New General Assembly to face many old issues

SPRINGFIELD—

— A new Illinois General Assembly was inaugurated Wednesday, but lingering beyond the flowers, family and speeches was a host of unfinished business.

The old Legislature adjourned Tuesday without fixing the state's broken public pension system. Also left unresolved were the divisive issues of same-sex marriage, gun regulation and gambling expansion. It'll be a while before such problems are tackled — the part-time lawmakers are scheduled to go home for a few weeks before returning to the Capitol.

In the House, Speaker Michael Madigan remains in charge, as he has for all but two of the past 30 years. In the Senate, President John Cullerton starts his fifth year running the show. Both Chicago Democrats now wield veto-proof majorities after many voters throughout the state opted against the Republican alternative in November legislative races.

That new Democratic power brings added pressure to perform was not lost on Cullerton, who said his party's 40-19 advantage over the GOP is the largest in the nation and in state history.

"I know a lot of you are thinking, 'This is great. We've got 40 members. I don't have to take any tough votes,'" Cullerton told his Democrats in a decorated Senate chamber as family members were entertained by a rendition of the 1960s tune "Feeling Good."

"But if everybody thought like that, we wouldn't get anything done, would we?" he said.

Madigan, the longest-serving speaker in state history, told House members that key issues remain "terribly contentious, terribly divisive."

"We have to call upon our inner resolves to dedicate ourselves to the solution of these problems, working cooperatively with the other members of the House of Representatives and the Senate," said Madigan, who leads a 71-47 Democratic majority.

Still, Madigan gave a grave assessment of the poorly funded pensions, saying he would "emphasize the absolutely serious nature of the fiscal condition."

In the waning days of the legislative session that concluded Tuesday, Madigan made what he said was a good-faith effort to spur pension talks by lifting a demand that suburban and downstate teacher retirement costs be shifted from the state to local school districts. That's now back on the table for Madigan, who called it a "free lunch."

"Serious, serious problem, and if we're serious about solving the problem, that must be addressed," Madigan said.

The cost-shift provision is adamantly opposed by Republicans and some suburban Democrats who maintain that it will lead to local property tax increases.

After failing to come up with a pension solution before the clock ran out this week, Cullerton said that Senate Bill 1, legislation often symbolizing the top agenda item, would be a pension measure combining aspects of unresolved Senate-passed and House-sponsored plans.

"The finances of our pension system have to be addressed in a fair and constitutional manner. The issue has lingered for generations and threatens to doom future generations if something isn't done," Cullerton said.

"We are on the verge of our state budget being turned into a financial plan that funds pension benefits, not essential services. Our investments in higher, elementary and secondary education and human services are increasingly crowded out — some might say, squeezed — by our pension costs," Cullerton said in a nod to Democratic Gov. Pat Quinn, whose grass-roots pension reform movement used a cartoon mascot, Squeezy, the Pension Python.

Though Cullerton cast a vote for Senate Republican leader Christine Radogno of Lemont for Senate president, as she did for him in a symbolic display of bipartisanship, Radogno said "many people in Illinois really don't have a lot of confidence in us and hopefully we can turn that around."

"We have to come to grips with some of the very real problems that we have," she said. "The underlying pillar that will allow us to begin to address them is solving the pension problem."

House Republican leader Tom Cross of Oswego called for "incredibly bold ideas and incredibly bold solutions."

"We're facing challenges in the state that we probably haven't seen as a General Assembly since the Great Depression," Cross said.

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Three top U.S. wireless carriers to embrace BlackBerry 10

LAS VEGAS (Reuters) – Three of the top U.S. cellphone carriers signaled this week that they would support Research In Motion’s BlackBerry 10 products, the first of which are due to be unveiled Jan 30, offering a hopeful sign for RIM’s comeback effort.

Executives at Verizon Communications , AT&T Inc and T-Mobile USA all said they are looking forward to the devices, which will be crucial for RIM’s chances of regaining lost ground from rivals such as Apple Inc and Samsung Electronics .

“We’re hopeful its going to be a good device,” Lowell McAdam, chief executive of Verizon Communications, majority owner of the biggest U.S. mobile service Verizon Wireless.

“We’ll carry it,” McAdam said in an interview at the Consumer Electronics Show in Las Vegas.

