Changing of the Guard: Chinese Communist Party Faces Calls for Democracy





BEIJING — As the Communist Party’s 18th Congress approached, Li Weidong, a scholar of politics, made plans to observe a historic leadership battle in one of the world’s great nations.




Instead of staying in Beijing to monitor China’s once-a-decade transfer of power, Mr. Li boarded a plane.


“I’m going to the United States to study the elections,” Mr. Li said in a telephone interview during a stopover in Paris. After witnessing the American presidential election on Tuesday, Mr. Li went on the radio for another interview. “I still think China’s politics remain prehistoric,” he said. “I often joke that the Chinese civilization is the last prehistoric civilization left in the world.”


With China at a critical juncture, there is a rising chorus within the elite expressing doubt that the 91-year-old Communist Party’s authoritarian system can deal with the stresses bearing down on the nation and its 1.3 billion people. Policies introduced after 1978 by Deng Xiaoping lifted hundreds of millions out of poverty and transformed the country into the world’s second-largest economy. But the way party leaders have managed decades of growth has created towering problems that critics say can no longer be avoided.


Many of those critics have benefited from China’s stunning economic gains, and their ranks include billionaires, intellectuals and children of the party’s revolutionary founders. But they say the party’s agenda, as it stands today, is not visionary enough to set China on the path to stability. What is needed, they say, is a comprehensive strategy to gradually extricate the Communist Party, which has more than 80 million members, from its heavy-handed control of the economy, the courts, the news media, the military, educational institutions, civic life and just the plain day-to-day affairs of citizens.


Only then, the critics argue, can the government start to address the array of issues facing China, including rampant corruption, environmental degradation, and an aging population whose demographics have been skewed because of the one-child policy.


“In order to build a real market economy, we have to have real political reform,” said Yang Jisheng, a veteran journalist and a leading historian of the Mao era. “In the next years, we should have a constitutional democracy plus a market economy.”


For now, however, party leaders have given no indication that they intend to curb their role in government in a meaningful way.


“We will never copy a Western political system,” Hu Jintao, the departing party chief, said in a speech on Thursday opening the weeklong congress.


The party’s public agenda, which Mr. Hu described in detail in his 100-minute address, was laid out in a 64-page report that is in part intended to highlight priorities for the new leaders, who will be announced later this month. Much of the document had retrograde language that emphasized ideology stretching back to Mao and had little in the way of bold or creative thinking, said Qian Gang, the director of the China Media Project at the University of Hong Kong.


Most telling, there was no language signaling that the incoming Politburo Standing Committee, the group that rules China by consensus, would support major changes in the political system, whose perversions many now say are driving the nation toward crisis.


While Chinese who are critical of the current system generally do not expect a wholesale adoption of a Western model, they do favor at least an openness to bolder experimentation.


“To break one-party rule right now is probably not realistic, but we can have factions within the party made public and legalized, so they can campaign against each other,” said Mr. Yang, who added that there was no other way at the moment to ensure political accountability.


Only in the last few years has the idea of liberalizing the political system gained currency, and urgency, among a broad cross-section of elites. Before that, as the West foundered at the onset of the global financial crisis, many here pointed to the triumph of a “China model” or “Beijing consensus” — a mix of authoritarian politics, a command economy and quasi-market policies.


But the way in which China weathered the crisis — with the injection of $588 billion of stimulus money into the economy and an explosion of lending from state banks — led to a spate of large infrastructure projects that may never justify their cost. As a result, many economists now say that China’s investment-driven, export-oriented economic model is unsustainable and needs to shift toward greater reliance on Chinese consumers.


Constant lip-service is paid to that goal, and on Saturday, Zhang Ping, a senior official, reiterated that stance. But it will not be easy for the new leaders to carry it out. At the root of the current economic model is the political system, in which party officials and state-owned enterprises work closely together, reaping enormous profits from the party’s control of the economy. Under Mr. Hu’s decade-long tenure, these relationships and the dominance of state enterprises have only strengthened.


“What happens in this kind of economy is that wealth concentrates where power is,” said Mr. Yang, the journalist.


The 400 or so incoming members of the party’s Central Committee, Politburo and Politburo Standing Committee, as well as their friends and families, have close ties to the most powerful of China’s 145,000 state-owned enterprises. The growing presence of princelings — the children of notable Communist officials — in the party, the government and corporations could mean an even more closely meshed web of nepotism. It is a system that Xi Jinping, anointed to be the next party chief and president and himself a member of the “red nobility,” would find hard to unravel, even if he wanted to.


