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VOL. CCLXIV NO. 123 * * * * * * * *
SATURDAY/SUNDAY, NOVEMBER 22 - 23, 2014
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n China’s central bank andthe ECB moved to pump upflagging global growth, boost-ing stock markets but raisingnew questions about the lim-its of monetary policy.A1, A8n Stocks staged a global rally.The Dow and S&P 500 hit highsdespite some hesitancy amongU.S. investors. The blue chipsrose 91.06 points to 17810.06. B1nThe FCC’s auction of wire-less-spectrum licenses has col-lected $34 billion in bids, alikely windfall for taxpayers. A1n Some European legisla-tors, with German backing, arepreparing a draft resolutioncalling for Google’s breakup. B3n Dow Chemical agreed toadd two directors proposed byDaniel Loeb to its board, qui-eting the activist investor. B3n Four years after theDeepwater Horizon disaster,big new oil projects are return-ing to the Gulf of Mexico. B1n The New York Fed’s chief,at a Senate hearing, defendedthe regulator’s oversight oflarge financial firms. B2n Royal Bank of Scotlandadmitted to errors in the datait submitted to last month’sEuropean “stress tests.” B2n Aereo filed for Chapter 11,months after the SupremeCourt dealt it a fatal blow inits fight with broadcasters. B3n Aviva announced plansfor an $8.8 billion takeoverof Friends Life Group. B2
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InsideNOONAN A13
The NihilistIn the
White House
U .S. Justice Departmentpersonnel are disguising
themselves as Mexican Ma-rines to take part in armedraids against drug suspectsin Mexico, an escalation ofAmerican involvement. A1nHouse Republican leaderssought to convey anger overObama’s immigration changeswithout letting that ire spiralinto a government shutdown.GOP leaders also filed suitover the health-care law. A4nWestern negotiators mayoffer more concessions toIran to reach an agreementon its nuclear program. A6n Biden warned Russia offurther isolation should theKremlin fail to encouragepeace in eastern Ukraine. A7n The IRS watchdog said itfound emails that could be rele-vant to a probe of alleged target-ing of conservative groups. A5nA House report on the 2012Benghazi, Libya, attacks foundno attempt by the administra-tion to mislead the public. A5n Tunisians will vote onSunday for their first demo-cratically elected president. A6n A Brazilian corruptionprobe is raising questionsabout the oversight of proj-ects for the 2016 Olympics. A9nOfficials announced groundrules police will use duringprotests, as the Fergusongrand jury weighed charges. A5
U.S. Justice Department per-sonnel are disguising themselvesas Mexican Marines to take partin armed raids against drug sus-pects in Mexico, according topeople familiar with the matter,an escalation of American in-volvement in battling cartelsthat carries significant risk toU.S. personnel.
Both the U.S. and Mexicangovernments have acknowledgedin the past that American law-enforcement agencies operate inMexico, providing intelligencesupport to Mexican militaryunits battling the drug cartels.The countries have described theU.S. role as a supporting oneonly.
In reality, said the people fa-miliar with the work, about fourtimes a year the U.S. MarshalsService sends a handful of spe-cialists into Mexico who take uplocal uniforms and weapons tohide their role hunting suspects,including some who aren’t on aU.S. wanted list. They saidagents from the Federal Bureauof Investigation and Drug En-forcement Administration play asupporting role, in similarlysmall numbers.
The risks became clear onJuly 11, when Mexican Marinesand a handful of U.S. Marshalspersonnel dressed as MexicanMarines were fired on as theywalked through a remote field inSinaloa state. One American wasshot and wounded, and in thegunfight that followed, morethan a half-dozen suspected car-tel soldiers were killed, accord-
PleaseturntopageA9
BY DEVLIN BARRETT
U.S.RaidsCartels asMexicanMarines
Two major central banksmoved Friday to pump up flag-ging global growth, sendingstock markets soaring but rais-ing new questions about thelimitations of a seven-year effortto use monetary policy to ad-dress economic problems.
The People’s Bank of Chinaannounced a surprise reductionin benchmark lending and de-posit rates, the first cuts since2012, after other measures toboost faltering growth fell short.Hours later, European CentralBank President Mario Draghisaid the bank might take newmeasures to boost inflation, nownear zero, his strongest signalyet that the ECB is gettingcloser to buying a broader swathof eurozone bonds.
The moves came less thantwo weeks after the Bank of Ja-pan said it would ramp up itsown securities-purchase pro-gram known as quantitative eas-ing, or QE, as the Japaneseeconomy fell into recession.
The twin steps Friday, half aworld apart, sent global stockprices sharply higher, bolsteredthe U.S. dollar and boosted oilprices.
The Shanghai Composite In-dex rose 1.4%, while Germany’s
DAX index jumped 2.6%. TheDow Jones Industrial Averagefinished up 0.51%, and at17810.06 is now closing in onthe 18000 threshold that hasnever been surpassed. The Nik-kei rose 0.3%.
Amid the flurry of centralbank activity, the dollar was thewinner among global currencies,rising 0.27% against a broad in-dex of other currencies to put itup 9% for the year.
Though the moves towardeasier money in Europe andAsia are good for investors,they come with multiple risks.They could perpetuate or sparkasset bubbles, or stoke toomuch inflation if taken too far.Also, they don’t address struc-tural problems that policy mak-ers in each economy are strug-gling to fix.