BlackBerry 10 is RIM’s next-generation mobile operating platform and it is preparing to launch new smartphones later this month. Word that major carriers will offer the devices is good news for RIM.

RIM, which once commanded the lead in the smartphone market, has rapidly lost ground to Apple’s iPhone and Samsung’s line of Galaxy products, especially in North American and European markets, as customers abandon its aging BlackBerry devices.

It has been testing the new BlackBerry 10 devices with carriers so they can assess their compatibility with networks.

No. 4 U.S. mobile provider T-Mobile USA, a unit of Deutsche Telekom , also plans to carry the new BlackBerry 10.

“We’re extremely optimistic that it’s going to be a successful product and our business customers are extremely interested in it,” Chief Executive John Legere said.

AT&T has promised to support the BlackBerry 10 platform, according to Chief Marketing Officer David Christopher, but he would not discuss specific devices.

However, AT&T handset executive Jeff Bradley made it clear that the No. 2 U.S. mobile operator would carry the phone.

“It’s logical to expect our current (BlackBerry) customers will have the best BlackBerry devices to choose from in the future,” Bradley said.

(Reporting By Sinead Carew; Editing by Cynthia Osterman)

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Award winning U.S. reporter Richard Ben Cramer dies of lung cancer

(Reuters) – Pulitzer-Prize winning correspondent and author Richard Ben Cramer, best known for his chronicle of the 1988 U.S. presidential election, died on Monday in Baltimore.

The cause of death was lung cancer, according to the Philadelphia Inquirer, where Cramer worked for seven years. He was 62.

Cramer won the 1979 Pulitzer Prize in international reporting for his coverage of Middle Eastern affairs for the Philadelphia Inquirer. Esquire named his 1986 profile of Boston Red Sox slugger Ted Williams one of the seven greatest stories published in the magazine’s history.

“What It Takes: The Way to the White House,” Cramer’s 1,000-page account of the 1988 presidential campaign, painted a rich portrait of American political luminaries such as former U.S. President George H. W. Bush, former Democratic presidential nominee Michael Dukakis, former Republican presidential nominee Bob Dole and current U.S. Vice President Joe Biden.

Though it received tepid reviews at the time of its 1992 publication, it was ultimately hailed as one of the best books of political journalism. New York University’s Arthur L. Carter Journalism Institute named “What It Takes” one of the top 100 works of U.S. journalism in the 20th century.

Cramer’s prolific writing career included stints at the Inquirer and Baltimore Sun newspapers, contributions to magazines like Esquire and Sports Illustrated, and multiple books on topics as diverse as the Israel-Palestine conflict and the life of New York Yankees legend Joe DiMaggio.

A native of Rochester, New York, Cramer earned degrees from Johns Hopkins University in Baltimore and Columbia University’s Graduate School of Journalism. At the time of his death, he was living in Chestertown, Maryland in an old white farmhouse that he picked out with the help of Biden, Politico reported in 2010.

Cramer had been working on a book about New York Yankee third baseman Alex Rodriguez, tentatively titled “The Importance of Being Alex: A Life with the Yankees,” before taking a hiatus in 2012, the New York Daily News reported in June.

(Reporting by Peter Rudegeair; Editing by Paul Thomasch and Andrew Hay)

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Pap Test May Prove Useful at Detecting More Types of Cancer, Study Suggests

The Pap test, which has prevented countless deaths from cervical cancer, may eventually help to detect cancers of the uterus and ovaries as well, a new study suggests.

For the first time, researchers have found genetic material from uterine or ovarian cancers in Pap smears, meaning that it may become possible to detect three diseases with just one routine test.

But the research is early, years away from being used in medical practice, and there are caveats. The women studied were already known to have cancer, and while the Pap test found 100 percent of the uterine cancers, it detected only 41 percent of the ovarian cancers. And the approach has not yet been tried in women who appear healthy, to determine whether it can find early signs of uterine or ovarian cancer.

On the other hand, even a 41 percent detection rate would be better than the status quo in ovarian cancer, particularly if the detection extends to early stages. The disease is usually advanced by the time it is found, and survival rates are poor. About 22,280 new cases were expected in the United States in 2012, and 15,500 deaths. Improved tests are urgently needed.

Uterine cancer has a better prognosis, but still kills around 8,000 women a year in the United States.

