CM Y K Composite

* * * * FRIDAY, MARCH 27, 2015 ~ VOL. CCLXV NO. 71 WSJ.com HHHH $3 .00

DJIA 17678.23 g 40.31 0.2% NASDAQ 4863.36 g 0.3% NIKKEI 19471.12 g 1.4% STOXX600 394.54 g 0.9% 10-YR. TREAS. g 25/32 , yield 2.007% OIL $51.43 À $2.22 GOLD $1,205.10 À $7.80 EURO $1.0886 YEN 119.19

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CONTENTSBusiness News B2,3,5,6Global Finance............ C3Heard on the Street C8In the Markets........... C4Movies......................... D2,3Opinion................... A11-13

Sports.............................. D8Technology................... B4Television.................. D4,6Theater............... D2,4,5,7U.S. News................. A2-5Weather Watch........ B6World News........... A6-9

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What’sNews

A black-box recording in-dicated that the crash of theGermanwings jet that killed150 was a deliberate act onthe part of the co-pilot, aFrench prosecutor said. A1, A6The conflict in Yemen israpidly devolving into widerregional strife, pitting ShiiteIran and an allied militantgroup against Saudi Arabiaand other Sunni Arab states.A1 Iranian andU.S. negotiatorshave resumed nuclear talksahead of a March 31 deadline,with the Yemen conflict rais-ing fresh complications. A9 U.S. airstrikes hit IslamicState targets in Tikrit asthousands of Iranian-backedShiite fighters were sidelinedin the stalled offensive. A9 U.S. authorities arresteda National Guard soldier andhis cousin on charges relatedto an alleged plot to aid ISIS.A2The House overwhelminglypassed a bill to reformulatehowMedicare reimburses doc-tors and other providers. A4 The Republican race forthe presidential nominationcould be one of the mostdrawn-out in a generation,some GOP strategists say. A4Wisconsin Gov. Walkertold a private audience that hebacked the idea of residencyand eventual eligibility forcitizenship for undocumentedimmigrants, in a shift. A4 Edward Golding, a HUDsenior adviser, has beentapped to head the FHA. A2 The ice shelves that floatoff Antarctica have lost vol-ume over the past two de-cades, a new study says. A7

O il producers hit by fall-ing crude prices are har-

vesting financial bets toraise much-needed cash. C1 The number of financiallystressed companies has swelledto a 4½-year high amid thesharp drop in oil prices. C1Mexico’s Pemex landedits first major investmentsince an overhaul openedthe energy sector to privateinvestors last year. B3 Toyota unveiled a re-vamped manufacturing pro-cess the auto maker says willproduce half its vehicles by2020 and slash costs. B3 Japan’s core gauge of con-sumer prices was flat from ayear earlier in February, deep-ening deflation worries. A7 U.S. stocks lost groundfor a fourth straight day. TheDow shed 40.31 points to17678.23. The S&P 500 andNasdaq edged lower. C4 Two new apps are racingto become the dominant wayto broadcast live one’s sur-roundings via social media. B1 RadioShack said StandardGeneral’s offer to save muchof the chain is the best toemerge from an auction. B4 Bottled water drove a2.2% rise in nonalcoholicdrink sales, as soda sales fellfor a 10th straight year. B1 The EU is set to open aninvestigation into whetherInternet commerce firms areviolating antitrust laws. B4 Omega Advisors receivedsubpoenas from the U.S. at-torney’s office for New Jer-sey and the SEC. C3

Business&Finance

World-Wide

ISHPEMING, Mich.—On Sun-day, Carl Pellonpaa is markingthe end of an era in televisionhistory with two words: “siinäkaikki”—that’s it.

After 53 years and more than2,650 straight weekly episodes ofhosting “Finland Calling,” Mr.Pellonpaa will cap a career thatfar outpaces David Letterman,Johnny Carson and “SaturdayNight Live.” Some might say he isFinnished.

