Iceland, Prosecutor of Bankers, Sees Meager Returns

Ilvy Njiokiktjien for The New York Times

"Greed is not a crime. But the question is: where does greed lead?" said Olafur Hauksson, a special prosecutor in Reykjavik.

REYKJAVIK, Iceland — As chief of police in a tiny fishing town for 11 years, Olafur Hauksson developed what he thought was a basic understanding of the criminal mind. The typical lawbreaker, he said, recalling his many encounters with small-time criminals, “clearly knows that he crossed the line” and generally sees “the difference between right and wrong.”

Today, the burly, 48-year-old former policeman is struggling with a very different sort of suspect. Reassigned to Reykjavik, the Icelandic capital, to lead what has become one of the world’s most sweeping investigation into the bankers whose actions contributed to the global financial crisis in 2008, Mr. Hauksson now faces suspects who “are not aware of when they crossed the line” and “defend their actions every step of the way.”

With the global economy still struggling to recover from the financial maelstrom five years ago, governments around the world have been criticized for largely failing to punish the bankers who were responsible for the calamity. But even here in Iceland, a country of just 320,000 that has gone after financiers with far more vigor than the United States and other countries hit by the crisis, obtaining criminal convictions has proved devilishly difficult.

Public hostility toward bankers is so strong in Iceland that “it is easier to say you are dealing drugs than to say you’re a banker,” said Thorvaldur Sigurjonsson, the former head of trading for Kaupthing, a once high-flying bank that crumbled. He has been called in for questioning by Mr. Hauksson’s office but has not been charged with any wrongdoing.

Yet, in the four years since the Icelandic Parliament passed a law ordering the appointment of an unnamed special prosecutor to investigate those blamed for the country’s spectacular meltdown in 2008, only a handful of bankers have been convicted.

Ministers in a left-leaning coalition government elected after the crash agree that the wheels of justice have ground slowly, but they call for patience, explaining that the process must follow the law, not vengeful passions.

“We are not going after people just to satisfy public anger,” said Steingrimur J. Sigfusson, Iceland’s minister of industry, a former finance minister and leader of the Left-Green Movement that is part of the governing coalition.

Hordur Torfa, a popular singer-songwriter who helped organize protests that forced the previous conservative government to resign, acknowledged that “people are getting impatient” but said they needed to accept that “this is not the French Revolution. I don’t believe in taking bankers out and hanging them or shooting them.”

Others are less patient. “The whole process is far too slow,” said Thorarinn Einarsson, a left-wing activist. “It only shows that ‘banksters’ can get away with doing whatever they want.”

Mr. Hauksson, the special prosecutor, said he was frustrated by the slow pace but thought it vital that his office scrupulously follow legal procedure. “Revenge is not something we want as our main driver in this process. Our work must be proper today and be seen as proper in the future,” he said.

Part of the difficulty in prosecuting bankers, he said, is that the law is often unclear on what constitutes a criminal offense in high finance. “Greed is not a crime,” he noted. “But the question is: where does greed lead?”

Mr. Hauksson said it was often easy to show that bankers violated their own internal rules for lending and other activities, but “as in all cases involving theft or fraud, the most difficult thing is proving intent.”

And there are the bankers themselves. Those who have been brought in for questioning often bristle at being asked to account for their actions. “They are not used to being questioned. These people are not used to finding themselves in this situation,” Mr. Hauksson said. They also hire expensive lawyers.

The special prosecutor’s office initially had only five staff members but now has more than 100 investigators, lawyers and financial experts, and it has relocated to a big new office. It has opened about 100 cases, with more than 120 people now under investigation for possible crimes relating to an Icelandic financial sector that grew so big it dwarfed the rest of the economy.

To help ease Mr. Hauksson’s task, legislators amended the law to allow investigators easy access to confidential bank information, something that previously required a court order.

Parliament also voted to put the country’s prime minister at the time of the banking debacle on trial for negligence before a special tribunal. (A proposal to try his cabinet failed.) Mr. Hauksson was not involved in the case against the former leader, Geir H. Haarde, who last year was found guilty of failing to keep ministers properly informed about the 2008 crisis but was acquitted on more serious charges that could have resulted in a prison sentence.

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Edward Koch dies at 88; outspoken mayor led New York City comeback

In the late 1970s when Edward I. Koch won his first term as mayor of New York, the city was in shambles, its coffers and confidence sapped by financial crises and a paralyzing blackout. It needed a fighter and found one in Koch, a well-practiced pol with the determination — and bite — of a bulldog.

He steered the city out of bankruptcy and restored its swagger, a one-man cheerleading squad who personified the witty and feisty New Yorker.

The three-term mayor of New York and perennial civic combatant, who rallied and riled the city in and out of office with his tenacious style and irrepressible opinions, died Friday of congestive heart failure at New York-Presbyterian/Columbia Hospital, said his friend and spokesman George Arzt. He was 88.