These innovative applications of the Pap test are part of a new era in which advances in genetics are being applied to the detection of a wide variety of cancers or precancerous conditions. Scientists are learning to find minute bits of mutant DNA in tissue samples or bodily fluids that may signal the presence of hidden or incipient cancers.

Ideally, the new techniques would find the abnormalities early enough to cure the disease or even prevent it entirely. But it is too soon to tell.

“Is this the harbinger of things to come? I would answer yes,” said Dr. Bert Vogelstein, director of the Ludwig Center for Cancer Genetics and Therapeutics at Johns Hopkins University, and a senior author of a report on the Pap test study published on Wednesday in the journal Science Translational Medicine. He said the genomes of more than 50 types of tumors had been sequenced, and researchers were trying to take advantage of the information.

Similar studies are under way or are being considered to look for mutant DNA in blood, stool, urine and sputum, both to detect cancer and also to monitor the response to treatment in people known to have the disease.

But researchers warn that such tests, used for screening, can be a double-edged sword if they give false positive results that send patients down a rabbit hole of invasive tests and needless treatments. Even a test that finds only real cancers may be unable to tell aggressive, dangerous ones apart from indolent ones that might never do any harm, leaving patients to decide whether to watch and wait or to go through surgery, chemotherapy and radiation with all the associated risks and side effects.

“Will they start recovering mutations that are not cancer-related?” asked Dr. Christopher P. Crum, a professor at Harvard Medical School who was not involved in the research.

But he also called the study a “great proof of principle,” and said, “Any whisper of hope to women who suffer from endometrial or ovarian cancer would be most welcome.”

DNA testing is already performed on samples from Pap tests, to look for the human papillomavirus, or HPV, which causes cervical cancer. Dr. Vogelstein and his team decided to try DNA testing for cancer. They theorized that cells or DNA shed from cancers of the ovaries and the uterine lining, or endometrium, might reach the cervix and turn up in Pap smears.

The team picked common mutations found in these cancers, and looked for them in tumor samples from 24 women with endometrial cancer and 22 with ovarian cancer. All the cancers had one or more of the common mutations.

Then, the researchers performed Pap tests on the same women, and looked for the same DNA mutations in the Pap specimens. They found the mutations in 100 percent of the women with endometrial cancer, but in only 9 of the 22 with ovarian cancer. The test identified two of the four ovarian cancers that had been diagnosed at an early stage.

Finally, the team developed a test that would look simultaneously for cancer-associated mutations in 12 different genes in Pap samples. Used in a control sample of 14 healthy women, the test found no mutations — meaning no false-positive results.

Dr. Luis A. Diaz, the other senior author of the report and an associate professor of oncology at Johns Hopkins, called the research a step toward a screening test that at first blush appears very effective at detecting endometrial cancer, though obviously less so at finding ovarian cancer.

“Probably one of the most exciting features of this approach,” Dr. Diaz said, “is that we wanted a test that would seamlessly integrate with routine medical practice that could be utilized with the same test that women get every day all over the world, the Pap smear.”

But, he added: “We can’t say it’s ready for prime time. Like all good science, it needs to be validated.”

He and other members of the team said it might be possible to improve the detection rate for ovarian cancer by looking for more mutations and by changing the technique of performing Pap tests to increase the likelihood of capturing cells from the ovary. The change might involve timing the test to a certain point in a woman’s monthly cycle, using a longer brush to collect cells from deeper within the cervix or prescribing a drug that would raise the odds of cells being shed from the ovary.

The technique also needs to be tested in much larger groups of women, including healthy ones, to find out whether it works, particularly at finding cancers early enough to improve survival. And studies must also find out whether it generates false positive results, or identifies cancers that might not actually need to be treated.

Michael H. Melner, a program director in molecular genetics and biochemistry for the American Cancer Society, called the research “very promising,” in part because it is based on finding mutations.

“It tells you not just that cancer is there, but which mutation is there,” Dr. Melner said. “As we learn more and more about which mutations are associated with more or less severe forms of cancer, it’s more information, and possibly more diagnostic.”

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Mortgage lending rules to limit loan options

The Consumer Financial Protection Bureau is planning a Thursday morning announcement of new lending rules that it hopes will move the mortgage market toward a sustainable middle ground, somewhere in between the free-wheeling days of no-documentation loans and the current, restrictive environment.

