DealBook: Blackstone Keeps Most of Its Money With SAC

The Blackstone Group, the largest outside investor in the hedge fund SAC Capital Advisors, said it would keep most of its $550 million with the hedge fund for three more months while it monitors developments in the government’s insider trading investigation.

The move by Blackstone comes as SAC’s clients faced a regularly scheduled quarterly deadline on Thursday to decide whether to continue investing with the hedge fund giant run by Steven A. Cohen.

Despite posting one of the best investment track records on Wall Street — returning 30 percent annually over the past two decades — SAC has been fighting to keep investors’ money amid an intensifying investigation into criminal conduct at the fund. In November, since prosecutors brought its most recent case against Mathew Martoma, a former SAC employee, clients have been weighing whether to continue their relationship with the fund. Mr. Martoma has denied the charges.

Large hedge fund investors like Blackstone rarely make public pronouncements about their intentions, but given the heightened interest in SAC, the investment firm issued a statement explaining the rationale for its decision.

The money that Blackstone did withdraw was done in the normal course of business and unrelated to any of SAC’s problems. Blackstone, which runs the world’s largest so-called fund of funds, placing nearly $50 billion with outside managers, is seen as a bellwether in the hedge fund industry.

“While we submitted redemptions for certain accounts as appropriate, BAAM successfully preserved flexibility for our clients by extending our decision time line,” Peter Rose, a Blackstone spokesman, said in a statement, referring to Blackstone Alternative Asset Management, the segment that invests with hedge funds. “We will use this period of time to evaluate all additional information which becomes available.”

It is unclear what the total amount of money that SAC’s clients redeemed on Thursday. The Stamford, Conn.-based hedge fund had warned its employees that it expected it could face at least $1 billion of withdrawals. A Citigroup unit that manages money for wealthy families has already disclosed that it was withdrawing its $187 million investment.

While several other former SAC employees have previously been charged with insider trading crimes, the Martoma prosecution has changed clients’ calculus because the trades at the center of the case involve Mr. Cohen. In addition, the Securities and Exchange Commission warned SAC that it might file a civil fraud lawsuit against the fund related to the trades. Mr. Cohen has not been charged and has said that he has acted appropriately at all times.

Federal prosecutors are also nearing a decision whether to bring criminal charges against Michael Steinberg, a longtime SAC portfolio manager, related to trading in the technology stocks Dell and Nvidia. A lawyer for Mr. Steinberg, Barry Berke, said in a statement that his client did absolutely nothing wrong.

Unlike other hedge funds that can be forced to shut down after a wave of client withdrawals, SAC is in a slightly unusual situation. Only about 40 percent of the $14 billion managed by SAC, or about $6 billion, comes from outside clients. The balance belongs to Mr. Cohen and his well-paid staff.

In addition, SAC has policies in place that limit the amount of money a client can withdraw during any one quarter. Clients can only withdraw 25 percent of their investment every three months. That means if a client put in a so-called redemption request on Thursday, it would receive its money back in quarterly installments beginning March 31, and getting its last dollar out on Dec. 31.

Blackstone negotiated a way to buy itself some time without delaying its ability to withdraw it investment from the fund. SAC agreed to a new redemption policy that it will extend to its other clients, allowing them to keep their money with SAC for another quarter. If after three months, clients then decide to end their relationship with SAC, the fund would return their money in three installments.

Under the new policy, SAC is permitting clients to take a wait-and-see approach, monitoring the investigation for developments that could damage the fund. And if they withdraw, they would still have all of their money returned by year-end.

SAC recent investment results have been solid, though it has lagged behind the Standard & Poor’s 500-stock index. The fund returned about 13 percent last year and 2.5 during the first month of 2013.

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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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Domestic-Drone Industry Prepares for Big Battle With Regulators

For a day, a sandy-haired Virginian named Jeremy Novara was the hero of the nascent domestic drone industry.

Novara went to the microphone at a ballroom in a Ritz-Carlton outside Washington D.C. on Wednesday and did something many in his business want to do: tenaciously challenge the drone regulators at the Federal Aviation Administration to loosen restrictions on unmanned planes over the United States. Judging from the reaction he received, and from the stated intentions of the drone advocates who convened the forum, the domestic-drone industry expects to do a lot more of that in the coming months.

