Google Tool Aided N.Y. Dam Hacker: Terror Group's Web Sprawls

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
ADVERTISEMENT
IF YOU’RE INVESTED,
WE ARE TOO.
See how TD Ameritrade works to build your trust. Go to page R12.
* * * * MONDAY, MARCH 28, 2016 ~ VOL. CCLXVII NO. 72 WSJ.com HHHH $3.00
Last week: DJIA 17515.73 g 86.57 0.5% NASDAQ 4773.50 g 0.5% STOXX 600 335.10 g 1.9% 10-YR. TREASURY g 9/32 , yield 1.902% OIL $39.46 g $1.68 EURO $1.1168 YEN 113.09
Easter Sunday Bombing in Pakistan Kills at Least 65 People

What’s Google
News Tool
Business & Finance Aided
O il giants are draining
their reserves faster
than they are replacing
N.Y. Dam
them, as the oil-price de-
cline reshapes the indus-
try’s priorities. A1
Avon is nearing a set-
Hacker
BY CHRISTOPHER M. MATTHEWS
tlement with activist
shareholders who had
An Iranian charged with
sought a proxy fight. B1
hacking the computer system
Investors poured a record that controlled a New York dam
sum into exchange-traded used a readily available Google
funds whose value increases search process to identify the
K.M. CHUADARY/ASSOCIATED PRESS
along with Wall Street’s so- vulnerable system, according to

called fear gauge. C1 people familiar with the federal
investigation.
Lenders are betting of-
The process, known as
fers for home-equity lines
“Google dorking,” isn’t as sim-
of credit will resonate with
ple as an ordinary online
many borrowers whose
search. Yet anyone with a com-
home values have climbed
puter and Internet access can
and who need cash. C1
perform it with a few special
Michigan denied requests TRAGEDY: Two women mourn at a hospital over the death of a relative killed Sunday. An Islamic militant group claimed it targeted techniques. Federal authorities
from an ignition-switch vic- Christians in an apparent suicide bombing at a park filled with families in the eastern city of Lahore. Hundreds were injured. A10 say it is increasingly used by
tim’s father to investigate hackers to identify computer
former GM employees for vulnerabilities throughout the
Terror Group’s Web Sprawls

their handling of the safety U.S.
defect, documents show. B3 Hamid Firoozi, who was
charged Thursday by federal
Al Jazeera will cut 500
prosecutors, stumbled onto the
jobs, weeks after it said it
Bowman Avenue Dam in Rye
would shut down its Amer-
Brook, N.Y., in 2013 by using the
ican cable channel. B3
Multiple weekend By David Gauthier-
closer U.S. assistance, accord- suspect Mr. Cheffou, who has technique to identify an unpro-
Energy companies tap- ing to Western officials, as been charged and is in custody, tected computer that controlled
ping the market by selling arrests suggest a far Villars and Valentina they try to map the extent of is the man seen pushing a cart the dam’s sluice gates and
new shares to pay down wider Islamic State Pop in Brussels and the network responsible for on security footage captured at other functions, said people
debt are deepening the Giovanni Legorano killing 130 people in Paris in Brussels Airport minutes be- briefed on the investigation.
pain for shareholders. C3 presence in Europe in Milan November and at least 31 in fore two suicide bombers deto- Once he identified the dam, he
Brussels on Tuesday. nated their explosives. allegedly hacked his way in us-
Law-school graduates
A pan-European effort to European authorities said The immediate effort is cen- Recent police raids have ing other methods.
who file for bankruptcy pro-
crack the Islamic State net- they suspect that several men tering on Fayçal Cheffou, a turned up more men allegedly “He was just trolling around,
tection can cancel debt they
work behind the Paris and detained in a number of coun- Brussels resident of Moroccan Please see WEB page A8 and Google-dorked his way
racked up studying for the
Brussels attacks is yielding an tries over the Easter weekend origin who was detained in onto the dam,” one person fa-
bar exam, a judge ruled. C3
unsettling discovery—a web of all had connections to perpe- front of the office of Belgium’s Brussels struggles as city miliar with the investigation
interlocking terror cells whose trators of the deadly attacks. federal prosecutor Thursday as tries to return to normal.... A8 said.
World-Wide dimensions authorities say This has prompted French and police were trailing him by car. Former envoy to U.N. among The search technique has
they are still trying to grasp. Belgian prosecutors to seek Belgian authorities say they Belgian victims......................... A8 Please see DAM page A2
Pan-European efforts
to crack the Islamic State
network behind the Paris
and Brussels attacks have
found a web of interlock-
ing terrorist cells. A1
Oil Firms Slow Exploration Inside
A Pakistani Taliban fac-
tion said Christians celebrat-
ing Easter were targeted in
To Weather Low-Price Era
AGENCE FRANCE-PRESSE/GETTY IMAGES
an attack that killed at least BY SARAH KENT nies have reported in at least high-risk, high-reward proj-
65 people in Lahore. A10 a decade. ects in favor of squeezing
LONDON—The world’s big- For Exxon, 2015 marked the more out of fields that are al-
An Iranian hacker
gest oil companies are drain- first time in more than two ready producing, he said.
charged with breaking into
ing their petroleum reserves decades it didn’t fully replace That shift shows how pro-
the computer system of a
faster than they are replacing production with new re- ducers are responding to low
New York dam used a Google
them—a symptom of how a serves, according to the com- prices by pulling back on new
search process to identify the
deep oil-price decline is re- pany. It reported replacing exploration in favor of maxi-
vulnerable system. A1
shaping the energy industry’s 67% of its 2015 output. mizing profits. The risk is
Sanders swept U.S. Dem- priorities. In the past, shrinking re- that cutting back on new proj-
ocratic presidential caucuses In 2015, the seven biggest serves could send investors ects now, when prices are low, WORLD NEWS | A8
publicly traded Western en- and executives into a panic could lead to shortages and
in Washington, Alaska and
Hawaii, cutting into Clinton’s ergy companies, including over a company’s future pros- price spikes in the future. Syria Retakes Palmyra
lead in delegates. A6 Exxon Mobil Corp. and Royal pects. Historically, energy compa-
Dutch Shell PLC, replaced just These days, with ultralow nies spent heavily in the pres- The Assad regime, with the aid of Russian airstrikes, regained
Syrian troops regained
75% of the oil and natural gas oil prices, “it becomes less ent to find resources for the control of the ancient city, the latest in a string of territorial losses
control of the ancient city of
they pumped, on average, ac- important” to replenish stock- future—new wells that would for Islamic State.
Palmyra in a territorial set- Please see OIL page A12
cording to a Wall Street Jour- piles, said Luca Bertelli, chief
back for Islamic State. A8
nal analysis of company data. exploration officer at Italian
A Chinese news portal’s It was the biggest combined oil producer Eni SpA. Eni has Energy investors stung by JOURNAL REPORT | R1
drop in inventory that compa- shifted spending away from stock sales................................... C3
publication of a letter calling
for Xi’s resignation appears to Untangling Our
have triggered a hunt by Bei- Parents’ Finances
jing for those responsible. A12 Mountain Men Want Solitude but Get Company
Cruz accused Trump of
i i i When his in-laws became too
resorting to personal attacks incapacitated to handle their
on his wife to distract from
the businessman’s short- ‘The Revenant’ movie sparks revival in frontier life; raw liver own affairs, a Journal reporter
and his wife stepped in.
comings on national security
and foreign policy. A4 BY ERICH SCHWARTZEL museums just as mountain-
A policy to fast-track
death-penalty appeals is
closer to taking effect. A2
Brannen Carter, a 45-year-
old firefighter in Boise, Idaho,
man association ranks are
growing. Academics are being
asked to lecture at history con-
Biden-Clinton Friction
A program offering green
cards to some foreign inves-
tors had a record number of
thought he had left his moun-
tain-man days behind him.
Then he saw “The Revenant.”
ferences about Mr. Glass—
down to the gashes he suffered
during the movie’s seminal
Hangs Over Campaign
It didn’t take long for Mr. bear-attack scene. BY PETER NICHOLAS
applications in 2015. A2 AND CAROL E. LEE
Carter to head to his parents’ “I’ve never seen anything
home to pick up a bunch of like this,” said Dan’l B. Cripps, Local rift hampers North
CONTENTS Journal Report R1-12 19th-century clothing and dust the chief clerk of The Ameri- Democrats worried about
Business News.. B2,3 Media........................... B4 Carolina GOP........................ A4
Crossword................. B5 Opinion.............. A13-15 off his 8-pound rifle. can Mountain Men, a mostly Hillary Clinton’s electoral Cruz, Trump trade blame
Election 2016..... A4,6 Sports.......................... B6 “No modern underwear, no Bust of Hugh Glass male association of about 600 weaknesses see Vice President for personal attacks........ A4
Europe File............. A11 U.S. News............. A2-3 modern socks or anything like enthusiasts. Joe Biden as a potential solu- Sanders wins big, still
Global Finance........ C3 Weather..................... B5
Heard on Street.... C6 World News..... A8-12
that,” said Mr. Carter, ticking boosted by an Oscar-winning Mr. Cripps said as many as tion—as long as the two for- faces uphill climb............... A6
off some of the do’s and don’ts portrayal by Mr. DiCaprio, has six or eight subscription re- mer cabinet colleagues and
of his rediscovered passion— given an unexpected jolt to an- quests have been rolling in sometime rivals can smooth
> heading into the wilds of the tebellum-history buffs, moun- daily for the association’s their complicated relationship. waii and Alaska. The trio of
Northwest to live like fur trap- tain-man communities and quarterly magazine, the Toma- Mrs. Clinton’s vulnerabili- states contain either many
per Hugh Glass, the character other groups whose very pur- hawk and Long Rifle. (Circula- ties were apparent over the white voters or veer to the left
played by Leonardo DiCaprio pose involves retreating from tion: 808.) weekend when she suffered wing of the Democratic Party,
s Copyright 2016 Dow Jones &
in the frontier drama. modern life. The hobby allows a break lopsided losses to rival Sen. two constituencies where Mrs.
Company. All Rights Reserved Nearly 200 years after his “Revenant”-themed installa- from 21st-century living and Bernie Sanders in Democratic Clinton has struggled.
death, the story of Mr. Glass, tions are appearing at frontier Please see WILD page A12 caucuses in Washington, Ha- Please see BIDEN page A6
A2 | Monday, March 28, 2016 * *** THE WALL STREET JOURNAL.
U.S. NEWS
The Risks of Stalling on Puerto Rico Policy to
Fast-Track
W
ith Congress zero- structure municipal debts in oversight. It is between tack-
Debt Drag
ing in on a salve for
Puerto Rico’s debt
crisis, Europe’s experience
Compared with U.S. states, Puerto Rico dedicates a very high portion of
its revenues to servicing its debts. Its economy has deteriorated amid
bankruptcy court because it
isn’t a state. Courts struck
down a local law that would
ling the crisis now or facing
calls for more expensive help
later in the form of federal
Executions
with Greece offers a telling
example of the pitfalls to
avoid.
poor employment prospects and an exodus to the U.S. mainland.
Debt service as a share of revenue for 2014
create a similar avenue last
year. The U.S. Supreme Court
heard arguments in the ap-
transfer payments or
loans, says Aníbal Acevedo
Vilá, who was Puerto Rico’s
Advances
An International Mone- 0 5 10 15 20 25 30% peal last week and should governor from 2005 to BY SARA RANDAZZO
tary Fund report from late Puerto Rico rule by June. 2009. Some bondholder ad-
2015 flagged the missteps vocates and local political A contentious Justice De-
Hawaii
M
bluntly. “Debt aking matters more leaders, for example, are in- partment policy that could
Connecticut
THE restructuring, complicated, the is- voking the 2009 bailouts of speed up death-row executions
OUTLOOK when it New York land has a series of Detroit auto makers in call- is closer to taking effect, fol-
NICK came, was of- Utah debt issues with competing ing for the Treasury Depart- lowing a recent federal ap-
TIMIRAOS ten too little, West Virginia security pledges, devised ment to refinance or guaran- peals court ruling.
too late,” it Massachusetts over the years to skirt debt- tee debts. The opinion last week from
said. Illinois sustainability standards. This This is a nonstarter in the Ninth U.S. Circuit Court of
Greece’s crisis erupted in Washington has made some creditors Washington for now because Appeals could clear the way for
2010, but officials didn’t ap- Kentucky more willing to take their it could put taxpayers on the states to apply for a program to
prove a restructuring of the chances in court. Others hook for a Puerto Rican bor- fast-track death-row appeals,
nation’s huge debt load for U.S. median have suggested the island is rowing binge facilitated by potentially leading to swifter ex-
two years. By then, creditors embellishing its travails. Wall Street. ecutions. Death-penalty sup-
were forced to take larger Change in employment Change in population The upshot is that some But the water crisis in porters have been calling for
haircuts that were still in- since 2005 since 2005 creditors have been reluctant Flint, Mich., serves as a speedier appeals for years, while
sufficient, the report said. 10% 10% to offer concessions in vol- timely example of how eco- defense lawyers and death-pen-
U.S.
The lesson for Washing- untary restructuring talks. nomic decline can spawn alty opponents say fairness is
ton on Puerto Rico seems They are also lobbying heav- public emergencies that lost if complicated appeals
0 5
straightforward: Avoiding Private ily on Capitol Hill to weaken compel more costly re- aren’t given the time they need.
strong medicine now—in the nonfarm jobs restructuring legislation, sponses. The controversy over the
form of restructuring the is- –10 0 which some have character- It doesn’t take much policy comes as the use of the
land’s $70 billion in debt, ized as a bailout even imagination to summon par- death penalty continues a
held mostly by investors in Puerto Rico though restructuring puts no allels for Puerto Rico. The yearslong decline. In 2015, 28
the U.S. and Puerto Rico— –20 –5 taxpayer dollars at risk. Centers for Disease Control people were executed, the low-
raises the odds of a federal Analysts have in recent and Prevention warned last est number since 1991, accord-
bailout of the island later. Government jobs weeks pushed back against month that 20% of the ising to a study by the Death
–30 –10
The Treasury Department arguments that restructuring land’s population could con- Penalty Information Center.
has proposed pairing a fiscal 2005 ’10 ’15 2005 ’10 ’15 legislation for Puerto Rico tract the mosquito-borne Roughly 3,000 inmates sat on
oversight authority to audit Sources: Moody’s Investors Service (debt); Census Bureau (population);
would introduce new risks in Zika virus in an outbreak death row at the beginning of
the island’s finances with a U.S. Labor Department (employment) THE WALL STREET JOURNAL. the broader $3.7 trillion mu- this summer. Separately, the the year, and 31 states cur-
debt-restructuring mecha- nicipal-bond market. With- island’s power company tem- rently allow executions.
nism, akin to a court-super- has been contracting since former chief economist at out an orderly restructuring porarily cut off electricity to The Ninth Circuit tossed a
vised bankruptcy, if volun- 2006. Job opportunities are the IMF, at a hearing framework, the alternative a hospital with $4 million in 2013 lawsuit brought by the
tary negotiations fail. sparse and dwindling, busi- with lawmakers last month. would be a series of defaults unpaid bills earlier this Habeas Corpus Resource Cen-
House Republicans are nesses are leaving, and home “The tax base will further and lawsuits. month. ter in California and the Office
preparing to unveil a legisla- prices are plummeting. disintegrate, and the credi- Former Treasury Secre- The big question is how of the Federal Public Defender
tive draft with such a frame- Puerto Rico residents, tors will get even less.” tary Larry Summers has the island’s economy will for the District of Arizona.
work this week, setting off a who are U.S. citizens, are re- Puerto Rico has already called Puerto Rico a test of stanch migration to the The suit challenged a Jus-
scramble by lawyers and lob- sponding with their feet by defaulted on some small whether financial interests mainland and return to tice Department policy that in
byists before Congress removing to the mainland. debts. Officials have warned control Washington. growth, a task made all the certain states would shorten
turns from recess in mid- “If you wait, the crisis of much bigger ones on more For policy makers, the more challenging as credi- the amount of time—from one
April for potential votes. will become considerably than $2 billion in payments choice isn’t necessarily be- tors brawl over who should year to six months—in which
The main problem is sim- worse. More people will due in May and July. The tween restructuring the debt bear the costs of poor in- prisoners must challenge their
ple. Puerto Rico’s economy leave,” said Simon Johnson, territory isn’t allowed to re- or simply imposing tougher vestments. conviction in federal court af-
ter state appeals end. The
fast-track process also would
impose deadlines on federal
Investor courts for ruling on chal-
lenges, known as habeas cor-
pus petitions. There currently
Demand
SETH WENIG/ASSOCIATED PRESS (LEFT); ALEX WONG/GETTY IMAGES
are no limits on how quickly

the courts must rule on such
petitions.
ForU.S. The plaintiffs, which repre-
sent death-row inmates in fed-
eral appeals, had argued the
VisasRises Justice Department regula-
tions were too vague. But the
BY ELIOT BROWN court sided with the Justice
Department, finding the plain-
A federal immigration pro- tiffs failed to show they had
gram offering green cards to been directly harmed. “Assist-
some foreign investors had re- ing and counseling clients in
cord demand in 2015. the face of legal uncertainty is
The program, known as EB-5, the role of lawyers,” the three-
received applications from judge panel wrote.
17,691 investors in 2015, up from Opponents worry the policy
11,744 in 2014 and 6,554 in The Bowman Avenue Dam in Rye Brook, N.Y.; federal officials announced indictments of seven Iranians on hacking charges last week. will shortchange death-row in-
2013, according to figures re- mates. “At a time when capital
leased last week by U.S. Citizen-
ship and Immigration Services.
There were 21,988 investor
applications pending at year-
DAM ment, including the Islamic
Revolutionary Guard Corps,
Iran’s elite military force, pros-
ecutors said.
But older systems can have
weaknesses that can readily be
found through Google dorking,
and then exploited, experts
in Manhattan federal court. If
the sluice gate hadn’t been
manually disconnected due to
maintenance issues, Mr. Firoozi
punishment is coming under
serious scrutiny, we think there
needs to be greater opportuni-
ties for courts to review these
end, and given that the pro- Continued from Page One The defendants are believed said. would have been able to re- cases,” said Marc Shapiro, an
gram allows just 10,000 visas a been around for about 10 years, to be in Iran and could be ar- While the alleged intrusion motely operate it, according to attorney for the plaintiffs. “DOJ
year, that means a backlog of said cybersecurity experts, and rested if they leave the country. into the dam was sophisticated, the indictment. is seeking to do exactly the op-
at least five years for most in- is neither illegal nor always Neither they nor their lawyers demonstrating that Iran had U.S. intelligence agencies no- posite, and slide the cases
vestors. Typically, each inves- malicious. It is primarily used could be reached for comment. greater digital-warfare capabil- ticed the intrusion as they through federal court.”
tor secures two to three visas. by “white hat hackers,” com- The 2013 attack on the Bow- ity than believed, the methods monitored computers linked to The Justice Department,
Industry executives say the puter specialists who test an man Avenue Dam startled U.S. used to find the dam were rela- Iranian hackers targeting which has stood by the fast-
inflow of applications has organization’s computer system authorities, sparking concerns tively mundane. American financial institutions, track process and argued that
slowed some since the EB-5 for vulnerabilities, said Michael that reached the White House, Mr. Firoozi allegedly had according to people familiar any legal challenge to the policy
program was extended in De- Bazzell, a former computer former and current U.S. offi- been using the Google tech- with the matter. Mr. Firoozi and was premature, declined to
cember for another 10 months. crime investigator for the Fed- cials previously told The Wall nique for months in search of the other defendants were also comment on the opinion. Mr.
The EB-5 program offers eral Bureau of Investigation. Street Journal. The dam is a vulnerable U.S. industrial-con- charged with attacking Bank of Shapiro said his clients plan to
green cards to aspiring immi- “You can look for hardware small structure less than 20 trol systems, such as a com- America Corp., Nasdaq OMX request a full Ninth Circuit
grants who invest at least online that you can access miles north of New York City Group Inc., the New York Stock panel to hear the case. Until the
$500,000 into certain busi- without a password, or for a used mostly for flood control, Exchange, Capital One Financial court takes up or denies that
nesses that have been deter- certain type of login portal,” and gaining control likely posed
Hackers use the Corp. and dozens of others. request, implementation of the
mined to create at least 10 jobs said Mr. Bazzell, now a cyberse- little threat. But the move un- method to identify The FBI and the Department fast-track policy continues to
per investor. China accounts curity consultant. “It’s very ef- derscored that hackers were of Homeland Security warned be on hold. Any further appeal
for more than 80% of EB-5 vi- fective.” targeting U.S. infrastructure.
computer weak spots public safety and security or- to the U.S. Supreme Court
sas issued. First created in The technique is also used The infiltration of the Bow- around the U.S. ganizations in 2014 of potential could also delay enactment.
1990, EB-5 was barely used un- by criminal hackers, said John man Avenue Dam represents a vulnerabilities through dorking. No states have yet been ap-
til the aftermath of the 2008 Carlin, assistant attorney gen- “frightening new frontier for “Malicious cyber actors are proved to use the fast-track
recession, when real-estate de- eral for national security, in an cybercrime,” U.S. Attorney puter using an old operating using advanced search tech- process—put into law in 1996
velopers realized it offered a interview. Preet Bharara said at a news system or one that hadn’t been niques, referred to as ‘Google through the Antiterrorism and
form of financing when banks Google Inc. didn’t respond to conference Thursday. updated with a security patch, dorking,’ to locate information Effective Death Penalty Act and
were reluctant to lend. requests for comment. The ease with which Mr. the people familiar with probe that organizations may not revised by the Justice Depart-
The Justice Department last Firoozi allegedly found the dam said. have intended to be discover- ment in 2013—though Arizona
THE WALL STREET JOURNAL week accused Mr. Firoozi and is a major concern for U.S. offi- A website called Exploit Da- able by the public or to find and Texas have both asked to
(USPS 664-880) six other Iranian hackers of at- cials. Many computers control- tabase lists dozens of technical website vulnerabilities for use be allowed to use it. To qualify,
(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) tacking the U.S. financial sys- ling industrial and infrastruc- search terms that will scour a in subsequent cyberattacks,” an states must show they provide
(Western Edition ISSN 0193-2241) tem, in what was the first pub- ture systems are old and website or computer hardware intelligence document warned. competent counsel to indigent
Editorial and publication headquarters:
1211 Avenue of the Americas, lic indictment against hackers predate the consumer Internet. for vulnerabilities, using com- Mr. Carlin said while many prisoners during state post-
New York, N.Y. 10036 tied to the Iranian government. Companies, often against the mands akin to software coding. experts use dorking for benign conviction proceedings.
Published daily except Sundays and general
legal holidays. Periodicals postage paid at New
The seven defendants worked advice of hacking experts, in- Mr. Firoozi allegedly used purposes, the government has
York, N.Y., and other mailing offices. for two private computer-secu- creasingly have brought such such specific search parameters warned organizations to be on
POSTMASTER: Send address changes to The
Wall Street Journal, 200 Burnett Rd., Chicopee,
rity companies that performed systems online as a way to add to scour websites connected to the lookout for the tactic as a U.S. Executions
MA 01020. work for the Iranian govern- “smarts” to U.S. infrastructure. U.S. infrastructure sites for vul- sign hackers could be afoot. It 100
All Advertising published in The Wall Street nerable hardware systems. has also advised them to use
Journal is subject to the applicable rate card,
From a computer thousands of the technique on themselves to 1999: 98
CORRECTIONS AMPLIFICATIONS
copies of which are available from the
Advertising Services Department, Dow Jones miles away in Iran, Mr. Firoozi see whether they inadvertently
& Co. Inc., 1155 Avenue of the Americas, New
found what he was looking for have left information or sys- 75
York, N.Y. 10036. The Journal reserves the
right not to accept an advertiser’s order. Only in the Bowman Avenue Dam, tems vulnerable to exposure.
publication of an advertisement shall 2016 YTD: 9
constitute final acceptance of the advertiser’s
EIG Global Energy Part- Firefighters in the Menlo prosecutors allege. Mr. Bazzell said it is up to
order. ners has about $14 billion in Park Fire Protection District in “Google is a very powerful companies and organizations to 50
Letters to the Editor: assets under management. In California have been working 48- tool,” said Mr. Bazzell. “It’s protect themselves and ensure
Fax: 212-416-2891; email: wsj.ltrs@wsj.com
some editions Saturday, a hour shifts for about a decade. In global, it’s something that Google can’t access data they
NEED ASSISTANCE WITH Business News article about some editions Saturday, a U.S. doesn’t have any boundaries.” want to keep private. “Google is
YOUR SUBSCRIPTION? the firm dropping a bid for News article about how the fire- Next, he allegedly applied simply indexing everything 25
CONTACT CUSTOMER SUPPORT. Pacific Exploration & Pro- fighters there are affected by Sil- more complicated computer that’s public; it’s not doing any-
By web: customercenter.wsj.com duction Corp. incorrectly said icon Valley housing costs incor- skills to hack into the dam’s thing wrong,” he said. “It’s the
By email: wsjsupport@wsj.com it had $9.2 billion under man- rectly said they shifted to that controls. Mr. Firoozi gained ac- obligation of the installer to se- 0
By phone: 1-800-JOURNAL agement. schedule at the end of last year. cess to the dam’s supervisory cure that network or that de-
(1-800-568-7625) 1990 2000 2010
control and data-acquisition vice.”
Or by live chat at wsj.com/
livechat Readers can alert The Wall Street Journal to any errors in news articles by system in August 2013, accord- —Kate O’Keeffe Source: Death Penalty Information Center
emailing wsjcontact@wsj.com or by calling 888-410-2667. ing to an unsealed indictment contributed to this article. THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL. * * Monday, March 28, 2016 | A3
U.S. NEWS
Refugee Welcome Sign Shines in Utah

Mormon history of “Utah should immediately
Seeking Shelter suspend the acceptance of Syr-
religious oppression Number of refugees admitted to ian refugees until we are sure
makes many residents the U.S. among the top 10 the screening process works,”
countries for fiscal year 2015* said Mr. Johnson, who is chair-
open to Muslims man of retailer Overstock.com
Myanmar 18,386 and is challenging Mr. Herbert
BY MIRIAM JORDAN Iraq 12,676
in his bid for re-election this
year. “Utahns are extremely
SALT LAKE CITY—Amid Somalia 8,858 compassionate and generous
concerns over potential terror- Dem. Rep. Congo 7,876 people, but the governor needs
ists infiltrating the U.S., Gov. to ensure refugees coming to
Gary Herbert of Utah has re- Bhutan 5,775 Utah are not a danger to
peatedly pledged to keep the Iran 3,109 Utahns.”
welcome sign hanging for refu- Federally funded agencies
gees while most of his Republi- Syria 1,682 help the newcomers find hous-
CAYCE CLIFFORD FOR THE WALL STREET JOURNAL

can counterparts want a re- Eritrea 1,596 ing, work and secure certain
view or pause in resettlement. benefits. But refugees often
After the San Bernardino, Sudan 1,578 struggle with linguistic, educa-
Calif., and Paris attacks, Mr. Cuba 1,527 tional and other barriers to be-
Herbert met with national-se- coming self-sufficient.
curity officials to better under- *Fiscal year ended Sept. 30 Many Mormon business
stand the refugee vetting pro- Source: State Department leaders say they are dedicated
cess. Utah police, he said, have THE WALL STREET JOURNAL. to helping refugees integrate
begun working directly with into the wider community.
the state’s refugee communi- zen groups in Utah have orga- Real-estate magnate H. Roger
ties to nurture ties with them nized anti-refugee demonstra- Boyer committed a million dol-
and provide an “extra layer” of tions or petitions. But Utah’s lars a year to help newcomers
protection for Utah residents. Volunteers and students work on projects at the Sunnyvale Neighborhood Center in Salt Lake City, embrace of newcomers hasn’t earn college degrees. His non-
He remains determined to which offers English, parenting and citizenship classes for refugee and immigrant families. found universal support. Jona- profit helps cover tuition,
keep doors open to refugees than Johnson, a prominent transportation and other
from Muslim countries. in California. and a welcoming environment. been stepping up donations. Mormon businessman and a items, like glasses and dental
“We are a compassionate GOP governors in many “I don’t feel any hostility at “We were refugees our- Republican, said that while he care.
people in Utah because we un- other states have adopted a all,” said Shakar Ali, a 24-year- selves,” said Tom Lloyd, recognizes refugees contrib- “This is an underserved
derstand religious persecu- different stance on refugees. old Kurdish Iraqi whose engi- a Mormon commercial real-es- uted to America over the group who, with a little help,
tion,” said the governor in an Indiana Gov. Mike Pence has neering studies are partly tate developer who created a years, he doesn’t want Islamic can improve themselves and
interview, referring to the appealed a federal judge’s rul- funded by a Utah real-estate foundation to assist refugees State terrorists coming to the contribute to the community
state’s history as the center of ing that deemed his suspen- mogul. “Wherever I am going, with a friend, financial adviser country under the guise of ref- and their families,” said Mr.
the Mormon religion. “We sion of resettlement of Syrians they offer help.” Jim Woodward. Their com- ugee status. Boyer.
ought to keep out terrorists unconstitutional. President Barack Obama mitment also is informed by
without keeping out people of But Utah has a history of agreed to resettle 85,000 dis- missionary work abroad, a rite
a religious group.” going against the grain of con- placed people in the U.S. this of passage for young church
About two-thirds of Utah’s servative or mainstream poli- fiscal year, including 10,000 members, who often see hard-
three million residents are tics. Last year, state lawmakers Syrians. Among the 1,200 ship close up, said Mr. Wood-
members of the Church of Je- agreed to highly criticized bound for Utah will be a still- ward, also a Mormon.
sus Christ of Latter-day Saints, compromise legislation with unspecified number of Syrians. At the Latter-day Saint Hu-
the Mormon Church organized gay-rights groups. When the refugee crisis in- manitarian Center run by the
in 1830 in New York state. Of about 70,000 refugees tensified last year, the Mor- Mormon Church, about 200 #1 IN BUSINESS AVIATION
Many have ancestors who were who arrived in the U.S. annu- mon Church’s governing body people, mostly refugees, work
driven out of several states be- ally in recent years, the State directed members to give half the day preparing aid sup-
fore settling in the Salt Lake Department has sent about money and volunteer. An an- plies that are shipped world- Gulfstream is the number one brand in business aviation*.
Valley in 1847. 1,100 to Utah a year, the ma- nouncement Monday will re- wide. The other half, they at- Why? Because we consistently deliver
Religious freedom is “em- jority from Muslim countries mind Mormons “to join to- tend an English class. After a on our promises.
bedded deeply in Mormon like Afghanistan, Iraq and So- gether to help refugees” in year, counselors help them
DNA,” said Patrick Mason, an malia. Roughly as many relo- their communities. Business find jobs in food services,
www.gulfstream.com
American religion scholar at cate to Utah from other states, leaders, who had already com- warehousing and other areas.
Claremont Graduate University drawn by a thriving economy mitted millions of dollars, have Unlike some states, no citi-
California Aims for $15 Pay Floor

BY ALEJANDRO LAZO Los Angeles Times, comes after the November 2016 ballot. largely been focused on the lo-
AND ELIOT BROWN a labor-sponsored initiative to Last week, a measure circu- cal level. States appear to be
raise the minimum wage to $15 lated by the Service Employ- the next battleground. Law-
Gov. Jerry Brown’s adminis- an hour by 2021 qualified for ees International Union, makers in New York are in
tration has told leaders in the the November ballot. United Healthcare Workers talks to bring the minimum
Democratic-controlled state A wage of $15 an hour— West, qualified for the ballot. wage to $15 an hour, from $9
Legislature he supports boost- about $30,000 a year for full- now. Gov. Andrew Cuomo, a
ing the state’s minimum wage to
$15 an hour by 2022, a person
time workers—has become a
rallying cry by many on the
The governor backs Democrat, is trying to include
a vote in the Legislature on
familiar with the matter said. left in recent years. The fed- raising the minimum the measure as part of the
The approach would give
him some control over an is-
eral level is $7.25 an hour, un-
changed since 2009.
wage from $10 an state’s budget, due April 1.
The proposed increases
sue that looked set to be de- Mr. Brown signed a mini- hour to $15 by 2022. have met resistance from busi-
cided by voters in November. mum-wage increase in 2013, ness groups and Republicans—
Moving ahead would give though he has recently cau- including presidential front-
the state the nation’s highest tioned against further in- “If a California minimum runner Donald Trump—who
minimum pay floor. The mini- creases. In January, he said wage bill passes and is signed say they will lead to fewer
mum wage in California is now raising the minimum wage too into law by the governor, we jobs for low-skilled Americans.
$10 an hour, already one of the quickly would return the state will take a careful look at it “I think there’s going to be SCOTT NEAL +1 912 965 6023
highest of any state, though to annual deficits and could and our executive board will job loss everywhere,” said Da- scott.neal@gulfstream.com
some cities have set higher exacerbate economic woes. decide what to do with our vid Neumark, an economist at *According to JETNET iQ brand
minimum levels. But labor unions in the ballot initiative,” said Steve the University of California, Ir- reputation surveys.
The deal proposed to law- state pressed ahead with sig- Trossman, the union’s public- vine. “You get out of the big
makers by the Democratic gov- nature-gathering efforts to affairs director. cities and California is not a
ernor, reported earlier by the place competing measures on Until now, efforts had rich place at all.”
© D.YURMAN 2016
What Will You Remember?™
brooKSbrotherS.coM D AV IDY U RM A N .C O M 8 8 8 8 3 8 79 24
A4 | Monday, March 28, 2016 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ** THE WALL STREET JOURNAL.
Local Rift Hampers North Carolina GOP

State Republicans knows the fight is ugly. “Who delegates for the national con-
likes to see Republicans eat vention is compromised, some
censure chairman, their own?” he said. North Carolina Republicans say,
mirroring divisions at The tension in North Caro- the state’s delegation could be
lina between the party’s estab- challenged.
the national level lishment and grass-roots activ- A party spokesman, Scott
ists mirrors a dynamic at the Cumbie, said Sunday that the
BY VALERIE BAUERLEIN national level that has propelled censure was the result of per-
businessman Donald Trump and formance issues, and not re-
RALEIGH, N. C.—An outsider Texas Sen. Ted Cruz to the top lated to the timing of the con-
who was elected chairman of of the GOP primary heap ahead vention.
North Carolina’s Republican of more mainstream candidates, Mr. Harnett cites the impor-
DHANRAJ EMANUEL FOR THE WALL STREET JOURNAL

Party against the wishes of its said Michael Bitzer, a political tance of the national convention
leaders is in a feud with party scientist at Catawba College in as one reason he is fighting to
brass—a fight that mirrors ten- Salisbury, N.C. stay. The North Carolina GOP
sions in the national GOP and is The fight matters, Mr. Bitzer needs to send delegates who
hampering party activity in this said, since North Carolina is a will stay loyal to Messrs. Trump
swing state during the election. Republican-leaning swing state and Cruz in the event of a con-
Chairman Hasan Harnett was that was carried by two points tested convention where other
barred from party headquarters by Mitt Romney in 2012 and by names could emerge, he said. If
in Raleigh last week and cut off less than one point by then-Sen. the state convention is domi-
from GOP email and other ac- Barack Obama in 2008. “If nated by the traditional wing of
counts after pushing to reduce you’re facing a competitive en- the party, voters who chose
the cost of a ticket to the vironment, public spats are not Messrs. Trump and Cruz could
party’s May 6-7 convention to what you want,” he said. “be disenfranchised by people
zero from $90. Hasan Harnett, who was elected chairman of the state Republican party last year, faces ouster. Party leaders are hoping to who represent something to-
Mr. Harnett, the state party’s force Mr. Harnett out before tally different,” he said.
first black chairman, said the authorized fees for the conven- Burr and Thom Tillis. Since ate races in November. May’s state convention, which Many Republicans see the
convention fee amounts to a tion, and wasting staff and vol- then, he said, “it’s been one dis- Mr. Harnett said he raised has outsize significance this infighting as esoteric, and say
“poll tax,” and that he was try- unteer time. The committee is appointment after another.” considerably more than $37,000, year because of the selection of the rank-and-file are clearly
ing to fulfill his campaign prom- circulating a petition that is a Party leaders say Mr. Har- if contributions raised by staff delegates to this summer’s na- enthusiastic about November
ise to make party involvement procedural step toward Mr. Har- nett, a motivational speaker and members are included. He said tional GOP convention in Cleve- based on the record primary
more attractive. “This is a fight nett’s removal. “His actions a former Democrat, has failed in he has been given little auton- land. Mr. Trump won the largest turnout. Allies of Messrs. Mc-
for the movement that’s going have effectively frozen the the traditional chief duty of the omy and scant access to re- number of delegates in North Crory and Burr say the race is
on all over this nation,” he said. party,” said Matthew Arnold, chairman—to raise money. On sources like party records. Carolina’s primary in March, a distraction, but not a hin-
“People are sick and tired of be- GOP chairman of the 4th con- his own, Mr. Harnett raised It isn’t clear that the move to with Mr. Cruz coming in second. drance.
ing bullied by the small few who gressional district, who voted to $37,000, which they say covers oust Mr. Harnett will succeed, It is possible that delegates to “We have no concerns about
control everything.” censure Mr. Harnett. roughly one month of the as it will require a series of the national convention could the party’s ability to work
The North Carolina GOP’s Mr. Arnold said he voted for party’s operating budget and votes among hundreds of party ultimately choose the nominee through its current issues and
central committee censured Mr. Mr. Harnett for chairman last nowhere near the costs of hold- leaders over the next month, if Mr. Trump, the front-runner, still be in place to play a major
Harnett on March 20, citing June over a better-known can- ing a convention or mounting a Mr. Arnold said. fails to win enough delegates to role in supporting all the party’s
eight “gross violations” of party didate endorsed by Gov. Pat Mc- unified campaign in presiden- Mr. Harnett said he wouldn’t clinch the nomination outright. nominees,” said Chris LaCivita,
rules, including advertising un- Crory and U.S. Sens. Richard tial, gubernatorial and U.S. Sen- go quietly, even though he If the process of selecting chief strategist for Mr. McCrory.
Suburban Weakness Is a Divergent Outcomes

Donald Trump has won many states without carrying the voter-rich suburbs near big cities, which are key
to winning elections in presidential swing states. As the GOP nominee, he would have a narrow path to
Warning Sign for Trump victory if he did not exceed his party's traditional margins in the most populous suburbs. Below are the
four most populous counties in four states that will be battlegrounds in November.
KEY: Each dot ( ) = 1,000 people
BY DANTE CHINNI higher levels of education. the urban suburbs in some pri- NORTH CAROLINA VIRGINIA 4 1
AND AARON ZITNER “Trump is weaker where maries, carrying such commu- 4 3 2
D.C.
Republicans are usually nities in Florida, Michigan and
Donald Trump has domi- strong—in the big, growing, other states. But his weakness 3 2
nated the Republican prima- cosmopolitan, suburban coun- among suburban voters has
ries despite a weakness that ties, where elections are in- appeared even in some states
1
could prove damaging in a creasingly determined,” said he swept with big margins,
general election: He is losing Stuart Rothenberg, a nonparti- such as Georgia and Tennes-
many of the populous sub- san political analyst. see. While those states aren’t
urbs where the battle for the Barry Bennett, a senior ad- likely to slip from Republican Trump Trump
County: Metro area: Winner: vote (%): County: Metro area: Winner: vote (%):
White House is often won and viser to the Trump campaign, hands in November, they could
1 Mecklenberg Charlotte Trump 32.5% 1 Fairfax Washington Rubio 25.1%
lost. said urban suburbs, particu- signal problems in the ur-
Mr. Trump carried the larly around state capitals, are ban suburbs of other states. 2 Wake Raleigh Cruz 29.3% 2 Virginia Beach Virginia Beach Trump 39.7%
swing state of Virginia in the home to “establishment” Re- In Wisconsin, home of the 3 Guilford Greensboro Cruz 34.6% 3 Prince William Washington Rubio 33.1%
GOP primary, for example, but publicans who aren’t Mr. next big Republican primary,
4 Forsyth Winston-Salem Cruz 33.9% 4 Loudoun Washington Rubio 27.9%
he lost the voter-rich sub- Trump’s prime audience. on April 5, Mr. Trump’s profile
urbs of Washington, D.C., “They’re looking for a tradi- is upside-down compared with Trump’s statewide vote (%): 40.2% Trump’s statewide vote (%): 34.8%
which tend to decide general tional Republican candi- those of successful Republi-
elections in the state. date.…That’s not our base vote cans there, such as Gov. Scott 1
IOWA OHIO
In North Carolina, another right now,” he said. “If you’re Walker, polling shows. 1 2
general-election battleground, looking at middle-, upper-in- Usually, Republicans win
Mr. Trump lost three of the come families in suburbia, our with big vote margins from 4
four largest counties, including three populous counties sur-
those around Raleigh and rounding the state’s major ur-
Greensboro. In Iowa, he lost
Trump’s campaign ban center, Milwaukee. But
the county that includes Des says the new voters Charles Franklin, director of 2
Moines and the next three the Marquette Law School Poll,
most populous counties. In
he is drawing in will said Mr. Trump is viewed far 3
Ohio, he lost the voter-heavy offset the issue. more unfavorably among Re- 4 3
areas around Cleveland, Co- publicans in those three GOP-
lumbus, Cincinnati and Akron. stronghold counties than he is
Trump Trump
If the suburban trend holds message has really caught a in the rest of the state. County: Metro area: Winner: vote (%): County: Metro area: Winner: vote (%):
with Mr. Trump as the GOP hold of people who are strug- When Mr. Franklin merged 1 Polk Des Moines 1 Cuyahoga Cleveland
Rubio 21.7% Kasich 32.6%
nominee, it would underscore gling more than that.” the results of the past four
how vital it is for him to fulfill Mr. Bennett said Mr. Trump Marquette polls dating to Sep- 2 Linn Cedar Rapids Cruz 20.2% 2 Franklin Columbus Kasich 22.2
his pledge to redraw the tradi- is redefining the party’s appeal tember, he found that Mr. 3 Scott Davenport Rubio 25.3% 3 Hamilton Cincinnati Kasich 31.8%
tional political map by attract- and drawing in new voters in a Trump was viewed unfavor-
4 Johnson Iowa City Rubio 19.3% 4 Summit Akron Kasich 35.6%
ing new and different Republi- way that would offset any ably by 64% of Republicans in
can voters elsewhere. Urban weakness in the suburbs. the three suburban counties Trump’s statewide vote (%): 24.3% Trump’s statewide vote (%): 35.9%
areas account for about 44% of “Turnout is through the roof,” around Milwaukee, compared
the vote in general elections, a he said. with 32% who held negative Note: In 2012, President Barack Obama carried all the suburban counties above, except for Virginia Beach, VA.
Source: U.S. Census Bureau (population); US Election Atlas (election results) THE WALL STREET JOURNAL.
Wall Street Journal analysis In the 2012 presidential views of Mr. Trump in other
shows, split evenly between race, Mitt Romney won the parts of the state. One quarter
cities and the dense, di- large, suburban counties in of Republicans held favorable has shed its rural profile and Rubio. ries include big cities, heavily
verse suburbs around them. Virginia, Ohio, North Carolina, views of Mr. Trump in those features gourmet cupcake Mr. Trump’s potential sup- religious communities, exurbs
Most Republicans are likely Iowa and many other swing three counties, compared with shops and pet spas, making it porters in the county include and rural areas.
to stick with the party in No- states in the primaries but 53% elsewhere. an unlikely fit for Mr. Trump’s Robert Bocek, a Microsoft em- In the urban suburbs, typi-
vember, even if they backed struggled to carry them in the If Mr. Trump struggles to blue-collar message. ployee. “I think Trump brings fied by the counties outside
Mr. Trump’s primary-election general election. He reclaimed win suburban voters, the prob- In the March 1 primary, a lot to the table in terms of Philadelphia, Chicago and
rivals. At the same time, non- only North Carolina and Indi- lem will appear in places such Loudoun County, like much of his business sense, but there is Washington, D.C., President
partisan analysts say that Mr. ana for the GOP after the party as Loudoun County in north- northern Virginia, voted for also an arrogance, a bullhead- Barack Obama drew 57% sup-
Trump may have driven away lost both four years earlier. ern Virginia. Florida Sen. Marco Rubio. Mr. edness,” Mr. Bocek said. port in 2012, to 41% for Mr.
a meaningful number of Re- Mr. Trump’s challenge “is to As Loudoun’s population Trump won about 28% there, A Journal analysis of 2012 Romney.
publicans with an antiestab- hold on and increase the work- more than doubled over the compared with about 35% election results and 2016 polls When results of a Wall
lishment, anti-immigration ing-class white vote and at the past 15 years to 375,000, its statewide. illustrates the situation. It Street Journal/NBC News poll
message that has energized same time re-establish the ap- Hispanic population more than “Trump’s challenge is he grouped the nation’s counties from March were tabulated by
working-class voters but peal with traditional subur- quadrupled to about 50,000. has to win suburban mothers, into seven categories as de- county type, Mrs. Clinton drew
drawn skepticism in the sub- ban voters,” said Mr. Rothen- Indian-Americans are also even Republican mothers,” fined by the American Commu- 61% support in urban sub-
urbs, where voters tend to berg. plentiful. Now Virginia’s said Ron Meyer, a county su- nities Project, a demography urbs in a test match-up against
have higher incomes and Mr. Trump has done well in fourth-largest county, Loudoun pervisor who supported Mr. research project. The catego- Mr. Trump, who won 29%.
Cruz, Trump Trade Blame for Latest Personal Attacks

BY ARUNA VISWANATHA how to keep America safe from on Mr. Cruz’s wife, Heidi, and here. I’m just responding to
radical Islamic terrorism so in- retweeted a photo that showed what he does,” Mr. Trump said
Republican presidential stead, he attacks my wife, he Mrs. Trump alongside an un- in an interview broadcast Sun-
candidate Ted Cruz said on attacks my family, he goes to flattering picture of Mrs. Cruz. day. “He’s the one that started
Sunday that Donald Trump re- garbage, and sleaze and lies.” On Friday, Mr. Cruz accused it. He knew about the picture.”
sorted to a personal attack on The battle between Mr. Mr. Trump of planting a false Mr. Cruz said Sunday he
Mr. Cruz’s wife to distract Trump, the GOP front-runner, story in the National Enquirer had no knowledge of the ad
from his own shortcomings on and Mr. Cruz, who is second in alleging Mr. Cruz had carried and didn’t know the group re-
national security and foreign- the race for convention dele- on extramarital affairs. On sponsible for it. He said the
policy matters. gates, has taken on an increas- Sunday, Mr. Cruz said the Na- race had taken its current per-
“His lack of ability and ingly nasty, personal character tional Enquirer’s chief execu- sonal turn after Mr. Trump
readiness to protect this coun- in recent weeks. tive was a close friend of Mr. questioned whether America
MARK KAUZLARICH/REUTERS
try was evident, so Donald did Ahead of the March 22 Utah Trump’s, and noted that the should maintain its position
what he always does, he tried caucuses, an anti-Trump super paper had endorsed the New within NATO, which Mr. Cruz
to find a way to change the PAC used a racy photograph of York businessman. Mr. Trump described as a “catastrophi-
subject,” Mr. Cruz said on Fox Mr. Trump’s wife, Melania, denied having any connection cally foolish proposition” that
News Sunday. shot during her career as a to the story. would “hand a massive vic-
“Donald is out of his depth, model, to mock her. In re- Mr. Trump blamed Mr. Cruz tory” to Russian President
he doesn’t understand these sponse, Mr. Trump last week for starting the spat. “They Vladimir Putin and Islamic
Sen. Ted Cruz speaking at an event in Oshkosh, Wis., on Friday. issues… He has no answers for threatened to “spill the beans” make me like the bad guy State militants.
THE WALL STREET JOURNAL. Monday, March 28, 2016 | A5
Celebrating
the best in the business
U.S. Bank is proud to present our
national top wholesale bankers for 2015.
Angela Abernathy Matthew L. Flynn Anatoly Lipetsky Paula Regan

Kenny Abramowitz John Frazier Mary Kathryn Long David Remash
Mark Aimone Lisa Freeman Victoria A. Lozzi Sergio Reyes
Dennis J. Alexander Paul J. Frisch Michael Luker Wayne C. Reynolds
Greer Almquist Dan Fulkerson Blake Malia Tim Rieder
Catherine C. Barber Thomas F. Gallo Karen T. Manduca Andrew Menz Rindels
Denise Beauchamp Karen Gareis Stephen P. Mares Steve Ristow
Christopher Braun Adam Gelfeld JP Marotta Ronda Robles
Rick Bruhn Pete J. Georgelas Jeff McBride Thomas Salmen
Mark Buettner Kurt L. Gessaman Brian P. McDonald Phillip Salter
Addie Stephens Carlisle Nicholas Gialessas Romney G. McDonald Steve Sawyer
Tselane Carpenter Gregory J. Giannone Patrick McIndoo Paul Scheer
Rafael Castellanos Peter W. Hall Paul Meyer Brian Seipke
Laura Charchian David Heller Dan J. Miller Wendy Sifford
Cynthia Chu Rebecca Hetzler Roberta Miller Andrew Sisti
Richard Clemmerson David M. Hirsch Matthew Montequin John Michael Snider
Gordon Clough Kercedric Holley-Bell Adrian B. Montero Kyle Stegemeyer
Angie Colby Lee Hord James Montgomery Dan Stevens
Mark R. Cousineau Chris Hovde David Mruk David Turner
Mark Danhoff Ryan Hutchins Carlos Muñoz Scot Turner
Kristi Dansereau Polly Ip Kyle Myers Brett Van Vooren
Christine Dean Lori Y. Jensen David Nielson Ron Vodicka
Dominic Diomede Michael Jorgensen Matthew D. Opheim Sherrie L. Vogt
Jim Dockstader David Kaiman Chad T. Orrock Jill Warman
Christopher Doering Judy Kelly Raymond J. Palmer Bryan Waryjas
Kevin Donovan Geraldine Kerr Michael Paris Susan Brown Whitman
William P. Doran Garret Komjathy Dhiren N. Patel Ben Willingham
Jeff Duncan Steven G. Krenik Timothy K. Patrick Lisa Odom Winczewski
Jason Edrington Caroline Krider Michelle Pearce Edward E. Wooten
Mike Edwards Stanley J. Krukowski Jr. Johnny L. Perry Cindy Wright
Christian M. Feinauer Beth A. Ladd Erin Peterson Brandon R. Zabrocki
Tamara M. Fisher Robert Lampson Laura Peterson
Denise Flores Eric Lanter Mike Raarup
Celebrating and honoring our own — the leading bankers in the business. These distinguished
individuals know what it means to go above and beyond professionally, personally and
responsibly. They are committed to their craft — their dedication second to none. They not
only meet their clients’ expectations, but exceed them, working to provide the highest quality
products and services suited to their specific needs. Making the impossible…possible.
Businesses — large and small — across the country trust U.S. Bank to help them reach their
financial potential through customized solutions, flexible terms and competitive pricing. Be a
part of their team — and ours.
usbank.com
©2016 U.S. Bank. Member FDIC. 8008

A6 | Monday, March 28, 2016 * * THE WALL STREET JOURNAL.
Sanders Wins Big, Still Faces Uphill Climb

Vermont senator is
Where the Delegate Tally Stands REMAINING AVAILABLE
far behind Clinton in Estimates as of 4:30 p.m. EDT Sunday
PLEDGED DELEGATES
NEEDED TO WIN
Democratic delegates REPUBLICAN PRIMARY NEEDED TO WIN 1,237 NUMBER SHARE
after caucus victories
Donald Trump 739 498 61%
BY BYRON TAU Ted Cruz 465 772 94
STEVE DYKES/ASSOCIATED PRESS

Vermont Sen. Bernie Sand- John Kasich 143 1,094 133
ers’s resounding victories in
three weekend caucuses gave
his campaign a much-needed DEMOCRATIC PRIMARY Superdelegates* NEEDED TO WIN 2,383
boost but did little to slow Hil-
lary Clinton’s march to the Hillary Clinton 1,712 671 31%
Democratic Party’s presiden-
tial nomination. Bernie Sanders 1,004 1,379 63
His wins in the Washington, Bernie Sanders, interrupted by a bird Friday in Portland, Ore., *Party leaders and elected officials who have publicly declared their support for one candidate but who may change their minds at any time.
Alaska and Hawaii caucuses, has won five of the last six Democratic nominating contests. Source: Associated Press THE WALL STREET JOURNAL.
coupled with his strong fund-
raising, strengthen Mr. Sand- part of America. We did not scheduled in Appleton, Mil- win. In the run-up to the con- he still trails Mrs. Clinton thirds of the remaining
ers’s argument for remaining do well there…We’re out of the waukee, Kenosha and La test in Alaska, she called into a 1,004 delegates to 1,712 dele- pledged delegates to clinch the
in the Democratic race. South, we’re heading to the Crosse this week. radio station and recalled a pe- gates, including superdele- nomination.
But his path to the nomina- West Coast which is the most After Wisconsin, the next riod after college when she gates, according to the Associ- After a busy March, the
tion remains contingent on big progressive part of America. big contest is in late April in briefly worked at a fish cannery ated Press. pace of contests in April and
victories in the roughly two We think we’re going to do New York, a delegate-rich in the state. Mr. Sanders entered March May slows down significantly.
dozen states and territories very well there.” state that carries symbolic Mrs. Clinton has built her trailing Mrs. Clinton by fewer After Wisconsin, Wyoming
that have yet to vote—and on The Sanders campaign ac- meaning for both campaigns. delegate lead on nonwhite and than 30 delegates after their will hold a caucus on April 9.
persuading roughly 500 party knowledges that it is fighting Mrs. Clinton represented the older voters, winning in states virtual tie in Iowa and his vic- New York’s primary is April 19,
officials and activists known an uphill battle, but Mr. Sand- state in the Senate between across the South where black tory in New Hampshire. But in while Connecticut, Delaware,
as superdelegates to abandon ers cited his momentum in ar- 2001 and 2009 and has based voters make up a significant the March 1 contests, Mr. Maryland, Pennsylvania and
Mrs. Clinton and back him at guing that “a lot of these su- her campaign there. Mr. Sand- proportion of the electorate. Sanders won only 347 of the Rhode Island hold Democratic
the July convention in Phila- perdelegates may rethink their ers was born in Brooklyn and Though Mr. Sanders trails in delegates while Mrs. Clinton contests on April 26.
delphia. position.” makes frequent references to delegates the map is poten- picked up 518. She swept all Mr. Sanders is expected to
“We think we do have a The campaign moves on to his childhood upbringing. tially friendlier for him in five states on March 15—Flor- be competitive in many of
path toward victory,” Mr. Wisconsin next. Mrs. Clinton In Alaska, Mr. Sanders beat April and May when a number ida, Illinois, Missouri, North those races. His campaign won
Sanders said Sunday on CNN. announced Saturday she Mrs. Clinton by 64 percentage of northeastern states head to Carolina and Ohio—and added victories in northeastern
“We’ve won the last five out of would campaign in Madison, points, in Washington by 46 the polls. to her delegate lead. states of Vermont, New Hamp-
six contests, all of them in Milwaukee, La Crosse and points, and in Hawaii by 40. Mr. Sanders won at least 55 Democrats award delegates shire and Maine, plus Michi-
landslide victories. What we Green Bay in advance of that Mrs. Clinton didn’t campaign of the delegates at stake on in all contests on a propor- gan.
have said from day one is the state’s April 5 primary. Mr. heavily in the three states, ex- Saturday, while Mrs. Clinton tional basis. Mr. Sanders —Ben Leubsdorf
South is the most conservative Sanders has campaign stops pecting that Mr. Sanders would won at least 20. That means would need to win almost two- contributed to this article.
before they become radicalized.”

