Wall Street Sheds Morning Gains

After beginning the day with a partial rebound from Monday’s steep drop, stocks on Wall Street gave up some of their gains Tuesday in the course of Congressional testimony by Ben S. Bernanke, the Federal Reserve chairman.

In afternoon trading, the Standard & Poor’s 500-stock index was up 0.1 percent, while the Dow Jones industrial average rose 0.6 percent. The Nasdaq composite index was down 0.2 percent.

In his prepared testimony before the Senate Banking Committee, Mr. Bernanke defended the Fed’s bond-buying program and said the economy was growing at a “moderate if somewhat uneven pace.” Senators were questioning him on the prospects for a global currency war and the potential economic effects of the latest budget impasse in Congress.

The major indexes fell more than 1 percent on Monday, with the S.&P. 500 recording its biggest daily drop since November. The falloff came as investors fretted that if Italy does not undertake reforms, the euro zone could once again be destabilized. The Euro Stoxx 50 index was off more than 3 percent in late trading Tuesday.

Groups in Italy opposed to economic reforms posted a strong showing in the recent election, resulting in a political deadlock with a comedian’s protest party leading the poll and no group securing a clear majority in Parliament.

“We’ve gone to an environment of political stability to instability, and until we get some type of clarity over who is in charge, which could take days, the market will have renewed concerns,” said Art Hogan, managing director of Lazard Capital Markets in New York.

Still, market participants speculated that a coalition government would eventually emerge in Italy and ease worries about a new euro zone crisis.

The early market gains suggested the recent trend of investors buying on dips would continue. Last week, concerns that the Federal Reserve might roll back its stimulus efforts earlier than expected prompted a sharp two-day decline, though equities recovered most of the lost ground by the end of the week.

“Investors are taking advantage of the drop, and once some kind of coalition government is formed, most of our concerns will be put to rest,” Mr. Hogan said.

Home Depot reported adjusted earnings and sales that beat expectations, sending shares up more than 5 percent.

Macy’s rose 3.1 percent after stating it expected full-year earnings to be above analysts’ forecasts because of strong sales in the holiday period.

For the benchmark S.&P. 500, 1,500 points will be watched as a key benchmark after the index closed below it on Monday for the first time since Feb. 4, with selling accelerating after falling below it. An inability to break back above it could portend further losses.

Financial shares may be among the most volatile, as that sector is closely tied to the pace of global economic growth. Morgan Stanley was one of the top percentage losers on the S.&P. on Monday, dropping more than 6 percent on concerns about the company’s exposure to European debt. It was up 0.4 percent.

This article has been revised to reflect the following correction:

Correction: February 26, 2013

Because of an editing error, an earlier version of this article misidentified the Senate panel before which Ben S. Bernanke, the Federal Reserve chairman, was testifying Tuesday. It was the Banking Committee, not the Finance Committee.

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Oscars 2013: An 'Argo' night at Academy Awards

For the second straight year, the movie business fell for itself.

"Argo" — in which a Hollywood producer and makeup artist help engineer the rescue of six Americans from Iran — won the top prize at the 85th Academy Awards, one year after the silent film story "The Artist" took the best picture Oscar.

"I never thought I'd be back here. And I am," producer-director Ben Affleck said in accepting the best picture trophy Sunday night, 15 years after he won an original screenplay Oscar for "Good Will Hunting" and then saw his career fall into a tailspin that included "Gigli" and "Daredevil."

FULL COVERAGE: Oscars 2013 | Winners

"It doesn't matter how you get knocked down in life. That's going to happen," said Affleck, who wasn't nominated for directing "Argo," one of nine films in the best picture race. "All that matters is that you've got to get up."

"Argo," which became the first movie to win best picture without its director being nominated since 1989's "Driving Miss Daisy," collected two other Academy Awards, for editing and adapted screenplay. But it was not the evening's most recognized film: That honor went to Ang Lee's "Life of Pi," which won four Oscars — for directing, visual effects, cinematography and score.

"Thank you, movie god," said Lee, whose movie came into the evening with 11 nominations, one behind Steven Spielberg's "Lincoln." The film about the 16th president helped Daniel Day-Lewis make movie history, as he became the only man to ever win three lead actor statuettes. "Lincoln" won one other prize, for production design.