For most borrowers, the rules will mean no more interest-only mortgages, no more loans where the principal due increases over time, no more loans that carry a balloon payment and no more loan terms of more than 30 years. In addition, would-be borrowers will be less likely to qualify for a mortgage unless their total debts account for no more than 43 percent of their monthly gross income.

These so-called qualified mortgages are expected to be embraced by lenders, because by following the criteria, they will have a better chance of shielding themselves from lawsuits from consumers whose loans go bad.

The provisions of the Ability-to-Repay rule, which follow closely the lines of protections called for in 2010's Dodd-Frank legislation, will take effect in January 2014. Richard Cordray, the bureau's director, is expected to detail the regulations at a public hearing Thursday in Baltimore.

A senior official of the consumer protection bureau, the agency charged with implementing the new mortgage requirements, said the lending standards are not much different than the guidelines currently in place. Still, while the rules might ease uncertainty among lenders who have worried about the scope of the regulations, it could cause additional anxiety for consumers trying to qualify for a home loan.

"It will add some certainty to the mortgage industry about what the rules of the road are going forward," said Guy Cecala, president and CEO of Inside Mortgage Finance, a trade publication. "But it basically says we want everybody to make plain-as-vanilla mortgages.

"The legitimate concern is that this will cement the tight mortgage underwriting standard that we currently have in place, and most people agree, from (Federal Reserve Chairman) Ben Bernanke to the person on the street, that they're too tight."

To not upend the housing market's recovery and assist consumers who can't meet the 43 percent debt-to-income threshold, the agency said it was establishing a second, temporary category of qualified mortgages that meet most of the new guidelines but also would qualify to be purchased, guaranteed or insured by Fannie Mae, Freddie Mac or various other federal agencies. The temporary provision would end as those agencies issue their own qualified mortgage guidelines or if Fannie and Freddie end their government conservatorship or in seven years.

The bureau wanted to give the mortgage market time to adjust to the new standards and ensure that well-qualified people could still buy homes, the agency official said.

For all types of mortgages, to help determine a borrower's ability to repay, lenders must look at eight factors. They include current income and assets, employment status, credit history, the mortgage's monthly payment, other loan payments associated with the property, monthly payments for such things as property taxes, other debt obligations and a borrower's monthly debt-to-income ratio.

Teaser interest rates no longer will be allowed to be used to judge a borrower's creditworthiness. For homebuyers who apply for adjustable-rate mortgages, the monthly payments no longer can be computed using just an introductory rate that might be artificially low. Instead, the monthly payment must be computed using whichever is higher, the fully indexed rate or the introductory rate.

In addition to the other rules defining a qualified mortgage, the bureau also mandated that a qualified loan cannot charge to the consumer points and fees that exceed 3 percent of the total loan amount.

The mortgage lending industry has worried for months about the rules and heavily lobbied for protection from lawsuits brought by borrowers.

Under the new rules, lenders who make qualified mortgages to well-qualified borrowers that carry a lesser chance of defaulting could be shielded from lawsuits from these prime borrowers who say the lender did not satisfy the ability-to-repay requirements. Riskier, subprime borrowers could challenge the lender's assessment of their ability to repay the loan but borrowers would have to prove that a lender didn't adequately factor in living expenses and other debts.

"They appear to favor lenders' interests above consumers," said Diane Thompson, of counsel at the National Consumer Law Center. "You have to prove what's in the creditor's records. It may be that no homeowners are able to challenge it. Otherwise, you're relying on regulatory oversight, and we saw how well that worked."

The rules, in various forms, have been in the works for years. Other agencies continue to formulate their own rules, and one still in development about what constitutes a qualified residential mortgage might increase a consumer's mortgage down payment in order to ensure that borrowers have more "skin in the game."

mepodmolik@tribune.com

Twitter @mepodmolik

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Attorney: Poisoned lottery winner's widow has 'nothing to hide'

The widow of a West Rogers Park man who died of cyanide poisoning weeks after winning a $1 million lottery jackpot was questioned extensively by Chicago police last month after the medical examiner's office reclassified the death as a homicide, her attorney told the Tribune on Tuesday.

Authorities investigating the death of Urooj Khan also executed a search warrant at the home he had shared with his wife, Shabana Ansari, according to Steven Kozicki, her attorney. Ansari later was interviewed by detectives for more than four hours, answering all their questions, the attorney said.