H H H H H GOP rival Donald Trump, who
has proposed temporarily barring
CAMPAIGN Muslims from entering the U.S.,
WIRE endorsed torturing a suspected
terrorist.
H H H H H —Ben Leubsdorf
REPUBLICAN PRIMARY
FOREIGN AFFAIRS
Trump Accuses Cruz
Kerry Calls Campaign Of Stealing Delegates
Talk Embarrassing Republican presidential front-
Secretary of State John Kerry runner Donald Trump accused
said Sunday that U.S. election- Texas Sen. Ted Cruz on Sunday
year political rhetoric has be- of trying to “steal” convention
come “an embarrassment to our delegates from him.
country” in foreign capitals. The Wall Street Journal re-
“Everywhere I go, every ported Friday that Mr. Cruz
leader I meet, they ask about could walk away from Louisiana
what is happening in America. with as many as 10 more dele-
They cannot believe it,” Mr. gates than Mr. Trump, though
Kerry said in an interview that the New York businessman won
GLEN STUBBE/STAR TRIBUNE/ASSOCIATED PRESS
aired Sunday on CBS about more votes there.

overseas reaction to statements “I won Louisiana and now I
by Republicans after last week’s hear he’s trying to steal dele-
terrorist attacks in Brussels. gates,” Mr. Trump said on
“I think it is fair to say that ABC. “You know, welcome to the
they’re shocked,” said Mr. Kerry, a Republican Party.”
former senator who was the The dispute revolves around
2004 Democratic presidential 10 delegates from the state who
nominee. “It upsets people’s sense were either assigned to a candi-
of equilibrium about our steadi- date who has since dropped out,
ness, about our reliability. And to or were “unbound” delegates who
some degree, I must say to you, are free to back any candidate.
some of the questions, the way Mr. Trump said the maneu- Some Democrats want Vice President Joe Biden, above at an event in St. Paul, Minn., in February, to campaign for Hillary Clinton.
they’re posed to me, it’s clear to vering was limiting his ability to
me that what’s happening is an
embarrassment to our country.”
After the March 22 attacks in
the Belgian capital, Republican
transition to a general-election
campaign against likely Demo-
cratic nominee Hillary Clinton. “It
tells you what a crooked system
BIDEN gan, by 15 points in Ohio and
22 points in North Carolina,
exit polls show.
Should she find herself in a
Clinton have been peers, col-
leagues and rivals. Their rela-
tionship has been cordial, but
they aren’t especially close,
Western allies, which led to
the death of Libyan leader
Moammar Gadhafi. He worried
about a power vacuum in the
presidential candidate Ted Cruz we have and what a rotten po- Continued from Page One general election showdown people who know them both wake of Gadhafi’s fall, a former
called for police to “patrol and litical system we have,” he said. Mr. Biden, who often talks with Republican Donald say. In private conversations adviser said. Libya now has be-
secure Muslim neighborhoods —Aruna Viswanatha about his upbringing in Scran- Trump, she faces stiff competi- with friends and political fig- come fractured and destabi-
ton, Pa., in a family that en- tion for that demographic. In ures, Mr. Biden has voiced con- lized, and Islamic State has
dured financial hardships, has his primary victory in Michi- cerns about what he sees as spread inside the country.
shown an affinity with work- gan, for example, Mr. Trump the Clintons trying to capital- In an interview on MSNBC
ing-class whites that could won 45% of male voters, more ize on their public service, by earlier this month, Mrs. Clin-
help overcome doubts about than Ohio Gov. John Kasich giving paid speeches, for ex- ton said it isn’t easy for na-
Mrs. Clinton’s candidacy. He and Texas Sen. Ted Cruz com- ample. tions to make the transition
appears willing to hit the trail bined. Mrs. Clinton has said re- from dictatorship to democ-
for the potential Democratic Earlier this month, Mrs. peatedly she isn’t compro- racy. As for taking military ac-
ticket. Clinton played into perceptions mised by virtue of taking tions in Libya, she said the U.S.
Looming over the possible among working class white speaking fees from interest couldn’t simply turn its back
collaboration, however, are men that she is tone deaf to groups. “Anybody who thinks on Arab allies that had asked
tensions between two of the their struggles when she said they can buy me doesn’t know for help in combating Gadhafi.
nation’s most important Demo- at a televised town hall event me,” she told the Des Moines A sticky moment in dealings
crats: a sitting vice president that under her presidency, coal Register early this year. between Mr. Biden and Mrs.
and a former secretary of state miners would find themselves Mr. Biden and Mrs. Clinton Clinton came last year, when
who might wind up with the served together in the Senate he weighed a possible presi-
job he has long coveted. and then faced each other in dential bid. As Mr. Biden spent
In one notable instance, Mr. Working-class the 2008 Democratic presiden- months deliberating, Mrs. Clin-
Biden said in a January televi- white men tial primary. One person close ton said she was willing to
sion interview that Mrs. Clin- have shown to Mrs. Clinton’s previous cam- give him space and time.
ton was “relatively new” to the doubts about paign said she came to respect Yet Mr. Biden was angered
issue of income inequality and Hillary Mr. Biden’s debating skills but by what he believed to be
that no one doubted Mr. Sand- Clinton’s didn’t see him as a threat. Mr. quiet efforts by her allies to
ers’s “authenticity” on that is- candidacy. Biden dropped out of the race try to dissuade him from run-
sue. after a poor showing in the ning, blaming them for news
Within minutes, according Iowa caucuses. reports highlighting past posi-
to people on both sides famil- “out of business.” After President Barack tions that might hurt him. In
iar with the matter, an aide to Sen. Joe Manchin, a West Obama took office, Mrs. Clin- particular, he believed Clinton
Mr. Biden got a phone call Virginia Democrat who has en- ton was named secretary of allies suggested he was cool to
from Clinton campaign senior dorsed Mrs. Clinton, said the state. As vice president Mr. Bi- the raid that killed Osama bin
A COMMUNITY EFFORT TOOK JAMAL adviser Jennifer Palmieri in-
sisting he was “wrong” in his
remark could jeopardize her
chances to win his state. He
den also had pieces of the for-
eign-policy portfolio.
Laden, people close to him say.
Mr. Biden is poised to be a
FROM INMATE TO GRADUATE. characterization. She asked if
he had more interviews sched-
phoned Mrs. Clinton to com-
plain and asked if she was sim-
She tended to be more
hawkish and inclined to use
high-profile surrogate if Mrs.
Clinton captures the nomina-
Jamal could have been another statistic. But at Communities uled and what else he planned ply writing off West Virginia, a force, while Mr. Biden was tion. Friends hope if she wins
In Schools, we showed him the way out of jail by helping him to say. The next day, Mr. Biden state no Democrat has won more skeptical of military in- the presidency she will tap Mr.
keep up with his studies so he could return to class and graduate. went on TV and softened his since her husband did in 1996. tervention, those who worked Biden for special projects, per-
Working inside public schools and with community partners, comments. She quickly sent a letter apolo- with them say. haps as an informal roving am-
we assess the needs of at-risk students and remove barriers Cooperating with Team gizing and saying she had been “In general, the vice presi- bassador.
to learning so they can succeed. And we do it for nearly 1.5 Clinton would require Mr. Bi- “mistaken.” dent was more wary about the Mrs. Clinton has hinted she
million kids every year. den set aside bruised feelings “If anybody can help use of the military and more has something in mind for Mr.
stemming from his own presi- smooth it over it could be cautious in that sense,” said Biden, saying, “History isn’t
Help more students like Jamal. dential flirtations. He chose to Joe,” Mr. Manchin said in an Leon Panetta, a former defense finished with Joe Biden” after
Go to CommunitiesInSchools.org/Jamal sit out the race, though he interview. secretary in the Obama admin- he announced he wouldn’t run.
says he has recurring regrets An aide to Mr. Biden said, istration. “And [Mrs. Clinton] One friend, Delaware Sen.
about being on the sidelines. “He will be heavily involved in was more willing to take a Tom Carper, said he has told
What is clear is that Mrs. helping the Democratic nomi- stronger stance.” Mr. Biden, “You’ll need to do
Clinton needs someone to help nee and stands willing to assist Mr. Biden wasn’t happy everything you can to get her
win over white men. She lost in states where he’s helpful.” about Mrs. Clinton’s push for elected, and if she wins she
this group to Mr. Sanders by Over the past quarter of a an American air campaign in will want you to be ambassa-
25 percentage points in Michi- century Mr. Biden and Mrs. Libya in 2011, undertaken with dor to the world.”
sign
docu
and Go
Seal the deal

from 30,000 feet.
With DocuSign, you can sign safely and securely from
anywhere on your mobile device. So you can sign and
close deals any time—even when you’re offline.
www.docusign.com/go
WORLD NEWS
Syria Retakes Palmyra From Islamic State
Russian airstrikes help the fight against Islamic State
in Iraq and Syria.
regime in strategic, Mr. Kerry added that peace
symbolic win, in latest would only come to Syria if
Mr. Assad stepped aside. He
setback for militants said the Russians were “not
wedded” to the embattled Syr-
BY RAJA ABDULRAHIM ian president.
AND DANA BALLOUT “I see no threat whatsoever
to the fact that Russia has
BEIRUT—The Syrian regime some additional foundation in
regained control of the ancient Syria, where we don’t want a
city of Palmyra on Sunday, its base, where we are not look-
first significant victory over ing for some kind of a long-
Islamic State and the latest in term presence,” he said. “If
a string of territorial losses Russia can help us to actually
for the extremist group. effect this political transition,
Capturing Palmyra could that is all to the strategic in-
open a gateway to militant terest of the United States of
strongholds to the northeast, America.”
in the provinces of Raqqa and Russian President Vladimir
Deir Ezzour, though there are Putin on March 14 ordered his
no signs Syria and its allies military to pull back most of
are prepared to launch a its forces from Syria. But Rus-
broader offensive soon. sia has said its warplanes con-
The advance by Syrian tinue to carry out strikes
President Bashar al-Assad’s against groups that weren’t
forces showed how reliant the party to a recent cease-fire,
regime remains on help from which excluded Islamic State.
Russia, which said Sunday that Regime forces withdrew
TASS/ZUMA PRESS
its warplanes had hit more from Palmyra in May, putting
than 100 targets over 24 hours up little resistance and allow-
in the vicinity of Palmyra. ing the militant group to take
The victory also adds to control of one of the country
setbacks Islamic State has suf- most treasured archaeological
fered on various fronts, in- A Syrian soldier walked Saturday in an ancient site in Palmyra. Unesco said it would assess damage to the city when conditions allow. sites.
cluding the killing last week of In August, the group demol-
a co-founder by U.S. comman- some of those ruins during its ernment-controlled cities of said Christopher Kozak, a re- alition carried out one air- ished the 2,000-year-old Tem-
dos, though its far-flung net- roughly ten-month reign over Homs and the capital Damas- search analyst at the Washing- strike near Palmyra on an Is- ple of Bel, which Unesco called
work remains a global terror- the city. cus with the provincial capital ton-based Institute for the lamic State tactical unit and one of the most significant re-
ist threat. Before Palmyra, the State media quoted Mr. of Deir Ezzour, which is di- Study of War, a think tank. But destroyed a fighting position, ligious buildings of that era.
militants had lost about 22% Assad on Sunday as saying the vided between the regime and the regime could try to reopen according to the U.S. military’s Islamic State says such sites
of the territory they held in capture of the city proved that Islamic State. Palmyra also lies the highway to Deir Ezzour’s Central Command, which over- promote idolatry at the ex-
Syria and Iraq since the start the strategy of the Syrian on routes leading to Iraq, provincial capital, he said. sees American operations in pense of its strict interpreta-
of 2015, according to an esti- army and its allies in fighting where the militants control Mr. Assad, in Sunday’s state the region. tion of Islam.
mate from research firm IHS. terrorism is effective. After some border crossings, and media reports, criticized what The White House didn’t Unesco’s director general
Palmyra is a Unesco World taking Palmyra, Syrian troops south to Jordan. he described as a lack of seri- comment on Palmyra on Sun- Irina Bokova said on Thursday
Heritage site with 2,000-year- advanced east to take its air- Syria’s army is over- ousness in fighting terrorism day. In an interview recorded that the organization would go
old ruins and holds symbolic port and prison. stretched and unlikely to try on the part of the U.S.-led co- Saturday with CBS, Secretary to Palmyra and evaluate dam-
and strategic value for the re- Palmyra is the main city on to attack Islamic State’s alition. of State John Kerry said “real age to the city’s sites “as soon
gime. Islamic State destroyed a highway connecting the gov- strongholds in the near-term, On Wednesday, the U.S. co- progress” was being made in as security conditions allow.”
Brussels Struggles as City Tries to Return to Normal

BY GABRIELE STEINHAUSER back on the subway. Caked men dressed in black, marched
blood covered a wound on his onto the square trampling
BRUSSELS—Harri Veivo, a lower lip and small cuts flowers and candles.
46-year-old Finn, walked into around his eyes, while he said Riot police quickly sur-
a candy store at the Central his ears were still ringing from rounded the marchers, many
Station here on Sunday and the explosion. of whom were doing the Nazi
bought a Belgian flag to place In this multicultural city, salute while some set off fire-
at a memorial to terror vic- which is home to the head- crackers and taunted bystand-
tims. quarters of the European ers. As police tried to push
NICOLAS MAETERLINCK/AGENCE FRANCE-PRESSE/GETTY IMAGES
Five days earlier, on Tues- Union and the North Atlantic them off the square, hundreds
day morning, Mr. Veivo was Treaty Organization, the at- of others who had assembled
riding the subway when Khalid tacks have prompted soul peacefully on the square to
al-Bakraoui, a 27-year-old Is- searching on what could have pay homage to the victims of
lamic State suicide bomber, triggered such violence—and Tuesday’s attacks applauded
detonated a bag of explosives an unprecedented security de- and chanted slogans defending
in the car in front of him. ployment. the city’s multiculturalism.
The blast pushed open the “I’m scared for my daugh- Earlier, representatives of
doors on which Mr. Veivo was ter,” said Anna Patsou, a Bel- Belgium’s Muslim community
leaning and threw him onto gian of Greek origin who runs had come to the square to
the tracks. As he scrambled the candy store’s till. Because speak out against terrorism
out of the Maelbeek subway subways stop running at 7 and violence. “Terrorists have
stop, Mr. Veivo became one of p.m., her journey home, which no humanity & no religion,”
more than a million Brussels normally lasts 40 minutes, has read a sign one held up.
residents who now have to live turned into a 1½-hour trip. Ms. Back at the candy store,
with the trauma of seeing Patsou said she tries not to Madline Oguz, 29, picked up
their city attacked by a net- People argued on Sunday at Brussels’ stock exchange, which has become a memorial to the victims. think about whether her job at some sweets on her way back
work of homegrown terrorists. the train station puts her at from church. During the ser-
Like Mr. Veivo, who on Sun- cannons. the subway station and Brus- Belgium for 18 years, gripping particular risk. “We have to vice, held on the same Schaer-
day rode the same subway line Before then, even as au- sels Airport claimed at least 31 the nation’s flag. He and his continue living as before.” beek street where police on
that almost cost him his life, thorities continued to hunt lives, not counting the three wife, his son, his daughter and In the afternoon, the atmo- Friday shot and detained a
Brussels is groping its way down the remaining members suicide bombers, and left more the daughter’s boyfriend were sphere turned tense on Place man they say was connected
back to normalcy. In a sign of of the terrorist cell behind than 300 injured. In the city’s waiting to place it, along with de la Bourse, where people to the foiled Paris attacks, the
the tensions the attacks have Tuesday’s bombings—and an- hospitals, dozens of victims some flowers, at Brussels’ had left candles, flowers and priest urged the congregation
generated, a rally in the center other planned attack foiled in continued to fight for their Place de la Bourse, a square banners urging peace. Despite not to succumb to fear.
of Brussels to memorialize the Paris on Thursday—tourists lives, having suffered severe that has morphed into a spon- a demand by Brussels and Bel- But, said Ms. Oguz, this
dead was disrupted by a few and residents mingled in Brus- burns and lacerations when taneous memorial for the vic- gian authorities not to hold a Easter Sunday is different.
hundred far-right protesters sels’ city center on a sunny the bombs exploded. tims of Tuesday’s attacks. planned “March Against Fear,” “Usually there are kids giving
who were themselves dis- Easter Sunday. “We like this country,” said “I knew I had to do it fairly because police were needed out Easter eggs, now there
persed by police with water The coordinated attacks on Mr. Veivo, who has lived in soon,” Mr. Veivo said of going elsewhere, several hundred were security personnel.”
WEB Failure to dismantle the Is- on to his daughter, who ac- the terrorist network emerged
BELGIAN FEDERAL POLICE/EUROPEAN PRESSPHOTO AGENCY
lamic State network before it

could strike in Paris and Brus-
cording to witnesses and video
footage appeared to be pre-
as Belgian authorities searched
an apartment in the Brussels
Former Envoy
Continued from Page One
sels has been particularly vex-
ing for Belgian authorities,
school-age, and defied police
orders to hand over his back-
district of Saint-Gilles last Oc-
tober. There, police found
To U.N. Among
linked to the Paris and Brus- who identified one of the pack and lie down, according roughly 1,000 digital photos Belgian Victims
sels attackers, which in turn group’s senior operatives—the to authorities. Police shot him and scores of false documents
have led authorities to other suspected ringleader of No- in the leg and deployed a with fake names, including André Adam, a former Bel-
suspects. One man appre- vember’s Paris attacks, Abdelh- bomb-disposal robot to neu- aliases used by three accused gian ambassador to the United
hended in Italy on Sunday is amid Abaaoud—long before ei- tralize his backpack. Officials terrorists. Nations, was among the dead
suspected of having supplied ther incident. In January 2015, said the daughter was un- A senior U.S. official said in last week’s terror attacks in
several suspected attackers they killed two of his alleged harmed and safely evacuated. the array of arrests over the Brussels, as Belgian authorities
with fake documents. Three associates in a police raid, Mr. Ameroud and another weekend showed that the net- identified more of the victims.
other men detained last week, while Mr. Abaaoud is believed charged suspect, identified by work had become “very so- For five days, Belgian foren-
one near Paris and two in to have escaped to Syria before prosecutors as Rabah N., are phisticated.” sic teams have worked to iden-
Brussels, also had links to the slipping back into Europe suspected of having helped a Mr. Cheffou, the suspected tify those killed in Zaventem
attackers, and were allegedly sometime before the Novem- Police believe Mr. Cheffou was 34-year-old Frenchman named Brussels airport attacker, was Airport and the Maelbeek sub-
plotting a terror act in France. ber attack in Paris. He was this man at Brussels Airport. Reda Kriket, who was arrested charged with terrorist mur- way station. The severity of
That led Sunday to the de- killed in a French raid a few in France on Thursday and der Saturday. Belgian authori- the injuries and the victims’
tention of a 32-year-old days after the Paris attacks. Massoud, a renowned rebel who officials said had been “in ties were still in the process of many countries of origin have
Frenchman in Rotterdam, who “They regathered, reorga- leader in the fight against the an advanced stage” of planning establishing with the help of hampered identifying the dead.
also is suspected of being in- nized,” said Eric Van Der Sypt, Taliban, was killed on Sept. 9, an attack. Authorities said they DNA and fingerprints whether The forensic team has iden-
volved in the foiled French spokesman for Belgium’s fed- 2001, by two Belgian jihadists had found explosives and he was, indeed, one of the at- tified 24 of the at least 31 peo-
plot, according to French and eral prosecutor. posing as journalists. During weapons in his suburban Paris tackers, the prosecutor’s ple who died in the twin at-
Dutch officials. On Sunday, Mr. Van Der his trial, Mr. Ameroud denied apartment during the raid. spokesman said. tacks. Of the first identified, 13
The string of arrests, which Sypt said Belgian prosecutors any involvement with the kill- Belgian and French officials People who know Mr. Chef- were Belgians and 11 were for-
come on top of multiple other had charged 38-year-old Ab- ing of Mr. Massoud, according said they were tracking associ- fou, a 31-year old social activ- eigners, the Belgian Crisis Cen-
detentions in recent months, deramane Ameroud with par- to Isabelle Coutant-Peyre, his ates of Mr. Kriket, who was ist who dabbled in journalism, ter said.
suggests the terror networks ticipation in a terrorist group lawyer at the time. convicted of terrorism in ab- said they were stunned to hear Mr. Adam, the former Bel-
being pursued by European au- in relation to a foiled terrorist Mr. Ameroud was ar- sentia in Belgium last year. of his alleged role. gian ambassador to the U.N.
thorities spread beyond Paris plot in France. rested again Friday in a raid in The man arrested in Italy is “He’s a bit wacky, but he and retired consul general of
and Brussels. “We know there Mr. Ameroud was convicted the Brussels neighborhood of a 40-year-old Algerian named was never part of the radical Belgium in Los Angeles, died
are other networks,” France’s in 2005 by a French court and Schaerbeek, home to two safe Djamal Eddine Ouali, who was circles, not as far as I know,” during the attack at the Brus-
President François Hollande served prison time after being houses allegedly used by the wanted in connection with a said Ahmed El Khannouss, a sels airport at the age of 79,
said last week. “Even if the sentenced to seven years for network that orchestrated the fake-documents factory discov- district councilor in Molen- the consulate general said.
network which conducted at- having plotted, as part of an al attacks in Brussels and Paris. ered in Brussels a month be- beek, a heavily Muslim Brus- His wife, Danielle Adam,
tacks in Paris and Brussels is Qaeda operation, the assassi- As police sought to appre- fore the Paris attacks. sels district where several sus- was gravely wounded by the
about to be neutralized, there nation of Afghan commander hend him on the platform of a Italian police say evidence pects linked to the Paris and blasts and has been hospital-
is always a threat hanging.” Ahmad Shah Massoud. Mr. tram station on Friday, he held of Mr. Ouali’s connection with Brussels attacks grew up. ized. —Inti Landauro
The Lincoln Motor Company’s AL Rick y Danley AZ David

Buhler, Thomas Car twright,
Nicholas Zoccola MN Brian
Lee, Chris O’Hara, Todd Walz
best from sea to shining sea. John Stephens, Kenneth
Vanburen CA Barr y Alves, Tony
MO Brian Boyer, Scott Lefever
Esq., Paul Reeves NC Lamar
Breunig, Rober t Garbo, Mar tin Bordeaux NE Brian Sich,
The Lincoln Motor Company would like to Gonzalez, Jeremy Guller, Jovon Matthew Swoboda, Jeremy
Roe CO Danen Morse, Louis Sykes, Matt Whitmore NH
congratulate 113 outstanding individuals who Yacovetta CT Jeff Tanditash, Howard Zusman NJ Scott
cultivate a commitment to excellence. We Thomas Tropiano FL Amine Batchelder, Wayne Calabretta,
commend Elite Achievers who excel in areas Allam, Nicholas Cherok, Michael Wilton Estrella, David Glass,
D’Amelia, Rober t Emmrich, Janno Kadakas, Elizabeth
such as client satisfaction, sales and training Rolando Garcia, Brian Gurney, Panacek, Dorota Szproch-ulu,
at our Lincoln Stores. This is an opportunity James Halas, David Hargroves, Jeff Young NY Donald Grounds,
to celebrate their accomplishments and Joe Krajczewski, Mark Lauretta, Anthony J. Paladino,
Tony Lullo, Gale Muzik Donna Tannenbaum OH Mark
dedication to a community that encourages GA Nasser Alibakhsh, Barry Kelly, Campbell, Keith Dallas, Scott
outstanding leaders. Jeremiah Wright IL Mar ty Butler, Dickerhoff, Lettie Frease,
Melissa LeBran, Jerr y Mangan, John Hr ynyszyn, Paul Prenatt,
Greg Widmar IN Fe Siebers Timothy Thieman, James
KS Kristopher Archibald, Waldrop PA Joe Bilock, Walt
Christie Gif t LA Bobby Devillier, Bronder, Anthony Griff ith,
Mark Heber t Sr. MA Dennis John Loposk y, Alex Soy fer,
Eaniri, Paul Giangrande, Edward Tissue SC Steve
John Mar tin, Daniel Obara Peckham SD Nicholas Wilson
MI Denise Baiardi, James TX Khalil Benazouz, T. Shane
Balder, Jerr y Burnard, Mark Donaldson, Dwayne Dossett,
Caldwell, Christopher Conley, Frederick Hoyer, Steve Kulas,
Jeffrey Gayari, Jere Law, Elie David LaCroix III, Will Luirette,
Malouf, Michael Maltese, Wael Shannon Miller, Cur tis Romine,
Mouzahem, Scott Oliverio, Michael B. Stuar t, Bobby
Mario Seman, Michael L. Stanford, Thigpen VA Timothy Breeden
Nanette Vizachero, Rober t WI Anthony Garbo
Wagner, Richard Wolf,
A10 | Monday, March 28, 2016 THE WALL STREET JOURNAL.
WORLD NEWS
Easter Attack in Pakistan Kills Dozens

Taliban faction says it strongest terms today’s ap-
palling terrorist attack in La-
targeted Christians in hore,” a spokesman for the
bombing at park near National Security Council said.
He said the U.S. would con-
children’s play area tinue to work with its partners
in Pakistan “to root out the
BY SAEED SHAH scourge of terrorism.”
AND QASIM NAUMAN Pakistan has been fighting a
Pakistani Taliban-led insur-
ISLAMABAD, Pakistan—At gency since 2007. In June
least 65 people were killed and 2014, the military launched a
hundreds more injured in an continuing operation against
apparent suicide bombing at a the group’s bases in the coun-
Pakistani park that an Islamic try’s tribal areas, which border
militant group said was aimed Afghanistan.
at Christians celebrating Eas- Islamabad says the Paki-
ter. stani Taliban, which has now
A Pakistani Taliban faction splintered into different fac-
claimed responsibility for the tions, is based in Afghanistan.
attack in Lahore, a city in the The main faction claimed
RAHAT DAR/EUROPEAN PRESSPHOTO AGENCY

eastern part of the country responsibility for a 2014 gun-
with a sizable Christian mi- and-grenade assault on a
nority. Terrorists bombed two school in the northwestern
churches in the city last year, city of Peshawar, in which
killing 12. more than 130 children were
Police said Sunday’s blast killed. Another faction said it
was near a play area for chil- was behind this year’s univer-
dren. Local television footage sity attack.
showed distraught parents While emergency workers
running with injured children in Lahore struggled to help
and ambulances ferrying the those injured in the park blast
wounded to hospitals. on Sunday, in Islamabad secu-
“This was a soft target, in- Relatives of victims gathered outside a hospital in Lahore on Sunday after a bombing that killed dozens and injured hundreds. rity forces clashed with dem-
nocent people, women and onstrators angry that a police-
children were hit,” said Haider ily to the park. It’s become have largely killed other Mus- Lahore is the capital of without discrimination. Wash- man had been executed after
Ashraf, deputy inspector gen- such a vulnerable situation lims. They have also targeted Punjab province, the most ington in the past has accused being found guilty of murder-
eral of police in Lahore. “It is now. One wonders what the religious minorities, which populous part of Pakistan, and the Pakistani military and its ing a politician he accused of
like we’re in a state of war.” next target will be,” Mr. make up about 5% of Paki- it has been spared the worst intelligence agency of only blasphemy.
The park that was attacked Chaudhry said. stan’s population and include of the violence wrought by ex- battling jihadist groups that Police fired tear gas in an
has long been a favorite for The Pakistani Taliban, two million Christians. tremists in other parts of the attack Pakistan, and not those effort to disperse the crowd of
Christians during Easter, said which have been fighting with Sunday’s bombing repre- country, which is home to a that fight in Afghanistan and around 2,000 as marchers con-
Cecil Shane Chaudhry, execu- authorities for years, say they sents a significant setback for large number of jihadist or- India. verged in front of Parliament.
tive director of the National want to overthrow the Mus- Pakistan’s security forces, ganizations. Ehsanullah Ehsan, a spokes- “We are ready to die to pro-
Commission for Justice and lim-majority country’s govern- which have been carrying out “They may have martyred man for the Pakistani Taliban’s tect the honor of the Prophet,”
Peace, an organization that ment and impose strict Islamic a stepped-up campaign against people today but they have Jamaat-ul-Ahrar, or freedom some chanted.
campaigns for human rights rule. The group is aligned with the Pakistani Taliban and not lessened our resolve to fighters group, called report- —Safdar Dawar
for minorities in Pakistan. al Qaeda, a rival to Islamic other jihadist groups over the fight terrorism,” said Rana ers and said his group had in Peshawar, Pakistan
“It’s tragic for the Christian State, the terror organization past two years. The park at- Sanaullah, law minister of “carried out this blessed oper- contributed to this article.
community, yes, but for the behind recent attacks in Eu- tack follows a terrorist assault Punjab. ation” that “targeted the
nation too—for any citizen to rope. on a university earlier this Pakistan says it is now Christian festival of Easter.” Facebook’s ‘safety check’ for
not be able to take their fam- Pakistani Taliban attacks year that left 21 dead. fighting all militant groups The U.S. “condemned in the attack hits a snafu................. B4
Turkish Leader Faces Cool Welcome to U.S. Israeli

When Turkish President Re-
other world leaders,” said a se-
nior U.S. administration offi-
groups and press-freedom ad-
vocates have accused Mr. Er-
Court
cep Tayyip Erdogan last trav-
eled to Washington, for a state
visit in 2013, President Barack
cial. “When it comes to the
NSS, there is not a robust [bi-
lateral] schedule, so it’s not as
dogan of using the feud to
clamp down on his critics.
When Mr. Biden traveled to
Blocks
Obama praised him for launch-
ing peace talks with Kurdish
separatists and leading his
if Erdogan is being excluded.”
Delegations from 51 nations
are expected to attend the sum-
Istanbul in January, his meet-
ing with journalists critical of
Mr. Erdogan upset the Turkish
Gas Deal
country into a new era of eco- mit, which begins Thursday. Mr. president and his allies. BY ORR HIRSCHAUGE
nomic prosperity. Obama has only one planned “We don’t need any external AND RORY JONES
MARK WILSON/GETTY IMAGES
one-on-one meeting—with Chi- advice,” a senior aide to Mr.

By Dion Nissenbaum nese President Xi Jinping. Erdogan said last week. “This TEL AVIV—Israel’s Supreme
in Istanbul and Carol E. Turkey is at the center of is the behavior of a big brother Court on Sunday ruled against
Lee in Washington the fight against Islamic State, giving lessons. We need a landmark deal to develop
the struggle to end Syria’s civil friendship.” and export the country’s off-
Mr. Erdogan can expect a war, and the global refugee cri- Turkish officials cast the shore gas reserves, a setback
very different reception when sis, making Mr. Erdogan a key crackdown as a temporary and for Prime Minister Benjamin
he returns this week for the partner for Western leaders. unfortunate outgrowth of the Netanyahu, who campaigned
Nuclear Security Summit. Mr. Erdogan has alienated Messrs. Erdogan and Obama in the Rose Garden in May 2013 need to defend the country’s for it.
Mr. Obama has turned down some allies by overseeing a security from Kurdish mili- The panel of judges called
Mr. Erdogan’s request to join crackdown on domestic critics trying for months to lay the Park, sparking criticism from tants, Islamic State and Turk- the deal unconstitutional, cit-
him for the inauguration of a and waging a new fight with groundwork for a meeting in the White House. Turkey em- ish traitors trying to over- ing a clause in its framework
Turkish-funded mosque in Kurdish insurgents. The allies’ Washington with Mr. Obama. barked on a new campaign to throw the government. that gave energy companies
Maryland, and the U.S. presi- need to work with the Turkish Mr. Obama once said he stifle dissent. “Turkey has a critical pe- pricing and regulatory stabil-
dent has no plans for a formal president has tempered their counted Mr. Erdogan among In December 2013, Turkish riod where security can come ity for 10 years regardless of
one-on-one meeting with his public criticism. his closest allies. The two men police arrested dozens of peo- before freedom, but these are potential shifts in the govern-
Turkish counterpart, who is a “This is one of the least would talk regularly, and Mr. ple in a political-corruption just short moments,” said the ment.
vital ally in the fight against bright spots for Mr. Erdogan’s Obama hosted Mr. Erdogan for probe that threatened to reach aide, who urged America to The main stakeholders in
Islamic State, U.S. officials told foreign-policy agenda, said dinner when he and his family Mr. Erdogan’s door. temper its criticism. “Turkey the fields, U.S.-based Noble
The Wall Street Journal. Soner Cagaptay, director of came to Washington in May Mr. Erdogan responded to still has its face towards the Energy Inc. and Israeli partner
The White House is instead the Turkish Research Program 2013. At the time, Mr. Erdogan, the investigation by accusing a West. It’s not rhetoric.” Delek Group, had argued that
expected to have Vice Presi- at the Washington Institute for then serving as Turkey’s prime former ally, Turkish cleric U.S. officials have expressed the stability clause was re-
dent Joe Biden meet with Mr. Near East Policy. “He took a minister, had just launched Fethullah Gulen, of overseeing private concerns to Turkish quired for them to make the
Erdogan. stellar personal relationship historic peace talks with Kurd- the creation of a parallel state. leaders about the crackdown investments necessary to de-
Senior U.S. administration with the U.S. president and ish separatists. Mr. Obama Turkey has targeted individ- on Kurdish separatists, which velop the fields.
officials said the decision look where it is today.” called for deeper economic ties uals and businesses linked to resumed last summer. While The deal will be suspended
shouldn’t be taken as a slight The U.S. and its allies need when the two leaders held a Mr. Gulen, who lives in exile in the Obama administration sup- for one year, the court said.
because the two presidents Mr. Erdogan’s help in clamping Rose Garden news conference. Pennsylvania, including the ports Turkey’s fight against Mr. Netanyahu’s government
met in November at the Group down on Islamic State extrem- Two weeks later, Turkish country’s largest newspaper. the Kurdistan Workers’ Party, will be required to amend it
of 20 summit in Turkey, and ists leaving Syria and contain- police launched a violent Hundreds of Turkish journal- or PKK, U.S. officials have been during that period and poten-
spoke by phone in February. ing the migrant crisis stoked crackdown against protesters ists who have criticized Mr. Er- worried about the use of tanks tially put the details to a vote
“The president has been in by the war in Syria. trying to prevent construction dogan have been forced from and troops against Kurdish in the Israeli parliament.
such regular contact with few Turkish officials have been of a mall in Istanbul’s Gezi their jobs. Human-rights militants. The companies have already
been through several rounds
of regulatory and legislative
TAIWAN MYANMAR over of government to a demo- important role the military’s hurdles. Israel sits on fields
World China-Friendly Party Army Displays Power cratically elected administration
directed by ruling-party leader
commander-in-chief plays in poli-
tics. The charter enshrines a
with more than 32 trillion cu-
bic feet of gas.
Watch Names New Leader
The China-friendly Nationalist
In Military Parade
Myanmar’s armed forces put
Aung San Suu Kyi.
The Armed Forces Day cele-
quarter of Parliament’s seats for
the military and gives them con-
“The supreme court’s reso-
lution severely threatens the
Party elected its first female its might on display on Sunday brations, which commemorate trol over key ministries. It also development of Israel’s gas re-
leader after ousting her as its in a yearly parade reinforcing the Myanmar’s armed resistance to prevents Ms. Suu Kyi from at- serves. Israel is seen as a
presidential candidate ahead of central role it will continue to the Japanese in World War II, taining the presidency. country with exaggerated legal
January elections that were won play despite the imminent hand- have long sent a message of the —Shibani Mahtani interference that makes doing
NIGERIA by pro-independence rivals. business hard,” Mr. Netanyahu
Hung Hsiu-chu, a veteran leg- said on his official Twitter ac-
Arrested Girls Claim islator and former teacher, was count. “We will seek alterna-
Boko Haram Links elected as leader over three tive ways to overcome the se-
A pair of young would-be sui- other candidates on Saturday rious harm inflicted on Israel’s
cide bombers set off an interna- and likely faces a difficult time economy by this hard to un-
tional investigation when they rebuilding the party after its derstand resolution.”
were arrested at a roadblock in January electoral defeat. Delek and Noble issued a
Cameroon on Friday, both insist- Ms. Hung succeeds Eric Chu, joint statement with other
ing they were among the 276 who was the party’s eventual companies involved. “In its
schoolgirls the Boko Haram Isla- presidential candidate and who resolution the court accepted
mist insurgency abducted from resigned as party chairman after the framework in whole, op-
Chibok, Nigeria, in 2014, Nigerian the defeat. posing only the stability
officials said. The independence-leaning clause. We congratulate such a
On Sunday, a spokesman for Democratic Progressive Party’s resolution,” it said. “We call
Nigeria’s President Muhammadu candidate, Tsai Ing-wen, won the upon the government to put
Buhari, said the government was presidential election, and her into place terms that include
dispatching two parents from party gained a decisive parlia- stability in a timely fashion.”
Chibok to check whether the mentary majority. Thousands of Israelis pro-
SOE ZEYA TUN/REUTERS
girls are their daughters. Ms. Tsai, who will be inaugu- tested the deal in the past
But there was also consider- rated as president in May, has year, complaining it would line
able doubt: A second spokesman refused to meet Beijing’s de- the coffers of big business, of-
said the girls may have been mand that she endorse its claim fer Israeli consumers uncom-
only 10 years old, too young to that Taiwan and the mainland petitive pricing compared with
number among the kidnapped are part of a single Chinese na- other Western countries, and
students. tion. Tanks paraded on Sunday in Myanmar’s capital, Naypyitaw, to mark Armed Forces Day. The military send too much gas outside Is-
—Drew Hinshaw —Associated Press will be entering into a power-sharing arrangement with a democratically elected administration. rael, an energy-security risk.
WORLD NEWS
Pope OffersHope, EU Ties Helped Ireland Rise

DenouncesTerror
BY DEBORAH BALL in the power of dialogue with
Islam, once saying he would
In his Easter Sunday ad- be willing to speak with Is-
dress, Pope Francis delivered a lamic State terrorists in the
message of hope for strife- name of peace. EUROPE FILE
torn nations in the Middle On Holy Thursday, the pope SIMON NIXON
East and Africa while de- traveled to a migrant recep-
nouncing “blind and brutal” tion center outside Rome to
violence wrought by terrorists perform the traditional Holy This week’s commemora-
and decrying countries that Thursday feet-washing cere- tions of the 100th anniver-
refuse to welcome migrants mony. The pope washed the sary of the Easter Rising are
and refugees. feet of eight men and four an opportunity for the coun-
The twice-yearly “Urbi et women, including Eritrean try to “remember, reflect and
Orbi” address capped a Holy Coptic Christians, Nigerian reimagine,” according to the
CHARLES MCQUILLAN/GETTY IMAGES

Week that has unfolded in the Catholics, a Hindu man from Irish government. If that
shadow of the terrorist attacks India and three Muslims from seems a subdued approach to
in Belgium, a deadly assault in Pakistan, Mali and Syria. what is these
an Iraqi stadium and deep dis- During Good Friday ser- days re-
cord over the fate of tens of vices in Rome—which took garded as
thousands of migrants place under heavy security— the decisive
stranded in the Balkans and the pope used strong language moment on
Greece. to decry terrorism, alluding to the path to
“Our world is full of per- the persecution of Christians Irish inde-
sons suffering in body and and other religious minorities pendence, it is a measure of A man displays a copy of the Proclamation of the Irish Republic during a Sunday parade in Dublin.
spirit, even as the daily news in recalling “our sisters and the deep sensitivities that
is full of stories of brutal brothers killed, burned alive, still surround that doomed Ireland, a backward, poor, formation from dictatorship affairs, ahead of the U.K.’s
crimes which often take place throats slit and decapitated by rebellion against British rule. agrarian economy for much to democracy, so are Irish June 23 referendum on EU
within homes, and large-scale barbarous blades amid cow- of the 20th century, is now a political leaders united in the membership.
S
armed conflicts which cause ardly silence.” ome of those sensitivi- dynamic, globalized hub for belief that EU membership
F
indescribable suffering to en- He blasted “terrorist acts ties are historical, re- information technology, has played a central role in or Ireland, a British de-
tire peoples,” he said. committed by followers of flecting the fact that pharmaceuticals, agribusi- the country’s social and eco- cision to quit the EU
Throughout this year’s Holy some religions that profane the Rising, which cost 485 ness and financial services. nomic transformation, help- could pose serious
Week ceremonies, Pope Fran- the name of God and that use lives, was widely opposed by Ireland is also politically ing overcome the suffocating challenges. Irish politicians
cis has used powerful words the holy name to justify their many Irish citizens, not least more stable than for much of Catholic conservatism of the fear the creation of an EU ex-
and gestures to denounce ter- unprecedented violence.” the families of some 200,000 its history. decades after independence. ternal border between the
rorism and war, while at the In his Sunday address, Pope Irish men then serving in the On a broader political Dublin also credits the EU U.K. and Ireland could com-
same time expressing faith in Francis recalled not only the British army. Then there are level, relations between with playing an important plicate trade between Ireland
the power of interreligious di- assault last week in Brussels the sensitivities regarding Northern and Southern Ire- role in the Northern Ireland and its most important ex-
alogue to stop violence and that killed at least 31 people, the position of Northern Ire- land are on a more stable peace process. Small wonder port market. They also fear
heal divisions. but also attacks in Turkey, Ni- land, whose opposition to footing than at any time that Irish government minis- the consequences for the fu-
The 79-year-old pontiff has geria and other African coun- Irish independence led to the since partition, with the once ters today proudly display ture direction of the EU,
been unwavering in his faith tries. partition of the island, fuel- highly militarized border the EU flag alongside the without the U.K.’s influential
ing decades of resentment now effectively dismantled. voice in favor of open mar-
and violence. And there is And the remarkable turn- kets. And they fear the con-
also sensitivity toward the around in the historically
A British decision to sequences for the peace pro-
U.K., whose brutal reprisals strained relationship be- quit the bloc could cess.
against the Rising ringlead- tween Ireland and the U.K. Certainly, there are some
ers turned Irish opinion deci- was underlined by recent
pose big challenges in Ireland who fear that,
sively in favor of indepen- state visits by the queen to for Dublin. post-Brexit, the country
dence, but which is now one Ireland—the first by a British would be forced to recon-
of Ireland’s most valued al- monarch since indepen- sider its own relationship
lies. dence—and by the Irish pres- Irish tricolor in their offices. with the EU or, at the very
ERIC VANDEVILLE/ABACA PRESS
Even so, Ireland can look ident to the U.K. But as Ireland remembers least, its membership in the
back on 1916 with the self- the events of 1916, and re- eurozone. But these voices
A
confidence of a country now t the heart of Ireland’s flects on its successes in the are in a tiny minority. For
more stable and prosperous modern success lies its last 100 years, its efforts at most Irish, the country’s Eu-
than any time in its modern membership in the Eu- reimagining the country’s fu- ropean destiny is unques-
history. The economy has ropean Union. Just as many ture are tinged with anxiety. tioned. There is no political
largely recovered from the in Southern Europe believe Once again, relations with constituency for euroskepti-
shock of its burst property belonging to the EU was cru- the U.K. are casting an cism of the sort that led to
Pope Francis waves to the crowd at the Vatican on Sunday. bubble and banking collapse. cial to their political trans- alarming shadow over Irish the U.K.’s referendum.
© 2016 Dow Jones & Co., Inc. All rights reserved. 3DJ3337
KNOW MORE IN A SNAP
DISCOVER OUR CHANNEL ON SNAPCHAT Wine and Dine

Regency Dining Pedestals
WSJ.COM/SNAPCHAT Luxurious mahogany. Superior craftsmanship. Regency elegance.
These Regency-period dining pedestal cupboards offer
much more than meets the eye. As beautiful as they are
functional, the Neoclassically-inspired mahogany pedestals
conceal a dish warmer and wine cellarette, and each is
topped by their cutlery urn for conveniently storing knives
and utensils. Circa 1820. 23”w x 20”d x 68”h. #30-1147
630 Royal Street, New Orleans, Louisiana • 877-677-2801 • ws@rauantiques.com • rauantiques.com

Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry.
Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
15MSRA234-01-130490-15
WORLD NEWS
Former Malaysian Leader Gathers Broad Coalition in Push for Resignation of Prime Minister
SHAH ALAM, Malaysia—For- 1MDB’s board of advisers.
mer leader Mahathir Mohamad “I regret pushing his ap-
led a gathering of more than pointment as prime minister,”
1,000 politicians and activists Dr. Mahathir told the crowd.
calling for the resignation of Pressure on Mr. Najib has
Prime Minister Najib Razak. grown since The Wall Street
The so-called Save Malaysia Journal reported last year that
alliance is made up of mem- government investigators had
bers of political parties and found that nearly $700 million
civil society groups as well as had entered his personal ac-
prominent dissidents from the counts via banks, companies and
ruling party, the United Malays other entities linked to 1MDB.
National Organization, among Mr. Najib has denied wrong-
them Dr. Mahathir (center, doing or taking money for per-
flanked by former ministers). sonal gain. 1MDB also has de-
Dr. Mahathir said the alli- nied wrongdoing or paying any
ance had collected more than funds to the prime minister’s
100,000 signatures on a peti- personal accounts and has said
tion for Mr. Najib’s ouster. it is cooperating with investi-
Some at the gathering have gations. The attorney general
long and sometimes bitterly has said the funds were a legal
opposed Dr. Mahathir. But they personal donation from Saudi
were united Sunday in their Arabia and that most of the
OLIVIA HARRIS/REUTERS
desire to see Mr. Najib step money was returned.
down over a scandal involving Mr. Najib’s office didn’t re-
state investment fund spond to requests for comment
1Malaysia Development Bhd., on Sunday’s gathering.
more commonly known as —Yantoultra Ngui
1MDB. Mr. Najib is chairman of and Celine Fernandez
China Website Staff Go Missing After Post

BY CHUN HAN WONG who say the disappearances soon be shut down, according China’s cabinet, said on its and journalists to demon- Over the past two months,
are linked to a government to a Wujie employee and two official Twitter account: strate allegiance to the cen- divisions between the dis-
BEIJING—A Chinese news probe into the letter. people familiar with the situ- “Never heard of that. Such tral leadership, while the gruntled party members and
portal’s publication of a letter A U.S.-based dissident au- ation. gossips are meaningless.” party commission that led a Mr. Xi’s camp have spilled out
calling for President Xi Jin- thor said authorities have China’s main media regula- The response to the letter crackdown on corruption has into the open.
ping’s resignation appears to also taken away his family in tor didn’t respond to a re- “shows a real brittleness of widened its purview to en- The letter calling for Mr.
have triggered a hunt for southern China over claims quest for comment, and the power and of high levels of force discipline on the rank Xi to step down landed in the
those responsible, in a sign of that he had helped dissemi- chief Internet censor referred nervousness,” said Kerry and file. midst of this ferment and re-
Beijing’s anxiety over bub- nate the letter—an allegation Brown, professor of Chinese State media and other out- flects “concerns regarding the
bling dissent within the Com- he denies. The editor of an studies at King’s College Lon- lets have stepped up portray- shift in political culture” un-
munist Party. overseas Chinese website that
An anonymous letter don. “If this sort of complaint als of Mr. Xi as a strong and der Mr. Xi, said Mr. Leese.
The letter, whose author- also published the letter said called for the spreads, then there could be caring leader. Signed by “Loyal Commu-
ship remains unclear, ap- he has received harassing real problems,” he said. All that has unsettled some nist Party members,” the let-
peared on the eve of China’s phone calls and anonymous
resignation of Since becoming president party members who see it as ter appeared March 4 on the
legislative session in early death threats. President Xi Jinping. three years ago, Mr. Xi has an unwelcome return to the website of Wujie News—Wu-
March, the most public politi- Wujie Media—which is concentrated more power in mercurial, dictatorial style of jie Media’s journalism arm—
cal event of the year. based in Beijing and partly his hands than recent prede- Mao Zedong. before becoming inaccessible
Since then, at least four owned by the government of queries to Wujie’s manage- cessors, upending the consen- “The concentration of hours later.
managers and editors with China’s far western Xinjiang ment. Wujie, also known as sus-driven, collective leader- power in Xi’s hands, as well The Wall Street Journal
Wujie Media, whose news region—hasn’t published any Watching, didn’t respond to ship that prevailed for two as the budding personality didn’t receive a response to
website published the mis- original news content since requests for comment. A re- decades. In recent months, cult, have come to arouse dis- queries sent to the email ad-
sive, and about 10 people mid-March, while its social- porter who visited its offices the effort to unify the party sent among party circles,” dress from which the letter
from a related company pro- media accounts have also was turned away. and the country behind Mr. Xi said Daniel Leese, a professor was sent.
viding technical support have gone silent. Many among its Asked about the letter this has intensified. of Chinese history and poli- Within China, online dis-
gone missing, according to more than 100 employees month, the State Council In- Mr. Xi has increasingly tics at Germany’s University cussions of the letter were
their friends and associates, worry that the company may formation Office, an arm of called on officials, academics of Freiburg. swiftly censored.
OIL 25 billion barrels of oil equivalent a day
Future Stocks
Combined proved reserves, net
change from previous year
contracts that grant them a
larger share of production
when prices are low.
Among the largest oil com-
welcomed companies’ spend-
ing cuts despite the falling re-
serves.
“When the house is burn-
20
Continued from Page One Low oil prices and spending cuts are eroding 2 billion barrels of oil equivalent a day panies, only Chevron Corp., ing you’re not worrying if you
replace the barrels they pump big oil companies' reserves pipeline. Eni and France’s Total SA last need to paint the outside,”
every day. When they decide 15 year added more new barrels said Christopher Wheaton, a
Proved reserves by company 1
they can extract the oil and than they pumped. BP PLC refund manager at Allianz
gas economically, firms book placed 61% of its production Global Investors, which holds
those resources as proved re- 10 0 last year—excluding the im- stock in several of the large
serves, untapped inventories pact of sales and acquisi- oil companies including Shell,
to be exploited at a profit tions—and Norway’s Statoil Total and BP. “It’s crisis man-
down the road. 5 –1 ASA replaced 55%. While agement at the moment.”
The current oil glut has Shell’s reserves fell, the com- That attitude marks a shift
forced companies to cut pany this year completed a from the early 2000s, when
0 Statoil Eni Chevron Total Shell BP Exxon –2
spending wherever they can. roughly $50 billion acquisi- companies responded to in-
So they have pulled back on ’06 ’10 ’15 2006 ’10 ’15 tion of BG Group PLC that is vestor pressure to grow with
exploratory drilling and Source: the companies THE WALL STREET JOURNAL. expected to boost reserves by aggressive drilling and, in
spending on new projects. around 25% from their levels some cases, aggressive ac-
Across the oil sector last year, U.S. Securities and Exchange Canada’s high-cost oil sands. ure to fully replace the oil and at the end of 2014. counting. Shell in 2004 admit-
companies approved just six Commission defines proved The company didn’t replace gas it produced last year re- Companies’ reserve vol- ted to overstating its reserves
new developments, according reserves as the volume of oil any of the oil it pumped last flects its focus on “deploying umes are facing other poten- by more than 20%. Its share
to Morgan Stanley research- and natural gas that a com- year. Overall its reserves capital efficiently to create tial threats beyond low oil price dropped, senior execu-
ers. pany can expect to tap at a shrank by 20%. that long-term shareholder prices. Some investors have tives left, and the company
That is in contrast to the profit. Despite lower reserves, big value, even if it means inter- expressed concern recently paid hefty fines. Shell de-
past decade, when high prices Some of the reserves com- oil companies aren’t about to rupting a 21-year trend.” that legislation to curb global clined to comment.
led energy firms to explore in panies added are too expen- run out of crude. Exxon, for SEC rules require oil com- warming—such as taxing car- In the years after the Shell
far-flung regions. They spent sive to extract profitably at instance, retains enough re- panies to report “proved” re- bon emissions—could hasten scandal, companies raced to
billions of dollars on so-called today’s prices. That has serves to last 16 years at the serves based on an average a shift to cleaner energy and find more crude and poured
megaprojects, in part to keep forced some companies to re- current rate of production. price each year. On a year-to- make fossil fuels more expen- tens of billions of dollars into
their inventories brimming move barrels from their And in addition to their still- year basis, proved reserves sive to burn. That could make projects to increase produc-
for decades. And those invest- books, and in some cases to considerable proved reserves, can be volatile based on oil- some oil reserves impossible tion—helping fuel the current
ments helped to fuel today’s write down the value of those the companies have access to price swings. Last year’s to pump profitably. Oil com- glut and prompting Shell to
market glut. assets. other resources that could be- sharp price drop forced some panies counter that the world shift its strategy. In 2014
Because of accounting Shell wrote off billions of come viable to pump if oil companies to reduce their will need large volumes of oil Shell stopped using growth in
rules, there is another drain dollars from the value of its prices rise. proved reserves, though fall- and gas for decades. oil and gas production as a
on the “proved reserves” that assets last year, and low Exxon Chief Executive Rex ing costs helped offset the re- In a sign of their focus on performance metric for execu-
companies book and report to prices contributed to a deci- Tillerson told analysts earlier ductions. Some companies’ re- profitability over finding tive bonuses, instead empha-
investors: low oil prices. The sion to cancel a project in this month the company’s fail- serves also benefited from more oil, some investors have sizing return on capital.
FROM PAGE ONE
WILD Clay Landry, a 68-year-old

