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* * * * * * TUESDAY, MARCH 24, 2015 ~ VOL. CCLXV NO. 68 WSJ.com HHHH $3 .00

DJIA 18116.04 g 11.61 0.1% NASDAQ 5010.97 g 0.3% NIKKEI 19754.36 À 1.0% STOXX600 401.24 g 0.7% 10-YR. TREAS. À 5/32 , yield 1.916% OIL (new) $47.45 À $0.88 GOLD $1,188.00 À $3.20 EURO $1.0947 YEN 119.73

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CONTENTSArts in Review.......... D5Business News.. B2,3,6CFO Journal................. B5Global Finance............ C3Health & Wellness D2-4Heard on the Street C10

In the Markets.......... C4Opinion..................... A9-11Sports.............................. D6Technology................... B4U.S. News................. A2-5Weather Watch........ B6World News..... A6-8,12

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What’sNews

Islamic State militantsare skimming tens of mil-lions of dollars a month fromIraqi government employeesalaries in occupied areas. A1 GOP Sen. Ted Cruz saidhe is running for president andcalled for scrapping the 2010health law and the IRS. A1 Israel shared informationwith U.S. lawmakers from spy-ing on Iran nuclear talks in a bidto drain support for a deal. A1 Netanyahu apologized foran election-day remarkabout Israel’s Arab votersthat drew fierce criticism. A8 A lab that collected largesums fromMedicare tenta-tively agreed to pay nearly $50million to settle a civil probeof payments to doctors. A5 U.S. officials pledged toseek billions in support forAfghan security forces, asPresident Ghani visited. A7 Greece’s premier met withMerkel in Berlin, but appearedto make little tangible progressin defusing tensions. A12A federal review of police-involved shootings in Phila-delphia found shortcomingsin department policies. A5 Cameron ruled out seekinga third term as U.K. primeminister if his ConservativeParty remains in power. A12 Six Tunisian police com-manders were fired in the wakeof a terror attack last weekthat left 21 people dead. A6 The Supreme Court de-clined to hear a challenge toWisconsin’s voter-ID law. A2

U .S. auto production isnearing all-time highs,

but American-made cars andtrucks are increasinglyloaded with imported parts. A1 Banks are shuffling bigchunks of their securities port-folios around their balancesheets to shield capital levelsfrom rising interest rates. C1 China offered to forgo vetopower at a new developmentbank, a proposal that helpedattract European backers. A7 Existing-home sales in theU.S. rose 1.2% in Februaryfrom January to a seasonallyadjusted rate of 4.88million.A2Total will seek up to $15 bil-lion in financing for a Russiaproject through Chinese banksin local currency and euros. B1 Vivendi is being pressedby a U.S. activist fund toboost shareholder returnsand clarify its strategy. B1 Hutchison Whampoa isclose to cementing its $15 bil-lion acquisition of U.K. cell-phone operator O2. B2 Ocwen disclosed that ithad been threatened with apossible delisting by theNew York Stock Exchange. C3 The Nasdaq fell back fromits 15-year high, dropping15.44 points to 5010.97. TheDow eased 11.61 to 18116.04. C4 U.S. regulators said theyfound shortcomings in the“living wills” of the U.S. unitsof BNP, HSBC and RBS. C3 The NFL plans to show agame on a national digitalplatformduring the coming sea-son, bypassing national TV. B1

Business&Finance

World-Wide

Islamic State militants areskimming tens of millions of dol-lars a month from salaries paid toIraqi government employees inoccupied areas such as Mosul,and Baghdad continues to sendthe cash to maintain local sup-port.

The group is using the moneyto fund operations, U.S. officialssay, underlining the delicate bal-ancing act U.S. and Iraqi govern-ments face in what they know isa hearts-and-minds campaignagainst Islamic State ahead of amilitary operation to retake Mo-sul, for which U.S. officials aretraining Iraqi troops.

