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* * * * * MONDAY, SEPTEMBER 8, 2014 ~ VOL. CCLXIV NO. 58 WSJ.com HHHH $2 .00
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CONTENTSAbreast of the Market C1Corp. News... B2, B3, B7Global Finance............ C3Heard on Street........ C6Law Journal................ B4Markets Dashboard C4
Media............................... B6Moving the Market C2Opinion.................. A17-19Sports.............................. B8U.S. News....... A2-4, A6Weather Watch........ B7World News A8, A13-15
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What’sNews
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World-WidenObama will lay out plansthis week for expanding theU.S. military campaign againstIslamic State, including possi-ble airstrikes in Syria. A1, A4n Sunni tribes joined forceswith Iraq’s Shiite-dominatedmilitary in an assault on rebelsbacked by U.S. airstrikes. A14nKiev and the Kremlin said acease-fire pact between pro-Russia rebels and Ukraine stillheld despite fighting in at leasttwo cities in east Ukraine. A8nNew EU sanctions on Rus-sia will curb three oil compa-nies from raising funds on thebloc’s capital markets. A8nObama cited a surge of un-documented children acrossthe U.S.-Mexico border as areason for delaying executiveaction on immigration. A4n Britain promised greaterpowers for Scotland if it votesto remain in the U.K. after apoll showed a surge in sup-port for independence. A13n An Afghan court sentencedseven men to death for theirinvolvement in the gang rapeof a group of women. A15n Flash floods and landslideshave killed at least 300 peo-ple in the disputed Himala-yan region of Kashmir. A15nHarvard received a $350million donation for its schoolof public health, the largest giftin the university’s history. A3n Palestinian leader Abbasthreatened to dissolve his al-liance with Hamas if it didn’tyield power in Gaza. A14n Boko Haram rebels seizedmore towns along Nigeria’snortheastern border. A14
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The SEC is preparing newrules to boost oversight
of asset-management firms,including greater data dis-closure and stress tests. A1nWalgreen agreed to giveactivist investor Jana twoboard seats and a potentialthird amid pressure from an-alysts and shareholders. B1n Apple will face the chal-lenge of selling full-priceiPhones as it prepares to un-veil new, and likely more ex-pensive, devices this week. B1n The Atlanta Hawks ownerplans to sell his stake in theNBA team after disclosing anemail he wrote that discrimi-nated against black fans. A3n Alibaba is set to start a“roadshow” to pitch its IPO,after setting a price rangethat valued that e-commercefirm at around $155 billion. C1n Sen. Schumer (D., N.Y.) isconsidering legislation thatwould limit tax breaks forcompanies that move out ofthe U.S. for tax purposes. B7nAir-safety officials areweighing new curbs on lithiumbatteries in cargo holds due tofire-hazard concerns. B3n GM plans to offer cars by2016 with automated hands-free driving and vehicle-to-vehicle Wi-Fi systems. B3n Bristol-Myers and Onosued Merck, alleging that itsnew immunotherapy cancerdrug violates their patent. B3nDisney’s “Guardians”topped themovie box office fora fourth weekend. Its U.S. grossnow totals $294.6 million. B7
Business&Finance
WASHINGTON—President Ba-rack Obama will lay out plans thisweek for expanding the U.S. mili-tary campaign against the ex-tremist group Islamic State, in-cluding the possibility ofairstrikes on the militants in theirSyrian strongholds, U.S. officialssaid.
His appeal for support to a di-vided Congress and a doubtfulAmerican public comes as theU.S. military is broadening itsmonth-old campaign of air at-tacks against the Sunni fighters inIraq. An intense barrage of Amer-ican airstrikes on Sunday hit mili-tants trying to seize control ofthe strategic Haditha Dam inIraq’s Sunni heartland northwestof Baghdad.
In meetings with members ofCongress on Tuesday and aspeech to the country on Wednes-day, the president plans to spellout action he says is designed to“degrade and ultimately destroy”the group that has captured largetracts of territory in Iraq andSyria.
The additional American stepscould include airstrikes on thegroup’s base in Syria, U.S. officialssay. But Mr. Obama again thisweekend emphatically ruled out
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By Patrick O’Connor,Dion Nissenbaumand Carol E. Lee
ObamaTo PushToWidenAttacks
WASHINGTON—The Securitiesand Exchange Commission is pre-paring new rules to boost over-sight of mutual funds, hedgefunds and other firms as part ofan effort to gain insight intowhether the $50 trillion asset-management industry poses risksto the financial system, accordingto people familiar with the dis-cussions.
The SEC is in the early stages
of developing requirements, in-cluding that asset managers suchas Fidelity Investments and Black-Rock Inc. give regulators moredata about their mutual-fundportfolio holdings and conductstress tests on their funds to de-termine how they would weathereconomic shocks such as a sud-den change in interest rates.