There’s been a lot of hype around unmanned drones becoming a fixture over U.S. airspace, both for law enforcement use and for operations by businesses as varied as farmers and filmmakers. All have big implications for traditional conceptions of privacy, as unmanned planes can loiter over people’s backyards and snap pictures for far longer than piloted aircraft. The government is anticipating that drone makers could generate a windfall of cash as drones move from a military to a civilian role: Jim Williams of the Federal Aviation Administration told the Wednesday conclave of the Association for Unmanned Vehicle Systems International (AUVSI) that the potential market for government and commercial drones could generate “nearly $90 billion dollars in economic activity” over the next decade. $90 billion.

But there’s an obstacle: the Federal Aviation Administration.

The FAA has been reluctant to grant licenses to drone makers, out of the fear that the drones — which maneuver poorly, have alarming crash rates, are spoofable, and don’t have the sensing capacity to spot approaching aircraft — will complicate and endanger U.S. airspace. (Nor has it been transparent about the licenses it grants: the Electronic Frontier Foundation had to file a Freedom of Information Act request to learn who’s operating drones in America.) A push last year by Congress and the Obama administration directing the FAA to fully integrate unmanned aircraft into American skies hasn’t been nearly enough for the drone makers: the FAA is months late in designating six test sites for drones around the country.

“When will the test site selection begin? I’m sure that’s what all of you are asking now,” Williams, the head of the FAA’s drone integration department, told the AUVSI crowd. (It’ll start at the end of the month.)

Drone makers are also frustrated by the logic of existing FAA regulations. Currently, a drone weighing under 55 pounds, flying below 400 feet within an operator’s line of sight and away from an airport is considered a model airplane, and cleared to fly without a license. That is, if it’s not engaging in any for-profit activity — sort of. “A farmer can be a modeller if they operate their aircraft as a hobby or for recreational purposes,” Williams said.

Enter Novara, a 31-year old who owns a small drone business in Falls Church, Va. called Vanilla Aircraft. “If a farmer, who hopefully is profit-minded, can fly as a hobbyist an unmanned aircraft,” Novara challenged Williams, “why can’t I, as the owner of an unmanned aircraft company, fly as a hobbyist my own unmanned aircraft over property that I own? The guidelines before this [2012 legislation] were that any commercial intent is prohibited, but–”

“I didn’t change any guidelines,” Williams interrupted. “I didn’t say that any guidelines changed. I said that if a farmer as an individual wants to operate an unmanned aircraft according to the modeling rules, they can do that. The FAA rules are very clear about for-compensation and hire. If you’re going to operate an aircraft for compensation or hire, there’s a different set of rules that apply. So, you know, I’m not gonna split hairs over whether the farmer is making a profit or not, nor are we going to go look for him, but the bottom line is the rules are the rules and we have to enforce them until they’re changed.”

“So unmanned aircraft companies can operate R&D as long as they’re within the modeling guidelines?” Novara continued. Laughter and applause broke out among the hundreds of drone enthusiasts inside the Tyson’s Corner Ritz-Carlton.

“That’s why we have experimental certificates, to allow manufacturers–”

“The farmer doesn’t need an experimental certificate,” Novara pressed, “and everyone knows the experimental certificate process is available but not actually functional.”

Williams conceded that the current FAA rules “need to change,” since they were written for manned aircraft, “and that’s why we’re working hard to get the small unmanned aircraft rule out that will help resolve these issues. Until such time, we have to enforce the rules that are in place.”

“Is everyone else clear on this?” Novara asked, to bales of laughter. Some in the crowd shouted “No!” It felt like pent-up frustrations were being taken out on Williams, to the point where Novara added, apologetically, “I’m not trying to put this on you.”

But to the crowd at AUVSI, Novara was a hero. Outside the hall as he walked by, an older man slapped him on the shoulder and laughed, “Hey, troublemaker! I need to talk to you later!”

Expect a lot more troublemaking over the coming months. And if the domestic drone industry doesn’t succeed in getting the FAA to move fast enough for it, it’s prepared to pressure Congress to kick the FAA into gear. “Every company needs to call their Congressman,” said Peter Bale, the chairman of the board of AUVSI. April 9 is the organization’s “Day on The Hill,” when the drone industry intends to put the screws to legislators and their staff.

Novara says that he’s pessimistic that the lobbying will do any good for him: he expects it to benefit the aviation giants with established drone businesses with the government instead. (Especially as they’re the ones that make the campaign contributions.) He’s sympathetic to the FAA’s commitment to aviation safety: “I’m not advocating anarchy in the skies,” he says. But Novara sees a potential for the commercial domestic drone sector to get regulated out of business before a domestic drone boom actually starts.

