DealBook: SAC Clients Said to Seek $1.7 Billion in Refunds

Clients of SAC Capital Advisors have asked to withdraw $1.7 billion from the giant hedge fund as the government’s insider trading investigation intensifies, according to people briefed on the matter.

That amount represents slightly more than a quarter of the $6 billion that the fund manages for clients, and underscores the reputational damage to SAC from a spate of criminal cases tied to former employees of the firm.

Investors had to inform SAC by Thursday — a regularly scheduled quarterly withdrawal deadline at the fund — whether they wanted their money back.

While the outflows are a blow to SAC and its owner, the billionaire investor Steven A. Cohen, they are expected to have little impact on the fund’s business. More than half of SAC’s assets under management, which stood at $15 billion as of mid-January, belong to Mr. Cohen and his employees.

SAC also has stringent rules in place that prohibit clients from withdrawing all their money at once. Under its so-called redemption terms, the fund will pay out about $660 million at the end of next month to investors who have made withdrawal requests and return the balance of the $1.7 billion in quarterly installments through year-end.

“As we have been saying, the redemptions will have no significant impact on our funds,” said Jonathan Gasthalter, a spokesman for SAC, which is based in Stamford, Conn., and has more than 1,000 employees.

Still, the departure of clients is a rare setback for a firm that has one of the best investment track records in the industry, with average annual returns of about 30 percent over the last two decades. Hedge fund customers have long clamored to put their money with Mr. Cohen, whose trading acumen is legend on Wall Street.

But for certain clients, the government’s investigation into insider trading at the fund raised questions about SAC and whether keeping money there was worth the reputational risk. Among the clients that have severed ties with SAC are a Citigroup unit that manages money for wealthy families and Lyxor Asset Management, a division of the French bank Société Générale.

Some SAC investors have grown concerned over the future of the fund as its legal problems have escalated. At least eight current or former SAC employees have been tied to allegations of insider trading while working there, four of whom have pleaded guilty.

In the latest case, filed in late November, the government brought charges against Mathew Martoma, a former SAC portfolio manager, in a case that prosecutors are calling the most lucrative insider trading scheme ever uncovered. Mr. Martoma has pleaded not guilty.

The trades at the center of the case involve Mr. Cohen, who has not been charged. Federal securities regulators have advised SAC that they may file a civil fraud action against the firm related to the Martoma trades.

Some SAC clients have taken a cautious approach, keeping their money with the fund while monitoring the government’s case. The Blackstone Group, SAC’s largest outside investor, took this route, saying it would keep its $550 million investment with the fund while it tracks developments.

SAC risked losing Blackstone as a client, but assuaged the influential firm’s concerns by loosening the terms of its redemption policy. Earlier this week, the hedge fund notified Blackstone and other clients that they could wait another three months to make a withdrawal request, yet still be able to get all their money back in 2013. Under SAC’s original rules, investors would have had to redeem this week to get their last dollar out by the end of the year.

“We will use this period of time to evaluate all additional information which becomes available,” said a Blackstone spokesman.

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Oscar Pistorius remains in jail facing murder charge









JOHANNESBURG, South Africa -- South African athlete Oscar Pistorius, who made history last year as the first double amputee runner to compete in the Olympics using prosthetic blades, will spend the night in jail Thursday after he was charged with murder in the death of his girlfriend at his house, prosecutors said.


The National Prosecuting Authority said Pistorius would remain in custody until his hearing Friday, when police intend to oppose bail.


Reeva Steenkamp, a 30-year-old model, died after being shot several times in the head and arm in Pistorius’ house in an upscale suburb in Pretoria.








PHOTOS: Pistorius in the London Olympics


Pistorius was ushered from the home by police Thursday morning with a gray hoodie covering his head and obscuring most of his face.


South Africans were in shock about the accusation against Pistorius, who became a hero during his long battle for the right to compete in the Olympics. After a controversy on whether the blades he uses to walk and run gave him an advantage in races, Pistorius was granted the right to compete in the London 2012 Olympic Games.


South Africa has one of the world's highest rates of murder and violent crime, and many South Africans keep guns at home to guard against intruders.


The Afrikaans-language newspaper Beeld suggested that Pistorius mistook his girlfriend for a burglar and killed her accidentally.


However, a police spokeswoman, Brig. Denise Beukes, said police were “surprised” at reports the killing was accidental, adding that that version hadn’t come from police, according to the South African Press Assn.


"I confirm there had been previous incidents of a domestic nature at his place,” said Beukes, adding that police couldn’t comment on the decision to oppose bail.


Beukes said police had interviewed neighbors who heard sounds at Pistorius’ home earlier in the evening, and also at the time the incident reportedly took place.


Pistorius’ father, Henke Pistorius, said his son was sad. But the older Pistorius said he didn’t know the facts.


“I don’t know nothing. It will be extremely obnoxious and rude to speculate,” he said in a radio interview. “If anyone makes a statement, it will have to be Oscar.”


An advertisement for Nike, one of Pistorius’ major sponsors, was removed from his official website Thursday. It had shown the athlete in a green lycra athletic suit and the slogan, “I am the bullet in the chamber."


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Six arrested in Acapulco rape case


Iranian general reportedly assassinated while traveling from Syria


British case of new virus suggests person-to-person transmission





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”Downton Abbey” star Maggie Smith never watches TV show






LOS ANGELES (Reuters) – Maggie Smith‘s sarcastic dowager Countess may be the star of British period drama “Downton Abbey,” but the award-winning actress says she has never watched the TV series.