The song-and-dance heavy ceremony, hosted by Seth MacFarlane, hewed closely to a traditional awards show script, but there were several surprises. First Lady Michelle Obama, who joined the ABC telecast from the White House, announced "Argo" as the best picture. And the ceremony featured only the sixth tie in Oscar history and the first since 1994, with the sound editing award split between "Zero Dark Thirty" and "Skyfall." For the first time in Oscar history, six best picture nominees were $100-million blockbusters.

The ceremony was billed as a tribute to music in film, and boasted a number of extravagant musical numbers — including a medley of songs from movie musicals and an appearance by Barbra Streisand, who sang "The Way We Were." The telecast also paid homage to the long running James Bond series, with Adele singing the theme from "Skyfall" and Dame Shirley Bassey performing the theme from 1964's "Goldfinger."

Oscars 2013: Nominee list | Red carpet | Highlights

Jennifer Lawrence, 22, nabbed the lead actress prize for her role as an emotionally unstable widow in "Silver Linings Playbook" — and promptly tripped over her long dress walking up the stairs to accept her statuette. The crowd quickly gave her a standing ovation. "You guys are just standing up because you feel bad that I fell and that's embarrassing," Lawrence said to the applauding crowd at the Dolby Theatre.

The evening's very first award — for supporting actor — was a shocker, with long shot Christoph Waltz winning for his role as bounty hunter Dr. King Schultz in Quentin Tarantino's "Django Unchained" over favored contenders Robert De Niro ("Silver Linings Playbook") and Tommy Lee Jones ("Lincoln"). Waltz, who won the same award three years ago for Tarantino's "Inglourious Basterds," dedicated his prize to his writer-director, who also won the Oscar for original screenplay. "We participated in a hero's journey — the hero being Quentin," Waltz said.

Tarantino pulled off a mild surprise with the screenplay triumph for his slave-revenge tale. He dedicated his award to his eclectic cast of actors. "I actually think if people know my movies 30-50 years from now it's because of the characters I create," Tarantino said.

Anne Hathaway's supporting actress win for her emotionally raw portrayal of a doomed seamstress in "Les Misérables" was hardly as startling. The 30-year-old had been the odds-on favorite to win since the film first screened for members of the Motion Picture Academy in late November. "It came true," she stage-whispered as she picked up her trophy for her performance, the centerpiece of which is the lament "I Dreamed a Dream."

Oscars 2013: Backstage | Quotes | Best & Worst moments

Some of the evening's wins were bittersweet.

The animated feature Oscar was shared by "Brave" directors Mark Andrews and Brenda Chapman, an unusual pairing given that Chapman was fired from the Pixar Animation Studios film and replaced by Andrews in the middle of production. "Making these are a struggle — it's a battle, it's a war," Andrews said backstage. "I was very happy it was him who took my place," Chapman said.

Rhythm & Hues Studios, the company behind "Life of Pi's" visual effects win, recently filed for bankruptcy and laid off hundreds of its employees. As Oscar winner Bill Westenhofer addressed the situation in his acceptance speech, he ran over time and the theme from "Jaws" began to play him off the stage. His microphone was cut off just as he said the words "I urge you all…"

William Goldenberg was a double nominee in the film editing category — he worked on both "Argo" and "Zero Dark Thirty" — and won the prize for Affleck's CIA drama.

"Working at my father's deli, I had to do a million things at one time," Goldenberg said backstage about the best training for his job. "It really does prepare you for the multitasking it takes to be in an editing room."

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Air Force to Stealth Fighter Pilots: Get Used to Coughing Fits

The Air Force has some bad news for the pilots of its F-22 Raptor stealth fighters: Your planes are going to make you feel crappy and there’s not much anyone can do about it. And the message to the maintainers of the radar-evading jet is even more depressing. Any illness they feel from working around the Raptor is apparently all in their heads, according to the Air Force.

Those admissions, buried in newly released Congressional records, represent the latest twist in the years-long saga of the F-22′s faulty oxygen system, which since at least 2008 has been choking pilots, leading to confusion, memory loss and blackouts — combined known as hypoxia — that may have contributed to at least one fatal crash. Ground crews have also reported growing sick while working around F-22s whose engines are running.