American Mountain Men mem-
ber and former banker, worked
on-set for about seven months
pany hosting it had to move it
to a bigger server, said mu-
seum director Angie Boroff
Thomas.
Even if fame is fleeting, Mr.
Glass will have a permanent
home at the Museum of the
Mountain Man, which is com-
Continued from Page One helping the crew get its details Attendance at the museum missioning a diorama of the
harks back to an uninterrupted just right. is booming, too. Its Spring famous bear attack to be un-
time. “There’s a sense of wil- He taught background ac- Thaw Party earlier this month veiled in May.
derness or outdoor adven- tors how to clean guns and included a lecture from Mr. Kurt Wohnsen and Eliza-
ture—elements of danger and flesh hides, instructed Mr. Di- Landry on his experience on beth Marshall, a husband-and-
a sense of freedom or indepen- Caprio to store lead bullets in the “Revenant” set. More than wife team designing the di-
dence to be your own person his mouth for faster reloading 120 people came—about dou- orama, said it would likely
of business,” said Joy Poole, a and weighed in on how au- ble the usual turnout. show the bear on her hind legs
New Mexico historian. thentic the movie’s fake buf- Ms. Poole, the historian, with her left paw raking Mr.
Wannabes must complete 10 falo-liver prop appeared. spent 10 years writing “Over Glass’s back as he prepares to
of the 20 requirements to be- “I’ve seen a bunch of them,” the Santa Fe Trail to Mexico,” stab with his knife.
come a member of the Ameri- he explained. (Mr. DiCaprio, in based on the diaries of a 19th- And not unlike the movie-
can Mountain Men. Applicants the movie, ended up wolfing century doctor who examined makers, the couple kept its au-
“must have hunted for and down the real thing.) Mr. Glass after his bear attack. dience in mind while choosing
killed at least one game or fur HughGlass.org had been Though Mr. Glass plays a bit that particular vignette. In the
animal with a muzzleloading waiting for an opportunity like part in the doctor’s story, he wild, “the bear would be on
firearm or primitive bow,” says this. Set up in the 1990s, it has secured higher billing in top of him ripping him apart,”
the association website. Group was registered, along with a her talks since the movie hit explained Mr. Wohnsen.
sponsors help to make sure all number of other frontier- theaters. Earlier this month, The couple isn’t seeing the
claims are valid. themed Web addresses, by a Ms. Poole delivered a lecture movie until the diorama is
Such bravado is on display Wyoming history buff. Ahead at a history conference in Mis- complete, worried the big-
in “The Revenant,” which fea- of the movie’s premiere, the souri that included details on screen interpretation might
tures more than two hours of a Museum of the Mountain Man, the night Mr. Glass was discov- color their own work.
left-for-dead Mr. DiCaprio. His in Pinedale, Wyo., took over ered “buck naked on the trail.” “His real life was spectacu-
JIM HANNON
on-screen ordeal shows him the site and filled it with con- Audience members pep- lar without having him crawl
surviving the brutal bear at- tent related to Mr. Glass. pered her with questions on through snow for days on
tack, eating raw buffalo or- After the film’s nationwide what she thought of the movie. end,” said Mr. Wohnsen. “They
gans, falling off a cliff and cau- release, traffic to the site “There seems to be name rec- didn’t have to Hollywood-up American Mountain Men members at the organization’s
terizing his own wounds. spiked so high that the com- ognition now,” said Ms. Poole. the thing.” gathering last year in the Wind River Mountains in Wyoming.
OPINION
FBI vs. Apple Isn’t Over BOOKSHELF | By Robert K. Landers
The FBI
and Apple
Apple told its customers a dif-
ferent story when it announced
enforcement doesn’t imply
that we don’t know how to
encryption no matter what and
we can and should produce
Prophet
Of Abolition
reached a changes to its operating system make a technology product black boxes, that does not
cease-fire in 2014: “Unlike our competi- that can be unlocked only by strike the balance that we’ve
last week, tors, Apple cannot bypass your law enforcement.” lived with for 200 or 300
but it passcode and therefore cannot As for the FBI, it is techni- years. And it’s fetishizing our
can’t last, access this data,” the company cally correct that the case is phones above every other
INFORMATION
because it announced. “So it’s not techni- about unlocking a single value. That can’t be the right
AGE
leaves un- cally feasible for us to respond iPhone, but the bureau would answer.”
John Quincy Adams: Militant Spirit
By L. Gordon
resolved to government warrants.” have a stronger argument if it If there’s no way to gain By James Traub
Crovitz
the future In a recent interview with admitted that Apple is right access to new communications (Basic, 620 pages, $35)
J
of reason- Time magazine, Apple CEO that there are many other devices, the president asked,
able searches under the Fourth Tim Cook described the FBI’s cases in which law-enforce- “how do we solve or disrupt a ohn Quincy Adams wasn’t mentioned in Garry Wills’s
Amendment. It would be a pub- concerns as “a crock.” He ment agents need help—espe- terrorist plot? What mecha- Pulitzer Prize-winning “Lincoln at Gettysburg” (1992),
lic service if both sides started claimed that “no one’s going cially now that Apple has put nisms do we have to even do in which Mr. Wills showed how Abraham Lincoln in his
making their arguments forth- dark” and added that “we its operating system beyond things like tax enforcement. 1863 address implicitly reached back to the Declaration of
rightly. shouldn’t all be fixated just on their reach. . . . If government can’t get in, Independence and put its proclamation of equality “in a
The FBI thought it needed what’s not available.” His argu- Technology companies re- then everyone’s walking newly favored position as a principle of the Constitution.”
Apple’s help to gain access to port data on their court or- around with a Swiss bank But Charles N. Edel noted in “Nation Builder” (2014), an
the iPhone used by San Bernar- ders, subpoenas and warrants. account in their pocket.” intellectual biography of Adams, that Lincoln’s argument
dino terrorist Syed Rizwan Fourth Amendment According to the latest figures, It’s a telling analogy. In the had in fact been “an Adams innovation—and one that
Farook. Apple refused, claiming in the first half of 2015 Face- pre-digital era, Congress legis- [Adams] advanced publicly,” insisting that the Declaration’s
that doing so would require issues remain. Both book received more than lated that banks and tradi- embrace of equality “presaged the demise of slavery.”
giving the government “back- sides need to argue 17,500 requests, Google more tional telecommunications Mr. Edel’s is one of several fine books that have appeared
door” access to all iPhones. than 12,000, Microsoft nearly companies must design their in recent years about the nation’s sixth president (and son
Last week the FBI said a more forthrightly. 6,000 and Apple almost 1,000. systems to comply with legal of the second). Another is
third party had come forward Apple objects that the Manhat- warrants. Under the Communi- Fred Kaplan’s “John Quincy
with a solution for unlocking tan district attorney says he cations Assistance for Law Adams: American Visionary”
Farook’s iPhone. So much for ment is that authorities should has 175 cases where he needs Enforcement Act of 1994, tele- (2014). That biography, how-
Apple’s claim. find other ways to prevent ter- help from Apple similar to coms must enable court-or- ever, had a misplaced em-
Still, the issue won’t go rorism and enforce the law so what the FBI sought, but that dered surveillance such as phasis, reflected in its subti-
away, because Apple says it that Apple can keep promising level of volume is hardly un- wiretaps. Banks and telecoms tle. President Adams did set
plans to make more of its de- to protect its customers from precedented. may prefer to market their out a farseeing agenda in his
vices and services inaccessible court orders. That’s under- The FBI should also ac- services as beyond the courts’ 1825 State of the Union mes-
to law enforcement. Nor will it standable as a corporate mar- knowledge that it pursued liti- reach, as Apple does, but are sage, calling for a national
become a mere philosophical keting initiative, but other gation instead of a legislative barred by law. transportation infrastructure—
question, as the Brussels ter- industries aren’t allowed to solution because the suppos- Thus the first round of FBI new roads, bridges and ca-
rorists’ evasion of surveillance operate that way. edly unitary executive branch vs. Apple has handed the key nals—and a national university,
make clear. Apple should also stop con- hasn’t been united. Until re- question to Congress: Either a Pacific exploratory expedition
Apple should be more up- flating the broader issue of cently, President Obama ducked the Fourth Amendment per- and even a national observa-
front about its corporate strat- encryption with helping unlock the issue. He finally took the mits reasonable, warranted tory. But his visionary agenda was
egy. General counsel Bruce a single iPhone. Timothy Lee FBI’s side earlier this month, at searches in the digital era or doomed in Congress from the start.
Sewell called “deeply offensive” summarized the difference on the South By Southwest confer- Internet companies can design Now, from James Traub, comes a new biography—pene-
the Justice Department’s alle- Vox: “The fact that we don’t ence in Austin, Texas. systems to defeat court orders, trating, detailed and very readable—with a different angle
gations that the company delib- know how to make an encryp- “You cannot take an abso- putting themselves—and crim- on this extraordinary man, highlighting his patriotic
erately changed iPhone security tion algorithm that can be lutist view on this,” Mr. Obama inals, including terrorists— bravery. “Though he never wore a uniform or saw battle,”
to block law enforcement. But compromised only by law said. “If your view is strong above the law. Mr. Traub writes in “John Quincy Adams: Militant Spirit,”
“[he] was a figure of immense physical and moral courage.”
He “did not flinch” when, in his post-presidential career as
Kerry Urges Colombians to Cave to the FARC a congressman fighting the spread of slavery, he received
countless death threats or twice faced potentially
humiliating censure motions.
The day be- each been sentenced in a jail, will not hand over its cutor of the International Crim- As Mr. Traub makes clear, Adams’s careers after and
fore the ter- Colombian court, in absentia, weapons to the government, inal Court expressed skepticism before his single White House term were more significant
rorist bomb- to 13 years in prison for recruit- will not relinquish its profits about Mr. Santos’s judicial con- than his presidential performance. He had been groomed for
ings in ing child soldiers, including from kidnapping, drug-traffick- coction. “Justice matters,” greatness by his parents, John and Abigail, and in his pre-
Brussels last girls who were used for sex. ing and extortion and will not James Stewart said at a meet- presidential service as secretary of state under President
week, John But the Obama administra- compensate the millions of its ing of the Organization of James Monroe (beginning in 1817), he did not disappoint.
AMERICAS Kerry met tion says Colombians need to victims. Mr. Santos, on the American States. “The plight The 1819 Transcontinental Treaty with Spain—in which the
with the lead- trust the FARC, and let all its other hand, has broken multi- of victims and communities U.S. relinquished its claim to Texas but gained Florida and
By Mary
ers of the members, including its lead- ple promises to the Colombian affected by mass atrocity unimpeded title to the Pacific Northwest—was “a diplomatic
Anastasia
Revolution- ers, go unpunished and go into people, including a pledge not crimes matters. Holding the coup Adams had won by a combination of patience, guile,
O’Grady
ary Armed politics in order to secure to grant the terrorists amnesty. perpetrators of such crimes ac- mastery of detail, and an unyielding commitment to Ameri-
Forces of Co- peace. Would Americans take countable before a court of law can national interest,” Mr. Traub observes. He also put his
lombia (FARC) in Havana. that deal? matters. All of this matters if stamp on the Monroe Doctrine (1823), warning European
The meeting produced pho- The hypocrisy is not lost on In Brussels, he says we are to build a more just and powers to stay out of the Americas. His biggest contribution
tos of the Colombian war Colombians, who took to social peaceful world.” to the doctrine may have been “its astringency . . . his dogged
criminals wearing crisp white media last week to object. For- no deal with Islamic In an interview with Tele- insistence that American policy serve American interests.”
guayabera shirts sitting mer Minister of Defense Marta State. In Havana, he mundo’s María Celeste Arrarás
around a large coffee table Lucia Ramírez tweeted: “After in Havana on Tuesday, Mr.
with the U.S. secretary of state. the meeting of Kerry with the sings another tune. Kerry defended the Santos- Less than two years after leaving the White
The FARC wasted no time FARC I’m waiting for when FARC talks by claiming that it House, Adams was elected to the House,
using the images for propa- there will be a meeting with El is not the FARC, but “right-
ganda. “We hope that as a con- Chapó Guzmán,” the notorious At the United Nations Gen- wing militias” that are “in- where he began to confront the ‘slavocracy.’
sequence, we are recognized as Mexican drug lord. eral Assembly in September, creasing the violence.” That is
a political force committed to Miguel Gómez Martínez, Mr. Santos announced that ne- contradicted by the facts.
the expansion of democracy nephew of murdered presiden- gotiators had produced a According to the U.N., Adams was the “fountainhead” of foreign-policy “real-
and social progress in Colom- tial candidate Álvaro Gómez, breakthrough plan for “transi- among the estimated 166,000 ism,” Mr. Traub writes, “not only because he distinguished
bia,” it announced. tweeted: “Someone explain to tional justice.” He said he Colombians displaced by vio- so sharply between American interests and universal goods,
Four days later Mr. Kerry me, why those in Brussels are would have a final agreement lence in 2015, 37% fled from but because he expressed such deep skepticism about
was in the Belgian capital to terrorists and those of signed within six months. the FARC, 31% fled from its America’s capacity to do good abroad.” His most famous
deliver condolences to Prime Nogal”—the Bogotá social club But the plan has stalled in close left-wing terrorist words, delivered in 1821 in a July Fourth oration, were that
Minister Charles Michel and bombed by FARC in 2003—“are part because it promises no cousin, the ELN, and 13% fled America “goes not abroad in search of monsters to destroy.
pledging never to give in to ideologues that deserve impu- jail for FARC leaders who con- from the criminal gangs it She is the well-wisher to the freedom and independence of
Islamic State: “We will not rest nity.” Colombian congressman fess their crimes, and that’s a works with. A recent letter all. She is the champion and vindicator only of her own.”
until we have eliminated your Federico Hoyos tweeted: “Mr. proposition that 90% of the from the mayor of San Vicente Less than two years after leaving the White House,
nihilistic beliefs and cowardice Secretary, Colombia is one of country opposes in a recent del Caguán to Mr. Santos de- Adams was elected to the House from Plymouth, Mass. His
from the face of the Earth.” the countries with the most poll by Colombia Opina. scribed the terrified lives of a 16 years as a congressman, Mr. Traub says, would prove
A goodly number of Colom- landmines in the world thanks The plan also puts the mili- local population subject to un- “far more gratifying to his soul, and to the nation, than his
bians feel the same way about to FARC’s terror strategy.” tary on the same legal plane as relenting extortion by the time as president had been.” Confronting and defeating
the FARC. The Castro-backed The double standard is obvi- the terrorists, offering soldiers FARC. what he called the “slavocracy” in Congress would be “the
group has waged an insur- ous. Nevertheless, the Obama a choice of confessing to a war When pressed by Ms. Ar- great achievement of his life.”
gency against the Colombian administration is invested in crime when accused to avoid rarás , Mr. Kerry said that “if As early as 1820, when he was secretary of state and the
democracy that has claimed the five years of negotiations— punishment or facing years in our attitude was we have to admission of Missouri to the Union as a slave state was
some 220,000 lives. It is one in Havana—between the gov- prison while their cases work kill everybody who was in- being debated, Adams had told his cabinet colleagues that
of the largest drug-trafficking ernment of Colombian Presi- through an often hostile judi- volved in World War II, where slavery was inconsistent with the Declaration’s assertion of
cartels in the world. The U.S. dent Juan Manuel Santos and cial system. Colombia’s mili- would we be with Germany “the natural equality of all men, and their unalienable right
State Department lists the the FARC. Mr. Santos has not tary could easily be destroyed and with Japan?” This just in, to Liberty.” He wasn’t ready then to say so publicly, but in
FARC as a foreign terrorist or- secured one concession from under this framework, while Mr. Secretary: Germany and his diary he confided that if the Union’s dissolution,
ganization. Two FARC leaders the terrorists. The FARC says it FARC criminals would go free. Japan surrendered. followed by civil war, was necessary to extirpate the evil of
who met with Mr. Kerry have will not accept even one day in On Feb. 10 the deputy prose- Write to O’Grady@wsj.com. slavery, “I dare not say that it is not to be desired.”
Fifteen years later, Adams still opposed immediate
abolition, but he began to use the rise in anti-slavery
Hackers Can Be Our Cybersecurity Allies petitions, and the congressional gag rule against considering
them, to draw attention to the cause. “Adams was staging a
theater of martyrdom,” Mr. Traub writes. It was “a species of
By David Brumley The problem is lack of talent. enough to keep U.S. companies, called picoCTF that had more drama to which, thanks to his rhetorical gifts, his
P
A recent report by the Univer- consumers and government than 18,000 student partici- fearlessness, his towering sense of moral purpose, he was
resident Obama wants to sity of Massachusetts Boston agencies safe. As any hacker pants last year. supremely well suited.” He soon became an abolitionist hero.
boost federal spending found that 60% of colleges don’t worth his salt knows, studying We’re not the only ones. The In a series of open letters, Adams in 1839 decried both
on cybersecurity by $19 even offer courses in network cyberoffense is crucial. Polytechnic Institute of New slavery and immediate abolition but said this about the
billion, which is to be com- or information security. To keep • Start building cybersecu- York University, the University Declaration: “The same moral thunderbolt, which melted the
mended. But unless we attract up with our competitors, Amer- rity into basic curricula. Early of California at Santa Barbara chains of allegiance that bound the colonist to his sovereign,
more people to the field, and ica needs to cultivate the next education is absolutely essen- and Berkeley, MIT and other dissolved the fetters of the slave.” The implication, Mr. Traub
see “hackers” as a valuable generation of cybersecurity per- tial—not just because STEM schools are also building out adds, was that “the three-fifths compromise embedded in the
asset to society and national sonnel in colleges and high (science, technology, engineer- their cybersecurity programs. Constitution [violated] fundamental principle.”
security, we’ll continue to have schools across the country. Here ing and math) subjects are im- These could serve as templates In 1844, amid a furious congressional debate, an Alabama
a shortage of cybersecurity are three ways to get started: portant, but because everyone for what could be done at a na- congressman accused Adams of having told blacks that “the
professionals. • Stop stigmatizing hackers. makes cyberdecisions, whether tional level. day of your redemption” was bound to come and that,
Last year Symantec CEO Most people’s only exposure to they know it or not. Every time In short, let’s embrace hack- whether it came “in peace or in blood, let it come.” Without
Michael Brown said “the de- cybersecurity is news coverage you install an app on your ing as a skill vital to protecting rising from his seat, Adams declared: “I say now, let it come.”
mand for the cybersecurity of hackers committing crimes. phone, decide whether to up- digital security. Some states are Then, after a comment by the Alabamian, he roared: “Though
workforce is expected to rise to Yes, a handful of hackers go date your computer, or create a already considering allowing it cost the blood of millions of white men, let it come! Let
six million globally by 2019, rogue. But they aren’t represen- password, you run the risk of K-12 students to study coding justice be done though the heavens fall.”
with a projected shortfall of 1.5 tative of the whole. The many making your data and life less instead of a foreign language. That December, as a new session of Congress got under
million.” The U.S. government’s hackers I know are curious, secure. That’s a good start, but the U.S. way, Adams moved, as he often had before, to revoke the gag
chief information officer, Tony highly imaginative profession- At Carnegie Mellon Univer- needs a deeper understanding rule. This time, astonishingly, the measure passed. For Ad-
Scott, says there are more than als dedicated to finding—and sity’s CyLab we embrace cyber- of cyberawareness—to avoid ams, Mr. Traub writes, the gag rule’s defeat “must have been
10,000 openings in the federal fixing—even the most hidden security as its own discipline being left behind in the digital one of the greatest moments of his life.” Adams’s militancy—
government for cybersecurity vulnerabilities. and offer a Master of Science race, and to defend better the theme of Mr. Traub’s splendid biography—had proved
professionals. Each unfilled • Recognize cybersecurity as in Information Security. In our against cyberattack. both potent and prophetic.
position represents a weakness a uniquely skilled profession. Scholarship for Service pro- Three years later, still a member of the House at age 80,
in our cybersecurity armor. IT professionals can’t just be gram, the U.S. government Mr. Brumley is a professor Adams died. The House named a committee to prepare for
Why aren’t people jumping to rebranded as security profes- pays for cybersecurity master’s of electrical and computer the funeral. Among its members was a freshman congress-
fill the gaps? It’s definitely not sionals. Cybersecurity requires degrees in exchange for two engineering at Carnegie Mellon man and Adams admirer from Illinois, Abraham Lincoln.
the money. The average cyber- a trained mindset, the ability years of service in a federal University and head of the
security professional takes in a to think about defense and agency in need. We also run a school’s CyLab Security and Mr. Landers, a writer in Baltimore, posts his reviews and
six-figure salary. offense. Defense alone is not high-school hacking contest Privacy Institute. essays at robertklanders.com.
A14 | Monday, March 28, 2016 * **** THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Why Americans Hate Government Phobias, Isms and the Reality of Islamic Terror
A
s government expands, so does its po- the procedural “quagmire” that the Federal Stu- Regarding your editorials “From up terrorist killings. Inquiring minds
tential for abuse. Yet in the Obama era dent Aid office and Council created to freeze the Syria to Brussels” and “An Inordinate want to know.
Fear of Terrorism?” (March 23): Presi- GARRY RESINSKI
the media have largely abandoned their bankruptcy case for more than a decade. The
dent Obama has lectured us for years Broomall, Pa.
role as watchdogs, and even Federal Student Aid office ar- that Islam is a religion of peace; only a
gross abuses of power go un- The regulators who gued that the bankruptcy tiny fringe of radicals pervert Islam It appears worthy of notice that
punished. Consider the sordid court decision was not final. and commit acts of terror; and fears of playing down a reasonable concern by
persecution of for-profit
destroyed Decker However, the Council chose terrorism are overblown. Imagine how implying it represents some form of
Decker College, which has be- College have never not to “make the Bankruptcy much worse things would be then if psychosis is now a routine tactic of the
latedly received vindication
after being driven into bank-
been held accountable. Court’s ruling on the accuracy
of the letter appealable,” as
some Muslim communities were a
breeding ground for hatred, and unas-
left. The only step missing is the syn-
thesis of a new word branding the con-
ruptcy a decade ago by a mali- Mr. Layton put it. This “proce- similated Muslim communities in the cern a phobia to avoid having to de-
cious regulator. dural quirk” created “a perma- West, now filled with refugees from fend an opposing view.
Education Department administrative law nent bar” that prevented administrative and the Middle East, gave aid and comfort Clearly using the already coined “Is-
to terrorists. As you point out, Belgian lamophobic” would be problematic in
judge Robert Layton recently affirmed a 2012 bankruptcy claims from “proceeding, since both
officials were surprised by the number this case, since it would violate the
bankruptcy court finding that the Council on forums would be required to wait on the other of people from whom a recently ar- story line that Islamic terrorism isn’t
Occupational Education had failed to tell the to proceed.” rested terrorist received support as a actually associated with Islam. The
truth in stating that Decker’s online programs Mr. Layton has now lifted the “permanent fugitive—an indication that there are term “xenophobic” is already used to
were never accredited. The Council’s “factu- stay” on Decker’s administrative appeal and re- more terrorist sympathizers than Mr. characterize as delusional anyone con-
ally erroneous” assertion caused the Educa- jected the government’s $31 million claim. Obama would have us believe. cerned about the lack of control over
tion Department to withdraw federal student “There is a point at which a delay in the hearing President Obama’s hear-no-evil, see- our borders. It wouldn’t do to draw at-
aid in 2005, which precipitated Decker’s process becomes a constitutional violation of no-evil, fear-no-evil approach to a rad- tention to the infiltration of our bor-
bankruptcy. Decker’s right to procedural due process,” he ical Islam that is daily spawning ders by the same hostile “cultures”
As we wrote in July 2012, a large docket of explained, and that’s for sure. So at least now world-wide acts of terror (as re- now overtly attacking Western Europe.
evidence showed that the Council had in fact the bankruptcy can proceed and other creditors counted by Sohrab Ahmari in his Perhaps the Journal could propose a
same-day op-ed “Global Jihad’s Deadly creative writing assignment for the
accredited Decker’s online programs. Its accred- including many students and workers can re- Calendar”) is wearing thin. The same left to come up with a newly minted
itation application included several mentions cover their losses. president who tells us that there is an psychosis to thread this rhetorical nee-
of distance learning, and Council inspectors But all of this is too late for Decker’s employ- inordinate fear of terrorism also sees dle for the administration.
who visited its campus also noted “Dist. Ed” on ees, its students and investors. They were vic- merit in the Black Lives Matter move- BILL MILLS
their evaluations, among other evidence. tims of statements found to be false in two ment, even though the chances of a Sterling, Va.
The Council yanked Decker’s accreditation court proceedings. Yet there has been no ac- young, black man being killed by the
after its executive director Gary Puckett re- countability that we can detect for those who police are minuscule relative to the Are we too nice and politically cor-
ceived an unusual phone call from Kansas City destroyed Decker. odds of his being murdered by another rect to defeat Islamist terrorists? We
Federal Student Aid (FSA) case team director After all these years, Mr. LoBosco continues young, black man. The disconnect be- are fighting enemies who have no
Ralph LoBosco. At the time the Council was it- to draw a taxpayer salary from the Education tween the president’s two positions rules and feel free to do anything to
that both are based on probabilities achieve their goals. The administration
self up for review, and Mr. Puckett testified that Department, according to the Federal Student
and involve exaggerated fears is evi- seems much more concerned with en-
he felt the need to assure its government regu- Aid website. The department IG hasn’t investi- dence that sometimes a president can suring that our rules of engagement
lators that Decker’s online programs were not gated complaints by Decker’s outside coun- have it both ways, and with media ap- don’t offend anyone than with defeat-
approved. sel—which were filed prior to the bank- proval, too. Our inordinate fear of being ISIS.
Bankruptcy trustee Robert Keats alleged Mr. ruptcy—against Mr. LoBosco. The Education coming victims of terrorists becomes RALPH TIBILETTI
LoBosco was trying to exact revenge against Department renewed the Council’s recognition less inordinate every day. Spring, Texas
Decker CEO William Weld who as a U.S. attor- as a college accreditor in 2007 and most re- DEAN RICHARDS
ney during the 1980s had prosecuted Mr. Lo- cently in 2013. A spokesman for the IG’s office Annapolis, Md. Is it our fear of Islamist terrorism
Bosco’s former employer for fraud. While bank- hasn’t responded to our request for comment. or is it President Obama’s disinterest-
ruptcy Judge Thomas Fulton didn’t infer Nor has Mr. Puckett, although the Council has Does anyone have the administra- edness and minimalist action that is
regulators’ motivations, he ruled that Decker said it disagrees with the bankruptcy court’s tion’s thoughts about when terrorist the issue? His rationalization that “ter-
killings become unacceptable? Say the rorism takes far fewer lives in America
had been accredited. determination.
count went above the number of than handguns, car accidents and falls
Judge Fulton’s finding should have barred If Americans must live with a gigantic and deaths from bathtub accidents, would in bathtubs” concerns me because of
the Education Department’s bankruptcy claim intrusive government, then at least they should terrorists then be declared a signifi- his failure to distinguish intent.
for $31 million, as Mr. Layton has now ruled. Mr. know there will be some accountability for cant problem? But until then, the MANUEL A. DE LA GARZA
Layton noted that “it is troubling that FSA re- abuses of power. Arne Duncan, the secretary of American public will just have to suck Fair Oaks Ranch, Texas
lied exclusively on [the Council’s] letter as a education for seven years, did nothing about
scant basis for imposing a $31 million liability the Decker outrage. John King was recently
and that FSA chose not to conduct any examina- confirmed as the new secretary. The least he
tion of the facts and circumstances behind the can do to set a better standard is to show that Plato and the Modern Celebrity Politician
letter,” especially since “in other actions FSA there is some accountability for regulators who
L. Gordon Crovitz’s “Donald Trump, not impose sacrifice. People see their
has factually looked to the underlying facts on scheme to destroy a company based on false-
Celebrity Politician” (Information Age, desires as their rights, and this leads
an accrediting agency’s decision.” hoods and then spend years trying to deny the March 14) brings to mind Plato’s criti- to a breakdown of shared cultural val-
Equally troubling is what Mr. Layton calls victims due process under the law. cisms of democracy in the “Republic.” ues, causing what our founders called
He said images would always prevail “factions” to place their interests over
over substantive debate in elections. the common good. This leads the pub-
A Taliban Easter Candidates are judged more on how lic to a distrust of authority.
T
they look than on their understanding Donald Trump, Hillary Clinton and
here aren’t many Christians left in Pak- Islamist attacks on Christians during reli- of the issues. People are drawn to easy Bernie Sanders all appeal to factions
istan, but that’s still too many for the gious holidays is becoming routine, as the jihad- answers rather than complex reason- that feel it’s time for a class war on
Taliban. A splinter group of the Paki- ists strive for maximum political impact. While ing, so emotion is appealed to and rea- “others” who have caused all our prob-
stani faction of the Islamist Europe tries to find and break son is not. lems. We no longer have the money to
The casualties will be up jihadist networks after last Once in office a politician’s goal be- satisfy every special interest, so the
terror group claimed respon-
comes to stay in power. He must pan- fight for what is left is angrier and
sibility for a suicide bomb at- worse when jihadists week’s bombing in Brussels, der to the electorate rather than do more divisive, just as Plato predicted.
tack on Christians celebrat- the Pakistan murders are a re- what he knows is right lest he lose the LOU BIGGIO
ing in a park in Lahore on acquire WMD. minder that the jihadists are next election. Politicians’ “solutions” Suisun City, Calif.
Easter Sunday. killing even more people in seek to satisfy those most likely to re-
At least 65 people, mostly Muslim-majority countries. elect them. Actual solutions can be Mr. Crovitz aptly describes Mr.
women and children, were killed and more than The victims are Muslims and Christians. kicked down the road because what Trump’s candidacy as the triumph of
300 others were injured as the terrorists tar- Mass-casualty terrorism has become an al- may happen in the future won’t affect name over any kind of political expe-
geted a children’s park in Pakistan’s most cos- most daily occurrence, and there’s a danger that the next election. Elected officials ma- rience or legislative record. He errs in
mopolitan city. “Members of the Christian com- the world will become inured to it as a new nor- nipulate public policy by favoring spe- tarring Hillary Clinton with the same
munity who were celebrating Easter today were mal. That is dangerous. A terror group that tar- cial interests, granting them public brush. Mrs. Clinton’s political accom-
money and special privileges. This plishments may not impress Mr. Cro-
our prime target,” said a Taliban spokesman gets women and children without remorse
leads to unrestrained growth and com- vitz, but the fact is she was both a
who called NBC News from the safety of an un- wouldn’t hesitate to kill tens of thousands, even petition between special interests senator and secretary of state. She
disclosed location. millions, if it can acquire the means. seeking their own gain at the expense has a record that can be perused or
of the public good. dissected, lauded or derided. How-
As a result, democracies ultimately ever one chooses to judge her, she
Sanders Gets No Respect spend more than they have. They can- can be judged on something other
B
than her name.
ernie Sanders won three Western Dem- ple’s Republic of Seattle. “It is not true.” MELANIE KWESTEL
ocratic caucuses by landslides on Sat- The current head-to-head polls bear him Airlines Are Flying Blind Fair Lawn, N.J.
urday, and all he got was this lousy As- out. In the Real Clear Politics polling average, On Future Fuel Expenses
sociated Press headline: Mr. Sanders leads Mr. Trump
“Sanders wins 3 states; Clin- He runs away with three by 17.5 points and Mr. Cruz by
“Airlines Retreat on Fuel Hedging” Extending Work for Some
(Business & Tech., March 21) describes
ton holds delegate lead.” The more states, but the 8.4. Mrs. Clinton leads Mr. multiple airlines’ decision not to
Means Fewer Jobs for Others
AP header is accurate, but the Trump by 11.2 and Mr. Cruz hedge future fuel costs, exemplifying The solutions proposed in “How to
Vermont Senator and his le- elites stick with Hillary. by only 2.9. Mr. Sanders is the antithesis of risk control, money Get People to Delay Retirement”
gions can be forgiven for tied with John Kasich, while management and an understanding of (Journal Report, March 21) may work,
wondering what he has to do Mrs. Clinton loses to the Ohio how hedges work. The travesty the but the costs are conveniently dis-
to get some political respect. Governor by 6.5 points. airlines suffered from poor hedging guised. Most of the solutions rely on
Mr. Sanders won Alaska with about 82% of Most Americans still don’t know much techniques should cause them to ex- increased tax revenue from working
the vote, Hawaii with 70% and delegate-rich about what Mr. Sanders believes, including amine their risk and protect their retirees. But for every working retiree,
Washington state with 73%. These may not be his desire to return to 1930s tax rates and his stockholders and customers from the one or more young people who might
risk of rising fuel prices instead of have replaced him won’t find employ-
bellwether states. But Donald Trump or Ted sympathy for Communist regimes during the
gambling that prices will now decline. ment that year. The loss in tax revenue
Cruz would love to have those margins, and in Cold War. His belief in undiluted socialism What they claim to be doing is no less from them plus the unemployment
a normal year a front-runner like Hillary Clin- would be vetted in a general election cam- irresponsible than canceling insurance burden will offset any gain in revenue
ton would be running up such totals at this paign in a way it hasn’t been in the Demo- this year because they suffered no ac- from the taxes on the working retiree.
stage of the presidential race. Instead the 74- cratic primaries. cidents or litigation last year and “lost The underlying problem is that too
year-old Mr. Sanders is showing the kind of Then again, Mrs. Clinton has helped to vali- money” on insurance premiums. many people aren’t prudent enough to
electoral strength that gives him every right date many of those positions by moving so far And then there is the claim that save an adequate amount for retire-
to fight on at least through April’s contests and left herself. And in Mr. Trump the Republicans hedging is a “rigged game that en- ment. We can apply a libertarian solu-
maybe to the convention in July. may nominate a candidate who is building riches Wall Street.” Please. The fuel tion: Let them live in poverty because
The challenger’s victories reveal Mrs. Clin- negative approval ratings that no candidate contracts they so liberally insult aren’t of their lack of foresight. Or we can
ton’s continuing weakness even among Demo- has been able to recover from and win the even traded on Wall Street and never apply a socialist solution: Raise social
have been. security taxes and benefits so people
cratic partisans. On Tuesday Mr. Sanders won White House.
WALT BREITINGER can have more financial security. Or
in Utah and Idaho, while the former Secretary Mrs. Clinton remains the all-but-certain Valparaiso, Ind. we can find better ways to motivate
of State won easily in Arizona. She continues Democratic nominee, not least because of her people to save for retirement. But we
to have a delegate lead thanks to her victories lead in “superdelegates.” These are current or Airlines are supposed to be experts have to stop pretending it won’t cost
in states dominated by older African-American former elected officials and other Democratic in flying passengers, not in speculat- anything for people to have greater fi-
voters and government-employee unions. But grandees who are formally unpledged to any ing on oil prices. Therefore fixing the nancial security in their retirement
she inspires little enthusiasm, and the case for candidate before the convention. AP currently price of fuel and planning flight oper- years.
her seems to boil down to her inevitability as has them going 469 for Mrs. Clinton and only ations accordingly is a prudent strat- DENNIS J. FRAILEY
the nominee and that her political experience 29 for Mr. Sanders. egy. Furthermore, conditioning airline Fairview, Texas
and stolidity are antidotes to the likely GOP For all the talk about an open convention profits on an unpredictable oil market
shortchanges investors, who buy
nominee, Mr. Trump. that could deny Mr. Trump the GOP nomina- Letters intended for publication should
shares of United or Delta to have ex- be addressed to: The Editor, 1211 Avenue
Mr. Sanders is also fighting the perception tion, the Democratic establishment has done posure to the airline sector, not the of the Americas, New York, NY 10036,
that as an avowed socialist he can’t win in No- far more to rig the nominating process to fa- energy sector. There are many good or emailed to wsj.ltrs@wsj.com. Please
vember. “Don’t let anybody tell you that Hil- vor elites. One reason Mr. Sanders gets no re- energy stocks one can use for the lat- include your city and state. All letters
lary Clinton is the strongest Democratic candi- spect is because Democratic elites prefer a ter purpose. are subject to editing, and unpublished
date to take on the Republicans,” Mr. Sanders nominee who disguises her socialism better S. ABRAHAM (AVRI) RAVID letters can be neither acknowledged nor
returned.
told an estimated crowd of 15,000 in the Peo- than he does. New York
OPINION
Dollarizing the Ayatollahs

By Mark Dubowitz with U.S. financial institutions, or temporarily converted to dollars, mak-
And Jonathan Schanzer enter into financing arrangements ing it unlikely that they would hold
T
with U.S. banks.” registered dollar accounts in sufficient
he bruising battle between Yet as Rep. Ed Royce (R., Calif.) quantities in banks where U.S. author-
the president and Congress noted in a March 22 letter to the ities have reach. If anything, they will
surrounding the Iran nu- White House, Mr. Lew, during a keep their dollar holdings in offshore
clear deal is over. The Joint Financial Services Committee hearing accounts or in pallets of cash. If the
Comprehensive Plan of Ac- earlier that day, “appeared to leave regime contemplates a nuclear viola-
tion, despite its many troubling flaws, the door open” to Iran getting access tion or gets wind of new sanctions, it
is already being implemented. Yet now to the U.S. financial system. Mr. would dump whatever traceable dollar
another nasty battle is brewing. Royce reminded Mr. Lew of what he assets it holds.
Even as Washington prepared to said last year, then said he had We may also hear via the adminis-
release an estimated $100 billion in “received reports from the administration that we need to provide
restricted Iranian oil assets and paved tration that it is now considering economic incentives for Tehran to
the way for Tehran to regain access to providing Iran with access to the U.S. comply with the nuclear deal. Yet
AFP/GETTY IMAGES
the Swift network (Society for World- financial systems.” He repeatedly during last summer’s debate, admin-
wide Interbank Financial Telecommu- pressed Mr. Lew: “Specifically, are istration officials claimed that deny-
nication)—allowing it to transfer you considering permitting Iranian ing Iran access to the dollar and the
banks to clear transactions in dollars U.S. financial system would provide
with U.S. banks or foreign financial Washington with leverage after the
The White House appears institutions including offshore clear- deal was done. Why throw away that
ing houses?” That finding, which remains in place, non-U.S. banks and Iranian banks. leverage in exchange for no new con-
poised to give Iran access Mr. Lew avoided a direct answer, cites Iran’s “support for terrorism,” Treasury determined that the risks cessions?
to the U.S. financial instead stating that the administra- and “illicit and deceptive financial simply outweighed the intelligence The Europeans are permitting
tion continues to explore ways “to activities.” benefits. Four years later Treasury Iranian banks to rejoin Swift. That’s
system. Watch out. make sure Iran gets relief” from What explains this possible rever- pushed to ban several Iranian banks, their decision. But until Congress can
sanctions. With this non-answer, sal? Most likely, Iran demanded it. including the central bank, from the get the intelligence community to
Congress is getting ready for a fight. Secretary of State John Kerry and Swift messaging system. The threat verify that Iranian banks have
funds across the global electronic It’s not hard to understand why. Foggy Bottom, always fearful that to the integrity of the global finan- stopped financing terrorist groups
banking system—the Obama adminis- The Financial Action Task Force, a Tehran will walk away from the cial system from Iranian banks, it such as Hezbollah and Hamas—not to
tration vowed that the Islamic Repub- global antiterrorism finance body, nuclear deal, may be ready to comply. again determined, was too grave, mention money laundering and other
lic would never get the ultimate prize: maintains a severe warning about Ira- Don’t expect the White House to despite the intelligence that could be financial crimes—you can bet that
access to the U.S. financial system or nian financial practices. Last month it admit this; the administration is gathered. Congress will oppose Iran’s access to
dollar transactions. warned that Iran’s “failure to address more likely to offer a feeble claim The administration might claim the U.S. financial system.
Treasury Secretary Jacob Lew was the risk of terrorist financing” poses a that its ability to oversee Iranian that Treasury could capture dollar-
adamant during a congressional grill- “serious threat . . . to the integrity of dollar transactions could yield better denominated assets when Iran vio- Messrs. Dubowitz and Schanzer
ing last July. “Iranian banks will not the international financial system.” intelligence. lates the nuclear agreement or uses are, respectively, executive director
be able to clear U.S. dollars through The Treasury Department also recog- In 2008, however, the Treasury De- the greenback to finance terrorism or and vice president for research at
New York,” he told the Senate For- nizes the danger, in 2011 labeling the partment banned U.S. financial insti- ballistic missiles. This wouldn’t be Foundation for Defense of Democra-
eign Relations Committee, or “hold Islamic Republic a “jurisdiction of tutions from processing “U-turns”— realistic. Iran knows the U.S. can cies and its Center on Sanctions and
correspondent account relationships primary money laundering concern.” temporary dollar transactions between freeze transactions that are even Illicit Finance.
Why Upgrading Air-Traffic Control Is Stuck in a Holding Pattern

By Roger Cohen officials in the Clinton and Bush House transportation committee, who federal budget sequestration in 2013 the Skies,” and its 400,000 passion-
W
administrations and, now, most air- seeks “transformational change.” Mr. threatened the FAA with a 10% ate, mostly recreational private pilots.
hen major legislation to lines—argues for turning over air- Shuster backs a bill to transfer air- across-the-board furlough—closing But the Shuster bill, in an effort to
overhaul the Federal Avia- traffic control to a quasi-public non- traffic control from the FAA to a new air-traffic towers and cutting shifts— quiet AOPA’s activists, grants small
tion Administration, includ- profit corporation. As the debate quasi-public body. Initially it seemed the union went into action. Congress, planes a hall pass from new fees and
ing the air-traffic control system, plays out, look-alike political groups— as if this bold plan would go through. spooked by the threat of airport de- airspace restrictions.
didn’t get enough speed to take off “American Travelers for Something or But now, despite bipartisan frustra- lays and planes circling over Chicago Neither side will—or should—play
in recent weeks, lawmakers opted Other”—will take to the airwaves, tion with everything airline, it has and New York, voted overwhelmingly the safety card. Flying has never
for the short-term fix. FAA funding each touting a high-tech, tax-free, been sent to the shop for repairs. to reverse the cutbacks. No FAA-re- been safer. The last fatal U.S. airline
was set to expire March 31, and Con- eco-friendly cure for what ails air The industry association Airlines lated legislation gets off the ground accident was in 2009. Your chances
gress bumped that deadline until travel. Things are not so simple. for America supports Mr. Shuster’s without union clearance. of being killed in an airplane crash
July 15. Although the measure pre- move, as do all the name-brand carri- This time the union is backing pri- are one in nearly 100,000, according
vented a traveler’s nightmare over ers except Delta. They want to govern vatization. Why the change of heart? to the National Safety Council, as
Easter break, it hasn’t resolved the The Federal Aviation the infrastructure that they use. For The unions are afraid of future con- opposed to one in about 100 in a car
larger points of contention: how to instance, it will cost millions over the gressional budget battles, and they crash, or one in roughly 50,000 by a
revamp a flight map based on the Administration needs an next five years to equip jets with know they’ll get a reliable stream of bee sting. You’ll know who’s losing
Transcontinental Railroad, a regula- overhaul. Cue the unions, gussied-up GPS technology, required funding from industry. Controllers are the air-traffic debate if one side
tory scheme rooted in the New Deal, by an FAA mandate. In theory, this sick of waiting for technology and starts to claim that the other guy’s
and traffic-control technology pre- airlines and lobbyists. will allow planes to fly more precise tower upgrades. And they talk to their position jeopardizes public safety.
dating “I Love Lucy.” paths, potentially saving time and counterparts in other countries and Whatever happens, passengers
For decades aviation special inter- fuel. But savvy airline executives, hear what a good deal it is. Canada are unlikely to notice. Planes will
ests have been in a standoff on these The FAA performs a minor mira- burned by decades of FAA stops and and several other Western democra- take off and land, delays (however
key questions, with political intrigue cle every day by keeping planes on starts, worry that a government-run cies have already successfully trans- mitigated) will persist at busy met-
and shifting alliances reminiscent of 80,000 flights from running into one air-traffic control system will lack the ferred their government air-traffic ropolitan airports, and the hidden
the Corleone and Barzini families in another. Managing change, however, funding and business acumen to make systems to industry control. costs for air-traffic control will be
“The Godfather.” As a lobbyist I’ve isn’t the agency’s core competency. the most of the technology. Those opposed to the Shuster bill cooked into the mulligan stew of
argued, at one time or another, The FAA’s Kafkaesque bureaucracy is Previous attempts to spin off air- include companies that fly business airline fares. The only other crew
against both extremes. so constricting that a former admin- traffic control failed because Demo- jets, who fear that any system con- guaranteed to come out of this turf
One side includes private pilots istrator once privately complained crats sided with organized labor—no- trolled by the big airlines might war unscathed: my old pals in the
and corporate jet owners. They want that he lacked the authority to hire tably, the 15,000-member National force them to pay higher fees and family business, airline lobbying.
to keep the long-standing model of a secretary. Not a deputy secretary Air Traffic Controllers Association. wait at the back of the arrival queue
FAA governance, funded by taxes, or an assistant secretary: a regular President Reagan busted its prede- at busy airports. Since corporate jets Mr. Cohen was formerly an execu-
tacked on to each airline ticket, total- secretary to answer the phones. cessor in 1981, but the millennial have few political friends, they rely tive at the Regional Airline Associa-
ing $13.5 billion a year. But the The point man in Congress is Rep. controllers hired since have resur- on the muscle of the Aircraft Owner tion, the Aircraft Owners and Pilots
aviation intelligentsia—think tanks, Bill Shuster (R., Pa.), chairman of the rected its political power. When and Pilots Association, the “NRA of Association, and Airlines for America.
Ending the Prescribe-Don’t-Tell Charade for Off-Label Drugs

By Joseph V. Gulfo so the anomaly: Off-label use is legal, 500 mg per deciliter). The company Moreover, a 2008 study found that effective in patients with heart fail-
E
but promoting off-label use is not. had been disseminating published eight out of 10 cancer doctors ure. Spironolactone, approved as a
arlier this month the Food and In 2012, however, the federal Court papers that demonstrated—on the ba- surveyed had prescribed drugs off- diuretic, is used for female pattern
Drug Administration reached a of Appeals for the Second Circuit sis of multiple large clinical studies— label. For cancer, on-label use baldness and also for acne.
settlement with Amarin, a struck down the conviction of a phar- that the fish-oil-derived drug was also amounted to 70%, and off-label use Here is a far better path forward.
small pharmaceutical firm, allowing maceutical salesman for promoting effective, in combination with statins, amounted to 30%. FDA approval means that a vast
it to promote its drug Vascepa for Xyrem (originally produced by Orphan for reducing triglyceride in patients Off-label treatments were ordered safety database already has been
treatments that the agency had not Medical) as a treatment for fibromyal- whose levels were above 200 mg/dL. for 96% of all pediatric patients, and amassed showing substantial evi-
specifically approved. The company gia and insomnia, although the FDA More court cases undoubtedly will 100% of patients ages 13-17 in the dence of effectiveness for the on-la-
had sued the FDA, claiming a First approved it only for narcolepsy. In be coming if the FDA does not take bel use for the drug in question. But
Amendment right to “engage in U.S. v. Coronia, the court ruled, on the lead in ironing out a better policy off-label use—especially in the con-
truthful and non-misleading speech.” First Amendment grounds, that “the about promoting off-label uses of A watershed moment for text of clinical studies or clinical ex-
The agency maintained that the government cannot prosecute phar- approved drugs, consistent with the drug companies’ First perience—is medically rational and
settlement was “specific to this par- maceutical manufacturers and their First Amendment. If it doesn’t, the appropriate. The FDA should permit
ticular case and situation.” In reality, representatives under the F.D.C.A. courts will. Amendment rights. the dissemination of this clinical
it is a watershed that could funda- [Food, Drug and Cosmetic Act] for One “solution” would be to outlaw information by applying a standard
mentally change the way drug com- speech promoting the lawful, off-label off-label use altogether, after which akin to the Federal Trade Commis-
panies market their products. use of an F.D.A.-approved drug.” questions about off-label promotion intensive care unit. A 2011 study of sion’s “competent and reliable scien-
It is legal for physicians and other The agency said that this setback would be moot. The FDA could get medication orders for 414 patients in tific evidence” requirement, as
health-care providers to prescribe would not significantly affect its cover for this regulation from a 2001 37 intensive care units across nation opposed to the agency’s “substantial
drugs for uses that the FDA has not ability to ban off-label promotion. study that showed 73% of off-label showed that more than 35% were for evidence” standard that the agency
specifically approved. The agency But it also declined to appeal the rul- drug mentions had little or no scien- an off-label purpose and that 97% of uses to initially approve the drug.
acknowledges that so-called off-label ing to the Supreme Court. tific support. patients received at least one off-la- Here’s how this approach might
uses are medically appropriate—but And now it has settled with Ama- Such a diktat would be dangerous. bel medication. work: An advertiser of an off-label use
has long banned companies from en- rin on Vascepa, which was approved The same study showed that 21% of Many effective treatments have for an approved drug would have to
couraging or advertising these uses for use in patients with severely ele- the 150 million prescriptions in 2001 been discovered through the off-la- possess at least the level of
among physicians or consumers. And vated triglyceride levels (greater than were for off-label uses, the most com- bel use of drugs. For example, beta- substantiation expressly or implicitly
mon of which were as anti-seizure blockers, originally approved for claimed in the advertisement: “Tests
medicines and for cardiac diseases. hypertension, were shown to be Prove . . . ” “Doctors Recommend . . .
” “Studies Show . . . ”
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY The level of substantiation depends
Notable & Quotable: On le Carré

on what is being claimed. For exam-
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp ple, if the stated off-label use is to
Gerard Baker William Lewis prevent heart attacks, data showing
Editor in Chief Chief Executive Officer and Publisher From British journalist Nick Co- purpose of all Middle Eastern and that patients taking the drug had
Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT:
hen’s “The Cowardice of John Le practically all global policy.” fewer myocardial infarctions would be
Deputy Editors in Chief Ashley Huston, Chief Communications Officer; Carré” for the April issue of Stand- Then there is the self-pity, that required, not merely fewer episodes
DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; point magazine, a passage about the most deplorable affectation of West- of chest pain. Moreover, a national
Mark Musgrave, Chief People Officer;
Michael W. Miller, Senior Deputy;
Edward Roussel, Chief Innovation Officer;
author’s “post-Cold War politics”: ern intellectuals, who have never database showing the results of off-la-
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; once faced the smallest threat of bel clinical studies would help pa-
Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer Connoisseurs of his public state- persecution or punishment for their tients and physicians make informed
News; Ann Podd, Initiatives; Andrew Regal, Video;
OPERATING EXECUTIVES: ments can tick every space on the writing. At one point during the last decisions, while enabling the FDA to
Matthew Rose, Enterprise; Stephen Wisnefski,
Professional News; Jessica Yu, Visuals
Nancy McNeill, Corporate Sales; bingo card. Le Carré believes that decade, le Carré compared himself to ensure the proper dissemination of
Steve Grycuk, Customer Service; corporations brainwash the bovine the German-Jewish diarist Victor truthful and non-misleading informa-
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International;
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: masses (check) on behalf of the im- Klemperer, who miraculously sur- tion.
WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, perial American hegemon (check) vived life under the Nazis. Liberals
Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; which is itself controlled by a con- of a certain age remember that when Dr. Gulfo is the executive director
Chris Collins, Advertising; Jason P. Conti, Legal; Professional Information Business:
Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; spiracy of right-wingers (check) who the Ayatollah Khomeini’s assassins of the Rothman Institute of Innova-
Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head are pulling our puppet strings at the imitated the Nazis and threatened tion and Entrepreneurship at Fair-
Larry L. Hoffman, Production behest of—guess who?—the Jews Salman Rushdie’s life the Klemperer leigh Dickinson University and author
EDITORIAL AND CORPORATE HEADQUARTERS: (full house!). Or as le Carré ex- de nos jours opined that Rushdie of “Innovation Breakdown: How the
1211 Avenue of the Americas, New York, N.Y., 10036 plained, the neoconservatives are had brought death on himself by in- FDA and Wall Street Cripple Medical
Telephone 1-800-DOWJONES
“appointing the state of Israel as the sulting the great religion of Islam. Advances” (Post Hill Press, 2014).
Cognitive finance is here.

There’s a risk in M&A deals; up to nine out of ten fail.
With IBM Watson™ Tradeoff Analytics, clients can
analyze more diverse data sets, designed to provide
context around specific concerns. Clients can
see risks and opportunity more clearly, gaining the
confidence to act. When your business thinks,
you can outthink uncertainty.
outthink
risk
ibm.com/outthink
IBM and its logo, ibm.com and Watson are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. ©International Business Machines Corp. 2016.
CITY NEWS A18, A19 | PROPERTY MONDAY A20 | HEARD & SCENE A22
The Tall Tinkerer Two Tales

Of Trumpeters
EVERETT COLLECTION
Mets ace on self-improvement quest | A24 ARTS | A22
WSJ.com/NY * * * * THE WALL STREET JOURNAL. Monday, March 28, 2016 | A17
Top Hat and (Rabbit) Tails

Upstate Seeks Drone Liftoff
Officials hope test site
in Rome, N.Y., will help
root industry in region
and boost the economy
BY CORINNE RAMEY
PETER J. SMITH FOR THE WALL STREET JOURNAL
ROME, N.Y.—A 5-pound

drone took off from an airfield
in upstate New York and
steadily climbed to about 100
feet. The craft, a Lockheed
Martin Indago, soared for 10
minutes over pine trees and
grassy fields, following a flight
path programmed into a lap-
top, before landing at the feet
of its pilot.
BUNNY BONNET: Yuan Wang sported a Chinese-themed chapeau The Rome site is one of six
Sunday for the annual Easter Parade on Fifth Avenue. A18 designated across the U.S. by
the Federal Aviation Adminis-
tration to test unmanned air-
craft systems, and it is at the
State Budget Set

heart of a plan to use drones to
jump-start the upstate region’s
lagging economy.
Local officials, businesses
To Omit Tighter
and CenterState CEO, a regional
economic-development organi-
zation, have been working to-
RICHARD BEAVEN FOR THE WALL STREET JOURNAL (3)

gether over the past several
Rules on Ethics years to position the area as a

nationwide hub of commercial
drone research, testing and
manufacturing.
BY ERICA ORDEN address, he has said nothing Those rooting for the drone
AND MIKE VILENSKY publicly about ethics unless industry are also betting that
prompted by a reporter’s ques- the government will devise reg-
ALBANY—In January, about tion on the subject. ulations—allowing drones to
a month after both of New Earlier this month, he indi- deliver packages, monitor crops
York’s onetime legislative lead- cated that he would attempt to and find missing people—that
ers were convicted of abusing achieve the LLC and pension will set the framework for what
their public offices for private measures by the end of the leg- many see as a lucrative race for
gain, Gov. Andrew Cuomo un- islative session, in June. the lower 1,000 feet of the sky.
furled a slate of proposals “This year, it is the voters “That’s the $80 billion ques- An Indago drone is tested in Rome, N.Y., by pilots Eric Haines, top, and Chuck Hereth, right. Al Lock,
aimed at restoring the “public who will provide the best lever- tion,” said James Poss, execu- left, of SRC Inc., stands in one of the near field Anechoic chambers used for testing in Syracuse.
trust.” age,” said John P.L. Kelly, a tive director of a FAA research
“These ethics reforms are spokesman for Mr. Cuomo. “As coalition known as the Alliance 600,000 this year to 2.7 million and SRC Inc., among others. Beyond the test site, many
important,” he told a crowd of the governor has previously for System Safety of UAS in 2020. The National Aeronautics companies involved focus on
hundreds during his State of said, we cannot imagine a sce- through Research Excellence. The hoped-for foundations and Space Administration has a technology that will allow
the State address. “Especially nario where legislators will be A Goldman Sachs report ear- of a drone industry upstate are contract with Oneida County, drones to detect and avoid each
considering the context of the able to face their constituents lier this month said the global coming together across a six- which owns the test site, for up other aloft, and the eventual
past year.” without taking significant ac- drone market would reach $100 county region that includes cit- to $5 million over five years. A air-traffic control system that
tion on ethics reform.” billion by 2020, with $21 billion ies such as Syracuse and Utica. nonprofit known as NUAIR Alli- will be needed.
But, as Sen. Andrea Stewart- of that from commercial Companies already in the area, ance, which manages the test Please see DRONES page A20
‘It is the voters who Cousins of Yonkers, who leads drones. Last week, the FAA es- which has an Air National site, will research unmanned
will provide the best the minority Democrats in the timated sales of commercial Guard base, include Lockheed and autonomous flight technol- Anti-drone activists make
chamber, put it: “We are blow- drones would grow from Martin Corp., Saab Sensis Corp. ogies. their voices heard................ A20
leverage,’ said a ing our Watergate moment.”
Cuomo spokesman. “This year’s budget process
Artist Skeptical Over Murals’ Fate

has been nothing but a series
of covert meetings and phone
Two months later, New calls shielded from the press
York’s budget agreement, due and public,” she added.
Friday, is set to include not a Indeed, Albany’s “three men BY PETER GRANT off a furor in the art world by The Chetrits declined fur-
single one of them. in a room” process of negotiat- saying they were being endan- ther comment.
The primary purpose of the ing the roughly $154 billion The developer that is con- gered by the conversion proj- Mr. Stern said in an inter-
budget, of course, is to be a budget not only has persisted verting the Sony Building in ect. That led to a series of view that his firm is making
state spending plan. But it fre- but has grown even more Midtown Manhattan into lux- meetings in February and ear- sure that the lighting and
PETER GRANT/THE WALL STREET JOURNAL
quently includes other policy opaque. ury apartments and a hotel lier this month between Ms. other design elements comple-
measures, and as Mr. Cuomo Though in previous years says it will preserve in its sky Rockburne and Joseph Chetrit; ment the murals, which will
himself has stressed, it is the the offices of the governor or lobby a pair of acclaimed his son, Jonathan; and their “give this lobby a wonderful
point of maximum leverage for legislative leaders would advise floor-to-ceiling frescoes by architect, Robert A.M. Stern. glow and make it something
the governor and legislative reporters of the timing of their Dorothea Rockburne, but the Despite the Chetrits’ com- everyone will want to enjoy
leaders. private meetings, sometimes artist isn’t sat- mitment to save the murals, and experience.”
Around Albany, it comes as even putting them on Mr. PROPERTY isfied. Ms. Rockburne said that she He added: “I am the archi-
a surprise to few that the bud- Cuomo’s public schedule, this The Chetrit isn’t happy with the outcome tect and interior designer for
get won’t include changes to year they have curbed those Group, which is and is still considering seeking the project and not Dorothea.”
outside-income rules, cam- practices entirely. converting 550 Madison Ave. landmark designation of the The controversy over Ms.
paign-finance provisions allow- Sen. Liz Krueger, a Manhat- into 113 condominiums and a lobby to ensure the murals are Rockburne’s murals marks the
ing limited-liability companies tan Democrat, and other legisla- hotel, plans to “sensitively preserved and treated properly. Artist Dorothea Rockburne latest time that concerns have
to contribute enormous politi- tors said some budget negotia- preserve the murals in their She said in an interview been raised over a New York
cal sums, or the fact that pub- tions between Mr. Cuomo and existing location and condi- that the Chetrits have balked said. developer’s plans for famous
lic officials convicted of crimes the legislative leaders have been tion, which will entail consid- on giving her a contract prom- Ms. Rockburne also wants artwork associated with prop-
can continue to collect their held off-site this year, in the pri- erable cost and time,” a ising to preserve the paint- to be involved in how the erties they’ve purchased.
pensions. vate executive mansion. Histori- spokesman for the family- ings, named “Northern Sky” paintings are lighted and For example, Aby Rosen,
Mr. Cuomo has done little to cally, such talks have taken place owned firm said. and “Southern Sky,” in perpe- whether furniture will obscure who purchased the Seagram
advance these proposals or any at the public Capitol building. The fate of murals has been tuity. them. “They won’t give me Building in 2000, roiled con-
other ethics measures. Since Ms. Krueger said in an email uncertain since earlier this “They can preserve it today any respect about how it’s be- servationists and others when
his January State of the State Please see ETHICS page A18 year when Ms. Rockburne set and destroy it tomorrow,” she ing saved,” she said. Please see MURALS page A20
At This Film Class, 59°

TODAY’S
Weather
Real Feel
9 a.m. 40°
Phones Are Allowed HIGH
5 p.m. 50°
Record High
BY ZOLAN KANNO-YOUNGS past 13 years, is known as an
84° (1945)
innovator. Two years ago, he
Anthony Stirpe beamed launched a film class that re- RAIN AND Sunrise/Sunset
from the corner of a New Ro- lies on Apple products in- DRIZZLE 6:45 a.m./7:17 p.m.
chelle High School classroom stead of expensive movie
as his film students took their cameras. Tuesday’s High
positions. By integrating new tech-
One student used an iPad nology with the arts, Mr.
52°
to film another student taking Stirpe, 40 years old, has led
a selfie with her iPhone. Both one of the most popular
N.Y. Sports Lineup
PETER FOLEY FOR THE WALL STREET JOURNAL
of them were captured by an- classes at the high school,

other student, who was using even as school budgets for art
a smartphone to make a doc- programs remain stagnant. 7:30 p.m.
umentary. “We have experienced some Monday
“In a normal class we cuts in our department that Nets @ Heat
would be telling them to put the rest of the departments in
their phones away and put the district and of course
their iPads away,” said Mr. around the state have experi-
Stirpe, an English and film enced, but the community val- 8 p.m. Monday
teacher. “And I’m telling them ues this program,” said Marc Knicks @ Pelicans
to take them out.” Schneider, the New Rochelle
Mr. Stirpe, who has worked school district’s supervisor of
Isabel Sanchez uses an iPad to shoot a rehearsal for her film class at New Rochelle High School. at the high school for the Please see CLASS page A18 For N.Y. sports coverage, see A24
CITY NEWS
PETER J. SMITH FOR THE WALL STREET JOURNAL (3)

J.J., a bulldog-boxer mix, was all dressed up. Nicole Clayton, Nico Grigley and Michelle Grigley’s rabbit hats were a
tribute to David Bowie. Seth Boyd’s rainbow jacket included jelly beans and Richard Renaldi was covered in candies.
Can You Top This? Bonnets Bloom at Easter Parade

BY ZOLAN KANNO-YOUNGS capturing as many photo- ter is to encourage more
graphs as they could. critical thinking,” said Ms.
T
wenty years ago, when Seeing the parade as a Llano, an atheist.
Richard Renaldi first way to spread a social mes- Christian Baldaccini, 29,
attended the Easter sage, Marni Halasa dressed of Beachwood, N.J., began
Parade and Easter Bonnet as what she called a “money attending the parade with
Festival, he did like everyone bunny.” The activist wore his mother-in-law when he
else and wore a flamboyant bunny ears, and attached to got married. He wore New
hat. her green leotard were more York Jets pajamas with a 4-
Sunday found him stroll- than 150 fake $100 bills, She foot-long model of a green
ing Fifth Avenue in a sports held a sign that said “Bun- jet on top of his head. He
jacket covered in 30 pounds nies vs. Corporate Greed.” added a Kermit the Frog doll
of candy corn and pink, can- “What I find is I’m not an in the pilot seat.
died Jordan almonds. angry hostile protester so He said the holiday repre-
“I upped my game,” said people seem to want to en- sented “hope,” something he
Mr. Renaldi, who showed off gage more,” said Ms. Halasa, said the Jets needed.
where he had burned his 48. Daniel Johnson, 53, stood
hands as he used a glue gun Many outside the cathe- a couple feet away from Mr.
to affix the candies to the dral were briefly unnerved Baldaccini near the front
jacket. when a man was arrested af- steps of the cathedral holding
Mr. Renaldi, 47 years old, ter interrupting a service in- a sign with a picture of Jesus.
of the West Village, was one side. Jacob Martin, 23, took He said wearing costumes on
of hundreds of people who out a bullhorn at 12:20 p.m. Easter takes away from the
donned celebratory headgear and began “making state- true meaning of the holiday.
and milled about Fifth Ave- ments about gay rights and “A lot of these people walk-
nue in front of St. Patrick’s animal rights,” said a ing around have no knowl-
Cathedral, in a New York spokesman for the New York religious service. He couldn’t her bonnet. She said she Pata Luna Llano, 47, of edge of God,” said Mr. John-
City tradition that dates to Police Department. He is a be reached for comment. didn’t do much on Easter be- Washington Heights, wore a son, a homeless man. “I just
the 1870s. member of Collectively Free, Most people, however, at- fore stumbling upon the pa- multicolored dress and a wanted to bring a little spiri-
Many began to gather an international activist or- tended the parade to cele- rade in 2013. “Usually it’s geodesic sphere on top of tuality to it. Hope that some-
around 11 a.m. after a Mass ganization that, in this case, brate Easter and the first just dinner with the family her head. She said she cre- one will worship the Lord.”
inside the cathedral let out. was demonstrating its oppo- days of spring. or dinner with the friends ated the structure, which Like Mr. Baldaccini, Mr.
While some posed in bunny sition to the consumption of Liz Dowling, 26, of Murray but it’s great to see everyone measured 3 feet in circum- Johnson said Easter gave
ears, bonnets and head-to- animals in Easter dinners. Hill, said she spent around come out, young and old, ference, to bring “math and him hope. “I’m doing bad,
toe costumes, others maneu- Mr. Martin was arrested $35 on fake moss, Easter with all these crazy outfits nature to Easter.” I’m homeless,” he said. “But
vered through the crowd and charged with disrupting a eggs and flowers to make and hats,” Ms. Dowling said. “The goal for me for Eas- I’m happy.”
ETHICS While no lawmaker has been

arrested this year, the current
legislative session hasn’t been
scandal-free.
CLASS
Continued from page A17 Earlier in March, a freshman Continued from page A17
that the secrecy of the negotia- Democratic senator from Buf- music and art.
tions “has never been accept- falo, Marc Panepinto, an- Earlier this month, Mr.
able but never seems to nounced unexpectedly that he Stirpe’s students roamed the
change.” wouldn’t seek re-election “for school, strapping iPads,
Mr. Kelly, the governor’s reasons personal and profes- iPhones and iPod touches to
spokesman, said the negotia- sional,” following the resigna- tripods and selfie sticks to
tions have taken place in a vari- tion of a top staffer. The Buf- film their final projects.
ety of venues, including at the falo News reported that the “The kids already have the
Capitol and the mansion, and Joint Commission on Public equipment in their hands,”
on the phone. Ethics, a state ethics agency, is said Reginald Richardson, the
The Legislature has made making inquires into his office. school’s principal. “Let’s just
some nods toward transpar- JCOPE declined to comment. free them to use it.”
ency and accountability. The Mr. Panepinto didn’t respond In 2014, when a script-writ-
Republican-led Senate passed a calls for comment. He has pre- ing teacher at New Rochelle
PETER FOLEY FOR THE WALL STREET JOURNAL
bill to set term limits on the viously said there is no investi- retired and the school consid-
majority leadership. In the As- gation against him ered canceling the class, Mr.
sembly, Speaker Carl Heastie, a The Senate kerfuffle fol- Stirpe, proposed creating a
Democrat, embraced a series of lowed one in the Assembly this film class to replace it. He had
proposed internal rules year, when Mr. Heastie admon- already been using his own
changes, including broadcasting ished Assemblywoman Angela iPad to teach an after-school
committee meetings. Wozniak, a Buffalo Republican, film program.
While some ethics advocates for having an affair with one of Mr. Stirpe said many ad-
and legislators said the plan her staff members, and with- ministrators questioned
doesn’t do nearly enough to held some Assembly privileges whether students could create
combat corruption, Mr. Heastie from her as a result. She apolo- quality movies with the de-
has received praise from As- gized in a video message for vices. The district also
semblywoman Nicole Malliota- showing “very poor judgment.” didn’t—and still doesn’t—have Anthony Stirpe, an English and film teacher, with his students during a film rehearsal being shot on
kis, a Staten Island Republican Asked last week if there are the budget to spend thousands an iPad at New Rochelle High School. His film class is one of the most popular at the school.
who is often critical of the any new ethics laws she wants of dollars on cameras for ev-
chamber’s leadership. pushed in the budget this year, ery student, Mr. Schneider submitted to a film festival interview subject was New first time is probably going to
“Generally speaking, the Ms. Wozniak declined to say, said. run by the United Nations. York state Assembly Speaker stink.”
new speaker is a breath of instead handing out her busi- “The budget has gone up “I would definitely say Carl Heastie. Some teachers, even those
fresh air, considering who was ness card and suggesting a re- slightly but minimally, and there were doubts because “The kids were incredibly who consider themselves tech-
there prior,” she said in an in- porter email her. with the costs that we face it’s we’ve been so used to using focused,” said Mr. Heastie, a nologically challenged, walked
terview. “He is hearing our “There’s always been a dis- basically meant that we ha- social media with our phones Bronx Democrat. “I was very away willing to give apps a
ideas.” cussion of the importance of ven’t been able to expand that we never really thought impressed with their use of try.
Still, Ms. Malliotakis, who ethics, and that will continue, much of anything,” Mr. that they could be such a big readily available technology to Deborah Minchin, a 62-
took office in 2011, said, “Since but it won’t be in the budget,” Schneider said. help in building an actual create something really year-old political science
I’ve been here, 16 of my col- Mr. Heastie said last week. “We The school’s principal liked film,” Ms. Bonetti said. unique.” teacher, said she has started
leagues have been indicted, still have three more months the idea of devices helping In the two years since the making videos of her lectures
convicted or forced to resign. up here in Albany to work students learn, rather than film class’s launch, Mr. Stirpe for students to view at home.
It’s appalling.” something out.” distracting them from their
This year Mr. Stirpe said he has had about 30 stu- “Maybe there’s no benefit
studies. Mr. Richardson submitted eight dents enroll each year, includ- to an old dog learning new
pushed the administration to ing 10 who went on to pursue tricks, but I think there is,”
provide funding for five
student films to film in college. Ms. Minchin said. “I’m willing
iPads—a small number for 30 local film festivals. Mr. Richardson said he to be that person—that old
students. Many of the school’s wants all of his teachers to person who’s trying new
teachers then donated their follow Mr. Stirpe’s lead. things.”
old iPhones. She said she often brought “In my mind, technology is
Mr. Stirpe shared his plans class work home with her— like textbooks,” Mr. Richard-
with Apple, and the company her movie camera was in her son said. “One couldn’t imag- We Want to Hear
agreed to lend the school five pocket after all. ine a school without text- From You
more tablets, he said. FiLMiC “It was actually way easier books. I can’t imagine a school Have something to say about
Pro, an editing app, gave Mr. and way more efficient to use without technology.” an article in Greater New
MIKE GROLL/ASSOCIATED PRESS
Stirpe more than 3,000 free than a big, bulky camera,” said Mr. Stirpe, a Syracuse na- York? Email us, along with
download codes, giving his Ms. Bonetti, referring to her tive, led a workshop earlier your contact information, at
students modern software. phone. this month for about 35 teach- gnyltrs@wsj.com. Your letter
This year Mr. Stirpe sub- When the high school has a ers on how to use different could be published in our
mitted eight student films to special visitor, Mr. Stirpe’s apps to engage students. weekly Feedback column on
local film festivals. Brielle students set up their tripods, “The first time is the most Friday. Letters will be edited
Bonetti, a 17-year-old senior, tablets and sound equipment, intimidating time,” he said. for brevity and clarity. Please
used an iPhone to shoot a film turning a classroom into a “As I tell my students, when include your city and state.
Gov. Andrew Cuomo made his State of the State speech in January. on climate change that was makeshift studio. One recent they write their scripts, the
CITY NEWS
Feelings Mixed A Year After Explosion, Only Memories Remain

As Festival Boots
Film on Vaccines
BY ZOLAN KANNO-YOUNGS this film that we feel prevent
us from presenting it in the
A day after the Tribeca Film Festival program.”
Festival dropped an anti-vacci- A spokeswoman for the film
nation documentary, medical festival declined to comment
professionals were relieved further on Sunday.
while others were dismayed “In response to an outcry of
the story didn’t make it to the concern that came from more
big screen. right-minded and reformed
Actor Robert De Niro, one people in the scientific commu-
of the festival’s founders, ini- nity, they reconsidered and
tially defended the film, thought better of it,” said Jef-
PETER J. SMITH FOR THE WALL STREET JOURNAL

“Vaxxed: From Cover-Up to frey Lieberman, psychiatrist-in-
Catastrophe,” which was di- chief at New York-Presbyterian/
rected and co-written by Brit- Columbia University Medical
ish doctor Andrew Wakefield. Center.
Mr. Wakefield published a But Dr. Lieberman added
study in 1998 in The Lancet that by accepting Mr. Wake-
claiming a link between a vac- field’s film initially—and giv-
cine and autism. ing the documentary a plat-
The findings were proved form—Tribeca already had
fraudulent, the article was re- done damage.
tracted and Mr. Wakefield lost “By the film festival’s deci-
his medical license. sion to air it…that’s kind of
opening the scab on an old EMPTINESS: People stopped Sunday to look at a memorial for the two men killed March 26, 2015, when an explosion leveled three
wound,” he said. “It’s unneces- buildings in the East Village. Authorities say the blast was caused by tampering with a gas line. Five people have been charged.
The initial decision sary and it perpetuates misin-
to air the film was formation. Even if they pulled
it, it didn’t have to occur to
‘opening the scab on begin with.” has not been released pending are leading the investigation. gizing for “an unfortunate situa-
an old wound.’ A petition on Change.org ti-
tled “Bring VAXXED back to
Greater family notification, officials said.
The four firefighters were
—Associated Press tion,” adding that the actions of a
few turned the event into “a
In a statement Sunday, Mr.