Mr. Pellonpaa isn’t some yokelwith a program on public-access.In the sprawling tundra of Michi-gan’s Upper Peninsula, his Sundaymorning show about music, his-tory, politics, travel and anythingPlease see FINLAND page A10

BY ANNE STEELE

After 53 Years,Mr. PellonpaaIs Finnished

i i i

Michigan’s YoopersTuned In FaithfullyFor a Finland Fix

KHALE

DABD

ULLAH/R

EUTE

RS

Shiite rebels in Yemen protested Thursday against airstrikes led by Saudi Arabia on militant forces backed by Iran. Yemen’s president has left the country.

MENTOR, Ohio—The reces-sion threw up plenty of hurdlesfor MT Heat Treat, an industrialheat-treatment plant here in theRust Belt.

It struggled to hold onto em-ployees as revenues fell bynearly half and some customerswent bust, said Sonja Mathews,whose family owns the opera-tion. But one problem was unex-pected: The banks she thoughtthey could rely on turned themdown for loans, even when of-fered ample security.

“At one time we wanted a$300,000 loan, and for that theywanted almost $2 million in col-lateral, including this building,”she says. “But even with that,they still wouldn’t do it.”

These days Ms. Mathews, 48years old, is too busy for bitter-ness. The giant ovens in the han-gar-sized plant are roaring andshe is running three shifts, 24

BY JAMES STERNGOLD

hours a day, thanks to the com-pany’s new bank that has kickedin all the financing it needs.

KeyBank, based in nearbyCleveland, provided last year

Please see BANKS page A10

Unlocking CreditPercentage of KeyCorp loans thatare commercial and industrial

THEWALL STREET JOURNAL.Source: KeyCorp

50

0

10

20

30

40

%

2009 ’10 ’11 ’12 ’13 ’14

2014: 48.8%$28 billion

Hollywood SendsIn the Drones

ARENA | D1

Secrets of TopArchitectsMANSION | M1

REGIONAL BANKSBET ON FACTORIESDeep in Rust Belt, local lender KeyBank fills niche

The conflict in Yemen isquickly devolving into a widerregional conflagration, pittingShiite Iran and an allied militantgroup against Saudi Arabia andother Sunni Arab states thatcame together to launch air-strikes on those militants.

The coordinated Arab attacksled by Saudi Arabia began earlyThursday morning and targetedthe Shiite-linked Houthi militantgroup in Yemen. They followedweeks of talks on forging a jointmilitary force to combat whatsome nations see as regionalthreats from Iran coupled with aU.S. reluctance to intervene.

Saudi Arabia, Shiite Iran’smain rival for power in the Mid-dle East, conducted the firstround of strikes against theHouthis. In the early hours of

Friday, residents of the capitalSan’a reported an intense bar-rage of explosions as a secondround apparently began.

Saudi Arabia said its cam-paign in Yemen was being con-ducted in tandem with Egyptand Gulf neighbors Qatar, theUnited Arab Emirates, Bahrainand Kuwait. Morocco, Jordan,Pakistan, Sudan and Turkey, al-though not yet directly involved,indicated they would supportoperations against the Houthis.

Egypt’s intervention could beparticularly sensitive at home.There, Yemen is considered byhistorians as the country’s ver-sion of Vietnam. Former Arabnationalist President Gamal Ab-del Nasser’s five-year-long mili-tary intervention in a dividedYemen in the 1960s was widelyconsidered an expensive distrac-tion. Egypt deployed about70,000 troops and lost 40% of itsforces before withdrawing.

The establishment of an Arabcoalition to fight the Houthi ad-

By Hakim Almasmariin San’a, Yemen,Rory Jones and

Asa Fitch in Dubai

is lined up against Iran in Yemen.Meanwhile, it is trying to negoti-ate a nuclear deal with Tehranand is working on the same sideas the Iranians to defeat IslamicState fighters in Iraq.

Moreover, at this moment ofhigh regional anxiety, Mr. Obamafinds his ties to Israel and Egypt,two traditional bulwarks of pro-American sentiment, under greatstrain. And his dream ofsmoothly exiting the long warsin Iraq and Afghanistan suffereda double blow this week as U.S.planes had to spring back intoaction in Iraq in an attempt topush back Islamic State forces,and Mr. Obama agreed to keep inAfghanistan thousands of troopshe had hoped could leave byyear’s end.