The steps, particularly in Eu-rope, represent a subtle endorse-ment of the Federal Reserve’seasy-money approach to postcri-sis economics, but come as theU.S. central bank shifts its ownlow-interest-rate policies. TheFed last month ended a six-yearexperiment with bond purchases,and it has begun talking aboutwhen to start raising short-terminterest rates as the U.S. econ-omy improves, though those dis-cussions are early and rate in-
PleaseturntopageA8
By Jon Hilsenrath inWashington, Brian
Blackstone in Frankfurtand LinglingWei in
Beijing
CentralBanksInNewPushToPrimePumpStock Markets Rise on China, ECBEasy-Money Policies, but Risks Lurk
Obama Makes Case as GOP Bristles
NickOza/A
ssociatedPress
Linda Interlichia arrived alone at her family’sCape Cod vacation home a half-mile from thebeach last fall. Her routine there had been un-changed for years: She opened the doors to let thebreeze flow in from the marsh and sat on the deckin the afternoon, sipping a glass of Chardonnay.
The second night, ease gave way to dread.Heavy pelvic bleeding left her faint, and the nextmorning, she drove herself to the emergencyroom.
It was, she confided to her husband, Frank,among the most frightening episodes in her life.The hemorrhaging under control, she returnedhome to Rochester, N.Y., and saw her doctor thesame week.
To Mrs. Interlichia’s relief, her gynecologist,Wendy Dwyer, linked the bleeding to benign uter-
BY JENNIFER LEVITZ AND JON KAMP
‘HOPES, DREAMS, PLANS’
Medical Device SidelinedToo Late to Save Some
CAMBRIDGE, Mass.—In the1970s, on this campus known forscientific innovation, Massachu-setts Institute of Technologystudents engineered a rather un-likely experiment: a footballteam.
MIT had no intercollegiatefootball squad at the time. Thestudent body in 1901 voted119-117 to discontinue it. So oneday in 1978, a group of MIT stu-dents huddled and created ateam that would play its firstgame that fall. No one else at theschool had any clue.
There were times when field-ing a football team at MITseemed like rocket science. Thestudents wore uniforms thatonce belonged to another col-lege. They borrowed their play-book from a local high school.They were known as both theBeavers and the Engineers. Ei-ther way, they lost every gamethey played that year, and evenone they didn’t play.
But these football forefa-
thers, who are no-where to be foundin MIT’s recordbooks, are now tak-ing their victorylap. The studentclub they createdeventually becamea university-runvarsity team. Thisseason, 36 yearsafter winning nogames, the Engi-neers are unde-feated and will make their firstappearance in the National Col-legiate Athletic Association’s Di-vision III playoffs on Saturday.
Art Aaron enrolled at MITwhen the only competitive foot-ball there was played in an intra-mural league. The games wereflag football, but the fraternitymembers of Sigma Alpha Epsilonand Lambda Chi Alpha wouldbeat each other up when theytook the field.
“It’s a bit of an oxymoron,”said Mr. Aaron, a defensive end onthe 1978 team, “but we were twoof the jock fraternities at MIT.”
They decidedthat MIT shouldplay someoneother than MIT.Bruce Wrobel, thestarting quarter-back, plasteredcampus with post-ers for a potentialstudent-run squad,known in collegesports as a club-level team. Morethan 40 guys
showed up for the first meet-ing. He and his teammates thenattended a club-football con-vention and made deals to playseven games—six on the roadand one on campus. They billedit as “MIT’s first home footballgame in 75 years.” Mr. Wrobeldied in 2013.
The players had another issueto tackle: None of MIT’s adminis-trators knew they had invented afootball team.
Soon, the club officers weresummoned to a meeting withthen-MIT President Jerry
PleaseturntopageA5
BY BEN COHEN
How MIT Engineered a Football Team Out of Scrapi i i
In the Playoffs Now, They Started in Hand-Me-Downs; ‘3 point 14159!’
ine growths, she said, and offered an enticing solu-tion, a brochure extolling a robot-assisted hyster-ectomy through tiny incisions.
“She slapped it on the table between us as wesat in her office like she was giving me a Christ-mas present,” Mrs. Interlichia said.
“She said I’d be up and running—she knew Iliked to jog—in three weeks with minimal scarringand pain,” she said. “I left thinking I didn’t have acare in the world.”
But her problem wasn’t benign. It was an ag-gressive cancer, leiomyosarcoma, identified onlyafter her surgery. And Dr. Dwyer had used a lap-aroscopic power morcellator, a tool insertedthrough an incision to cut up and remove theuterus.
A morcellator can leave behind bits of malig-nant tissue that seed multiple new tumors, scien-
PleaseturntopageA10
The Federal CommunicationsCommission’s auction of wire-less spectrum licenses has col-lected $34 billion in bids, turn-ing what was expected to be arelatively sleepy affair into alikely windfall for taxpayers andan enormous commitment ofcapital for the carriers.
The offers reflect the surgein wireless traffic as Americansincreasingly watch YouTube vid-eos, stream music and sharephotos with their iPhone andGalaxy smartphones. Companiesincluding Verizon Communica-tions Inc. and AT&T Inc. so farhave met that demand by stitch-ing together smaller purchases
of spectrum since the govern-ment’s last big auction in 2008.Now, they are paying up to buythe crucial resource in bulk.
The auction, which is con-tinuing, is poised to become themost lucrative ever in the U.S.The interest surprised many an-alysts, some of whom expectedit to bring in less than half thecurrent total. The communica-tions industry had been morefocused, said analysts, on acoming auction of spectrumnow held by television broad-casters. That was recentlypushed back to 2016, however,and there are concerns aboutfurther delays.
“This is happening becausespectrum is the critical raw ma-
Pleaseturntothenextpage
BY THOMAS GRYTAAND RYAN KNUTSON
Wireless Carriers BidUpU.S. Airwaves to Record
CONFRONTATION: President Barack Obama defended giving millionsof illegal immigrants a reprieve from deportation, speaking in LasVegas Friday as House Republican leaders sought to convey theiranger without letting it spiral into a government shutdown. A4 Steps by China, Europe............ A8
Global rally in stocks................... B1 Heard on the Street.................. B14
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