Koch had been hospitalized Monday, a day before a documentary about him, "Koch," premiered in New York City. He had been hospitalized several times in recent months for breathing problems and other ailments.

For most of his adult life, Koch had lived alone in an apartment off Washington Square Park in Greenwich Village. It was where he departed the morning in 1978 when he rode a public bus to City Hall to be sworn in as the city's 105th mayor and where he returned 12 years later, after a disastrous fourth run to keep the job he clearly relished and worked hard at. He spent the rest of his life out of public office but rarely out of public view.

He juggled almost a dozen jobs — including law partner, columnist, author, radio show host, playwright, movie reviewer and lecturer — and appeared relentlessly in the media, a shtick-artist with one of the most recognizable New York accents in the world. When he wasn't bellowing at opponents on political round tables, he was hawking such products as diet aids and soft drinks in advertisements and popping up in screen cameos as himself, the quintessential New Yorker, alongside Carrie and the girls in television episodes of "Sex and the City" or with Big Bird in the 1984 film "The Muppets Take Manhattan."

His support was pivotal in Republican Bob Turner's victory in the September 2011 special election in the heavily Democratic congressional district that had been represented by Rep. Anthony Weiner, who was forced to resign in a "sexting" scandal. "Ed Koch was enough to turn this around," Democratic strategist Hank Sheinkopf said after Turner's win.

For his 86th birthday in 2010, New York's current mayor, Michael Bloomberg, renamed the bridge linking Manhattan to Koch's home borough of Queens the Ed Koch Queensboro Bridge, saying it was, like Koch, "a resilient, hard-working New York City icon."

"He was a great mayor, a great man, and a great friend," Bloomberg said Friday in a statement. "In elected office and as a private citizen, he was our most tireless, fearless and guileless civic crusader. Through his tough, determined leadership and responsible fiscal stewardship, Ed helped lift the city out of its darkest days and set it on course for an incredible comeback."

New York Gov. Andrew Cuomo echoed the sentiment: "No New Yorker has — or likely ever will — voice their love for New York City in such a passionate and outspoken manner than Ed Koch."

"He was the epitome of New York — loud, funny, opinionated, smart," said Arzt, who was Koch's City Hall spokesman and part of an administration alumni group that lunched with him every Saturday after he left office. "Ed was very much a straight-shooter, a champion of the middle class, a moderate Democrat akin to a Harry Truman. He defied categories."

In fact, Koch loved to enrage liberals by doing and saying the unthinkable — endorsing Republican politicians such Rudolph Giuliani and George W. Bush. But Koch also held fast to many liberal values. One of his first executive orders as mayor was adding sexual preference to a citywide ban on job discrimination.

He invited controversy and enjoyed confrontation. He once wrestled an egg-throwing heckler to the floor before the police could move in.

Altogether, Koch wrote or co-authored 17 books, including eight autobiographies, two children's books and multiple mystery novels starring himself as the detective.

Koch opined freely, never mincing words: Movie tickets were too expensive; the United Nations, after an anti-Israel vote, was "made up of gangsters, cutthroats and piranhas"; a Puerto Rican mayoral rival was a "poverty pimp"; Sarah Palin was likable but "scares the hell out of me." He never lost interest in his favorite subject — himself. "How'm I doin'?" was his trademark question.

The only topics that remained off limits were his heroic service as an infantryman in World War II — he was awarded two battle stars — and his sexuality. A lifelong bachelor, he was dogged by questions about his sexuality, which he largely ignored, although he did on two occasions describe himself as heterosexual. "I ran in a total of 24 elections and won 21," he once told the New York Times. "I will not be a coward and say I am straight or I'm gay, because it's no one's business. I got where I am today not because of sexuality or gender but because people thought I was the best at what I did...."

In recent years, Koch appeared to mellow, seeking reconciliation with former rivals, but he refused to yield when it came to standards for public service. As recently as the summer of 2010, the octogenarian ginned up a campaign called "New York Uprising" to reform state government. Despite a history of heart disease that left him with two pacemakers and a degenerative spinal disorder that caused the once-strapping 6-foot-1 former mayor to be stooped in old age, he embarked in a Jeep on a campaign-style press tour around upstate New York to shame reluctant legislators in their home districts into signing a pledge to "clean up Albany."

This was shortly after Koch, ever the showman, revealed he had finalized plans for his funeral and penned his epitaph. His gravestone will declare his pride in his religion — "My father is Jewish, my mother is Jewish, I am Jewish" — and his "fierce" love of his city and country.

Edward Irving Koch was born Dec. 12, 1924, in the Bronx and spent his early years in Newark, N.J., where his family moved after his furrier father went broke during the Great Depression. Koch attended the City College of New York before being drafted into the Army; he eventually graduated from New York University's law school and joined a liberal political reform group in Greenwich Village, the Village Independent Democrats. He served as a district leader, city councilman and for 10 years represented the East Side and lower Manhattan in Congress.