Mia Li contributed research.



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Manziel, No. 15 Texas A&M stun No. 1 Bama, 29-24

TUSCALOOSA, Ala. (AP) — Johnny Football and Southern Conference newbies Texas A&M took down the biggest bully in their new neighborhood and left No. 1 Alabama with badly bruised national championship hopes.

Johnny Manziel, better known around Texas as Johnny Football, staked the 15th-ranked Aggies to a three-touchdown lead in the first quarter, and Texas A&M held on to beat the Crimson Tide 29-24 on Saturday.

The Aggies (8-2, 5-2), playing in the SEC for the first season after ditching the Big 12, also might have ended the league's run of BCS titles at six years.

The defending national champion Crimson Tide (9-1, 6-1), who have been No. 1 almost all season, didn't go quietly.

AJ McCarron nearly pulled off a second straight scintillating comeback. He threw one touchdown pass and motored the ball downfield before Deshazor Everett stepped in front of his fourth-down pass at the goal line with 1:36 left.

Manziel passed for 253 yards and rushed for 92 and led the Aggies to a 20-0 first quarter lead.

"No moment is too big for him," coach Kevin Sumlin said of his remarkable redshirt freshman.

The Aggies had been 1-10 against top-ranked teams with the only previous win coming 30-26 over Oklahoma in 2002, but Manziel and Sumlin have entered the SEC with speed and swagger — and fit right in.

Alabama managed a second-shot national title after losing to LSU just over a year ago in the regular season but seems a longshot to do it again. Alabama would have secured a spot in the SEC championship game with a victory and only Western Carolina and Auburn remaining.

"Two of the three national championship teams that I coached lost a game," Tide coach Nick Saban said, counting one at LSU. "This team still has an opportunity to win the West and go to the SEC championship game and win a championship. There's still a lot for this team to play for."

Now, the Tide will have to beat the Tigers to clinch the West and get into the SEC title game. As for the national title, Alabama will have to hope for another shakeup in the form of losses by Kansas State, Oregon and Notre Dame. If the Tide wins out, and two of those teams go down, a third national championship in four seasons is still in play — along with a seventh straight for the SEC.

For now though, the SEC is on the outside looking in at the BCS title race.

Alabama kept coming back, but never caught up with Manziel and Texas A&M.

The nation's top scoring defense, forced a punt with less than a minute left, but A&M never had to kick it away. The Tide was penalized for offisides, giving Texas A&M a first down and a chance to kneel out the clock.

McCarron breathed life into Alabama with a 54-yard touchdown pass down the left sideline to freshman Amari Cooper to make it 29-24 with 4:29 left.

A quick three-and-out by the Aggies put the ball in McCarron's hands again. He opened at the 40 with a 54-yarder to speedster Kenny Bell down to the 6. Two scrambles and an Eddy Lacy run left one final shot from the 2 against a Texas A&M defense often overshadowed by its potent offense.

He had some time on third down, rolling left but finding Lacy well covered and having to try running it, a la Manziel, before Dustin Harris stopped him at the 2.

McCarron had rescued the Tide's national title hopes with a 28-yard screen pass in the final minute for a 21-17 win over No. 9 LSU. The Aggies, nearly two-touchdown underdogs, didn't let him do it again. Everett made the play on a pass toward the front corner of the end zone.

McCarron completed 21 of 34 passes for 309 yard but also was intercepted twice, ending his streak without getting picked off at 291 passes.

Eddie Lacy had 16 carries for 92 yards for Auburn and added 35 yards on four catches. Cooper had six catches for 136 yards a week after missing much the second half of the LSU game with an ankle injury, and failing to make a reception.

The Aggies had already lost to top-10 teams LSU and Florida by a combined eight points, proving they're already challengers in the powerhouse SEC.

Manziel completed 24 of 31 passes with two touchdowns and ran 18 times, including four sacks.

He kept finding Ryan Swope. They hooked up 11 times for 111 yards and a 10-yard touchdown where Manziel bobbled the ball as defenders swarmed him, reversed field and spotted Swope alone in the back of the end zone.

Manziel led three first-quarter touchdown drives for a 20-0 lead to stun the Bryant-Denny Stadium crowd of 101,821. Christine Michael had a pair of 1-yard touchdown runs in the quarter along with Swope's catch.