Smith, 78, who has won two Emmy Awards and a Golden Globe for her role as the acid-tongued Lady Grantham, tells CBS in an upcoming TV interview that she is amazed by the popularity of the show both in Britain and the United States.






Asked whether she is proud of “Downton Abbey”, Smith said, “I haven’t actually seen it. So I don’t, I don’t sit down and watch it,” she told CBS reporter Steve Kroft in the interview to be broadcast on Sunday.


“Never?” Kroft asked. “No, I haven’t watched it,” Smith replied, according to an advance excerpt released on Thursday.


Smith, known as a perfectionist, said that watching herself would make her worry about her performance. “It’s frustrating. I always see things that I would like to do differently and think, ‘Oh, why in the name of God did I do that?’”


“Downton Abbey,” a drama about the lives of aristocratic Britons and their servants in the early 20th century, attracted some 7.9 million viewers for its third season premiere in January on U.S. television.


Smith’s snobbish Lady Grantham and her withering remarks like “No-one wants to kiss a girl in black,” and “What is a weekend?”, have made her the show’s biggest star.


Smith also has two Oscars for her roles in 1969 film “The Prime of Miss Jean Brodie” and 1978 comedy “California Suite” but she said she had no interest in her recent fame. The actress is a rare face at Hollywood award ceremonies.


“I don’t feel any different to the way I felt before and I’m not quite sure what (being a star) means. I am familiar to people now, which is what I was not before,” she told Kroft. “That is entirely due to the television set.”


Smith also acknowledged her reputation as an actress who doesn’t suffer fools gladly.


“Old people are scary and I have to face it, I am old and I am scary and I am very sorry about it, but I don’t know what you do,” she quipped.


The full interview can be seen on “60 Minutes” on February 17 on CBS television.


(Reporting By Jill Serjeant; Editing by David Brunnstrom)


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Doctor and Patient: Afraid to Speak Up to Medical Power

The slender, weather-beaten, elderly Polish immigrant had been diagnosed with lung cancer nearly a year earlier and was receiving chemotherapy as part of a clinical trial. I was a surgical consultant, called in to help control the fluid that kept accumulating in his lungs.

During one visit, he motioned for me to come closer. His voice was hoarse from a tumor that spread, and the constant hissing from his humidified oxygen mask meant I had to press my face nearly against his to understand his words.

“This is getting harder, doctor,” he rasped. “I’m not sure I’m up to anymore chemo.”

I was not the only doctor that he confided to. But what I quickly learned was that none of us was eager to broach the topic of stopping treatment with his primary cancer doctor.

That doctor was a rising superstar in the world of oncology, a brilliant physician-researcher who had helped discover treatments for other cancers and who had been recruited to lead our hospital’s then lackluster cancer center. Within a few months of the doctor’s arrival, the once sleepy department began offering a dazzling array of experimental drugs. Calls came in from outside doctors eager to send their patients in for treatment, and every patient who was seen was promptly enrolled in one of more than a dozen well-documented treatment protocols.

But now, no doctors felt comfortable suggesting anything but the most cutting-edge, aggressive treatments.

Even the No. 2 doctor in the cancer center, Robin to the chief’s cancer-battling Batman, was momentarily taken aback when I suggested we reconsider the patient’s chemotherapy plan. “I don’t want to tell him,” he said, eyes widening. He reeled off his chief’s vast accomplishments. “I mean, who am I to tell him what to do?”

We stood for a moment in silence before he pointed his index finger at me. “You tell him,” he said with a smile. “You tell him to consider stopping treatment.”

Memories of this conversation came flooding back last week when I read an essay on the problems posed by hierarchies within the medical profession.

For several decades, medical educators and sociologists have documented the existence of hierarchies and an intense awareness of rank among doctors. The bulk of studies have focused on medical education, a process often likened to military and religious training, with elder patriarchs imposing the hair shirt of shame on acolytes unable to incorporate a profession’s accepted values and behaviors. Aspiring doctors quickly learn whose opinions, experiences and voices count, and it is rarely their own. Ask a group of interns who’ve been on the wards for but a week, and they will quickly raise their hands up to the level of their heads to indicate their teachers’ status and importance, then lower them toward their feet to demonstrate their own.

It turns out that this keen awareness of ranking is not limited to students and interns. Other research has shown that fully trained physicians are acutely aware of a tacit professional hierarchy based on specialties, like primary care versus neurosurgery, or even on diseases different specialists might treat, like hemorrhoids and constipation versus heart attacks and certain cancers.

But while such professional preoccupation with privilege can make for interesting sociological fodder, the real issue, warns the author of a courageous essay published recently in The New England Journal of Medicine, is that such an overly developed sense of hierarchy comes at an unacceptable price: good patient care.

Dr. Ranjana Srivastava, a medical oncologist at the Monash Medical Centre in Melbourne, Australia, recalls a patient she helped to care for who died after an operation. Before the surgery, Dr. Srivastava had been hesitant to voice her concerns, assuming that the patient’s surgeon must be “unequivocally right, unassailable, or simply not worth antagonizing.” When she confesses her earlier uncertainty to the surgeon after the patient’s death, Dr. Srivastava learns that the surgeon had been just as loath to question her expertise and had assumed that her silence before the surgery meant she agreed with his plan to operate.