"She's got nothing to hide," Kozicki said.

The mystery surrounding Khan's death — first reported by the Tribune in a front-page story Monday — has sparked international media interest.

Cook County authorities said Tuesday that they plan to go to court in the next few days for approval to exhume Khan's remains at Rosehill Cemetery. In a telephone interview Tuesday, Medical Examiner Stephen J. Cina said he sent a sworn statement to prosecutors laying out why the body must be exhumed.

"I feel that a complete autopsy is needed for the sake of clarity and thoroughness," Cina said.

Sally Daly, a spokeswoman for the state's attorney's office, confirmed that papers seeking the exhumation would be filed soon in the Daley Center courthouse.

Khan, who owned a dry cleaning business on the city's North Side, died unexpectedly in July at 46, just weeks after winning a million-dollar lottery prize at a 7-Eleven store near his home. Finding no trauma to his body and no unusual substances in his blood, the medical examiner's office declared his death to be from natural causes and he was buried without an autopsy.

About a week later, a relative told authorities to take a closer look at Khan's death. By early December, comprehensive toxicology tests showed that Khan had died of a lethal amount of cyanide, leading the medical examiner's office to reclassify the death a homicide and prompting police and prosecutors to investigate.

While a motive has not been determined, police have not ruled out that Khan was killed because of his big lottery win, a law enforcement source has told the Tribune. He died before he could collect the winnings — about $425,000 after taxes and because he decided to take a lump-sum payment.

According to court records obtained by the Tribune, Khan's brother has squabbled with Ansari over the money in probate court. The brother, Imtiaz, raised concern that because Khan left no will, his 17-year-old daughter from a previous marriage would not get "her fair share" of her father's estate. Khan and Ansari did not have children.

Al-Haroon Husain, an attorney for Ansari in the probate case, said the money was all accounted for and the estate was in the process of being divided up by the court. Under Illinois law, the estate typically would be split evenly between the surviving spouse and Khan's only child, he said.

Kozicki, Ansari's criminal defense attorney, said his client adored her husband and had no financial interest in seeing harm come to him.

"Now in addition to grieving her husband, she's struggling to run the business that he essentially ran while he was alive," Kozicki said. "Once people analyze it, they (would) realize she's in a much worse financial position after his death than she was before."

Reached by phone Tuesday evening at the family dry cleaners, Ansari denied reports that she had fed her husband a traditional Indian meal of ground beef curry before he died. She said he wasn't feeling well after awakening in the middle of the night. She said he sat in a chair and soon collapsed. She then called 911.

Chicago police Superintendent Garry McCarthy, speaking Tuesday at an unrelated news conference, remarked that he had never seen a case like this in 32 years in law enforcement.

"So I'll never say that I've seen everything," he told reporters.

jmeisner@tribune.com

jgorner@tribune.com

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The next CIA’s director’s challenges

qWhat John Brennan faces after confirmation

I see no reason why the Senate won’t confirm John Brennan, President Obama‘s chief counter-terrorism adviser, to be the next director of the CIA. There will be pro forma inquiries into his past entanglements with the NSA’s domestic surveillance program and his knowledge and approval of the CIA’s “Greystone” torture protocols, but he will have ready answers for the questions and he will say plenty in private to sooth the concerns of those whose concerns need to be soothed.

Assuming Brennan becomes the DCIA, as he will thenceforth be acronymed, he’ll inherit a powerful spy agency facing a set of tough questions. Actually, every CIA director since the advent of the age of Al Qaeda has more or less dealt with these same issues. The daily demands of the job require tactical thinking and leave little room for attention to the bigger picture.

SEE MORE: Why Django is better than Lincoln

# Is the CIA a paramilitary force? Should it go back to its roots as a source of intelligence and warning?  You see this question phrased as such a lot, but it ignores virtually all of the CIA’s history, except for a period in the 1990s when the “Peace Dividend” and director John Deutch pulled back significantly on the agency’s ambit. The CIA has always been both and will always be both. From the start, the agency has very broadly and probably (in an affront to the original understanding of the National Security Act of 1947) interpreted its mandate to do stuff to further American interests abroad, even and often to the point of violence, as Adam Elkus reminds us today. The question really is one of authorities and chains of command: how are American resources properly allocated? Are the mechanisms of accountability sufficient? Is there really anything better than an ad hoc framework for determining whether combined CIA-military operations are really CIA operations or military operations?