U.S. defense officials say U.S.-led strikes have put pressure onIslamic State, hurting its com-mand-and-control operations,but they remain cautious aboutthe near-term prospects of re-taking Mosul and other territoryunder the group’s firm control.

A lack of desirable options hasput U.S. officials in an awkwardposition, forced to choose be-tween the goal of denying funds toIslamic State and the goal of per-suading Sunnis to back the Shiite-led government in Baghdad.

The U.S. provides Iraq withhundreds of millions of dollars inassistance each year. It is un-clear whether any of those con-tributions go toward governmentpayrolls.

The Iraqi and U.S. govern-ments have mounted a jointcampaign to cut off IslamicState’s revenue sources.

In debating how to proceed,U.S. officials haveweighed a choicewith two bad options. If they inter-vene and try to direct the Iraqigovernment to stop paying certainemployees so as to prevent IslamicState from stealing a portion of themoney, they could prevent hun-dreds of thousands of innocentIraqis inMosul from receiving anypay and potentially trigger a hu-manitarian crisis. But if they don’tintervene, Islamic State could usethe revenue to buy weapons andfortify the city against the ex-pected siege by the U.S. and Iraqimilitaries this spring.

“No decision has been madeone way or another as to howthe U.S. should engage on [theseized funds],” a senior Obamaadministration official said.“This is something we are con-cerned about and continue to

Please see ISIS page A6

BY DAMIAN PALETTAAND ADAM ENTOUS

MilitantsIn IraqSiphonState Pay

THREE RIVERS, Mich.—U.S.auto production is nearing all-time highs on the back ofstrong domestic demand andsteady export increases. ButAmerican-made cars and trucksare increasingly loaded withparts imported from Mexico,China and other nations.

The U.S. imported a record$138 billion in car parts lastyear, equivalent to $12,135 ofcontent in every Americanlight vehicle built. That is upfrom $89 billion, or $10,536per vehicle, in 2008—the firstof two disastrous years for thecar business. In 1990, only$31.7 billion in parts were im-ported.

The trend casts a cloud overthe celebrated comeback of oneof the nation’s bedrock indus-tries. As the inflow of low-costforeign parts accelerates,wages at the entry level aredrifting away from the gener-ous compensation packagesthat made car-factory jobs the

Please see AUTO page A2

BY JAMES R. HAGERTYAND JEFF BENNETT

Roberts University broke TwinLakes’ record in January, with1,011 students, faculty, and staff.

The nearly irresistible urge toburst Bubble Wrap from newlyarrived packages has morphedinto one of the most hotly con-tested mass-participation recordscertified by Guinness World Re-cords. Since the original recordwas established in 2013, it hasbeen broken seven times—all byschools, including one from theAustralian island of Tasmania.

“Bubble Wrap is universal,”said Alex Angert, records man-ager in New York for Guinness,who attributes the trend to therelative simplicity of the task, andthe ubiquity of the material. “Youjust need people and a lot of Bub-

Please see BUBBLE page A5

Fame came and went quicklyfor West Scranton IntermediateSchool.

Last May, more than 700 stu-dents, teachers and staff from theScranton, Pa., school sat shoul-der-to-shoulder on the gym floorand popped bubbles on BubbleWrap packaging for two straightminutes, setting a world recordfor the number of people pop-ping.

Less than three weeks later, aschool in Elk River, Minn., brokeWest Scranton’s record with 942poppers. Organizers rolled outsheets of Bubble Wrap on theschool parking lot and instructedparticipants wearing grade-spe-cific colored T-shirts to stomp onbubbles in addition to snappingthem with their fingers.

“When they were all lined upin the parking lot it was like ajumping rainbow and the noisewas tremendous,” said TriciaDowney, of the Twin Lakes Ele-mentary School’s parent teacherorganization who helped organizethe event.