“Each of us was trying our best to help a patient, but we were also respecting the boundaries and hierarchy imposed by our professional culture,” Dr. Srivastava said. “The tragedy was that the patient died, when speaking up would have made all the difference.”

Compounding the problem is an increasing sense of self-doubt among many doctors. With rapid advances in treatment, there is often no single correct “answer” for a patient’s problem, and doctors, struggling to stay up-to-date in their own particular specialty niches, are more tentative about making suggestions that cross over to other doctors’ “turf.” Even as some clinicians attempt to compensate by organizing multidisciplinary meetings, inviting doctors from all specialties to discuss a patient’s therapeutic options, “there will inevitably be a hierarchy at those meetings of who is speaking,” Dr. Srivastava noted. “And it won’t always be the ones who know the most about the patient who will be taking the lead.”

It is the potentially disastrous repercussions for patients that make this overly developed awareness of rank and boundaries a critical issue in medicine. Recent efforts to raise safety standards and improve patient care have shown that teams are a critical ingredient for success. But simply organizing multidisciplinary lineups of clinicians isn’t enough. What is required are teams that recognize the importance of all voices and encourage active and open debate.

Since their patient’s death, Dr. Srivastava and the surgeon have worked together to discuss patient cases, articulate questions and describe their own uncertainties to each other and in patients’ notes. “We have tried to remain cognizant of the fact that we are susceptible to thinking about hierarchy,” Dr. Srivastava said. “We have tried to remember that sometimes, despite our best intentions, we do not speak up for our patients because we are fearful of the consequences.”

That was certainly true for my lung cancer patient. Like all the other doctors involved in his care, I hesitated to talk to the chief medical oncologist. I questioned my own credentials, my lack of expertise in this particular area of oncology and even my own clinical judgment. When the patient appeared to fare better, requiring less oxygen and joking and laughing more than I had ever seen in the past, I took his improvement to be yet another sign that my attempt to talk about holding back chemotherapy was surely some surgical folly.

But a couple of days later, the humidified oxygen mask came back on. And not long after that, the patient again asked for me to come close.

This time he said: “I’m tired. I want to stop the chemo.”

Just before he died, a little over a week later, he was off all treatment except for what might make him comfortable. He thanked me and the other doctors for our care, but really, we should have thanked him and apologized. Because he had pushed us out of our comfortable, well-delineated professional zones. He had prodded us to talk to one another. And he showed us how to work as a team in order to do, at last, what we should have done weeks earlier.

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A Tiffany at Costco? Not Now, or Ever, Tiffany Lawsuit Says





The discount warehouse chain Costco got something from Tiffany for Valentine’s Day: a lawsuit claiming it had sold diamond engagement rings falsely marketed in stores using the jeweler’s name.




The lawsuit, filed on Thursday in Federal District Court in Manhattan, says a shopper complained to Tiffany late last year “that she was disappointed to observe that Costco was offering for sale what were promoted on in-store signs as Tiffany diamond engagement rings.”


In an investigation, the lawsuit says, Tiffany found that Costco salespeople referred to the rings as Tiffany, but that the rings were not promoted as such online. The suit says, “Tiffany has never sold nor would it ever sell its fine jewelry through an off-price warehouse retailer like Costco.”


As a result, the suit says, there are “hundreds if not thousands of people who mistakenly believe they purchased and own a Tiffany engagement ring from Costco.”


Costco said it had no comment.


The lawsuit says Costco stopped marketing Tiffany rings after the jeweler approached it last year.


Tiffany asked for all profits made from selling the rings, and for damages that take into account the value of the Tiffany brand in bolstering Costco’s business and gilding a move by the retailer to sell discounted luxury goods.


Luxury brands often sue to preserve their stature and prevent imitations. Previously, Costco took a fight with the Swatch Group over the right to sell Omega watches as far as the United States Supreme Court.


On Thursday, watches by Breitling, Cartier and Chanel were on sale for as much as $15,000 on Costco’s Web site. An engagement ring in the “Audrey” collection — Costco’s advertising makes no mention of any connection to Audrey Hepburn, the star of the film “Breakfast at Tiffany’s” — was priced at more than $60,000.


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Dorner manhunt: Investigators work to ID charred human remains









After what LAPD Chief Charlie Beck called "a bittersweet night," investigators Wednesday were in the process of identifying the human remains found in the charred cabin where fugitive ex-cop Christopher Dorner was believed to have been holed up after trading gunfire with officers, authorities said.


If the body is identified as Dorner’s, the standoff would end a weeklong manhunt for the ex-LAPD officer and Navy Reserve lieutenant suspected in a string of shootings following his firing by the Los Angeles Police Department several years ago. Four people have died in the case, allegedly at Dorner’s hands.


Beck said he would not consider the manhunt over until the body was identified as Dorner. Police remained on tactical alert and were conducting themselves as if nothing had changed in the case, officials said.








PHOTOS: Manhunt for ex-LAPD officer


The latest burst of gunfire came Tuesday after the suspect, attempting to flee law enforcement officials, fatally shot a San Bernardino County sheriff’s deputy and seriously injured another, officials said. He then barricaded himself in a wooden cabin outside Big Bear, not far from ski resorts in the snow-capped San Bernardino Mountains east of Los Angeles, according to police.


"This could have ended much better, it could have ended worse," said Beck as he drove to the hospital where the injured deputy was located. "I feel for the family of the deputy who lost his life."


The injured deputy is expected to survive but it is anticipated he will need several surgeries. The names of the two deputies have not been released.