“If we were all smart guys, we’d be in consumer products, right?” Novara tells Danger Room. “It’s what I like doing. There’s just no money in it.”

As the domestic-drone industry gets ready to press the FAA and Congress to loosen regulations on unmanned planes in U.S. airspace, there’s something to keep in mind. The FAA’s mandate is to protect the safety of air travel — not the privacy rights of Americans.

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Phys Ed: Getting the Right Dose of Exercise

Phys Ed

Gretchen Reynolds on the science of fitness.

Fitness Tracker

Marathon, half-marathon, 10k and 5K training plans to get you race ready.

A common concern about exercise is that if you don’t do it almost every day, you won’t achieve much health benefit. But a commendable new study suggests otherwise, showing that a fairly leisurely approach to scheduling workouts may actually be more beneficial than working out almost daily.

For the new study, published this month in Exercise & Science in Sports & Medicine, researchers at the University of Alabama at Birmingham gathered 72 older, sedentary women and randomly assigned them to one of three exercise groups.

One group began lifting weights once a week and performing an endurance-style workout, like jogging or bike riding, on another day.

Another group lifted weights twice a week and jogged or rode an exercise bike twice a week.

The final group, as you may have guessed, completed three weight-lifting and three endurance sessions, or six weekly workouts.

The exercise, which was supervised by researchers, was easy at first and meant to elicit changes in both muscles and endurance. Over the course of four months, the intensity and duration gradually increased, until the women were jogging moderately for 40 minutes and lifting weights for about the same amount of time.

The researchers were hoping to find out which number of weekly workouts would be, Goldilocks-like, just right for increasing the women’s fitness and overall weekly energy expenditure.

Some previous studies had suggested that working out only once or twice a week produced few gains in fitness, while exercising vigorously almost every day sometimes led people to become less physically active, over all, than those formally exercising less. Researchers theorized that the more grueling workout schedule caused the central nervous system to respond as if people were overdoing things, sending out physiological signals that, in an unconscious internal reaction, prompted them to feel tired or lethargic and stop moving so much.

To determine if either of these possibilities held true among their volunteers, the researchers in the current study tracked the women’s blood levels of cytokines, a substance related to stress that is thought to be one of the signals the nervous system uses to determine if someone is overdoing things physically. They also measured the women’s changing aerobic capacities, muscle strength, body fat, moods and, using sophisticated calorimetry techniques, energy expenditure over the course of each week.

By the end of the four-month experiment, all of the women had gained endurance and strength and shed body fat, although weight loss was not the point of the study. The scientists had not asked the women to change their eating habits.

There were, remarkably, almost no differences in fitness gains among the groups. The women working out twice a week had become as powerful and aerobically fit as those who had worked out six times a week. There were no discernible differences in cytokine levels among the groups, either.

However, the women exercising four times per week were now expending far more energy, over all, than the women in either of the other two groups. They were burning about 225 additional calories each day, beyond what they expended while exercising, compared to their calorie burning at the start of the experiment.

The twice-a-week exercisers also were using more energy each day than they had been at first, burning almost 100 calories more daily, in addition to the calories used during workouts.

But the women who had been assigned to exercise six times per week were now expending considerably less daily energy than they had been at the experiment’s start, the equivalent of almost 200 fewer calories each day, even though they were exercising so assiduously.

“We think that the women in the twice-a-week and four-times-a-week groups felt more energized and physically capable” after several months of training than they had at the start of the study, says Gary Hunter, a U.A.B. professor who led the experiment. Based on conversations with the women, he says he thinks they began opting for stairs over escalators and walking for pleasure.

The women working out six times a week, though, reacted very differently. “They complained to us that working out six times a week took too much time,” Dr. Hunter says. They did not report feeling fatigued or physically droopy. Their bodies were not producing excessive levels of cytokines, sending invisible messages to the body to slow down.

Rather, they felt pressed for time and reacted, it seems, by making choices like driving instead of walking and impatiently avoiding the stairs.

Despite the cautionary note, those who insist on working out six times per week need not feel discouraged. As long as you consciously monitor your activity level, the findings suggest, you won’t necessarily and unconsciously wind up moving less over all.

But the more fundamental finding of this study, Dr. Hunter says, is that “less may be more,” a message that most likely resonates with far more of us. The women exercising four times a week “had the greatest overall increase in energy expenditure,” he says. But those working out only twice a week “weren’t far behind.”