The second of three children, Koch is survived by his sister, Pat Koch Thaler. A brother, Harold, died in 1995.

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Twitter Hacked; Company Says 250K Users May Have Been Affected

Following a string of revelations this week from several media companies who announced they had been recently hacked, Twitter announced on Friday that it had also been the target of a sophisticated attack.

The company wrote in a blog post ironically titled “Keeping our users secure” that it detected unusual patterns this week that led it to identify attempts to access user data.

“We discovered one live attack and were able to shut it down in process moments later,” wrote Bob Lord, Twitter’s director of information security. “However, our investigation has thus far indicated that the attackers may have had access to limited user information — usernames, email addresses, session tokens and encrypted/salted versions of passwords — for approximately 250,000 users.”

As a result, the company said it had reset passwords and revoked session tokens for the accounts suspected of being affected. The company also sent an e-mail to affected users informing them that their old password was no longer valid and that they would need to create a new one.

Lord did not explain how the attackers got in and accessed the data, but said that he did not believe Twitter was the only company targeted.

“This attack was not the work of amateurs, and we do not believe it was an isolated incident,” he wrote. “The attackers were extremely sophisticated, and we believe other companies and organizations have also been recently similarly attacked. For that reason we felt that it was important to publicize this attack while we still gather information, and we are helping government and federal law enforcement in their effort to find and prosecute these attackers to make the Internet safer for all users.”

Twitter recently began bulking up its security team with a number of high-profile hires. In 2011 noted white hat hacker and security pro Moxie Marlinspike joined Twitter after the company acquired his mobile encryption firm Whisper Systems. Last September, Marlinspike helped bring on board fellow noted white hat hacker and researcher Charlie Miller.

Just two weeks ago, however, Marlinspike announced that he was leaving Twitter.

Twitter’s hack announcement Friday comes in a week crowded with announcements about media companies that have been hacked. On Thursday, the New York Times revealed that hackers, who had been inside its network for at least four months, had succeeded to steal the usernames and passwords of all of its employees in an apparent attempt to identify sources and gather other intelligence about stories related to the family of China’s prime minister.

The hackers breached the network sometime around Sept. 13 and stole the corporate passwords for every Times employee, using them to gain access to the personal computers of 53 employees, according to the report.

The hackers also broke into the email account of the newspaper’s Shanghai bureau chief, David Barboza, who conducted the investigation, as well as the email account of Jim Yardley, the paper’s South Asia bureau chief in India, who had previously worked out of Beijing.

The Times report indicated that the attack was part of a wave of attacks that appeared to come from China and were targeted against western media outlets.

The day after the Times announcement a report surfaced that Bloomberg News had also been hacked, followed the next day by a report that the Washington Post had also been targeted.

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Mike Tyson’s Controversial ”Law & Order: SVU” Episode Moved Up a Week

LOS ANGELES (TheWrap.com) – NBC is sticking with its decision to cast Mike Tyson in an upcoming episode of “Law & Order: Special Victims Unit.” In fact, it’s moving the episode up a week from its original air date.

Tyson’s guest spot on “SVU” – which sparked outrage online, in light of Tyson’s rape conviction – will air February 6. The episode was originally scheduled to air on February 13.

On the episode, former boxing champ Tyson plays Reggie Rhodes, a murderer on death row who was the victim of a difficult childhood. (Andre Braugher, most recently of ABC’s “Last Resort,” also guest-stars.)

After news of the episode broke, a petition was posted on Change.org, urging NBC to cast someone other than Tyson in the role, or to pull the episode altogether.

“Am I the only one who remembers that Mike Tyson was CONVICTED and sent to prison for raping Desiree Washington?” Marcie Kaveney, an abuse survivor and advocate who started the petition, wrote in her online plea. “I am sorry but I see this as just another way to clean-up his image.”

“While we understand Mr. Tyson has served his time; it seems as though the only person who will benefit from his guest appearance will be him,” the petition, addressed to various NBC executives as well as “SVU” creator Dick Wolf and showrunner Warren Leight, reads. “There are many sexual assault survivors as well as others who consider your decision to be in poor judgment. Mr. Tyson has never publicly apologized to his victim nor has he admitted his crime. In fact, he has publicly ridiculed his victim.”

The petition has so far amassed more than 12,000 signatures.

In 1992, Tyson was convicted of raping beauty pageant contestant Washington. Sentenced to six years in prison, he ultimately served three.

NBC had no comment for TheWrap on why the episode was rescheduled. However, an individual with knowledge of the shuffle told TheWrap that, contrary to earlier reports, the rescheduling is unconnected to the fact that One Billion Rising, a protest in support of female abuse victims, is scheduled to take place the day after the original air date.