Tribeca” had more than 14,000
signatures by early Sunday New York taken to Elmhurst Hospital Cen-
ter, where they were treated for
CONNECTICUT
An Easter-Egg Hunt
mess.”
People who attended took to
Wakefield and the producer of
the film, Del Bigtree, said: “It
evening. One of the signers,
Jennifer Giustra-Kozek, 44 Watch minor injuries, officials said.
Investigators are probing the Turns Into Bedlam
Facebook to call the event “a
joke” and blaming “greedy par-
is our understanding that per- years old, of Oxford, Conn., fire’s cause, officials said. What’s supposed to be a cher- ents” for ruining it. The event
sons from an organization af- said the documentary needed —Mark Morales ished Easter tradition turned into ended early. No injuries were re-
filiated with the festival have to be shown. a mess after pushy parents ported.
made unspecified allegations “It’s a showcase of truth, NEW JERSEY caused a scene at an egg hunt —Associated Press
against the film—claims that and it’s a story of the truth QUEENS over the weekend.
we were given no opportunity parents are living,” said Ms.
One Person Is Killed Saturday’s event at the visitor LONG ISLAND
to challenge or redress. We Giustra-Kozek, who believes
Elderly Man Found By NJ Transit Train center of candy company Pez in
were denied due process.” her son’s autism was rooted in Dead in Elmhurst Fire A person was been struck Orange drew hundreds of people,
Police Seek Culprit
Mr. De Niro, who has pub- a hepatitis B vaccination. “By An elderly man was killed and and killed Saturday night by a some of whom ignored the rules. In Bar Stabbing
licly discussed having an au- denying it, it’s actually propel- four firefighters injured after fire NJ Transit train near the Prince- “Everyone just rushed the field Police are looking for a man
tistic child, said in a statement ling our mission.” tore through a Queens home ton Junction in Mercer County. and took everything,” Pez General who stabbed another man at a
released Saturday that his in- Melissa Palermo, 30, of early Sunday, officials said. Authorities said none of the Manager Shawn Peterson said. Long Island bar early Saturday.
tent “was to provide an oppor- Staten Island, who has an au- The fire was sparked at a roughly 500 passengers and Event organizers placed more Suffolk County police say the
tunity around an issue that is tistic son, said the documen- home on 87th Street in East crew members aboard the than 9,000 eggs on three fields 22-year-old victim was able to
deeply personal to me and my tary’s claims are “worth inves- Elmhurst just after 4:30 a.m., au- Northeast Corridor line train with the intention of having stag- drive himself to a hospital from
family.” tigating further.” But she still thorities said. As many as 60 were injured. The train had de- gered start times for each age Dr. Finley’s Public House in Hun-
“The Festival doesn’t seek takes her children to be vacci- firefighters responded. parted from New York’s Penn group. But Pez officials say par- tington. He was treated and re-
to avoid or shy away from nated. An 88-year-old man was Station and was headed to Tren- ents didn’t wait. Mr. Peterson said leased.
controversy,” the statement “Because not doing it can- found with severe burns inside ton when the person was struck. the crowd was “kind of like lo- Police are asking anyone with
read. “However, we have con- not only put your child at risk the home and was pronounced The name of the victim has custs.” information to call them.
cerns with certain things in but others,” she said. dead, authorities said. His name not been released. Amtrak police Pez issued a statement apolo- —Associated Press
PROPERTY MONDAY
undergoing a full renovation.
What’s the “This is where our clients
know to come for brands,” Mr.
Deal Flom said.
The building housing the
Maserati dealership will have an
all-glass showroom, high ceilings,
a glass elevator and rooftop
space. Maserati of Manhattan will
MANHATTAN remain open at its downtown lo-
cation until its new home is com-
Maserati Dealership pleted in February 2017.
Moving to Auto Row —Keiko Morris
Maserati of Manhattan will be
moving uptown to a new home MANHATTAN
on Auto Row.
BNF Automotive Group
Elizabeth Arden
bought the Maserati franchise Renews Its Lease
earlier this year and plans to Elizabeth Arden Inc. has re-
move the dealership from 1 York newed its lease early for its spot
St. in lower Manhattan to a new at 200 Park Ave. South, the heart
flagship location at the corner of of the coveted Midtown South
11th Avenue and West 47th office market, according to the
Street, said Gary Flom, chief ex- broker representing the landlord.
ecutive and president of BNF. The beauty-product company
DORTHEA ROCKBURNE (2)

BNF signed a 49-year ground signed a lease for 35,698-square
lease for the site, where the com- feet in the 17-story building at
pany has started the foundation the corner of Park Avenue South
work for a five-story, 35,000- and East 17th Street. The com-
square-foot building, he said. pany currently occupies floors 2, 6
BNF decided to relocate Mase- and 7, but under the new lease it
rati of Manhattan because 11th will shed the second floor and en- Artist Dorothea Rockburne says ‘Northern Sky,’ left, and ‘Southern Sky’ were designed to reflect their exact locations in the cosmos.
Avenue between West 57th and tirely revamp its offices on the
Artist Wants Pledge From Developer

47th streets is the heart of the other levels, said Alan Friedman,
auto district, Mr. Flom said. The senior managing director at ABS
more-than-$17 million new build- Partners Real Estate LLC, which
ing will also be closer to 787 11th represents the landlord 200 Park
Ave. at West 55th Street, where Avenue South Associates LLC. Continued from page A17 Philip Johnson, who was a dust, floods, collapsing ceil- tol Paris and Eden Roc St. Bar-
BNF has its Jaguar Land Rover Elizabeth Arden also operates he decided in 2014 to remove teacher and mentor of Mr. ings and electrical work con- ths.
Manhattan, Infiniti of Manhattan a Red Door Spa on the ground “Le Tricorne,” a beloved Pi- Stern. stituting serious fire safety The Sony Building sky
and Nissan of Manhattan dealer- floor under a separate, lease. casso stage curtain, from the Joseph Chetrit, who was hazard.” Mr. Chetrit sold his lobby will become the hotel
ships. BNF’s facility at that site is —Keiko Morris building’s Four Seasons res- born in Morocco, has been a stake a few months after the lobby. Mr. Stern said the de-
taurant, where it had hung for major real-estate investor in suit. He has declined to com- sign of the lobby is still a
half a century. It is now on the U.S. in recent years. His ment on the suit or the ten- work in progress but new
display at the New-York His- biggest deals include leading a ants’ complaints. lighting for the frescoes are
torical Society. group that bought Chicago’s part of the plan. “We will
Ms. Rockburne’s murals Willis Tower in 2004 for $841 showcase those murals to
would have been tougher to million. They sold it to Black-
‘We will showcase their best advantage,” he said.
move because they are fres- stone Group last year for $1.3 these murals to the “Why wouldn’t we?”
coes painted onto the wall. billion. But Ms. Rockburne the
Also Ms. Rockburne, whose Mr. Chetrit isn’t a new-
best advantage. lighting of the painting is so
artwork is grounded in astron- comer to clashes in New York’s Why wouldn’t we?’ critical, getting it wrong
omy and mathematics, said rough-and-tumble real-estate would be like leaving out a
“Northern Sky” and “Southern industry. He bought the sto- color. “It can’t be seen unless
Sky” were designed in part to ried Hotel Chelsea for $78 mil- The Chetrits purchased the it’s lit by me,” she said.
reflect their exact locations in lion in 2011 with plans of over- Sony Building for $1.1 billion Ms. Rockburne said she also
the cosmos. “It can’t be hauling it but fought with the in 2013. Mr. Chetrit’s plan to was alarmed by the photos of
moved,” she said. building’s tenants, who con- convert the building is a sign a model of the lobby design
Sony commissioned the mu- tended that he was trying to that Midtown space is more that she was shown at one of
rals after it took over the 37- squeeze them out. valuable for residential uses her meetings with the Chet-
CAI ARCHITECTURE
story skyscraper at 550 Madi- According to an April 2013 than office uses. rits. The photo showed high
son in the 1990s from what lawsuit filed by tenants in The conversion is scheduled desks obscuring the view of
was then American Telephone New York civil court, Mr. Chet- to be completed in 2018. It the mural, she said.
& Telegraph Co. The building, rit failed to “provide heat and will include the first U.S. hotel “Would you put desks in
known for its notched Chip- hot water” and subjected ten- added to the Oetker Collection front of the ‘Last Supper’? ”
A rendering of 639 11th Ave., the dealership’s future home. pendale top, was designed by ants to “plumes of hazardous brand, which includes Le Bris- she asked.
CITY NEWS
Activists Wary of Drones’ Use Abroad and at Home

BY CORINNE RAMEY was on the legal side of the Hancock, which flies MQ-9 certain level the powers that be said founder Arland Whitfield, which passed a resolution in
road,” said her sister, Ellen Reapers for the U.S. military. are aware of playing that card.” 22, who now works for a drone December 2013 banning the
SYRACUSE, N.Y.—Anti-drone Grady. Opponents of military drones Others in the region defend company. purchase and use of drones by
activist Mary Anne Grady The efforts of upstate offi- cite a range of objections, in- the development of the drones, After a public-safety officer the city and its agencies.
Flores, a 59-year-old caterer, cials and businesses to develop cluding that the machines inap- saying the machines could play told a club member drones Drones raise “far-reaching
was arrested in 2013 for step- an economy around the drone propriately remove the human a critical role in the economy of were banned on campus, stu- issues concerning the extent of
ping onto the property of Han- industry come amid a broader element from the intentional vi- the future. Among them: those dents brainstormed ideas for government surveillance, the
cock Field Air National Guard public debate about unmanned olence of warfare. involved in a Syracuse Univer- negotiating with the university. value of privacy in the digital
Base near Syracuse. Ms. Grady aircraft. Both military and commer- sity student organization A university spokeswoman age, and the role of Congress in
Flores, who had a court order One group, called Upstate cial drones raise issues of civil known as Skyworks Project. said the school hadn’t banned reconciling these issues,” the
to stay away from the base’s Coalition to Ground the Drones liberties and surveillance, some “When we started people the use of drones on campus resolution read.
colonel, began a six-month jail and End the Wars, of which Ms. activists say. “It almost feels were really afraid of drones, and had no official drone policy. Ms. Grady Flores, mean-
sentence in January. Grady Flores is a member, is fo- like they provide a cover for the and my goal was to let people The question of privacy while, was released from jail
“She was taking photo- cused on military drones. It real nitty-gritty,” said longtime get their hands on them and re- came to the local legislators on earlier this month pending the
graphs, and she thought she demonstrates twice a month at activist Ed Kinane. “I think on a evaluate their judgment of it,” the Syracuse Common Council, outcome of her appeal.
DRONES
Continued from page A17
“To be able to allow the
Domino’s pizza delivery drone
to keep from hitting the Ama-
RICHARD BEAVEN FOR THE WALL STREET JOURNAL
zon package drone at the corner

still has to be developed,” said
Larry Brinker, executive direc-
tor and general counsel of NU-
AIR, which coordinates about
90 business, government and
academic institutions collabo-
rating on regional drone efforts.
In December 2015, the plan
got a further boost when the
central New York region was
awarded $250 million for drone
initiatives through the Upstate
Revitalization Initiative. Cady Kepler, left, and Phil Hofman prepare an Indago drone
The state funding will go to- before testing at Griffiss International Airport in Rome, N.Y.
ward building an indoor testing
and certification facility, development at Gryphon Sensors a longtime Green Party politi-
oping an air-traffic manage- LLC, a detection and surveil- cian who ran for governor in
ment system and policy re- lance company. 2014.
search. In December 2013, the FAA But economic development
The management system es- named Griffiss International is never an exact science, noted
sentially creates “highways in Airport in Rome, a decommis- Oneida County Executive An-
the sky for UAS,” said Oneida sioned air base dating to the thony Picente. “In order to
County Commissioner of Avia- 1940s, as one of the six test grow you have to have a broad
tion Russell Stark, using the ac- sites nationwide. The designa- vision and have to be bold,” he
MONSAT 10AM10PM ronym for unmanned aircraft
systems.
tion came with no major fund-
ing, but it provided a morale
said.
The initiative is still in its
SUN 10AM7PM The big need and challenge boost for the region, said Rob- early stages. One company has
JAVITS CENTER in developing a traffic-man- ert Simpson, president of Cen- moved to the area, Pro Drones
AUTOSHOWNY.COM agement system is to help
drones fly safely beyond the
terState CEO. The area has been
hard hit by the loss of manufac-
USA LLC. Local officials say
they are in talks with others.
Buy Tickets Online or at the Door line of sight, said Parimal Kop- turing jobs. In the coming weeks at the
ardekar, principal investigator “This is a region that doesn’t Rome test site, a group called
Tickets are just $16, children $7 for NASA’s UAS Traffic Man- always rise to the top,” Mr. Project Lifesaver is scheduled
Save on discount rail and show packages with LIRR agement. Simpson said. to use a modified version of the
and Metro-North at mta.info Among other things, the in- Not everyone is on board. Indago to test finding patients
NY Waterway combo tickets also available at AutoShowNY.com door facility would replicate en- “We have a serious poverty with dementia. A separate trial
RECORDED INFO: 800-282-3336 vironmental conditions, such as problem, and this industry is will involve the first flight at
FOR SECURITY PURPOSES, NO BACKPACKS ALLOWED. RANDOM SECURITY AND BAG CHECKS. wind, dust, fog or snow, said not too accessible to people the site with multiple aircraft
AN ACTIVITY OF THE GREATER NEW YORK AUTOMOBILE DEALERS ASSOCIATION. Craig Marcinkowski, director who are making low wages and in the air simultaneously. The
of strategy and business devel- are poor,” said Howie Hawkins, goal is simple: no crashes.
ARTS & ENTERTAINMENT

CLOCKWISE FROM RIGHT: BRIAN DOUGLAS/SONY PICTURES CLASSICS; BOB DEAR/ASSOCIATED PRESS; IFC FILMS
Two portraits of brilliant but troubled musicians: Above, Don Cheadle as Miles Davis in ‘Miles Ahead,’ which opens April 1. Top right,
trumpeter and singer Chet Baker with his wife Liliane in London in 1955. Bottom right, actor Ethan Hawke as Baker in ‘Born to Be Blue.’
Two Films That Are Kind of Blue

BY STEVE DOLLAR duced. “I knew his world him only so far. “I begged “They had been trying to do Rather than strictly re-cre- Denver youth, and grew up
emotionally.” for another year, but my a project like this for 20 ate actual events, the movie listening to classic jazz.
Actors Ethan Hawke and In the film, written and di- trumpet teacher insisted if I years,” said Mr. Cheadle, who introduces an imaginary sce- “Those were the albums that
Don Cheadle go horn-to-horn rected by Robert Budreau, had three years I wouldn’t be bravely took up the cause. nario involving a Rolling I stole when I graduated high
as rival jazz legends in two Baker is reeling after his ready.” In the years it took him to Stone reporter (Ewan school and went to college,”
separate big-screen bio- teeth are knocked out in a Nonetheless, Mr. Hawke develop the movie, it became McGregor) who becomes the he said.
graphical dramas. Each film beating. Unable to play and was always the top pick for clear to the actor that he musician’s accomplice in a He also did research.
takes an unconventional look dependent on methadone, he the role. would also have to direct it, careening mob caper, com- “There is a ton of material
at turning points in the lives is redeemed by the love of a “He’s not a musician per co-writing the offbeat story plete with a stolen recording, on Miles,” he said. “Home
of brilliant, troubled men. good woman (Carmen Ejogo, se, but I knew he was a huge with Steven Baigelman, gunplay, car chases and piles movies, photography, stories
Mr. Hawke stars as Chet a composite of Baker’s com- music nut,” said Mr. Budreau. whose credits include the of cocaine. from Frances and the family
Baker in “Born to Be Blue,” a panions). “He also has a disposition James Brown biopic “Get on Amid the mayhem, Davis that aren’t public. I had a lot
melancholy story about the “His whole world is shat- and a soft-spoken voice, a Up.” flashes back on his love af- of access.”
heartthrob trumpeter and tered,” said Mr. Hawke, certain artistic temperament Instead of what he called a fair with Frances Taylor, a Real events are creatively
singer’s struggle to regain whose movie opened Friday. that I knew resembled Chet CliffNotes version of Davis’s dancer who would become rearranged, although in at
his once-popular career in “The whole jazz world is Baker. I really saw him in life, Mr. Cheadle decided “we his first wife and the muse of least one instance Mr. Chea-
the 1960s. Mr. Cheadle plays threatened, too. The Beatles that period world.” can do something that feels albums such as “Someday My dle chose to defer to an au-
Miles Davis in “Miles Ahead,” are happening.” Mr. Cheadle, whose “Miles like it’s crazy and gangster Prince Will Come” and thority.
which he also co-wrote and The actor has played gui- Ahead” opens April 1, found and wild,” he said. “I wanted “E.S.P.” Jazz historian and WKCR
directed, capturing the mer- tar for most of his life, but himself cast as Davis before to do something that was ex- For Mr. Cheadle, the risky radio host Phil Schaap’s own
curial trumpeter in his own was challenged to emulate the project really existed. In periential.” approach suited his contrar- voice is heard in a scene
limbo during a hermit-like Baker’s delicate and bitter- 2006, when the trumpeter In the film, Mr. Cheadle ian subject. “When someone where Davis makes an irate
retirement in the late 1970s. sweet trumpet and vocals. was inducted into the Rock plays the jazz revolutionary said, “‘That’s not how you do call to the radio station.
“Crazy artists is the “The thing about Chet’s and Roll Hall of Fame, Davis at his lowest point, hidden it,’ Miles said, ‘Oh, that’s how “Phil said, ‘He didn’t say
church of my choice,” said singing is it’s effortless, and I nephew Vince Wilburn Jr. away in his Upper West Side I’m going to do it!’ ” this. He said this,’ ” Mr.
Mr. Hawke, who years ago thought it would be a lot declared that the actor would apartment, suffering physical Although he had to study Cheadle recalled. “I said,
collaborated with director easier than it is,” said Mr. star in a family-produced and emotional pain, drug ad- trumpet to prepare, Mr. ‘Phil, call it how you want it.
Richard Linklater on a Baker Hawke, who confessed with a feature. diction and a loss of his cre- Cheadle played alto saxo- I’m not going to tell you how
project that never got pro- laugh that lessons carried It was wishful thinking. ative drive. phone in bands during his to sound like you!’ ”
HEARD & SCENE
A Glimpse Into New York Live Arts

There was a lot on the
program at the New York
Live Arts gala the other
night at the Museum of Jew-
ish Heritage.
Dinner was completely
vegetarian—a few pieces of
vegetable sushi and some
Greek lasagna with arti-
chokes, eggplant and chick-
peas—of which
someone at
our table man-
aged, very im-
pressively, to
eat only the
MARSHALL artichokes,
KAMAU WARE (2)
HEYMAN eggplant and

chickpeas,
leaving behind
every single piece of pasta.
The evening itself, how- Above, Hugh Dancy, Sarah Jones, Delroy Lindo and Bill T. Jones at
ever, was a veritable pu pu the New York Live Arts Gala. Below, a dance piece is performed.
platter of speeches and per-
formances. woman and an overambi-
In the end, it was maybe a tious millennial to show her
lot to take in, but for all in- veritable appreciation for
tents and purposes the fund- Mr. Jones and the work he
raiser, hosted by actor Hugh has done for New York Live
Dancy (whose wife, Claire Arts, which was founded in
Danes, is starring in the play 2011.
“Dry Powder” at the Public Writer Lawrence Wechsler
Theater) offered a real win- was given the “Live Ideas
dow into the goals and pro- Award,” in recognition of his
gramming of this perform- work curating the first two
ing-arts center on West 19th Live Ideas Festivals at New
Street for guests including York Live Arts. Meanwhile,
actor Delroy Lindo and gala Okwui Okpokwasii, another
co-chairs Sarah Arison, Slo- performer and choreogra-
bodan Randjelovic and Jon pher who currently holds the
Stryker. institution’s two-year resi-
The organization be- dency for midcareer artists,
stowed a lifetime achieve- spoke about how important
ment award on Dora Amelan, next Live Ideas festival at the organization has been to
the Paris-based mother-in- Live Arts. “Perhaps that’s the gestation of new content.
law of New York Live Arts why they picked me.” “They look hard for a bit
Artistic Director Bill T. Also on the docket: a of soil until what emerges is
Jones. Mr. Jones has created comic speech by playwright an improbable and wild
a dance piece about Ms. and actress Sarah Jones, thing,” Ms. Okpokwasii said.
Amelan entitled “Analogy/ perhaps best recognized for “They break ground and I
Dora: Tramontane,” of which her one-woman theater piece plant the seed.”
an extended, intimate and “Bridge and Tunnel.” A particularly hot ticket
floor-shaking excerpt was “There’s no relations, as auction item was a meal
performed between the vege- far as we know,” said Ms. with Mr. Dancy and Ms.
FOR TICKETS: (877) 469-9849 OR (800) 943-4327 (TTY) table sushi and the Greek la- Jones of her friend Mr. Danes. “Thank you for buy-
sagna. Jones. This was done in a ing me dinner,” Mr. Dancy
Other performances in- British accent in homage to told the crowd after that lot
cluded work by choreogra- Mr. Dancy, who was her sold.
pher Sonya Tayeh and a song tablemate at the party. Also, naturally, “Hamilton”
NOTICE: For the safety of every Guest, all persons specifically consent to and are subject to metal detector and physical
pat-down inspections prior to entry. Any item or property that could affect the safety of Yankee Stadium, its occupants or its by Mx. Justin Vivian Bond, “I do speak the Queen’s tickets, which are clearly one
property shall not be permitted into the Stadium. Any person that could affect the safety of the Stadium, its occupants or its
property shall be denied entry. who “was born a Christian English,” she said, “since I of the hotter items on the
All seat locations are subject to availability. Game time, opponent, date and team rosters and lineups, including the Yankees’ white boy in Maryland and am from Queens.” charity circuit at the mo-
roster and lineup, are subject to change. Game times listed as TBD are subject to determination by, among others, Major
League Baseball and its television partners. Purchasing a ticket to any promotional date does not guarantee that a Guest will I’m still one of those things.” Ms. Jones, who is at work ment and giving “Saturday
receive the designated giveaway item. All giveaway items and event dates are subject to cancellation or change without
further notice. Distribution of promotional items will only be to eligible Guests in attendance and only while supplies last.
“My mantra is ‘Keep it on a new multicharacter, Night Live” seats a run for
pretty, keep it shallow, keep one-woman show called their money. Two pairs of
it moving,’” said Mx. Bond, “Sell/Buy/Date,” played an house seats went for $6,000
who will be involved in the elderly donor, a homeless each.
GAIN INSIGHT
ON KEY BUSINESS
ISSUES THAT AFFECT
THE MIDDLE MARKET
MAY 23 – 24, 2016 WASHINGTON, D.C.
The Wall Street Journal, in commercial partnership with the

U.S. Chamber of Commerce will host the second annual Middle Market
Summit. Join our senior Journal editors as they discuss the unique
needs of middle market companies — which drive economic growth by
pumping at least $10 trillion into the economy annually.
Network with influential industry peers and hear urgent insights,

tailored to the executives running the middle market.
Topics to be discussed:
- The outlook for U.S. economic and business growth
- How to improve sales growth and talent retention
- Trends in lending, tax policy and regulation that will affect business
- How to manage succession or the sale of a company
- How the coming election will alter the business landscape
REQUEST AN INVITATION AT MIDMARKETSUMMIT.WSJ.COM

FOR FURTHER INFORMATION CONTACT MIDMARKET@WSJ.COM | 212.416.2300
In Commercial Partnership with Proudly Supported by
©2015 Dow Jones & Co., Inc. All rights reserved. 6C8512
SPORTS
Syndergaard: The Mets’ Ace Interrogator
When he’s not hurling fastballs, 6-foot-6 pitcher peppers teammates and coaches with questions in an effort to fine-tune his delivery and mechanics
BY ANDREW BEATON
PORT ST. LUCIE, Fla.—When bat-

ters step into the box to face Noah
Syndergaard, the Mets pitcher wants
them to be fearful for their lives. “I
try to be as intimidating as possi-
ble,” he says. “I try to use that as a
weapon of mine.”
Fear may be the only rational re-
sponse to seeing Syndergaard on the
rubber. His fastball can reach 100
miles per hour. His towering 6-foot-6
frame stands out even on a Mets
staff loaded with imposing fire-
ballers. And his first pitch in Game 3
of the World Series, a 98 mph mes-
sage so high and tight it sent Kansas
City’s Alcides Escobar tumbling to
the ground, caught everybody’s at-
tention.
“If they have a problem with me
throwing inside, then they can meet
me 60 feet, 6 inches away,” he said
after that start.
This is how Syndergaard wants to
be seen. His wild hair and maniacal
stare only make him an even more
frightening figure.
But off the mound, what makes
SEAN M. HAFFEY/GETTY IMAGES

Syndergaard one of baseball’s rising
stars is actually completely contrary
to the petrifying pitcher batters see
on the mound: He’s an inquisitive
student of his mechanics, badgering
people around him with questions to
learn as much as possible as he
strives for pitching perfection.
“Noah is always asking questions Noah Syndergaard’s inquisitive approach to his craft helped him to add a cutter to his repertoire late last season and quickly bring the pitch into game action.
about the game, about anything that
he can get better at,” Mets pitching fester and perhaps working on it and get it in one or two pitches,” gaard said that having pitched so in 2015, however, after he dominated
coach Dan Warthen said. “He’s a during a bullpen session before his Warthen said. late into the season last year helped during his early starts in the minors.
good question asker, and they’re next start, he went directly to Syndergaard’s quick learning has him retain the muscle memory for Not long after reaching the big
good questions.” Warthen. already paid off. Late last season, he his motion. Between Triple-A, the leagues, he became a linchpin of the
Different pitchers have varying “If I feel something out there, I’ll added a cutter to his repertoire and majors and the playoffs, Synder- Mets rotation, going 9-7 with a 3.24
routines during games. Some stew in save it in the back of my mind and brought it into game action shortly gaard threw 198 2/3 innings in 2015. ERA and 166 strikeouts in 150 in-
solitude, isolating themselves to when I get back in the dugout I’ll ask after learning it. “That application, All of this shows just how far nings. And now, even in a rotation
concentrate. Others may act no dif- Dan if it’s the same thing he’s been you just don’t see it very much espe- Syndergaard has come. During that includes a former Cy Young
ferent than if they weren’t pitching seeing,” Syndergaard said. “Once I cially in a young guy like that,” man- spring training last year, Mets cap- Award winner (Bartolo Colon) and
that day. Syndergaard spends his was able to recognize what the prob- ager Terry Collins said. tain David Wright scolded Synder- two of the game’s best hurlers in
time between innings consulting lem was I was able to go out there Collins noted that for bigger gaard for eating lunch in the club- Matt Harvey and Jacob deGrom,
Warthen about the smallest details and fix it.” pitchers like Syndergaard, it’s easier house during a game instead of Syndergaard has people wondering
in his delivery. This latter part is what impresses for their mechanics to get out of sitting on the bench and watching. whether he may be the best of all of
During one start this spring, Syn- Warthen the most. It isn’t just that sync because there are so many Relief pitcher Bobby Parnell then them.
dergaard noticed something was off Syndergaard is relentlessly curious moving parts. Although there is a took Syndergaard’s food and threw it “He asks a lot of questions, he
with his leg kick and that he wasn’t in his effort to fine-tune his delivery. natural inclination to worry about in the trash. asks the right questions and he got
getting his body fully turned, pre- It’s how quickly he can receive feed- overusing young pitchers—especially That moment followed a 2014 better,” Collins said. “There’s always
venting him from throwing his back and put that into game action. on a staff where every young pitcher season in which many thought he a debate about who’s going to be the
breaking pitches with “conviction” “It’s rare for somebody his age to other than Syndergaard has under- might reach the majors for the first best, and this kid’s got a chance to
he said. Instead of letting the issue know where to fix it, how to fix it gone Tommy John surgery—Synder- time, but the call never came. It did be the guy.”
Heard On Full Yankee Lineup Finally Plays Together

BY JARED DIAMOND
The Field TAMPA, Fla.—The Yankees ar-
rived here in Florida last month with
one mission: to keep their collection
of aging, injury-prone stars healthy
Refsnyder Is Demoted; until opening day. On Sunday, with
Bench Spot Still Open the start of the regular season just a
Rob Refsnyder very well might week away, they caught a glimpse of
carve out a successful major-league the possibilities if they manage to
career as a utility player someday. accomplish that goal.
It took until the 25th Grapefruit
(T-B) CHRIS O’MEARA/ASSOCIATED PRESS; RAJ MEHTA/USA TODAY SPORTS/REUTERS
But for now, his defense needs

some work. League game, but for the first time
The Yankees demoted Refsnyder, in spring training, the Yankees sent
a 25-year-old prospect and a fan fa- out all nine players that they ex-
vorite, to Triple-A on Sunday, ending pect—or, more accurately, hope—
his bid to earn a spot on the open- will comprise their everyday lineup
ing-day roster. A college outfielder in 2016.
and a minor-league second base- Granted, a lot can still change be-
man, Refsnyder spent spring train- tween now and next Monday, espe-
ing attempting to learn to play third cially for a team that employs three
base, but he struggled throughout integral hitters over the age of 35.
his audition. But manager Joe Girardi recognizes
On both Friday and Saturday, the significance of putting the entire
Refsnyder took ground balls off his gang on the field together this close
face. to the end of camp—and he doesn’t
Manager Joe Girardi said Refsny- want to jinx anything.
der will see action in the minors at “This is the week you want your
third base, in the hopes that he can guys playing,” said Girardi, knocking
eventually help the Yankees in mul- on the wooden table in his office as
tiple spots. Refsnyder went 13- he spoke. “If you’re going to miss
for-43 (.302) in a brief cameo in some time, you don’t want to miss it
New York in 2015, giving the Yan- this week. To have all nine of them
kees a glimpse of his offensive po- out there today was nice.”
tential. Outfielder Brett Gardner sat out Above, Jacoby Ellsbury returned to
Now he just needs to find a posi- for the first two weeks of March as the lineup on Sunday after being hit
tion. he recovered from a bone bruise in on the wrist by a pitch earlier this
“Our feeling is we want him to his left wrist that he suffered in the month. Right, Brett Gardner sat out
go play more at third,” Girardi said. American League wild-card game the first two weeks of March as he
“It’s tough. We thought he made last October. Three days after Gard- recovered from a wrist injury.
progress while he was here. We’re ner’s debut, the Yankees received a
just asking him to make more.” legitimate scare: Atlanta Braves Anybody who didn’t pay attention
With Refsnyder gone, two op- right-hander Julio Teheran uncorked to the Yankees until the final weeks
tions remain in camp for the the a fastball that drilled outfielder Ja- of 2015 likely came away with an in-
Yankees’ backup infield role: Pete coby Ellsbury on the right wrist, complete picture of their offensive
Kozma and Ronald Torreyes. sending visions of a broken bone and capabilities.
Kozma, 27, has hit just .222 in a prolonged stint on the disabled list Designated hitter Alex Rodriguez
parts of five seasons with the St. through the organization. struggled throughout September, a
Louis Cardinals, but he is known as But it appears that the Yankees disappointing conclusion to a resur-
skilled shortstop defensively. have survived the worst. X-rays gent season. First baseman Mark
Torreyes, 23, has a .298 batting showed no structural damage, and Teixeira spent the last month of the
average in six minor-league seasons after about a week away, Ellsbury season on the disabled list, sidelined
and has gone 10-for-32 in Grapefruit returned Sunday in the Yankees’ 5-2 with a fracture in his leg. Ellsbury
League play. loss to the Minnesota Twins at and Gardner looked like shells of
—Jared Diamond George M. Steinbrenner Field. Ells- themselves, combining to go 44 for
bury went 0-for-3 at the plate off their last 220—a miserable .200 bat-
former Yankee right-hander Phil ting average. It all culminated with
Hughes and played six innings in the Yankees mustering just three Even more encouraging: Girardi Chase Headley posted a career-low
center field, even making a diving hits in the AL wild-card game believes this season’s lineup can out- .324 on-base percentage last year,
TOMASSO DEROSA/ASSOCIATED PRESS
catch. against the Houston Astros, a futile perform last season’s. and the Yankees view him as a
Most important, he reported effort that perhaps serves as the “I think our lineup’s deeper,” he bounce-back candidate. Shortstop
nothing alarming afterward—the lasting image of the year. said. “We scored runs last year, and Didi Gregorius hit .294 in the second
only result that matters at this Despite all of that, however, the I think we’re going to do it again.” half of 2015, demonstrating his po-
point. Yankees still finished second in On paper, Girardi’s prediction cer- tential.
“There’s still bruising and a little baseball in runs scored. They ranked tainly seems possible. Starlin Castro, Ultimately, however, it will de-
swelling in there,” said Ellsbury, who fourth in the majors and home runs whom the Yankees acquired in a pend on health, and the Yankees will
will play again Monday night against and slugging percentage, propelling trade with the Chicago Cubs in De- hold their breath all season long.
the Detroit Tigers. “But I feel like I them into the playoffs for the first cember, represents a significant up- But on Sunday, at least for one after-
can do everything I need to do.” time since 2012. grade at second base. Third baseman noon, they exhaled.
MEDIA B4 | WSJ.D B5 | CROSSWORD B5 | SPORTS B6
BUSINESS & TECH.

Microsoft: One Office Workers NFL Redefines
App Fits All Get the Vote ‘Catch Rule’
THE WEEK AHEAD | B2 MANAGING | B5 SPORTS | B6
© 2016 Dow Jones & Company. All Rights Reserved. * * THE WALL STREET JOURNAL. Monday, March 28, 2016 | B1
Sports-TV Boom Under Pressure Avon Near

Comcast-Fox dispute ished on the assumption that
Deal With
about Yankees channel
is sign of tensions over
Pricey TV
Comcast and 21st Century Fox
passionate fans simply can’t
live without watching their
teams on TV. That logic led big
Activist
Investors
each back some of the most
expensive regional sports media companies to collec-
rise in sports-TV costs networks in the country. tively place long-term bets
over the past 15 years or so
Average cost to pay-TV provider
BY JOE FLINT per subscriber per month
worth over $150 billion on BY DANA CIMILLUCA
AND MATTHEW FUTTERMAN rights to telecast games, ac- AND DAVID BENOIT
YES Network (Yankees Channel)
cording to Guggenheim Securi-
21st Century Fox
America’s sports-rights bo- $5.36 ties. That gave rise to a host of Avon Products Inc. is near-
nanza is showing signs of age. sports channels that now ac- ing the settlement of a skir-
RICHARD B. LEVINE//NEWSCOM/ZUMA PRESS
SportsNet LA
Since November, YES, the Los Angeles Dodgers count for 35% of the typical mish with activist investors
channel that airs New York $4.59 monthly cable bill, according that would enable the embat-
Yankees games, has been Fox Sports Detroit to research firm SNL Kagan. tled beauty-products company
blacked out on Comcast Corp. 21st Century Fox More recently, however, to sidestep a proxy fight.
as the cable giant and the net- $4.25 some big pay-TV distributors Avon plans to announce as
work’s parent, 21st Century New England Sports Network are beginning to push back ag- early as Monday that it has
Comcast
Fox, battle over terms of pay- $4.12
gressively in fee negotiations, reached an agreement with
ment. SportsNet Philadelphia concerned viewers are getting Barington Capital Group LP
In the off-season, it wasn’t Comcast fed up with sports costs and and NuOrion Partners AG
a huge controversy. But as $4.12 could “cut the cord” in greater that will allow them to ap-
opening day—April 4 for the Source: SNL Kagan numbers. They are also mak- prove a new independent di-
Yankees—fast approaches, the Fox has released anti-Comcast ads on billboards and in papers. THE WALL STREET JOURNAL. ing a bet that consumers don’t rector for the company’s
stakes are rising and acrimony care as much as teams and board, according to people fa-
between the sides is mounting, most high-profile example of Los Angeles and Houston, are ered industry profits, filled the networks think. miliar with the matter.
spilling over into the broader how pay-TV providers are dig- testing the limits of the coffers of teams and financed “I believe that finally sports As part of the expected
relationship between the two ging in their heels over rising sports-rights boom of recent huge salaries for star players. TV is in crisis mode,” said agreement, the Barington-
media companies. sports-TV costs. The standoffs, decades and are threatening a Until recently, the business Jimmy Schaeffler, head of me- NuOrion group, which owns
The fight is the latest and which have hit cities including money stream that has pow- of selling sports rights flour- Please see CABLE page B4 more than 3% of Avon,
wouldn’t mount a fight for
board seats at the May 26 an-
Massive Robots Keep Docks Shipshape

nual meeting.
The agreement comes as a
deadline for the investors to
launch such a fight arrived,
and after they had privately
submitted their nominees, the
people added.
Avon also plans to appoint
former FedEx Corp. executive
Cathy Ross to its board, a
move the investors endorse.
After the appointment of Ms.
Ross and the other director,
Avon’s board would have 11
members.
11
Directors Avon would have
after the appointment of a
former FedEx executive and a
director approved by the group.
The agreement will give

Avon some peace following a
tumultuous several months for
the company. After years of
declining revenue and a bat-
PATRICK T. FALLON FOR THE WALL STREET JOURNAL
tered stock price, the roughly

130-year-old company this
month sold its North American
operations to turnaround spe-
cialist Cerberus Capital Man-
agement LP.
Cerberus agreed to inject
$435 million into Avon and in-
vest $170 million in the North
American business. Two weeks
ago, the company said it
would cut about 2,500 jobs, or
some 7% of its workforce, and
Automated machinery is being used to unload container ships and move cargo containers on the docks in the TraPac terminal at the Port of Los Angeles. move its corporate headquar-
ters to the U.K.
BY ERICA E. PHILLIPS ting the boxes down in precise spots. Many in the industry believe automa- productivity by as much as 30%. Barington and NuOrion,
The tightly designed dance at TraPac tion, which boosts terminal productivity “We have to do it for productivity which unveiled their Avon
At one of the busiest shipping termi- LLC’s Los Angeles terminal offers a win- and reliability while cutting labor costs, purposes, to stay relevant and to be able campaign in December as the
nals in the U.S., more than two dozen gi- dow on how global trade will move in is critical to the ability of ports to cope to service these large ships,” said Peter Cerberus deal was coming to-
ant red robots wheeled cargo containers the near future: using highly auto- with the surging trade volumes and the Stone, a member of TraPac’s board. gether, had been urging
along the docks on a recent morning, mated systems and machinery, with huge megaships that are beginning to ar- Yet the TraPac site is one of only changes in the company’s
handing the boxes off to another set of minimal human intervention, to handle rive in the U.S. Analysts estimate four cargo terminals in the U.S. using board and leadership aimed at
androids gliding along long rows of the flood of goods that new free-trade the technology can reduce the amount of the technology. That is fewer auto- spurring a turnaround. The ac-
stacked containers before smoothly set- agreements will push to the docks. time ships spend in port and improve Please see ROBOTS page B2 Please see AVON page B2
Apple Is Missing a Golden Opportunity Superheroes Rescue Warner

A
pple Inc. fired a broad- App Store.
side at what remains of As its competitors, in-
the personal-computer cluding Google Inc. and Mi-
industry last week, when mar- crosoft Corp., race to create
keting chief Phil Schiller hybrids of tablets and PCs
claimed the company’s new that can function as either,
iPad Pro is Apple is missing a golden
CLAY ENOS/WARNER BROS. PICTURES/ASSOCIATED PRESS
aimed at opportunity to dominate the

anyone still touch-based world it pio-
using an old neered with the iPhone.
PC. It is a Sales of PCs are declining,
wonderful but they are still a big mar-
notion— ket, with roughly 280 million
KEYWORDS imagine sold last year, most to busi-
CHRISTOPHER iPads rain- nesses. But the iPad Pro is
MIMS ing down on hardly a laptop replacement.
the users of It has flaws that Apple exec-
600 million utives once argued are deal
PCs more than five years old. breakers for doing “real
MARCIO JOSE SANCHEZ/ASSOCIATED PRESS
Still, it isn’t clear Apple’s work” on a computer.

iPad Pro can deliver on that In January 2014, when
promise—at least not yet. competitors were introduc-
For one, it is missing some ing laptops with touch
tools essential to PC-like screens, Apple’s head of soft- Warner Bros. has emerged gest global opening in box-
work, most notably a mouse ware engineering, Craig Fed- as the victor in the battle be- office history and ending a
or a trackpad. Moreover, Ap- erighi, told MacWorld that tween Batman and Superman. prolonged slump for the Time
ple diminishes the tablets’ “it’s obvious and easy The superhero team-up movie Warner Inc. studio. That tally
utility by making it harder enough to slap a touch ‘Batman v Superman: Dawn of includes $170.1 million from
than it should be for cre- screen on a piece of hard- Justice’ has grossed an esti- the U.S. and Canada, the sixth-
ators of workplace software ware, but is that a good ex- mated $424.1 million world- biggest domestic opening ever.
Apple executives have high expectations for the new iPad Pro. to make money through its Please see MIMS page B2 wide, marking the fourth-big- Article on Page B4.
B2 | Monday, March 28, 2016 * *** THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS NEWS

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Alibaba Group Holding
..................................... C6
Al Jazeera...................B3
FedEx................B1,B3,B5
Forrester Research.....B2
G
Garena Online.............B3
Orient Overseas
O
1Sale.com....................B5
(International)..........B2
Microsoft Makes ‘Universal’ Bet
Alphabet......................B2 P
BY JAY GREENE to easily build cross-device
Gartner........................B2
Amazon.com ............... B5 General Motors...........B3 Pacific Exploration &
programs.
A.P. Moeller-Maersk...B2 Gilead Sciences...........C6 Production ................ A2 When 5,000 software de- Microsoft’s Windows 8,
Apple...........................B2 Goodrich Petroleum....C3 PicsArt.........................B2 velopers descend on San released in 2012, included
Approach Resources...C3 Google .............. A1,A2,C6 PNC Financial Services
AQR Capital
Francisco’s Moscone Center software known as Windows
Gradifi........................R12 Group.........................C2
Management.............C6 PricewaterhouseCoopers
for Microsoft Corp.’s annual Runtime, a UWP predecessor
Green Flooring Services
Ascensus.....................R6 .....................................R4 ...................................R12 Build conference on Wednes- that helped developers cre-
Avon Products ............ B1 Q day, they will hear a familiar ate programs for smart-
H
B Qualcomm ................... C6 promise from the company phones and tablets, as well
HSBC............................C6
Bank of America ... A2,C2 HTC..............................C6 R brass, backed up by the tech as for laptops and desktops.
Barington Capital Group Hulu.............................B2 giant’s latest technology. Such technologies haven’t
.....................................B1 RBN Energy.................C1
BlackRock....................C6 I Readdle........................B2 Microsoft will press its always fulfilled their promise.
Blackstone Group........C6 InContext Solutions....B5 Royal Dutch Shell.......A1 case that developers can Games developed for a console
BP..............................A12 J S write an appli- with a controller that has but-
C J.P. Morgan Chase......C2 SaveUp......................R11 THE WEEK cation once, tons, triggers and thumbsticks,
Social Tables...............B5
Capital One Bank........A2 L Sony.............................C6 AHEAD with the com- for example, can be less fun to
Chevron.....................A12 LEAF College Savings R6 Standard Chartered .... C6 pany ensuring play on a PC equipped with a
ChowNow..................R12
Citigroup.................C3,C6 M T it can work on mouse, or a mobile phone
Comcast.................B1,B4 Magic Leap..................C6 Time Warner...............B4 any Windows device, said with a touch screen. And apps
Convoy.........................B5 McKinsey.....................B5 Toronto-Dominion Bank people familiar with the developed for PCs, such as
CoreLogic.....................C1 MediaMath..................B5 ..................................... C2 company’s plans. Developers personal-finance programs, of-
Credit Suisse Group....C3 Merck...........................C6 TraPac..........................B1
Microsoft................B2,C6 Twitter ........................ B4 can write programs for the ten are of little use on a
D 21st Century Fox........B1 Windows 10 operating sys- smartphone or game console.
Morgan Stanley..........R4
Diamondback Energy..C3
Moritt Hock & Hamroff U tem and have them run on Microsoft has said it be-
Dillard's.......................B2
.....................................R6 Uber Technologies ...... B5 PCs, tablets, smartphones, lieves UWP will be more suc-
E N United Parcel Service.B5 game consoles and, eventu- cessful because Windows 10,
eBay.............................B5 United Technologies ... C2
Emerald Oil..................C3
Nasdaq OMX Group....A2 ally, Microsoft’s HoloLens unlike earlier Windows ver-
New York Yankees......B1 W augmented-reality headgear. sions, is designed to run on
ENI...............................A1
Nokia...........................B2 Walt Disney................B4
Exxon Mobil................A1
North Fork Smoked Fish Wells Fargo.................C2
The key is a technology a variety of Microsoft de-
F .....................................R9 Whole Foods Market..B5 dubbed Universal Windows vices.
Facebook...........B4,B5,C6 NuOrion Partners ....... B1 W.L. Gore....................B5 Platform, or UWP, software San Francisco-based
included in Windows 10, PicsArt Inc., which makes a
INDEX TO PEOPLE which was launched in July.

It allows developers to
achieve a consistent look and
photo-editing app of the
same name, tried Microsoft’s
earlier cross-device technol-
A Goldstein, Jeff............B4 Petrou, Karen Shaw....C6 feel for applications on any ogy but found it still needed
Adam, André...............A8 H Phillips, Guy................B2 device that runs the operat- to maintain multiple ver-
al-Bakraoui, Khalid.....A8 Hall, Martin.................R4 R ing system. sions of the app separately.
Autet, Cedric...............R9 Harnett, Hasan...........A4 Reish, Fred..................C2 The online-video service Using UWP, the company
B I-J-K Roberts, Jason............C2 Hulu, for example, offered says it has been able to “de-
Bertelli, Luca .............. A1 Rosica, Greg................R4 separate apps for Windows velop one package that
JOHN W. TOMAC
Icahn, Carl ................... C6
Bezos, Jeff..................B5 Jones, Christopher......C2
Ross, Cathy.................B1 PC and Windows Phone de- works across all platforms.
Biagi, Greta LaMountain
Kabiller, David.............C6 S vices before rolling out a Because of that it’s easier for
..................................... C3
Kantrowitz, Mark........C3 Siren, Mackenzie ........ B5 single UWP app last month. us to build and maintain.”
Blau, Brian .................. C6 Sisson, Mark...............B2 UWP is Microsoft’s an- PicsArt counts more than
Karlin, Phil..................R9
Boddy, Vicki.................C2 Smith, Austin..............C3 swer to a troubling trend for 65 million monthly active us-
Khater, Sam................C1
Bortunk, Shmuli..........B5 Sorbara, Gabriele........C3 the company. The focus of Phone. But that new strategy soft has stepped up efforts ers on iOS, Android and Win-
Kinane, Mike...............C2
Braziel, Rusty..............C1 Steadly, David.............R4 app development has shifted hasn’t been any more suc- to develop apps that run on dows Phone devices. Al-
Kirchdorfer, Stephen .. R4
Bresnahan, Tim...........R9
Klein, David...............R12 Stone, Peter................B1 away from personal comput- cessful. Windows Phone was the more popular iOS and though its Windows Phone
Burns, Judith...............C6
Koskinen, John............R4 T ers, where the popularity of installed on just 1.1% of all Android devices. audience is the smallest,
C Kosnitzky, Michael ..... R9 Microsoft’s Windows PC op- smartphones sold world- Microsoft is betting that UWP appears to be helping it
Treadgold, Steve.........R4
Caddell, Jack ............... C3 erating system gives the wide in the fourth quarter of developers already creating find new users on laptops
L Tsujihara, Kevin..........B4
Campbell, Lesley.........C3 company a strong position, 2015, according to Gartner programs for the 200 million and desktops that run Win-
Larsen, Roy ................. C1 Tufano, Peter............R11
Cole, Shawn..............R11 to more widely used mobile Inc. PCs that run Windows 10 dows 10. Since releasing the
Cooney, Bernard..........C3 Lengyel, Suzanne........R4 V
devices that run Apple Inc.’s “The sins of the past con- will take advantage of UWP UWP version of the app in
Craig, Carla..................C3 M Veivo, Harri.................A8
iOS and Alphabet Inc.’s An- tinue to haunt them,” For- to allow apps to run on December, PicsArt has added
D Martin, John ............... B2 W
droid operating systems. rester Research Inc. analyst other devices. That, in turn, “hundreds of thousands” of
Diamonte, Robin.........C2 Millikin, Mike..............B3 Waldert, Bing..............C2 Microsoft’s smartphone J.P. Gownder said. would bolster Microsoft’s po- Windows users each month,
Dietzler, Lori...............R9 Mitarotonda, James A. White, Mary Jo...........C6 efforts date back to 2003, Microsoft scaled back its sition on the variety of de- said Wilson Kriegel, the com-
.....................................B2 Wierbicki, Diana ......... R9
F when the company launched mobile-device business in vices where the company pany’s general manager and
Moss, Marisa .............. C3 Wiswall, Matthew....R11
Fishman, Rocky...........C3 Windows Mobile, an operat- July, writing down about currently isn’t as strong. chief business development
Flacke, Timothy........R11 O Wong, Michael............C2
ing system for mobile 80% of the $9.4 billion it “This is the best option officer.
Foregger, Rob..............C2 Oguz, Madline.............A8 Y phones aimed at business us- paid for Nokia’s handset op- Microsoft could have come “If Microsoft has hun-
G Olvera Jr, Bobby.........B2 Yu, Jea.........................C3 ers that failed to catch on. erations in 2013 and cutting up with,” Mr. Gownder said. dreds of millions of [Win-
Omidyar, Pierre...........B5 Z Microsoft in 2010 altered the 7,800 workers, mostly in its Microsoft and other com- dows 10] users in the future,
Galbato, Chan ............. B2
Gass, Jay.....................B3 P Zafar, Basit...............R11 strategy to target consumers mobile-phone operations, at panies for years have prom- we view that as an opportu-
Ginsberg, Joshua........R9 Patsou, Anna..............A8 Zhadanov, Denys ........ B2 with the renamed Windows the time. Since then, Micro- ised programmers the ability nity,” Mr. Kriegel said.
AVON about $1.86 billion.

In the transaction with Cer-
berus, the investment firm got
to name three directors. That
MIMS “Whenever my friends
say, ‘Denys, we want to make
money on the App store,’ I
spend a lot of time trying to
Pleco Software Inc., which
sells Chinese dictionary apps
on the App Store.
Apple’s App Store offers
co-founder and CEO of Plan-
Grid. She is agnostic on the
device; PlanGrid supports just
about everything flat with a
Continued from the prior page included the appointment of Continued from the prior page tell them not to do this,” some advantages for soft- touch screen, from iPads and
tivists called for $500 million Chan Galbato, chief executive perience? We believe, no.” says Denys Zhadanov, head ware makers, particularly big Android devices to Micro-
to $700 million in cost cuts— of a Cerberus affiliate, as non- Eighteen months later, of marketing for Readdle ones like Microsoft, which soft’s Surface tablets.
above the $350 million the executive chairman. Avon and however, Apple offered Inc., a Ukraine-based com- offer free apps that comple- It is hard to remember that
company had targeted— Cerberus said then that they something remarkably like pany that has had best-sell- ment software sold else- it was ever otherwise, but our
largely by simplifying Avon’s would jointly select two addi- what Mr. Federighi had criti- ing productivity apps on the where by subscription. In- work isn’t spreadsheets, doc-
management structure and tional independent directors. cized—a touch-screen tablet App Store since the store app purchases help game uments and presentations.
freeing global operations to The Barington-NuOrion group with a keyboard. In its cur- went live in 2008. makers sell extras and up- They are merely tools for
make decisions on their own. has the right to approve the rent state, the iPad Pro has Mr. Zhadanov says Apple grades, though they have to completing that work. As de-
The activists also wanted appointment of one of those. received mixed reviews. The makes it hard for developers give Apple 30% of their app vices and interfaces evolve,
the company to focus on inter- Journal’s Joanna Stern la- to connect directly with us- store revenue. we can find new and more di-
national markets and to ex- mented the lack of a track- ers, or to encourage them to None of the challenges fac- rect ways to accomplish these
pand its presence in bricks-
The deal will give pad, which highlights the buy upgrades. This means ing the iPad are insurmount- tasks, from live dashboards
and-mortar stores and online, Avon some peace oddity of using a tablet to app makers can’t reach users able. Indeed, the question of that replace presentations to
and to renew its dedication to replace a PC. through mailing lists, critical whether an iPad should re- photos, sketches and visual
beauty products, rather than
after a tumultuous Touch interfaces can be to generating repeat sales place a PC may be a red her- communications in place of
items like decorations and several months. intuitive and sophisticated, and marketing other soft- ring. Tablet computers’ poten- things we laboriously de-
home goods. but mice and trackpads per- ware and services. tial will only be realized when scribe with words.
In recent years, as consum- sist because having to touch As a result, apps that Re- developers, users and Apple it- That is why I still think tab-
ers have turned away from the Based in New York and run your screen for even the addle first released in 2009 self combine hardware and lets—and the iPad, if Apple is
direct sales for which the com- by James A. Mitarotonda, Bar- most elementary actions, generate no additional reve- software to let us do our work lucky—will ultimately replace
pany is famous and moved to- ington has had success with like selecting text, can be nue from the company’s in a totally different way. nearly all PCs. But rhetoric
ward the Internet, and as the retail companies including both clunky and tiresome. most loyal users. Readdle To understand what this about an iPad Pro as a drop-in
cosmetics industry has be- Jones Group Inc. and Dillard’s There is a second reason says the lifetime value of will look like, take a work- replacement for a five-year old
come more competitive, Avon Inc. NuOrion was formed in why iPad sales fell 23% in those customers can be as place that never had PCs—the PC—now just one part of a
stock has plunged. 2014 to invest in troubled the fiscal year ended Sep- little as $2. construction site. PlanGrid, much larger network of habits,
The shares have fallen over companies. Its investments are tember 2015, from their peak “Most of what’s wrong which replaces paper blue- software, infrastructure and
50% in the past 12 months, de- funded by wealthy families. It two years earlier: Apple has with app distribution feels prints with an app that dis- dependencies—is folly.
spite a strong rally since Janu- was founded by Guy Phillips, put onerous constraints on like the result of bad deci- plays them on iPads, is a good
ary. Avon shares closed 2.3% former head of the global con- the makers of software sions made five years ago example. Free of workflows Follow Christopher Mims on
lower at $4.28 Thursday. Its sumer and retail investment- whose apps are key to the that are now taken as gospel,” shaped by a PC, tablets are a Twitter @Mims or write to
market value now stands at banking unit of UBS Group AG. success of the iPhone. says Michael Love, founder of natural fit, says Tracy Young, christopher.mims@wsj.com.
ROBOTS Experts in port-terminal in-

frastructure and operations say
the U.S. has been slow to adopt
the technology because of years
from the investors’ standpoint.”
Ports elsewhere have seen
the investment pay off. APM
Terminals, part of the A.P.
will cost roughly $1 billion in
public and private funds once
the entire terminal is auto-
mated, and executives say they
Continued from the prior page of resistance by longshore labor Møller-Mærsk A/S group, said aren’t sure when the investment
mated terminals than there unions. Some studies have its automated terminal in Rot- will pay off. “It’s very much a
are at the Port of Rotterdam shown robotic cargo handling terdam uses about half the labor moving goal post,” said board
PATRICK T. FALLON FOR THE WALL STREET JOURNAL
in the Netherlands alone. can reduce the need for long- needed at its conventional ter- member Mr. Stone. “It takes a
Supporters of robotic cargo shore labor by as much as 50%. minal at the same port. long time to realize the return.”
handling are getting a new In 2002, the issue came to a In the U.S., the history of Still, some workers find
showcase this month with the head as West Coast port em- automation is choppy. APM benefits as the technology
phased-in opening of an auto- ployers locked out workers Terminals developed the first takes hold. On a recent after-
mated terminal at the Port of during bitter contract talks, semi-automated terminal in noon, 57-year-old crane opera-
Long Beach, next door to the shutting down the Pacific North America at a cost of tor Jesse Martinez lowered
Los Angeles port. At a cost of ports for 11 days. $450 million in Portsmouth, shipping containers the last
over $1 billion to complete and The West Coast’s Interna- Va., and opened it in 2007. Af- few feet of their journey on to
the capacity to handle 3.3 mil- tional Longshore and Ware- ter poor returns following the truck trailers, using a com-
lion 20-foot container units— house Union has since agreed 2008-2009 recession, APM puter from an air-conditioned
nearly half of the entire port’s to allow for automation tech- leased the facility back to the office building at TraPac.
volume last year—the Orient nology in its contract, which port authority and eventually It was far different from his
Overseas (International) Ltd. the East Coast’s International Automation is aimed at boosting terminal productivity and reliability. sold it in 2014 to a private in- old work sitting in the crane for
site is a big bet on the future. Longshoremen’s Association frastructure-investment group. hours, navigating the machinery
A successful operation in contract also includes. But both tomated terminals, to “ensure millions of dollars typically re- The TraPac terminal in Los with heavy gears. “The bouncing
Long Beach could persuade labor unions still fight fiercely there’s a future for workers.” quired for automated machin- Angeles faced long delays in en- around and leaning over is the
other U.S. ports to follow, said over the steps along the way to The unions’ efforts, to keep ery and technology. vironmental permitting, as well part I don’t miss,” he said.
Mark Sisson, a senior port plan- put the technology into use. as many longshore jobs as pos- In the U.S., “You may not be as a ballooning budget. TraPac
ner with infrastructure-develop- The president of the Inter- sible on automated operations, able to achieve the cost savings ran into labor-related setbacks MORE ON MOBILE
ment group Aecom. “The indus- national Longshore and Ware- can lead to lengthy negotia- as immediately as you do in in 2014 when ILWU members
try at a global level is rushing house Union’s Local 13 in Los tions over which jobs require other countries,” said John Mar- walked off the job for more than Get the latest
hard into this technology,” he
said. “That trend is only going
to go in one direction. It’s just a
Angeles, Bobby Olvera Jr., said
the union has been working to
obtain “minimum manning
humans at the helm. Adding
jobs raises the final operating
costs, making it tougher to get
tin of maritime consulting firm
Martin Associates in Lancaster,
Pa. “Hence, the decision to au-
a month after several machinery
collisions occurred in the auto-
mated area of the terminal.
WSJ
.COM
news on supply-
chain issues via a
daily newsletter,
question of timing.” standards” and training on au- a return on the hundreds of tomate is much more stressful Overall, TraPac’s automation wsj.com/logistics
THE WALL STREET JOURNAL. Monday, March 28, 2016 | B3
BUSINESS NEWS
GM’s Ex-Lawyers to Avoid Probes Al Jazeera

Says It
Michigan authorities
won't discipline
attorneys over
Will Cut
ignition-switch defect 500 Jobs
BY MIKE SPECTOR BY NICOLAS PARASIE
General Motors Co. law- DUBAI—Qatari broadcaster

yers who lost their jobs over Al Jazeera said it would cut
the auto maker’s ignition- 500 jobs, or about 10% of its
switch crisis will avoid relin- workforce, weeks after it an-
quishing their law licenses. nounced it would close its
Michigan authorities in American cable channel.
February and March denied The majority of the layoffs
BRENDAN SMIALOWSKI/AGENCE FRANCE-PRESSE/GETTY IMAGES
requests from an ignition- will hit staffers at its head-

switch victim’s father to inves- quarters in the Qatar capital
tigate a half-dozen former GM of Doha, and are a result of
employees, according to docu- the changing global media
ments reviewed by The Wall landscape, acting general di-
Street Journal. rector Mostefa Souag said in a
Jay Gass, a Tennessee re- statement on Sunday.
tiree, asked Michigan’s Attor- The state-backed media
ney Grievance Commission to group employs some 4,500
launch the probes and sug- people globally. It was unclear
gested that the former em- which jobs had been cut, and
ployees be stripped of their whether the layoffs would af-
state law licenses, the docu- fect its newsroom.
ments show. Mr. Gass’s 27- The announcement comes
year-old daughter died in 2014 as oil-rich Persian Gulf coun-
in a car with the defective tries including Qatar, Saudi
switch after GM failed for GM’s ex-top lawyer, Mike Millikin, and chief Mary Barra during a Senate committee hearing in 2014 that focused on safety recalls. Arabia and the United Arab
more than a decade to recall Emirates are cutting costs
vehicles with the safety defect, commissioned report by former state. Florida lawyers, for in- ferring to GM lawyers. Mr. Kemp told the Michigan and launching economic
now linked to 124 deaths. U.S. attorney Anton Valukas. stance, must breach confiden- The Gass family accepted commission that he pushed the changes, including the
The back-and-forth is part GM paid a $900 million tiality to warn consumers at over $1 million from a GM ignition-switch issue with em- U.A.E.’s reduction of energy
of the fallout from GM’s igni- penalty in September to settle risk of death or bodily harm. compensation fund supervised ployees, didn’t improperly con- subsidies, to cope with the
tion-switch crisis that contin- a Justice Department criminal But GM lawyers weren’t re- by outside lawyer Kenneth ceal information and wasn’t re- impact of a sharp drop in oil
ues to reverberate, even after probe and admitted to mis- quired to do so under Michi- Feinberg, part of the $595 mil- quired to divulge confidential revenue.
the Detroit auto maker leading regulators and con- gan’s professional-conduct lion the company offered vic- information. His response ex- “While our decision is con-
reached settlements with the sumers about the switch. But rules, said Stephen Gillers, a tims. But Mr. Gass expressed pressed condolences to the Gass sistent with those being made
U.S. Justice Department, no individuals were charged. legal ethics professor at New frustration that former GM family and added that the slow across the media industry
shareholders and thousands of None of the lawyers Mr. Gass York University’s law school. employees lost only their jobs. pace of GM’s investigation of world-wide, it was difficult to
consumers totaling more than cited has been accused of Michigan and most other His daughter died March 18, the switch had frustrated him. make nonetheless,” Mr. Souag
$2 billion. Jurors will deliber- wrongdoing by the Michigan states “leave it up to the law- 2014, when her 2006 Saturn Mr. Kemp also said he disagreed said.
ate as soon as this week in an commission or other agencies. yer’s conscience,” Mr. Gillers Ion with the defective switch with many aspects of the Valu- Despite the layoffs, the
ignition-switch trial under way The Michigan commission, a said. Lawyers also aren’t likely crashed into a tractor trailer kas report. A lawyer for Mr. company said it hoped to en-
in a New York federal court, state supreme court arm that to face discipline by state au- on a Virginia interstate high- Kemp declined to comment. sure its “long-term competi-
and GM faces other probes polices lawyer misconduct, re- thorities for failing to alert se- way. Mr. Gass had received a “GM’s legal team has under- tiveness and reach.” It has a
two years after recalling jected his requests, saying the nior executives absent com- recall notice days earlier. gone profound changes,” a com- staff presence in some 70 cit-
roughly 2.6 million older vehi- matters were litigated and re- plaints from GM, he said. The lawyers Mr. Gass refer- pany spokesman said. Mr. Mil- ies world-wide.
cles with the defective part. solved. “The tragedies that re- Mr. Valukas found a longtime enced included William Kemp, likin in July 2014 told Launched in 1996, Al
GM’s safety crisis sparked sulted from various individuals pattern of incompetence and ne- who worked at GM for decades lawmakers he directed lawyers Jazeera has grown into one of
debate over lawyers’ obligations employed by General Motors glect but no intentional coverup and sat on a committee decid- to alert him to any future poten- the world’s largest news or-
to sound alarms about the de- are not subject to review by in GM’s failures with the switch. ing whether to settle legal tial settlements involving death ganizations and is an influen-
fective switches, which can slip this agency,” a commission Chief Executive Mary Barra in cases. Mr. Kemp didn’t alert or serious injury. His successor, tial voice in the Arab world.
from the run position and dis- staffer wrote in separate letters June 2014 said employees were GM’s general counsel, Mike Craig Glidden, has worked with Al Jazeera said in January
able safety features including to Mr. Gass that the Journal re- dismissed over the switch for Millikin, to the ignition switch regulators on taking more pro- that it would close Al Jazeera
air bags. Some GM lawyers reviewed. The letters supported reasons including failing to act defect until early 2014 and in active measures. GM endorses America by April 30, citing
viewed and settled cases involv- decisions not to reveal confi- responsibly or urgently. “They hindsight said he probably regulators’ desire for exceptions economic reasons, after in-
ing the switch that didn’t reach dential client information. failed to take the extra step,” should have, Mr. Valukas’s re- in confidential settlements so vesting an estimated $2 billion
senior executives’ desks for A corporate lawyer’s obliga- said Mr. Gass, a 61-year-old for- port said. The report absolved companies will share informa- in an attempt to break into the
years, according to a company- tion to speak up varies by mer FedEx Corp. manager, re- the since-retired Mr. Millikin. tion with government officials. U.S. cable market.
Peer-to Peer E-Commerce Apps