The Air Force claims its has a handle on the in-flight blackouts. All 180 or so F-22s are having faulty filters removed and new backup oxygen generators installed. There have also been changes to the G-suits pilots wear. But the Air Force says the alterations won’t do anything to fix the so-called “Raptor cough,” a chronic condition afflicting almost all F-22 pilots.

The coughing — which, to be clear, is a totally separate issue from hypoxia — is due to a condition known as “acceleration atelectasis,” Maj. Gen. Charles Lyon, who headed the Air Force’s Raptor investigation, wrote in response to questions submitted following a September testimony before a House subcommittee. “Acceleration atelectasis results from pilots breathing high concentrations of oxygen (above 60 percent) while wearing anti-G trousers, and exposure to G-forces,” Lyon explained.

Maj. Jeremy Gordon, a Virginia Raptor flier who blew the whistle on the Air Force last year, described a typical room full of F-22 pilots where “the vast majority will be coughing a lot of the time.” One Air Force widow claimed her F-22 pilot husband’s coughing contributed to his suicide.

The coughing, Lyon continued, results from the closure of the lungs’ alveoli as oxygen-rich air is absorbed, leaving insufficient gas such as nitrogen behind to keep the alveoli open. “The normal physiologic response to re-open the alveoli is to cough,” Lyon wrote adding that an F–22 feeds its pilot higher concentrations of oxygen compared to other jets. Air Force spokesman Lt. Col. Tadd Sholtis told ABC News that the Raptor’s extreme performance — flying higher and faster than most planes — could also exacerbate the cough.

“The Air Force will continue to explore further potential causes through long term breathing air analysis and human systems integration efforts,” Lyon wrote. But he offered no solution to the condition. Apparently, from the Air Force’s point of view, coughing is the cost of sitting the world’s most high-tech fighter cockpit.

With regard to the maintainers who reported symptoms alongside the oxygen-deprived F-22 pilots, Lyon wrote that the Air Force conducted extensive testing and found no evidence that the ground crews were actually sick. “None of the ground incident aircraft cockpit testing revealed anything approaching a remarkable health guidance value,” Lyon explained. “None of the maintainer blood, breath or urine samples indicated anything remarkable.”

Lyon wrote that the Air Force has ruled out any adverse health effects from toxic fluid leaks, hazardous particles from the Raptor’s stealth coating and the possible impact of breathing the F-22′s engine exhaust. If the maintainers really were sick, as they claimed, the Air Force is “confident that factors other than the life support system or the aircraft caused the ground incidents,” Lyon wrote.

The F-22, arguably the most capable jet fighting in the world, is the mainstay of the Air Force’s frontline fleet and has even gotten more money, even while the rest of the military braces for impending budget cuts. Raptor pilots and ground crews shoulder a large part of the burden of deploying American power in the sky. The flying branch’s brass seem to believe coughing, and possibly imaginary illness on the ground, are just part of the job.

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Quvenzhané Wallis to play title role in “Annie” movie

NEW YORK (Reuters) – Nine-year-old Oscar nominee Quvenzhané Wallis will play the title role in “Annie,” Sony’s Columbia Pictures announced on Sunday.

“Annie” is due to hit theaters in 2014 during the winter holiday season, and is based on the stage play about an orphan’s adventures in finding her family and a better life while overcoming the schemes of orphanage mistress Miss Hannigan.

President of production at Columbia Pictures Hannah Minghella expressed confidence in Wallis’ talent and star power.

“With the recent Academy Award nomination and critical acclaim, Quvenzhané Wallis is a true star and we believe her portrayal as Annie will make her a true worldwide star,” she said.

“She is an extraordinary young talent with an amazing range, not only as an actress but as a singer and dancer, and we can’t wait for audiences to further discover her.”

Among the film’s co-producers are Will Smith, Jada Pinkett Smith and Shawn “Jay-Z” Carter. Carter’s 1998 Grammy-winning album “Vol. 2… Hard Knock Life” contains a hip-hop version of “It’s a Hard Knock Life,” a song from the original Broadway musical “Annie.”

