracking of users against their will and the theft of personal information stored on their phones, federal officials said Friday.




The Federal Trade Commission charged HTC with customizing the software on its Android- and Windows-based phones in ways that let third-party applications install software that could steal personal information, surreptitiously send text messages or enable the device’s microphone to record the user’s phone calls.


The action is the first attempt by the commission to police a manufacturer of mobile devices. As smartphones and tablets become a common way for consumers to shop, bank and chat online, personal information and privacy will need to be guarded.


HTC America, based in Bellevue, Wash., agreed to settle the civil suit with the commission by issuing software patches that close the security holes, and by creating a security program that will be monitored by an independent party for the next 20 years. The F.T.C. does not have the authority to assess fines in consumer protection cases.


“The company didn’t design its products with security in mind,” Lesley Fair, a senior lawyer in the commission’s Bureau of Consumer Protection, wrote in a blog post. “HTC didn’t test the software on its mobile devices for potential security vulnerabilities, didn’t follow commonly accepted secure coding practices and didn’t even respond when warned about the flaws in its devices.”


An HTC official said Friday that the company had already started to update its software and distribute it to users of some, but not all, of the affected phones.


“Working with our carrier partners, we have addressed the identified security vulnerabilities on the majority of devices in the U.S. released after December 2010,” Sally Julien, an HTC spokeswoman, said in a statement. “We’re working to roll out the remaining software updates now and recommend customers download them once available.”


“Privacy and security are important,” the statement added, “and we are committed to improving practices that help safeguard our customers’ devices and data.”


The trade commission charged that the security flaws resulted from HTC’s modifying the operating system software used on most of the affected phones. In the case of Android, created by Google, the system is designed to protect sensitive information and phone functions through what is known as a permission-based security model.


That requires a user, when installing an application that is not a standard part of the operating system, to be notified and to agree that the application could gain access to certain information or functions.


HTC, however, preinstalled certain apps on its phones in a way that, in addition to preventing consumers from removing them, disabled the permission-based model and allowed newly installed apps to have immediate access to personal data.


“The analogy isn’t exact,” wrote Ms. Fair of the F.T.C., “but it’s like giving a friend the combination to a safe only to find out he’s handing it over to anyone who asks.”


That security hole could, for example, let the rogue software secretly record users’ phone conversations or track their location.


Flaws in the security system could also give third-party apps access to phone numbers, contents of text messages, browsing history and information like credit card numbers and banking transactions. Those flaws also affected HTC phones that used Windows-based operating systems.


While HTC’s actions introduced numerous security vulnerabilities to its phones, a commission official said it was not clear how many users experienced illegal incursions into their phones and personal information.


The flaw in the company’s phones has been known since at least 2011. HTC acknowledged the problems at that time and developed software patches for at least some of the deficiencies that year.


But the problems were far from minor. The F.T.C. said that text-message toll fraud, in which a hacker causes a phone to send text messages to a number that charges the user for delivery of the message, “is one of the most common types of Android malware,” or malicious software.


HTC’s user manuals either said or implied that a user was protected against malware because of the permission-based security, the commission said.


The commission will collect public comments on the proposed remedies for 30 days, after which it will decide whether to formally carry out the order. If HTC subsequently violates the order’s restrictions and requirements, it faces civil penalties of up to $16,000 a violation.


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Well: Savory Pie Recipes for Health

Pie is an indulgence often saved for holiday time. But this week Martha Rose Shulman shows us how to bake a pie and eat it too, without the guilt. She offers savory vegetable pies, showcased in whole grain crusts. She writes:

This week I slowed down and made pies: savory ones filled with vegetables … I used a number of different crusts for my winter pies. My favorite remains the whole wheat yeasted olive oil crust that I have used before in this column, but I also worked with a simple Mediterranean crust made with a mix of whole wheat flour, all-purpose flour and olive oil. And for those of you who are gluten-free, I made another foray into gluten-free pastry and produced one I liked a lot, which was a mix of buckwheat flour, millet flour and potato starch. It had a strong nutty flavor that worked well with a very savory, very vegan, tofu and mushroom “quiche.” They are all simple to mix together and easy to roll or press out. And if you don’t feel like dealing with a crust, just use Greek phyllo. The important things, after all, are the savory vegetables inside.

Here are recipes for a pie crust and four savory winter vegetable pies.

Whole Wheat Mediterranean Pie Crust: A simple Mediterranean crust made with a mix of whole wheat flour, all-purpose flour and olive oil.


Mixed Greens Galette With Onions and Chickpeas: A tasty way to use bagged greens in a dish with Middle Eastern overtones.


Goat Cheese, Chard and Herb Pie in a Phyllo Crust: A garlicky mix of greens and your choice of herbs inside a crispy phyllo crust.


Tofu Mushroom ‘Quiche’: A vegan dish with a deep, rich flavor.


Winter Tomato Quiche: Canned tomatoes can be used in the off season for a delicious dinner.


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Well: Savory Pie Recipes for Health

Pie is an indulgence often saved for holiday time. But this week Martha Rose Shulman shows us how to bake a pie and eat it too, without the guilt. She offers savory vegetable pies, showcased in whole grain crusts. She writes:

This week I slowed down and made pies: savory ones filled with vegetables … I used a number of different crusts for my winter pies. My favorite remains the whole wheat yeasted olive oil crust that I have used before in this column, but I also worked with a simple Mediterranean crust made with a mix of whole wheat flour, all-purpose flour and olive oil. And for those of you who are gluten-free, I made another foray into gluten-free pastry and produced one I liked a lot, which was a mix of buckwheat flour, millet flour and potato starch. It had a strong nutty flavor that worked well with a very savory, very vegan, tofu and mushroom “quiche.” They are all simple to mix together and easy to roll or press out. And if you don’t feel like dealing with a crust, just use Greek phyllo. The important things, after all, are the savory vegetables inside.

Here are recipes for a pie crust and four savory winter vegetable pies.

Whole Wheat Mediterranean Pie Crust: A simple Mediterranean crust made with a mix of whole wheat flour, all-purpose flour and olive oil.


Mixed Greens Galette With Onions and Chickpeas: A tasty way to use bagged greens in a dish with Middle Eastern overtones.


Goat Cheese, Chard and Herb Pie in a Phyllo Crust: A garlicky mix of greens and your choice of herbs inside a crispy phyllo crust.


Tofu Mushroom ‘Quiche’: A vegan dish with a deep, rich flavor.


Winter Tomato Quiche: Canned tomatoes can be used in the off season for a delicious dinner.


Read More..