By Startups Flourish in Asia You have a passion
for building safely.
Instead of listening to music cari and Singapore-based Car-
or playing videogames during ousell are gaining popularity. We’ll help you take risk
his daily train commute in They allow listings to be cre- management to new heights.
Singapore, Jay Pang uses the ated in as little as a minute or
down time for something dif- two by having users photo- You rise to the challenge of keeping your jobsites safe. We know that safety
graph an item with a smart- means more than just adhering to building codes; it means protecting the
By Newley Purnell in phone and tap out a few lines workers, drivers, and subcontractors who help your business succeed.
Singapore and Juro of text. GPS features allow At Liberty Mutual Insurance, we’re proud to partner with construction businesses
TOMOHIRO OHSUMI/BLOOMBERG NEWS
Osawa in Hong Kong buyers and sellers to find each like yours to provide quality solutions. You have a passion for your business.
other and built-in payment, We have a passion for protecting it. To learn more, talk to your broker
ferent: selling rare sets of chat and delivery services today or visit libertymutualgroup.com/buildsafe.
Legos via his smartphone. streamline transactions in
COMMERCIAL AUTO | GENERAL LIABILITY | PROPERTY | WORKERS COMPENSATION
Mr. Pang frequently man- places like Southeast Asia,
ages listings for his online where many consumers don’t @LibertyB2B
business using a new e-com- have credit cards and poor in-
merce app called Shopee. The frastructure can make long-
app was created by a unit of range deliveries difficult.
Garena Online, a fast-growing Garena’s group president,
Internet startup in Singapore Peer-to-peer shopping apps Nick Nash, said Shopee, which
valued at $2.5 billion. Mr. allow listings to be created in now has about 5,000 employ-
Pang frequently taps away on as little as a minute or two. ees, has attracted roughly 3
his Samsung Galaxy smart- million users since launching
phone during his ride, hag- in November in Taiwan and
gling over prices with custom- Going Mobile Southeast Asian countries like
ers in real time. Asia is well ahead of the West Singapore and Malaysia.
The 29-year-old engineer’s in the number of consumers Shopee, like many con-
on-the-go business offers a shopping on smartphones.* sumer-to-consumer apps,
look at the changing face of makes money by charging
commerce in the era of the Percentage of total population small transaction fees. It
smartphone and is a blueprint South Korea 43% doesn’t disclose its revenues.
for how mobile shopping could Among the products listed on
United Arab
evolve elsewhere. 40 the platform are items as dis-
Emirates
Consumers in the U.S. use parate as electric kettles,
their mobile devices more for China 34 iPhone 6Ss and hair products.
getting directions or listening In Japan, Mercari operates
Hong Kong 33
to music than for making pur- like a digital flea market where
chases, according to a 2015 Malaysia 31 users buy and sell mostly sec-
survey by Pew Research Center. ondhand goods like clothes
But a handful of Asian Thailand 31 and videogames. It has grown
startups are starting to change rapidly since its launch in
Singapore 30
the commercial landscape by 2013. The startup doesn’t dis-
offering apps that let individu- Spain 27 close its active users, but says
als buy and sell goods directly its monthly transactions are
from one another more easily U.K. 27 now worth more than 10 bil-
than on traditional Web-based lion yen ($88.4 million).
sites like eBay. The so-called U.S. 26 The firm, which generates
peer-to-peer commerce market *Those who shopped on a phone in the past
revenue by taking commis-
is attracting funding from in- month. Data as of January 2016. sions on sales, says it will use
ternational investors and some Source: We Are Social the fresh capital to fuel its
companies have valuations of THE WALL STREET JOURNAL. overseas expansion.
$1 billion or more despite the In Singapore, Carousell
global economic slowdown. Asia. About 43% of people in raised more than $6 million in
“People can shop from any- South Korea said they used a funding from Golden Gate Ven-
where, and I can instantly ne- smartphone to make a pur- tures, Sequoia Capital and oth-
gotiate a price,” Mr. Pang said. chase during the past 30 days, ers. Founder Siu Rui Quek,
Asia is home to the world’s the highest proportion in the who didn’t disclose the firm’s
two biggest smartphone mar- world. Six of the top 10 mobile- valuation, said it has 26 mil-
kets: China and India. With shopping countries are in Asia. lion listings from across
more than a billion smart- In the past, selling goods on- Southeast Asia.
phone users across Asia—more line involved some legwork. Us- “The U.S. still thinks desk-
than three times the popula- ers had to snap photos of prod- top first, but being out here, I
tion of the U.S.—high mobile ucts with cameras, upload them know the future is mobile
penetration is helping to onto special Web pages on their first,” said Vinnie Lauria, a Sil-
spread commerce. Data from PCs, write product descriptions icon Valley veteran who in 2011
consultancy We Are Social in and conduct auctions. founded Golden Gate Ventures. © 2016 Liberty Mutual Insurance. Insurance underwritten by
January showed how prevalent Now, peer-to-peer shopping —Eva Dou in Beijing Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries.
shopping on smartphones is in apps like Shopee, Japan’s Mer- contributed to this article.
B4 | Monday, March 28, 2016 * * THE WALL STREET JOURNAL.
MEDIA
Facebook’s Alerts
Stray on Pakistan
‘Safety Check’
BY DEEPA SEETHARAMAN declined to elaborate on what
caused the bug.
A Facebook Inc. function When Facebook activates
designed to let people tell its safety-check feature, users
friends and family they are it identifies as being in the
safe after a disaster mistak- area are sent messages ask-
enly asked users far from ing if they are safe. The users
WARNER BROS. PICTURES
Sunday’s deadly explosion in can then use the tool to indi-

Pakistan if they were in cate on their profiles that
harm’s way. they are unharmed, and can
The messages resulted also mark others as safe. The
from a bug in Facebook’s information is only visible
“safety check” feature, which, within a user’s Facebook net-
‘Batman v Superman: Dawn of Justice’ sets up story lines that will extend into nine coming DC Comics-based films. when activated, lets Facebook work.
‘Batman v Superman’ Wins

users mark themselves as Facebook introduced the
safe on their profiles if they safety-check tool in October
are near a natural disaster or 2014, initially only for natu-
bombing. ral disasters like earthquakes.
Sunday’s errant texts and Last November’s terrorist
notifications reached some attacks in Paris marked the
Superheroes team up slowdown in box-office results Facebook users in places as first time Facebook activated
as the weekend went on, indi- far away as New York and the tool for incidents of vio-
to give Warner Bros. Estimated Box-Office Figures, Through Sunday cating that word-of-mouth Washington, asking if they lence.
SALES, IN MILLIONS
a much-needed hit, was healthy. Opening-night au- were harmed by the explo- The service has been
FILM DISTRIBUTOR WEEKEND*CUMULATIVE % CHANGE diences gave the movie an av- sion in Lahore, Pakistan, widely praised, but some-
fetching $424.1 million erage grade of B, according to which killed at least 65 peo- times controversial. Follow-
1. Batman v Superman: Warner Bros. $170.1 $170.1 --
market-research firm Cine- ple. ing the Paris attack, some
Dawn of Justice
BY BEN FRITZ maScore. Texts from Facebook users questioned why it
2. Zootopia Disney $23.1 $240.5 -38 In addition to its title char- asked: “Have you been af- hadn’t been used in other
In the battle of Batman and 3. My Big Fat Greek Universal $18.1 $18.1 -- acters, played by Ben Affleck fected by the explosion?” ac- cases, such as suicide bomb-
Superman, the winner appears Wedding 2 and Henry Cavill, “Batman v cording to screenshots posted ings in Beirut, around the
to be Warner Bros. Superman” introduced Won- by users on Twitter. same time.
4. The Divergent Series: Lionsgate $9.5 $46.6 -67
Ending a prolonged box-of- der Woman, who will get her While Facebook smart- Facebook said at the time
Allegiant
fice slump for the Time War- own film next year, and briefly phone notifications referred that it planned to use the
ner Inc.-owned studio and 5. Miracles From Heaven Sony $9.5 $34.1 -36 teased other DC superheroes to Lahore, at least some text feature more widely. It has
launching a lineup of movies *Friday, Saturday and Sunday Source: comScore such as Aquaman, Cyborg and messages it sent didn’t spec- activated the feature eight
based on DC Comics charac- Flash. Those characters will ify where the explosion took times so far this year, includ-
ters, “Batman v Superman: later get their own solo mov- place, prompting momentary
Dawn of Justice” enjoyed the For Warner Bros., the open- Chief Executive Kevin Tsuji- ies. alarm among some users.
fourth-biggest global opening ing wasn’t so much a cause for hara has announced are in “This wasn’t just launching One Twitter user wrote:
Sunday’s errant
in box-office history. celebration as a reason to fi- the works. one film, it was launching 10,” “Thankfully I’m nowhere near texts reached some
The superhero team-up film nally exhale. The studio has “When you have such a said Mr. Goldstein. the #Lahore bombing. Face-
grossed an estimated $424.1 had a number of high-profile large tentpole and such a big “Dawn of Justice” director book Safety Check gave me a
Facebook users in
million world-wide; $170.1 mil- bombs in the past year, includ- emotional and financial invest- Zack Snyder next month will fright for sec making me places as far away
lion of that came from the U.S. ing “In The Heart of the Sea,” ment, everyone forgets that start shooting “Justice think something nearby hap-
and Canada, the sixth-biggest “Pan” and “Jupiter Ascending.” it’s OK to breathe,” said the League,” which unites all of pened.”
as New York and
domestic opening ever. Over- For many on its Burbank, Ca- company’s executive vice pres- DC’s superheroes in a single It wasn’t clear how many Washington.
seas, the movie enjoyed par- lif., lot, the mantra for the ident of domestic distribution, movie and opens in November people received the mistaken
ticularly strong performances past several months has been Jeff Goldstein. He said he and 2017. notifications.
in developing and established to wait until March. other executives at the studio The next DC movie from Facebook, in a post on its ing for a number of violent
markets alike, including China, But the pressure on “Bat- had been targeting a world- Warner Bros. will be “Suicide website, said: “Unfortunately, attacks, according to the
the U.K., Mexico and Brazil. In man v Superman” was higher wide opening of $325 million Squad,” which unites several many people not affected by spokeswoman.
the latter, “Batman v Super- than just reviving the once- for the movie. of the comic books’ best- the crisis received a notifica- Those include last week’s
man” posted the biggest open- dominant studio’s motion-pic- Premium formats such as known villains and opens in tion asking if they were terror attack in Brussels, al-
ing weekend of all time. ture business or earning back IMAX and 3-D were the first to August. okay. This kind of bug is though Facebook was criti-
A total box office of more its hefty $250 million-plus sell out, said Mr. Goldstein, in- The only other film to de- counter to the product’s in- cized for waiting too long in
than $1 billion is possible, par- production budget. The film dicating that fanboys were ea- but nationwide this weekend, tent. We worked quickly to that case to activate the fea-
ticularly with no major compe- sets up characters and story ger to see the film in the high- the comedy sequel “My Big resolve the issue and we ture. The company turned on
tition on the horizon until “Cap- lines that will extend into est quality—and most Fat Greek Wedding 2” from apologize to anyone who the feature several hours af-
tain America: Civil War,” from nine coming DC Comics-based expensive—way possible. Comcast Corp.’s Universal Pic- mistakenly received the noti- ter the blasts, the first of
rival Walt Disney Co.’s Marvel movies over the next five Despite overwhelmingly tures, opened to a decent $18.1 fication.” which was at 8 a.m. local
Studios, opens on May 6. years, which Warner Bros. negative reviews, there was no million. A Facebook spokeswoman time.
CABLE verse.”
Club spokesman Julian
Green said Thursday, “We be-
lieve significant value in the
30-year deal with the baseball
team to secure TV rights
through 2042, at a cost of
some $1.5 billion. In 2014, Fox
Continued from page B1 media rights remains.” increased its 49% share of YES
dia and telecom consultancy Media consultant and for- to a controlling 80% stake in a
Carmel Group. mer Fox executive David deal that valued the network
Jeff Krolik, president of Fox Sternberg said distributors at nearly $4 billion, and inher-
Sports Regional Networks, the “have learned that they can ited those rights-payment ob-
parent of YES, said regional live without” regional sports ligations.
sports networks “continue to channels in many cases, or at The deal was meant to
deliver tremendous value to least can manage with minimal bring in lucrative cable sub-
our distributors and viewers subscriber losses. “The bal- scription fees and to also give
alike.” He added: “Despite wild ance of power has definitely Fox leverage to extract fee in-
claims otherwise, [the net- shifted to the distributors,” he creases for other channels it
works] make up a relatively said. owns.
modest portion of the cable The situation with YES in- Fox acknowledges now that
bill.” volves one of sport’s most sto- while regional sports networks
Comcast’s executive vice ried franchises. are still a significant profit
president of consumer ser- Comcast risks drawing the source, they are diminishing in
vices, Marcien Jenckes, said ire of passionate Yankees fans importance. “When you look
the company hopes to bring who expect to see one of the out, they will not be a growth
back the channel and is work- American League’s top teams driver of the business,” 21st
ing to resolve the standoff. in action. The standoff with- Century Fox Chief Financial
“But we can only return YES holds the channel from almost Officer John Nallen said this
to our customers if the net- a million homes close to New month at an investor confer-
work and its majority owner, York City in New Jersey, Con- ence.
Fox, become realistic with necticut and Pennsylvania. The He added he still considers
their price demands,” he said. cable giant is betting that it regional sports networks
has more to lose by paying must-have programming. “A
high fees to Fox and passing package that doesn’t have
$5.36 them on to customers, many of
whom may not watch sports.
what is the most important
television in the market would
How much YES network costs YES network costs pay-TV be pretty surprising,” he said.
pay-TV providers a subscriber providers about $5.36 a sub- Comcast argues that Fox’s
a month. scriber a month, according to price demands simply don’t
SNL Kagan, making it one of line up with the viewership of
the most expensive channels YES in its territory. Comcast
JONATHAN DYER/REUTERS
Pay-TV providers in Los An- on the cable dial. YES is seek- said its data show fewer than
geles, including DirecTV, are ing to increase its fee to about 2% of its households account
balking at the price for Sports- $6. for the Yankees audience at
Net LA, the Dodger’s regional The YES network also car- any given time.
sports network. More than ries the NBA’s Brooklyn Nets “We are not going to subsi-
50% of the TV homes in the and New York City’s Major dize the YES business by
market don’t carry the chan- League Soccer team. charging a broad set of con-
nel, the second-most-expen- The brawl between Comcast Yankees games on YES averaged 250,000 viewers last season, down from a 2007 high of 450,000. sumers when only a subset
sive regional sports network and Fox is getting in the way wants it,” said Mr. Jenckes,
after the Yankees’ version. On of other business between the works Group Chief Peter Rice sandwich placards encourag- ardy the revenue for networks Comcast’s executive vice presi-
Tuesday, Time Warner Cable, companies. When Comcast met Neil Smit, the chief of ing fans to switch pay-TV dis- that currently count on the dent.
which distributes the network, wanted to discuss renewing its Comcast’s cable group, on the tributors. hefty fees that come with be- YES and Fox dispute Com-
offered to cut its fee 30% for distribution deal with the pop- sidelines of a cable industry 21st Century Fox and News ing distributed in a bundle of cast’s viewer numbers. YES
the coming season. ular Fox News Channel earlier trade group gathering in Corp, which owns The Wall channels to every home, President Tracy Dolgin in an
In Chicago, the Cubs have this year, it was rebuffed. Fox Washington. Mr. Rice warned Street Journal, were part of whether the subscriber is a interview called the data “voo-
long sought to launch their News Chairman Roger Ailes Fox would take the dispute the same company until 2013. sports fan or not. doo math.”
own regional sports network signaled he would resist a deal public with a marketing cam- The problem for Fox and Comcast itself owns stakes According to Nielsen, Yan-
after the 2019 season when until the YES situation was re- paign if Comcast didn’t sign other media companies is that in eight local sports channels. kees games on YES averaged
their current deal with Com- solved, according to people fa- its latest offer, people familiar many agreed to high-price It put a network dedicated to 250,000 viewers last season,
cast SportsNet Chicago ex- miliar with the situation. with the deliberations say. Fox sports-rights deals when cord- Houston’s Astros and Rockets down 44% from its high of
pires. That goal hasn’t That marked a turnabout waited a week for a response cutting was more myth than into involuntary bankruptcy in 450,000 in 2007.
changed, but the baseball for the Fox News executive, from Comcast. reality. Today, distributors are 2013 after failing to get wide- In the New York City mar-
club’s operations chief, Crane who didn’t let a similar dis- Soon after, Fox released looking to keep subscribers by spread distribution. ket area, which includes parts
Kenney, told reporters at the pute between Fox Sports San anti-Comcast ads on bill- selling “skinny” packages that James Murdoch, a Yankees of New Jersey and Connecti-
team’s winter convention that Diego and Time Warner Cable boards, radio and in newspa- don’t include expensive net- fan and Fox’s current chief ex- cut, YES was the highest-rated
the franchise would watch three years ago delay a deal pers. The company recruited works such as regional sports ecutive, spearheaded the com- cable network and third-most-
with “a very wary eye what’s with the cable company. an army of people to march in channels. pany’s substantial investments watched channel overall dur-
going on in the cable uni- Earlier this month, Fox Net- midtown Manhattan wearing Such a move puts in jeop- in YES. In 2012, YES signed a ing the team’s last season.
THE WALL STREET JOURNAL. * * Monday, March 28, 2016 | B5
TECHNOLOGY @wsjd | wsjd.com
Workplace Democracy Catches On

Companies allow some staff choices in the past,
Logistics
Accelerator
employees to vote on
hiring, holiday parties
which made employees feel
less invested in their deci-
sions. Now, he sticks with the
Kicks Off
vote. “Because the team BY LORETTA CHAO
and other issues picked you, they are not going
to let you fail,” he says. A group of logistics entre-
BY RACHEL EMMA SILVERMAN Other firms open the ballot preneurs is launching a Silicon
box for benefits. Several years Valley-style accelerator for
As voters head to the polls ago, employees of online dis- supply-chain technology start-
to pick their party’s presiden- count site 1Sale.com voted on ups, aiming to draw new in-
tial nominee, employees at In- whether the company should vestment and talent to the
Context Solutions will vote in continue serving free lunch or freight business.
a contest with far lower apply that money to lowering The founders say they will
stakes: whether to play music health-insurance premiums for run the Dynamo program
in the office common areas. workers. More than 90% alongside a $12 million logis-
At a time when voting is picked the lower premiums, tics venture fund in Chatta-
on Americans’ minds, ballot says Eli Federman, a co- nooga, Tenn. The accelerator
contests are coming to the of- founder. will have a $3 million budget
fice, too. Workplace democ- “They asked us, do you pre- raised from the fund and other
racy has caught on at many fer to have your belly full or partners to put toward start-
companies, including InCon- your wallet full?” recalls mar- ups focused on logistics-ori-
text, grocer Whole Foods keting manager Shmuli Bor- ented technologies such as au-
Market Inc. and marketing tunk. “Without just deciding tonomous-truck operations,
technology company Media- behind closed doors, they gave drones and software.
OTTO STEININGER
Math Inc., where workers us the option to decide collec- The startups will participate
cast votes on issues large and tively what we want.” in a three-month program that
small. 1Sale teams also vote on will include testing their ideas
While firms like McKinsey whether a candidate is a with businesses in the Chatta-
& Co. have long had partners “hire” or a “no hire,” but hir- nooga area.
elect leaders—and unions ble scientists asked employees The board of directors of from a decision maker to ing managers make the final Chattanooga has a growing
give employees a say on pay to rank their favorites from a W.L. Gore & Associates, the someone who “provides the call. Mr. Bortunk sometimes manufacturing base, and is close
and work arrangements—dig- slate of options. Rather than maker of Gore-Tex, asked for information and resources for voted on people “a level or to distribution hubs. FedEx
ital survey tools like Tiny- voting, workers took to a com- feedback from workers in the team to make a decision,” two above me on the corpo- Corp. and United Parcel Ser-
Pulse and Know Your Com- panywide email thread, bicker- 2005 to help choose Terri he says. rate map,” he says. “This in it- vice Inc. both have major opera-
pany enable more companies ing over which scientists were Kelly as the company’s next At Whole Foods, new store self was a very empowering tions close to the region.
to give their staff a voice in included on the list. Ms. Si- chief executive, according to a employees must win approval task. It felt like we all had a Tech-industry investors are
running the workplace. Tak- ren’s favorite, Ada Lovelace, company spokeswoman. from two-thirds of their de- voice in who joins.” showing greater interest in the
ing ballots on issues from made the cut, but the exercise partmental colleagues to stay Staff at Social Tables Inc., logistics business. Ama-
hiring to holiday parties was trying. on past a trial period of up to a maker of event-planning zon.com Inc. founder Jeff Be-
helps spark loyalty to the “Sometimes you just want
Promotions and 90 days. General managers at software, have voted on the zos, eBay Inc. founder Pierre
company, managers say— to get your job done,” she salaries are still restaurant chain Pret a Man- company’s core values, its Omidyar and Uber Technolo-
though promotions and sala- says. ger Ltd. ask store employees conference-room themes (“50 gies Inc. co-founder Garrett
ries are mostly decided be- Marketing-technology firm
mostly decided for their opinions of job appli- Shades of Pink” and Camp recently invested in Se-
hind closed doors. MediaMath let employees pick behind closed doors. cants. While it isn’t a formal “Grandma’s Living Room” attle-based freight-booking
“People feel like they have a its new headquarters, choos- vote, the feedback figures were both winners) and even website Convoy.
real voice,” says Mackenzie Si- ing from one of two locations heavily in the general man- a company theme song The Dynamo backers hope
ren, a product manager at In- in Manhattan. About 175 em- Stephen Courtright, assis- ager’s decision, a spokes- (“Jubel” by Klingande), their program will help attract
Context, which makes soft- ployees toured both sites and tant professor of management woman says. played at corporate events, top technology talent to the
ware for retailers and voted online, choosing a loca- at Texas A&M University who Software company Menlo says Sarah Shepherd, who more industrial side of distri-
manufacturers. Its 95 workers tion in the World Trade Center studies nonhierarchical organ- Innovations LLC’s employees works in human resources for bution, which has a reputation
have voted on standing desks, complex. izations, says bosses in demo- participate in the hiring pro- the Washington, D.C.,-based for being old-fashioned and
whether to have cubicles or Pete Gosling, a senior cre- cratic companies need to be cess by observing how candi- firm. resistant to change.
open tables in its Chicago of- ative director, liked being able comfortable ceding executive dates work during a trial pe- It is a lot of polling, says “Programmers right out of
fice, and which brews to keep to weigh in—though his choice decision power. Just how riod and vote yes or no on DJ Bruggemann, Social Ta- school are not wanting to get
in the company keg. was the loser—but he recog- much power they lose depends potential candidates, says Rich bles’ director of business de- into this industry. Let’s be
Voter fatigue can set in. “It nized that it was a lot of work on the weight of the decisions: Sheridan, Menlo’s CEO and co- velopment, but he always honest. They’d rather go work
can get a bit cumbersome,” for the company’s facilities Allowing staff to pick a CEO founder. (The votes aren’t participates. “As soon as you for Amazon, Facebook, or
says Ms. Siren. A vote last staff. “It would have been differs from letting them de- anonymous and are conducted stop voicing your opinion, someone like that,” said Ted
summer to name InContext’s much easier to just have made cide which snacks to serve. in a group.) you lose your right to com- Alling, one of the program’s
conference rooms after nota- a decision,” he says. The leader’s role must change Mr. Sheridan overruled plain.” three founders.
Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
50s 1 2 3 4 5 6 7 8 9 10 11 12 13 4 Harmon of 37 TV’s “Hee-___”
d t
Edmonton <0
20s “Rizzoli & Isles”
0s 14 15 16 38 New York mayor
Vancouver
Vancouver Calgary 5 Bright and clear who wrote
40s 10s 17 18 19
ip
Winnipeg 6 French friend “Giuliani: Nasty
Seattle 20s
40s 30s 20 21 7 Elton John Man”
40s Montreal 30s
50s Por
P d
Portland Helena Ottawa number 39 Pinnacle
Bismarckk 40s 22 23 24 25 26
g
Billings A b y
Albany
A
Augusta 8 Crowd scene 42 Epiglottis setting
Eugene 30s 50s T
Toronto 50s
Boise Mpls./St.. Paul
Pau t
Boston 27 28 29 30 31 player 43 Knitter’s supply
40s 30s 60s 40s 60s
oux FFalls
Pierre Sioux ll Milwaukeek t
Detroit Buffalo t
tford
Hartford 9 Relaxed 45 Rio de Janeiro
32 33 34
Cleve
Cl l d 50s
Cleveland 70s
Reno ltt Lake
Salt LLakkee C
Cityy es Moines
Des
Ch
Chic
Chicagog
New
ew YYorkk 10 Frosh quarters setting, to
Ch
h y
Cheyenne h
Omaha 80s 35 36 37 38
Sacramento
50s Indianapolis Pittsburghg Ph
Philadel
hil d lphi
Philadelphia 11 Pitcher’s stat natives
Denver p g d
Springfield h g on
Washington n D.C
DC
D.C. 90s 46 ___ Beach
an Francisco
San Top k
Topeka Kansas Ch
Charles
l t
Charleston 39 40 12 Letter before
Colorad
Colorado City 100+
LLas p
Springs St.. Lou
Louis LLouisville
Lou
h
Richmond d omega (California
60s Ve
Vegas 30s hit
Wichita aleigh
g
Raleigh 41 42 43 44 45 46 47 resort)
h ill
Nashville 13 A bit more than
Los A
Angel
Angeles 70s 60s Charlotte
Ch l
Santaa FFe 60s 48 49 50 51 52 900 kilograms 47 1995 Sandra
Ph
Phoenix Alb
b q q
Albuquerque Oklahom
kl ma City Memphis
h C b
Columbia
San Diego Oklahoma Warm Rain Bullock thriller
70s Little Rock 80s 53 54 18 Where
80s T c
Tucson h
Birmingham
Atl t
Atlanta
50 The Jetsons’
El P
Paso
Ft. Worth D ll
Dallas
JJackson
k Cold
contemplative
70s T-storms 55 56 57 58 people look maid
80s bil
Mobile Jacksonville
Jack
-0s A ti
Austin
t
Houston Stationary 19 Dress edges 52 Treatments at
Snow 59 60 61
0s ew Orleans
New d
Orlando a 55-Down
80s an Antonio
San Tampa 23 Convoy trucks
10s 62 63 64 53 Inquires
Anchorage
A h g 80s Miami Showers Flurries 24 Jai ___
0s 30s 60s
Honolulu
l l
80s 25 Mister from 54 Article
40s 70s
50s Ice WEATHER NOTES | By Heidi Moretta Munich 55 Place to be
26 USN bigwig pampered
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W
Across 27 France’s 51 Star with a
56 Corn unit
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Org. supporting Concorde, 10% stake in 29 Driver’s pedal
Omaha 67 43 s 65 53 c Frankfurt 56 43 r 53 43 sh for one Weight 57 Verb that’s an
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 82 65 t 84 65 pc Geneva 56 44 c 57 46 sh
fake fur 31 Not at home
Today Tomorrow 5 Feature 28 “A Death in the Watchers anagram of
Philadelphia 66 43 r 57 34 s Havana 89 69 pc 87 68 pc 32 Opposition
City Hi Lo W Hi Lo W Phoenix 84 59 pc 70 49 s Hong Kong 67 59 s 70 64 pc presentation? Family” author 53 One Way sign, 56-Down
position
Anchorage 45 39 r 49 37 c Pittsburgh 53 36 r 51 30 s Istanbul 52 46 pc 56 50 pc
9 Proficient James essentially 58 Org. that
Atlanta 70 46 s 70 51 s Portland, Maine 43 38 r 47 28 pc Jakarta 89 75 t 88 77 t 33 Calliope power
30 Like a diplomatic 54 Old cold spell champions
Austin 74 56 s 76 68 pc Portland, Ore. 54 37 c 63 41 pc Jerusalem 53 43 t 55 43 pc 14 Plow pullers 35 Camouflage Second
Baltimore 66 42 r 59 33 s Sacramento 64 44 pc 65 43 pc Johannesburg 79 49 s 83 54 s pouch 55 Terry Jacks
Boise 50 36 sh 54 35 c St. Louis 61 40 s 65 49 s London 53 42 sh 53 40 sh 15 Jumbo-screen 36 Emmy winner Amendment
film format 32 Friend of Athos, number
Boston 46 40 r 50 33 pc Salt Lake City 49 37 r 42 31 sf Madrid 59 46 pc 63 41 c
Porthos and Alan rights
Burlington 48 34 r 42 26 pc San Francisco 62 49 pc 63 49 pc Manila 89 79 pc 89 80 c 16 Mannequin 59 Winter coat
Charlotte 76 44 pc 69 42 s Santa Fe 69 39 pc 65 27 pc Melbourne 64 55 c 65 57 t d’Artagnan
section 60 Concerning Previous Puzzle’s Solution
Chicago 54 33 s 57 44 s Seattle 53 38 pc 58 41 pc Mexico City 80 52 s 81 53 s 34 Toasty A F T U S D A E M E R Y
Cleveland 50 35 r 45 33 s Sioux Falls 56 37 s 60 48 sh Milan 57 46 c 65 48 sh 17 Gene Kelly 61 Annoyance at B L I P P H EW Q A N D A
Dallas 71 52 s 73 65 pc Wash., D.C. 68 45 r 61 37 s Moscow 42 27 s 40 29 c number 35 Miley Cyrus
number the checkout S U P E R B O WL S U N D A Y
Denver 57 35 pc 60 32 pc Mumbai 96 80 pc 94 79 pc S T E E R S H I N
20 Broadway legend 62 “Give it ___!”
Detroit
Honolulu
53 32 r
84 69 pc 82 69 pc
51 34 s
International Paris
Rio de Janeiro
55
91
43 r
78 c
55 45 sh
90 77 s Stritch 39 Incline B O T S
A H E A
W
R
A
T
N A U
I N T
N
E
E
R
A S E
N E T
Houston 75 56 s 74 66 pc Today Tomorrow Riyadh 97 69 pc 85 63 s 40 Unwavering 63 Wax-coated A O R T A T R O I S Y N C
City Hi Lo W Hi Lo W 21 REM sleep event cheese P R O B I N G
Indianapolis 55 35 s 58 41 s Rome 63 50 pc 65 51 pc 41 Unusual thing A A H S A F A R L E R O I
Kansas City 63 43 s 65 54 pc Amsterdam 52 42 r 50 41 sh San Juan 86 72 pc 86 73 pc 22 Plea in a 64 Venetian blinds H I B I S C U S S A L A D S
Las Vegas 74 48 pc 62 44 pc Athens 60 47 pc 65 51 s Seoul 60 41 s 55 37 sh magazine 44 Dove’s foe A D O N A I E S C R O W E E
piece A C N E A H E A D
Little Rock 65 41 s 70 55 s Bangkok 95 79 s 95 81 pc Shanghai 68 50 s 72 55 c mailing 45 Diner sandwich, F E A T H E R O N E S N E S T
Los Angeles 64 47 sh 64 48 c Beijing 75 41 pc 72 41 s Singapore 91 77 t 91 79 t initially Down D R D R E I T E M S A L E
Miami 87 74 t 85 75 t Berlin 58 44 c 50 39 sh Sydney 76 65 pc 74 64 t 23 Closes with a A R O A R E T R E L Y E
bang 48 Casserole bit 1 Tricky puzzles
Milwaukee 48 33 s 47 41 s Brussels 52 42 r 52 42 sh Taipei 71 51 s 75 55 s The contest answer is OSTRICH. The answers to
Minneapolis 57 40 s 61 47 c Buenos Aires 77 55 s 79 59 pc Tokyo 58 49 sh 59 50 s 24 “Caught you in 49 Quarters in a 2 Banishes the seven clues that contain “eggs” each contain
Nashville 64 39 s 67 44 s Calgary 42 28 sh 49 33 c Toronto 51 27 r 44 26 s
New Orleans 76 61 pc 74 65 pc Dubai 94 77 pc 96 77 s Vancouver 52 41 s 56 42 s
the act!” sultan’s palace 3 Lease signer the name of a bird (OWL, SWAN, TERN, ROBIN,
New York City 58 42 r 55 34 s Dublin 50 36 c 50 35 sh Warsaw 56 40 pc 58 39 c IBIS, CROW and HERON). The first letters of
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
Oklahoma City 69 47 s 71 59 pc Edinburgh 51 34 c 50 35 c Zurich 55 41 c 55 41 sh these bird names spell the contest answer.
P DCASTS
WHAT’S NEXT. NOW.
Brought to you by the staff of WSJD, Tech News Briefing
delivers daily news, updates and forward-looking analysis to
help you stay a step ahead of the disruptors.
Listen now and discover more at WSJ.com/podcasts © 2016 Dow Jones & Co., Inc. All rights reserved. 6DJ3424
B6 | Monday, March 28, 2016 * ***** THE WALL STREET JOURNAL.
SPORTS
Road to Final Four: How the Favorites Fell
BY ANDREW BEATON
Philadelphia
With a record-setting 23 com-
bined losses entering the NCAA
tournament, this year’s No. 1 seeds
were the weakest in recent memory.
So the craziest thing about March
Madness was that despite a flurry of
early upsets, the teams on the top
line all waltzed to the Elite Eight
with relative ease.
When the first two No. 1s went
down on Saturday, with top-overall
Kansas losing to Villanova and Okla-
homa defeating Oregon, it wasn’t all
that shocking: The Wildcats and
Sooners had spent time this season
ranked No. 1 in the country, and
there was little doubting their cre-
dentials as Final-Four worthy.
Then the real insanity began. No.
10-seed Syracuse not only upset a
No. 1 Virginia team that had looked
more unflappable than the Mona
Lisa, but the Orange pulled off one
of the most memorable comebacks
NAM Y. HUH/ASSOCIATED PRESS

in tournament history. After trailing
35-21 at halftime, and trailing by 13
with less than nine minutes to play,
Syracuse finished the final 8:23 on a
25-6 run to pull off the 68-62 stun-
ner.
Sixth-seeded Notre Dame almost
made it four for four taking down
the tournament’s Goliaths in one fell Members of the Syracuse Orange basketball team celebrate after beating the Virginia Cavaliers on Sunday to advance to next weekend’s Final Four.
swoop. The Fighting Irish surged to
a second-half lead and silenced a ets. They stumbled into the tourna- a fascinating mess is how each team
boisterous crowd decked out in baby ment having lost five of their last six reached this point with completely
blue. Then the Tar Heels went on a game and they went 4-5 during a disparate styles. Syracuse likes to
9-0 run en route to a 88-74 victory, stretch this season with coach Jim grind games to a halt and punish
making sure that one No. 1 survived Boeheim suspended by the NCAA, teams with its zone defense. North
the weekend’s carnage. following an investigation into the Carolina, its Final Four opponent,
This Elite Eight whirlwind finally program that found academic fraud overcomes defensive deficiencies by
restored the NCAA tournament to its with players, impermissible benefits trying to outscore all of its oppo-
natural state: disorder. The tourna- and drug-test violations. nents.
GREGORY BULL/ASSOCIATED PRESS

ment favorite, Kansas, has been ban- So the thought they could upset The offensive approaches vary
ished. A team many thought had no No. 1 Virginia was unthinkable. But wildly too. The Tar Heels have built
business even getting invited, Syra- one of the country’s most efficient
cuse, has reached the Final Four. offenses while doing most of their
Notre Dame even lost on Easter Sun-
Syracuse’s emergence as scoring inside the paint, acting like
day. And there’s one No. 1 left, North a Final Four team stands the floor outside the 3-point arc is
Carolina, just pretending that logic covered in lava. Oklahoma, on the
and reason play any role in all of
as the tournament’s other side of the bracket, is the po-
this. ultimate head-scratcher. lar opposite: The Sooners score 39%
Syracuse’s emergence as a Final of their points from beyond the arc, Oklahoma’s Buddy Hield scored 37 points in the Sooners’ Elite Eight win.
Four team stands as the tourna- the second most of any team that
ment’s ultimate head-scratcher. the Orange were able to do the same made the tournament. that’s OK by them. In fact, it’s a signs that a fourth upset of a No. 1
First, there’s the history—or lack thing as Oklahoma and Villanova did This is how Oklahoma upset the point of pride and how they upset would come to be. After falling be-
thereof. The Orange are just the in their upsets and successfully shut No. 1 Ducks, draining 12-of-24 from No. 1 Kansas. Senior guard Ryan Ar- hind 51-40 in the second half, the
fourth double-digit seed to ever down the opposing team’s star. After beyond the arc. Eight of those came cidiacono has repeatedly called their Fighting Irish went on a 12-0 run
make the semifinals. And Syracuse is the Sooners limited Oregon’s Dillon from Bahamian sensation Buddy style “ugly,” saying that their goal and took the lead. The Tar Heels
nothing like the underdogs who did Brooks to seven points and the Wild- Hield, college basketball’s pre-emi- against the Jayhawks was to turn were losing their cool—Brice John-
it most recently. George Mason in cats held Kansas’ Perry Ellis to only nent star, who scored 37 points in the game into a “street fight.” son, their star forward, was whistled
2006 and Virginia Commonwealth in four, Syracuse relentlessly hounded the upset. Hield, who is averaging “Making the game ugly and a for a technical foul and people who
2011 were upstarts that carried a Malcolm Brogdon, who finished 2 of 25.4 points per game on the season street fight was to our advantage be- had taken the 5-to-1 odds before the
banner for overlooked and perhaps 14 from the field. and 29.3 in the tournament, not only cause that’s what we preach every tournament that a No. 1 seed
under-seeded mid-majors. “They really bottled up Malcolm makes the Sooners dangerous but day in practice,” his teammate Dan- wouldn’t reach the Final Four were
Syracuse, a college basketball with that zone,” Virginia coach Tony also the best show college basketball iel Ochefu added. starting to plan beach vacations.
powerhouse, wasn’t overlooked. The Bennett said. “We got some good has to offer. When the dust settled Sunday af- That’s when something weird
Orange were looked at, crumpled up looks and just didn’t convert, and Villanova, their Final Four oppo- ter Syracuse’s shocker, a Notre Dame happened: North Carolina still won.
and thrown into the nearest trash that happens.” nent, cares little about this. They of- upset seemed like it was destiny. —Chris Herring contributed to this
receptacle like most people’s brack- What makes this Final Four such fer neither stars, nor beauty. And And the game had all the tell-tale article.
The Catch on the Catch Rule and LeBron’s Big Unfollow

A
ttention loyal column read- the second season of his second-
ers: The print edition dead- go-round with the Cleveland Cava-
line of The Wall Street Jour- liers, and though he led the team
nal closed too early for me to to the NBA Finals last June—and
break down a fully-finalized Final played spectacularly—these re-
Four, but I’ll just assume my modeled Cavs are erratic. There is
bracket is completely intact: speculation James might flee
The Wisconsin Badgers. Cleveland, based upon…I don’t
The Buffalo Sabres. know, cryptic social media behav-
The Nantucket Whalers. ior, I guess?
The Lehigh Valley Iron Pigs. If you care about the details:
I know: I picked all the No. 1 NBA gossips were aflutter last
(T-B) MIKE MCGINNIS/GETTY IMAGES; MATT SLOCUM/ASSOCIATED PRESS
seeds. Boring. week when James unfollowed

Cleveland’s official team account
N
ot sure if you saw it the on Twitter. Unfollowing somebody
other day, but the NFL has on social media is normally not
updated its indecipherable such a big deal—all of us do it, es-
“catch rule” to be…marginally less pecially if someone posts far too
indecipherable than an instruction many photos of their family frol-
manual for a wireless router. icking on a fancy-pants Caribbean
If you watch football, you know vacation. But this was James, for
that there are now only two or whom every mundane action must
three people left on the planet be assigned a secret motive, and
who know what a catch is any- so The Big Unfollow became a
more. It’s rare that an bona fide basketball news story.
NFL game doesn’t go by Had LeBron grown sick of the
without a receiver pull- Cavs?
ing in a pass for an ap- (I would pay a big bag of
parent completion, and money to watch someone try to
JASON then have the ball come explain this whole episode to Bill
GAY loose in the aftermath, Dallas Cowboys receiver Dez Bryant, right, attempts a catch over Green Bay cornerback Sam Shields during the 2015 Russell or Jerry West.)
whereupon the officials NFC Divisional Playoff game. Initially ruled a catch, the call was reversed upon review. James would later downplay
will huddle, discuss it The Big Unfollow by saying he had
for 10 minutes, view it on replay, of Appeals? Retiring from football ceiver must, in the midst of catch- contact human resources, which chosen to go into blackout mode, a
discuss it for another 10 minutes, rather than be drafted by the ing the football, say, “HEY EVERY- will answer all queries in the or- bona fide ritual he usually does
go out and play a quick round of Cleveland Browns? All of those BODY, I HAVE CAUGHT THE der they were received. come playoff time—removing him-
miniature golf, have a light snack, could be considered “football FOOTBALL!” loudly enough for the 5. If officials are perplexed as self from all kinds of social media
return and then rule it incomplete. moves.” officials on the field to hear. to whether or not a catch has been distractions. It was kinda/sorta an
Back in the old days, a catch Becoming a “runner” is a more 2. Any defender in the vicinity made, they may randomly dial a explanation, and kinda/sorta not.
was when you caught the ball. crystalline distinction, the league must also verbally acknowledge number in the U. S.—collect—and It is fair to say that the Heart-
Pretty simple! But the modern NFL believes. The NFL puts it thusly: the catch, yelling, “PARDON ME, ask the person on the other end if warming LeBron Cleveland Cham-
laughs at you and your dopey “Gaining control of the ball, touch- BUT MY OPPONENT HAS CAUGHT a catch has been made. If the per- pionship Return Strategy may be
common sense. ing both feet down and then, after THE FOOTBALL!” within audible son on the other end isn’t a foot- in jeopardy; it’s hard to imagine
In the latest rule revision, the the second foot is down, having range of the officials. ball fan, and hasn’t been watching the discombobulated Cavs making
receiver must now establish him- the ball long enough to clearly be- 3. The receiver must bring the the game, tough, he or she still it past either Golden State or San
self as a “runner.” This is a signifi- come a runner, which is defined as ball to his body and cradle and pet has to give an answer, which will Antonio in the Finals (or maybe
cant change in nomenclature from the ability to ward off or protect it gently, like a lost baby squirrel invariably be about as accurate as even Toronto in the conference fi-
the prior rules, which stated that himself from impending contact.” he has rescued from a tree. If he the officials on the field. nals!). It’s possible James, who
the receiver merely had to commit Got it? Sounds pretty straight- doesn’t cradle and pet the ball Got it, everybody? Good. genuinely is one of the greatest
a “football move.” forward, if you’re the kind of per- gently, as if it were a lost baby players of all time, may be
I
That language was terrible, be- son who likes to disassemble and squirrel, it is incomplete. t’s spring, which means that bummed out. But if I have to
cause nobody knew what a foot- reassemble vintage Betamaxes for 4. The receiver must produce a the NBA is once more awash in spend one more off-season think-
ball move was, not even the peo- fun. receipt from the catch. Without a rumors about the future ing about his next destination, I
ple playing football. Was it taking I’m not satisfied with this new receipt, the catch won’t be recog- whereabouts of one of its biggest might need to slowly remove my
two steps? Making a Heisman catch definition. Why not add a nized. A photo of the receipt isn’t superstars, LeBron James. brain with a wooden spatula.
pose? Jiggling like Rob few more steps so everyone in the acceptable. If the receiver has lost Yes: We’re actually in this non- Mr. James, please stay in Cleve-
Gronkowski? Spending millions to NFL really knows what a catch is: the receipt from the catch, but has sense again, though it may not land. If not for the good people of
battle Tom Brady in the U.S. Court 1. Under the new rules, the re- a legitimate explanation, he may even be James’s doing. James is in Cleveland, for my spatula.
MOVING THE MARKET C2 | MARKETS DIGEST C4 | CLOSED-END FUNDS C5
Crowded Trade
Passing the Bar Spells Trouble
YUYA SHINO/REUTERS
HEARD ON
Part of law student’s debt canceled BANKRUPTCY | C3 THE STREET | C6
© 2016 Dow Jones & Company. All Rights Reserved. * * THE WALL STREET JOURNAL. Monday, March 28, 2016 | C1
Last Week: DJIA 17515.73 g 86.57 0.49% S&P 2035.94 g 0.67% NASDAQ 4773.50 g 0.46% 10–YR. TREAS. g 9/32, yield 1.902% OIL $39.46 g $1.68 EURO $1.1168 YEN 113.09
Banks Push Home Equity Betting on a Bust

As stocks have rebounded and volatility has ebbed, wagers that pay
off if the market plunges have increased.
Lenders seek to offset As the broader mortgage they were just a couple of marks a 24% increase from CBOE Volatility Index Assets in two VIX
market remains in the dol- years ago and who need cash 2014 and a 138% rise from exchange-traded products
weak mortgage and drums, banks are again tout- for renovations or other ex- 2010 when new approvals hit a 40 $1.00 billion
refinancing activity ing home-equity lines of penses after holding on to low point. VelocityShares
credit, which allow home- their homes for longer than The average line amount Daily 2x VIX ST ETN
BY ANNAMARIA ANDRIOTIS owners to draw down the eq- expected. extended to homeowners last 30 0.75 ProShares Ultra VIX
uity in their homes as they year reached a record Short-Term Futures
At hardware stores along need the cash, as well as cash- $119,790, according to the ETF
the U.S. East Coast in recent
weeks, TD Bank has been try-
out refinances, which involve
taking cash out of a home $119,790 firm, which tracks the data to
2002.
20 0.50
ing to persuade shoppers to while refinancing and ending Average line amount extended “Lenders are opening up
think bigger than paint and up with a larger mortgage bal- to homeowners in 2015, a their spigots,” said Sam
plumbing supplies: The bank ance. record sum Khater, deputy chief econo- 10 0.25
wants them to start taking The effort is gaining steam mist at CoreLogic.
cash out of their homes again. as banks try to offset falter- The volumes are nowhere
The TD Bank tour bus, ing mortgage originations and Lenders extended just over near the amounts given out 0 0
equipped with a galley kitchen a refinancing wave that is fiz- $156 billion in home-equity before the housing bust, when February March February March
and iPads where home- zling out. lines of credit last year, the lenders were approving more Sources: FactSet; Morningstar (assets) THE WALL STREET JOURNAL.
owners can start the applica- Lenders are betting that of- largest dollar amount since than $300 billion in credit
tion process, is part of a mar-
keting push unusual for the
mortgage industry since the
housing bust.
fers for home-equity lines of
credit, or helocs, will resonate
with many borrowers whose
home values are higher than
2007, the beginning of the
housing bust, according to
new figures from mortgage-
data firm CoreLogic Inc. That
lines a year. Housing analysts
said it is unlikely that equity
lending will return to those
Please see HOME page C2
Fear Amid a Rally:
Wrong Side of the Fracks
Investors Step Up
The bond prices of oil and gas producers vary widely
depending on where the companies operate, as low energy
prices have rendered many drilling regions unprofitable.
Bets on Volatility
BY BEN EISEN ages about $30 million, said
AND SAUMYA VAISHAMPAYAN the magnitude of the rally in
O KLA .
A R K.
U.S. stocks since mid-Febru-
Some investors are so wor- ary made him nervous.
West Texas $1.00 East Texas ried stocks will tumble that “You’re probably going to
81¢ 12¢ they are willing to lose money lose money if nothing hap-
to protect themselves. pens, but you’re absolutely
PHOTOGRAPHS CLOCKWISE FROM TOP LEFT: GETTY IMAGES; BLOOMBERG NEWS (3)
Haynesville Investors going to make money” if

N .M. Shale ABREAST OF poured a re- stocks decline sharply, he tells
Permian Barnett Dallas THE MARKET cord sum clients.
Permian Basin Basin Shale Barnett shale over the Assets in the ProShares
past month Trust Ultra VIX Short-Term
LA . into exchange-traded funds Futures exchange-traded fund,
TEXAS
whose value increases along often called UVXY, and the
Austin with Wall Street’s so-called VelocityShares Daily 2x VIX
Houston fear gauge, the CBOE Volatil- Short-Term exchange-traded
San Antonio
ity Index, or VIX. Many of note, called TVIX, have both
Eagle Ford those wagers are being made
South Texas Shale Offshore via leveraged products that
ETFs that rise along
52¢ 27¢
effectively double the
stakes—a strategy that ana- with the VIX ‘fear
lysts say could protect against
a large decline in U.S. stock
gauge’ have drawn
150 miles MEXICO Gulf of Mexico
indexes but is more likely a record inflows.
recipe for losing money.
Note: Unweighted average of longest-dated unsecured bonds as of March 22, for The demand for the prod-
junk-rated companies with primary operations in each region. Sources: Citi Research; ucts is one of the clearest more than doubled from the
eagle Ford shale Energy Information Administration THE WALL STREET JOURNAL. oFFshore
signs yet that many investors beginning of March through
are starting to position them- Thursday, according to Morn-
Location Is King in the Oil Field

selves for a reversal of a re- ingstar. Together, they have
cent market rally that has almost $1.5 billion in assets.
pulled the Dow Jones Indus- The UVXY and TVIX are
trial Average and S&P 500 in- meant to double the changes
BY RYAN DEZEMBER of Oklahoma, as producers in ties in those areas. those that produce less than dex up by more than 11% since in an index of futures con-
those regions have proved rel- There are a few reasons for 600 barrels a day is the differ- the middle of last month, tracts tied to the VIX. The
For energy investors, it is atively resilient to low com- the divergence, including ter- ence between profits and leaving them essentially flat VIX typically rises when
all about location, location, lo- modity prices, according to rain and the costs of trans- losses, according to energy for the year and causing a stocks fall. Investors can’t
cation. data from Citi Research, part porting oil and gas to market. consultants RBN Energy LLC. sharp decline in the VIX. trade the VIX itself but can
That is the message that of Citigroup Inc. But the biggest factor is sim- Until lately, drilling produc- Roy Larsen, president of buy and sell futures, options
emerges in the prices of bonds Meanwhile, bond prices of ply how much fuel is yielded tivity, or lack of it, had been Larsen Wealth Management in and products tied to the in-
of oil-and-gas companies oper- producers operating in east by wells in certain areas ver- masked by high prices. “When Cumming, Ga., recently added dex.
ating across North America. Texas, North Dakota and the sus other areas for relatively crude was at $100 it didn’t positions in the iPath S&P 500 All told, investors have
Bonds of companies with Gulf of Mexico have fallen to similar costs. In south Texas, matter,” said RBN President VIX Short-Term Futures ex- mounted $3.5 billion in wa-
below-investment-grade credit distressed levels, indicating the difference between wells Rusty Braziel. “Everything was change-traded note, or VXX, gers over the past month that
ratings, or junk bonds, have bond investors—focused on a with initial flows greater than good at $100.” to some of his clients’ portfo- futures tracking the VIX will
held up best for producers in company’s financial strength— the equivalent of 800 barrels At around $40 a barrel, lios, anticipating a rise in vol- rise, according to Nick Cher-
west Texas, Canada and parts aren’t keen on drilling proper- of oil a day compared with Please see OIL page C3 atility. Mr. Larsen, who man- Please see FEAR page C3
Consumer Spending Needs Fuel IRAs Grow as Retirement Mainstay

Individual retirement accounts have grown to about …and rollovers from 401(k) plans to
BY STEVEN RUSSOLILLO and has hovered around 5% that afflicted more than just 31% of total retirement assets from 23% in 2000... IRAs are expected to keep growing.
for much of the past year. the stock market. Temporary TOTAL $600 billion
American consumers are Usually an impediment to capital gains were viewed as $11.6 trillion $24.0 trillion
showing signs of life without spending, it isn’t now. And permanent savings, a devel- Projected*
7.9% 8.1% Annuity reserves 500
cracking their piggy banks. falling further might leave it opment that pushed the sav-
The consumer-spending in unsustainable territory. ing rate below 4% during that
machine revved up at the While the saving rate is time. 26% 28% 401(k)-type plans Est.
400
start of the near its average over the past The saving rate fell even
AHEAD OF year, supported 20 years, that time frame has further in the latter period
THE TAPE by higher in- been skewed by two key peri- from 2003 through 2006, 300
comes. Contin- ods: the technology bubble in when Americans not only felt 44% 33%
Pension plans
ued progress on the late 1990s and the wealthier but were able to
200
that front is expected Mon- mid-2000s housing boom. unlock cash by tapping home
day, with the Commerce De- The former was a period equity. It hit an all-time low
partment scheduled to re- of “irrational exuberance” of 1.9% in July 2005. 31% 100
lease updated data on these A longer time horizon re- 23% IRAs
two indicators. Money in the Bank veals a different story. Since
0
Economists polled by The Personal-saving rate 1960, the average saving rate
Wall Street Journal estimate is 8.3%. And from 1960 2000 2015 2007 ’10 ’15 ’20
12%
personal spending in Febru- through 1995, it averaged Note: Percentages don’t add up to 100% due to rounding *Not adjusted for effects of the coming Labor Department rule on retirement advice
ary rose 0.1% month over 10 about 10%. That means the Sources: Investment Company Institute (assets) and Cerulli Associates (flows),
month, compared with a 0.5% current rate is still very low in both cases incorporating data from government and industry sources THE WALL STREET JOURNAL.
gain in January. Personal in- 8 by some historic standards.
come also is expected to have
gained 0.1% in the same pe-
riod, versus the 0.5% gain in
6
If the recent uptick in
spending is to be sustained,
it will have to be supported
Rule Could Slow IRA Rollovers
January. 4 by continued gains in em- BY ANNE TERGESEN which may be finalized by when recommending invest-
As wages have shown ployment and income, prefer- AND ANNA PRIOR early April, extends a re- ments for IRAs and when sug-
signs of life recently, so have 2 ably wages. Otherwise, to- vamped version of the “fidu- gesting moving money from a
income and spending. But the day’s shopping trips will once A rush of savings from ciary” standard that governs company plan to an IRA in the
0
personal-saving rate tells a again come at the cost of to- company 401(k) plans to IRAs corporate retirement plans to first place, which is known as
different story. At 5.2% in 1995 2000 ’10 morrow’s hangover. may slow just as baby boom- individual retirement ac- a rollover.
January, it matched its high- Source: Commerce Department ers are retiring, as a result of counts. The new rule will make it
est level since February 2015 THE WALL STREET JOURNAL. Email: tape@wsj.com the Labor Department’s antici- Under the rule as last pro- harder for advisers to recom-
pated move to toughen stan- posed, advisers will generally mend such a move, as they
dards for advice on retirement have to avoid conflicts of in- will have to clearly document
INDEX Commodities.................................................... C4 Financial Flashback.......................................C4 Heard on the Street.................................... C6 Markets Digest....................................... C4
Closed-End Funds................................. C5 Currencies........................................................... C2 Global Finance................................................. C3 IPO Scorecard.................................................. C4 Ticker.............................................................. C2 accounts. terest and put their clients’ why it is in a client’s best in-
The proposed regulation, best interests first—both Please see IRA page C2
C2 | Monday, March 28, 2016 NY THE WALL STREET JOURNAL.
MOVING THE MARKET

THE TICKER | Market events coming this week
Monday EIA status report Friday

Previous change in stocks in
Personal income millions of barrels Nonfarm payrolls
Jan., previous up 0.5% Crude oil up 9.4 Feb., previous 242,000
Feb., expected up 0.1% Gasoline down 4.6 March, expected 211,000
Distillates up 0.9
Personal spending Unemployment rate
Jan., previous up 0.5% Earnings expected* Feb., previous 4.9%
Feb., expected up 0.1% Estimate/Year Ago($) March, expected 4.9%
Carnival 0.32/0.20
Construction spending
Tuesday Lululemon 0.80/0.78
Jan., previous up 1.5%
Micron Tech. (0.08)/0.81
Consumer confidence Paychex 0.50/0.46 Feb., expected up 0.3%
Feb., previous 92.2
Mar., expected 93.8 ISM mfg. index
Thursday Feb., previous 49.5
Earnings expected* Initial jobless claims March, expected 50.4
Estimate/Year Ago($) Previous 265,000
Lennar 0.52/0.50 Expected 265,000 U.Mich. consumer index
McCormick 0.69/0.70 March, prelim. 90.0
EIA report: natural gas March, final 90.3
Wednesday Previous change in stocks in
billions of cubic feet Total vehicle sales
Mort. bankers indexes up 15 Domestically produced, at an
annual rate
Purchase, prev. down 1%
JOE SKIPPER/REUTERS
Refinan., prev. down 5% Chicago PMI Feb., previous 17.5 mil.
Feb., previous 47.6 March, expected 17.5 mil.
March, expected 50.0
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN

PARENTHESES) ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF
ECONOMISTS
Cruise-line operator Carnival Corp. is expected to report quarterly earnings of 32 cents a share on Wednesday.
HOME Back on the Home Front

Banks are increasingly pushing home-equity lines of credit and giving
consumers larger spending limits.
bet…home equity will play a
bigger part of our busi-
ness,” said Mike Kinane, se-
nior vice president of home-
the same period in 2005, ac-
cording to Black Knight Finan-
cial Services, a mortgage-data
firm.
we can use the money in sav-
ings for reserves and a vaca-
tion to go visit our kids,” she
said.
Continued from the prior page equity lending at the firm. Vicki Boddy and her hus- The three largest home-eq-
Amount of helocs lenders Average size of helocs
levels in the near future. Home-equity lines can be band, Mike, received a uity lenders increased origina-
extended to homeowners given to borrowers 2015
The push from banks marks risky because they generally $125,000 home-equity line of tions last year.
$119,790
a strategic reversal for many. $400 billion $120,000 have variable interest rates, credit from J.P. Morgan in Feb- Bank of America Corp.
Lenders scaled back on giving which could rise, leading to ruary, after their home was gave out $13 billion in credit
out second liens in the wake of larger monthly payments for appraised at $447,000. lines and home-equity loans,
the housing downturn, and 300 90,000 borrowers. The Boddys have lived in up 17% from 2014; Wells
many cut existing credit lines Many home-equity lines are the same home in Kenmore, Fargo & Co.’s $12.5 billion in
to avoid new defaults. Some also structured to allow bor- Wash., for the home-equity-line originations
lenders exited from the home- rowers to put off principal past 23 years. They wanted to marked a 36% increase; and
equity lending market entirely. 200 2015 60,000 payments for the first 10 renovate the kitchen and other J.P. Morgan gave out $6 billion
The renewed appetite for $156.1B years. Once principal is due, parts of the home and chose in home-equity lines, a 62% in-
these loans comes as property payments can jump by hun- to borrow rather than use sav- crease, according to trade
values continue to rise, in- 100 30,000 dreds or thousands of dollars. ings to pay for it. publication Inside Mortgage
creasing the number of home- For banks, these payment “Having the heloc means Finance.
owners who have equity avail- shocks could lead to an in-
able for withdrawal. crease in delinquencies many
$12.8 billion
Nationally, homes have re- 0 0 years after they have given
gained nearly all of the value ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’02 ’04 ’06 ’08 ’10 ’12 ’14 out the loans.
they lost during the housing Source: CoreLogic THE WALL STREET JOURNAL. Lenders are requiring
bust and are hovering about higher credit scores this time
5% below their all-time peak in home repairs, debt consolida- TD Bank, the U.S. unit of around, and in most cases bor-
2006, according to the S&P/ tion and tuition payments. The Toronto-Dominion Bank that rowers must have at least 20% Fees paid to investment banks globally for
Case-Shiller Home Price Indi- campaign is a first for the has roughly 1,300 branches in equity left in their home after advice on M&A, debt and equity
ces. bank, said a spokes- the eastern U.S., opted for its receiving the credit line. The
J.P. Morgan Chase & woman. PNC Financial Ser- marketing campaign this year average weighted FICO score underwriting and syndicated loans this
Co. began reaching out to vices Group Inc. ramped up in lieu of its usual drive to get for borrowers who received a year, the lowest quarterly total since the
customers in January about home-equity-line marketing to traditional mortgage business home-equity line in the fourth
the benefits of cash-out refi- existing customers last in the spring homebuying sea- quarter of 2015 was 781, on a first quarter of 2009
nances, saying the move is of- year and is planning a bigger son. scale that ranges from 300 to
ten a smart way to tackle push in April. The bank “is placing a 850, compared with 742 for
Banks Stumble in Fee Fall