The hit musical was first made into a film starring Carol Burnett as Miss Hannigan in 1982. A made-for-TV version with Kathy Bates in the same role aired on ABC in 1999, and earned two Emmy awards.

Wallis is the youngest actress to ever be nominated for a Best Actress Oscar. She was nominated for her role as Hushpuppy in indie drama “Beasts of the Southern Wild,” which also earned a nod for Best Picture. “Beasts” is Wallis’ first acting job.

Among her other firsts, she will also be the first African-American actress to play Annie, who has been traditionally portrayed as a freckle-faced redhead.

Later this year, she will star alongside Brad Pitt and Michael Fassbender in Steve McQueen’s historical drama “Twelve Years a Slave,” based on the book by Solomon Northup.

(Editing by Eric Walsh and Jackie Frank)

Movies News Headlines – Yahoo! News

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Well: Ask Well: The Nutrients in Fruits and Veggies

The colorful skin of an apple, grape or tomato is certainly chockfull of nutrients. But by no means are the outer layers of most fruits and vegetables the prime source of their nutrition.

Part of what makes some fruits and vegetables so rich with color – wax and pesticides notwithstanding – are pigments in the skin that have healthful antioxidant properties. Resveratrol, for example, is found in the skin of red grapes and other fruits. But lycopene, one of the pigments that gives tomatoes and bell peppers their deep red color, is distributed throughout.

Indeed, many vitamins and nutrients are found in the skin as well as the flesh. Take apples. According to the United States Department of Agriculture, a large red apple with its skin intact contains about 5 grams of fiber, 13 milligrams of calcium, 239 milligrams of potassium, and 10 milligrams of vitamin C. But remove the skin, and it still contains about 3 grams of fiber, 11 milligrams of calcium, 194 milligrams of potassium, and plenty of its vitamin C and other nutrients.

Another example is the sweet potato. The U.S.D.A. says that a 100-gram serving of sweet potato cooked with its skin contains 2 grams of protein, 3 grams of fiber, and 20 milligrams of vitamin C. But the same sized serving of sweet potato without skin that has been boiled — a process that further leaches away some of its nutrients — still boasts 1.4 grams of protein, 2.5 grams of fiber, and 13 milligrams of vitamin C.

You can lose the skin, in other words, without losing all the benefits.

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DealBook: Japan to Sell $10 Billion Stake in Cigarette Firm

TOKYO – The Japanese government is set to loosen its grip on Japan Tobacco, the world’s third-largest tobacco company, by selling a third of its stake in a sale that will net the country about $10 billion.

The Finance Ministry, which owns just over 50 percent of the former state monopoly, will sell 333 million of its shares in the cigarette manufacturer, according to a company statement issued on Monday.

The deal will be priced next month, from March 11 to 13, the statement said. In the run-up to the sale, Japan Tobacco will buy back up to 250 billion yen ($2.7 billion) of its shares.

Under laws passed in 2011 after a devastating earthquake and tsunami hit Japan, proceeds of the sale of Japan Tobacco shares will go toward rebuilding the country’s battered northeast coast. The reconstruction costs have threatened to weigh on Japan’s public finances at a time when public debt is twice the size of its economy.

It is an opportune time for the Japanese government to sell. Japan’s stock market has rallied since mid-November, and Japan Tobacco’s shares have tracked the market’s ascent, climbing 20 percent in the last three months.

Shares in Japan Tobacco closed 1.43 percent higher on Monday, at 2,901 yen, before the planned sale was announced. At that price, the government’s share sale would be valued at roughly 967 billion yen.

Japan has already been reducing its stake and involvement in the cigarette maker, which traces its origins to a Finance Ministry bureau set up in 1898 to create a national tobacco monopoly that lasted until 1985.

Even after the company went public, the Finance Ministry held two-thirds of its shares until 2004, when it reduced its stake to 50.1 percent, or roughly one billion shares. Other investors in Japan Tobacco include Mizuho Trust & Banking, Goldman Sachs and the Children’s Investment Fund Management.

The position in Japan Tobacco has put the government in a controversial position.

