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* * * * * TUESDAY, JUNE 18, 2013 ~ VOL. CCLXI NO. 141 WSJ.com HHHH $2 .00
WASHINGTON—The SupremeCourt on Monday delivered an-other rebuke to Arizona’s ag-gressive efforts to combat illegalimmigration, ruling that thestate violated federal law whenit added a proof-of-citizenshiprequirement to a federal voter-registration form nearly a de-cade ago.
The ruling, by a 7-2 vote,comes a year after the justicesstruck down most of a separateArizona law targeting illegal im-migrants and weeks after a fed-eral judge ruled that the sheriffin Phoenix was improperly usingracial profiling against Latinos.
The high court cases reinforcethat in areas where Washingtonholds constitutional authority—over immigration and, in Mon-day’s case, the rules for federalelections—states may not over-ride Congress’s judgment.
Arizona officials includingGov. Jan Brewer, a Republican,have long wrangled with the fed-eral government over how todeal with illegal immigration inthe state. State officials say theyhave had to take matters intotheir own hands because they
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Vital Signs
One gauge of manufac-turing ticked up in June,but the news isn’t all good.The Empire State Manufac-turing Survey’s index of gen-eral business conditions rosenine points this month to aseasonally adjusted 7.8. How-ever, when manufacturerswere asked about specific ar-eas such as new orders, ship-ments and numbers of em-ployees, they expressed lessoptimism than in May.Source: Federal Reserve Bank
of New York
2011 '13'12
Business Conditions Index
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U .K. prosecutors plan tofile criminal fraud charges
against former UBS and Citi-group trader Tom Hayes,who allegedly was at thecenter of efforts by severalbanks to manipulate rates. A1n The U.S. and the EU saidthey would start talks to builda free-trade agreement to boostgrowth and create jobs onboth sides of the Atlantic. A12nMexico’s president willseek in coming months toopen the state-run oil-and-gas industry to private in-vestment and competition. B3n A Supreme Court rulingcould lead to more challengesof deals that drugmakers striketo stave off the arrival of inex-pensive generic competition. B1n Stocks advanced on en-couraging housing and man-ufacturing data. The Dow in-dustrials climbed 109.67points, or 0.7%, to 15179.85. C1n China’s big banks are pres-suring the nation’s centralbank to free up funds to easean unusual cash squeeze inthe world’s No. 2 economy. C1n Two independent studiesfound a Medtronic bone-growth product for spinesurgeries was no better thana traditional operation. B3n Kabel Deutschland said ithas received an acquisitionproposal from Liberty Global,a move that could set off abidding war with Vodafone. B5n Daniel Loeb has boostedhis Sony stake, ratcheting upan effort to persuade the Jap-anese firm to launch an IPOof its entertainment arm. B5n Tesla’s effort to opencompany-run sales outlets isrunning up against a thicket ofstate franchise laws designedto protect auto dealers. B1nThe U.K.’s Co-op Bank askedbondholders to take heavylosses in a proposed “bail-in,” the first rescue plan ofits type for a British lender. C3n Clearwire has long beenthe U.S. wireless industry’smost embattled carrier, butthe company’s spectrum hasemerged as a prized asset. B1n Airbus got a boost for theflagging fortunes of its A380,with German leasing companyDoric placing a preliminaryorder for 20 of the jets. B4nDreamWorksAnimation hassigned a multiyear deal toproduce original series forNetflix that will involve over300 hours of programming. B3n The USDA plans to buysugar from growers in a bidto reduce a surplus that hasdriven down prices and threat-ened to spark loan defaults. C4nFederal prosecutors chargednine people with employingmore than 50 illegal immigrantsat 14 7-Eleven franchises inNew York and Virginia. A3n The EU is likely to approveICE’s purchase of NYSE Eu-ronext, removing the lastmajor hurdle to the deal. C3