IRA The volatility that racked
markets earlier this year is
weighing on the performance of
respectively. Initial public offering
volume tumbled 74% world-wide,
according to Dealogic.
Continued from the prior page investment banks this quarter. This slump is hitting the top
terest. Additionally, once the Global investment-banking lines of investment banks as the
money is in an IRA, advisers revenue—fees paid for advice on first quarter comes to a close.
would generally have to avoid mergers and acquisitions, debt Investment banks generated
payments, including commis- and equity underwriting and just $2.3 billion in fees from un-
sions, that create incentives syndicated loans—stands at derwriting equity offerings. That
for them to select one product $12.8 billion this year, according is down 55% from the same pe-
over another. to Dealogic. That is down 36% riod last year and accounts for
ANDREW HARRER/BLOOMBERG NEWS
Advisers to individuals typi- just 18% of overall investment-

cally have an incentive to rec-
ommend rollovers, since they
MONEYBEAT banking revenue in the quarter,
its lowest share in 13 years, ac-
stand to earn fees or commis- from the first quarter of 2015 cording to Dealogic. Revenue
sions on the dollars shifted to and marks the lowest quarterly from IPOs is off 74% from the
IRAs. total since the first quarter of first quarter of 2015.
At stake is a large pot of 2009 at the height of the finan- Fees from selling debt this
money that is expected to cial crisis. year sit at $4.1 billion, down 32%
grow as the baby boomers Markets across the globe from the first quarter of last
continue to leave the work- An expected Labor Department rule would make it harder for individual advisers to push IRAs. tumbled to start the year as in- year.
force. vestors fled risky assets, such as —Stephen Grocer
IRAs hold an estimated $7.3 says Michael Wong, an analyst coming rule before recom- “This rule is going to have a equity and high-yield bonds.
trillion of the nation’s $24 tril- who covers brokerage firms at mending transfers that result chilling effect on these high- The lack of demand caused ONLINE
lion in retirement assets, more Morningstar Inc. in higher fees. As a result, fee, aggressive rollover chas- the issuance of junk bonds and
than the $6.7 trillion in 401(k)- The expected Labor Depart- more money may stay in em- ers.” equity, particularly initial public For more blog
type plans.
Fueled by the rise of the
401(k) and an increasingly mo-
ment rule for retirement sav-
ings would be a change from
current regulation, which al-
ployer-sponsored plans, espe-
cially large plans that leverage
their size to negotiate low in-
Under the fiduciary-duty
rule as last proposed, advisers
typically wouldn’t be able to
offerings, to dry up. The value of
equity and high-yield bonds
coming to market globally this
WSJ
.COM
posts from
MoneyBeat, go to
blogs.wsj.com/
bile workforce, rollovers are lows brokers to provide “suit- stitutional rates. suggest a rollover without quarter is down 46% and 68%, MoneyBeat
expected to amount to $439 able” rather than fiduciary ad- “We’ll definitely see fewer first asking the investor to
billion this year, up from $271 vice, a lower standard. rollovers,” said Jason Roberts, sign a contract that includes
billion in 2010, according to Critics argue current re- a pension-law attorney and detailed information about the
Cerulli Associates, a research quirements permit advisers to chief executive of Pension Re- investment fees and the ad-
firm that specializes in the as- encourage investors to aban- source Institute, a compliance viser’s compensation and obli- Currencies
set-management industry. don 401(k) plans for IRAs that gations to act in the investor’s
Because rollovers now ac- often hold higher-fee invest- best interests, said Fred Reish, U.S.-dollar foreign-exchange rates in late New York trading
count for more than 90% of
the money flowing into IRAs
ments, even though those
added fees can reduce returns. $7.3 trillion a lawyer who specializes in
employee benefits and com- Country/currency in US$
Fri
US$vs,
YTDchg
per US$ (%) Country/currency in US$
Fri
US$vs,
YTDchg
per US$ (%)
each year and carry relatively “In many cases, that’s clearly Value of assets held in IRAs, pensation. That is a require- Thailand baht .02834 35.290 –2.1
Americas
high median balances— not in the best interests of in- more than the $6.7 trillion in ment that many in the finan- Vietnam dong .00004484 22303 0.7
Argentina peso .0690 14.4835 11.9
$100,000 for traditional IRAs vestors,” said Christopher 401(k)-type plans cial-services industry have Europe
Brazil real .2715 3.6835 –7.0
with rollover money, versus Jones, chief investment officer called unworkable and burden- Czech Rep. koruna .04128 24.227 –2.7
Canada dollar .7538 1.3267 –4.1
$40,000 for those funded at Financial Engines Inc., a some. Denmark krone .1498 6.6743 –2.9
Chile peso .001469 680.80 –3.9
solely by annual contributions, Sunnyvale, Calif., company consulting firm. Because ad- An upfront request to sign Euro area euro 1.1168 .8955 –2.7
Colombia peso .0003254 3073.00 –3.2
according to the Investment that mainly manages 401(k) visers will have to research such a contract won’t likely Ecuador US dollar 1 1 unch
Hungary forint .003559 280.98 –3.3
Company Institute trade accounts for participants who clients’ needs better and docu- discourage investors from roll- Mexico peso .0570 17.5388 2.0
Iceland krona .007947 125.83 –3.3
group—they are “all the more want investment help. The ment why recommendations ing 401(k) money to IRAs with Peru new sol .2960 3.379 –1.0
Norway krone .1179 8.4824 –4.1
important to financial-services firm also offers an IRA service. are in their interests, “you advisers they already work Poland zloty .2620 3.8162 –2.7
Uruguay peso .03118 32.0700 7.2
companies and advisers seek- The White House Council of may see recommendations with, said Bing Waldert, man- Russia ruble .01461 68.458 –4.8
Venezuela b. fuerte .158595 6.3054 unch
ing to grow their businesses,” Economic Advisers estimates that are being made today not aging director at Cerulli, but it Sweden krona .1204 8.3048 –1.7
Asia-Pacific Switzerland franc 1.0230 .9775 –2.4
that individual investors sacri- being made in the future," he could affect transactions that
Australian dollar .7509 1.3317 –3.0 Turkey lira .3477 2.8763 –1.4
fice about one percentage said. involve new advisers.
China yuan .1534 6.5204 0.4 Ukraine hryvnia .0381 26.2210 9.3
point of annual returns due to That would be welcome It is likely that some firms
Hong Kong dollar .1289 7.7578 0.1 UK pound 1.4135 .7075 4.3
advice from conflicted advis- news to Robin Diamonte, chief and individual advisers will re-
USD 2,000,000,000 India rupee .01496 66.829 0.9 Middle East/Africa
ers that leads them into investment officer at United spond to the Labor Depart-
Floating Rate Global Notes Indonesia rupiah .0000753 13272 –4.1 Bahrain dinar 2.6523 .3770 unch
due 2017 higher-cost investments—or Technologies Corp., who ment rule by emphasizing low- Japan yen .008843 113.09 –6.0
about $17 billion a year. oversees $44 billion in retire- cost investment options for Egypt pound .1128 8.8686 13.3
- WKN A169LD - Kazakhstan tenge .002884 346.73 2.4 Israel shekel .2607 3.8362 –1.4
ISIN US500769GW89 - CUSIP 500769GW8 Participants in 401(k) plans ment money for the conglom- IRAs. Macau pataca .1253 7.9807 –0.3 Kuwait dinar 3.3089 .3022 –0.4
We would like to announce that the interest who invest in stock mutual erate’s employees. Rob Foregger, co-founder of Malaysia ringgit .2482 4.0298 –6.3 Oman sul rial 2.5942 .3855 0.1
rate for the period of March 29, 2016 to funds pay annual expense ra- “We have various record digital-advice software com- New Zealand dollar .6686 1.4957 2.2
June 29, 2016 has been fixed by the Qatar rial .2747 3.641 unch
Calculation Agent at 0.79010 per cent. p. a. tios of 0.54%, on average, ver- keepers and advisers aggres- pany NextCapital, said “there Pakistan rupee .00954 104.800 –0.1 Saudi Arabia riyal .2666 3.7503 –0.1
The total interest amount will be USD sus 0.71% for IRA owners, ac- sively calling our retirees and will be increased scrutiny on Philippines peso .0215 46.425 –0.9
4,038,288.89. The interest payment date South Africa rand .0646 15.4732 unch
will be June 29, 2016.
cording to the mutual-fund trying to persuade them to roll the cost differential between Singapore dollar .7288 1.3722 –3.3
industry’s Investment Com- over to their platforms, in rollover IRAs and 401(k)s, South Korea won .0008554 1169.03 –0.6 Close Net Chg % Chg YTD%Chg
FRANKFURT AM MAIN,
MARCH 2016
pany Institute. many cases with conflicted which will put increasing Sri Lanka rupee .0067916 147.24 2.1 WSJ Dollar Index 87.97 0.08 0.09 –2.44
KFW Experts say more advisers and misleading marketing ma- downward pricing pressure on Taiwan dollar .03075 32.520 –1.2 Sources: Tullett Prebon, WSJ Market Data Group
may think twice under the terial,” said Ms. Diamonte. IRA fees.”
THE WALL STREET JOURNAL. Monday, March 28, 2016 | C3
GLOBAL FINANCE
Energy Investors Stung by Stock Sales
More firms have shares this year. That is in line sold last March have been ba- ing more energy loans go bad. one knew where energy was
with the amount raised over sically wiped out. The Houston Last June, Energen Corp. Low Energen going to go,” said Bernard
turned to follow-on the same period last year, company’s stock, which ended raised about a net $400 mil- It costs more now for a U.S. Cooney, head of block origina-
share offerings for which went on to be a record the week trading at 8 cents, lion in a sale of 5.7 million energy firm to raise funds. tion for Equity Capital Mar-
year for so-called follow-on was delisted from the New shares, according to Dealogic. kets Americas at UBS Group
cash, diluting holders stock offerings with about $18 York Stock Exchange earlier Following the offering, shares $80 Energen Corp.’s share price AG.
billion raised, according to a this year. This month Goodrich declined by nearly 70% by Feb. So far this year, investors
BY CORRIE DRIEBUSCH Wall Street Journal analysis of said that when it discloses its 16, more than the nearly 60% who partook in energy-com-
AND RYAN DEZEMBER Dealogic data and securities 2015 financial results, its audi- decline of the SIG Oil Explora- 60 pany share sales are doing
filings. tors are likely to express “sub- tion and Production stock in- well. Nearly all the companies
Energy companies tapping The cash injections haven’t stantial doubt” about its abil- dex, an industry benchmark, in that issued new shares in 2016
the stock market to fill their guaranteed stability for the ity to stay in business. the same period. June 17 are trading above their offer
coffers are deepening the pain companies selling shares, Goodrich didn’t respond to a On Feb. 17, Energen re- 40 prices, on average by more
Offering at a
for shareholders. though. request for comment. turned to the market with a 5% discount than 30%, a rise in large part
These firms have come to Denver-based Emerald Oil Much of the money raised similar deal that netted $381.1 attributable to the recent rally
rely on selling new shares to Inc., which sold $27.5 million by oil and gas producers this million by selling 18.2 million 20 in the price of oil.
pay down debt and keep rigs of new shares last year, last year has been through deals shares, according to the com- The 2015 offerings are for
drilling since oil and gas Tuesday filed for chapter 11 that involve banks putting up pany. Feb. 17 the most part faring poorly,
prices began tumbling in late bankruptcy protection. Wun- their own capital to buy a Since that offering the 8.3% discount down more than 20% on aver-
2014. The further commodity derlich Securities Inc. esti- chunk of the company’s stock has rebounded, along 0 age since their deals.
prices and energy stocks slid, mates that a prearranged sale stock—below the market rate with the price of oil, recently 2015 2016 “The risk has increased,”
the more shares that compa- of Emerald’s North Dakota because of the risk they are up 60% from its offering price Sources: FactSet (stock performance), WSJ said Daniel Klausner, manag-
nies have had to sell at ever drilling fields will yield taking on—before selling it to and more than the 29% gain in analysis of SEC filings (dates and discounts) ing director in PwC’s capital-
lower prices to raise the de- roughly enough to pay back its investors. the benchmark index. A THE WALL STREET JOURNAL. markets advisory business and
sired proceeds. This has fur- bank lenders, leaving little for A bigger discount in these spokeswoman for Energen a former banker who worked
ther diluted the stakes held by other creditors and nothing so-called block, or bought, didn’t respond to requests for Street Journal analysis of Se- on deals that involved the
existing shareholders, who are for shareholders. Emerald deals reflects the risk per- comment. curities and Exchange Com- bank buying the stock before
already suffering from falling didn’t respond to a request for ceived by banks when it comes In Energen’s case, in June mission filings. In February, selling it to other investors.
share prices. comment. to energy companies at a time 2015 its shares were sold to the company sold its shares to “The implications of getting
North American oil and gas Those who bought roughly when the price of oil has been Credit Suisse Group AG at a the bank at an 8.3% discount. it wrong could set you back a
producers have raised more $50 million of stock that fluctuating and large U.S. 5% discount to their last trad- “The discount started su- whole year,” he said in an
than $10 billion selling new Goodrich Petroleum Corp. banks have said they are seeing price, according to a Wall perwide this year because no early March interview.
Judge: Bankrupt Law

Grads Can Cancel Debt
BY KATY STECH ruptcy,” said Austin Smith, Ms.
Campbell’s lawyer.
A federal judge ruled that A lawyer for Citibank, a unit
law-school graduates who file of Citigroup Inc., declined to
for bankruptcy protection can comment on the ruling or say
cancel the debt they racked up whether the bank plans to ap-
while studying for the bar peal.
exam, finding such loans are Judge Craig’s ruling isn’t
different from traditional fed- binding on other courts but
eral student loans that are may help other bankruptcy
rarely canceled by bankruptcy. judges with similar disputes
In an opinion filed Thurs- before them.
day, Judge Carla Craig of the Judge Craig isn’t the first
U.S. Bankruptcy Court in federal judge to take up
Brooklyn, N.Y., said bar-exam whether bar-study loans can
loan debt is “a product of an be wiped out in bankruptcy.
arm’s-length agreement on Her ruling conflicts with an
commercial terms” and April 2010 decision from Ala-
doesn’t fall into the category bama Bankruptcy Judge Jack
of a student loan that sticks Caddell, who said a University
with a borrower who files for of Alabama School of Law
bankruptcy. graduate couldn’t cancel a
The decision, which is the $9,475 bar-study loan.
most thorough recent ruling Bankruptcy judges have his-
on the matter, contradicts the torically had a “reflexive knee-
widely accepted notion that jerk reaction that if anything
MATT NAGER/ BLOOMBERG NEWS
student-loan-related debt can like a student loan, it’s nondis-

only be canceled in bankruptcy chargeable,” said John Rao of
under rare cases of extreme fi- the National Consumer Law
nancial hardship. Center. “Judges are now start-
The case involves 36-year-
old Lesley Campbell, a 2009
Pace University School of Law
‘We’re starting to
graduate who had asked to chip away at the
court to cancel the unpaid por- A Chesapeake Energy natural-gas rig in the Barnett shale, where bond prices of some producers have fallen to distressed levels.
tion of a $15,000 loan that she
absolute immunity
took out from Citibank to
study for the bar.
Ms. Campbell, a Brooklyn
resident, didn’t pass the bar
of student loans…’
ing to take a closer look,” he

OIL which drills mostly in the re-
gion and has bonds that trade
at around 1 cent on the dollar,
said earlier this month it ex-
with individual wells that pro-
duce the equivalent of thou-
sands of barrels of oil a day,
result in a profit even at $30
mondback, trades at a big dis-
count to face value.
Varied fortunes such as
those can be found within
exam after graduating and said. Continued from page C1 pects to report a large loss for oil for some producers, said many drilling regions, said Citi
took a secretarial job at a ho- The ruling comes as total though, it is a lot harder to 2015 after writing down the Gabriele Sorbara, an analyst credit analyst Marisa Moss.
tel-management company with student debt has more than cover costs. The sharp decline value of its assets and that its with Topeka Capital Markets. “Even in good areas, it’s very
a $49,000 annual salary, she doubled since 2007. in prices since mid-2014 has auditors are likely to express Citi’s data peg the Permian as county by county.”
said. She filed for bankruptcy “We’ve come to a place forced producers to drill only substantial doubt about its the most-profitable drilling Mr. Braziel’s RBN Energy
in 2014. where student-loan debtors their best prospects. With ability to stay in business. area in North America, and av- studied the Eagle Ford Shale
While her bar-study loan are very much backed into a many investors and energy ex- It is a different story on the erage bond prices have held in south Texas—where bond
was only a small portion of corner,” said Greta LaMoun- ecutives expecting prices to other side of the state. Compa- prices average about 50 cents
Ms. Campbell’s nearly tain Biagi, a bankruptcy lawyer remain at these levels for nies drilling in the Permian on the dollar by Citi’s method-
$300,000 in student-loan debt,
the ruling comes as consumer-
in Amherst, Mass. “This judge
clearly to me understands that
some time, companies that
can’t profit drilling their best
Basin in west Texas have been
among the industry’s best per- 50 vs. 80 ology—examining production
data and financial returns on
advocacy groups and some and is in touch with that.” properties aren’t being given forming, with stocks that have Price discount, in cents, of individual wells. RBN found
federal lawmakers are pushing Several major lenders, in- strong odds of survival by risen in some cases through- bonds for drillers in south that a narrow band of land
for students to be able to use cluding Wells Fargo & Co., PNC debt investors. out the downturn. Several lay- Texas and those in west Texas where wells produce initial
bankruptcy to get at least Financial Services Group Inc., Consider east Texas, which ers of oil- and gas-bearing flows greater than the equiva-
some relief. Discover Financial Services Citi defines to include the rock are stacked in the Perm- lent of 800 barrels of oil a day
The U.S. Supreme Court re- and SLM Corp., better known Haynesville, Bossier and Bar- ian, giving producers more steady at about 80 cents on are generally profitable at $38
cently declined to hear a case as Sallie Mae, offer bar-exam nett shales. The unweighted chances to hit pay dirt from the dollar. a barrel. But just outside that
that could have made it easier loans typically of up to average price for the longest- each well. Meanwhile, these Still, there is wide variance area, wells likely won’t pro-
to get rid of student-loan debt. $15,000 to pay for a law-school dated unsecured junk bonds of producers reap the same sav- within the Permian. Diamond- duce enough to justify drilling
The White House, however, student’s time after gradua- companies with primary oper- ings on drilling and supplies— back Energy Inc.’s bonds at current prices, Mr. Braziel
said last year it would examine tion—a time when many study ations there has plummeted to which have fallen with oil trade at a premium to their is- said.
whether it should be easier for for the bar exam but haven’t less than 12 cents on the dol- prices—as competitors in sue price, yet debt sold by Ap- “It’s the difference between
student loans to be canceled begun working in the field. lar, the bank said. other areas. proach Resources Inc., which having a bond yield of 8% ver-
by bankruptcy, opening the The loans are similar to res- Goodrich Petroleum Corp., The low costs, combined drills one county south of Dia- sus 80%,” he said.
door for student debt made by idency and relocation loans
private lenders to be treated that medical students take out,
on par with credit-card debt
and mortgages.
“We’re starting to chip
away at the absolute immunity
said Mark Kantrowitz, a Chi-
cago-based publisher
Cappex.com, a website to con-
nect students with colleges
at
FEAR futures and sell cheaper
shorter-dated VIX futures,
they typically post negative
returns over long periods of
trading volume on the ETF
touched a record high of 53.8
million shares in January.
With the VIX falling last
the highs of last month, to
6.93 percentage points, ac-
cording to Bank of America
Merrill Lynch data.
of student loans from bank- and scholarships. Continued from page C1 time. week, many traders have Investors point to reduced
ney, head of exchange-traded The difference between the again increased their bets, expectations for Federal Re-
products for Janus Capital levels in the front-month and sensing complacency on the serve interest-rate increases
Group, which owns Velocity- second-month VIX futures part of other investors. and expansive policy from the
Shares. contracts was 1.70 on Thurs- “Investors have invested a European Central Bank for the
The VIX, which closed at day, compared with 0.36 at significant amount of money thaw. Yet concerns about
its 2016 high of 28.14 on Feb. the end of last year, indicat- in double-levered VIX prod- China’s economy, low oil
11, dropped to as low as 13.75 ing a bigger drag on the per- ucts in the last few days, as prices and weak earnings
on Tuesday as the S&P 500 re- formance of the products. they’ve seen the VIX fall to among U.S. companies haven’t
covered. The VIX closed Traders say the leveraged levels they wouldn’t have gone away, prompting some
Thursday at 14.74. A big swing products are particularly use- thought to be on the horizon,” traders to take action.
higher in volatility could de- ful for short-term trading be- said Rocky Fishman, an equity Jea Yu, a day trader in
liver gains for investors who cause they require less money derivatives strategist at North Bethesda, Md., who
time it right. When the VIX upfront than would be needed Deutsche Bank. also runs an online chat room
was rising between the begin- for the equivalent nonlever- After a sharp drop at the for traders, bought 3,000
ning of the year and Feb. 11, aged bets on the VIX. Buying beginning of the year, mar- shares of UVXY at 11:20 a.m.
BRENDAN MCDERMID/REUTERS
for example, UVXY more than a share of one of the products kets have posted broad-based on Tuesday as stocks slipped,
doubled in value. Since then, it essentially equates to two gains. U.S. crude-oil futures and then sold them about half
is down about 60%. bets on rising volatility, offer- are up 51% from last month’s an hour later, netting more
The flip side of that advan- ing the potential for bigger low, and copper futures are than $700. “The longer you
tage is that the products reg- gains and losses. up 4.7% for the year. hold, the more risk you have,”
ularly shrink in value for The UVXY has had some In the corporate-bond mar- Mr. Yu said. The advantage of
those holding them longer of its highest-volume trading ket, the extra yield investors going into and out of the
than a day. Because the prod- days ever during the turbu- demand to hold high-yield product during the same trad-
The U.S. Supreme Court recently declined to hear a case that ucts consistently buy more- lent market environment of bonds has dropped by almost ing session, he said, is that
could have made it easier to get rid of student-loan debt. expensive longer-dated VIX recent months. Average daily two percentage points since “you have closure.”
C4 | Monday, March 28, 2016 THE WALL STREET JOURNAL.
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
Last Year ago Last Year ago
17515.73 t 86.57, or 0.49% last week Trailing P/E ratio * 17.90 16.60 2035.94 t 13.64, or 0.67% last week Trailing P/E ratio * 23.53 20.52 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 16.50 16.30 High, low, open and close for each of P/E estimate * 17.55 17.62
the past 52 weeks Dividend yield 2.59 2.52 the past 52 weeks Dividend yield 2.23 1.99 IPOs in the U.S. Market
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15
Initial public offerings of stock expected this week; might include some
Week's high offerings, U.S. and foreign, open to institutional investors only via the
Current divisor 0.14602128057775 65-day moving average
DOWN UP 19200 2150 Rule 144a market; deal amounts are for the U.S. market only
t
Monday's open Friday's close
Symbol/ Pricing
Friday's close Monday's open 18600 2100 Expected primary Shares Range($)
t
pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)

Week's low 18000 2050 3/29 2/10 Sensus Healthcare SRTS 1.8 10.00/ Joseph Gunnar & Co,
Designs, manufactures A 12.00 Feltl & Co,
and markets products for Neidiger Tucker
17400 2000 the treatment of skin Bruner
cancer.
200-day moving average
16800 1950
Lockup Expirations
200-day moving average
Below, companies whose officers and other insiders will become eligible
16200 1900
to sell shares in their newly public companies for the first time. Such
sales can move the stock’s price.
65-day moving average 15600 1850
Lockup Offer Offer amt Through Lockup
expiration Issue date Issuer Symbol price($) ($ mil.) Thursday (%) provision
Bars measure the point change from Monday's open
15000 1800 March 28 Sept. 30, ’15 Edge Therapeutics Inc EDGE 11.00 92.5 –36.6 180 days
MA M J J A S O N D J F M MA M J J A S O N D J F M
Sept. 30, ’15 Mirna Therapeutics Inc MIRN 7.00 48.7 –32.9 180 days
Primary
NYSE weekly volume, in billions of shares market Composite 20.9
t
t
Sept. 30, ’15 Performance Food Group Co PFGC 19.00 316.8 180 days
Financial Flashback
30 –25.5
20 The Wall Street Journal, March 28, 1997 Sept. 30, ’15 Surgery Partners Inc SGRY 19.00 301.2 180 days
10 March 29 Oct. 1, ’15 NovoCure Ltd NVCR 22.00 173.3 –40.3 180 days
Intel Corp. plans to start shipping a server, or network-
0 host computer, that allows companies to install and April 3 Oct. 6, ’15 Aclaris Therapeutics Inc ACRS 11.00 63.3 34.3 180 days
MA M J J A S O N D J F M manage desktop computers from a central location.
Oct. 6, ’15 PURE Storage Inc PSTG 17.00 488.8 –23.2 180 days
* P/E data based on as-reported earnings from Birinyi Associates Inc.
Sources: Dealogic; WSJ Market Data Group
Major U.S. Stock-Market Indexes Nasdaq Composite

Latest Week 52-Week % chg t 22.14, or -0.46% IPO Scorecard
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann.
Dow Jones
last week
Performance of IPOs, most-recent listed first
Industrial Average 17648.94 17399.01 17515.73 -86.57 -0.49 15660.18 l 18312.39 -0.9 0.5 6.5 % Chg From % Chg From
Transportation Avg 8114.27 7848.57 7926.02 -149.67 -1.85 6625.53 l 8904.68 -8.7 5.6 8.7 Company SYMBOL Thur3s Offer 1st-day Company SYMBOL Thur’s Offer 1st-day
4820
Utility Average 661.25 650.93 660.20 1.66 0.25 541.97 l 663.19 14.5 14.3 9.9 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Total Stock Market 21121.79 20727.18 20882.81 -167.64 -0.80 18663.11 l 22287.78 -3.1 -1.0 8.7 Corvus 14.25 –5.0 ... Proteostasis Thera 9.83 22.9 48.0
Barron's 400 516.17 500.23 505.17 -8.54 -1.66 446.15 l 586.75 -10.1 -2.2 7.6 4780 CRVS March 23/$15.00 PTI Feb. 11/$8.00
Senseonics 2.71 –4.9 –4.9 BeiGene 28.03 16.8 –1.0
Nasdaq Stock Market SENS March 18/$2.85 BGNE Feb. 3/$24.00
4740
Nasdaq Composite 4835.60 4734.77 4773.50 -22.14 -0.46 4266.84 l 5218.86 -1.8 -4.7 13.7 Hutchison China MediTech 13.49 –0.1 0.7 Editas Medicine 31.31 95.7 72.0
Nasdaq 100 4450.76 4374.71 4405.53 -5.30 -0.12 3947.80 l 4719.05 2.1 -4.1 16.3 HCM March 17/$13.50 EDIT Feb. 3/$16.00
4700
Standard & Poor's Syndax Pharmaceuticals 12.62 5.2 5.1 Yirendai 9.59 –4.1 5.4
17 18 21 22 23 24
-0.67 l March SNDX March 3/$12.00 YRD Dec. 18/$10.00
500 Index 2056.60 2022.49 2035.94 -13.64 1829.08 2130.82 -1.0 -0.4 9.4
MidCap 400 1433.79 1399.84 1413.86 -15.94 -1.11 1238.82 l 1549.44 -5.9 1.1 7.5 AveXis 27.41 37.1 51.9 Atlassian 23.82 13.4 –14.3
DJ US TSM AVXS Feb. 11/$20.00 TEAM Dec. 10/$21.00
SmallCap 600 679.23 658.20 666.28 -12.51 -1.84 588.26 l 742.13 -6.3 -0.8 8.0
t 167.64, or -0.80%
Other Indexes Sources: WSJ Market Data Group; FactSet Research Systems
last week
Russell 2000 1103.63 1065.62 1079.54 -22.14 -2.01 953.72 l 1295.8 -12.4 -5.0 4.5 Other Stock Offerings
NYSE Composite 10232.80 10003.98 10086.60 -136.82 -1.34 9029.88 l 11239.66 -7.2 -0.6 3.6
Value Line 452.57 437.93 443.46 -8.49 -1.88 383.82 l 522.42 -12.4 -0.5 3.0
Secondaries and follow-ons expected this week in the U.S. market
21060
NYSE Arca Biotech 2982.25 2792.35 2874.65 37.56 1.32 2642.53 l 4431.87 -26.8 -24.6 17.1 Symbol/
NYSE Arca Pharma 497.60 489.67 492.39 2.57 0.52 477.25 l 605.94 -13.5 -9.1 6.5 Primary Amount Thursday’s
20940 Expected Issuer/Business exchange ($mil.) price ($) Bookrunner(s)
KBW Bank 66.47 63.84 64.80 -1.05 -1.60 56.51 l 80.41 -9.6 -11.3 4.6
PHLX§ Gold/Silver 72.62 65.45 67.48 -3.69 -5.19 38.84 l 75.36 -1.3 49.0 -21.0 March. 30 ArcelorMittal SA MT 1906.6 4.26 GS, BofA ML, Credit Agricole CIB,
PHLX§ Oil Service 164.08 152.70 157.82 -5.42 -3.32 128.61 l 224.32 -17.3 0.1 -13.0 20820 Metal & Steel N; Intl; Intl Barclays, BNP Paribas, Citi,
JPM, SG Corp & Invs. Bnkg.
PHLX§ Semiconductor 677.56 658.58 666.14 -8.89 -1.32 559.18 l 746.08 -1.3 0.4 15.7
CBOE Volatility 16.44 13.75 14.74 0.72 5.14 11.95 l 40.74 -6.7 -19.1 2.8 20700
17 18 21 22 23 24
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group March Off the Shelf
“Shelf registrations” allow a company to prepare a stock or bond for
sale, without selling the whole issue at once. Corporations sell as
conditions become favorable. Here are the shelf sales, or takedowns,
International Stock Indexes Commodities and over the last week:
Region/Country Index Close
Latest Week
% chg Low
52-Week Range
Close High
YTD
% chg
Currencies Takedown date/ Deal value Registration
Last Week YTD
Issuer/Industry Registration date ($ mil.) (mil.) Bookrunner(s)
Close Net chg %Chg % chg
World The Global Dow 2279.83 –2.06 2047.44 • 2639.52 –2.4
Vitae Pharmaceuticals March 24 $35.0 $200.0 Piper Jaffray,
DJ Global Index 302.22 –1.37 272.15 • 341.62 –1.9 DJ Commodity 476.05 -9.43 -1.94 4.90
Healthcare May 10,315 BMO Cptl Mkts
DJ Global ex U.S. 203.93 –2.02 184.52 • 246.68 –3.0 Reuters-Jefferies CRB 172.18 -4.17 -2.36 -2.32
Global Dow Euro 1922.95 –0.93 1699.54 • 2305.98 –5.0 Crude oil, $ per barrel 39.46 -1.68 -4.08 6.53 Quest Resource Holding March 24 $3.3 $50.0 Roth Cptl Ptnrs
Natural gas, $/MMBtu 1.806 -0.101 -5.30 -22.72 Utility & Energy Aug. 25,314
DJ TSM Global 3099.55 –1.54 2795.15 • 3510.20 –2.1
Global ex U.S. 2062.58 –1.85 1863.63 • 2482.77 –2.8 Gold, $ per troy oz. 1221.40 -32.40 -2.58 15.19 Michaels Companies March 23 $393.0 ... JPM, BofA ML
Developed ex U.S. 2024.41 –2.09 1843.94 • 2403.18 –3.9 U.S. Dollar Index 96.27 1.19 1.25 -2.45 Retail July 9,315
Global Small-Cap 4141.15 –1.49 3665.30 • 4716.91 –1.7 WSJ Dollar Index 87.97 1.05 1.21 -2.44 Shell Midstream Partners March 23 $349.3 ... Barclays
Global Large-Cap 2949.59 –1.55 2667.12 • 3337.56 –2.2 Euro, per dollar 0.8955 0.0081 0.91 -2.75 Oil & Gas Nov. 3,315
Americas DJ Americas 486.82 –0.94 433.35 • 524.44 –0.1 Yen, per dollar 113.09 1.54 1.38 -5.99
Brazil Sao Paulo Bovespa 49657.39 –2.28 37497.48 • 58051.61 14.6 U.K. pound, in dollars 1.41 -0.03 -2.36 -4.08
Sun Communities March 23 $349.1 ... BofA ML, Citi
Canada S&P/TSX Comp 13358.11 –1.03 11843.11 • 15450.87 2.7
52-Week
Real Estate/Property April 17,315
Mexico IPC All-Share 45647.57 0.36 40265.37 • 45773.31 6.2
Low Close(l) High % Chg Celator Pharmaceuticals March 23 $38.0 $75.0 Stifel
Chile Santiago IPSA 3086.06 –2.09 2759.77 • 3359.04 4.8 Healthcare Feb. 3,314
DJ Commodity 420.23 584.70 -13.98
Europe Stoxx Europe 600 335.10 –1.93 303.58 • 414.06 –8.4 l
Adecoagro SA March 22 $140.4 $405.3 MS
Stoxx Europe 50 2781.91 –1.94 2566.26 • 3591.47 –10.3 Reuters-Jefferies CRB 155.01 l 231.77 -21.55
Agribusiness Sept. 24,313
Eurozone Euro Stoxx 319.05 –1.92 284.92 • 392.35 –7.6 Crude oil, $ per barrel 26.21 l 61.43 -23.27
Euro Stoxx 50 2986.73 –2.39 2680.35 • 3828.78 –8.6 Natural gas, $/MMBtu 1.64 l 3.02 -32.41 Microvision March 22 $6.0 $25.0 Northland Securities
Belgium Bel-20 3368.90 –1.50 3130.76 • 3905.71 –9.0 Gold, $ per troy oz. 1050.80 l 1272.00 1.35
Computers & Electronics Dec. 16,313
France CAC 40 4329.68 –2.98 3896.71 • 5268.91 –6.6 Trinseo SA March 21 $326.3 $1,289.5 GS
Germany DAX 9851.35 –1.00 8752.87 • 12374.73 –8.3 U.S. Dollar Index 93.23 l 100.20 -1.14 Chemicals March 15,316
Israel Tel Aviv 1485.90 0.18 1383.34 • 1723.56 –2.8 WSJ Dollar Index 84.11 l 91.66 1.02
Italy FTSE MIB 18165.84 –2.39 15773 • 24031 –15.2
Euro, per dollar 0.86 l 0.95 -2.49
CareTrust REIT March 21 $111.0 $750.0 KeyBanc, WFS,
Netherlands AEX 437.49 –1.64 382.61 • 509.24 –1.0
Yen, per dollar 111.39 l 125.62 -5.08
Real Estate/Property Jan. 8,316 BMO Cptl Mkts,
James, Barclays
R.
Spain IBEX 35 8789.80 –2.89 7746.3 • 11866.4 –7.9
Sweden SX All Share 475.89 –1.92 435.21 • 564.90 –5.8 U.K. pound, in dollars 1.39 l 1.59 -5.02
Switzerland Swiss Market 7775.58 –0.49 7496.62 • 9526.79 –11.8
Real-time U.S. stock
U.K. FTSE 100 6106.48 –1.34 5536.97 • 7103.98 –2.2 Public and Private Borrowing
Asia-Pacific
Australia
DJ Asia-Pacific TSM 1347.38
S&P/ASX 200 5084.20
–0.66
–1.91
1190.45
4765.3 •
• 1619.39 –3.0
5982.7 –4.0
WSJ
.COM
quotes are available on
WSJ.com. Track most-
active stocks, new
Treasurys
China Shanghai Composite 2979.43 0.82 2655.66 • 5166.35 –15.8
highs/lows, mutual
Monday, March 28 Tuesday, March 29
Hong Kong Hang Seng 20345.61 –1.58 18319.58 • 28442.75 –7.2
funds and ETFs. Auction of 13-week bills; Auction of 52-week bills;
India S&P BSE Sensex 25337.56 1.54 22951.83 • 29044.44 –3.0 announced on Mar.24; settles on Mar.31 announced on Mar.24; settles on Mar.31
Japan Nikkei Stock Avg 17002.75 1.66 14952.61 • 20868.03 –10.7 Plus, get deeper money-flows data and
Singapore Straits Times 2847.39 –2.04 2532.70 • 3539.95 –1.2 email delivery of key stock-market Auction of 26-week bills; Auction of five-year notes;
South Korea Kospi 1983.81 –0.42 1829.81 • 2173.41 1.1 data. announced on Mar.24; settles on Mar.31 announced on Mar.24; settles on Mar.31
Taiwan Weighted 8704.97 –1.20 7410.34 • 9973.12 4.4 All are available free at Auction of two-year notes; Auction of four-week bills;
Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com
announced on Mar.24; settles on Mar.31 announced on Mar.28; settles on Mar.31
Wednesday, March 30
Consumer Rates and Returns to Investor Benchmark Yields and Rates Auction of seven-year notes;
U.S. consumer rates Selected rates Treasury yield curve Forex Race announced on Mar.24; settles on Mar.31
A consumer rate against its 5-year CDs Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs.
benchmark over the past year notes and bonds major U.S. trading partners Public and Municipal Finance
Bankrate.com avg†: 1.29%
8% Deals of $ 150 million or more expected this week
Barclays 2.05% 5.00%
1.50% 6 WSJ Dollar index Final Total Rating Bookrunner/
Wilmington, DE 888-720-8756 s
t 4.00 4 Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
Nationwide Bank 2.05%
Five-year CD yields 1.00 2
Columbus, OH 855-255-1176 3.00 0 March 28prelim. Florida Dept 195.0 N.R. N.R. N.R. Preliminary/—
Federal-funds 0.50 First Internet Bank of Indiana 2.07% –2
target rate 2.00 s
of
Indianapolis, IN 888-873-3424 –4
One year ago
t
t 0.00
t Euro Transportation
Sallie Mae 2.10% 1.00 –6 s
Thursday –8 Yen
Murray, UT 877-346-2756
–0.50 0.00 –10 March 29prelim. Central Florida 154.7 N.R. N.R. N.R. Preliminary/
AM J J A S ON D J F M State Farm Bank 2.10%
1 3 6 1 2 3 5 710 30 2015 2016 Expressway Broad and
2015 2016 Bloomington, IL 877-734-2265
month(s) years Au Cassel
Yield/Rate (%) 52-Week Range (%) 3-yr chg maturity
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
March 30Dec. 1, 2046 Pennsylvania 204.7 A- A3 N.R. M. Stanley/Clark Hill
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25
Prime rate* 3.50 3.50 3.25 l 3.50 0.25
Corporate Borrowing Rates and Yields Turnpike Plc/Zarwin Baum
Commission DeVito Kaplan
Libor, 3-month 0.63 0.62 0.27 l 0.64 0.35 Spread +/- Treasurys,
Yield (%) in basis pts, 52-wk Range Total Return
Money market, annual yield 0.26 0.26 0.22 l 0.42 -0.24 Bond total return index Last Wk ago Last Low High 52-wk 3-yr March 31prelim. Black Belt 1,000.0 N.R. N.R. N.R. RBC Cptl
Five-year CD, annual yield 1.29 1.28 1.28 l 1.53 0.07
10-yr Treasury, Ryan ALM 1.902 1.903 2.83 2.77 Energy Gas Dt Mkt/—
30-year mortgage, fixed† 3.70 3.68 3.57 l 4.22 -0.19
DJ Corporate 3.036 3.088 2.25 3.36
15-year mortgage, fixed† 2.93 2.90 2.85 l 3.42 -0.11
Aggregate, Barclays Capital 2.300 2.300 56 43 70 1.20 2.34 April 1 prelim. Tampa City 200.0 N.R. N.R. N.R. M. Stanley/—
Jumbo mortgages, $417,000-plus† 4.23 4.24 4.00 l 4.97 0.04
High Yield 100, Merrill Lynch 6.863 6.727 540 389 741 -5.051 1.161 -Florida
Five-year adj mortgage (ARM)† 3.38 3.44 3.14 l 3.86 0.45
Fixed-Rate MBS, Barclays 2.490 2.430 24 13 36 1.99 2.60
New-car loan, 48-month 3.22 3.18 2.71 l 3.38 0.58 Source:Thomson Reuters/Ipreo
Muni Master, Merrill 1.644 1.656 -3 -9 7 3.210 3.073
HELOC, $30,000 4.65 4.29 4.24 l 5.01 -0.22
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan n.a. 6.167 n.a. 359 538 n.a. n.a. Corporate Debt
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch None scheduled this week
THE WALL STREET JOURNAL. Monday, March 28, 2016 | C5
CLOSED-END FUNDS
wsj.com/funds
Listed are the 300 largest closed-end funds as Prem12 Mo Prem12 Mo
measured by assets. Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld
Closed-end funds sell a limited number of shares and
invest the proceeds in securities. Unlike open-end Eaton Vance FR Incm Tr EFT 14.13 12.96 -8.3 7.5 NuveenMuniAdvantageFd NMA 15.65 14.25 -8.9 5.5
funds, closed-ends generally do not buy their shares EatonVnc SrFltRate EFR 13.72 12.71 -7.4 8.1 NuveenMuniIncoOpp Fd NMZ 13.75 13.97 +1.6 6.5
back from investors who wish to cash in their holdings.
Instead, fund shares trade on a stock exchange. 1st Tr Sr Fltg Rt Fd II FCT 13.71 12.72 -7.2 7.3 Nuveen Muni Mkt Opp NMO 15.59 14.21 -8.9 5.4
a-The NAV and market price are ex dividend. b-The Invesco Credit Opps Fund VTA 11.95 10.50 -12.1 9.0 Nuveen Mun Opportunity Fd NIO 15.91 14.67 -7.8 5.9
NAV is fully diluted. c-NAV is as of Thursday’s close. d-
NAV is as of Wednesday’s close. e-NAV assumes rights Invesco Senior Income Tr VVR 4.45 3.97 -10.8 8.4 Nuveen Muni Value Fund NUV 10.37 10.33 -0.4 3.8
offering is fully subscribed. f-Rights offering in process. Nuveen Credit Strt Inc Fd JQC 8.96 7.80 -12.9 8.1 Nuveen Performance Plus NPP 16.53 NA NA 5.7
g-Rights offering announced. h-Lipper data has been
adjusted for rights offering. j-Rights offering has NuvFloatRteInco Fd JFR 10.86 9.87 -9.1 7.7 Nuveen Premium Inco Muni NPI 15.71 14.35 -8.7 5.7
expired, but Lipper data not yet adjusted. l-NAV as of Nuv Float Rte Opp Fd JRO 10.78 9.71 -9.9 8.4 Nuveen Prem Inco Muni 2 NPM 15.75 14.56 -7.6 5.9
previous day. o-Tender offer in process. v-NAV is
Nuveen Senior Income Fund NSL 6.50 NA NA 7.8 Nuveen Prem Inco Muni 4 NPT 14.67 13.71 -6.5 5.9
converted at the commercial Rand rate. w-Convertible
Note-NAV (not market) conversion value. y-NAV and Pioneer Floating Rate Tr PHD 12.04 11.06 -8.1 6.8 Nuveen Premier Muni Inc NPF 15.44 14.14 -8.4 5.7
market price are in Canadian dollars. NA signifies that Voya Prime Rate Trust PPR 5.53 4.98 -9.9 7.1 Nuveen Quality Income NQU 16.11 NA NA 5.6
the information is not available or not applicable. NS
signifies fund not in existence of entire period. High Yield Bond Funds Nuveen Quality Muni Fund NQI 15.46 14.13 -8.6 4.9
12 month yield is computed by dividing income AllianceBernstein Glbl AWF 12.58 11.63 -7.6 10.0 Nuveen Select Quality NQS 15.97 14.60 -8.6 5.4
dividends paid (during the previous twelve months for
periods ending at month-end or during the previous Babson Gl Sh Dur Hi Yd BGH 18.19 16.72 -8.1 12.6 Nuveen Sel TF NXQ 14.81 14.09 -4.9 3.8
fifty-two weeks for periods ending at any time other BlackRock Corp Hi Yd Fd HYT 10.88 9.98 -8.3 10.1 PIMCO MuniFd PMF 13.39 15.84 +18.3 6.2
than month-end) by the latest month-end market price
BlkRk Debt Strat Fd DSU 3.88 3.45 -11.1 8.0 Pimco Muni Inc II PML 12.51 13.03 +4.2 6.0
adjusted for capital gains distributions.
Source: Lipper BlackRockDurInco Tr BLW 16.09 14.71 -8.6 8.5 PIMCO Muni Inc III PMX 11.31 11.86 +4.9 6.2
Thursday, March 24, 2016 Credit Suisse High Yld DHY 2.32 2.21 -4.7 13.9 Pioneer Mun Hi Inc Adv Tr MAV 12.47 13.56 +8.7 7.3
52 wk DoubleLine Incm Solutions DSL NA 16.72 NA 12.0 Pioneer Mun Hi Incm Tr MHI 13.37 13.84 +3.5 6.4
Prem Ttl Dreyfus Hi Yld Fd DHF 3.24 3.13 -3.4 11.7 Putnam Tr PMM 8.08 7.61 -5.8 5.8
Fund (SYM) NAV Close /Disc Ret
Fst Tr Hi Inc Lg/Shrt Fd FSD 16.57 14.60 -11.9 8.7 PutnamMuniOpportunities PMO 13.51 12.61 -6.7 5.7
General Equity Funds Guggenheim Strat Opps Fd GOF 16.76 16.93 +1.0 13.7 Wstrn Asset Mngd Muni MMU 14.42 14.90 +3.3 5.3
Adams Divers Equity Fd ADX 14.82 12.47 -15.9 -3.6 Ivy High Income Opps Fund IVH 14.19 12.72 -10.4 13.5 WesternAssetMunTrFund MTT 22.57 NA NA 4.2
Boulder Grwth & Inco BIF 7.69 NA -7.0 NexPoint Credit Strat Fd NHF 20.61 NA NA 49.5 Single State Muni Bond
Central Securities CET 23.81 18.87 -20.7 -3.6 Nuveen Gl Hi Incm Fd JGH 15.67 13.68 -12.7 12.5 BlackRock CA Municipal Tr BFZ 16.00 16.26 +1.6 5.4
CohSteer Opprtnty Fd FOF 12.11 10.60 -12.5 -9.2 Nuveen High Incm Dec18 JHA 9.71 10.04 +3.4 NS BlkRk MuniHldgs CA Qlty MUC 16.07 15.65 -2.6 5.3
Cornerstone Strategic CLM 14.09 14.38 +2.1 -12.1 Pioneer High Income Trust PHT 9.34 9.91 +6.1 15.2 Blkrck MunHl NJ Qlty MUJ 15.95 14.99 -6.0 6.0
EtnVnc TaxAdvDiv EVT 20.79 19.04 -8.4 1.2 Prud Gl Shrt Dur Hi Yd GHY 16.12 14.67 -9.0 9.8 BlRk MuHldg NY Qlty MHN 15.17 NA NA 5.3
Gabelli Dividend & Incm GDV 20.72 18.01 -13.1 -8.6 Prudentl Sh Dur Hi Yd Fd ISD 16.45 15.16 -7.8 9.3 BlkRk MuniYld CA Fd MYC 16.50 NA NA 5.4
Gabelli Equity Trust GAB 5.64 5.32 -5.7 -8.0 Wells Fargo Incm Opps Fd EAD 8.23 7.50 -8.9 11.4 BlkRk MuniYld CA Quality MCA 16.32 16.07 -1.5 5.4
Genl American Investors GAM 37.10 30.65 -17.4 -8.9 Wstrn Asset Glbl Hi Inco EHI 10.11 9.01 -10.9 BlkRk MuniYld MI Qlty MIY 15.80 14.48 -8.4 6.0
13.8
HnckJohn TxAdv HTD 25.05 22.31 -10.9 13.1 Wstrn Asset High Inco II HIX 6.77 6.54 -3.4 BlRk Muyld NY Qlty MYN 14.55 14.00 -3.8 5.4
13.7
Liberty All-Star Equity USA 5.80 4.86 -16.2 -7.2 Eaton Vance CA Mun Bd EVM 12.91 12.83 -0.6 5.4
Wstrn Asset Opp Fd HIO 5.11 4.71 -7.8 9.4
Royce Micro-Cap RMT 8.16 6.80 -16.7 -18.1 Invesco CA Value Mun Incm VCV 13.92 13.84 -0.6 5.8
West Asst HY Def Opp Fd HYI 15.22 13.91 -8.6 9.8
Royce Value Trust RVT 13.53 11.31 -16.4 -12.6 Invesco PA Value Mun Incm VPV 14.50 13.34 -8.0 5.9
Other Domestic Taxable Bond Funds
Source Capital SOR 38.71 35.71 -7.7 -0.3 Invesco Inv Grade NY Muni VTN 15.25 15.13 -0.8 5.4
Ares Dynamic Credit Alloc ARDC NA 13.25 NA 11.3
Tri-Continental TY 23.28 19.66 -15.5 -5.1 Nuveen California AMT NKX 16.20 NA NA 5.5
Babson Cap Corp Inv MCI NA 17.10 NA 7.2
Zweig Fund ZF 14.35 12.69 -11.6 -11.4 Nuveen CA Div Fnd NAC 16.08 15.99 -0.6 5.8
BlackRock Multi-Sector IT BIT 17.65 15.61 -11.6 9.7
Specialized Equity Funds NuveenCA 3 NZH 14.95 15.04 +0.6 5.5
BlackRock Taxable Mun Bd BBN 23.00 22.65 -1.5 7.1
Adams Natural Rscs Fd PEO 21.24 17.85 -16.0 -16.5 Nuveen CA Muni Value NCA 10.58 10.85 +2.6 4.3
Doubleline Oppor Credit DBL NA 26.59 NA 9.6
AllnzGI NFJ Div Interest NFJ 14.02 12.07 -13.9 -15.9 NuveenMDPremiumIncome NMY 14.90 13.19 -11.5 5.1
Duff & Phelps Utl & Cp Bd DUC 10.08 9.39 -6.8 6.4
AlpnGlblPrProp AWP 6.55 5.41 -17.4 -12.1 Nuveen MI Quality Income NUM 15.90 14.23 -10.5 5.5
EtnVncLtdFd EVV NA 13.05 NA 9.8
BlkRk Enh Cap Inco CII 14.40 13.19 -8.4 -3.2 Nuveen NJ Div NXJ 15.85 14.11 -11.0 5.7
Franklin Ltd Duration IT FTF NA 11.17 NA 6.9
BlkRk Engy Res Tr BGR 14.22 12.85 -9.6 -30.9 NuvAMTFreeMuniIncm NRK 14.68 13.32 -9.3 5.3
GuggenhBondMnegDurTr GBAB 22.93 23.04 +0.5 7.9
BlackRock Enh Eq Div Tr BDJ 8.51 7.35 -13.6 -3.2 Nuveen NY Div Fnd NAN 15.52 14.70 -5.3 5.5
KKR Income Opps Fund KIO 15.70 14.09 -10.3 11.5
Blackrock Global Trust BOE 13.28 11.43 -13.9 -8.9 Nuveen Ohio Qual Income NUO 17.13 NA NA 5.3
MFS Charter MCR 9.05 NA NA 9.2 Nuveen Pa Investment Qual NQP 15.83 14.22 -10.2 5.7
BlkRk Health Sci BME 32.03 34.66 +8.2 -3.1 MFS Multimkt MMT 6.50 NA NA 9.3
BlkRk Intl Grwth&Inco BGY 6.46 5.69 -11.9 -12.1 NuveenVAPremiumIncome NPV 14.77 14.16 -4.1 5.0
Nuveen Build Am Bd Fd NBB 21.91 NA NA 6.4 PIMCO California Muni PCQ 14.67 16.03 +9.3 5.7
BlackRck Rscs Comm Str Tr BCX 8.64 7.15 -17.2 -16.0 PIMCO Corporate & Incm PTY NA 13.32 NA 12.2
BlackRock Science & Tech BST 18.48 16.16 -12.6 -2.1 PIMCO California Mun II PCK 9.01 10.55 +17.1 6.1
PIMCO Corporate & Incm PCN NA 13.70 NA 10.3
BlackRock Utility & Infr BUI 20.10 18.00 -10.4 0.5 PIMCO HiInco PHK NA 8.71 NA 16.5
52 wk
CBREClarionGlblRlEstIncm IGR 8.98 7.60 -15.4 -8.6 Prem Ttl
PIMCO Inco Str Fd PFL NA 9.52 NA 11.8 Fund (SYM) NAV Close /Disc Ret
Central Fund of Canada CEF 12.75 11.80 -7.5 -1.9 PIMCO Incm Strategy Fd II PFN NA 8.62 NA 12.6
Central GoldTrust GTU NA NA NA General Equity Funds
Putnam Mas Inco PIM 4.72 4.32 -8.5 7.5
ClearBridge Amer Engy CBA 7.25 6.65 -8.3 -53.0 Putnam Premier Income Tr PPT 5.18 4.70 -9.3
Specialized Equity Funds
6.8
ClearBridge Engy MLP Fd CEM 13.50 13.09 -3.0 -42.2 Corsair Opportunity:A 9.10 NA NA NS
Wells Fargo Multi-Sector ERC 13.31 12.11 -9.0 10.1
Clearbridge Engy MLP Opp EMO 11.20 10.75 -4.0 -42.9 Corsair Opportunity:I 9.10 NA NA -12.1
World Income Funds
Clearbridge Engy MLP TR CTR 10.51 9.80 -6.8 -45.3 Griffin Inst Access RE:A 26.27 NA NA 7.0
Abeerden Asia-Pacific FAX 5.61 4.85 -13.5 6.0
Cohen & Steers Infra UTF 22.84 19.49 -14.7 -6.3 Griffin Inst Access RE:C 26.17 NA NA NS
Etn Vnc Short Dur Fd EVG NA 13.26 NA 8.3
C&S MLP Incm & Engy Opp MIE 8.74 NA NA NA Griffin Inst Access RE:I 26.31 NA NA NS
Legg Mason BW Glbl Incm BWG 14.21 12.22 -14.0 16.8
Cohen & Steers Qual Inc RQI 13.52 11.69 -13.5 3.6 Resource RE Div Inc:A 9.56 NA NA -3.7
MS EmMktDomDebt EDD 8.83 7.52 -14.8 12.6
CohnStrsPfdInco RNP 21.57 18.38 -14.8 3.6 Resource RE Div Inc:C 9.54 NA NA -4.3
PIMCO Dynamic Credit Incm PCI NA 17.29 NA 12.6
Cohen & Steers TR RFI 13.58 12.57 -7.4 1.4 Resource RE Div Inc:D 9.70 NA NA -4.0
PIMCODynamicIncomeFund PDI NA 26.07 NA 15.9
CLSeligmn Prem Tech Gr Fd STK 16.79 17.09 +1.8 0.9 Resource RE Div Inc:I 10.08 NA NA -3.7
PIMCO Income Opportunity PKO NA 20.45 NA 11.3
Divers Real Asset Incm Fd DRA 18.24 15.37 -15.7 -5.6 Resource RE Div Inc:T 9.53 NA NA -4.4
PIMCO Strat Income Fund RCS NA 8.96 NA 11.9
Duff & Phelps DNP 9.20 10.05 +9.2 4.2 Resource RE Div Inc:U 9.56 NA NA -3.7
Templeton Emerging TEI 11.70 10.37 -11.4 8.4
Duff&PhelpsGblUtilIncFd DPG 17.43 14.57 -16.4 -18.4 Resource RE Div Inc:W 9.70 NA NA -4.0
Templeton Global GIM 7.15 6.44 -9.9 4.9
Eaton Vance Eqty Inco Fd EOI 13.33 12.35 -7.4 -2.2 SharesPost 100 25.19 NA NA -1.5
Wstrn Asset Emerg Mkts ESD 16.65 14.32 -14.0 9.4
Eaton Vance Eqty Inco II EOS 13.46 12.49 -7.2 -4.7 Versus Cap MMgr RE Inc:F 27.15 NA NA 7.8
Wstrn Asset Emerg Mkt II EMD 11.88 10.16 -14.5 8.8
EtnVncRskMngd ETJ 10.42 9.30 -10.7 -3.0 Versus Cap MMgr RE Inc:I 27.21 NA NA 8.1
Wstrn Asset Gl Def Opp Fd GDO 18.03 16.50 -8.5 8.5
Etn Vnc Tax Mgd Buy-Write ETB 15.06 15.69 +4.2 7.1 Wildermuth Endwmnt Str 10.62 NA NA -4.5
National Muni Bond Funds
Eaton Vance BuyWrite Opp ETV 13.97 14.52 +3.9 6.1 Income Preferred Stock Funds
AllianceBrnstn NtlMun AFB 15.27 14.49 -5.1 5.5
Eaton Vance Tax-Mng Div ETY 11.19 10.36 -7.4 0.3 MultiStrat Gro & Inc:A 15.45 NA NA -1.8
Blackrock Invest BKN 16.49 16.39 -0.6 5.7
EatonVanceTax-MngdOpp ETW 10.92 10.29 -5.8 -2.7 MultiStrat Gro & Inc:C 15.31 NA NA -2.5
BlackRock Mun 2030 Target BTT 24.09 22.47 -6.7 4.2
EtnVncTxMngGlDvEqInc EXG 9.11 8.37 -8.1 -3.5 MultiStrat Gro & Inc:I 15.50 NA NA -1.6
BlackRock Municipal Trust BFK 15.00 15.16 +1.1 5.9
Fiduciary/Clymr Opp Fd FMO 11.74 10.69 -8.9 -52.3 MultiStrat Gro & Inc:L 15.35 NA NA -2.3
BlackRockMuni BLE 15.61 15.76 +1.0 6.0
FT Energy Inc & Growth Fd FEN 22.91 22.98 +0.3 -27.5
BlackRockMuni Tr BYM 15.65 14.92 -4.7 5.7 Convertible Sec's. Funds
FstTrEnhEqtIncFd FFA 14.51 12.57 -13.4 -5.4 Calmos Dyn Conv and Inc CCD 19.04 17.20 -9.7 -13.7
BlkRk MuniAssets Fd MUA 14.28 14.70 +2.9 5.1
First Tr Engy Infr Fd FIF 17.16 15.01 -12.5 -26.4
BlkRk Munienhanced MEN 12.37 12.44 +0.6 5.8 World Equity Funds
First Tr MLP & Engy Incm FEI 13.82 13.19 -4.6 -29.6
BlkRk MuniHldgs Inv MFL 15.48 NA NA 5.7 BMO LGM Front ME 8.12 NA NA -7.1
Gabelli Hlthcr & Well GRX 11.40 9.76 -14.4 -8.2
BlkRk MuniHldgs Qlty II MUE 14.72 13.93 -5.4 5.9 Prem12 Mo
Gabelli Utility Tr GUT 5.58 6.03 +8.1 -5.2
BlkRk MuniVest MVF 10.16 10.67 +5.0 6.0 Fund (SYM) NAV Close /Disc Yld
GAMCOGlblGoldNatRscs&Inc GGN 5.79 5.41 -6.6 -10.3
BlkRk MuniVest II MVT 15.99 16.98 +6.2 5.9 U.S. Mortgage Bond Funds
GoldmanSachsMLPIncOpp GMZ 7.67 7.58 -1.2 -49.4
BlkRk MuniYield MYD 15.41 NA NA 6.0 Vertical Capital Income 12.21 NA NA 3.3
Goldman SachsMLPEnergy GER 5.32 5.26 -1.1 -57.1
BlkRk MuniYld Quality MQY 16.26 NA NA 6.0 Loan Participation Funds
John Hancock Finl Opps Fd BTO 24.03 23.57 -1.9 7.8
KayneAndersonEngyTRFd KYE 8.03 NA NA NA BlkRk MuniYld Qlty II MQT 14.26 13.74 -3.6 6.0 504 Fund 10.05 NA NA 2.9
Kayne Anderson MLP Invt KYN 15.06 15.81 +5.0 -49.4 BlRkMunyldQltyIII MYI 15.04 14.98 -0.4 6.0 FS Global Crdt Opptys D NA NA NA 6.6
Kayne Andrsn Midstr Engy KMF 10.47 10.05 -4.1 -63.8 Deutsche Mun Income Tr KTF 13.45 13.96 +3.8 6.1 Invesco Sr Loan A 5.99 NA NA 6.4
Take Your
Macquarie Glbl Infrstrctr MGU 23.53 NA NA NA Dreyfus Mun Bd Infr Fd DMB 14.09 13.19 -6.4 5.8 Invesco Sr Loan B 5.99 NA NA 6.4
NeubergerBermanMLPIncm NML 6.66 6.75 +1.4 -57.1 Dreyfus Strat Muni Bond DSM 8.69 8.51 -2.1 5.9 Invesco Sr Loan C 6.01 NA NA 5.6
Neubrgr Brm Rl Est Sec Fd NRO 5.72 4.93 -13.8 -1.0 Dreyfus Strategic Munis LEO 8.95 8.86 -1.0 5.9 Invesco Sr Loan IB 6.00 NA NA 6.7
Nuveen Dow 30 Dynamic DIAX 15.48 13.79 -10.9 -2.0 Eaton Vance Mun Bd Fd EIM 14.16 13.22 -6.6 5.8 Invesco Sr Loan IC 5.99 NA NA 6.6
Investments
NuvDivInco JDD 12.39 10.52 -15.1 -3.8 Eaton Vance Mun Income EVN 13.65 14.43 +5.7 6.2 Invesco Sr Loan Y 5.99 NA NA 6.7
Nuveen Engy MLP Fd JMF 9.98 9.68 -3.0 -41.2 EV National Municipal Opp EOT 22.80 22.29 -2.2 4.6 Voya Senior Income:A 12.24 NA NA 5.9
NuvNASDAQ100DynOver QQQX 18.98 17.85 -6.0 2.7 Invesco Adv Mun Incm II VKI 12.68 12.21 -3.7 6.4 Voya Senior Income:B 12.18 NA NA 5.3
Wherever Life
Nuveen Real Estate Fd JRS 11.65 10.45 -10.3 -2.3 Invesco Mun Incm Opps Tr OIA 7.66 7.48 -2.3 5.3 Voya Senior Income:C 12.22 NA NA 5.3
NuveenS&P500Buy-Write BXMX 12.96 12.27 -5.3 3.8 Invesco Mun Opportunity VMO 14.17 13.80 -2.6 6.2 Voya Senior Income:I 12.20 NA NA 6.2
Reaves Utility Fund UTG 29.42 NA 4.6 Invesco Municipal Trust VKQ 14.11 13.11 -7.1 6.2 Voya Senior Income:W 12.24 NA NA 6.1
Invesco Qlty Mun Inco IQI 14.06 13.07 -7.0 5.9
Takes You
Tekla Hlthcr Investors HQH 23.97 23.02 -4.0 -25.7 High Yield Bond Funds
Tekla Healthcare Opps Fd THQ 17.55 15.52 -11.6 -16.2 Invesco Inv Grade Muni VGM 14.61 13.81 -5.5 6.4 WA Middle Mkt Inc WMF668.08 NA NA 13.8
Tekla Life Sciences HQL 17.97 17.21 -4.2 -29.4 Invesco Value Mun Incm Tr IIM 16.72 17.00 +1.7 4.9 Other Domestic Taxable Bond Funds
Tekla World Hlthcr Fd THW 15.39 13.76 -10.6 NS MainStay DefinedTerm MMD 19.93 NA NA 6.1 Capstone Church Capital 16.92 NA NA 1.7
Tortoise Energy TYG 23.54 NA -38.5 MFS Munl Inco MFM 7.48 7.06 -5.6 5.5 GL Beyond Income 4.89 NA NA NE
Tortoise MLP Fund NTG 15.97 NA -26.7 NuvAMTFreeMuniIncm NEA 15.24 14.08 -7.6 5.5 Palmer Square Opp Income 16.06 NA NA 6.3
Voya Gl Equity Div IGD 7.77 6.77 -12.9 -8.5 NuvDivAdvMuniIncm NVG 16.50 15.05 -8.8 5.1 Resource Credit Inc:A 9.46 NA NA NS
Income Preferred Stock Funds Nuveen Div Fnd NAD 15.80 14.67 -7.2 5.8 Resource Credit Inc:C 9.43 NA NA NS
Calamos Strat Fd CSQ 10.77 9.35 -13.2 -7.7 Nuveen Div Fnd 2 NXZ 16.20 14.76 -8.9 5.3 Resource Credit Inc:D 9.44 NA NA NS
Cohen & Steers Dur Pfd LDP 24.27 23.10 -4.8 4.4 Nuveen Div Adv NZF 16.25 14.80 -8.9 5.4 Resource Credit Inc:I 9.47 NA NA NS
Cohen & Strs Sel Prf Inco PSF 26.09 24.91 -4.5 2.9 Nuveen Enhncd Mun Val Fd NEV 15.69 16.06 +2.4 6.0 Resource Credit Inc:T 9.43 NA NA NS
FT Interm Duration Pfd FPF 22.58 21.79 -3.5 5.5 Nuveen Intermed Dur Mun NID 13.96 13.19 -5.5 5.2 Resource Credit Inc:U 9.46 NA NA NS
Flaherty & Crumrine Dyn DFP 23.60 23.22 -1.6 7.8 Nuveen Invest Qual Muni NQM 16.30 NA NA 6.0 Resource Credit Inc:W 9.44 NA NA NS
Flaherty & Crumrine Pfd FFC 18.46 20.09 +8.8 7.0
John Hancock Pfd Income HPI 21.94 21.94 0.0 12.7
John Hancock Pfd II HPF 21.69 20.96 -3.4 8.8
John Hancock Pfd Inc III HPS 19.21 18.63 -3.0 8.9 ADVERTISEMENT
JHancock Pr Div PDT 16.01 14.93 -6.7 16.0
LMP Cap & Inco Fd SCD 12.04 NA -21.0
Nuveen Preferred & Incm JPI 23.61 23.06 -2.3 7.8
Nuveen Preferred Inc Opp JPC 10.00 9.30 -7.0 5.3
Nuveen Quality pf JTP 8.70 8.26 -5.1 4.4
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
Nuveen Fd2 JPS 9.23 8.98 -2.7 5.0
TCW Strategic Income Fund TSI 5.25 NA 1.2
Zweig Total Return ZTR 13.33 11.85 -11.1 -5.7 NOTICE OF SALE
Convertible Sec's. Funds
AdvntClymrFd AVK 15.36 13.05 -15.0 -17.2
AllianzGI Conv & Incm NCV 5.85 5.38 -8.0 -31.9

AllianzGI Conv & Incm II NCZ 5.21 4.79 -8.2 -34.3

LEGAL
AllianzGI Equity & Conv NIE 20.40 17.86 -12.5 -2.0

Calamos Conv Hi Inco Fd CHY 11.00 10.13 -7.9 -20.6
10.38 9.26 -10.8 -20.2
!"# $
NOTICES
Calamos CHI

World Equity Funds %&'(
Alpine Tot Dyn Div AOD 8.79 7.33 -16.6 -9.5 $ )*,/:
; %&)*,/: '(
Calamos Glbl Dyn Inc CHW 7.98 6.73 -15.7 -14.4
Cdn Genl Inv CGI 23.38 16.77 -28.3 -16.0

China Fund CHN 16.71 14.33 -14.2 -17.7 <
$
Clough Glbl Eqty Fd GLQ 12.78 10.69 -16.4 -21.4
= ,

Clough Global Opp Fd GLO 11.18 9.28 -17.0 -16.9 ADVERTISE TODAY >
$ $

EtnVncTxAdvGblDiv ETG 16.06 14.20 -11.6 -9.2 ? !"? "!@! == B, )
EatonVance TxAdv Opport ETO 21.81 21.24 -2.6 -5.2 <
First Trust Dynamic Eur FDEU 17.77 16.01 -9.9 NS

Gabelli Glbl Multimedia GGT 8.17 7.14 -12.6 -13.6

GDL Fund GDL 11.89 9.94 -16.4 2.0

=
,B/BC)/B
India Fund IFN 25.57 22.49 -12.0 -12.7 (800) 366-3975

Japan Sml Cap JOF 11.05 9.72 -12.0 5.1

Mexico Fund MXF NA NA NA sales.legalnotices <
= D F
MS China a Shr Fd CAF 20.73 16.71 -19.4 -11.0 @wsj.com $@
MS India Invest IIF 28.31 24.47 -13.6 -10.2 * F %&F'(

$ )*,/: $
New Germany Fund GF 15.41 13.65 -11.4 -4.4 $ )*,/: $

Swiss Helvetia Fund SWZ 11.60 10.03 -13.5 -7.7 = , F

Templeton Dragon TDF 19.32 16.59 -14.1 -16.3 Place an ad with the

)*,/: = , F
Voya Infr Indls & Matls IDE 14.14 12.00 -15.1 -12.2 self-service tool at: )*,/:
Wells Fargo Gl Div Opp EOD 6.85 5.81 -15.2 -15.0 $
Clarity. So you can jump straight to it.