Alas, all glory is fleeting. Oral

BY BOB TITA

For Some World Record Holders,The Bubble Bursts Quickly

i i i

Competition pops up among schools vyingfor Bubble Wrap title; noise, bragging rights

Bubble Wrap

Five Centuries Later, the Curtain Comes Down on Richard III

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FINAL ACT: Shakespeare’s tragic English monarch, whose bones were discovered in 2012, rests in Leicester Cathedral before reinterment on Thursday.

Wages DropAs ForeignParts InvadeAmericanCars

Israel acquired information from confi-dential U.S. briefings, informants and dip-lomatic contacts in Europe, the officialssaid.

The espionage didn’t upset the WhiteHouse as much as Israel’s sharing of in-side information with U.S. lawmakers andothers to drain support from a high-stakesdeal intended to limit Iran’s nuclear pro-gram, current and former officials said.

“It is one thing for the U.S. and Israelto spy on each other. It is another thingfor Israel to steal U.S. secrets and playthem back to U.S. legislators to undermine

U.S. diplomacy,” said a senior U.S. officialbriefed on the matter.

The U.S. and Israel, longtime allies whoroutinely swap information on securitythreats, sometimes operate behind thescenes like spy-versus-spy rivals. TheWhite House has largely tolerated Israelisnooping on U.S. policy makers—a postureIsrael takes when the tables are turned.

The White House discovered the opera-tion, in fact, when U.S. intelligence agen-

Please see SPY page A8

Soon after the U.S. and other majorpowers entered negotiations last year tocurtail Iran’s nuclear program, seniorWhite House officials learned Israel wasspying on the closed-door talks.

The spying operation was part of abroader campaign by Israeli Prime Minis-ter Benjamin Netanyahu’s government topenetrate the negotiations and then helpbuild a case against the emerging termsof the deal, current and former U.S. offi-cials said. In addition to eavesdropping,

BY ADAM ENTOUS

Inside Netanyahu apologizes over remarks............. A8

LYNCHBURG, Va.—Sen. TedCruz on Monday began his cam-paign for the White House witha call to abolish the 2010 healthlaw and the Internal RevenueService, an appeal for greaterschool choice and a propositionto his party: that Republicanscan win the White House only ifthey nominate a forceful conser-vative like himself.

The Texan, who became the

ISRAEL SPIED ON IRAN TALKSAlly’s snooping upset White House because information was used to lobby Congress to try to sink a deal

tional level rather than by pre-senting a list of accomplish-ments or political victories.

“Today, roughly half of born-again Christians aren’t voting,”Mr. Cruz said at Liberty Univer-sity, a school founded by the lateevangelist Jerry Falwell Sr.“They’re staying home. Imagineinstead millions of people offaith all across America coming

Please see CRUZ page A4

a higher percentage of the elec-torate than Republicans in thelast two presidential elections,they argue the GOP needs to ap-peal to more than its base.

The first-term senator built anational profile as the leader ofa confrontational faction of con-servative lawmakers whose tac-tics helped lead to the 2013 fed-eral government shutdown. Hecast himself Monday as theGOP’s version of President Ba-rack Obama: a fresh figure whowould engage voters on an emo-

first major candidate of eitherparty to enter the 2016 race, laidout an argument here that Repub-licans have failed in presidentialelections because their nomineeswere insufficiently conservative,leaving evangelical Christians andothers on the political right to sitout the vote and hand victory tothe Democrats.

But other Republicans, stillhaunted by Mitt Romney’s un-successful 2012 campaign, raisedquestions about Mr. Cruz’s anal-ysis. With Democrats making up

BY REID J. EPSTEINAND REBECCA BALLHAUS

GOPRaceOpens to theRight

Gerald F. Seib: National securitymoves up 2016 agenda............ A4

BUSINESS & TECH. | B1

Louisville Slugger Finds a New Owner

Glove maker Wilson Sporting Goods buys the famed baseball-bat brand,which has languished under family ownership.

PERSONAL JOURNAL | D1

Why CouplesFight

Spouses often have differentmemories of the same event; itstarts with the way each personperceives things in the first place.G

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