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Hearings Begin on Treasury Nominee

Doug Mills/The New York Times

Republicans have promised to grill Jacob J. Lew, center, President Obama’s nominee for Treasury secretary, over the government’s trillion-dollar deficits.

WASHINGTON — Jacob J. Lew, President Obama’s nominee for Treasury secretary, faced some fierce questioning on Wednesday from the Senate Finance Committee on his tenure at the bailed-out Citigroup and on an investment based in the Cayman Islands. But the even-tempered, bookish Mr. Lew parried the blows and appeared likely to win the committee’s approval and Senate confirmation.

“Frankly, I think you’ve done really well today,” said Senator Orrin G. Hatch of Utah, the ranking Republican on the committee. “My gosh, I have nothing but respect for people like you who give yourself to our government.”

Many questions from Senate Republicans seemed intended to rankle or ruffle Mr. Lew and score some political points. Senator Richard M. Burr of North Carolina asked about the Benghazi attack in Libya. Senator Charles E. Grassley of Iowa, referring to Mr. Lew’s lucrative but short time at Citigroup, commanded him to “explain why it might be morally acceptable to take close to a million dollars out of a company that was functionally insolvent and about to receive a billion dollars of taxpayer support.”

Mr. Lew calmly responded, “I was compensated for my work. I’ll leave for others to judge.”

He emphasized that he had worked in operations at Citigroup, albeit for a time at an investment unit that made proprietary trades on behalf of the bank.

“I was not in the business of making investment decisions,” he said. “I was certainly aware of things that were going on. I was working in a financial institution. I learned a great deal about the financial products. But I wasn’t designing them and I wasn’t opining on them.”

Aside from his time on Wall Street from 2006 to 2008, Mr. Lew has spent most of his career as a Democratic budget official — and the White House chose him in no small part for that experience. Much of his testimony focused on the trillion-dollar budget battle he would face immediately after becoming secretary. On March 1, automatic cuts to military and nonmilitary programs, known as the sequester, will start to take effect. Republicans and Democrats are both struggling to unwind or delay them, with hundreds of thousands of jobs at stake.

Mr. Lew said Congress needed to undo the sequester. He also said political dysfunction in Washington was threatening the real economy.

“The short-term-crisis, deadline-driven practices that we’ve seen over the last couple of years are undermining the economy,” Mr. Lew said. “It’s the first time in my nearly 30 years in public life that I felt that the actions of government were actually working against the goal of getting the economy moving.”

Mr. Lew also described tax reform as a top priority, with an eye to raising more money, lowering rates, reducing loopholes and generally rationalizing the code. He said cutting the tax rate on corporate income to 25 percent from its current 35 percent would be difficult. He also called for a minimum tax on foreign profits. And he said there was “room to work together” on creating a tax system in which income is taxed only in the country where it is earned, a change long sought by large American companies that operate around the world.

Over and over, Mr. Lew asserted his longtime budget bona fides and willingness to work with Republicans. “Working across the aisle while serving under President Clinton, I helped negotiate the groundbreaking agreement with Congress to balance the federal budget,” he said in his opening statement. He added that he had been involved in “almost every major bipartisan budget agreement over the last 30 years,” and that “the things that divide Washington right now are not as insurmountable as they might look.”

But as one of Mr. Obama’s main budget negotiators in the last few years, Mr. Lew has at times clashed with Republicans, particularly in the House. Former Treasury Secretary Timothy F. Geithner, not Mr. Lew, acted as a main negotiator during the talks over the automatic tax increases and spending cuts, the so-called fiscal cliff, that Congress cut a deal to avoid last month.

During the hearing, Republicans also targeted a money-losing investment Mr. Lew had made in a fund based in the Cayman Islands. Mr. Grassley noted that Mr. Obama had derided Ugland House, which provides an address for thousands of investment entities — including the fund Mr. Lew bought into — and said he saw some hypocrisy in Mr. Lew’s nomination, given the investment.

But the attacks seemed mostly tactical. “Jack Lew paid all of his taxes and reported all of the income, gains and losses from the investment,” said Eric Schultz, a White House spokesman. “There are no new facts that provide a basis for senators to reach a different conclusion about Mr. Lew’s nomination than they reached twice before in this administration.”