$
Prem12 Mo wsj.com/classifieds B = D
Fund (SYM) NAV Close /Disc Yld G
$

U.S. Mortgage Bond Funds
)*,/:
BlackRock Income Trust BKT 6.98 6.53 -6.4 5.6 = )*,/:

With a streamlined dashboard, quick-read

=
Brkfld Mortgage Opp Incm BOI 16.18 14.73 -9.0 10.4 , F
market indexes and a seamless device-to-device
Brookfield TR Fund HTR 23.96 24.35 +1.6 9.6

$H experience, the new MarketWatch gives you easy
Nuveen Mtg Oppy Term Fd JLS 24.30 22.45 -7.6 6.7

)*,/:
Investment Grade Bond Funds
access to critical data wherever you are.
AllianceBrnstn IncoFd ACG 7.94 7.85 -1.1 6.4
Blackrock Core Bond Tr BHK 14.14 13.15 -7.0 6.8 =
BlkRk Credit Alloc Incm BTZ 13.82 12.43 -10.1 8.1

Explore now at MarketWatch.com
John Hancock Income Secs JHS 14.73 13.76 -6.6 6.4

G
MFS Inc Tr MIN 4.93 4.57 -7.3 9.6

I
WstAstClymr InfLnkd Fd WIW 12.33 10.85 -12.0 3.9
= ,
WstAssetClymr InflLnk Sec WIA 12.62 11.20 -11.3 3.6
J C

Loan Participation Funds K !"?=
Apollo Sr Fltg Rate Fd AFT 16.89 14.99 -11.2 8.3 " !"?=
©2016 Dow Jones & Co. Inc.
BlackRock FR Incm Strat FRA 14.30 12.87 -10.0 6.4 @ L C=
All rights reserved.3DJ3356
Blkrk FltRt InTr BGT 13.81 12.60 -8.8 6.2 © 2016 Dow Jones & Company, Inc.
All Rights Reserved. F
@ " M D O !"?
BlackstoneGSO Strat Cred BGB 15.05 13.46 -10.6 9.2
Blackstone GSO Sr Float BSL 15.67 15.05 -4.0 7.1
C6 | Monday, March 28, 2016 THE WALL STREET JOURNAL.
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
OVERHEARD Japanophiles
Foreign ownership of Japanese shares, by value
35%
Virtual Reality’s
Gilead Sciences has
dodged one of the threats to
its hepatitis C juggernaut.
30
25
Way Cooler Cousin
True, Gilead shares fell af-
ter the company lost a legal 20 Augmented-reality tech- startup, has raised $1.4 bil-
challenge from Merck to pat- nology mixes the real world lion from companies such as
ents surrounding its hepatitis 15 with objects that aren’t re- Google, Alibaba Group Hold-
C drugs Sovaldi and Harvoni ally there. Investors contem- ing and Qualcomm.
last week. A federal jury or- 10 plating the “next big thing” Unlike VR, which occludes
dered Gilead to pay Merck 5 in tech should appreciate the a user’s vision to replace it
$200 million in damages. irony in this. with an enclosed environ-
But the outcome, which 0 At the moment, virtual, ment, augmented reality im-
Gilead plans to appeal, could FY ’95 2000 ’05 ’10 ’15 not augmented, reality has poses virtual objects onto
have been far worse: Merck Note: Fiscal year ends in March the spotlight. VR made a the real world. Both require
had asked for $2 billion in Sources: Tokyo Stock Exchange; Getty Images (photo) THE WALL STREET JOURNAL. Tokyo Stock Exchange splash this year thanks to computing horsepower. For
damages. A separate hearing the technology’s early focus now, virtual-reality headsets
Crowded-Trade Trouble
will take place to decide on videogames. Augmented have an advantage because
whether Merck is entitled to reality, on the other hand, they often are tethered to a
a royalty on future sales. will have to wait. While computer or game console.
Investors worry the hepati- some companies sell special- That is workable because
tis C franchise has matured Like vacationers at a tour- serve. That compared with desire for uncorrelated as- ized, expensive smartglasses those headsets limit the
after generating cumulative ist trap, investors who put about 10% at the end of sets may be driving the cor- for businesses, major efforts user’s mobility anyway.
sales of more than $30 billion. money overseas may end up 2000. The U.K. government relations between different remain shrouded. Microsoft, AR headsets, by contrast,
Those drugs accounted for surrounded by the same reckons that, as of 2014, 54% countries’ markets higher. which holds a developers need to be mobile. This re-
60% of Gilead’s 2015 sales. As crowd they hoped to escape. of British shares were owned Higher foreign ownership conference this week, plans quires them to pack a lot of
such, Gilead trades at a much Home bias—the tendency by overseas investors versus rates can also magnify spill- to get its HoloLens device to computing power into some-
lower multiple of forward of investors to invest nearly an estimated 36% in 2000. overs. Steep declines in one developers later this year. A thing people will strap on
earnings than peers. The exclusively in domestic equi- The Bundesbank in 2014 es- market can force leveraged market launch is a way off. their faces. That is still a
jury’s manageable award ties—has long been viewed timated 64% of the value of funds—those that have bor- Google’s on-again, off-again work in progress. Gartner
doesn’t eliminate those fears, as a bad thing. By hitching firms in Germany’s DAX in- rowed money to purchase smartglasses project is ap- analyst Brian Blau estimates
but Gilead can cross one the bulk of their portfolios dex were owned by foreign- stocks—to sell other assets parently back on again, AR displays are at least 12 to
problem off its list. to the performance of stocks ers, up from 56% in 2005. to cover losses. And even if though details aren’t known. 18 months behind VR.
i i i in the same economy where What’s more, foreign in- they don’t use leverage, wor- But augmented reality Perfecting the headsets
Keefe, Bruyette & Woods they work and live, investors vestors may tend to be more ries over the need to raise isn’t vaporware. And for all will be key to getting AR ap-
analysts made waves last risk putting too many eggs active participants than do- cash to meet redemptions the focus on virtual reality, plications into the market.
week by suggesting in a re- in the same basket. mestic ones. Japanese ex- can lead global funds to sell. investors should perhaps pay That will require patience.
search note a breakup of Citi- But home bias isn’t as change figures show foreign- The spillovers can cut the closer attention to its cousin. VR is launching this year
group, starting with the sale pervasive as it once was, ers owned about 32%, by other way. Both the Bank of Strong business cases will for videogames through
of international assets like with markets across the value, of shares as of March Japan and European Central eventually propel augmented companies like Sony, HTC
Mexican unit Banamex. Not world experiencing a grow- 2015, versus about 19% in Bank have recently stepped reality forward. This technol- and Facebook-owned Oculus,
everyone was buying it. ing foreign presence. This 2000. But foreigners ac- up bond-buying programs. ogy might have the wider but high prices will likely
Karen Shaw Petrou at Fed- may have contributed to counted for about 71% of the Such easing measures are range of potential users, limit their adoption for a
eral Financial Analytics likened markets moving more in tan- value of brokerage trading in aimed at driving investors ranging across fields such as while. Augmented reality
it to becoming a mermaid—a dem than they once did, re- the Tokyo Stock Exchange into riskier assets, in hopes design, retail, medicine, edu- will be even slower as the
nice idea but hardly realistic. ducing the benefits of diver- first section last year, up increased risk taking will cation, entertainment and headsets will be more expen-
There must be willing buy- sification. And it may also be from about 33% in 2000. bolster the economy. automotive. Not that one sive and initially there won’t
ers, and “I have not seen adding to stock-market risks. The increased foreign But in today’s more fluid technology has to win at the be a singular market like
home-country banks in Fewer retail investors own presence in stocks globally global environment, such others’ expense. Goldman games to propel it.
emerging economies exactly individual stocks, preferring may be one of the reasons moves can drive investors to Sachs Group projects a “base But the potential could be
rolling in dough right now,” funds and index products. stock markets have shown take risks elsewhere. So such case” market valued at $80 greater. Gartner projects an-
Ms. Petrou wrote. And global And portfolio managers and more of a tendency to move programs are leakier, and billion between hardware nual head-mounted display
banks that could be buyers, institutional investors have together in recent years. less effective, than they oth- and software opportunities sales will jump to nearly 40
like HSBC, Standard Char- been casting wider nets, Many global investors lack erwise might have been. for virtual and augmented million units by 2020 from
tered and Barclays, have their seeking out uncorrelated as- both the time and acumen to For investors, it is a dy- reality by 2025. 1.4 million units this year.
own issues. That leaves list- sets in hope of reducing risk. fully understand idiosyncra- namic that makes it even Private investors are Gartner’s Mr. Blau expects
ings of emerging-market So foreign investors are sies of foreign markets. harder to put together a banking on this. About $3.5 AR to account for the major-
units. But as stand-alone playing a larger role globally. And if they have put their portfolio that is truly diver- billion in venture-capital in- ity of headsets sold near the
banks, they could suffer from About 20% of U.S. nonfi- money into global index- sified. No sooner do they vestments went to virtual- end of that period.
lower credit ratings. nancial shares, by value, based products, they have find some far-flung invest- and augmented-reality com- That should make aug-
This maiden isn’t likely to were held by overseas inves- locked themselves into an ment play they think only lo- panies in 2014 and 2015, mented reality real enough
sprout a tail anytime soon. tors in the fourth quarter, undifferentiated approach. cals know about than it is Goldman said. Magic Leap, for investors.
according the Federal Re- So, as elsewhere, investors’ ruined. —Justin Lahart an augmented-reality —Dan Gallagher
MONEY & INVESTING
Alternative Mutual Funds Face Obstacle From SEC

Proposal would force were many individual inves- financial crisis. last year said high-yield bond old, including about 200 bond argues the SEC’s plan relies on
tors,” said David Kabiller, a For more than two years, funds such as those offered by funds that use derivatives to a simplistic approach that cal-
managers to dial back founding principal at AQR, regulators have focused on BlackRock could inflame the boost returns, according to the culates exposure using the no-
strategies betting on which manages more money in risk emanating from mutual next crisis because the bonds Investment Company Insti- tional value of a contract,
alternative mutual funds than funds that have moved into trade so infrequently, while tute, the lobbying group for which is often a larger figure
shifts in markets any other firm except Black- more complex strategies that fund investors can pull their mutual funds. than the amount of money that
Rock Inc. “If we have to mod- involve bonds and derivatives money in a panic. BlackRock ICI executives say those investors would have to pay or
BY DAVE MICHAELS ify them, it’s the investors who that are harder to sell, while disputed Mr. Icahn’s state- funds would have to sell off as- deliver under the transaction.
lose out with lower expected promising investors they can ment, saying those funds sets to comply with the new SEC spokeswoman Judith
WASHINGTON—A flashy returns.” withdraw their cash anytime. make the system safer. restrictions or withdraw from Burns declined to comment on
class of mutual funds that al- SEC officials have acknowl- Ordinary investors are al- The SEC attempted to ad- the retail market. The group new criticism of the proposal.
lows retail investors to tap edged the rule is much stricter ready increasingly skeptical of dress such liquidity concerns
into exotic strategies pio- than current requirements and such funds’ promises, and many by proposing last September
neered by hedge funds is col- could result in some funds of the funds have failed to pro- that funds should hold more Borrowing Benchmarks | WSJ.com/bonds
liding with the one force that choosing to deregister as mu- tect capital in the recent mar- assets that can be easily sold
threatens its growth: regula- tual funds, a move that would ket gyrations. Last year, more during market routs. The regu- Money Rates March 25, 2016
tors on the hunt for systemic cut them off from a broader liquid-alternative funds closed lator then moved on to a sepa- Key annual interest rates paid to borrow or lend money in U.S. and
risk. investor base. Chairman Mary than in any year on record, ac- rate, but related, matter of international markets. Rates below are a guide to general levels but
Managers of alternative mu- Jo White has said the new cording to Morningstar Inc. moving to cap their leverage don’t always represent actual transactions.
tual funds, which rely on de- guardrails are needed to pro- Activist investor Carl Icahn from derivatives in Decem-
rivatives to bet on and against tect investors from highly lev- ber—the rule that is triggering Inflation Other short-term rates
Feb. index Chg From (%) Week 52-Week
shifts in global markets, say a eraged funds that might have protests from the alternative level Jan. '16 Feb. '15 Latest high low
ago
proposal by the Securities and to dump assets at fire-sale mutual funds.
Exchange Commission would prices to cover “substantial Current SEC rules only re- U.S. consumer price index Call money
237.111 0.08 1.0 2.25 2.25 2.25 2.00
force them to scale back their and rapid losses from invest- quire funds to hold cash or liq- All items
Core 245.680 0.47 2.3 Commercial paper
strategies dramatically. Over ments in derivatives.” uid securities as a buffer
the past five years, investors A burst of opposition could against potential losses in 30 to 270 days n.q. ... ... ...
ANDREW HARRER/BLOOMBERG NEWS
International rates
seeking higher yields poured threaten the SEC’s ability to their derivatives book. That Commercial paper (AA financial)
Week 52-Week 0.50 0.56 0.64 0.06
nearly $150 billion into alter- complete the rule, a center- flexibility has allowed alterna- Latest ago High Low
90 days
native funds offered by firms piece of Ms. White’s effort to tive funds to flourish and Euro commercial paper
that once catered only to the reshape her agency’s oversight opened the door for exchange- Prime rates 30 day n.q. -0.14 -0.02 -0.14
wealthiest investors, including of asset managers. The SEC traded funds that produce U.S. 3.50 3.50 3.50 3.25 Two month n.q. n.q. -0.01 -0.09
Canada 2.70 2.70 2.85 2.70 Three month n.q. n.q. -0.01 -0.08
AQR Capital Management and has embraced that campaign daily gains or losses that are Japan 1.475 1.475 1.475 1.475 Four month n.q. n.q. 0.02 0.00
Blackstone Group LP. under pressure from the Fed- two or three times greater Five month n.q. n.q. 0.03 0.01
“There are a lot of institu- eral Reserve and other regula- than an index they track, such Policy Rates Six month n.q. n.q. 0.04 0.02
tional investors that were tors worried about the indus- Euro zone 0.00 0.00 0.05 0.00
as the S&P 500 index. Libor
Switzerland 0.50 0.50 0.50 0.50
happy to have this, and so try’s potential to trigger a new SEC Chairman Mary Jo White The SEC’s latest plan would Britain 0.50 0.50 0.50 0.50 One month 0.43500 0.43210 0.44185 0.17625
cap funds’ exposure to deriva- Australia 2.00 2.00 2.25 2.00 Three month 0.62860 0.62340 0.64195 0.27075
Six month 0.91090 0.88830 0.91740 0.39840
tives at 150% of their net as- Overnight repurchase One year 1.23115 1.20220 1.24470 0.68465
sets. It also would force them U.S. 0.37 0.40 0.51 0.07 Euro Libor
to hold more cash or cashlike
One month -0.330 -0.328 -0.016 -0.330
assets. U.S. government rates Three month -0.249 -0.248 0.018 -0.249
The SEC’s rules treat deriv- Discount Six month -0.139 -0.132 0.071 -0.140
atives like borrowing because 1.00 1.00 1.00 0.75 One year -0.017 -0.010 0.199 -0.028
the products allow investors to Euro interbank offered rate (Euribor)
Federal funds
make outsize bets with a small One month -0.331 -0.322 -0.012 -0.331
Effective rate 0.3700 0.3900 0.4000 0.0600
down payment, or receive a Three month -0.242 -0.234 0.021 -0.242
High 0.5625 0.5625 0.5900 0.3100
fee in exchange for assuming a Six month -0.134 -0.131 0.088 -0.141
Low 0.3000 0.3000 0.3500 0.0200
One year -0.005 -0.003 0.199 -0.028
larger potential liability. Fund Bid 0.3600 0.3700 0.5500 0.0300
Offer 0.3800 0.5000 0.5600 0.0500 Value 52-Week
managers who write an option Latest Traded High Low
contract, for instance, generate Treasury bill auction
income but assume the risk 4 weeks 0.270 0.280 0.295 0.000 DTCC GCF Repo Index
13 weeks 0.300 0.335 0.350 0.000 Treasury 0.489 96.200 0.639 0.075
they will have to pay a much
26 weeks 0.440 0.510 0.585 0.065 MBS 0.480 116.250 0.705 0.087
larger amount if the price of a
Open Implied
stock moves against them. Secondary market Settle Change Interest Rate
While most mutual funds Fannie Mae DTCC GCF Repo Index Futures
don’t use derivatives, about 30-year mortgage yields Treasury Mar 99.565 -0.005 5797 0.435
27% of alternative mutual 30 days 3.239 3.237 3.750 2.979 Treasury Apr 99.540 -0.005 2967 0.460
funds hold derivatives whose 60 days 3.270 3.269 3.788 2.998 Treasury May 99.515 -0.005 2661 0.485
notional value exceeds the pro-
JIM BOURG/REUTERS
Notes on data:
posed ceiling, according to an U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S.
SEC study issued in December. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF
Industry-funded research esti- Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable
mates more funds would be af- CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on
NYSE Liffe US.
fected—450 mutual funds Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
The SEC contends its proposed rule is necessary to protect investors from highly leveraged funds. would exceed the 150% thresh- General Electric Capital Corp.; Tullett Prebon Information, Ltd.
JOURNAL REPORT
Follo
The E w
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. xper Monday, March 28, 2016 | R1
A ts
Convn Online
e
DETA rsation
I LS, R8
The Difficult, Delicate Untangling of

OUR
“NO, NO, NO, don’t transfer me to her again,” pleads my wife. tle clue about any of the details The couple wed in 1960,
It is a typically frustrating moment in our family crisis, one the parents had handled for de- above, and lived in their
that many grown children will have to face, ready or not: We cades. Queens, New York,
are people in our 50s who are unraveling the finances of par- We aren’t complaining. We walk-up apartment until
ents who can no longer do it themselves. are grateful that all four of Ju- last year.
PARENTS’
My wife, Julie, is on the phone with the company where her lie’s parents and mine were alive
82-year-old dad had once worked, trying to change the direct until recently (my mom died in late January), and that Julie’s
deposit of his pension checks to a bank closer to the assisted- parents had saved some money. We also recognize this as our
living home where he and his wife now live, which is near us duty to parents who were beyond generous with their time and
in Pennsylvania. Again and again, she is transferred to the per- money.
FINANCIAL
son in charge, “Rose.” And every time, the same recording: But nothing about it has been either routine or expected. I
“This number has been disconnected.” have watched as Julie simultaneously struggles to make sense
In the room next to her, I see our once-usable sofa, covered of her parents’ financial Rubik’s Cube and deal with their dete-
with her parents’ financial papers from the 1960s to now. On riorating health—all while doing the stuff of daily life that
the floor sit a metal tub and plastic cups of coins that we had used to fill her days. We have learned a lot, though, and some
hauled from the parents’ third-floor walk-up in Queens, New of it might be helpful to others who find themselves in a simi-
LIVES
York—a small (but heavy) part of their lifetime of earning and lar place someday. For our part, what we’ve learned is already
saving, nearly all of it offline. affecting our approach to finances—so our own children have
These are the kinds of elder-care issues that people talk an easier time when it’s their turn to sort out our financial
about, but until you have lived it, you don’t truly realize all lives.
that is involved—not even someone like me who has spent de-
cades as a financial reporter.
Julie’s parents, children of immigrants from Hungary and
Czechoslovakia, lived since 1960 in that modest Queens apart-
When my in-laws became 1. Before you do anything else, figure out what
you’re doing.
Imagine being dropped into someone’s living room and told,
ment, a two-hour drive from us. The two hardworking people— too incapacitated to handle their “Here you go, you’re running their house now.”
he was an elevator-system designer and she was a public- That is how it felt for Julie when suddenly her parents were
school secretary—spent almost nothing on themselves for own affairs, my wife and I took over. in a medical crisis, and she and the family had to start reading
decades, but put two children through college and poured out
generosity when the grandchildren arrived on the scene (in-
A year and a half later, we’re still the daily stack of bills, find out what to pay immediately and
what could be put off until next week—while also looking at
cluding our daughters). trying to figure it all out. her father’s files for the first time, filled with 55 years of re-
Yet in the year and a half after my mother-in-law joined her tirement-plan statements, confusing notes about small hold-
husband in retirement in 2013, their health and their ability to ings of several stocks tied to his elevator-company job, folders
BY WILLIAM POWER
keep up with their finances began to fail. Now, neither of them of tax forms, letters once fired off years ago to New York’s
can remember much about their finances—where the accounts mayor and a stack of bank passbooks grouped in rubber bands.
are, what bills they need to pay, email addresses, passwords, Some information Julie needed from her mom was found on
subscriptions, keys. notes on scrap paper in various handbags.
My mother-in-law, who used to be a checkbook whiz, and Yes, Julie knows an awful lot about her parents—their per-
my father-in-law, who had carefully kept decades of paper- sonalities, their quirks, their histories—but they had never re-
work, conceded they needed help. It is such a relief, my father- vealed much about their finances. She was pretty much start-
in-law says now, that he doesn’t have to worry about the grind ing from scratch.
of family finances. (He also says he’s fine with me writing this She asked to look at her mother’s checkbook, and could tell
article, since he is proud of his daughter’s efforts and hopes it was once meticulous, but now had some hard-to-read en-
others can learn about getting their finances in order before tries. Yet that was pretty simple compared with just figuring
it is too late.) out what they had.
So since November 2014, Julie and I (mainly Julie) have What’s clear is how much the Depression scarred our par-
POWER FAMILY (2)
been trying to reconstruct, clean up and resolve a financial life ents’ generation. That is the only explanation for why Julie’s
we were never privy to. parents deposited small amounts of money in so many differ-
Our situation no doubt will be more common as people live ent banks, in the form of savings accounts and CDs. Combined
longer, and apart from their grown children. The age and the with the small holdings of stock that her dad got through his
distance means that an increasing number of these grown chil- work, there were more than two dozen accounts to track down,
dren will be invited into their parents’ financial lives, with lit- The coins, mostly in a 45-pound metal tub, are the easiest part. Please turn to the next page
INSIDE
How to Coordinate Outside Help Ask Encore Retirees’ Housing Dilemma: Do

for Aging Parents Where retirees can find We Rent or Do We Own?
Financial, legal and medical pro- ideas for educational travel. The decision could have a big
fessionals should work together. R5 impact on savings later in life.
R2 R8
What If You Get Sick While
How People Err in Estimating Traveling Abroad? Increase Savings! Win Jackpot!
Spending in Retirement It helps to know what your People open new accounts when
The conventional wisdom about insurance covers, and whether given a chance to win a prize.
needing to replace 70% of your you need to supplement it. R11
income is probably wrong. R6
R4 Student-Loan Relief as a
The Latest Corporate Benefit: Corporate Perk
Charitable Tax Break Is Back The 529 Plan As more companies help employ-
The ins and outs of qualified chari- Here’s what participants ees pay off their loans, it’s useful
table distributions from IRAs. should consider. for workers to do the math.
R4 R6 R12
R2 | Monday, March 28, 2016 THE WALL STREET JOURNAL.
JOURNAL REPORT | WEALTH MANAGEMENT
The Untangling of Our Parents’ Financial Lives

Continued from the prior page change is made. Consider that Julie’s dad can no
including 12 separate ones at one New York commu- longer drive. It seemed simple enough to sell or give
nity bank. away his car. That meant more paperwork, of
Julie started several files and lists of their assets. course, and we knew we had to mail back his New
Every day in the mail, we learned about something York license plates.
new when a statement or bill arrived, and at the But I hadn’t thought that someone has to find out
same time we sorted through the files as her father where to return the E-ZPass transponder, too, and
tried to fill in some of the blanks. (Hmm, Julie had close the account.
a small 20-year “juvenile endowment certificate” Or the time that Julie noticed a $36.99 AOL Inter-
dated 1966? But was it already cashed in? We think net service charge that kept showing up on credit-
it was.) I give credit to Julie’s parents for being able card statements. This seemed a waste for people
to avoid debt. There was just no overall accounting who are now blissfully off the grid; in fact, the last
of their assets, or clues to whether a certain docu- time my father-in-law checked his email, with our
ment was vital or junk. help, all he wanted to do was to blast-delete every
We’re almost at the end in sorting out what they message, like taking out the garbage.
have; there are one or two accounts we can’t quite So, we dropped AOL by calling up his account, re-
figure out. doing a password since he didn’t remember it, and
immediately canceling it.
2. Repeat after me: POA, POA, POA.

Everybody is always told how important it is to
But then, the next bill had the same $36.99
charge. Ahh, they have a second, slightly different
POWER FAMILY (2)

get a “power of attorney” document, or POA. But let email name included in the one account, created to
me assure you: As important as you think it is, it is battle some long-forgotten problem. We had to can-
more important than that. cel that one, too, on the phone. Finally, You haven’t
The notarized form gives you the legal right to do got mail.
financial transactions for someone. When you are Another surprise from out of the blue came over
stepping in to help run someone’s financial life, you The parents’ papers filled our house. We hope to leave fewer behind for our family. the summer. Phone calls from the New York commu-
can’t do anything without it, including dealing with nity bank told us that Julie’s parents have an ac-
banks, pensions, financial advisers, medical facili- count that was overdrawn for five months and a
ties. Over and over, you will need to fax, mail or $12-a-month penalty was being charged. It turned
bring in that POA.
Stepping In out, that account was set up to make automated
(The terminology can get complicated. For in- Twenty percent of adults payments for their safe-deposit box, and it slowly
stance, what’s a “durable” POA—does it mean the surveyed say they was drained to nothing over the years, despite the
paper wouldn’t yellow? It actually means the docu- or a family member have money they had in another account. We headed back
ment is valid when the elderly person becomes inca- witnessed diminished financial to Queens to close that account and the safe-deposit
pacitated.) capacity among an aging box. (Or so we thought: Earlier this month, we got
Julie knew early on that she needed a POA, but parent or family member. another bill for the box that no longer exists. Julie
we initially messed up. To save money and time, we Among those: sent a reply that she had handed over both safe-de-
downloaded a standard POA form off the Internet posit keys to them in October. No answer yet.)
and did it ourselves, but we quickly decided to have
one done with a lawyer’s help. In recent years, the
42% The latest case of “money out the window” that
my wife discovered was a Costco membership with
Have assumed responsibility
forms have become more specific, customized for a automated renewal. Fire up that POA again, to get
for some/all aspects of their
certain state or a certain bank, to protect against the charge stopped. After all, while Costco is a great
financial decision making
dishonest children using POAs to rip off their elders. place to shop, it doesn’t make sense to have a mem-
That means that even though you think you have a bership there when you are basically tethered to
valid POA, you may get asked to fill out a new one. 43% your bedroom.
(And find out where a notary is in your town; need- Someone else
ing POAs means you will need a notary many times
because different entities will want their own ver-
sions filled out.)
has assumed management of
the aging family member’s 6. Have mercy on your own children.
We have learned a few things from this experi-
ence, which isn’t over. First, the philosophical part,
finances
Here’s one small example of how important the Power-of-attorney forms became familiar quickly. which of course is to appreciate each day, and your
POA became. In May of 2015 we opened a Citibank We also sorted through many old-style bank family. Before you know it, you’re not able to.
letter that was sent to Julie’s parents’ old residence passbooks, some active and some not. 66% More practically, we learned that while people
in Queens and these words jump off the page: Family member don’t want to deal with the tough issues with their
“…possible transfer of your Citibank retirement with my experience, it isn’t easy keeping up with has a durable power of attorney parents when they are well, it is less traumatizing
plans(s) as abandoned property under New York someone else’s IRA-rollover deadlines and notices than when they are in a hospital bed.
law.” Say what? about required minimum withdrawals. The aging life care consultant that our family
It turns out that this issue involves some certifi- Or consider that someone had to do Julie’s par- Change of Plan hired, Debra Drelich of New York Elder Care Consul-
cates of deposit in an account that my in-laws had ents’ taxes by April since they couldn’t handle them. Fifty-nine percent of adults tants, tells me it is rare that people reach out early
stopped tending to. The two choices: Take my fa- That meant asking our tax accountant to add them surveyed have altered to deal with these issues.
ther-in-law two hours away to a Citibank in New as clients, too. (It also meant more POA forms their own financial planning Instead, it takes a crisis.
York to sign a paper (not advisable, in his condi- needed to be done, the IRS versions.) due to the situation with She says our situation is a “classic example”—my
tion). Or send in a notarized form to a San Antonio Family support, when you can get it, also helps an aging family member. father-in-law in the hospital after a medical emer-
address, using Julie’s POA to verify her identity. more than I can say. My own parents had preceded Among their moves: gency, my mother-in-law alone at home, and Julie
We had already learned about the limits of a POA: my in-laws in needing the same kind of help. My running back and forth to New York. Even when Ju-
It can sail through again and again, and then sud- brother and his wife, who live closest to them, led lie’s dad left the hospital, it meant that there were
denly get rejected by one bank. In this case, Julie that task, and we compared notes about both fi- 33% now two people in an apartment alone, in need of
knew the original POA was worthless since Citi, like nances and medical issues. Sometimes that meant Communicate with family supervision.
other banks trying to protect themselves, will ask just a text message of support: “Oy.” members or trusted Instead of waiting for a crisis, people should start
for its own form to be completed. That meant an- representative about their mobilizing “when family members see the situation
4.
other afternoon explaining to the folks why they In an online world, be ready to be thrown wishes should they become is becoming more challenging but it hasn’t hit the
were signing a form, and then another trip to the back to the 1970s. incapacitated crisis level yet,” says Ms. Drelich. “This type of situ-
notary. When you are invited into a parent’s financial life, ation is usually seen when there is a somewhat slow,
you also are going into a time machine. steady decline in the older person.”
29%
3. It helps to have a team, both family and
outsiders.
Sometimes it is worth it to get outside help: When
I don’t just mean the smell of old cardboard and
paper. It is startling to be cast back to a generation
when everything was offline and decentralized.
Ensure proper paperwork
is in place
Here is what we’re doing differently for our chil-
dren:
We aren’t going to leave them with haphazard re-
you are dealing with life’s normal issues with your Over and over, we find an insurance document or cords, and notes left in handbags. We have written
own children, setting up a parent’s medical-rehab pension papers from the 1960s through the 1980s, 17% out a clear, comprehensive list of assets, debits,
appointments and answering the latest phone call and there is no way of telling at first whether it is Work with a financial passwords and sign-ons. It is in a safe place that a
about a parent who has fallen, it can be overwhelm- important or irrelevant. The folks don’t always professional to help with trusted family member can get to.
ing to also be sorting through Medicare forms that know. For those of us used to getting information paperwork and wishes It is a chore that is easy to put off, but it took
you’ve never seen before. with a few clicks, the detective work needed to get just an hour at first, then we update it as needed.
So, hiring a social worker known as a geriatric the information about a single document can be jar- Still, we were amazed at the number of accounts
consultant, if it’s in your budget, can help you keep ring. 16% and passwords we have ourselves. This has been a
your sanity, including filling out forms and knowing In some cases, we are the first people to set up Have done a financial big help for us right now, and we find ourselves re-
what rehab facilities make sense in your city. The online accounts for an investment, with Julie’s par- inventory of accounts and ferring to the list all the time; in fact, the usefulness
more-trendy term for these advisers is “aging life ents’ permission. But some of the accounts have to shared paperwork/passwords of such a list may be the way to persuade a parent
care consultant.” stay on paper, such as the passbook savings at one with family members/ to do the same.
I wouldn’t have thought of needing this, but a bank, or the accounts at another bank that didn’t trusted representatives For instance, our Internet service’s wireless
friend of Julie’s did, and what a relief it was just to have checking attached to them. That means we router next to our TV even has its own sign-on; hav-
have someone who knew immediately what the le- couldn’t just sign on to the accounts and consolidate ing it on our master list has saved us trouble more
gitimate rates are for personal-care help, or the bet- them or close the little ones. It meant more trips to 6% than once when we had to fix our connection.
ter walkers or shower equipment her parents would banks, sometimes with her dad when he could Have altered financial Having a router’s private number might not mat-
need. We also signed on for an “elder lawyer” rec- travel, to try to close them out or transfer them. planning in some other way ter to our children when we are gone. But as we
ommended by the consultant, to look at the parents’ have learned, you never know.
5.
Source: Harris Poll survey of 2,015 U.S.
will and the POA. Little things we never would have thought adults age 18 and older, conducted on
Finally, while Julie’s parents aren’t wealthy, on of, before this. behalf of the National Endowment for Mr. Power is a Wall Street Journal news editor
the lawyer’s advice we also met with a financial ad- Like doing a renovation of a house, it is amazing Financial Education March 8-10, 2016. in South Brunswick, N.J. Email him at
viser. We could have survived on our own, but even how many little things have cropped up when one THE WALL STREET JOURNAL. william.power@wsj.com.
WHO CAN HELP, AND WHAT THEY CAN DO

financial adviser who manages parent should have a private, make his or her own decisions,
BY ANNA PRIOR
a portfolio of investments, Who's a Caregiver Working Together one-on-one discussion with says Ms. Howard.
brokerage accounts and retire- the attorney as well. As for working with profes-
WHEN IT comes to helping an ment accounts, says Carly 34.2 million Difficulty in coordinating care or
“It’s important that parents sionals while an aging parent
Number of adults treatment for a family member
aging parent, it often makes Howard, a wealth strategist in communicate with family is still competent, it can be a
sense to get outside help. Atlanta for Atlantic Trust Pri- providing care to an Very Somewhat members what their intentions good idea to keep mom or
But for many, that raises vate Wealth Management. adult 50 and older difficult difficult are for the estate plan,” says dad’s financial adviser abreast
three questions: Who should The financial adviser is 4% Ms. Howard. of any major medical develop-
47% 18%
help? What can they offer? likely to also handle financial Caring for a parent Very ments that have a direct bear-
And what’s the best way to planning, including cash-flow or in-law easy Medical Professionals ing on financial issues—pro-
make sure everyone works to- analyses and retirement plan- 30% It can be a little harder to vided the parent approves—so
gether? ning, she says. 50.3 Somewhat
integrate medical professionals that the adviser can plan ac-
Here is a closer look at There might be other finan- Average age of caregiver easy into the discussion, in particu- cordingly.
three main professional cial specialists in the picture, 48% lar because of privacy concerns. Adult children should con-
groups and the roles they play such as a certified public ac- 60% But one critical situation sider accompanying their par-
in helping manage an aging countant, insurance agent or Are female where it will be important to ent to the doctor’s office for
parent’s finances, as well as mortgage specialist. Ms. How- Source: Caregivers of Older Adults: A Focused Look at Those coordinate between a parent’s appointments, or attending via
how best to streamline and co- ard suggests coordinating Caring for Someone Age 50+, June 2015 THE WALL STREET JOURNAL. doctor and lawyer is in situa- conference call if they don’t
ordinate among these groups. those conversations through tions of diminished capacity. live in the same city, says
the financial adviser. Legal Professionals prospective lawyer, says David Ideally, durable powers of Carol Harrington, a partner
Financial Professionals It also could help to gather Another professional likely Geibel, a wealth adviser at Gi- attorney for medical care and and head of the Private Client
Once adult children get a everyone for a yearly meeting, to be included in that meeting rard Partners Ltd. in King of finances—which would allow a Group at law firm McDermott
handle on the types of accounts with the financial adviser act- is an estate-planning attorney Prussia, Pa. person of the parent’s choos- Will & Emery LLP in Chicago.
a parent has, they can turn to ing as a sort of quarterback who can assist on crafting a “It’s daunting to talk to an ing to act in his or her place in This way, the child stays in-
the different financial profes- for the team. “Get everyone, last will and testament, or attorney, especially about the event of mental incapac- formed and can ask ques-
sionals who work with those including the financial team, help with more complex estate things that are uncomfortable, ity—are sorted out well before tions—something an elderly
accounts—keeping in mind that the parent and child, in the planning including trusts. so being there and being sup- a parent has reached this parent may be less inclined to
the parent is the client. same room and have a good If a parent isn’t already portive” can be helpful, he says. stage. But in cases where no do, says Ms. Harrington.
It’s typical for a parent to dialogue,” says Denis Higgins, working with an estate-plan- Atlantic Trust’s Ms. Howard action has been taken to se-
have a banker who handles a certified financial planner ning attorney, ask the financial recommends letting the parent cure proper legal documenta- Ms. Prior is a reporter for The
checking and savings accounts, and CPA at Edelstein & Co. in adviser for a reference, and direct the conversation. To tion, a doctor will generally Wall Street Journal in New
money-market accounts and Boston. This way, everyone is consider accompanying the avoid the appearance of undue need to vouch that the parent York. She can be reached at
certificates of deposit, and a on the same page, he says. parent to a meeting with a influence from the child, the is incapacitated or unable to anna.prior@wsj.com.
THE WALL STREET JOURNAL. Monday, March 28, 2016 | R3
The strong case for

short-term bonds
as interest rates rise.
Short-term bonds have offered:
Short-term
45 %
less sensitivity to interest rate
bonds changes than the overall U.S.
Yield %
credit bond market1
2.4x
more frequent reinvestment
than longer maturity bonds2
1mo 3mo 6mo 1yr 2yr 3yr 5yr 7yr 10yr 20yr 30yr
Time to Maturity
Consider these short-term bond investments for your portfolio
FIDELITY® LIMITED TERM BOND FUND Potential interest rate increases often
present opportunity. At Fidelity, we use
FJRLX our industry-leading bond research
and analysis to help you generate
FIDELITY® LIMITED TERM BOND ETF additional income and reduce risk.
FLTB
FIDELITY® SHORT DURATION HIGH INCOME FUND
FSAHX
FIDELITY® CONSERVATIVE INCOME MUNICIPAL BOND FUND
Fidelity.com/shortbondfunds
FCRDX 800.FIDELITY
Or call your Advisor.
Before investing in any mutual fund or exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus,
offering circular or, if available, a summary prospectus containing this information. Read it carefully.
Past performance is no guarantee of future results.
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their
NAV, and are not individually redeemed from the fund.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk,
and credit and default risks for both issuers and counterparties. Lower-quality fixed income securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Foreign investments involve greater risks than U.S. investments, and can decline
significantly in response to adverse issuer, political, regulatory, market, and economic risks. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
The municipal market can be affected by adverse tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Interest income generated by municipal bonds is generally expected to be exempt from federal income taxes and, if the bonds are held
by an investor resident in the state of issuance, state and local income taxes. Such interest income may be subject to federal and/or state alternative minimum taxes. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all
tax brackets. Generally, tax-exempt municipal securities are not appropriate holdings for tax-advantaged accounts such as IRAs and 401(k)s.
Hypothetical yield curve: A chart that plots the yields of similar bonds across different maturities. The yield, as of 8/14/15, for commonly referenced indices representing bonds with 1–5 year maturities, is as follows: U.S. Treasury securities (1.01%), Barclays 1–5 Year Municipal Bond Index
(1.11%), Barclays 1–5 Year U.S. Credit Bond Index (2.05%), and Bank of America Merrill Lynch 1–5 Year BB/B Cash Pay Index (5.99%). Sources: Barclays Live, Bank of America Merrill Lynch.
1
Interest rate sensitivity is based on the annualized standard deviation of monthly total returns for the 10-year period ending February 2014, with the overall bond market represented by the Barclays U.S. Credit Bond Index (all maturities), and short-term bonds represented by the subset of
bonds within the index with maturities of 1–5 years (Barclays 1–5 Year U.S. Credit Bond Index). Source: FMR.
2
Frequency of reinvestment based on the percentage of bonds maturing within 3 years as of 8/14/15—22.54% for the overall bond market (represented by Barclays U.S. Credit Bond Index), and 55.42% for short-term bonds (represented by Barclays 1–5 Year U.S. Credit Bond Index).
Source: FMR.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2016 FMR LLC. All rights reserved. 686815.6.0

TAXES | TOM HERMAN
How People Err in Estimating A Charitable Tax Break Is
Their Spending in Retirement Back—for People Who
Know How to Use It Wisely
The conventional
wisdom about A popular tax break that died at couples? Is the limit $100,000, or
the end of 2014 has returned from double that amount?
needing to replace the dead. A: You and your spouse each can
70% of your income That’s welcome news for many
older people thinking about making
exclude up to $100,000. That
amount is the maximum per person,
is probably wrong gifts to their favorite charities di- not the maximum for married cou-
rectly from their individual retirement ples. “However, each spouse must
accounts. It’s joyous news for many have his or her own account, and
BY SHLOMO BENARTZI
charities, too. each spouse cannot make a qualified
But, as with too many of our na- charitable distribution for more than
IT’S CONVENTIONAL wisdom among tion’s tax laws, this seemingly sim- $100,000,” Mr. Hall says.
financial advisers: People planning to ple break can be tricky, as readers
retire should aim to maintain 70% of have pointed out with several excel- Q: If I take advantage of this provi-
their current income in retirement. lent questions. sion, can I deduct my transfer as a
WESLEY BEDROSIAN
It sounds sensible enough. But in At issue is a law that generally al- charitable donation?
reality it can encourage people to lows IRA owners who are 70½ or A: No. These charitable transfers
underestimate the amount of money older to transfer as much as are tax-free but not tax deductible.
that will keep them content in re- $100,000 a year to qualified chari-
tirement. ties directly from their IRAs, tax- Q: So if you can’t deduct these
The 70% rule leads us astray be- free. That transfer is excluded from transfers as charitable gifts, why is
cause it fails to address the emo- people are given the death frame, by need to be exposed to both gain and your income. If done properly, the this law so popular?
tional cost of losing 30% of our in- contrast, their minds are naturally loss frames to be able to make real- transfer counts toward an IRA A: Many donors prize this provision
come. Most people focus on the 70% drawn to the reasons they might die. istic decisions about the income they owner’s required minimum distribu- because the transfer won’t inflate
they will keep, not the spending they Instead of thinking about their will need in retirement. Behaviorally, tion for the year. their income, thus helping them in
will give up. They aren’t prepared healthy exercise habits, they focus on neither frame by itself is sufficient. Although this provision expired several ways.
for the changes that will be required their love of hamburgers. While the gain frame can lead people at the end of 2014, Congress resur- Many tax deductions, credits,
in their lifestyles. When they eventu- Framing effects matter because to underestimate the amount of sac- rected it late last year, making it ret- phase-outs and other numbers are
ally are confronted by the specifics they shape our perceptions of the rifice that will be necessary, the loss roactive to the start of 2015—and tied to “adjusted gross income” or
they have to cut, they are unhappy. world and the content of our frame might cause them to think too making it permanent, says Greg certain other measures of income.
In short, the 70% rule makes the fu- thoughts. The question hasn’t negatively about the consequences Rosica, a tax partner at Ernst & Thus, by excluding qualified charita-
ture seem secure and comfortable, changed, but the frame can deter- of those sacrifices. Indeed, economic Young LLP. ble transfers from income, this provi-
even when it’s not. mine how we judge alternatives and research has shown that big differ- If you are thinking of taking ad- sion helps many people save money.
Behavioral economists refer to what we end up choosing. ences in income typically result in vantage of this provision, make sure For example, it may spare them
this as a framing effect. Similar ex- So how can we ensure that fram- minor differences in happiness. you understand the fine print. For from owing higher taxes on Social
amples abound in everyday life, as ing effects don’t ruin our retirement? The behavioral stress test proba- example, one of the most important Security benefits and from having to
people find choices far more appeal- Here’s my proposal: Before workers bly will encourage most people to in-
ing when they are framed in terms settle on a retirement-savings goal, crease their retirement-savings
of gains rather than losses. For in- or decide it’s time to retire, they goals, and thus have more income in Who's filing
stance, people are more likely to buy should undergo a behavioral stress their later years, allowing them to How the tax season is stacking up so far this year Total refund amounts
ground beef when it’s described as test. In short, they should be asked avoid giving up certain pleasures
$191.23 $189.90
75% lean rather than 25% fat. They to identify three expense categories and activities. 82.3 million 2015 2016 billion billion
think a condom with a 95% success they will cut in retirement, with in- It is the same for banks when
82.0 80.4 79.6
rate is safe, but are scared of one structions to be as specific as possi- they undergo stress tests in an effort
with a 5% failure rate. ble as to what exactly they will cut. to determine their ability to with- 66.1 65.4
Framing effects can even shape These cuts should be significant stand a financial crisis. The tests
our estimates of longevity. Research enough to add up to approximately help them identify hidden risks and 2015 2016
by a group led by John Payne, a 30% of their current spending. correct mistaken models before it’s
professor at Duke University’s Fuqua In my experience, while most peo- too late. Average refund amount
School of Business, finds that when ple find the 70% rule palatable, they By considering both gain and loss $2,893 $2,902
people are asked to estimate their find the 30% frame unacceptable. frames, we can start to figure out
lifespan using different frames, they When asked to think specifically what we really want—and what we
come up with strikingly different an- about where they would be willing definitely don’t want to live without. Total Total Total
swers. In particular, asking subjects to sacrifice—perhaps dining out, returns returns number of
if they will “live to” a certain age travel, or spoiling the grandchil- Dr. Benartzi is a professor and co- received processed refunds 2015 2016
leads to estimates that are roughly dren—that is when they become head of the behavioral decision- Note: Cumulative data year-to-date (through March 18, 2016) compared with 2015 (through March 20, 2015)
six to nine years longer than asking more aware of how much they are making group at UCLA Anderson Source: Internal Revenue Service THE WALL STREET JOURNAL.
if they will “die by” a given age. being asked to give up. School of Management, and author
Why? One explanation is the “live And that’s the point of a behav- of “The Smarter Screen” about on- rules is that you must transfer as- pay higher Medicare premiums, as
to” frame focuses our thoughts on the ioral stress test. line behavior. He can be reached at sets directly from the IRA to quali- my colleague Laura Saunders
reasons we might stay alive. When The key insight is that people reports@wsj.com. fied charities. pointed out in a column in The Wall
My friend Steve Treadgold, a law- Street Journal late last year.
yer who lives in La Jolla, Calif., raises If these direct IRA charitable
an interesting question about the transfers weren’t excluded from in-
age limit. Steve recently turned 70. come, taxpayers could get hit in
THE GAME PLAN He wants to make a donation now other ways. Higher adjusted gross
directly from his IRA to charity be- income “might make one more likely
cause it would qualify for a generous to be subject to the tax on net in-
TWO TOUGH YEARS. NOW WHAT? matching contribution from another

organization. Steve will be 70½ in
August. If he waits until then, the
vestment income,” says Mark
Luscombe, principal analyst at Wolt-
ers Kluwer Tax & Accounting. “It
matching offer won’t be available. might increase the amount of the
BY LISA WARD
Steve asks: Can he make the phaseout for many other deductions
transfer from his IRA now and qual- and credits. By keeping adjusted
The Kirchdorfer family is trying to ify for this tax provision since this is gross income lower by doing a direct
regain its financial footing after the year in which he will turn 70½? IRA distribution to a charity, a tax-
two very traumatic years. Or does he have to wait to make the payer may increase the benefit of
Stephen Kirchdorfer, 42, and transfer at least until the day in Au- these other breaks.”
his wife, Ida, 40, who live in a gust when he actually reaches the Moreover, some donors can’t de-
Boston suburb, were earning about official milestone of 70½? duct their charitable donations any-
$270,000 a year when Mr. Kirch- Answer: “You cannot take advan- way because they take the standard
dorfer decided to leave his job at a tage of this special provision until deduction, instead of itemizing.
national flooring company to start you reach age 70 ½,” says Martin About two-thirds of all returns each
Green Flooring Services LLC. Hall, a partner in the Boston office year claim the standard deduction.
The timing was awful. Within a of Ropes & Gray LLP and head of
i i i
year, in May 2014, his son Mikey, the law firm’s private client group.
then 7 years old, was diagnosed “Your reader will have to wait until Some long-term procrastinators
KIRCHDORFER FAMILY
with brain cancer. August.” may be paying a hefty price for their
Mrs. Kirchdorfer, a registered An IRS publication confirms this inaction—or, perhaps, because of an
nurse, quit her job to take care of point. It says you must be least 70½ understandable misunderstanding.
Mikey now 8, and his three sib- “when the distribution was made.” Here is the problem: The IRS re-
lings, ages 11, 9 and 3. Here are answers to other ques- cently announced that an estimated
Mr. Kirchdorfer cut back on The Kirchdorfers should re-examine life and disability insurance and open tions about this provision, known in one million taxpayers are in danger
hours to be at the hospital while up a Roth IRA, two advisers say. some tax circles as “qualified chari- of losing federal income-tax refunds
Mikey underwent two surgeries table distributions,” or QCDs. soon because they haven’t filed their
and chemotherapy. In 2014 their The couple has no savings left, also should specify that the coverage tax return for 2012. Those refunds
income dropped to $48,000. though Mr. Kirchdorfer has a would kick in if he can’t perform his Q: Can I make a transfer from my total about $950 million. About half
“The tumor grew back and $250,000 life-insurance policy and current occupation. “Some policies IRA to my donor-advised fund and of the refunds are worth more than
spread after the first surgery,” he some disability coverage. The couple won’t provide coverage if he can do qualify for this break? $718 apiece, the IRS said.
says, adding that his son spent does not have a will or debt besides unskilled work,” says Mr. Steadly. A: No. Donor-advised funds, such Taxpayers might assume there
three months in the hospital. the mortgage and line of credit. For more coverage, the business as those offered by Fidelity Invest- shouldn’t be a deadline to file a re-
The couple used up their sav- should have key-man insurance. If a ments, Vanguard Group, Charles turn, as long as they are entitled to
ings and modified their mortgage ADVICE FROM A PRO: The Kirchdor- partner unexpectedly dies, the coverage Schwab and other financial institu- a refund. That’s wrong, the IRS
and home equity line, lowering fers need to build up their savings and offers the surviving spouse a cash pay- tions, don’t count as qualified chari- says. To collect, those people must
the interest rate on both to 4% their insurance coverage at the same out, Mr. Steadly says. ties under this provision, says Mr. file a return for 2012 “no later than
and extending the mortgage by time, says David Steadly, a financial The couple should also begin to Rosica of Ernst & Young. this year’s April tax deadline.”
five years. They relied on friends adviser with his wife, Suzanne build up a cash reserve for emergen- Don’t blame the IRS. Blame Con-
and charitable organizations, like Lengyel, at Morgan Stanley. “They cies. The advisers recommend six Q: What about other types of re- gress. The law gives most people
Family Reach, to help pay bills. need to bullet-proof their plan,” says months of income, or about $60,000. tirement plans? For example, can who haven’t filed a return “a three-
Mikey is now back home and Mr. Steadly, adding that the family The couple may want to consider you make a qualified charitable year window of opportunity“ to
enrolled in a clinical trial, which currently would be in dire straights if opening a Roth IRA. Their income is transfer from a 401 (k) plan? claim a refund, the IRS said. If you
the Kirchdorfers say seems prom- anything happened to Mr. Kirchdorfer. likely to exceed the limit for married A: No, says Mr. Hall of Ropes & haven’t filed by the deadline, the
ising. Meanwhile, the family’s fi- Part of that protection must be a couples in 2017. With Roth IRAs, qual- Gray. This provision doesn’t apply to money goes to the U.S. Treasury.
nancial situation is stabilizing, and will, specifying who will take care of ified withdrawals are tax free, “distributions from Keoghs, 403(b) For returns that were due for 2012,
the couple hope to begin rebuild- the children if something happened to whereas withdrawals from a tradi- plans, 401(k) plans, profit-sharing “the window closes” on this year’s
ing their nest egg. both spouses. The couple should also tional IRA are subject to income tax. plans and the like,” he says. April tax-filing deadline—which is
Mr. Kirchdorfer now earns increase Mr. Kirchdorfer’s life-insur- If the couple decides to hold off Also, distributions from employer- Monday, April 18, 2016 for most of
about $10,000 a month after ance policy tenfold to $2.5 million, Mr. saving until their income rises, they sponsored retirement plans such as the country.
taxes, and expects to make it Steadly says. This would cost about may be able to fund a Roth IRA by Simple IRAs and Simplified Em- Some low-income taxpayers may
$16,666 a month starting in June. $3,200 a year, or less than $300 a opening a traditional IRA and then ployee Pension Plans “don't qualify,” be missing out on a valuable oppor-
His company, which provides floor- month. Then, if Mr. Kirchdorfer dies, immediately converting it to a Roth Mr. Hall says. tunity. “We especially encourage stu-
ing and janitorial services and em- Mrs. Kirchdorfer will be able to replace IRA before there are any taxable dents and others who didn’t earn
ploys 30 people, has signed several his income, pay down the mortgage gains, says Mr. Steadly. Q: Is the maximum exclusion much money (during 2012) to look
new contracts. He and a partner and have supplemental cash flow. The couple should put building a amount really $100,000 a year, or into this situation because they may
each own half of the business. The family needs to re-examine Mr. nest egg before saving for college. is it $100,000 over my lifetime? still be entitled to a refund,” says
At $10,000 a month, the fam- Kirchdorfer’s disability insurance, too. The need for a nest egg is even more A: That $100,000 amount is the IRS Commissioner John Koskinen.
ily is basically breaking even, with They should buy the maximum cover- pressing because they lack equity in maximum annual amount, says Mr. And “many low-and-moderate in-
some wiggle room. Almost half of age, generally 60% to 70% of after- their home, which many people use as Rosica of Ernst & Young. It isn’t a come workers may not have claimed
Mr. Kirchdorfer’s income goes to tax income, the advisers say. The dis- a source of liquidity later in life, says once-in-a-lifetime offer. the earned-income tax credit,” which
the mortgage, home-equity line ability policy needs to be paid with Ms. Lengyel. is designed to help the working poor,
and health care—including policy after-tax money, so the benefits can “They could both live for another Q: How does it work for married the IRS points out.
premiums and out-of-pocket be accessed tax-free. “It can be a 40 or 50 years,” she adds.
costs. Living expenses, such as huge differential,” says Ms. Lengyel. Mr. Herman is a writer in New York City. He was formerly The Wall Street
car payments and utilities, cost The coverage should reflect his in- Ms. Ward is a writer in Mendham, Journal’s Tax Report columnist. Email your comments and tax questions to
about $3,500 a month. creased earnings, she adds. The policy N.J. Email her at reports@wsj.com. taxquestions@wsj.com. Include your full name, address and phone number
in case we need to contact you to get more details about your question.