nThe Supreme Court over-turned an Arizona voting law.The justices ruled that thestate violated U.S. lawwhen itadded a proof-of-citizenshiprequirement to a federal voter-registration form. In a 7-2 deci-sion, the court said the Arizonalaw interfered with Congress’sprerogative to set electionlaws. In another case, the jus-tices found 5-4 that a defen-dant’s silence under policequestioning sometimes can beused against him in trial.A1, A4The high court also agreedto review an important le-gal strategy used in hous-ing-discrimination cases.n Iran’s president-elect saidTehran would take steps to re-solve its nuclear standoff withtheWest. Such action, though,would require a shift by Su-preme Leader Khamenei. A9nObama and Putin clashedover Syria as world leadersbegan a summit, with Russiabacking the Assad regime andthe U.S. set to arm rebels. A12nFormer NSA contractorSnowden denied ties to Chinaand said his surveillance disclo-sures weremotivated by disap-pointment with Obama. A6nTreasury Secretary Lewsaid the IRS’s acting head willrecommend changes stem-ming from the uproar over tar-geting conservative groups. A8n Chinese dissident Chen isat the center of a struggle be-tween rival interests after helinked his departure from NYUto pressure from Beijing. A15n Beijing said a top NorthKorean official will visit Chinafor talks. That follows a Mayvisit by a Pyongyang aide. A14n U.S. colleges of educationchurn out teachers ill-pre-pared to work in classrooms,according to a report. A2nMontreal’s interimmayorwas arrested for alleged brib-ery and fraud, part of a corrup-tion crackdown in Quebec. A13n Turkey was relatively calmdespite a general strike thatdrew thousands of workers af-ter two days of clashes. A13nTens of thousands of Brazil-ians, angered by rising costs,crime and alleged corruption,demonstrated nationwide. A14n Czech Premier Necas re-signed, setting the stage fora likely interim governmentuntil elections next year. A14nAn attack on a school inNigeria by suspected membersof the Boko Haram Islamistsect left 11 people dead. A14n People who increased theirred-meat consumption weremore likely to develop Type 2diabetes, a study found. D2n Charitable giving in theU.S. rose just slightly lastyear, according to a survey. A2n Breast-cancer charity Ko-men named a new chief after anearly yearlong search. A2nNASA chose eight new as-tronauts, half of themwomen,the highest-ever percentage ofthe agency’s female recruits.A8
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The Quest to Cure Motion SicknessPLUS A Case for Peer Pressure
What’s News–i i i i i i
Next month, a major bridgeover the Schuylkill River just out-side Philadelphia will be declaredtoo unsafe for trains to use. Itswood ties are rotten and officialsfear the rails, expanding in thesummer sun, will pull the trestleapart.
The Southeastern PennsylvaniaTransportation Authority, orSepta, says the bridge hasn’t beenfixed because Septa is being re-quired to spend money on a differ-ent safety program. The otherprogram is designed to preventtrains from crashing into eachother.
Both goals—avoiding bridgefailures and avoiding train crashes—are top priori-ties, Septa says. But Septa argues that basic repairsare its more urgent need.
“We could have great signals,” says Rich Burnfield,Septa’s chief financial officer. “But we might not havesafe bridges to run those trains over.”
Similar complaints are beingmade nationwide, from NewYork’s sprawling transit system, tothe tiny 13-station Rail Runner Ex-press in NewMexico. The rail net-works are fighting a federal re-quirement to install anticrashsystems by the end of 2015. Theyargue their systems are alreadysafe and that the requirement si-phons money from repairs. Theywant Congress to push back thedeadline.
On Wednesday the SenateCommerce Committee will hold ahearing on railroad safety, includ-ing the progress on installing anti-crash gear. Overall, the mandateapplies to at least 25 U.S. passen-ger systems carrying nearly 564
million passengers annually.Central to the debate is the delicate matter of put-
ting a dollar value on saving a life. It is an age-oldregulatory predicament—namely, whether or notspending to make one thing safe steers money away
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LONDON—Prosecutors hereplan to file criminal fraud chargesagainst a former trader at UBSAG and Citigroup Inc. who alleg-edly was at the center of effortsby several banks to manipulateinterest rates, people familiarwith the plans said.