The rest of the game was an emotional roller-coaster ride for fans who might have thought LSU was the toughest test on the road to another championship.

Then Alabama flexed its own muscle to counter Manziel's speed, sticking with power runs to set up 2-yard touchdown runs by T.J. Yeldon and Lacy.

McCarron also converted a fourth-and-4 with a pass to Lacy to set up the first score. Alabama marched back down the field after C.J. Mosley pushed Manziel out of bounds a yard shy on fourth-and-6.

The Tide ran out all but 19 seconds with a methodical drive right back into the game.

It was still the first time Alabama had trailed at halftime since a loss at South Carolina in 2010.

Jeremy Shelley kicked a 28-yard field goal with 4:49 in the third quarter to cut it to 20-17 and Taylor Bertolet answered with a short one to start the fourth.

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Citing Affair, Petraeus Resigns as C.I.A. Director





WASHINGTON — David H. Petraeus, the director of the Central Intelligence Agency and one of America’s most decorated four-star generals, resigned on Friday after an F.B.I. investigation uncovered evidence that he had been involved in an extramarital affair.




Mr. Petraeus issued a statement acknowledging the affair after President Obama accepted his resignation and it was announced by the C.I.A. The disclosure ended a triumphant re-election week for the president with an unfolding scandal.


Government officials said that the F.B.I. began an investigation into a “potential criminal matter” several months ago that was not focused on Mr. Petraeus. In the course of their inquiry into whether a computer used by Mr. Petraeus had been compromised, agents discovered evidence of the relationship as well as other security concerns. About two weeks ago, F.B.I. agents met with Mr. Petraeus to discuss the investigation.


Administration and Congressional officials identified the woman as Paula Broadwell, the co-author of a biography of Mr. Petraeus. Her book, “All In: The Education of General David Petraeus,” was published this year. Ms. Broadwell could not be reached for comment.


Ms. Broadwell, a graduate of the United States Military Academy at West Point, spent 15 years in the military, according to a biography that had appeared on her Web site. She spent extended periods of time with Mr. Petraeus in Afghanistan, interviewing him for her book, which grew out of a two-year research project for her doctoral dissertation and which she promoted on a high-profile tour that included an appearance on “The Daily Show With Jon Stewart.”


Married with two children, she has described Mr. Petraeus as her mentor.


Senior members of Congress were alerted to Mr. Petraeus’s impending resignation by intelligence officials about six hours before the C.I.A. announced it. One Congressional official who was briefed on the matter said that Mr. Petraeus had been encouraged “to get out in front of the issue” and resign, and that he agreed.


As for how the affair came to light, the Congressional official said that “it was portrayed to us that the F.B.I. was investigating something else and came upon him. My impression is that the F.B.I. stumbled across this.”


The Federal Bureau of Investigation did not inform the Senate and House Intelligence Committees about the inquiry until this week, according to Congressional officials, who noted that by law the panels — and especially their chairmen and ranking members — are supposed to be told about significant developments in the intelligence arena. The Senate committee plans to pursue the question of why it was not told, one official said.


The revelation of a secret inquiry into the head of the nation’s premier spy agency raised urgent questions about Mr. Petraeus’s 14-month tenure at the C.I.A. and the decision by Mr. Obama to elevate him to head the agency after leading the country’s war effort in Afghanistan. White House officials said they did not know about the affair until this week, when Mr. Petraeus informed them.


“After being married for over 37 years, I showed extremely poor judgment by engaging in an extramarital affair,” Mr. Petraeus said in his statement, expressing regret for his abrupt departure. “Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours. This afternoon, the president graciously accepted my resignation.”


Mr. Petraeus’s admission and resignation represent a remarkable fall from grace for one of the most prominent figures in America’s modern military and intelligence community, a commander who helped lead the nation’s wartime activities in the decade after the Sept. 11 attacks and was credited with turning around the failing war effort in Iraq.


Mr. Petraeus almost single-handedly forced a profound evolution in the country’s military thinking and doctrine with his philosophy of counterinsurgency, focused more on protecting the civilian population than on killing enemies. More than most of his flag officer peers, he understood how to navigate Washington politics and news media, helping him rise through the ranks and obtain resources he needed, although fellow Army leaders often resented what they saw as a grasping careerism.


 Reporting was contributed by Peter Baker, Helene Cooper, Michael S. Schmidt, Eric Schmitt and Scott Shane.