ASK ENCORE | GLENN RUFFENACH
Where Retirees Can Find Ideas for Educational Travel

Also: How to withdraw from a Roth IRA, and questions about Social Security benefits
Planning for retirement benefit—is 62. (One notable excep- to a Roth from a traditional IRA—is
can be a daunting pro- tion: surviving spouses. A widow or Dec. 31. So, if you transfer money to
cess that raises a host widower can claim benefits as early your Roth on April 1, that transaction
of questions. So we as age 60; a disabled widow or wid- (and any tax due) would be reflected
have introduced Ask ower can claim as early as age 50.) on your tax return for 2016.
Encore as a regular So, if your wife has reached 62, she
i i i
feature in the Investing can file for Social Security. If she hasn’t
in Funds & ETFs and Wealth Manage- reached 62, she wouldn’t be able to My husband and I—ages 66 and
ment reports. Written by Glenn collect a spousal benefit while she is 63, respectively—are both retired. My
Ruffenach, a former reporter and edi- waiting to reach her retirement age. husband claimed his Social Security
tor for The Wall Street Journal, and benefits at age 62. I plan to claim my
i i i
co-author of “The Wall Street Journal benefits at my full retirement age of
Complete Retirement Guidebook,” the As I understand it, 2015 contribu- 66. I will be required to go on Medi-
ISTOCKPHOTO/GETTY IMAGES
column examines financial issues for tions to a Roth IRA can be made as care at age 65 and pay Medicare pre-
those thinking about, planning and liv- late as April 15, 2016. If I transfer miums. Am I eligible to claim a spou-
ing their retirement. We welcome your money from a traditional IRA into a sal benefit at age 65 to cover my
questions and comments at asken- Roth IRA on April 1, 2016, do I pay Medicare premiums, and then claim
core@wsj.com. federal income taxes on this IRA re- my own benefits at 66 or later?
demption on my 2015 or 2016 taxes?
i i i
Short answer: You can’t do this.
Cornell University’s Adult University in Ithaca, N.Y., offers about two-dozen You might be confusing “contribu- If you claim benefits at age 65—be-
My wife and I hope to travel more courses and the opportunity to explore the Finger Lakes region. tions” and “conversions,” two concepts fore your “full retirement age,” as de-
frequently in retirement, and we that can trip up people at tax time. fined by the Social Security Adminis-
would like to try some educational Birding and Wildlife.”) could be more complicated.) Let’s start with contributions. A tration—the agency will look at two
trips, if possible. Any suggestions? If you’re uncertain about these wrinkle in the tax laws gives people numbers: the size of your benefit
i i i
Any groups or firms that specialize in rules, check out, among other re- about 15 months to make a contribu- based on your earnings record, and
this type of travel? When withdrawing from a Roth sources, rothira.com and irahelp.com. tion to an IRA for a particular tax the size of your spousal benefit (given
IRA at retirement, do I need to use year. So, for tax year 2015, you have that your husband is already collecting
i i i
Start with Road Scholar (road- any particular forms? Or do I just from Jan. 1, 2015, to April 18, 2016, Social Security). At this point, the
scholar.org), which, in the mid-1970s, make a withdrawal? I have been collecting Social Secu- to make a contribution to your Roth. agency will automatically award you
all but invented the idea of educational rity benefits for some years now. My (Normally, the deadline is April 15, the the larger of those two benefits. Pe-
travel for older adults. The Boston- The mechanics, in this case, are wife won't reach retirement age for due date for your federal tax return. riod. You don’t get a say in the matter.
based organization offers about 5,500 simple. First, though, make sure you’re another seven years. Is it possible for But the Internal Revenue Service has And after that determination has been
tours in all 50 states and 150 coun- familiar with the unique rules involving her to claim a spousal benefit until pushed the filing date this year to made, you won't be able to switch to
tries. Among the most popular: seeing withdrawals from Roth accounts. she reaches her retirement age? April 18.) Depending on your income, a different benefit down the road.
western Canada by train; island hop- Your account custodian likely has the maximum contribution for 2015 is This is what’s known as the
ping in Greece; and exploring Yosemite an “IRA Distribution Form” (or some- The youngest age at which most $5,500. People age 50 and older can “deemed filing” rule. In other words, if
National Park in California. thing with a similar title) that will people can claim Social Security— contribute as much as $6,500. you apply for benefits before reaching
We also are big fans of Cornell Uni- need to be filled out. In most cases, whether it’s a benefit based on their By contrast, the deadline for a full retirement age, you are required or
versity’s Adult University in Ithaca, N.Y. the same form is used for withdraw- own earnings record or a spousal Roth conversion—a transfer of funds “deemed” to file (according to the So-
(Go to sce.cornell.edu and click on: Cor- als from various types of individual cial Security Administration) for all
nell’s Adult University.) Each July, the retirement accounts. Among the in- benefits that you might qualify for.
school offers, in effect: a two-fer: some formation required: the type of distri- Assets in Roth IRAs But…if you wait until your full re-
two-dozen courses, each lasting about bution (more about this in a mo- About 20.3 million households in the U.S. have a Roth IRA. Among those, tirement age of 66, you would have a
six days, that dive into a variety of ment), the amount to be withdrawn, the following percentages have assets in those accounts valued at: choice of benefits. You could claim
subjects and activities (art, politics, and where the money should go. A fi- just a spousal benefit and then switch
food, wine and kayaking, among oth- nancial adviser should be able to help 5% Less than $10,000 to your benefit (based on your work
ers), and the opportunity to explore the you with this process, if need be. record) at some point in the future.
$10,000 to $24,999
Finger Lakes region. Less simple are the rules that 26% (Say, age 70.) This would allow your
If you enjoy cruising, check out cover Roth withdrawals. Take the type 11% $25,000 to $49,999 benefit to increase in size, thanks to
Boston-based Grand Circle Travel of distribution: Is it a “qualified” dis- “delayed retirement credits.”
(gct.com), which offers, among other tribution? (Meaning, at a minimum, $50,000 to $99,999 This is known as a “restricted ap-
trips, educational travel aboard small that the account is at least five years plication”—filing for just a spousal
ships. (Example: “Antarctica’s White old.) And what about the funds inside
18% $100,000 to $249,999 benefit at one’s full retirement age.
Wilderness,” with a 98-passenger ves- the account? Are they simply contri- 28% And you are eligible to do this, even
$250,000 or more
sel.) Or try Naturalist Journeys (natu- butions that you have made—or does under the new Social Security rules.
ralistjourneys.com), in Portal, Ariz., the account also include amounts 12% (A person had to reach age 62 before
Source: Investment Company Institute
which specializes in nature and birding converted from a traditional IRA or IRA Owners Survey the end of 2015 to be eligible for a re-
tours. (Example: “Costa Rica: Raptors, retirement plan? (If so, a withdrawal THE WALL STREET JOURNAL. stricted application in the future.)
YEARS TO RISK
RETIREMENT TOLERANCE
1
GOAL SOLUTION
PROGRESS
GUARANTEED
INCOME
PAM, AGE 64 STAY ON TRACK FOR RETIREMENT

WITH INCOME YOU CANNOT OUTLIVE.
NO MATTER WHERE YOU STAND TODAY.
Where do you stand in the race for retirement? Pam is at risk of coming
up short in hers. A sudden market drop just before or after she retires
could leave her lacking the income she’ll need for a retirement that
could last 20 to 30 years or longer.
With the guidance of a financial professional and one of the innovative
guaranteed income solutions from Prudential Annuities, Pam can get
retirement ready. Like the 1.2 million people Prudential Annuities is
helping to secure retirement income they cannot outlive.
Explore our Retirement Challenge Profiles

at prudential.com/retireready
Financial professionals, call our
National Sales Desk at 844-207-6979.
Investors should consider the features of the contract and the underlying portfolios’ investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other
important information is contained in the prospectus, which can be obtained from your financial professional. Please read the prospectus carefully before investing.
Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ (main office) and distributed by Prudential Annuities Distributors, Inc.,
Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Prudential Annuities is a business of Prudential Financial, Inc.
Annuity contracts contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with complete details.
A variable annuity is a long-term investment designed for retirement purposes. Investment returns and the principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be
worth more or less than the original investment. Withdrawals or surrenders may be subject to contingent deferred sales charges.
An excess withdrawal occurs when your cumulative Lifetime Withdrawals exceeds the income amount allowed by the product or living benefit in an annuity year. If an excess withdrawal is taken, only the portion
of the Lifetime Withdrawal that exceeds the remaining income amount for that year will proportionally reduce the guarantee for future years. If a withdrawal in excess of the income amount reduces the account
value to zero, no further amount would be payable and the contract terminates.
All references to guarantees, including optional benefits, are backed by the claims-paying ability of the issuing company and do not apply to the underlying investment options.
© 2016 Prudential Financial, Inc. and its related entities. Prudential Annuities, Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc. and
its related entities, registered in many jurisdictions worldwide.
0289056-00001-00
What if You Get Sick While Traveling Abroad?

For those planning a trip, it helps to
know what your insurance covers, and
whether you need to supplement it
of the U.S. Many private health plans
BY ANNE TERGESEN
do—but typically only for emergen-
cies that arise when a person is tem-
PLANNING TO TRAVEL or retire porarily out of the country.
overseas? Before packing your bags, Because the definition of an
it’s important to research just how emergency varies from policy to pol-
portable your health insurance is— icy, “it’s important to read the plan
and make plans to supplement or re- documents,” says Maura Carley,
place it if it won’t cover the services chief executive of Healthcare Naviga-
you may need or want. tion LLC, which provides health-in-
Some travelers may be able to get surance consulting to individuals.
by with the coverage they already UnitedHealthcare, for example,
have. That’s because many private says that under its Medicare Advan-
health insurance plans sponsored by tage plans—which replace Medicare
employers and Medicare-affiliated with private insurance—a heart at-
programs cover medical emergencies tack would qualify for coverage, but
outside the U.S. a “routine health-care need,” such as
treatment for flu, generally wouldn’t.
In addition, many private plans
Who's Covered will cover only a portion of the cost
DAN PAGE
Does your domestic health-insurance of care outside of the U.S. Both
provider cover you when traveling Medicare Advantage and employer-
out of the country? sponsored plans often consider such
treatment an out-of-network ex- GeoBlue. Policyholders often receive Because they cover only medical that covers doctor’s visits, hospital-
pense that requires participants to access to networks of English-speak- services, travel medical plans gener- izations and medical evacuations in
pay a higher share of the costs. ing doctors and hospitals that accept ally cost less. For a couple in their some or all parts of the world.
Some Medigap policies, which sup- payment from the companies. 50s taking a two-week, $5,000 vaca- Be aware that these plans deny
NOT SURE plement basic Medicare, cover 80% One variety, known as a compre- tion, a travel medical plan costs coverage to some applicants based
26.6% YES of the cost of emergency care hensive plan, reimburses policyhold- about $80, versus $200 for a compa- on health, and the premiums may
39.1% abroad. (Medigap plans C, D, F, G, M ers for most costs associated with a rable comprehensive plan with a “soar” as you age, says Ms. Carley.
and N provide this coverage if the wide range of travel-related prob- $50,000 medical limit and $250,000 Retirees eligible for Medicare
claim begins during the first two lems, from illness, injury and medi- of medical-evacuation coverage, ac- should think twice about dropping
NO
months of a trip—after a $250 de- cal evacuations to lost luggage, de- cording to insuremytrip.com. or failing to sign up for basic cover-
34.4%
ductible and up to a lifetime maxi- layed flights and nonrefundable But with a travel medical plan, age. Although original Medicare pro-
mum of $50,000.) expenses if a trip falls through. you may not be able to get coverage vides no coverage abroad, those who
Regardless of your coverage, ex- In contrast, travel medical plans for pre-existing medical conditions, return to the U.S. will need it.
Source: InsureMyTrip survey conducted pect to pay any bills you incur provide mainly health and medical- often defined as ailments you had in Most people pay no premiums for
December 11-25, 2014 abroad out-of-pocket and then seek evacuation coverage. (Some compa- the six months to three years before Medicare Part A, which covers hos-
THE WALL STREET JOURNAL. reimbursement from your plan, says nies also sell stand-alone medical- you purchased your policy. Under pitalizations, so “there is generally
Devon Herrick, a health economist at evacuation plans.) many comprehensive plans, it’s pos- no downside to keeping it,” says Ms.
But those who want coverage for the National Center for Policy Analy- Travel medical plans generally al- sible to secure such coverage if you Schwarz.
medical evacuations or routine ser- sis, a nonprofit research firm. “You low you to buy more coverage—typi- buy a policy in a set time frame—of- Part B, which covers doctor’s vis-
vices, including doctor’s visits, gen- cannot expect hospitals outside the cally, a maximum of $1 million for as ten within 10 to 21 days of your ini- its, costs at least $121.80 a month—
erally have to buy additional insur- country to have any idea how to bill long as a year. Comprehensive plans tial trip payment. premiums rise with income. But un-
ance. Moreover, people who retire your insurance company,” he says. often only go as high as $500,000 der Medicare’s rules, it’s generally
abroad should try to secure coverage Travelers who decide to buy in- and last from one to three months, Do your research only possible to enroll in Part B dur-
in their new country of residence, ternational coverage have a few op- says Lynne Peters, insurance product If you plan to retire overseas, it’s ing the first three months of the
while retaining basic Medicare in tions. Those with employer-spon- manager at InsureMyTrip.com, which important to research your destina- year—and the coverage doesn’t start
case they return to the U.S. sored plans may be able to purchase allows users to compare policies. tion’s health-care system. Some until July 1. In addition, those who
supplemental international coverage Both types of travel plans usually countries allow people who establish sign up late for Part B face penalties
Know what you have from the plan. limit the amount of insurance older residency to join a national health- that may add 10% to their base Part
The first step in assessing your Alternatively, they can buy travel adults can buy—and premiums gen- insurance program, says Casey B premiums for every 12 months
needs is to understand what your insurance. Such policies typically erally rise with age, says Ms. Peters. Schwarz, senior counsel for educa- they delayed.
current health plan will and won’t add 5% to 17% to a trip’s cost, de- Ms. Carley recommends that Medi- tion and federal policy at the non-
cover abroad. pending on factors such as your age, gap policyholders try to save the profit Medicare Rights Center. Ms. Tergesen is a reporter for The
Original Medicare generally says Brendan Sharkey, director for $50,000 of overseas coverage under If you decide you need private in- Wall Street Journal in New York.
doesn’t provide any coverage outside individual sales at travel insurer, those plans for their later years. surance, look for an expatriate plan Email anne.tergesen@wsj.com
The Latest Corporate Benefit: 529 Plans ADVISERS’ VOICES

HENRY E. KLOSOWSKI
More companies look to help employees save for college cial adviser,” says Morningstar ana-
lyst Leo Acheson, adding that ad-
The 24% of L.L. Bean’s employees

viser-sold plans tend to offer more
“granular” investment options, such ESTATE PLAN FOR
who live outside of Maine can con-
tribute to NextGen via payroll, but
as high-yield bonds, whereas direct-
sold plans tend to be more broad.
A CHILD WITH
they aren’t eligible for the matches
and grants that make the plan so at- Customized advice
SPECIAL NEEDS
tractive to Maine residents. Some employers don’t want to A child with special needs can
“It is important for employees to promote a specific 529 plan or plans, pose a complex challenge when it
understand how [their] state plan so they use third-party companies comes to estate planning. If the
and its benefits compare to the plan such as LEAF College Savings LLC child is expected to require special
chosen by the employer,” says Mark and GiftofCollege.com to facilitate care and financial help through
Cortazzo, a financial planner at payroll deposits and matching con- adulthood, this is likely to affect
Macro Consulting Group in Parsip- tributions into 529s that employees how guardians divide up their as-
pany N.J. Still, he says, the conve- choose on their own. Some of these sets among heirs.
nience and ease of payroll contribu- services even help users pick a plan. To avoid missteps, parents and
tions may outweigh all other Kaufman Rossin, a Miami-based grandparents in this situation
considerations, especially if it means accounting firm with offices in sev- need to understand their options.
the employee is more likely to save. eral other major cities, is using one A supplemental-needs trust, for
L.L. BEAN
(L.L. Bean says it will consider of these services, Gradvisor, to roll example, is one of the most use-
broadening its 529 benefits to in- out 529-plan benefits to its 335 em- ful tools for people seeking to
Retailer L.L. Bean began offering employees automatic payroll deposits into clude out-of-state plans and a com- pass on funds to a child in need
Maine’s NextGen 529 college-savings plan last October. pany match.) of lifelong support for a disability.
Company matches give rise to an- Easier Access Although the trust earmarks
BY LISA WARD things employees should consider: other tax issue that 529 savers need Percentage of companies offering 529 assets for the benefit of the in-
to consider. While contributions to college-saving plans as part of heritor, it keeps them under the
Tax complications 401(k) retirement accounts are tax employee benefits packages management and control of as-
THE 529 PLAN is coming to the Many consider 529 plans to be deferred, 529 contributions are signed trustees (typically the fam-
15%
workplace. valuable college-savings tools be- made with after-tax dollars. That ily members who will care for the
To make it easier for employees cause contributions are allowed to means workers who contribute to child after the guardian’s death).
to save money for college, more grow tax-free, and earnings can be employer-sponsored 529s will owe 10 This arrangement can be crucial if
companies are adding 529-plan withdrawn free of federal income tax annual income tax on any employer the child receives Medicaid or
perks to workplace-benefits pack- if used to pay for qualified education contributions or matches. 5 other government benefits related
ages. Some employers allow workers expenses. In addition, most states Mr. Cortazzo says the added tax to the disability. Since these bene-
to fund these college-savings vehi- offer tax deductions or credits in ex- bill is well worth the benefit. Not fits often depend on a person’s
cles automatically via payroll. Others change for 529 contributions. only do employer matches help pad 0 assets and income level, an indi-
kick in matching contributions. The When people open 529 accounts a college-savings account, workers 2011 2012 2013 2014 2015 vidual may suddenly not qualify
goal is to make saving for college on their own, they can choose from may be able to withdraw the funds Source: Society for Human Resource Management for benefits if he or she receives a
akin to saving for retirement by pro- almost any of the direct-sold plans in an emergency because only 529 THE WALL STREET JOURNAL. large inheritance one year. Using a
viding some of the same incentives available nationwide. If they sign up earnings are subject to taxes and supplemental trust instead of
that encourage workers to contrib- through work, they may be limited penalties if not used for education- ployees later this year. “A majority transferring assets to the child
ute to 401(k) accounts. to a specific plan or plans that their related expenses, he says. of our people are in south Florida, outright can help prevent that.
“We have absolutely seen an up- employer is promoting. And depend- Some companies, such as San but I wanted to make [the college- Life insurance also can help
tick in both interest and numbers of ing on where an employee lives, that Francisco-based software firm in- savings plans] available to all our simplify estate planning for those
employers offering college-savings could mean leaving some valuable Dinero, rely on financial advisers to employees,” says Joy Batteen, a hu- struggling to divide up assets
plans in the workplace, says Kris tax breaks on the table. help them set up their 529 offerings. man-resources director at the firm. fairly when one heir is going to
Spazafumo, a vice president at Here’s why: Twenty-seven states “We don’t have a fully built out HR Employees can go to Gradvisor’s need more financial support than
American Funds, whose CollegeAm- and the District of Columbia offer department,” says Amy Wolfen- website for customized advice on the others. For example, parents
erica 529 plan is the country’s larg- deductions or credits only on contri- berger, the firm’s client-communica- which direct-sold 529s might best can leave an equal portion of their
est by assets under management, ac- butions residents make to their in- tions manager, in explaining why the suit their needs and how much to estate to each of their children,
cording to Morningstar. state 529 plan. So if an employer is company used an adviser to roll out save per paycheck. They also can but then assign a life-insurance
Although 529 perks aren’t yet a promoting a 529 plan sponsored by 529 benefits to its staff in January. track their investments, adjust con- award to the supplemental-needs
common employee benefit, College- a state other than the one in which If an employer has taken this ap- tributions and speak with a financial trust of the child with the disabil-
America says its corporate-spon- the worker lives, the worker may not proach, be aware: Some 529 plans adviser for no additional charge. ity. This can alleviate anxiety
sored accounts have been expanding qualify for those tax incentives. are sold only through advisers, who Still, some financial experts say it about fairness by casting the fi-
in number at a rate of about 5% an- L.L. Bean Inc. last October began get commissions on the funds they may take features such as automatic nancial outlook of the child with
nually over the past five years. Simi- offering automatic payroll deposits promote. These plans often have enrollment for usage of 529 plans to special needs as a separate mat-
larly, Ascensus Inc., which provides into NextGen, the 529 plan spon- higher cost structures, including an- approach that of 401(k)s. Enrollment ter that is addressed by a sepa-
administrative services for more sored by Maine. The Freeport, nual sales charges, than direct-sold needs to be as simple and automatic rate means.
than 30 529 plans across the U.S., Maine-based retailer says it chose plans, says Andrea Feirstein, founder as possible, says Michal Grinstein-
says the number of employers par- that plan because three-quarters of of New York-based AKF Consulting Weiss, a professor at Washington Mr. Klosowski is a partner and
ticipating in payroll direct deposits its employees live in Maine, and the Group, which advises state govern- University in St. Louis, who is re- chairman of the trusts and
across the plans it manages rose to state gives residents who enroll in ments on 529 plans. Employees need searching employer-sponsored finan- estates group of Moritt Hock
more than 12,000 last year from just NextGen a 50% match on contribu- to evaluate whether the extra costs cial-wellness programs. & Hamroff LLP in Garden City,
over 11,000 in 2014. tions up to $300 annually, as well as are worth it, she says. N.Y. Email him at
As 529 benefits make their way a one-time $100 grant for six regular “You’re paying for the services Ms. Ward is a writer in Mendham, reports@wsj.com.
into the workplace, here are a few automated contributions. and expertise offered by the finan- N.J. Email reports@wsj.com
When it comes to
your wealth, the
questions you ask
could be your most
valuable asset.
Ask questions.
Be engaged.
Own your
tomorrow.™
In life, you question everything. The same should be true when it

comes to managing your wealth. Do you know what your investment
recommendations are based on? Does your financial professional stand
by their word? Do you know how much you’re paying in fees? And how
those fees affect your returns? Ask your financial professional, and if
you don’t like their answers, ask again at Schwab. We think you’ll like
what we have to say. Talk to us or one of the thousands of independent
registered investment advisors that do business with Schwab.
Wealth Management at Charles Schwab

PLANNING | PORTFOLIO MANAGEMENT | INCOME STRATEGIES | BANKING
Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
To see how Schwab stands by our word, visit www.schwab.com/accountability

Independent registered investment advisors (“advisors”) are not owned by, affiliated with or supervised by Schwab or its affiliates. Schwab provides custody, trading and operational
support services for advisors. Not all products and services available through Schwab and its affiliates are available through advisors. Registration does not imply a certain level of
skill or training. There are eligibility requirements to work with a dedicated Financial Consultant. Wealth management refers to products and services available through the operating
subsidiaries of the Charles Schwab Corporation of which there are important differences including, but not limited to, the type of advice and assistance provided, fees charged, and
the rights and obligations of the parties. It is important to understand the differences when determining which products and/or services to select. The Charles Schwab Corporation
provides a full range of brokerage, banking, and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (“Schwab”),
Member SIPC, offers investment services and products, including Schwab brokerage accounts. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing
Lender), provides deposit and lending services and products. ASK QUESTIONS. BE ENGAGED. OWN YOUR TOMORROW. is a trademark of Charles Schwab & Co., Inc.
©2016 The Charles Schwab Corporation. All rights reserved. (0915-8050) ADP88322-00

haven’t saved enough for re- San Jose, Calif., San Francisco with less than half the square
tirement,” Mr. Carle says. and Boston, according to footage.
“What they do have is equity apartment-rental website “They’re going for a nicer,
in their homes; but do they Zumper, plenty of baby boom- smaller package,” he says.
know how to spend it? Most of ers are choosing to buy. “The lack of stock market re-
them haven’t thought about But instead of downsizing turns in recent years may
the last five to seven years of to something cheaper, many make some people think con-
their retirement, which will be are buying homes at the same tinuing to keep their money in
the most expensive.” price point or higher than the real estate rather than pull it
Those who opt to rent, Mr. one they just sold, a trend that out by downsizing is OK.”
Carle cautions, must be careful concerns some financial plan- Ms. Kelley, the Rhode Is-
not to “fritter away” the cash ners. land real-estate agent, says
they unlock through a home “The only time a home is a one of her clients is selling a
sale and instead try to pre- financial asset is when you’re two-bedroom townhouse for
serve it for future income or trading down,” Mr. Farrell $200,000 and planning to
medical costs. says. “Certainly thinking about move into a single-family
Asset or albatross?
Renting has both advan- Renting by numbers
tages and disadvantages for Numbers of renters in the U.S. by age group
older consumers. On the plus
side, renters typically enjoy a 7 million
RICHARD MIA
wider range of housing op- 2005 2015
6
tions, flexibility (a one-year
lease is a short-term commit- 5
ment) and the fact that build-
ing managers handle repairs, 4
Retirees’ Housing Dilemma: landscaping and snow shovel-

ing.
A big financial disadvantage
3
Do We Rent or Do We Own? for older renters, however, is

that as rising rents take a big-
ger portion of a fixed income,
1
The decision could have a big impact on whether there is no offsetting increase
in equity like there often is
0
Under 25–
25 29
30–
34
35–
39
40–
44
45–
49
50–
54
55–
59
60–
64
65–
69
70–
74
75+
there’s enough money for the last years of life when you own a home. And
rental prices can double over a Source: Joint Center for Housing Studies of Harvard University;
25-year period. U.S. Census Bureau, current population surveys
nior real-estate market. healthy chunk of home equity Charles Farrell, a financial THE WALL STREET JOURNAL.
BY JANE HODGES
The National Association of can make a big difference planner with Northstar Invest-
Realtors, too, says the median when it comes to planning re- ment Advisors LLC in Denver, taking the equity that’s been home that will cost $250,000
RENT OR OWN? It’s a question age of home sellers has risen tirement finances. says if a rental starts out at built in a primary home and to $300,000. She says some
many young adults face as to 54 from 46 since 2009, an “If retirement savings pres- 30% to 40% below the prior buying something else you can baby boomers who are trading
they try to find the right bal- indication that empty nesters ent the risk of a shortfall, one mortgage payment, it may be own debt free and with low up are doing so because they
ance between their housing who were waiting for a hous- of the best things you can do worth considering. But he ad- expenses is smart.” want a more updated home
needs and financial situations. ing-market recovery are start- is liquidate real-estate assets,” vocates that seniors not spend Homeowners who own their but don’t want to renovate the
These days, many older ing to list their properties. says Christine Benz, director more than 15% of their annual homes outright should expect place they are selling.
homeowners are grappling Of course, planting a for- of personal finance at Morn- retirement income on hous- to pay about 3% of the home’s For still others, the goal is
with it, too. sale sign in the yard raises the ingstar Inc. “That’s more pal- ing—rented or owned—be- value toward taxes, insurance, to find a home that is simpler
Home-sales data and anec- question, “Where to next?” atable than hearing you need cause as the years progress, utilities and maintenance, Mr. to own.
dotal evidence suggest that And for baby boomers—espe- to keep working until you’re medical expenses typically Farrell says. That means the “They still want to own,”
more baby boomers are put- cially those with oversize 72.” rise. (Other financial planners owner of a $1 million home says Sammy Hastings, a real-
ting for-sale signs on their houses and inadequate sav- Andrew Carle, executive in says seniors should spend no would be paying $30,000 a estate agent in San Francisco
homes this year, seeking to ings—it is a decision that residence at the Senior Hous- more than 25% on housing, year to start aging in place. who expects 60% of his busi-
unlock the equity they have could have a major impact on ing Administration program at and less if they own a home Guy Cecala, publisher of the ness to come from baby boom-
regained since the housing how they fare financially in re- George Mason University and outright.) Inside Mortgage Finance ers this year. “But they want a
downturn. tirement, some experts say. a senior housing researcher, newsletter, says that in Wash- home that gives them more
“They are selling more this says it is important for older Size and Price ington he’s seeing people freedom—maybe it has no
year than in the last two Unlocking equity consumers to consider their With median monthly rents downsize their footprints but yard, or a smaller footprint.”
years,” says Heidi Kelley, an Although investors have needs not just for the next few on one-bedroom apartments not their housing spending—
agent with Keller Williams been told for years not to decades, but for the final one- now topping $2,000 in desir- for example, trading a $1.5 Ms. Hodges is a writer in
Leading Edge in Providence, think of their primary homes third of retirement. able urban areas such as million 4,500-square foot Seattle. She can be reached
R.I., who specializes in the seas investments, having a “We know that the boomers Washington, D.C., New York, house for a $1.5 million condo at reports@wsj.com.
THE EXPERTS
Insights on Treasurys, Tax-ID Theft and Volatility

Hidden Insurance Benefit of Treasurys heated arguments about what sacrifices must when purchasing, including:
While we don’t have a strong opinion on the be made to achieve it. What spending gets cut, •Buying in a good location to limit the down-
future of U.S. Treasurys as an asset class, we and by how much? What can be scaled back side of a potential correction.
can analyze how they act in times of crisis. The and what has to be eliminated altogether? And •Locking in fixed-rate loans to avoid needing
results are stunning. When the stock market is what can be done to generate more income that to refinance at higher rates and lower values.
zigging, Treasury bonds are zagging, providing might open the door to savings that isn’t cur- •Building cash reserve to address less access
an amazing insurance benefit for a portfolio. rently taking place? to capital (e.g., banks closing home-equity lines).
The inverse relationship between S&P 500 These are uncomfortable topics to be sure, —Alok Deshpande, CEO, founder of SmartPath,
returns and total returns for the 10-year Trea- but all the more necessary at a time when a financial education and wellness company
sury note during market downturns is clearly household incomes have yet to show material
i i i
The Experts are an online intriguing for an investor concerned with vola- and consistent improvement, while savings re-
group of industry and tility. In addition to providing a real return, mains the Achilles' heel of personal finance.
thought leaders who blog plus an expected inflation return, the Treasury —Greg McBride, senior vice president and chief Protect Yourself From Tax-ID Theft
about topical issues in bond has served as a quasi-insurance policy be- financial analyst, Bankrate.com To avoid falling prey to tax-identity thieves
their fields of expertise. cause of its flight-to-quality characteristics. and getting forced into the complicated and
i i i
Edited excerpts follow. Of course, the hidden insurance benefit asso- frustrating process of having to straighten out
For more, go to ciated with U.S. Treasury bonds hinges on the your identity with the IRS, know your vulnera-
WSJ.com/Experts. assumption that the U.S. will maintain its status Why Home Buyers Should Be Fearful bilities and how to strengthen your defenses.
as the king of the hill. When the world goes “Be fearful when others are greedy, and be Evidence suggests that the IRS is trying to
south, and everyone wants a stable asset, the greedy when others are fearful.” Warren Buffett do a better job at detecting and responding to
U.S. Treasury bond is the only game in town. wrote those words in 2008, at a time when the this growing problem. The agency now issues
But this could change. There are many reasons U.S. economy was entering one of the worst re- unique six-digit Identity Protection PINs that
why the U.S. could lose its standing as a flight- cessions in history. From Mr. Buffett’s perspec- must be entered when e-filing if you have been
to-quality asset. But there are even more rea- tive, it was a time to be “greedy” and find great identified as a tax-identity-theft victim. Taxpay-
sons why the U.S., while not perfect, is still investment opportunities. ers in Florida, Georgia and the District of Co-
light-years ahead of the competition. These in- Today, we may be on the opposite side of lumbia can opt in to the program. But amaz-
clude 50-plus years as the international reserve that quote, especially as it relates to real estate. ingly, scammers also have attacked the
currency, and edges in education/research infra- As of November 2015, average home prices for program.
structure, entrepreneurial culture, a dominant the cities within the S&P/Case-Shiller 10-city Keep in mind, legitimate communications
military, endowed location, and so forth. and 20-city indexes are back to 2007 levels. from the IRS always starts with a series of let-
Treasury bonds still serve as the ultimate Many buyers continue to flock to real estate, ters and only gradually move to phone calls or
portfolio diversifier and should be part of any in part because interest rates remain low. But meetings. IRS proceedings always happen with
portfolio concerned with volatility driven by eq- several signs suggest caution is in order: oversight and include an obvious appeals-pro-
uity exposure. But things can—and do—change. •Institutional investors (those buying more cess mechanism. If someone is trying to pres-
—Wesley R. Gray, CEO and CIO, Alpha than 10 properties in a calendar year) ac- sure you for a short-timeframe payment
Architect, a quantitative asset manager counted for less than 3% of single-family and through questionable means, there is no chance
condo sales in 2015. According to RealtyTrac, that he or she actually represents the IRS.
i i i
that is the lowest level since 2000. What else can you do?
•Personal savings rates remain low. Home- •File your return as early as possible.
America’s Lack of Savings ownership can create a cash crunch and low sav- •Always use security software with a firewall
A recent Bankrate.com poll found that only ings rates could highlight pending challenges. and good antivirus protection.
52% of Americans have more money in emer- •Equity markets were highly volatile during •Always use strong passwords.
gency savings than in credit-card debt. More the second half of 2015. While retirement funds •Do not carry your Social Security card.
troubling was the 21% who didn’t have either should be considered long-term investments, •Do not click on links or download attach-
credit-card debt or emergency savings—mean- sharp changes often cause investors to worry ments from suspicious email accounts.
ing they are one unplanned expense away from and to avoid major purchases such as a home. The IRS “Taxpayer Guide to Identity Theft”
high cost debt without any kind of safety net. For some, being “fearful” means holding off is a good place to start if it happens to you.
As more households recognize and repriori- on purchasing real estate in the near term. For —George Papadopoulos, a fee-only wealth
tize emergency savings, there are bound to be others, it means exercising financial caution manager in Novi, Mich.
The Journal Report welcomes REPRINTS AVAILABLE

Follow The Experts >> your comments—by mail, fax or
email. Letters should be ad- FULL PAPER: The entire Wall Street Order by:
dressed to Lawrence Rout, The Journal issue that includes the Wealth
Wall Street Journal, 4300 Route 1 Email: JournalReports@dowjones.com
This Journal Report doesn’t stop here. Join us online with The Ex- Management report can be obtained for
North, South Brunswick, N.J. $6.50 a copy. Order by: Mail*: Dow Jones LP
perts—a group of industry, academic and cultural thinkers who weigh in on Attn: Mailing Operations Dept.
08852. The fax number is
the latest issues raised in this and future reports. Read what they have to Phone: 1-800-JOURNAL 84 Second Ave.
609-520-7256, and the email Chicopee, Mass. 01020-4615
say at WSJ.com/Experts. Posts featured throughout the week include: address is reports@wsj.com.
Fax: 1-413-598-2259
“How Baby Boomers Will Change Philanthropy,” by Jonathan Guyton, Mail*: Wealth Management Report REPRINT OR LICENSE ARTICLES: To
principal at Cornerstone Wealth Advisors Inc., a fee-only advisory firm in Minneapolis. Dow Jones & Co. order reprints of individual articles or
Attn: Back Copy Department for information on licensing articles
“What You Get When You Combine March Madness With Financial Planning,” by Ted 84 Second Ave. from this section:
Beck, president and CEO of the National Endowment for Financial Education and a member of THE JOURNAL REPORT Chicopee, Mass. 01020-4615
Online: www.djreprints.com
the President’s Advisory Council on Financial Capability for Young Americans. JOURNAL REPORT ONLY: Bulk orders of Phone: 1-800-843-0008
“Why Your Bond Portfolio May Be Riskier Than you Think,” by Manisha Thakor, director For advertising information this Journal Report section only may Email: customreprints@dowjones.com
of wealth strategies for women at Buckingham and The BAM Alliance. please contact Katy take up to six weeks for delivery and
can be obtained for $5 for one copy, *For mail orders, do not send cash.
And on page R8 of this report, you can read excerpts of some earlier online discussions. Lawrence at 212-416-4119 $2 for each additional copy up to 50, Checks or money orders are to be made
The Experts offer views on Americans’ savings rate, Treasurys, tax-ID theft and volatility. or katy.lawrence@wsj.com and 25 cents for each copy thereafter. payable to Dow Jones & Co.
THE GAME PLAN Irrevocable Trusts for Art

Owners can keep the art and cut their taxes
AN ENTREPRENEUR GOES ALL IN BY DANIEL GRANT
isn’t being paid enough. “You have to look at
the optics,” says Tim Bresnahan, vice president
BY VERONICA DAGHER
in the wealth-planning advisory services group
A COMMON ESTATE-PLANNING tool, the ir- at Chicago-based Northern Trust. “If a collec-
Phil Karlin is pouring nearly revocable trust, is increasingly being used for tor puts artwork in a trust and then leases it
everything he has into his an uncommon purpose: It allows art owners to back for a dollar, that would be a clear viola-
business. reap tax savings by transferring ownership of tion of trustee duties and responsibilities.”
The 54-year-old, lifelong their paintings or other collectible objects, but The problem for taxpayers, Ms. Wierbicki
fisherman and founder of keep possession so they can still enjoy them. says, is that the IRS has “not provided a safe-
North Fork Smoked Fish First, the tax savings. Property placed in an harbor methodology”—it hasn’t set the rules—
Co. has taken on debt and irrevocable trust, in this case the art, no lon- for determining fair market value of art rentals.
spent almost all of his sav- ger is legally part of an estate, which reduces So what should an art owner do? Mr. Kos-
ings on the business that he the value of the estate for tax purposes. nitzky recommends hiring an art leasing firm
started some six years ago in But the tax benefits potentially go far be- to set a rental price. Joshua Ginsberg, owner
Greenport, N.Y. yond removing the art’s current value from the and chief executive of Chicago Art Leasing,
Mr. Karlin, who is married estate. The art, which legally is gifted to the which rents artwork by emerging contempo-
with three children, joined the trust, will be appraised for tax purposes at the rary artists to Chicago-area businesses, says his
Coast Guard after high time of the gift. The amount of the appraised company’s monthly leases tend to range from
school. He then spent several value above the $14,000 annual exemption 5% to 7% of the retail price of a work of art. At
years as a commercial lobster from gift taxes will be deducted from the New York City-based Artemus, which leases
fisherman. When that indus- owner’s lifetime combined federal gift-tax and artworks to corporations and individuals, the
try collapsed, he worked as a estate-tax exemption (currently $5.45 million). monthly rental fee is between 6% and 12% of
tugboat captain and then as a Or if that exemption has already been used up, the appraised value, according to the com-
supply-boat captain. He later the owner will pay tax on the gift. But in either pany’s chief operating officer, Cedric Autet. The
TAYLOR HART
worked in his father’s fishing case, if the owner holds on to the art instead, lower-percentage rental fees are generally for
business, then decided to there is a chance it will be appraised at a much more highly valued works—done by established
start his own company. higher amount when he or she dies, resulting artists and in good condition—to make the ab-
“These are products worth Funding their retirement needs to be the highest priority in a much bigger tax liability for the estate. solute amount of those fees more affordable.
taking a risk for,” Mr. Karlin for the Karlins, says one financial planner. “Basically, you are sheltering the apprecia-
says of the varieties of tion,” says Michael Kosnitzky, a partner in The heirs’ side
smoked fish and fish patés he a record year this year, savings account, to start a re- charge of the tax and middle market practice What do the beneficiaries of a trust get out
sells, including salmon, scal- thanks to a relatively new tirement account for Mr. Karlin, group at the law firm of Boies, Schiller & Flex- of all this? Property, such as art, that has been
lops and bluefish. product—frozen fish burgers, and to pay down his outstand- ner. The cost of setting up a trust varies, gen- placed in trust for one’s children or anyone
Some 17 years ago he was which he says are selling ing personal loan of $50,000. erally not exceeding $15,000, depending on the else doesn’t belong to the beneficiary or bene-
well on his way to saving for well. To further scale that Funding their retirement trust’s complexity and the jurisdiction of the ficiaries but rather is owned by the trust. The
retirement, with about product line, he needs to buy needs to be the highest prior- trust, but the potential tax savings outweigh children, say, may enjoy the art but can’t sell
$150,000 in stock- and a large freezer, which costs ity, Ms. Dietzler says, then the setup costs, Mr. Kosnitzky says. it—only the trust can do that.
bond-mutual funds. Then he about $10,000. helping his daughter pay for Eventually, of course, the heirs may come to
and his wife at the time di- Meanwhile, he wants to college. Renting Renoir own the artwork, either upon the benefactor’s
vorced, which cost him nearly help his college-age daughter Ms. Dietzler advises The trust will take responsibility for storage death or at a later time designated by the
$50,000 in legal fees. pay her tuition. So, any vaca- against any big business ex- and care of the art, with money provided by benefactor in the terms of the trust. The art
He remarried about 10 tions will have to wait. “I be- penses. She recommends the benefactor to cover the cost. But what if may remain in trust as long as permissible un-
years ago, and he and his lieve in paying my bills on leasing a freezer rather than you don’t want to give up your art? You don’t der state law (usually, the life of the benefac-
wife, Jackie, bought a house time,” he says. buying a new one for have to. tor plus 21 years, though in some cases it may
for about $600,000. The Mr. Karlin is counting on $10,000. “With art prices increasing, there is interest be longer). Another possibility is that the
couple still owes about the business to one day fund Mr. Karlin also should get a in the idea of putting your art in a trust to terms of the trust dictate that the art be sold
$400,000 in mortgage pay- his retirement and hopes term life-insurance policy as a shelter the appreciation, and then renting it and the proceeds be given to the beneficiaries.
ments, which Jackie makes that his wife’s 401(k) will basic safeguard for a family back, so that you can hang it on your walls,” “Assuming that heirs eventually do gain
from her salary as a title ex- help the couple. with loans, college and busi- says Diana Wierbicki, partner and global head ownership of the art, if they were to sell ob-
aminer. Jackie also has a ness expenses. As a self-em- of art law at the law firm Withers Bergman. jects from that trust, they would pay capital-
401(k) with a current value ADVICE FROM THE PRO: ployed business owner, he also “People say, you can do it with a house, why gains taxes at the appreciated value, not at the
of about $80,000. “Mr. Karlin is doing a great job needs long-term disability in- not with art?” (People more commonly place lower value when the trust was first created,”
Over the past six years, staying on top of credit-card surance, the planner says. their home in an irrevocable trust and then Mr. Kosnitzky says. If the trust sells the art, it
Mr. Karlin has put nearly all and other bill payments,” says continue to live in the home and pay market- would pay the same taxes. The taxable amount
of his remaining retirement Lori Dietzler, a fee-only finan- Ms. Dagher is a reporter for value rent to the trust.) would be the difference between the value at
savings, about $100,000, and cial planner in New York City. The Wall Street Journal in One complication is that determining a fair- the time of the sale and the “tax basis,” which
about $50,000 in personal If the business has net in- New York and host of the market rent is much more difficult for art than generally is the amount paid for the art by the
loans into his business. come this year, it should be “Watching Your Wealth” it is for real estate, because the market is so donor, Mr. Kosnitzky says.
The business broke even used for three things, she podcast. Email: much more limited. The rent matters a lot to
in 2015, but he’s hoping for says: to fund an emergency veronica.dagher@wsj.com. the Internal Revenue Service, which might dis- Mr. Grant is a writer in Amherst, Mass. He
allow a trust if auditors conclude that the trust can be reached at reports@wsj.com.
R10 | Monday, March 28, 2016 NY THE WALL STREET JOURNAL.
ARE YOU WORKING

WITH THE RIGHT
WEALTH MANAGER?
Five Star Professional’s

objective research identifies
wealth managers who
excel in their field by
demonstrating outstanding:
• Industry credentials
• Commitment to clients
• Quality of practice
Check out Five Star Wealth Managers in your area
in future Wealth Management Journal Reports
and in Forbes’ annual Investment Guide in June, or
go to www.fivestarprofessional.com.
Defining and promoting professional excellence.

Increase Your Savings! Win the Jackpot! ADVISERS’ VOICES

ROBERT P. ANDRES
People are more likely to open new accounts if they get a chance to win a prize
BY LISA WARD
will forgo a little bit of interest for DON’T ABANDON
the chance of winning a large prize,”
says Dr. Cole.
BONDS
AMERICANS DON’Tsave enough, and The Doorways to Dreams Fund, Investors who are shying away
many don’t save at all. But what if known as D2D, was co-founded by from bonds because they fear ris-
saving felt like playing a lottery— Peter Tufano, dean of Saïd Business ing rates and inflationary pressure
would that get people to save more? School at the University of Oxford should think twice before writing
A recent study of a savings pro- and co-author of the report on the off bonds completely.
gram in South Africa suggests it South African program, along with Those calling for higher rates
would, and the idea is taking root in Dr. Cole and Benjamin Iverson of the have been wrong for more than
the U.S. Kellogg School of Management at six years. In my view, the economy
A bill passed by Congress and Northwestern University. D2D, which is likely to exhibit uneven growth
signed by President Obama in De- worked with U.S. lawmakers on the and inflation won’t unhinge the
cember 2014 cleared the way for federal legislation, set up a prize- bond market. I think it’s a matter
banks and other financial institutions linked savings program, known as of time before equity prices make
to encourage people to save by offer- Save to Win, with credit unions in a major adjustment to the down-
ing them the chance to win cash Michigan in 2009. Today the Save to side, and high-grade bonds benefit
prizes. States now need to pass simi- Win program operates in seven from a flight to quality.
LLOYD MILLER
lar legislation, and 15 have done so states, though in New York it goes by There are many opportunities
already, with legislation pending in another name, Lucky Savers. Credit in the bond market for those who
12 more states, according to data unions in three new states—Illinois, know where to look. Take the re-
from the National Conference of Indiana and Oregon—are starting the cent downturn in the high-yield
State Legislatures. Take a Gamble program later this year. sector. Many companies were
Meanwhile, the Boston-based non- The Save to Win program gives buyers of certificates of deposit a chance to win subject to guilt by association
profit Doorways to Dreams Fund— monthly and quarterly cash prizes in state and multi-state drawings. Save those refunds with the weaker names, and have
which took advantage of a legislative In the Save to Win program, peo- now recovered significantly.
loophole to set up a prize-linked sav- Prize Total Individual Total ple can buy certificates of deposit I expect global private capital
ing program for credit-union mem- drawings winners prize amts. prizes Drawing dates that pay interest on par with stan- sources to continue to support
bers in 2009—says the program has dard CDs but also give the buyer a U.S. Treasurys, offering safety and
Monthly 420 $25 $10,500 14th of the month (Feb.-April)
attracted more than 55,000 savers chance to win monthly and quarterly liquidity. U.S. Treasurys offer
who together have socked away 1,332 $25 $33,300 14th of the month (May-Jan.) cash prizes, up to $5,000 with every higher yields than many of their
about $115 million since its inception. $25 deposited. Asian and European counterparts
Currently, there are about 20,000 ac- Quarterly 4 $5,000 $20,000 14th of April, July, Oct.; Jan. 2017 D2D is exploring new ways to en- within the largest capital-markets
tive accounts, holding about $46.4 20 $1,000 $20,000 14th of April, July, Oct.; Jan. 2017 courage people to save, says Timothy structure in the world. In addition,
million in savings. Flacke, the organization’s executive the Treasury Department has said
14 $500 $7,000 14th of April director. For instance, it is going into it plans to cut back issuance of
Making it fun 72 $500 $36,000 14th of April and Oct.; Jan. 2017
its fourth year of SaveYourRefund, a notes and bonds by 25% in 2016.
In prize-linked saving programs, pilot project that makes people eligi- Municipal bonds aren’t as cheap
participants who invest a nominal Note: Data are for multi-state drawings in Connecticut, Indiana, Michigan, North Carolina, Nebraska, Oregon and ble for a prize if they invest their tax as they were six months ago, but
amount of money in a savings ac- Virginia for 2016 and January 2017, where applicable. refund in inflation-protected savings there is still value there, too. I ex-
count, bond or certificate of deposit— Source: SavetoWin.org THE WALL STREET JOURNAL. bonds or other savings vehicles. So pect new issuance to decline by as
$25 in the Doorways to Dreams pro- far, the program has attracted about much as 20% in 2016, helping to
gram, for instance—are eligible to win a program that ran until 2008. The were well short of the 4.5 billion 7,000 participants and about $6.6 mitigate any downside risk. Inves-
a cash prize. bank, a division of FirstRand Ltd., rand in standard accounts.) The pro- million in savings. tors may want to consider single-
The prize can be in addition to in- paid a nominal interest rate of 0.25% gram ended in 2008 when the Su- Another saving-incentive program A-rated essential-service bonds
terest on the money invested, or it on these so-called MaMa accounts preme Court of Appeals ruled in fa- is run by SaveUp Inc. on its website. with premium coupons in the 10-
can constitute the entire return. In and initially awarded 113 monthly vor of the National Lottery Board, Users link their financial accounts— to 14-year maturity range.
either case, the principal isn’t at risk prizes, including a grand prize of one saying the program violated the gov- mortgages, credit cards and retire- My concern about investment-
and ideally is saved for the future. million rand, or about $150,000 at ernment’s monopoly on lotteries. ment accounts—to the website and grade corporate bonds has mod-
“If you are financially constrained, the time, according to the authors. Researchers also found that bank every time they save money or pay erated amid higher oil prices, low
thinking about finances and savings Within the first 18 months of the employees who participated in the off debt, they get a chance to win rates and a dovish Fed. Still, in-
is a source of stress, but the [prize- program, there were more MaMa ac- program increased their net savings daily cash prizes from $5 to $50,000 vestors should be on the lookout
linked] accounts are fun and excit- counts than regular savings accounts by about 1% of their annual income. and a monthly $2 million jackpot. for signs of uneven growth and/or
ing,” says Shawn Cole, a professor at at the bank, and within three years, The data suggest that the ac- The company says Saveup.com has declining corporate revenues.
Harvard Business School, who co- MaMa deposits totaled 1.4 billion counts were most popular among more than 151,000 members, who
wrote the study of the saving pro- rand, according to the study, or about people with lower income or high have paid off more than $1 billion in Mr. Andres is managing partner
gram in South Africa. $200 million. (The MaMa accounts levels of debt, much like a typical lot- debt and saved more than $1 billion. of Andres Capital Management
The study looked at the results of were smaller on average than stan- tery, says Dr. Cole. But they appealed in Berwyn, Pa. He can be
First National Bank’s introduction of dard savings accounts at the bank, so to people of all ages, races and in- Ms. Ward is a writer in Mendham, reached at reports@wsj.com.
the Million-a-Month Account in 2005, their total deposits at that point come levels, he says. “A lot of people N.J. Email her at reports@wsj.com.
Give College Students Salary

Data...And Look What Happens
lish that the students in the erage of $28,540 (8.5%).
BY SIMON CONSTABLE
study did indeed lack accurate In addition, 61 students out
information about potential of the 495 students studied, or
“IF ONLY I KNEW then what I future earnings. just over 12%, decided to
know now,” is a common la- They started by asking the change their intended major
ment among some workers students two questions: What after seeing the data.
about their (perhaps subopti- are the real marketplace earn- “Students respond to infor-
MAKE YOUR
mal) choices at college. ings in the outside world? And mation by revising their be-
It relies on the rather dodgy what do they expect to earn at liefs, as well as expected fu-
idea that you could somehow 30 years old? The students ture choices,” the authors
have the insights of a 35-year- were then given real-world concluded, adding that the
MONEY
old when you’re only 19. data and asked to answer the cost of distributing such data
But what if you could? That second question again. is low and can play a “critical
role” in helping students de-
cide what and where to study.
WORK HARDER.
Dr. Wiswall says providing
information about pay differen-
tials by major could make more
of an impact on students than
GIVE IT A RAISE.
highlighting the differences in
graduation rates and average
starting salaries among stu-
dents at various schools. “The
gaps in earnings between ma-
jors are even larger.” ACCURATE AS OF 03/21/2016
1.30 %
Education’s purpose
Still, the idea that money ANNUAL
should weigh so heavily into PERCENTAGE
PETER & MARIA HOEY
YIELD
decisions about education has
some educators uneasy.
“More information is al- The Ally Bank Raise Your Rate 2-Year CD.
ways better than less,” says It’s like your money just got a promotion.
Bob Bruner, a finance profes- Have the option of a one-time rate increase
if our rate on your balance tier goes up.
sor at the University of Vir-
Just remember that an early withdrawal
is, what if while you were The students’ knowledge of ginia’s Darden School of Busi-
penalty applies.
young, you were exposed to real-world wage data was lim- ness. “But I am not a fan of
Bank where No Branches = Great Rates.
real data that called into ques- ited. For example, they under- the ‘vocationalization’ of un-
tion some of your beliefs? A estimated how much an aver- dergraduate education.”
allybank.com | 1-877-247-ALLY
couple of researchers tried it age male with no college He sees the phenomenon as
with a group of New York “almost a gravitational pull”
University students who had for undergraduates to focus on
misinformed views about
Students respond to jobs and not education.
wages in various fields. information by Dr. Wiswall sees it differ-
By providing real, public ently. “Certainly having stu-
data about pay, “our interven-
revising beliefs and dents graduate well-rounded
tion nudged students toward expected future with a variety of experiences
higher-earning majors,” the would be the ideal,” he says.
researchers said in the study,
choices. Still “it is probably in every-
“How Do College Students Re- one’s best interest that stu-
spond to Public Information degree would earn by almost dents make these choices with
About Earnings,” published in $10,000 a year and overesti- as much information as possi-
the Journal of Human Capital mated what an average male ble,” he adds, pointing to ris-
last year. The finding could with an economics degree ing college tuition costs.
have important implications as would earn by almost $35,000 He also says that the lack of
debate grows about whether a year, the researchers said. students opting to pursue sci-
some college degrees are After the students had seen ence, technology, medicine and
worth the cost. the real-world salary informa- engineering degrees, despite
tion they were asked again to the prospect of higher pay and
Rethinking their choices estimate what they would earn steady work, provides some
The study’s authors—Mat- in the future. The subjects evidence that students aren’t
thew Wiswall, professor of changed their views. The busi- “overly” driven by dollars.
economics at Arizona State ness/economics students, for
©2009-2016 Ally Financial Inc.
University, and Basit Zafar at example, revised the estimate Mr. Constable is a writer in
the Federal Reserve Bank of of their own expected future New York. Email him at
New York—first had to estab- earnings downward by an av- reports@wsj.com
Student-Loan Relief as a Corporate Perk

As more companies help employees pay off their loans, it’s useful for workers to do the math
loans said they would rather receive talent leader for PwC.
BY JILLIAN BERMAN
an offer of loan help than a health In Debt Similarly, CommonBond, a lender
plan. Nearly half of those surveyed The percentage of college graduates carrying student-loan debt and the loan that specializes in student-loan refi-
MORE YOUNG workers are getting also said they would rather have stu- amounts continue to increase. nancing, is offering its employees
help paying off their student loans dent-loan help than a 401(k). $1,200 a year toward student loans
from an unlikely source: their em- Companies that offer student-loan Students graduating with loans Average student-loan amount until the worker pays off her debt.
ployers. help typically do so on top of a When the benefit was announced,
100% $35 thousand
By making student-loan payments 401(k) and health insurance. But if one of the first questions was, “How
part of a benefits package, a handful workers find themselves in a situa- Projected 30 is this going to be taxed?’ ” says
of companies are betting the perk will tion where that’s not the case, they 80 CommonBond CEO and co-founder
be a good recruiting and retention may be better off with the more tra- 25 David Klein.
tool, considering the bulk of bachelor’s ditional, tax-free perks. Stashing 60 20 Mr. DeMello says some of the
degree recipients graduate with stu- money in a 401(k) offers “decades of companies he works with are giving
dent debt these days. Employers offer- potential future growth,” Mr. Kan- 40 15 employees slightly more than the
ing the benefit so far include account- trowitz says, unlike paying off a 10 agreed repayment amount to cover
ing and professional-services firm loan. Of course, he says, if workers 20 the tax bill, although neither PwC
PricewaterhouseCoopers, investment don’t have extra money to save for 5 nor CommonBond steps up its pay-
bankers Natixis and ChowNow, an on- retirement because they’re still mak- 0 0 ments to cover taxes, according to
line food-ordering platform. PwC cur- ing loan payments, that’s another company spokespeople.
rently offers the benefit in a pilot pro- factor to consider. ’03-04 ’07-08 ’11-12 ’14-15 ’03-04 ’07-08 ’11-12 ’14-15 Student Loan Genius, another
gram but plans to offer it to all Generally, the faster an employer Note: Debt includes federal and private education loans. company that helps employers man-
employees starting July 1. offers to pay off the debt, the better Source: Analysis by Mark Kantrowitz, publisher of Cappex.com and formerly senior vice president and publisher of age their student loan benefits, un-
But job applicants beware: Unlike the benefit, Mr. Kantrowitz says, be- Edvisors.com. THE WALL STREET JOURNAL. veiled a new option earlier this
matching gifts that employers put cause it keeps interest from accruing month that may help to alleviate
into a retirement account such as a on the loan, which ultimately makes gin demanding the benefit, says As of late March, one of those workers’ tax concerns. With this fea-
401(k), money to help repay student it cost more. Bruce Elliott, the society’s manager startups, Boston-based Gradifi Inc., ture, companies can make a contri-
loans is taxable income. There are For now, not many employees or of compensation and benefits. With had 101 companies waiting to launch bution to an employee’s retirement
efforts in Congress to make the perk job applicants have to think about the job market recovering, millenni- their own student-loan repayment account pretax that’s triggered by a
tax-free. But for now, potential recip- such things. Only 3% of companies in als will have more clout when evalu- programs through the Gradifi plat- worker’s student loan payment.
ients need to do some calculations to 2015 offered to help their employees ating job offers, he adds. form, says Chief Executive Tim De-
determine how much of a benefit pay off their student loans, accord- Mello. Gradifi, which worked with Bill in Congress
they would receive after taxes. ing to a survey from the Society for Startups arriving PwC on its student-loan perk, sends Meanwhile, companies and em-
There are other considerations as Human Resource Management. Mr. Elliott also notes the burgeon- money deposited by an employer di- ployees are looking to Washington
well. As Mark Kantrowitz, publisher But the society sees signs that ing industry of startups offering to rectly to an employee’s student loan for help on this issue.
of Cappex.com, a college- and schol- this benefit could become more com- help employers manage student-loan servicer. Starting July 1, PwC will Sen. Mark Warner (D., Va.) intro-
arship-search site, points out, help mon. For starters, millennials now repayments. “That kind of tells me put $100 a month toward its em- duced a bill in Congress in January
with student loans is not the same account for the largest demographic that this could very well be the be- ployees’ loans, up to a total of that would allow employers to put as
as simply getting paid more. Some in the workforce and are likely to beginning of a trend,” he says. $7,200, says Michael Fenlon, global much as $5,500 a year pretax toward
employers cap the amount of debt their workers’ student loans. Unlike
relief they will provide, which means other legislative proposals for the
the extra money will eventually run student-debt crisis—including allow-
out. Even when a company is willing
to pay off the entire debt, Mr. Kan-
RUNNING THE NUMBERS FOR A TYPICAL EMPLOYEE ing borrowers to refinance their
loans at lower interest rates through
trowitz says, higher pay might still Even with the tax hit, some em- is for 10 years. So, a borrower with If, instead, the company offers to the federal government and making
be a better deal. ployees could come out ahead and that plan, a 5% interest rate and put $5,000 toward that same bor- two years of community college
“It’s not like having a higher sal- end up having a decent chunk of $35,000 in loans—roughly the aver- rower’s loan after five years of work free—the bill has support from some
ary because as soon as you run out their student loans paid off by their age student-loan debt at graduation and then $1,000 a year after that— Republicans. Sens. John Thune (R.,
of debt, you no longer get this bene- employers. The tax implications will in 2015, according to financial-aid say, as an incentive for the worker S.D.), Shelley Moore Capito (R.,
fit,” he says. vary depending on salary, debt information site Edvisors—could get to stay on—then the borrower will W.Va.) and Kelly Ayotte (R., N.H.) co-
Still, Mr. Kantrowitz says he can amount and interest rate and how rid of her debt in 7½ years if her be able to pay off her debts in eight sponsored the measure.
see young job seekers being swayed the benefit plan is designed. employer gives her $100 a month years instead of 10. The total taxes “It’s not going to solve every
by such an offer because it shows a Mark Kantrowitz, publisher of until the loan is paid off, according on the debt forgiveness will be problem,” Sen. Warner says of the
company is focused on their needs. Cappex.com, a college- and scholar- to Mr. Kantrowitz’s calculations. $2,000 and she’ll have a net of bill. “But it’s part of a solution that
ship-search site, ran the numbers on If the employee earns between $6,000 going toward her loans. is bipartisan, that’s workable, that
Well received some hypothetical plans to get a $40,000 and $70,000 annually, If a company pays off that same we can actually do something on this
Indeed, in a September survey sense of how much an employee she’ll end up paying $2,250 in taxes employee’s debt in lump sum, she’ll year, even in an election year.”
from Iontuition, a website that helps could benefit after taxes. on the benefit and will net $6,750 pay $8,750 in taxes, but will net
manage student-loan payments, more The standard repayment plan for toward repaying her loans, according $26,250 toward her loans. Ms. Berman is a reporter for
than half of current students and re- borrowers with federal student loans to Mr. Kantrowitz. —Jillian Berman MarketWatch. She can be reached
cent college graduates with student at jberman@marketwatch.com.
IF YOU’RE INVESTED,
WE ARE TOO.
Whatever you’re building, it’s good to have someone who’s got your back. So when you
invest in a managed portfolio from Amerivest with a qualifying deposit, if in the next year
that model portfolio experiences two consecutive quarters of negative performance,
the advisory fees for both quarters will automatically be refunded. Because this isn’t just
about building a great portfolio. It’s about building your trust.
The best returns aren’t just measured in dollars.
Call an Investment Consultant at 800-440-8124 or go to tdameritrade.com/rebate for details.
Amerivest is a registered investment advisor and an affiliate of TD Ameritrade. For more information, please see the Amerivest
Disclosure Brochure (ADV Part 2) http://tdameritrade.com/forms/TDA4855.pdf. Advisory services provided by Amerivest
Investment Management, LLC. Offer requires deposit of net new assets of at least $25,000 during the offer period, Oct. 6, 2015–
Oct. 5, 2016. See tdameritrade.com/rebate for complete offer details. Model portfolio performance measured before advisory
fees. All investments involve risk, and successful results are not guaranteed. This is not an offer or solicitation in any jurisdiction
where we are not authorized to do business. TD Ameritrade, Inc., member FINRA/SIPC. © 2016 TD Ameritrade IP Company, Inc.

Google Tool Aided N.Y. Dam Hacker: Terror Group's Web Sprawls

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Google Tool Aided N.Y. Dam Hacker: Terror Group's Web Sprawls

Uploaded by

Copyright:

Available Formats

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

Easter Sunday Bombing in Pakistan Kills at Least 65 People

along with Wall Street’s so- vulnerable system, according to

Terror Group’s Web Sprawls

are no limits on how quickly

Refugee Welcome Sign Shines in Utah

CAYCE CLIFFORD FOR THE WALL STREET JOURNAL

California Aims for $15 Pay Floor

What Will You Remember?™

Local Rift Hampers North Carolina GOP

DHANRAJ EMANUEL FOR THE WALL STREET JOURNAL

Suburban Weakness Is a Divergent Outcomes

Cruz, Trump Trade Blame for Latest Personal Attacks

Angela Abernathy Matthew L. Flynn Anatoly Lipetsky Paula Regan

©2016 U.S. Bank. Member FDIC. 8008

Sanders Wins Big, Still Faces Uphill Climb

STEVE DYKES/ASSOCIATED PRESS

before they become radicalized.”

aired Sunday on CBS about more votes there.

Seal the deal

Brussels Struggles as City Tries to Return to Normal

lamic State network before it

The Lincoln Motor Company’s AL Rick y Danley AZ David

Easter Attack in Pakistan Kills Dozens

RAHAT DAR/EUROPEAN PRESSPHOTO AGENCY

Turkish Leader Faces Cool Welcome to U.S. Israeli

one-on-one meeting—with Chi- advice,” a senior aide to Mr.

Pope OffersHope, EU Ties Helped Ireland Rise

CHARLES MCQUILLAN/GETTY IMAGES

KNOW MORE IN A SNAP

DISCOVER OUR CHANNEL ON SNAPCHAT Wine and Dine

630 Royal Street, New Orleans, Louisiana • 877-677-2801 • ws@rauantiques.com • rauantiques.com

China Website Staff Go Missing After Post

OIL 25 billion barrels of oil equivalent a day

FROM PAGE ONE

WILD Clay Landry, a 68-year-old

Dollarizing the Ayatollahs

Why Upgrading Air-Traffic Control Is Stuck in a Holding Pattern

Ending the Prescribe-Don’t-Tell Charade for Off-Label Drugs

Notable & Quotable: On le Carré

Cognitive ﬁnance is here.

The Tall Tinkerer Two Tales

Top Hat and (Rabbit) Tails

ROME, N.Y.—A 5-pound

State Budget Set

RICHARD BEAVEN FOR THE WALL STREET JOURNAL (3)

Rules on Ethics years to position the area as a

Artist Skeptical Over Murals’ Fate

At This Film Class, 59°

of them were captured by an- classes at the high school,

PETER J. SMITH FOR THE WALL STREET JOURNAL (3)

Can You Top This? Bonnets Bloom at Easter Parade

ETHICS While no lawmaker has been

Feelings Mixed A Year After Explosion, Only Memories Remain

PETER J. SMITH FOR THE WALL STREET JOURNAL

In a statement Sunday, Mr.

DORTHEA ROCKBURNE (2)

Artist Wants Pledge From Developer

Activists Wary of Drones’ Use Abroad and at Home

zon package drone at the corner

ARTS & ENTERTAINMENT

Two Films That Are Kind of Blue

HEARD & SCENE