The government has squeezed more funds from its smokers, raising the price of a pack of cigarettes about 40 percent in 2010, its single largest increase in tobacco taxes. Still, cigarettes remain relatively cheap in Japan, at about $4.30 a pack.

But antismoking advocates have blamed the Japanese government’s continued ownership of Japan Tobacco – whose brands include Camel, Winston and Mild Seven – for the country’s delay in passing laws to protect nonsmokers from cigarette smoke, for example, and more stringently regulating of tobacco-related marketing.

In a 2012 report, the Washington-based Global Business Group on Health said Japan’s ownership of Japan Tobacco shares “leads to a national conflict of interest, in which the government treats smoking as a behavioral issue rather than a health concern.”

Though smoking rates have started to decline in recent years, the Japanese remain heavy smokers, consuming about 1,841 cigarettes a person, according to data compiled last year by the World Lung Foundation and American Cancer Society. That compared with about 1,000 cigarettes a person in the United States.

To make up for declining cigarette consumption at home, Japan Tobacco has aggressively expanded overseas, acquiring Britain’s Gallaher Group in 2007 for $15 billion, and adding the Silk Cut and Benson & Hedges brands to its portfolio. The company has also made a push into packaged foods and soft drinks, as well as pharmaceuticals.

The government’s sale of Japan Tobacco shares is part of a wider effort to raise money to finance reconstruction from the country’s natural and nuclear disasters in 2011. The government also plans to sell shares of Japan Post Holdings, which runs the country’s postal system and also acts as its biggest bank.

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Oscars stage manager braces for his final cues to the stars

He delivered a forgotten harmonica to Stevie Wonder onstage at the Grammy Awards, supplied a shoulder to lean on for a post-hip-surgery Gregory Peck at the Oscars and served as a human Xanax for hundreds of other stars in the most terrifying and exhilarating moments of their careers.

Stage manager Dency Nelson, 61, works behind the scenes at the Oscars, plus at times the Grammys, Screen Actors Guild Awards, Teen Choice Awards, MTV Movie Awards and other shows. This year will mark his 25th — and last, he said — Academy Awards, as he plans to retire from one of show business' least known but most stressful gigs.

An anonymous but critical piece of the Hollywood awards season machinery, stage managers like Nelson control the chaos of the live TV broadcast — they deliver the correct winning envelopes, ensure that the pop-up microphone actually pops up and, most delicately, orchestrate the flow of talent through the stage wings.

Oscars 2013: Nominee list | Ballot | Trivia | Timeline

An avuncular former hippie with twinkling green eyes, a silver earring and a scruffy, salt-and-pepper beard, Nelson is stationed in the stage-right wings, a hot spot where most of the Oscar telecast's jittery presenters enter and elated winners exit.

"It's like air traffic control," he said one recent afternoon at the Dolby Theatre at the Hollywood & Highland Center, where he was preparing for Sunday's show. "Ninety percent of the people in the room don't know my name, but when they round the corner and come into the wings there's a smile, 'Oh, that guy.'"

Even seasoned performers rely on stage managers for assurance in the unforgiving medium of live TV, and backstage figures like Nelson develop a rapport with stars they see at multiple shows.

Last year, before Meryl Streep stepped onto the Oscar stage to present an award, she reviewed her script, smoothed her gown and cast a tentative glance at Nelson. "You'll push me out when it's time?" she asked. He gently led the actress by the arm to the edge of the curtain, sending her off to face an audience of 40 million.

An hour later, after winning lead actress for "The Iron Lady," the first person an emotional Streep saw was Nelson, with a chair and a welcome water bottle.

"Dency's businesslike, but he makes people comfortable," said American Film Institute founder George Stevens Jr., who met him when the recent college grad was lugging heavy film reels for the L.A.-based nonprofit. Charmed by the young man's work ethic, nearly four decades later Stevens still hires him to stage-manage the "Kennedy Center Honors" and "Christmas in Washington" shows every year.

Many of the approximately 500-person backstage crew at the Oscars have been performers themselves, including head stage manager Gary Natoli (Nelson's boss) and a stage manager who specializes in talent, Valdez Flagg, both former actors and dancers.