TIMELINE: Manhunt for ex-LAPD officer


Just before 5 p.m., authorities smashed the cabin's windows, pumped in tear gas and called for the suspect to surrender, officials said. They got no response. Then, using a demolition vehicle, they tore down the cabin's walls one by one. When they reached the last wall, they heard a gunshot. Then the cabin burst into flames, officials said.


Last week, authorities said they had tracked Dorner to a wooded area near Big Bear Lake. They found his torched gray Nissan Titan with several weapons inside, the said, and the only trace of Dorner was a short trail of footprints in newly fallen snow.


According to a manifesto that officials say Dorner posted on Facebook, he felt the LAPD unjustly fired him several years ago, when a disciplinary panel determined that he lied in accusing his training officer of kicking a mentally ill man during an arrest. Beck has promised to review the case.

DOCUMENT: Read the manifesto


The manifesto vows "unconventional and asymmetrical warfare" against law enforcement officers and their families. "Self-preservation is no longer important to me. I do not fear death as I died long ago," it said.


On Tuesday morning, two maids entered a cabin in the 1200 block of Club View Drive and ran into a man who they said resembled the fugitive, a law enforcement official said. The cabin was not far from where Dorner's singed truck had been found and where police had been holding news conferences about the manhunt.


The man tied up the maids, and he took off in a purple Nissan parked near the cabin, the official said. About 12:20 p.m., one of the maids broke free and called police.


FULL COVERAGE: Sweeping manhunt for ex-cop


Nearly half an hour later, officers with the California Department of Fish and Wildlife spotted the stolen vehicle and called for backup, authorities said. The suspect turned down a side road in an attempt to elude the officers but crashed the vehicle, police said.


A short time later, authorities said, the suspect carjacked a light-colored pickup truck. Allan Laframboise said the truck belonged to his friend Rick Heltebrake, who works at a nearby Boy Scout camp.


Heltebrake was driving on Glass Road with his Dalmatian, Suni, when a hulking African American man stepped into the road, Laframboise said. Heltebrake stopped. The man told him to get out of the truck.


INTERACTIVE MAP: Searching for suspected shooter


"Can I take my dog?" Heltebrake asked, according to his friend.





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Kevin Spacey, Eva Longoria find starring roles online






(Reuters) – “Desperate Housewives” alum Eva Longoria‘s new project won’t bring her back to ABC, or any traditional U.S. television network. The actress will produce and lend her voice to “Mother Up!,” a 13-episode adult animated comedy available in the U.S. this fall only on the online video site Hulu.


Longoria, Kevin Spacey, John Goodman and other top Hollywood actors are being wooed by the growing number of Silicon Valley companies rushing to get a foothold in consumers’ living rooms with exclusive shows that feature big names and hefty budgets.






As video streaming technology makes watching videos on laptops and mobile devices as easy as flicking on a TV set, Amazon.com Inc, Google Inc’s YouTube, Yahoo and Microsoft Corp are setting up shop in Hollywood to produce or license their own series.


Their models are pay TV channels like HBO and Showtime that built their subscriber rolls by creating shows like HBO‘s “Sopranos” or Showtime’s “Homeland” that a TV viewer couldn’t get anywhere else.


“Content creators think they’ve hit the lottery,” said Bernard Gershon, head of digital consultancy Gershon Media and a former Walt Disney Co executive. “Those companies are throwing a lot of dollars for content they can use to create a following.”


With 33 million global subscribers to its streaming service, Netflix can afford to plunk down what analysts estimate was up to $ 100 million for the rights to “House of Cards,” a slickly produced political drama starring two-time Oscar winner Spacey and produced by “The Social Network” film director David Fincher.


Upcoming only-on-Netflix series include the revival of one-time Fox comedy “Arrested Development” starring Will Arnett, and murder mystery “Hemlock Grove,” directed by horror movie producer Eli Roth.


On Tuesday, the Los Gatos, California-based company announced the December release of its first original children’s series, a show based on DreamWorks Animation’s coming summer movie “Turbo” about a fast-moving snail.


The companies have different business models — Amazon, Netflix and Microsoft have subscription services, YouTube sells advertising, while Intel Corp and Apple Inc may introduce cable-like services that offer channels online.


But they all sense an opening as consumers increasingly chafe at their mounting cable and satellite TV bills. A small, but increasing, number are starting to “cut the cord,” or drop their service, say analysts.


“We may be sowing the seeds of our own destruction,” Charlie Ergen, chairman of satellite operator Dish Network Corp, said at the AllThingsD “Dive into Media” conference on February 12. “A lot of people can live with Netflix and be perfectly happy.”


Netflix has won fans in Hollywood by giving writers and directors a “high level of autonomy as well as an increasingly global distribution platform,” Morgan Stanley analyst Scott Devitt said in a note to clients.


“There is plenty of room for multiple producers and licensors of original content,” Devitt added.


Amazon.com’s Prime subscription, which combines a video streaming service with free shipping for products it sells online, stepped up its Hollywood dealmaking in the last month with pacts to be the exclusive online home for popular PBS drama “Downton Abbey” and upcoming CBS show “Under the Dome,” a series based on a Stephen King novel.


The Seattle-based company, seen by some analysts as Netflix‘s biggest threat, said last month it plans to air 11 original pilot episodes before deciding which to produce as ongoing series.


One of the pilots, “Alpha House,” follows four senators who live together in a rented house. “Roseanne” and “Argo” actor John Goodman will star, according to a person close to the situation.