This article has been revised to reflect the following correction:

Correction: November 9, 2012

An earlier version of this article incorrectly stated that David H. Petraeus was expected to remain in President Obama’s cabinet. The C.I.A. director is not a cabinet member in the Obama administration.



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China derides U.S. “Cold War mentality” towards telecoms firm Huawei
















BEIJING (Reuters) – The United States is exhibiting a “Cold War mentality” with its fears that Chinese telecommunications equipment manufacturer Huawei poses a security risk because of its ties to the Communist Party, China‘s commerce minister said on Saturday.


The U.S. House of Representatives’ Intelligence Committee warned last month that Beijing could use equipment made by Huawei, the world’s second-largest maker of routers and other telecom gear, as well as rival Chinese manufacturer ZTE, the fifth largest, for spying.













The report cited the presence of a Communist Party cell in the companies’ management structure as part of the reason for concern.


The state role in business prompted a U.S. congressional advisory panel to complain this week that Chinese investment in the United States had created a “potential Trojan horse”.


“Can you imagine if China started asking U.S. companies coming to China what their relationship was with the Democratic or Republican parties? It would be a mess,” Commerce Minister Chen Deming, himself a Communist Party member, told reporters on the sidelines of the 18th Party Congress, which will usher in a new generation of leaders.


“If you see me as a Trojan horse, how should I view you? By this logic, if the Americans turned it around, they would see that it’s not in their interest to think this way.”


All Chinese state-owned enterprises and a growing number of private Chinese firms have a Communist Party secretary at the top of their management structure. In most cases, the top management are themselves party members.


Neither Huawei nor ZTE is state-owned. Huawei is owned by its employees and ZTE by different institutions.


Suspicions of Huawei are partly tied to its founder, Ren Zhengfei, a former People’s Liberation Army officer. Huawei denies any links with the Chinese military and says it is a purely commercial enterprise.


The Commerce Ministry China last month dismissed the U.S. suspicions as groundless.


“This report by the relevant committee of the U.S. Congress, based on subjective suspicions, no solid foundation and on the grounds of national security, has made groundless accusations against China,” spokesman Shen Danyang said.


(Reporting by Lucy Hornby; Editing by Nick Macfie)


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Lakers rout Warriors 101-77 after Brown's firing

LOS ANGELES (AP) — A few hours after the Los Angeles Lakers' top brass abruptly fired coach Mike Brown and threw their season into turmoil before mid-November, Brown's former players demonstrated why there's still ample reason to think this team can be saved.

The Lakers should find out soon whether Phil Jackson gets the chance to do the saving — again.

Kobe Bryant scored 27 points, Pau Gasol added 14 points and 16 rebounds, and the Lakers doubled their win total with a 101-77 victory over the Golden State Warriors on Friday night.

Jordan Hill scored 14 points for the Lakers, who were uniformly stunned by Brown's dismissal after just 18 months on the job. Following a bumpy first half against Golden State under interim coach Bernie Bickerstaff, they pulled away in the third quarter with a 25-9 run led by Bryant, who also had nine rebounds and seven assists.

"I think everybody didn't know how to react to it emotionally," Bryant said. "Everybody had to just go about their business and play basketball. ... A lot of the emotion that was picked up was kind of unleashed when we played."

The comfortable victory capped one of the most tumultuous days in recent history for a franchise that's never short on drama. With the high-priced veteran club off to a Western Conference-worst 1-4 start following a winless preseason, Lakers general manager Mitch Kupchak and owner Jim Buss abruptly dismissed Brown, informing players during their morning shootaround.

Bickerstaff ran the Lakers as the interim coach, but the veteran NBA bench boss isn't likely to be a candidate for the full-time job. Kupchak is searching for a replacement, possibly making a selection before the Lakers' next game on Sunday against Sacramento.

The Lakers' crowd quickly made its choice known: A chant of "We want Phil!" rose out of the stands while Bryant shot a free throw in the third quarter, and echoed a few more times later in the half.

"I can understand why," Bickerstaff said. "The guy's got the rings."

Jackson, the 11-time NBA champion coach who won five rings in two previous stints running the Lakers, is near the top of Kupchak's list again, the GM acknowledged. Mike D'Antoni, the former Knicks and Suns coach, also is thought to be a prime candidate.