Tyson has dabbled in show business in recent years, appearing in cameos in “The Hangover” movie franchise, and performing in a one-man show, “Undisputed Truth,” which is scheduled to begin a tour next month.

TV News Headlines – Yahoo! News

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Birth Control Rule Altered to Allay Religious Objections

WASHINGTON — The Obama administration on Friday proposed yet another compromise to address strenuous objections from religious organizations about a policy requiring health insurance plans to provide free contraceptives, but the change did not end the political furor or legal fight over the issue.

The proposal could expand the number of groups that do not need to pay directly for birth control coverage, encompassing not only churches and other religious organizations, but also some religiously affiliated hospitals, universities and social service agencies. Health insurance companies would pay for the coverage.

The latest proposed change is the third in the last 15 months, all announced on Fridays, as President Obama has struggled to balance women’s rights, health care and religious liberty. Legal experts said the fight could end up in the Supreme Court.

Kathleen Sebelius, the secretary of health and human services, said the proposal would guarantee free coverage of birth control “while respecting religious concerns.”

But Kyle Duncan, the general counsel of the Becket Fund for Religious Liberty in Washington, which is representing employers in eight lawsuits, said the litigation would continue. “Today’s proposed rule does nothing to protect the religious freedom of millions of Americans,” Mr. Duncan said.

Religious groups dissatisfied with the new proposal want a broader, more explicit exemption for religious organizations and protection for secular businesses owned by people with religious objections to contraceptive coverage.

The tortured history of the rule has played out in several chapters. The Obama administration first issued standards requiring insurers to cover contraceptives for women in August 2011, less than a month after receiving recommendations to that effect from the National Academy of Sciences. In January 2012, the administration rejected a broad exemption sought by the Roman Catholic Church for insurance provided by Catholic hospitals, colleges and charities. After a firestorm of criticism from Catholic bishops and Republican lawmakers, the administration offered a possible compromise that February. But it left many questions unanswered and did not say how coverage would be provided for self-insured religious organizations.

Under the new proposal, churches and nonprofit religious organizations that object to providing birth control coverage on religious grounds would not have to pay for it.

Female employees could get free contraceptive coverage through a separate plan that would be provided by a health insurer. Institutions objecting to the coverage would not pay for the contraceptives.

Insurance companies would bear the cost of providing the separate coverage, with the possibility of recouping the costs through lower health care expenses resulting in part from fewer births.

Chiquita Brooks-LaSure, who helped develop the proposal as deputy director of the federal office that regulates health insurance, said: “Under the proposed rule, insurance companies — not churches or other religious organizations — will cover contraceptive services. No nonprofit religious institution will be forced to pay for or provide contraceptive coverage, and churches and houses of worship are specifically exempt.”

Moreover, she said, “Nonprofit religious organizations like universities, hospitals or charities with religious objections won’t have to arrange, contract or pay for coverage of these services for their employees or students.”

But some of the lawsuits objecting to the plan have been filed by businesses owned by people who say they have religious reasons for not wanting to provide contraceptive coverage. Under the proposed rule, “for-profit secular employers” would have to provide birth control coverage to employees, even if the business owners had a religious objection to the idea.

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Media Decoder Blog: In Wake of Restructuring, NBC News President Quits

8:30 p.m. | Updated

The longest-serving president of any of the three network news divisions, Steve Capus of NBC News, stepped down from his position on Friday, six months after Comcast restructured its news units in a way that diminished his authority.

Pat Fili-Krushel, chairwoman of the NBCUniversal News Group, said in a brief telephone interview on Friday that she would “cast a wide net” while searching for a successor to Mr. Capus. In the interim, the leaders of the news division will report directly to her.

Ms. Fili-Krushel became Mr. Capus’s boss last July when Steve Burke, the chief executive of NBCUniversal, consolidated all of NBC’s news units — NBC News, the cable news channels MSNBC and CNBC, and its stake in the Weather Channel — under a new umbrella, the NBCUniversal News Group. Mr. Burke asked Ms. Fili-Krushel, one of his most trusted lieutenants, to run it, while keeping Mr. Capus and the heads of the other units in place.

Ms. Fili-Krushel worked early in her career at HBO and Lifetime. A veteran of the Walt Disney Company, where she helped program ABC, and  Time Warner, where she was an administrator, she is by her own admission not a journalist.  But now she is, by default, the highest-ranking woman in the American television news industry — not just at the moment, but in the history of the medium. The heads of the news divisions at ABC and CBS are men, as are the heads of the Fox News Channel, CNN, and Bloomberg.

Ms. Fili-Krushel has kept a low public profile, but has been a forceful presence behind the scenes, recently moving from her office on the 51st floor of 30 Rockefeller Center, near Mr. Burke’s, to a new one on the third floor, where NBC News is based. On Friday, she said she had spent her first six months “learning, listening and getting to know the players here.” She called the News Group an “unbelievably strong organization.”