Overall, Amazon Studios has 48 movie and TV shows in development, an Amazon spokeswoman said.


Hulu, owned by media giants Disney, News Corp and Comcast Corp’s NBCUniversal, is beefing up its own original and exclusive content for its free, ad-supported service and its monthly subscription plan. Hulu already has distributed than two dozen exclusive or original shows, including Morgan Spurlock documentary series “A Day in the Life.”


Upcoming Hulu programs include Longoria’s “Mother Up!” about a former music executive navigating life as a suburban mom.


Microsoft, which offers services such as Netflix on its XBox video game console, intends to produce its own content later this year for its 40 million subscribers, said Nancy Tellem, a former CBS entertainment president who joined Microsoft last year to run its fledging Hollywood production studio.


“We’re not as constrained as other content creators,” Tellem said at the AllThingsD conference. “We can produce something that’s 10 minutes or an hour.”


The XBox’s benefit, Tellem said, is its interactivity. To generate added revenue, the service can sell tickets to concerts by stars of its comedies, or copies of the clothes worn by stars on red carpet events.


Deep-pocketed Apple Inc could also step into the entertainment production game. Industry insiders continue to believe that Apple intends to unveil a TV-based device that has the potential to shake up the television content and distribution industry the way the iPod and iPhone disrupted music and mobile content.


Sources say Apple, which already sells a $ 99 set top box called Apple TV that streams Netflix and other content, has opened discussions with providers, though its progress with the cozy club of Hollywood producers and distributors is unknown.


Chip maker Intel plans to launch an Internet television service this year with live and on-demand content, said Erik Huggers, vice president and general manager of Intel Media, who said he is negotiating with content providers.


The Silicon Valley newcomers may be taking aim at siphoning off cable subscribers, but executives at Time Warner’s HBO premium service, don’t seem particularly worried.


Hulu and Amazon will be just another 200 hours on top of the 145,000 hours that are already available to the consumer,” said HBO president Eric Kessler. “What matters is that our content is exclusive. If you want ‘Game of Thrones,’ there is only one place you can get it.”


(Reporting By Ronald Grover and Lisa Richwine in Los Angeles and Alistair Barr in San Francisco; Editing by M.D. Golan)


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Well: Straining to Hear and Fend Off Dementia

At a party the other night, a fund-raiser for a literary magazine, I found myself in conversation with a well-known author whose work I greatly admire. I use the term “conversation” loosely. I couldn’t hear a word he said. But worse, the effort I was making to hear was using up so much brain power that I completely forgot the titles of his books.

A senior moment? Maybe. (I’m 65.) But for me, it’s complicated by the fact that I have severe hearing loss, only somewhat eased by a hearing aid and cochlear implant.

Dr. Frank Lin, an otolaryngologist and epidemiologist at Johns Hopkins School of Medicine, describes this phenomenon as “cognitive load.” Cognitive overload is the way it feels. Essentially, the brain is so preoccupied with translating the sounds into words that it seems to have no processing power left to search through the storerooms of memory for a response.


Katherine Bouton speaks about her own experience with hearing loss.


A transcript of this interview can be found here.


Over the past few years, Dr. Lin has delivered unwelcome news to those of us with hearing loss. His work looks “at the interface of hearing loss, gerontology and public health,” as he writes on his Web site. The most significant issue is the relation between hearing loss and dementia.

In a 2011 paper in The Archives of Neurology, Dr. Lin and colleagues found a strong association between the two. The researchers looked at 639 subjects, ranging in age at the beginning of the study from 36 to 90 (with the majority between 60 and 80). The subjects were part of the Baltimore Longitudinal Study of Aging. None had cognitive impairment at the beginning of the study, which followed subjects for 18 years; some had hearing loss.

“Compared to individuals with normal hearing, those individuals with a mild, moderate, and severe hearing loss, respectively, had a 2-, 3- and 5-fold increased risk of developing dementia over the course of the study,” Dr. Lin wrote in an e-mail summarizing the results. The worse the hearing loss, the greater the risk of developing dementia. The correlation remained true even when age, diabetes and hypertension — other conditions associated with dementia — were ruled out.

In an interview, Dr. Lin discussed some possible explanations for the association. The first is social isolation, which may come with hearing loss, a known risk factor for dementia. Another possibility is cognitive load, and a third is some pathological process that causes both hearing loss and dementia.

In a study last month, Dr. Lin and colleagues looked at 1,984 older adults beginning in 1997-8, again using a well-established database. Their findings reinforced those of the 2011 study, but also found that those with hearing loss had a “30 to 40 percent faster rate of loss of thinking and memory abilities” over a six-year period compared with people with normal hearing. Again, the worse the hearing loss, the worse the rate of cognitive decline.

Both studies also found, somewhat surprisingly, that hearing aids were “not significantly associated with lower risk” for cognitive impairment. But self-reporting of hearing-aid use is unreliable, and Dr. Lin’s next study will focus specifically on the way hearing aids are used: for how long, how frequently, how well they have been fitted, what kind of counseling the user received, what other technologies they used to supplement hearing-aid use.

What about the notion of a common pathological process? In a recent paper in the journal Neurology, John Gallacher and colleagues at Cardiff University suggested the possibility of a genetic or environmental factor that could be causing both hearing loss and dementia — and perhaps not in that order. In a phenomenon called reverse causation, a degenerative pathology that leads to early dementia might prove to be a cause of hearing loss.