Bryant said he would be thoroughly happy with Jackson, D'Antoni or former Lakers assistant coach Brian Shaw in charge. Bryant's injury struggles during Jackson's final season would give him particular motivation for a third stint together.

"I wasn't able to give him my real self because I was playing on one leg," Bryant said. "It's always kind of eaten away at me that in the last year of his career ... I couldn't give him everything I had because I was playing on one knee."

Dwight Howard had six points and eight rebounds while playing just 24 minutes for the Lakers in his ongoing return from offseason back surgery. Steve Nash, the other major addition to the club, watched from behind the bench, missing his fourth straight game with a small fracture in his leg. Nash will be out for at least another week, the Lakers announced after the game.

After the protracted drama between Orlando coach Stan Van Gundy and the six-time All-Star center, Howard met questions about the Lakers' coaching staff with a smile and silence.

"I'm going to keep that to myself," Howard said. "I learned my lesson last year."

Brown never got the chance to integrate the two stars into his new offense while they were dogged by health issues. Kupchak and Buss still needed to see more progress than the Lakers managed in the past six weeks, particularly on defense — and they saw it against the Warriors, who managed just 33.7 percent shooting and made 19 turnovers.

"We were just out of sync, no excuse," Golden State coach Mark Jackson said. "If you're going to beat a good team on the road, you've got to take care of the basketball. We came in with the mindset to run, and they outscored us even in fast-break points. Just disappointed overall."

Stephen Curry scored 18 points and Klay Thompson had 15 for the Warriors, who have lost five straight to the Lakers overall, and nine in a row at Staples Center since March 2008.

"I think we played well, but the score doesn't say that," Curry said. "Defensively, we did a pretty good job. We're just undersized down there, trying to battle the boards and the paint."

The Lakers' offensive struggles evaporated in the third quarter while they leaped to an 18-point lead over the undermanned Warriors, who struggled to contend inside without injured center Andrew Bogut.

Darius Morris had career highs of 10 points and five rebounds while playing the majority of the Lakers' minutes at point guard. Los Angeles' reserves have been largely ineffective during Brown's tenure, but Morris and Hill led a spirited effort against the Warriors, outscoring their counterparts with Golden State 37-17.

NOTES: Lakers F Devin Ebanks was inactive after getting arrested on suspicion of driving under the influence of alcohol or drugs early Friday morning. Rookie Darius Johnson-Odom made his NBA debut in the final minutes. ... Warriors C Andris Biedrins came up roughly 2 feet short on an airballed free throw in the first half. The Latvian veteran has a career free throw shooting percentage just over 50 percent. ... Brown went 42-29 with the Lakers, coaching them to the second round of the playoffs during the strike-shortened season before his abbreviated start to this fall.

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FEMA Chief Tours Damaged NYU Langone Medical Center





The federal government’s emergency management chief trudged through darkened subterranean hallways covered with silt and muddy water Friday, as he toured one of New York City’s top academic medical centers in the aftermath of Hurricane Sandy. The basement of the complex, NYU Langone Medical Center in Manhattan, smelled like the hold of a ship — a mixture of diesel oil and water.




“You’re going to deal with the FUD — fear, uncertainty and doubt,” W. Craig Fugate, administrator of the Federal Emergency Management Agency, told NYU Langone officials afterward, as they retreated to a conference room to catalog the losses. “Don’t look at this. Think about what’s next.”


NYU Langone, with its combination of clinical, research and academic facilities, may have been the New York City hospital that was most devastated by Hurricane Sandy. What’s next is a spectacularly expensive cleanup.


Dr. Robert I. Grossman, dean and chief executive of NYU Langone, looking pale and weary — as if he were, indeed, struggling to hold back the FUD — estimated that the storm could cost the hospital $700 million to $1 billion. His estimate included cleanup, rebuilding, lost revenue, interrupted research projects and the cost of paying employees not to work.


As the hurricane raged, the East River filled the basement of the medical center, at 32nd Street and First Avenue, knocked out emergency power and necessitated the evacuation of more than 300 patients over 13 hours in raging wind, rain and darkness. It disrupted medical school classes and shut down high-level research projects operating with federal grants.


Mr. Fugate arrived to inspect the damage and help plot the institution’s recovery, the advance guard of what aides said would be a hospital task force. He was brought in by Senator Charles E. Schumer of New York, who kept saying that there was nothing like seeing the damage firsthand to understand how profound it really was.