# There is no such thing as secrecy anymore, at least not in the way that the CIA has understood the term. We live in an era of open source everything, which means that the agency’s crown jewels have very short lifespans and that public interest in what the CIA does is bound to increase exponentially. The agency has to figure out a posture on the New Secrecy that satisfies its mission while accepting the Open Source reality. Younger analysts have different expectations of how to gather and collect information and are less satisfied with the complicated and fairly broken traditional secrecy rules.

# Similarly, it is exceedingly difficult for would-be spies to come to the CIA without significant social media trails, and it is very hard for them to work in the world without leaving electromagnetic detritus for everyone to exploit and discover. How can the CIA’s case officers maintain their cover identities? Is the era of fully-fledged cover identities over? Will the CIA continue to rely (and over-rely) on foreign intelligence services for critical human intelligence operations? 

# The same Open Source world that hinders CIA secrecy also provides the agency with far more data than it ever imagined having. The CIA will never face a problem of not having enough intelligence. It will face the problem of having too much and not knowing what it has or how to use it.

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“From Broadway With Love” benefit concert raising money for Sandy Hook victims

LOS ANGELES (TheWrap.com) – Broadway is lending a helping hand to the victims of the Sandy Hook Elementary School shooting.

Brett Boles, author of the musical “Foreverman,” and Tony Award-winning producer Van Dean have organized a benefit concert later this month to raise money for United Way of Western Connecticut’s Sandy Hook School Support Fund.

“From Broadway with Love: A Benefit Concert For Sandy Hook,” featuring song, dance and other appearances from some of Broadway‘s biggest names, will take place at the Palace Theater in Waterbury, Conn., on January 28. Waterbury is 20 miles from Newtown.

A long list of Tony Award-winning or nominated performers are scheduled to appear, including Brian Stokes Mitchell (“Kiss Me Kate”), Stephen Schwartz (“Wicked”), Marc Shaiman (“Hairspray”) and Christine Ebersole (“Grey Gardens”).

“The outpouring of love and support from the Broadway community has been incredibly heartwarming,” Dean said in a statement. “Everyone was looking for a way they could use their talents to bring something positive to the community. ‘From Broadway With Love’ provides them with the perfect outlet to do so.”

Although the evening will be free for Sandy Hook families and first responders, some tickets will be available to the public for $ 50 to $ 250.

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Global Update: China Moves to Prevent Spread of Yellow Fever From Africa

In a move that underlines how many Chinese citizens now work in Africa, China’s quarantine officials recently urged greater efforts to make sure that a yellow fever epidemic now raging in Sudan does not come back to China.

Local health authorities were asked to scan all travelers arriving from Sudan for fevers. Chinese citizens planning travel to Sudan were advised to get yellow fever shots. Customs officers were told that containers arriving from Sudan might have stray infected mosquitoes inside.

Sudan’s epidemic is considered the world’s worst in 20 years. Sweden, Britain and other donors have paid for vaccinations. The United States Navy’s laboratory in Egypt has helped with diagnoses.

Estimates of the number of Chinese working in Africa, many in the oil and mining industries or on major construction projects, range from 500,000 to 1 million. Experts on AIDS have previously warned that the workers could become a new means of bringing that disease to China, which has a low H.I.V.-infection rate.

ProMED-mail, a Web site that follows emerging diseases, has tracked reports about the Sudan outbreak, with its moderators adding valuable context. China’s mosquito-killing winters make a large yellow fever outbreak there unlikely, moderators said. But Sudan’s containment efforts are troubled. For example, vaccinated people cannot get cards proving they have had shots, but the cards are reported to be for sale at police checkpoints.

Australia’s now-endemic dengue fever, according to ProMED moderators, may have come from mosquitoes arriving in containers from East Timor.

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Rosenthal: New Sears boss hopes to be a new kind of merchant

He's been a big-time investor in the retail sector for more than 15 years and was chairman of Kmart after it emerged from bankruptcy about a decade ago. A few years later, he paired it with once-dominant Sears.

Yet even as Eddie Lampert is poised next month to add the role of chief executive to that of chairman at retail giant Sears Holdings, he's still characterized generally as just a hedge fund guy.