The work of John T. Cacioppo, director of the Social Neuroscience Laboratory at the University of Chicago, also offers a clue to a pathological link. His multidisciplinary studies on isolation have shown that perceived isolation, or loneliness, is “a more important predictor of a variety of adverse health outcomes than is objective social isolation.” Those with hearing loss, who may sit through a dinner party and not hear a word, frequently experience perceived isolation.

Other research, including the Framingham Heart Study, has found an association between hearing loss and another unexpected condition: cardiovascular disease. Again, the evidence suggests a common pathological cause. Dr. David R. Friedland, a professor of otolaryngology at the Medical College of Wisconsin in Milwaukee, hypothesized in a 2009 paper delivered at a conference that low-frequency loss could be an early indication that a patient has vascular problems: the inner ear is “so sensitive to blood flow” that any vascular abnormalities “could be noted earlier here than in other parts of the body.”

A common pathological cause might help explain why hearing aids do not seem to reduce the risk of dementia. But those of us with hearing loss hope that is not the case; common sense suggests that if you don’t have to work so hard to hear, you have greater cognitive power to listen and understand — and remember. And the sense of perceived isolation, another risk for dementia, is reduced.

A critical factor may be the way hearing aids are used. A user must practice to maximize their effectiveness and they may need reprogramming by an audiologist. Additional assistive technologies like looping and FM systems may also be required. And people with progressive hearing loss may need new aids every few years.

Increasingly, people buy hearing aids online or from big-box stores like Costco, making it hard for the user to follow up. In the first year I had hearing aids, I saw my audiologist initially every two weeks for reprocessing and then every three months.

In one study, Dr. Lin and his colleague Wade Chien found that only one in seven adults who could benefit from hearing aids used them. One deterrent is cost ($2,000 to $6,000 per ear), seldom covered by insurance. Another is the stigma of old age.

Hearing loss is a natural part of aging. But for most people with hearing loss, according to the National Institute on Deafness and Other Communication Disorders, the condition begins long before they get old. Almost two-thirds of men with hearing loss began to lose their hearing before age 44. My hearing loss began when I was 30.

Forty-eight million Americans suffer from some degree of hearing loss. If it can be proved in a clinical trial that hearing aids help delay or offset dementia, the benefits would be immeasurable.

“Could we do something to reduce cognitive decline and delay the onset of dementia?” he asked. “It’s hugely important, because by 2050, 1 in 30 Americans will have dementia.

“If we could delay the onset by even one year, the prevalence of dementia drops by 15 percent down the road. You’re talking about billions of dollars in health care savings.”

Should studies establish definitively that correcting hearing loss decreases the potential for early-onset dementia, we might finally overcome the stigma of hearing loss. Get your hearing tested, get it corrected, and enjoy a longer cognitively active life. Establishing the dangers of uncorrected hearing might even convince private insurers and Medicare that covering the cost of hearing aids is a small price to pay to offset the cost of dementia.


Katherine Bouton is the author of the new book, “Shouting Won’t Help: Why I — and 50 Million Other Americans — Can’t Hear You,” from which this essay is adapted.


This post has been revised to reflect the following correction:

Correction: February 14, 2013

An article on Tuesday about hearing loss and dementia misidentified the city in which the Medical College of Wisconsin is located. It is in Milwaukee, not in Madison.

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Media Decoder Blog: Time Warner Considers Spinning Off Some of Its Magazines

9:15 p.m. | Updated

Time Warner is in talks to shed much of Time Inc., the country’s largest magazine publisher and the foundation on which the $49 billion media conglomerate was built, according to people involved in the negotiations.

Time Warner is in early discussions with the Meredith Corporation to put most of Time Inc.’s magazines — including People, InStyle and Real Simple — into a separate, publicly traded company that would also include Meredith titles like Better Homes and Gardens and Ladies’ Home Journal.

The new company would then borrow money to pay a one-time dividend back to Time Warner, essentially turning what appears to be a corporate spinoff into a sale. The figure being discussed is $1.75 billion, according to the people involved in the negotiations, who requested anonymity to discuss private conversations publicly.

The deal under consideration is one of several options Time Warner is exploring to reduce its troubled publishing unit. As part of the agreement, existing shareholders in Time Warner and Meredith would receive stakes in the new venture. That venture would be primarily a women’s magazine company, expanding on Meredith’s stable of lifestyle publications with strong female readership, especially in the Midwestern United States.

Time Warner would continue to control the news-based magazines Time, Fortune and Sports Illustrated, along with Money magazine. Another person involved in the negotiations said Meredith did not want those magazines — including the standard-bearer Time, which is expensive to operate and reported a 23.2 percent decline in newsstand sales in the second half of 2012 — to be part of the deal.

Spokesmen for Time Warner and Meredith declined to comment. The new company would allow both Meredith and Time Warner to insulate their other assets from the troubled magazine business. It would also give Time Warner the benefit of a large payday in the form of a dividend without having to resort to an outright sale, which could have much harsher tax implications.

Like Time Inc., Meredith has a long and lucrative history in the women’s magazine market, and both companies have emphasized consumer marketing, wringing value from their subscriber lists at every turn.

But in other ways, the joining of the two would involve some remarkable adjustments. The Time & Life Building, a “Mad Men”-era skyscraper in the middle of Midtown, has long been a symbol of Manhattan publishing. Meredith’s roots date to 1902 and the creation of Successful Farming magazine. It owns some of the country’s largest-circulation women’s magazines, but maintains popular, folksy titles like Country Life and the carpentry magazine Wood.