“What was that movie — ‘Contagion?’ ” Mr. Schumer said, marveling at the hellish scene.


NYU Langone’s patients, a major source of revenue, have been scattered to other hospitals, creating a risk that they may never return. Dr. Grossman said he was counting on those patients’ loyalty.


John Sexton, president of New York University, which includes NYU Langone, and who also met with Mr. Fugate, raised fears that researchers might be lured away to other institutions because their grants were ticking away on deadline or because they must publish or perish. Outside the hospital, tanks of liquid nitrogen testified to the efforts to keep research materials from spoiling.


In inky blackness, the group stood at the brink of the animal section of the Smilow Research Center, where rodents for experiments had been kept, but they did not go inside. On Nov. 3, a memo sent to NYU Langone researchers said the animal section, or vivarium, was “completely unrecoverable.”


Dr. Grossman said that scientists had managed to save some rodents by raising their cages to higher ground.


A modernized lecture hall with raked seats used by medical students had been filled “like a bathtub,” he said, though it was dry on Friday. The library, he said, “is basically gone.”


Four magnetic resonance scanners, a linear accelerator and gamma knife surgery equipment, kept in the basement, were now worthless. Dr. Grossman said that in the future, he wanted to move such equipment, which is very heavy, to higher floors.


Electronic medical records were protected by a server in New Jersey, he said.


Richard Cohen, vice president for facilities operations, took the group past piles of sandbags and a welded steel door that had been blown out by the force of the flood. “That door was put in around 1959 to 1960, when doors were really doors,” Mr. Cohen said. “And this thing is completely torsionally twisted. I’ve never seen anything like that.”


Walking to the back of the hospital, Mr. Cohen used a loading dock as a measuring stick to estimate that the surge had risen to 14 ½ feet. “We were prepared for 12 feet, no problem,” Dr. Grossman said.


Dr. Grossman said it would take a couple of more weeks of assessing the damage to determine when the hospital could reopen. Outpatient business is already returning. Research and some inpatient services will come next.


Mr. Fugate said his agency would help cover the uninsured losses, and urged NYU Langone officials to move ahead.


At this point, Dr. Grossman said, he could only theorize as to why the generators had shut down. All but one generator is on a high floor, but the fuel tanks are in the basement. The flood, he said, was registered by the liquid sensors on the tanks, which then did what they were supposed to do in the event, for instance, of an oil leak. They shut down the fuel to the generators.


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A Transfer of Power Begins in China

Military delegates arrived for the 18th Communist Party Congress at the Great Hall of the People in Beijing on Thursday. The weeklong meeting precedes the naming of China’s top leader, who will replace Hu Jintao. The meeting also introduces a new generation of party leaders.
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Exclusive: SEC left computers vulnerable to cyber attacks – sources
















WASHINGTON (Reuters) – Staffers at the U.S. Securities and Exchange Commission failed to encrypt some of their computers containing highly sensitive information from stock exchanges, leaving the data vulnerable to cyber attacks, according to people familiar with the matter.


While the computers were unprotected, there was no evidence that hacking or spying on the SEC‘s computers took place, these people said.













The computers and other electronic devices in question belonged to a handful of employees in an office within the SEC’s Trading and Markets Division. That office is responsible for making sure exchanges follow certain guidelines to protect the markets from potential cyber threats and systems problems, one of those people said.


Some of the staffers even brought the unprotected devices to a Black Hat convention, a conference where computer hacking experts gather to discuss the latest trends. It is not clear why the staffers brought the devices to the event.


The security lapses in the Trading and Markets Division are laid out in a yet-to-be-released report that by the SEC’s Interim Inspector General Jon Rymer.


NO DATA BREACHED


The revelation comes as the SEC is encouraging companies to get more serious about cyber attacks. Last year, the agency issued guidance that public companies should follow in determining when to report breaches to investors.


Cyber security has become an even more pressing issue after high-profile companies from Lockheed Martin Corp to Bank of America Corp have fallen victim to hacking in recent years.


Nasdaq OMX Group, which runs the No. 2 U.S. equities exchange, in 2010 suffered a cyber attack on its collaboration software for corporate boards, but its trading systems were not breached.


One of the people familiar with the SEC’s security lapse said the agency was forced to spend at least $ 200,000 and hire a third-party firm to conduct a thorough analysis to make sure none of the data was compromised.


The watchdog’s report has already been circulated to the SEC’s five commissioners, as well as to key lawmakers on Capitol Hill, and is expected to be made public soon.