Tom Hayes, a 33-year-old Brit-ish citizen living near London,could face charges from the U.K.’sSerious Fraud Office as soon asTuesday. It would be the firstmove by U.K. authorities to seekcriminal penalties against anyoneallegedly involved in rigging theLondon interbank offered rate, orLibor, a benchmark used to set in-
terest rates on trillions of dollarsof financial contracts, rangingfrom mortgages to derivatives.
Mr. Hayes has long been a pri-mary target of the world-wide in-vestigation, partly because U.S.and British authorities say theyhave unearthed evidence that hisalleged efforts to nudge Liborhigher or lower were widespread,occurring on nearly a daily basisover several years.
Mr. Hayes hasn’t commentedon his alleged role in Libor ma-nipulation, beyond a January textmessage to the The Wall StreetJournal that said, “this goes muchmuch higher than me.” His lawyerdeclined to comment Monday.
Mr. Hayes, who spent much of
his career based in Japan, wasknown by colleagues as “RainMan” because of his sharp intel-lect and socially awkward de-meanor. He was regarded as oneof Tokyo’s top traders, and Citi-group made Mr. Hayes a $5 mil-lion job offer in 2009 to lure himaway from UBS. Citigroup firedthe trader less than a year later.
U.S. prosecutors charged Mr.Hayes and a former colleague inDecemberwith conspiracy to com-mit fraud by attempting tomanip-ulate Libor, but he wasn’t in theU.S. and hasn’t been extradited.U.S. and British authorities are ex-pected to file a flurry of criminalcharges stemming from their Libor
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BY DAVID ENRICH
FreshChargesReadiedIn Rate-Rigging Case
BY JESS BRAVINAND TAMARA AUDI
Top CourtQuashesArizonaVoter Law
*Excludes grade-crossing collisionsSource: Federal Railroad Administration
The Wall Street Journal
Declining DeathsRailroad accidents* have beendeclining over the past decade.
Deaths Injuries400
0
100
200
300
2002 ’04 ’06 ’08 ’10 ’12
BY TED MANN
Rail Safety and theValue of a Life
LEANING IN: At a global summit in Northern Ireland, President Barack Obama and Russian President Vladimir Putin clashed over Syria’s civil war. A12
Evan
Vucci/AssociatedPress
For Noted Greeks of Yore,The Global Metals Boom Is a Bust
i i i
High Prices Make Bronzes Targets of Theft;‘Zorba’ Creator, El Greco Missing
ATHENS—A global boom incommodity and scrap metalprices isn’t making Andreas Va-relas, deputy mayor of the Greekcapital, very happy these days.
Although the city’s recyclingdivision, which heheads, has more thantripled its annual prof-its in the past twoyears selling scrapmetal on the worldmarket, the boom alsohas a cost: thieveshave been pilfering thecity’s bronze statuesand melting themdown for cash.
Not to be confusedwith the priceless, an-cient Greek statuary that graceAthens’s many museums, the sto-len bronzes nevertheless repre-sent a roll call of more contem-porary heroes large and small—and easier pickings for thieves.
A modern metal bust of Zorbathe Greek’s creator, Nikos Ka-zantzakis, disappeared earlierthis year, so too the bronzed vis-age of El Greco, the 16th-centurySpanish renaissance artist, whowas born on the island of Crete.All told, 10 bronze busts have
disappeared inroughly as manymonths from the citycenter. They include:two World War IIGreek resistance fight-ers, one 19th-centuryrevolutionary warhero, a former mayorof Athens, the founderof the Greek boyscouts, and Cuban na-tional hero and liter-ary figure José Martí.
The bronze bust of LatinAmerica’s liberator, Simón Bolí-var, recently went missing butwas replaced. Though in onecase, a few years ago, thieves de-
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Nikos Kazantzakis
BY ALKMAN GRANITSAS
Obama and Putin Go Head-to-Head Over Syria at G-8 Meeting
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