Though Mr. Capus’s exit saddened many at NBC News on Friday, it came as little surprise. He had previously reported directly to Mr. Burke, but after the restructuring he reported to Ms. Fili-Krushel, and he made no secret of his unhappiness with the change. His contract had a clause that allowed him to leave in the event that he no longer reported to Mr. Burke, according to two people with direct knowledge of the arrangement at NBC, and he decided to exercise that right after months of contemplation. The people insisted on anonymity because they were not authorized by the network to speak publicly.

Mr. Capus told Ms. Fili-Krushel of his intent to leave last Friday. It is likely that he would have left sooner, but a series of major news stories kept him busy late last year — including Hurricane Sandy, the presidential election and the school shooting in Newtown, Conn. Mr. Capus also oversaw the network’s response to the kidnapping of Richard Engel and an NBC News crew in Syria last month.

“It has been a privilege to have spent two decades here, but it is now time to head in a new direction,” he wrote in an e-mail to staff members on Friday afternoon.

Mr. Capus guided NBC through a revolutionary time in news-gathering and distribution. He maintained the news division’s profitability, managed tensions between NBC News and its increasingly liberal cable channel MSNBC, and fostered new business ventures like an in-house production company and an annual education summit. Last year, he unwound an old deal with Microsoft to give the news division complete control over its Web site, now named NBCNews.com, for the first time.

Ms. Fili-Krushel wrote in a separate e-mail to staff members that “NBC News is America’s leading source of television news and Steve has been a big part of that success.”

NBC News is the producer of the most popular evening newscast in the country. But its single biggest source of profits, the morning show “Today,” fell to second place last year, behind ABC’s “Good Morning America,” for the first time since the 1990s. The decline caused widespread anxiety inside the news division and speculation that Mr. Capus would be relieved of his duties.

Inside NBC, both Mr. Capus and the executive producer of “Today,” Jim Bell, received much of the blame for the botched removal of Ann Curry from “Today” last June, which worsened the show’s already tenuous position in the ratings. Ms. Fili-Krushel was put in charge just a few weeks later.

Mr. Bell was replaced at “Today” last fall and is now the executive producer for NBC Olympics. Savannah Guthrie is now the co-host of “Today,” and Ms. Curry is a national and international correspondent for the network, but is rarely seen. Mr. Capus’s exit was seen by some at the network as the last shoe that had to drop.

In his e-mail to staff members, Mr. Capus called it an “extremely difficult decision to walk away,” noting that he started at NBC as a producer 20 years ago this month. He did not make any mention of what he would do next. “Journalism is, indeed, a noble calling, and I have much I hope to accomplish in the next phase of my career,” he wrote.

“Today” continues to lose to ABC’s “Good Morning America” among total viewers, but lately it has won a few weeks in the 25- to 54-year-old demographic that advertisers covet.

“NBC Nightly News” has more successfully fended off ABC’s “World News,” despite an aggressive push by ABC. Mr. Capus said, “NBC News has grown in all key metrics — from ratings and reputation to profitability.”

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Mahony stripped of public church duties

Los Angeles Archbishop Jose Gomez  on Thursday announced dramatic actions in response to the priest abuse scandal, saying that Cardinal Roger Mahony would be stripped of public duties in the church and that Santa Barbara Bishop Thomas J. Curry has stepped down.

Gomez said in a statement that Mahony -- who led the L.A. archdiocese from 1985 to 2011 -- "will no longer have any administrative or public duties."

Gomez also announced the church has released a trove of confidential church files detailing how the Los Angeles archdiocese dealt with priests accused of molestation.

Gomez wrote in a letter to parishioners that the files would be disturbing to read.

"I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed," he wrote. "We need to acknowledge that terrible failure today."

Gomez's statement came a week after the release of internal Catholic church records. The records showed 15 years before the clergy sex abuse scandal came to light, Mahony and Curry discussed ways to conceal the molestation of children from law enforcement. Those records represent just a fraction of the files the church released Thursday. The Times is now reviewing those files.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The records released last week offer the strongest evidence yet of a concerted effort by officials in the nation's largest Catholic diocese to shield abusers from police. The newly released records, which the archdiocese fought for years to keep secret, reveal in church leaders' own words a desire to keep authorities from discovering that children were being molested.

The records contain memos written in 1986 and 1987 by Mahony and Curry, then the archdiocese's chief advisor on sex abuse cases. In the confidential letters, Curry proposed strategies to prevent police from investigating three priests who had admitted to church officials that they had abused young boys.

Curry suggested to Mahony that they prevent the priests from seeing therapists who might alert authorities and that they give the priests out-of-state assignments to avoid criminal investigators. Mahony, who retired in 2011, has apologized repeatedly for errors in handling abuse allegations.

Gomez's letter detailed changes in the status of Curry and Mahony in the church.

"Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara,” Gomez wrote in a letter.

The records were released hours after a judge signed an order requiring the church to do so.

In a written order, Los Angeles County Superior Court Judge Emilie H. Elias gave the church a Feb. 22 deadline to turn over about 30,000 pages of internal memos, psychiatric reports, Vatican correspondence and other documents.

“Let’s just get it done,” Elias said in court Thursday.

Her order brought to a close five and a half years of legal wrangling and delays and set the stage for a raft of new and almost certainly embarrassing revelations about the church’s handling of pedophile priests.

DOCUMENT: Los Angeles Archdiocese priest abuse files

The files Elias ordered released are the final piece of a landmark 2007 settlement between the archdiocese and about 500 people who said clergy abused them. As part of that $660-million settlement, the archdiocese agreed to hand over the personnel files of accused abusers. Victims said the files would provide accountability for church leaders who let pedophiles remain in the ministry; law enforcement officials said the records would be important investigative tools.

But the release was delayed for years by appeals and the painstaking process of reading and redacting 89 files, some hundreds of pages long. A private mediator in 2011 ordered the church to black out the names of victims and archdiocese employees not accused of abuse, saying he wanted to avoid “guilt by association.”

Earlier this month, at the urging of the Los Angeles Times and the Associated Press, Elias ordered the names restored, saying the public had a right to know what Mahony and others in charge did about abuse. The church complained about the cost of restoring the redactions and suggested to the judge earlier this week that generic cover sheets for the files listing top officials and their dates of service should suffice.

After criticism from attorneys for the victims and the media, the church abandoned that plan and its lawyers said in court Thursday “anybody in a supervisory role” would be named in the documents. Elias’ order specified that the names of the archbishop, the vicar who handled clergy abuse, bishops and the heads of Catholic treatment centers for pedophiles be included.

Here is Gomez's full letter:

My brothers and sisters in Christ,

This week we are releasing the files of priests who sexually abused children while they were serving in the Archdiocese of Los Angeles.

These files document abuses that happened decades ago. But that does not make them less serious.

I find these files to be brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children. The priests involved had the duty to be their spiritual fathers and they failed.

We need to acknowledge that terrible failure today. We need to pray for everyone who has ever been hurt by members of the Church. And we need to continue to support the long and painful process of healing their wounds and restoring the trust that was broken.

I cannot undo the failings of the past that we find in these pages. Reading these files, reflecting on the wounds that were caused, has been the saddest experience I’ve had since becoming your Archbishop in 2011.

My predecessor, retired Cardinal Roger Mahony, has expressed his sorrow for his failure to fully protect young people entrusted to his care. Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties. Auxiliary Bishop Thomas Curry has also publicly apologized for his decisions while serving as Vicar for Clergy. I have accepted his request to be relieved of his responsibility as the Regional Bishop of Santa Barbara.

To every victim of child sexual abuse by a member of our Church: I want to help you in your healing. I am profoundly sorry for these sins against you.

To every Catholic in the Archdiocese of Los Angeles, I want you to know: We will continue, as we have for many years now, to immediately report every credible allegation of abuse to law enforcement authorities and to remove those credibly accused from ministry. We will continue to work, every day, to make sure that our children are safe and loved and cared for in our parishes, schools and in every ministry in the Archdiocese.

In the weeks ahead, I will address all of these matters in greater detail. Today is a time for prayer and reflection and deep compassion for the victims of child sexual abuse.

I entrust all of us and our children and families to the tender care and protection of our Blessed Mother Mary, Our Lady of Guadalupe and Our Lady of the Angels.

Sincerely yours in Christ,

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Photo: Cardinal Roger Mahony in the entrance processional for the Mass for the Reception of Coadjutor Archbishop of Los Angeles Jose Gomez. Credit: Don Bartletti / Los Angeles Times

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How a Boat-Plane Hybrid Shattered the Sound Barrier of Sailing

Seen from across Walvis Bay, the windswept patch of Atlantic Ocean known as Speed Spot is barely more than a sparkle of whitecaps against a long, low sandbar. As we get closer to what is one of the world’s most perfect speed-sailing areas, I scan the shore. It’s featureless save for two small shelters. We motor our zodiac toward the remote beach until we have to kill the outboard and tilt it up to spare the prop. The five of us jump overboard into the waist-deep water, following our guide, Paul Larsen, who is wading toward the shore. The wind howls in our faces, blowing so much sand that it runs down the beach in rivulets, like rain across a windshield. We climb up on the beach, jellyfish at our feet as thick as paving stones. “This is it. This is the Bonneville Salt Flats of speed sailing!” Larsen shouts, gesturing to the water just off the sandbar. The flying sand sticks to our teeth, turning the insides of our mouths to 600-grit with every word. “We’ll have to shovel out the timing hut,” Larsen says, peering into the primitive shelter he built years ago and pointing out animal tracks inside. “Jackal,” he concludes.