The upshot is that Mr. Obamais engaged in a juggling act, try-ing to keep aloft a nuclear dealwith Iran, the fight against Is-lamic State and an effort to pre-vent Yemen from sliding into

Please see MESSY page A8

The Middle East has de-scended into a state of disarrayunusual even for that troubledregion, imperiling President Ba-rack Obama’s policy dreams andleaving him with limited abilityto control events.

The latest com-plication haserupted in Yemen,

where rebel forces backed byIran have driven out the coun-try’s president and are expand-ing their control southwardacross the country. The prospectthat those Shiite rebels mightsucceed in taking over a neigh-bor has so alarmed the Sunnileaders of Saudi Arabia that theyhave launched airstrikes and as-sembled an international coali-tion to intervene—a coalitionthat the U.S. has vowed to help.

That means the Obama ad-ministration finds itself in ahighly awkward position: It now

BY JAY SOLOMONAND GERALD F. SEIB

Obama StrugglesWith Messy Mideast

ANALYSIS

vance in Yemen served to accel-erate prior talks on a more far-reaching joint military force.

The campaign in Yemenmarks “a new page of Arab coop-eration for the security of theregion,” Anwar Gargash, theU.A.E. minister of state for for-eign affairs, wrote on Twitter.

The Houthi minority grouphas overrun most of Yemen inthe past seven months andseized control of the capital andgovernment. Saudi Arabia is themain ally of Yemen’s U.S.-backed president, Abed RabboMansour Hadi, and the kingdomsaid its airstrikes were in de-

Please see STRIKES page A8

Saudis Rally Sunni CoalitionTo Counter Iranians in Yemen

Region in Turmoil Iraq sidelines Iran-backed

militias.................................... A9 Al Qaeda sees room to gain

in Yemen................................ A9 Conflicts cloud Iran nuclear

talks......................................... A9

PARIS—Andreas Lubitz wasalone in the cockpit, breathing insilence, as his captain poundedon a locked door and passengersscreamed. Those chilling

By Stacy Meichtry,David Gauthier-Villarsand Daniel Michaels

sounds—captured in a black-boxrecording—have left French in-vestigators with little doubt thatthe crash that killed 150 peopleaboard Flight 9525 was deliber-ate.

Lead prosecutor Brice Robinsaid on Thursday he suspectedMr. Lubitz, the 27-year-old Ger-manwings co-pilot, locked thecaptain out of the cockpit, pro-grammed the A320’s descent andslammed it into an alpine ridgeat 400 miles an hour with a“willingness to destroy this air-craft.”

That fatal sequence raises

fresh concerns about a dangerthat aviation and security regu-lators consider among the leastcontrollable: the threat posed byinsiders. Following the attacks ofSept. 11, 2001, authorities world-wide added layers of screeningto stop passengers, crew or stafffrom carrying weapons or dan-gerous materials onto airplanes.But those measures have leftaviation insiders with ample op-portunities to sabotage flights.

In the first of what could be aseries of security changes in thewake of Tuesday’s crash, Euro-pean aviation regulators on

Thursday took steps to requirethat two crew members be in thecockpit at all times duringflights, as is required in the U.S.

At least 12 plane crashes inthe past four decades are sus-pected to have been deliberatelycaused by pilots or others at thecontrols, according to the Avia-tion Safety Network, a groupthat tracks air incidents. Thatdoesn’t include terrorism, suchas the 9/11 attacks.

Investigators suspect thatMalaysia Airlines Flight 370,which disappeared a year ago on

Please see CRASH page A6

Co-Pilot Set Jetliner to Crash in AlpsAndreasLubitz, 27, lockedcaptain out of cockpit andsent plane intoplunge,Frenchprosecutor says

Motive remains mystery.......... A6 Regulators reassess cockpit

rules ..................................................... A6 Mental-health checks vary...... A6

Andreas Lubitz in a Facebook photo.

AGEN

CEFR

ANCE

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SSE/GE

TTYIM

AGES

Middle East Heavyweights Choose Sides

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