Some senators — including Jeff Sessions, Republican of Alabama, and Bernard Sanders, the left-leaning independent from Vermont — have said they do not support Mr. Lew. But it seemed unlikely that he would face a filibuster that might delay his confirmation or end his candidacy.

“Mr. Lew has been confirmed by the Senate three times already,” Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee, said in a statement released before the hearing, referring to Mr. Lew’s service in both the Obama and Clinton administrations. “I don’t expect there to be any reason why he should not be confirmed this time around as well.”

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Smoke, flame amid 'tactical operation' in Dorner shootout

One deputy has died, another is wounded.

Smoke and flames were visible from the area where fugitive former law enforcement officer Christopher Jordan Dorner was holed up in a Big Bear-area cabin after gun battles with law enforcement officers.

Law enforcement sources said "a tactical operation" was underway at the cabin but did not provide further details.

A tall plume of smoke was rising from the area where the standoff occurred. Hundreds of law enforcement personnel swooped down on the site near Big Bear following the gun battles between Dorner and officers that broke out in the snow-covered mountains where the fugitive had been eluding a massive manhunt since his truck was found burning in the area late last week.

PHOTOS: Manhunt for ex-LAPD officer

Law enforcement personnel in military-style gear and armed with high-powered weapons were involved in a tense standoff after Dorner took refuge in the cabin Tuesday afternoon. 

One San Bernardino County sheriff's deputy died of his wounds after he and another deputy were wounded in an exchange of gunfire outside the cabin in which hundreds of rounds were fired, sources told The Times. The deputy was airlifted to Loma Linda University Medical Center, where he died of his wounds.

The afternoon gun battle was part of a quickly changing situation that began after Dorner allegedly broke into a home, tied up a couple and held them hostage before fleeing with their white pickup truck, authorities said. 

PHOTOS: Manhunt for ex-LAPD officer

Then Dorner was allegedly spotted by a state Fish and Wildlife officer in the pickup truck, sources said. A vehicle-to-vehicle shootout ensued. The officer's vehicle was peppered with multiple rounds, according to authorities.

Dorner crashed his vehicle and took refuge in a nearby cabin, sources said. One deputy was hit as Dorner fired out of the cabin and a second deputy was injured when Dorner exited the back of the cabin, deployed a smoke bomb and opened fire again in an apparent attempt to flee. Dorner was driven back inside the cabin, the source said.

During the unprecedented manhunt, officers had crisscrossed California for days pursuing the more than 1,000 tips that poured in about Dorner's possible whereabouts -- including efforts in Tijuana, San Diego County and Big Bear -- and serving warrants at homes in Las Vegas and the Point Loma area of San Diego.

Statewide alerts were issued in California and Nevada, and border authorities were alerted. The Transportation Security Administration also had issued an alert urging pilots and other aircraft operators to keep an eye out for Dorner.

The search turned to Big Bear last week after Dorner's burning truck was found on a local forest road.

At the search's height, more than 200 officers scoured the mountain, conducting cabin-by-cabin checks. It was scaled back Sunday -- about 30 officers were out in the field Tuesday, the San Bernardino County Sheriff's Department said.

Dorner allegedly threatened "unconventional and asymmetrical warfare" against police in a lengthy manifesto that authorities say he posted on Facebook. The posting named dozens of potential targets, including police officers, whom Dorner allegedly threatened to attack, according to authorities.

Records state that the manifesto was discovered by authorities Wednesday, three days after the slaying of an Irvine couple: Monica Quan, a Cal State Fullerton assistant basketball coach, and her fiance, Keith Lawrence, a USC public safety officer.

Quan was the daughter of a retired LAPD captain whom Dorner allegedly blamed in part for his firing from the force in 2009.

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Snapchat Publishes Self-Destructing Link to Android Beta App

Snapchat published a link to a beta version of its Android app on Tuesday and, just as the wildly popular app’s shared photos and videos self destruct, this link too was built to be destroyed. But, we’ve found a simple way around it.

In the wee hours this morning, Snapchat posted a link to snapchat.com/beta, where Android users could download a beta version of its Android app provided their settings allowed it. The only difference between the beta and what’s available in Google Play is, of course, the ability to share video — a feature that has been previously exclusive to iOS users. After 2 a.m. Pacific Time, the beta download page, which was first reported by TechCrunch, no longer offered a download. Instead, the page displays a message that reads: “the Snapchat Android Beta is no longer available.”