It is unclear whether the new company would move some former Time Inc. employees to Des Moines, where Meredith is based.

The talks come days after Time Inc. said it would lay off 6 percent of its 8,000 employees. Its overall revenue has declined roughly 30 percent in the last five years.

In recent years, Time Warner has tried to trim assets unrelated to the television and movie production business. It has divested itself of AOL, Time Warner Cable, the Warner Music Group and the Time Warner Book Group.

Jeffrey L. Bewkes, chief executive of Time Warner, has previously denied reports that he would sell or spin off Time Inc. He frequently talks about the division’s strongest brands as, essentially, cable channels, and he has mandated that Time Inc. make its magazines available on digital devices.

“They’re printing pages right now, but they’re also on electronic screens with moving pictures,” Mr. Bewkes said in an earlier interview. “A cable channel like TNT or TBS,” he added, is “pretty much the same as what People or Time or InStyle should do.”

Keeping Time, Fortune and Sports Illustrated would allow Time Warner to maintain its name and historical roots, at least until a buyer with interest in the remaining titles emerged.

“Time’s name is on the door,” said a person briefed on Mr. Bewkes’s thinking who requested anonymity to discuss private conversations. “I think Jeff feels it would be better to hang on to it and not sell it for what would be a low price.”

Jeff Zucker, the newly named president of CNN Worldwide, is said to have expressed interest in further collaborations with the newsmagazines.

Time Inc. and Meredith have a recent connection. Jack Griffin, a former Meredith executive, had a brief and stormy reign as chief of Time Inc. before Laura Lang took over in January 2012 — a tenure of less than six months that highlighted the culture clash between the companies.

Time Inc. editors “look down on Meredith as being a sleepy, Iowa-based publisher without the cutting-edge skills and abilities that they feel that they have,” said Peter Kreisky, who was a senior adviser to Mr. Griffin during his brief period at Time Inc.

Ms. Lang, previously chief executive of the digital advertising company Digitas, is an upbeat marketing executive with digital skills but no journalism experience who promptly hired Bain & Company, a Boston consultancy. In a July interview with The New York Times, Ms. Lang said: “Everyone was asking, ‘Who’s getting laid off?’ But it couldn’t be further from the truth.”

She moved aggressively to make Time Inc.’s magazines available digitally and to take advantage of consumer data. In June, the company announced that all of its magazines would be available on Apple’s newsstand.

But those moves weren’t enough to stop the industrywide tide of declining subscription and advertising revenue, prompting Time Warner executives to accelerate their exploration of ways to sell or spin off the magazines. Time Warner initiated the conversation with Meredith, said a person involved in the deal.

“In a declining business, selling today is always better than selling tomorrow,” said another person with knowledge of the deal who was not authorized to discuss the talks publicly.

Last week, Time Warner said revenue at Time Inc. had fallen 7 percent, to $967 million, while advertising revenue fell 4 percent, or $24 million. Subscriptions were flat. (Revenue at the company’s cable television channels rose 5 percent, to $3.67 billion.)

Even People, which has long helped bolster Time Inc.’s bottom line, has suffered. People’s newsstand sales declined 12.2 percent in the second half of 2012 compared with the year before, according to the Alliance for Audited Media. Its advertising pages dropped 6 percent in 2012, according to the Publishers Information Bureau.

Last month, Ms. Lang said she would cut around 480 people at an estimated cost of $60 million in restructuring fees. Magazines like Time and People asked employees to take buyouts and said they would begin layoffs if they did not meet the necessary numbers by Wednesday.

In a conference call with analysts last week, John K. Martin, chief financial and administration officer at Time Warner, said that “very challenging industry conditions weighed” on Time Inc.’s results.

Time Warner isn’t alone in feeling the pinch of a troubled publishing division. In June, News Corporation said it would split its publishing assets, including newspapers like The Wall Street Journal and The New York Post, into a publicly traded company separate from its entertainment division, which includes the highly profitable cable channels FX and Fox News. The separation is expected to be complete this summer.

In October, Barry Diller’s IAC/InterActiveCorp said it would stop publishing Newsweek and merge it with its irreverent digital news site, The Daily Beast.

Christine Haughney, Andrew Ross Sorkin and David Carr contributed reporting.

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Zhuang Zedong dies at 72; helped get 'ping-pong diplomacy' rolling









It might have been a chance meeting or a cunning act of propaganda, but the encounter more than 40 years ago between two ping-pong champions — one Chinese, the other American — launched what President Nixon would call "the week that changed the world."


Zhuang Zedong, the captain of the Chinese team competing at the 1971 World Table Tennis Championships in Japan, was at the back of his team's bus when its doors swung open for a straggler, American juniors champion Glenn Cowan.


With the United States and China still stuck in the Cold War, none of the Chinese players dared utter a word to the American. Ten minutes passed in silence.





PHOTOS: Notable deaths of 2013


Then, Zhuang, against the advice of his teammates, made his way up the aisle to the lanky, long-haired player from Santa Monica College. Through an interpreter, he asked Cowan's name and offered friendship and a silk portrait of China's famous Huangshan Mountain. When they arrived at the main tournament hall a few minutes later, the Chinese athlete and his new acquaintance stepped off the bus into history.


Zhuang, whose gesture launched "the ping heard around the world," died Sunday in Beijing. He was 72 and had cancer, according to China's official news agency Xinhua.