TIMELINE: Academy Award winners

According to guild minimums, the stage managers must make at least $746 for a 12-hour day, and many work other steady jobs. Thanks to the proliferation of performance-based reality shows such as "American Idol" and "The Voice," there's a lot of work available for the specialized group who know how to do it.

Nelson has stage-managed the game show "Let's Make a Deal" and the syndicated variety program "The Wayne Brady Show."

"Anyone can do this job as long as nothing goes wrong," said Flagg. "If you can't go with the flow, you won't last. You'll freak out."

The year Wonder forgot his harmonica, for instance, the Grammys crew had to think quickly — how do you subtly signal a blind man? Ultimately, Nelson asked the director to frame a tight shot on the singer's face while he sneaked up from below and tugged on Wonder's pant-leg. At the Emmys, when an impostor tried to walk off with "Hill Street Blues" star Betty Thomas' trophy, Nelson skidded on stage with another.

And then there's that other occupational hazard: jerks. "People are just nervous in some cases and take it out on you," Nelson said with a shrug.

This year's Oscar telecast is a particularly taxing one for the stage crew, with many singing and dancing casts to maneuver. The consequences of a missed cue can be dire — at several points in the show, 34.5-foot lifts built into the stage floor will open to move scenery pieces.

Nelson, who grew up in Menlo Park the son of an Army auditor, originally wanted to be an actor. As a child he hosted the Andy Williams Christmas show by himself in front of the Christmas tree, with a toilet paper roll as a microphone.

After graduating from UC Santa Cruz with a degree in theater, he took a job as a driver and mail clerk for AFI and worked behind the scenes as "the guy who guarded the doughnuts" for the 1970s soap opera parody "Mary Hartman, Mary Hartman" and a cue card man for "Saturday Night Live" and David Letterman.

Play-at-home ballot: Have you made your picks yet?

Along the way he continued to act in commercials, basement theaters and tiny walk-on roles (in Woody Allen's "Manhattan," you can see Nelson stride across Park Avenue carrying an attaché case). "I wasn't really getting anywhere," he said. "I just saw my actor colleagues, their talent, and saw I'm not that."

The frustrated performance experience, however, gives Nelson a nuanced understanding of what the people he's pushing into the lights on Oscar night are feeling. "There have been plenty of times where I have held a trembling hand and smiled," he said. "I so admire anyone who can do that."

The stage crew prepares with the thoroughness of a military campaign. During rehearsals, Nelson marks his show rundown with different colors of highlighters and pens, noting when he'll send a performer upstage or where a piece of scenery will move. Unlike some younger stage managers, he still uses paper, not an electronic device, for storing his "road map."

In a change this year, six college film students will deliver the trophies onstage, instead of the usual cadre of models who float from show to show. On Wednesday, Nelson was coaching them on the subtle art of statuette distribution.

"Let the kiss and hug happen," he said, his hands stained with red ink from jotting notes on his script, six roles of tape swinging from his belt. "Just linger upstage, let that traffic happen."

At Nelson's first Oscars, before the students were born, Jack Lemmon was the host. Over the years, Nelson said he's noticed an evolution in the awards show scene, as older performers who approached show business with a certain gentility have given way to a more casual and sometimes cruder generation.

"I'm no prude, but there was a certain formality and respect to things," he said. "I'm sorry to see it go, although I understand the financial necessity 'cause it's about the ratings."

A married father of one grown daughter, Nelson lives in Hermosa Beach and is active in Democratic party politics and environmental causes; he helped found a nonprofit devoted to alternative vehicles called Plug in America (he owns two electric cars). Especially engaged in the union to which stage managers belong, the Directors Guild of America, this year he received the guild's Franklin J. Schaffner Award for service.

He said he's retiring to devote more time to his political passions, but he also appears ready to shed the pressures of awards season.

"I don't want to make any mistakes," Nelson said. "The worst is just before the show starts. That's awful. That last hour in the wings.... It's not calm inside. As I am nearing my retirement, I just keep thinking of Jack Nicholson's line in 'Terms of Endearment' ... 'Inches from a clean getaway.'"