That message pops up after a less-than-one-second delay. During this delay, the link to the Snapchat Android Beta app is present, and if you can tap it quick enough, you can download the app — as I did this morning at about 10 a.m.

Once you download the app, you’ll find that Snapchat on Android works pretty much like it does on iOS — just hold down the record button to shoot video or tap it once to snap a photo. I’ve been using the app on a Nexus 4 smartphone and it’s worked well expect for two unexpected crashes when trying to playback a video sent to me from a friend. This isn’t unexpected, after all, the app was just released, briefly this morning and is still a work in progress. But it looks like Snapchat, which recently raised $13.5 million in venture capital, is close to finally bringing its iOS and Android apps into parity.

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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.

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Katherine Bouton speaks about her own experience with hearing loss.

A transcript of this interview can be found here.

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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.

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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.

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This post has been revised to reflect the following correction:

Correction: February 12, 2013

An earlier version of this article misstated the location of the Medical College of Wisconsin. It is in Milwaukee, not Madison.

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Dow Ends Above 14,000 For Year’s Highest Close

The Dow Jones industrial average rose to its highest close of the year Tuesday, putting it within 1 percent of its record. Stocks gained after two big consumer brands posted impressive quarterly results.

The Dow closed up 47.46 points, or 0.34 percent, to 14,018.70 Tuesday. That is 146 points from its record close of 14,164.53 set in October 2007. The Standard & Poor’s 500-stock index gained 2.42 points, or 0.16 percent, to 1,519.43, also close to its record.

In a day of quiet trading, stocks were driven higher by the beauty products maker Avon and the luxury clothing and accessories company Michael Kors, whose results impressed investors. Consumer spending accounts for 70 percent of economic activity in the United States.

Financial and home-building stocks, led by the Bank of America and the Masco Corporation, which reported some of the day’s biggest gains, also lifted the averages.

The Dow has logged its best January in almost two decades after lawmakers reached a last-minute deal to avoid sweeping tax increases and spending cuts. Investors are also becoming more optimistic that the housing market is recovering and that hiring is picking up.

The Dow has advanced 7 percent this year and the S.& P. 500 is up 6.6 percent.

The 30-member Dow has closed above 14,000 twice this month. Before February, the index closed above that level just nine times in its history. The first time was in July 2007; the rest were in October of that year.

Shares of Avon rose $3.51, or 20 percent, to $20.79 after the company posted a fourth-quarter loss that was not as bad as analysts expected. The company also hopes to save $400 million by slashing costs. Michael Kors rose $5, or 9 percent, to $62 after reporting earnings that beat analysts’ predictions.

Bank of America was the biggest gainer on the Dow, adding 38 cents, or 3.25 percent, to $12.24. Stocks gaining in the index outnumbered those falling by a ratio of more than four to one.

About 70 percent of companies in the S.& P. 500 have reported earnings for the fourth quarter. Analysts are projecting that earnings will rise 6.4 percent for the period, an improvement from the 2.4 percent growth reported in the third quarter, according to S.& P. Capital IQ.

Investors may have become too optimistic about the outlook for stocks, said Uri Landesman, president of the hedge fund Platinum Partners.

“The market is priced for perfection,” Mr. Landesman said. “The odds of a disappointment are very, very high.”

Mr. Landesman predicts that the S.& P. 500 will climb past its record and rise as high as 1,600 by April before then slumping as low as 1,300 as company earnings start to disappoint investors. The record close for the S.& P. 500 is 1,565, reached in October 2007.

Investors were expected to be watching closely Tuesday night when President Obama delivered his annual State of the Union address. Mr. Obama was expected to focus on the economy, including job creation.

A decline in bond prices since the beginning of the year has also slowed. The Treasury’s 10-year note fell 4/32 to 96 28/32 on Tuesday and the yield rose to 1.98 percent from 1.96 percent late Monday. The yield was 1.71 percent at the beginning of the year.

In other trading Tuesday, the Nasdaq composite index was down 5.51 points, or 0.17 percent, to 3,186.49.

Among other stocks making big moves:

Coca-Cola, the beverage company, fell $1.05, or 2.7 percent, to $37.56 after reporting fourth-quarter revenue that fell short of analysts’ forecasts.

Masco, a home improvement and building product company, rose $2.22, or nearly 13 percent, to $20.01 after reporting earnings that beat analysts’ expectations, helped by strong demand in North America.

Dun & Bradstreet, a provider of credit and business data, fell $6.60, or 7.7 percent, to $78.68 after the company reported a fourth-quarter profit that was below market expectations.