SEC spokesman John Nester declined to comment on the report’s findings.


SEC NOTIFIED EXCHANGES


Rich Adamonis, a spokesman for the New York Stock Exchange, said the exchange operator is “disappointed” with the SEC’s lapse.


“From the moment we were informed, we have been actively seeking clarity from the SEC to understand the full extent of the use of improperly secured devices and the information involved, as well as the actions taken by the SEC to ensure that there is proper remediation and a complete audit trail for the information,” he said.


A spokesman for Nasdaq OMX declined to comment on the security lapse at the SEC.


Since the internal investigation was concluded, the SEC initiated disciplinary actions against the people involved, one of the people familiar with the matter said.


The SEC also notified all of the exchanges about the incident.


The SEC’s Trading and Markets Division, which has several hundred staffers, is primarily responsible for overseeing the U.S. equity markets, ensuring compliance with rules and writing regulations for exchanges and brokerages.


Among the division’s tasks is to ensure exchanges are following a series of voluntary guidelines known as “Automation Review Policies,” or ARPs. These policies call for exchanges to establish programs concerning computer audits, security and capacity. They are, in essence, a road map of the capital markets’ infrastructure.


Although they are only voluntary guidelines, exchanges take them seriously.


Under the ARP, exchanges must provide highly secure information to the SEC such as architectural maps, systems recovery and business continuity planning details in the event of a disaster or other major event.


That is the same kind of data used by exchanges last week after Hurricane Sandy forced U.S. equities markets to shut down for two days.


Prior to re-opening, all of the U.S. stock market operators took part in coordinated testing for trading on NYSE’s backup system.


SEC Chairman Mary Schapiro recently said the SEC is working to convert the voluntary ARP guidelines into enforceable rules after a software error at Knight Capital Group nearly bankrupt the brokerage and led to a $ 440 million trading loss.


(Reporting by Sarah N. Lynch; Editing by Karey Wutkowski and Lisa Shumaker)


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Luck runs for 2 TDS, Colts beat Jaguars 27-10

JACKSONVILLE, Fla. (AP) — Another week, another win, another reason for the Indianapolis Colts to love Andrew Luck.

Four days after setting a rookie record, Luck ran for two touchdowns and showed he could tackle and take a hard hit in a 27-10 victory over the Jacksonville Jaguars on Thursday night.

Luck help the Colts (6-3) win their fourth consecutive game and snap a three-game losing streak in the series.

"This win was huge," Luck said. "We wanted to keep our winning streak going. ... This is a good step in the right direction, but no one looks back at the fact that you were 6-3 in the middle of the season. It's what we do at the end of the season."

Coming off an NFL rookie record 433 yards passing against Miami, Luck wasn't quite as sharp in his prime-time debut. He didn't need to be, either.

Luck completed 18 of 26 passes for 227 yards, with an interception and a fumble. But he was unstoppable near the end zone, juking defenders with two pump fakes and scrambling for a 5-yard score on one drive and then plunging across the goal line on fourth down on the next possession.

Equally impressive was his toughness.

Luck made a diving tackle on safety Dawan Landry following an interception. Luck also bounced right back up after Landry hammered him as he started a slide late in the game. Landry was flagged and surely will be fined.

Luck's tackle, though, got all the attention.

"Not much to think about I guess," Luck said. "It was football instincts. You see the guy on the other team with the ball, you're going to try and tackle him. If I'm going to be the one who turns the ball over, I'm going to at least try and stop the guy."

That might not be the wisest decision for the team's franchise player.

"I was afraid he was going to try and take his head off," interim coach Brice Arians said. "He gets ticked off when he throws those interceptions."

There wasn't much else for Indy to be upset about.

Indianapolis scored on three consecutive possessions in the first half, opening up a 17-0 lead that started emptying the stands at EverBank Field.

That was plenty against the Jaguars (1-8), who have the league's worst offense and played a third game without star running back Maurice Jones-Drew.

Jacksonville has lost six in a row since a come-from-behind victory at Indianapolis. Blaine Gabbert hit Cecil Shorts III for an 80-yard touchdown in the final minute, stunning the Colts.

There was no drama in the rematch.

The Colts essentially sealed the victory when Darius Butler stepped in front of Gabbert's pass in the flat and went untouched for an 11-yard interception return for a touchdown early in the third quarter.