Play-at-home ballot: Have you made your picks yet?

rebecca.keegan@latimes.com

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Wired Space Photo of the Day: Glowing Gas in Omega Nebula

This image is a colour composite of the Omega Nebula (M 17) made from exposures from the Digitized Sky Survey 2 (DSS2). The field of view is approximatelly 4.7 x 3.7 degrees.

Image: ESO/Digitized Sky Survey 2. Acknowledgment: Davide De Martin. [high-resolution]

Caption: ESO

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The Texas Tribune: Advocates Seek Mental Health Changes, Including Power to Detain

Matt Rainwaters for Texas Monthly

The Sherman grave of Andre Thomas’s victims.

SHERMAN — A worried call from his daughter’s boyfriend sent Paul Boren rushing to her apartment on the morning of March 27, 2004. He drove the eight blocks to her apartment, peering into his neighbors’ yards, searching for Andre Thomas, Laura Boren’s estranged husband.

Expanded coverage of Texas is produced by The Texas Tribune, a nonprofit news organization. To join the conversation about this article, go to texastribune.org.

For more articles on mental health and criminal justice in Texas, as well as a timeline of the Andre Thomas case: texastribune.org

Matt Rainwaters for Texas Monthly

Laura Boren

He drove past the brightly colored slides, swings and bouncy plastic animals in Fairview Park across the street from the apartment where Ms. Boren, 20, and her two children lived. He pulled into a parking spot below and immediately saw that her door was broken. As his heart raced, Mr. Boren, a white-haired giant of a man, bounded up the stairwell, calling out for his daughter.

He found her on the white carpet, smeared with blood, a gaping hole in her chest. Beside her left leg, a one-dollar bill was folded lengthwise, the radiating eye of the pyramid facing up. Mr. Boren knew she was gone.

In a panic, he rushed past the stuffed animals, dolls and plastic toys strewn along the hallway to the bedroom shared by his two grandchildren. The body of 13-month-old Leyha Hughes lay on the floor next to a blood-spattered doll nearly as big as she was.

Andre Boren, 4, lay on his back in his white children’s bed just above Leyha. He looked as if he could have been sleeping — a moment away from revealing the toothy grin that typically spread from one of his round cheeks to the other — except for the massive chest wound that matched the ones his father, Andre Thomas (the boy was also known as Andre Jr.), had inflicted on his mother and his half-sister as he tried to remove their hearts.

“You just can’t believe that it’s real,” said Sherry Boren, Laura Boren’s mother. “You’re hoping that it’s not, that it’s a dream or something, that you’re going to wake up at any minute.”

Mr. Thomas, who confessed to the murders of his wife, their son and her daughter by another man, was convicted in 2005 and sentenced to death at age 21. While awaiting trial in 2004, he gouged out one of his eyes, and in 2008 on death row, he removed the other and ate it.

At least twice in the three weeks before the crime, Mr. Thomas had sought mental health treatment, babbling illogically and threatening to commit suicide. On two occasions, staff members at the medical facilities were so worried that his psychosis made him a threat to himself or others that they sought emergency detention warrants for him.

Despite talk of suicide and bizarre biblical delusions, he was not detained for treatment. Mr. Thomas later told the police that he was convinced that Ms. Boren was the wicked Jezebel from the Bible, that his own son was the Antichrist and that Leyha was involved in an evil conspiracy with them.

He was on a mission from God, he said, to free their hearts of demons.

Hospitals do not have legal authority to detain people who voluntarily enter their facilities in search of mental health care but then decide to leave. It is one of many holes in the state’s nearly 30-year-old mental health code that advocates, police officers and judges say lawmakers need to fix. In a report last year, Texas Appleseed, a nonprofit advocacy organization, called on lawmakers to replace the existing code with one that reflects contemporary mental health needs.

“It was last fully revised in 1985, and clearly the mental health system has changed drastically since then,” said Susan Stone, a lawyer and psychiatrist who led the two-year Texas Appleseed project to study and recommend reforms to the code. Lawmakers have said that although the code may need to be revamped, it will not happen in this year’s legislative session. Such an undertaking requires legislative studies that have not been conducted. But advocates are urging legislators to make a few critical changes that they say could prevent tragedies, including giving hospitals the right to detain someone who is having a mental health crisis.