There is a shipping port on the far side of the bay, but over here the landscape is so desolate, so extreme, that we could be on an alien planet—Frank Herbert’s Arrakis, George Lucas’ Tatooine. In fact, we are in Namibia, a roughly Texas-sized country at the southwest corner of the African continent. Walvis Bay is one of the Atlantic’s great natural harbors, but it’s surrounded by emptiness: 31,000 square miles of desert. The dunes march right into the sea, setting up an elemental cycle that repeats itself nearly every day of the antipodal summer. Mornings break as clear and sunny as a Baywatch shoot, but in the afternoon, near-gale-force winds descend on the bay. The desert heat meeting the cool Benguela Current coming up from the Cape of Good Hope creates a powerful natural wind machine. It arrives like clockwork, steady and relentless. “No ruffles,” Larsen says, feeling the wind with his hand. The featureless landscape—no vegetation, no terrain, no fences, no buildings apart from the shelters—makes for perfectly organized air. “Attached flow,” he calls it, using the jargon of an aerodynamicist evaluating a successful wind-tunnel test.

Larsen is originally from Australia, but he searched the world for years to find this spot, a perfect natural runway to test a sailboat so radical that it is more at home in an airplane hangar than in any harbor—a futuristic craft that, if he can make it work, will not only capture the outright world speed-sailing record but also open up a new, no-limit era in sailing. “A hundred knots, maybe?” Larsen speculates from inside one of the huts, looking through a sandblasted window at the watery speed-sailing course just beyond the beach. The current record is just over 50.

Floating behind the zodiac is the boat that has brought Larsen to Speed Spot for the tenth time in as many years in pursuit of sailing’s speed record: the Vestas SailRocket Mark 2. Its aeronautical DNA is obvious at a glance. There’s a rigid carbon-fiber “wing” that functions as a sail, an ultra-streamlined 40-foot-long “fuselage,” and even something like landing gear—three pod-shaped floats that keep the wing and fuselage above the chop. Yet what looks at first glance like a water-striding sailplane is, on closer inspection, pure crazytown. For one thing, its wing is inclined at a 30-degree angle to the water and is nowhere near the fuselage. Instead, it’s mounted on the end of a 30-foot-long beam. The pole is, in a sense, an odd sort of mast—except that it runs horizontally. On the opposite side of the boat is a bladelike carbon-fiber fin. Technically this is the keel, or as Larsen calls it, the foil. SailRocket’s foil sprouts from the side of its fuselage, then turns to cut 3 feet down into the water. Critical to any sailboat, a keel keeps a boat from blowing over—or, in this case, from flying away.

“She’s 50 percent plane, 50 percent boat,” Larsen explains. Indeed, if SailRocket were dropped from a great height, it would glide down rather than fall. Larsen designed in aerodynamic stability as a safety measure. “If for some reason she lost the keel at speed,” Larsen explains, “than she really would be a plane, wouldn’t she?” The prototype version of SailRocket, Mark 1, actually did take off into the air, and Larsen survived what may be the most spectacular crash in sailing history.

It was 2008 and he was at Speed Spot putting the Mark 1 through its paces when a gust got under the boat and launched it clear into the sky. The half-plane/half-boat hit an altitude of between 40 and 50 feet while cartwheeling through a flip—before crash-landing upside down and backward. “It just kept going up and up,” Larsen said at the time, “then it hit bloody hard on my head.”

Larsen is confident enough about the stability of his revised design, the Mark 2, that he included a passenger cockpit behind the driver’s seat. It’s never held a passenger, however. “I haven’t installed the seat yet,” Larsen says, “but I’m going to have to test it out sooner or later …” He cocks an eyebrow in my direction. “Would that be good for your story?”

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Relativity Buys Into Jim Carrey Heist Comedy ”Loomis Fargo”

NEW YORK (TheWrap.com) – Relativity Media has acquired worldwide rights to the Jim Carrey heist comedy “Loomis Fargo,” which it will finance, produce and distribute, the studio announced on Thursday.

Jared Hess, who co-wrote and directed “Napoleon Dynamite,” will direct the movie from a script by Emily Spivey that also counts Chris Bowman and Hubbel Palmer as writers. Inspired by true events, it tells the story of four Southerners who stole nearly $ 20 million from an armed Loomis Fargo truck in 1997.

“Saturday Night Live” creator Lorne Michaels and John Goldwyn are producing the movie while Danny McBride, Jody Hill, Michael Aguilar, Kevin Messick are executive producing with Relativity CEO Ryan Kavanaugh and president Tucker Tooley.

Brett Dahl will oversee the project for Relativity, which is aiming for an April start to production.