"It was an anticipated thing," Butler said. "It was something I had seen those guys do on film, so I was ready for it and jumped in front of him. I knew they wanted to get the ball out quick. I was ready for it and went for it. A great feeling."

Indianapolis became just the third road team to win on Thursday night this season, and just the fifth in the last two seasons.

It certainly helped playing Jacksonville.

The Jaguars have been outscored 153-44 at home this season, on the wrong end of lopsided losses to Houston, Cincinnati, Chicago and Detroit.

Against Indy, nothing seemed to go Jacksonville's way.

There were several dropped passes. Josh Scobee missed a 44-yard field goal attempt, snapping a streak of 20 consecutive makes. The Jaguars had an interception overturned by a roughing the passer penalty, keeping alive a drive that ended in a touchdown.

They also were on the losing end of two reviews.

"We're trying to overcome ourselves," coach Mike Mularkey said. "We have to overcome ourselves. When we do that, we'll start winning games."

Laurent Robinson fumbled at the end of a 9-yard gain, getting the ball stripped by Moise Fokou. Officials initially ruled Robinson was down, but the call was overturned on review. That turnover led to Indy's second touchdown and prompted Mularkey's meltdown on the sideline.

Mularkey lost his cool when officials refused to acknowledge his pleas for a review on Luck's fourth-down TD plunge. Luck appeared to fumble the ball as he crossed the goal line.

Mularkey wanted officials to take a longer look at the scoring play. He whipped his play sheet and headset onto the field, drawing a flag for unsportsmanlike conduct.

"I lost my composure," Mularkey said. "I certainly thought the review would see what everybody else saw."

Players followed his lead, getting flagged for five more 15-yard penalties. The Jaguars finished the night with 10 penalties for 115 yards.

"That's not going to be who we are," Mularkey said. "There's no way we're going to be that way. We will not be that type of team. We will be a disciplined team, we'll be a smart team and we will be a physical team. But we will not be that team that's going to have personal fouls. It will stop."

Gabbert completed 18 of 31 passes for 209 yards, with an interception. He left the game in the fourth quarter after re-injuring his non-throwing shoulder. He could have returned, but Mularkey decided to keep him on the bench.

"We're so close but so far at the same time," Gabbert said. "We get drives going and we have to make a play and we haven't done that. We definitely didn't do that tonight."

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Recipes for Health: Sweet Potato and Apple Kugel — Recipes for Health


Andrew Scrivani for The New York Times







I’ve looked at a number of sweet potato kugel recipes, and experimented with this one a few times until I was satisfied with it. The trick is to bake the kugel long enough so that the sweet potato softens properly without the top drying out and browning too much. I cover the kugel during the first 45 minutes of baking to prevent this. After you uncover it, it’s important to baste the top every 5 to 10 minutes with melted butter.




 


4 eggs


Salt to taste


2 large sweet potatoes (1 3/4 to 2 pounds total), peeled and grated


2 slightly tart apples, like Gala or Braeburn, peeled, cored and grated


1 tablespoon fresh lime juice


1 tablespoon mild honey or agave nectar


3 to 4 tablespoons melted unsalted butter, as needed


 


1. Heat the oven to 375 degrees. Butter a 2-quart baking dish.


2. In a large mixing bowl, beat the eggs with salt to taste (I suggest about 1/2 teaspoon). Add the grated sweet potatoes and the apples. Pour the lime juice over the grated apples and sweet potatoes, then stir everything together. Combine the honey and 2 tablespoons of the melted butter and stir together, then toss with the sweet potato mixture and combine well.


3. Transfer the mixture to the prepared baking dish. Cover the dish tightly with foil and place in the oven. Bake 45 minutes. Remove the foil and brush the top of the kugel with melted butter. Return to the oven and bake for another 15 to 20 minutes or longer, brushing every 5 minutes with butter. The kugel is ready when the edges are browned, the top is browned in spots and the mixture is set. Remove from the heat and allow to cool for 10 to 15 minutes before serving.


Yield: 8 servings.


Advance preparation: You can make this a day ahead and reheat in a medium oven.


Nutritional information per serving (6 servings): 187 calories; 7 grams fat; 4 grams saturated fat; 1 gram polyunsaturated fat; 2 grams monounsaturated fat; 104 milligrams cholesterol; 28 grams carbohydrates; 4 grams dietary fiber; 91 milligrams sodium (does not include salt to taste); 5 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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