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Dorner could face death penalty as criminal charges filed

As a massive manhunt for Christopher Jordan Dorner continued Monday afternoon, prosecutors with the Riverside County district attorney’s office filed murder and attempted murder charges against the ex-cop suspected of killing three people, including a Riverside police officer.

Dist. Atty. Paul Zellerbach said Dorner has been charged with one count of murder, with special circumstance allegations in the killing of a peace officer and the discharge of a firearm from a vehicle, in the death of Riverside police Officer Michael Crain, 34, a married father who served two tours in Kuwait as a rifleman in the U.S. Marines.

The special circumstances allegation makes Dorner eligible for the death penalty.

The former police officer also faces three additional counts of attempted murder of a peace officer for allegedly shooting and critically injuring Crain's partner and firing at two Los Angeles police officers who were in Corona to provide protection to one of Dorner's alleged targets. One of the LAPD officers was grazed on the head by a bullet.

The surviving officer, whose name has not been released, was "in a lot of pain" and will probably need several surgeries, Riverside Police Chief Sergio Diaz told reporters Monday. It was not yet known if he will be able to return to duty, Diaz said.

Shortly after the press conference, Los Angeles Mayor Antonio Villaraigosa ordered all city flags to be flown at half-staff effective Monday afternoon to honor Crain, a spokesman said.

Funeral services for Crain are scheduled for 10:30 a.m. Wednesday at Grove Community Church in Riverside. The flags will remain at half-staff until  after the services.

Meanwhile, the full-court-press search continued, though beyond several false sightings there has been little success so far in the hunt.

Investigators have received at least 700 tips about the fugitive ex-officer, and police are continuing to dangle a $1-million reward in the hope that someone will step forward.

There have been no confirmed sightings of Dorner since the manhunt began last Wednesday, and the last known evidence pointing to his whereabouts was his burning pickup truck discovered Thursday on a forest road in Big Bear, officials said.

Hundreds of investigators are continuing to follow up on potential leads, Los Angeles Police Department Lt. Andy Neiman said at a media briefing in downtown Los Angeles. The tips are being prioritized based on the information they contain.

Neiman also stressed that the ongoing search at Big Bear, although scaled back, remains a "critical piece of the investigation," saying authorities would remain on the mountain "until we've looked in every nook and cranny."

Neiman said he does not know how much the multiagency manhunt has cost thus far but described it as a "substantial cost to the city and taxpayers."

Investigators have also been in contact with Dorner's family, Neiman said, and are hopeful that a huge reward announced Sunday would lead to Dorner's arrest. His mother and sister cooperated with Irvine police on Friday when they searched the La Palma residence believed to be his last known address.

Authorities also continued to keep an eye on border crossings and airfields.

U.S. Customs and Border Protection agents at the San Ysidro and Otay Mesa ports of entry said they are monitoring all southbound lanes into Mexico, creating hours-long delays during peak crossing times.  Agents were also stationed at all pedestrian crossings into Tijuana, said Angelica De Cima, a customs  spokeswoman.

Mexican authorities have also bolstered security at the ports of entry and notified local, state and federal police to be on the lookout for Dorner, though there's no evidence he has crossed the border.

The Transportation Security Administration is also urging pilots and aircraft operators to be alert and to watch for stolen planes or suspicious passengers. The TSA said Dorner received flight training in the military, but the level of his expertise was unclear.

An Arcadia church school connected to Dorner's LAPD training officer canceled classes Monday as a precaution, officials said, while Big Bear schools reopened after the search there was scaled back.

The shootings attributed to Dorner began Feb. 3 with the deaths of Monica Quan, a Cal State Fullerton assistant basketball coach, and her fiance, Keith Lawrence, a USC public safety officer.The two had recently become engaged and were sitting in a car in Irvine when they were shot numerous times in the head.

Quan was the daughter of a retired LAPD captain whom Dorner apparently accused online of not representing him fairly at a hearing that led to his firing. In what police said was his posting to Facebook, Dorner allegedly threatened the retired captain and others he blamed for his termination.

Members of the USC community have also set up a memorial in front of the public safety department on campus that will stay in place until Lawrence is buried. Those who knew Lawrence recall him as a young law enforcement officer with a bright future.

More that 50 LAPD families remained under police guard Monday.

"Our commitment is to finding Mr. Dorner and making this city safe again," LAPD’s Neiman said.

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