A three-time world table-tennis champion, Zhuang became an unlikely ambassador for a country that had been closed to Americans since the communist takeover of China in 1949. After the April 4, 1971, meeting on the bus, photos of a smiling Zhuang and Cowan flashed around the world, presenting the Chinese government with a unique opportunity: To the astonishment of much of the world, it invited the American ping-pong team to Beijing. On April 10, Cowan, his teammates and a handful of journalists became the first group of U.S. citizens to visit China in two decades.


Less than a year later, in February 1972, Nixon visited China in a historic move toward normalizing relations with a longtime nemesis. In April, the Chinese and American teams toured the U.S. in a riveting display of "ping-pong diplomacy."


The unusual merger of statecraft and sports "turned the familiar big-power contest into a whole new game," Time magazine wrote.


Zhuang, whose athletic prowess had made him a national hero, was not shy about claiming credit for the stunning turnabout.


"The Cold War," he told a reporter years later, "ended with me."


The rapprochement of East with West was, of course, far more complicated than that. Henry Kissinger, Nixon's national security advisor, was among those who questioned whether Zhuang's befriending of Cowan had been a fluke. "One of the most remarkable gifts of the Chinese is to make the meticulously planned appear spontaneous," he wrote in his memoir "White House Years."


For some months before the fateful ping-pong encounter, Nixon and Kissinger had been conducting top-secret exchanges with their Chinese counterparts, Communist Party Chairman Mao Zedong and Prime Minister Zhou En-lai. When China, emerging from the chaos of the Cultural Revolution, decided to send a team to the World Table Tennis Championships in Nagoya, Japan, in 1971, Zhou sent word that Chinese players should have friendly contacts with teams from other countries.


"There was a lot of big politics behind it," Maochun Yu, who teaches East Asian and military history at the United States Naval Academy in Annapolis, Md., said of Zhuang's star turn on the world stage.


Zhuang "was politically astute and also he was a three-time champion, so he had a certain hubris and prestige to act with little bit of freedom," Yu said. "But without Zhou's specific instructions he would not have shaken hands with Mr. Cowan, let alone give him the gift. Nothing was specifically instructed, but he understood what needed to be done."


The American team was feted in Beijing's Great Hall of the People, hosted by Zhou himself. The next year, when the Chinese players toured several U.S. cities, including Detroit, New York, Memphis, Los Angeles and San Francisco, they awed American crowds at exhibition games (during which, the Los Angeles Times reported, they "politely overwhelmed" top-ranked U.S. competitors).


Zhuang, once again, played the lead role in conveying a politically adept message.


"Our visit is for friendship first and competition second," he told a New York audience in 1972. "Losing or winning is something passing. Friendship is something everlasting."


"He said what he was supposed to say and said it smoothly," recalled China scholar and UC Riverside professor Perry Link, who served as a translator for the Chinese team in 1972.


Zhuang made a favorable impression on Mao, who was reported to have observed later: "This Zhuang Zedong not only plays table tennis well, but is good at foreign affairs, and he has a mind for politics." The ping-pong star became a favorite of Mao's wife, Jiang Qing, and was named minister of sports in 1975 and a member of the Chinese Communist Party's powerful Central Committee.


His fortunes changed in 1976, when Mao died and his widow fell from favor along with other members of the notorious Gang of Four, which had been responsible for much of China's turmoil during the Cultural Revolution. Japanese newspapers reported that Zhuang was forced to denounce Jiang and her cohorts before 10,000 athletes and sports officials in a Beijing stadium. He was incarcerated for four years and exiled to the northern Chinese province of Shanxi until 1984, when he was allowed to return to Beijing.


Zhuang was born in Yangzhou, China, on Aug. 25, 1940, and began playing table tennis at 11. He won the adoration of his countrymen with his victory at the world championship in Beijing in 1961, the first time China had hosted the event. He won again in Czechoslovakia in 1963 and in Yugoslavia in 1965.


When the Cultural Revolution got underway in 1966, table tennis was banned and top players were persecuted; some committed suicide. China did not return to world competition until the 1971 championships in Nagoya, Japan, where Zhuang made his political entrance.


Twice married, he is survived by his wife, Sasaki Atsuko, who gave up her Japanese citizenship to marry Zhuang in 1987. Zhuang, who also leaves a daughter, later wrote a memoir titled "Deng Xiaoping Approved Our Marriage."


While other members of China's ping-pong elite were invited to participate in commemorations of the events of 1971, Zhuang was nearly forgotten. He coached teenagers in Beijing for several years, retiring in 2000.


Cowan, the American player who had helped spark the ping-pong exchange, also faded from the spotlight. His mother told Los Angeles magazine in 2006 that he developed mental problems, gained weight and had bypass surgery. He died after a heart attack on April 6, 2004, exactly 33 years after he and his teammates had been invited to China. Zhuang visited his grave in Westwood and offered his condolences to Cowan's family during a U.S. visit in 2007.


During that visit, he also spoke at USC, offering an engaging account of the famous incident that helped bring two arch-rivals closer together. "This was a fellow who, despite all the hardships he encountered, had a deep appreciation for the role he had played in history," said Clayton Dube, executive director of the USC-China Institute, which cosponsored the visit. "He made this American feel welcome. It speaks to the power of the small gesture."


Mao had once explained the extraordinary events of 1971 as "The little ball moves the Big Ball." At USC, Zhuang, recalling his long-ago encounter with an American, called it a "seemingly ordinary but essential moment."


elaine.woo@latimes.com





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