This, Lampert suggested in a rare interview Tuesday, fails to acknowledge changes in the 21st century retail industry as well as the Hoffman Estates-based company he seeks to revive.

"The most successful guy in retail right now is Jeff Bezos, and he was a (Wall Street) hedge fund guy," Lampert, 50, said by phone. "I think a lot of times when people talk about merchants it's almost a nostalgic look back at the time where the world moved at a very different pace and information was very different."

Lampert has decided to succeed Lou D'Ambrosio, who is leaving to tend to a family health issue. Critics complain that this is just the latest missed opportunity to have a world-class merchandiser run the struggling company.

"So it's Eddie Lampert who's going to be there, and he's a smart guy and insightful when it comes to doing deals, but he doesn't have a track record at running a retail operation," said Evan Mann, an analyst with Gimme Credit.

Lampert argues that a new kind of sales, one that encompasses e-commerce, traditional bricks-and-mortar, mobile and more, requires a new kind of merchant.

"Trying to move the volume of products we're talking about from place to place to get it ultimately into the customer's hands, to price these items, to market these items, I think the retail business is incredibly complex," Lampert said. "But if you get it right, it's a beautiful thing."

"I'm not denying that there are still great merchants," he said. "But to operate a company of the size of Sears Holdings or Wal-Mart or Target or Home Depot or Lowe's, you need a combination of skills, and each of those skills needs to be sufficiently strong."

Lampert can make the case that he is a modern-day merchant. He still hasn't proved he's a good one. For six successive years, Sears Holdings has seen no top-line growth, due to slipping sales and store closings.

"I understand and I appreciate people looking at same-store sales as an indicator," D'Ambrosio said during the call. "I think when you look at the financial shape of the company, there's clear progress."

D'Ambrosio noted four consecutive quarters of EBITDA growth and the fact the company raised $1.8 billion of liquidity in 2012 while reducing net debt by $400 million.

Overshadowed in Monday's news of the leadership change were other glimmers of hope: Sears' domestic comparable-store sales for the nine weeks ended Dec. 29 were up 0.5 percent.

Meanwhile, the strategy of technological convergence, which included a loyalty program, has yielded a wellspring of consumer data and changed customers' relationship with the retailer. Kmart and U.S. Sears' online sales are up 20 percent.

"It's never a good time for a transition, but what I would tell you is, five years ago, we put in place a more distributed leadership structure," Lampert said. "Despite what people may have said or written, there is a difference between a chairman role and a CEO role, and I've never been in the CEO role in this company."

D'Ambrosio predicted Lampert will offer strategic continuity. But handicappers have long questioned whether the old horse had any giddy-up left in its step to catch up to and keep pace with Wal-Mart, Target and Amazon.

And not to beat a dead metaphor, but the suspicion among many all along has been that Lampert saw neither a thoroughbred nor tireless workhorse in the parent of Sears and Kmart as so many parts to be cut up, boiled down and sold off.

"I was very clear why we put these companies together and what our goals were," Lampert said. "It was really to allow both Sears and Kmart to compete in what I thought was going to be a more challenging but evolving industry. The framework which was placed upon me and the company was: 'OK, this was all about real estate. It's about selling real estate.' Then when we didn't sell real estate, it became: 'Well, they missed the opportunity in 2006, 2007 to sell the real estate.'

"I've never denied there was substantial real estate value in the company," he said. "Suffice it to say that … the most value can be created if we actually transform it."

Fortune in 2006 called Lampert "the best investor of his generation." A Forbes contributor last year ranked him No. 2 on a list of the worst CEOs, and while acknowledging Lampert was Sears Holdings' chairman and not CEO, the contributor argued that "Lampert has called the shots, he's missed every target" and that he had "destroyed Sears."

D'Ambrosio said he doesn't recognize the Lampert he sometimes sees described by critics.

"I've never worked with somebody who understands business models and how to re-imagine a business model and has a view on the way buying will change going forward better than Eddie," D'Ambrosio said.

It turns out, his image is the thing he's least interested in selling at Sears Holdings.

"I do think what we've been trying to do at the company has been very clear," Lampert said. "If people want to doubt it or put a spin on it, they're entitled to do it. We just have to perform."

philrosenthal@tribune.com

Twitter @phil_rosenthal

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