From the time Mr. Thomas was 10, he had told friends he heard demons in his head instructing him to do bad things. The cacophony drove him to attempt suicide repeatedly as an adolescent, according to court records. He drank and abused drugs to try to quiet the noise.

bgrissom@texastribune.org

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Major Banks Aid in Payday Loans Banned by States

Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.

With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.

While the banks, which include giants like JPMorgan Chase, Bank of America and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals.

“Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn’t operate,” said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, which works with community groups in New York.

The banking industry says it is simply serving customers who have authorized the lenders to withdraw money from their accounts. “The industry is not in a position to monitor customer accounts to see where their payments are going,” said Virginia O’Neill, senior counsel with the American Bankers Association.

But state and federal officials are taking aim at the banks’ role at a time when authorities are increasing their efforts to clamp down on payday lending and its practice of providing quick money to borrowers who need cash.

The Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau are examining banks’ roles in the online loans, according to several people with direct knowledge of the matter. Benjamin M. Lawsky, who heads New York State’s Department of Financial Services, is investigating how banks enable the online lenders to skirt New York law and make loans to residents of the state, where interest rates are capped at 25 percent.

For the banks, it can be a lucrative partnership. At first blush, processing automatic withdrawals hardly seems like a source of profit. But many customers are already on shaky financial footing. The withdrawals often set off a cascade of fees from problems like overdrafts. Roughly 27 percent of payday loan borrowers say that the loans caused them to overdraw their accounts, according to a report released this month by the Pew Charitable Trusts. That fee income is coveted, given that financial regulations limiting fees on debit and credit cards have cost banks billions of dollars.

Some state and federal authorities say the banks’ role in enabling the lenders has frustrated government efforts to shield people from predatory loans — an issue that gained urgency after reckless mortgage lending helped precipitate the 2008 financial crisis.

Lawmakers, led by Senator Jeff Merkley, Democrat of Oregon, introduced a bill in July aimed at reining in the lenders, in part, by forcing them to abide by the laws of the state where the borrower lives, rather than where the lender is. The legislation, pending in Congress, would also allow borrowers to cancel automatic withdrawals more easily. “Technology has taken a lot of these scams online, and it’s time to crack down,” Mr. Merkley said in a statement when the bill was introduced.

While the loans are simple to obtain — some online lenders promise approval in minutes with no credit check — they are tough to get rid of. Customers who want to repay their loan in full typically must contact the online lender at least three days before the next withdrawal. Otherwise, the lender automatically renews the loans at least monthly and withdraws only the interest owed. Under federal law, customers are allowed to stop authorized withdrawals from their account. Still, some borrowers say their banks do not heed requests to stop the loans.

Ivy Brodsky, 37, thought she had figured out a way to stop six payday lenders from taking money from her account when she visited her Chase branch in Brighton Beach in Brooklyn in March to close it. But Chase kept the account open and between April and May, the six Internet lenders tried to withdraw money from Ms. Brodsky’s account 55 times, according to bank records reviewed by The New York Times. Chase charged her $1,523 in fees — a combination of 44 insufficient fund fees, extended overdraft fees and service fees.

For Subrina Baptiste, 33, an educational assistant in Brooklyn, the overdraft fees levied by Chase cannibalized her child support income. She said she applied for a $400 loan from Loanshoponline.com and a $700 loan from Advancemetoday.com in 2011. The loans, with annual interest rates of 730 percent and 584 percent respectively, skirt New York law.

Ms. Baptiste said she asked Chase to revoke the automatic withdrawals in October 2011, but was told that she had to ask the lenders instead. In one month, her bank records show, the lenders tried to take money from her account at least six times. Chase charged her $812 in fees and deducted over $600 from her child-support payments to cover them.

“I don’t understand why my own bank just wouldn’t listen to me,” Ms. Baptiste said, adding that Chase ultimately closed her account last January, three months after she asked.

A spokeswoman for Bank of America said the bank always honored requests to stop automatic withdrawals. Wells Fargo declined to comment. Kristin Lemkau, a spokeswoman for Chase, said: “We are working with the customers to resolve these cases.” Online lenders say they work to abide by state laws.

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