Carrey can next be seen in “The Incredible Burt Wonderstone,” which will premiere at South by Southwest before it theatrical release. Relativity just acquired Joseph Gordon-Levitt’s directorial debut “Don Jon’s Addiction” at Sundance and will next release the romantic thriller “Save Haven.”

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Insurance Industry Report Faults High Fees for Out-of-Network Care

Michael Nagle for The New York Times

Angel Gonzalez, 36, faced huge bills after emergency gallbladder surgery, despite having good insurance coverage. “I was on the hook for more than I made in a year.”

Just over a year ago, Angel Gonzalez, 36, awoke with searing chest pain at 2 a.m. A friend drove him to the closest emergency room.

Though he was living on $18,000 a year as a graduate student, Mr. Gonzalez had good insurance and the hospital, St. Charles in Port Jefferson, N.Y., was in his network. But the surgeon who came in to remove Mr. Gonzalez’s gallbladder that Sunday night was not.

He billed Mr. Gonzalez $30,000, and an assistant billed an additional $30,000. Mr. Gonzalez’s policy covered out-of-network providers, but at a rate it considered appropriate: $2,000. “I was on the hook for more than I made in a year,” Mr. Gonzalez said.

A health insurance industry report to be released on Friday highlights the exorbitant fees charged by some doctors to out-of-network patients like Mr. Gonzalez. The report, by America’s Health Insurance Plans, or AHIP, contrasts some of the highest bills charged by non-network providers in 30 states with Medicare rates for the same services. Some of the charges, the insurers assert, are 30, 40 or nearly 100 times greater than Medicare rates.

Insurers hope to spotlight a vexing problem that they say the Affordable Care Act does little to address. “When you’re out of network, it’s a blank check,” said Karen Ignagni, president and chief executive of AHIP. “The consumer is vulnerable to ‘anything goes.’ ”

“Unless we deal with cost, we won’t have affordability,” she added. “And unless we have affordability, we won’t have people participating” under the Affordable Care Act.

Among the fees on the report’s list are a $6,205 outpatient office visit to a doctor in Massachusetts for which Medicare would have paid $152; a $12,000 bill for examining a tissue specimen in New York for which Medicare would have paid $128; and a $48,983 surgeon’s fee for a total hip replacement in New Jersey that Medicare would have reimbursed at $1,543. Many of the highest billers were in New York, Texas, Florida and New Jersey.

Elisabeth R. Benjamin, co-founder of the Health Care for All New York coalition, who is often at odds with the insurance industry, said that “is one area we totally agree on.” She continued, “Out-of-network billing is just out of control.”

Even when out-of-network fees are compared with average commercial insurance reimbursements, which are usually greater than Medicare, she said, “It’s pretty outrageous.”

Doctors say the report is skewed because it focuses on a few dozen cases of overcharging that are not representative of their billing. In response to the insurers’ report, the American Medical Association noted on Thursday that a recent analysis found that doctors’ services account for just 16 percent of health care costs.

“There are outliers in every profession, in every business,” said Dr. Andrew Y. Kleinman, a plastic surgeon who is vice president of the Medical Society of the State of New York.

Dr. Kleinman also noted that insurers had effectively shifted the costs of out-of-network care onto patients by changing reimbursement formulas. Instead of the rates commercial insurers usually pay doctors, insurers increasingly are basing their out-of-network payments on Medicare rates, usually far lower.

A growing number of high-end, flexible health plans offer policies that cover outside providers at, for example, 140 percent of Medicare. “They’re selling you an insurance product you can’t use,” Dr. Kleinman said. “You’re buying an insurance policy where the out-of-network benefit is worthless.”

The industry’s own report suggests that using Medicare rates as a benchmark will lead to patients’ picking up much more of the cost for out-of-network care, whether they carefully select a specialist or, as in the case of Mr. Gonzalez and many others, have no choice in the matter.

Had Mr. Gonzalez been 65 or older, Medicare would have paid only $958 for the surgery. The average commercial price is $12,292, according to FAIR Health, an independent nonprofit group that tracks information on health care costs.

But Mr. Gonzalez’s health plan, United Healthcare, determined the fee should be $1,273, of which the company paid $838. Mr. Gonzalez filed appeals, which were rejected. He then contacted Community Health Advocates at the Community Service Society of New York for help, and the group’s caseworkers negotiated with the surgeon on his behalf.

After months of wrangling, the surgeon agreed to accept a significantly reduced payment: $340.

Consumer advocates and health insurance executives are calling for greater transparency in health care pricing, including upfront disclosure of prices of medical procedures and services.

“The health care industry can give you an estimate, just like any other industry,” said Carrie H. Colla, an assistant professor at the Dartmouth Institute for Health Policy and Clinical Practice, noting that the Dartmouth-Hitchcock Medical Center has a patient price estimator online.  

“It’s just not current practice right now,” Dr. Colla said. “Sometimes a doctor won’t even know. The patient really has to push for it.”

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