The SEC staff is developing therules with the five-member com-mission but has yet to complete aformal proposal. Any rule would
have to be proposed by the SECand voted on a second time be-fore being completed, a processthat could take months or years.
The rules under discussion aresomewhat similar to postcrisis re-quirements put in place for bigbanks and other large financialinstitutions that regulators be-lieve could pose a risk to the fi-nancial system and broader econ-omy if they were to collapse. Theycome amid a broad debate inWashington about whether the
asset-management industry isvulnerable to stresses, such aswidespread investor redemptions,that could roil markets and desta-bilize the financial system.
The bulk of the asset-manage-ment industry—which includesmutual funds, hedge funds andprivate-equity funds—has yet tobe swept up in many of the rulesaimed at curbing systemic risks.
Among the agency’s concernsis some mutual funds’ use of de-
Pleaseturntothenextpage
BY ANDREW ACKERMAN
SEC PrepsMutual Fund RulesAgency Eyes Greater Disclosure of Portfolio Data, Stress Tests for Asset Managers
A fast-growing Virginia labo-ratory has collected hundreds ofmillions of dollars from Medi-care while using a strategy thatis now under regulatory scru-tiny: It paid doctors who sent itpatients’ blood for testing.
Health Diagnostic LaboratoryInc. transformed itself from astartup incorporated in late2008 into a major lab with $383million in 2013 revenues, 41% ofthat from Medicare.
It built that business sellingtests to measure “biomarkers” that help doctorspredict heart disease. HDL bundles together up to 28tests it performs on a vial of blood, receiving Medi-care payments of $1,000 or more for some bundles.
Until late June, HDL paid $20per blood sample to most doc-tors ordering its tests—morethan other such labs paid. Forsome physician practices, pay-ments totaled several thousanddollars a week, says a formercompany employee.
HDL says it stopped thosepayments after a Special FraudAlert on June 25 from the De-partment of Health and HumanServices, which warned thatsuch remittances presented “asubstantial risk of fraud andabuse under the anti-kickbackstatute.”
The fraud alert is part of aninvestigation the health agency’sOffice of Inspector General isconducting with the Justice De-partment into doctor paymentsby HDL and several other labs
specializing in cardiac-biomarker testing, peoplefamiliar with the investigation say. The agenciesdecline to comment.
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BY JOHN CARREYROUAND TOM MCGINTY
MEDICARE UNMASKED
A Fast-Growing Medical LabTests Anti-Kickback Law Milton Mulbon arrived in a taxi
at the gates of an Ebola clinic inLiberia’s capital, Monrovia, withhis 24-year-old daughter, Pa-tience, bleeding in the back seat.Guards turned them away.
“They’re telling me no space?”he protested, the taxi parkednearby. “She’s lying down in therealmost at the point of death!”
Taxis, ambulances, and evenmen pushing their sick in wheel-barrows are crisscrossing Mon-
rovia, looking for an open bed inWest Africa’s overbooked Ebolaclinics, health-care workers say.Sometimes they get in, throughpersistence and good timing.Mostly they don’t.
Liberia, Sierra Leone, andGuinea—the three nations bearingthe brunt of the outbreak—need atleast 1,515 hospital beds for themore than 20,000 people whocould be infected before the out-break can be curtailed, accordingtoWorld Health Organization esti-mates. At present, there are only afew hundred beds. Internationalsupport has been slow to come
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By Drew Hinshawin Monrovia, Liberia, andBetsy McKay in Atlanta
Deadly DisappointmentAwaits at Ebola Clinics
Sample GrowthHealth Diagnostic Laboratory'stesting grew rapidly in 2010.Weekly blood samples receivedfor analysis:
The Wall Street Journal
Source: HDL internal documents
2,500
0
500
1,000
1,500
2,000
samples
F M A M JJ J
Serena Williams Soars Into History at U.S. Open
Streeter
Lecka/Getty
Images
WASHINGTON, Mo.—TimBrinkmann, reigning championat the Super Farmer competi-tion here at the Town andCountry Fair, watched nervouslyas this year’s competitors stolehis strategy in the human-wheelbarrow race.
Last year, team after teamhad the man carry the woman’slegs as she walked on her handsat the end of an obstacle course.Mr. Brinkmann decided to try aswitcheroo: He had his partner,Jennifer Placht, carry his legs,so he could use his arm
strength to speedacross the saw-dust.
“We just domi-nated the event,”said Mr. Brink-mann, a muscular34-year-old inwork boots and abaseball cap.“Last year, wewent last so no-body would copy,but this year, everybody wasdoing it.”
City slickers have their mara-thons and outdoor enthusiastshave their survival challenges,
but braggingrights at fairsacross the Mid-west often comein Super Farmercontests.
Under a largepavilion sur-rounded bycheering fans andpenned farm ani-mals, eight teamsof locals squared
off in the 26-to-40 age divisionin pursuit of cash prizes andcountry-fair celebrity status.Events included the hay-bale
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BY ANDREA GALLO
Down on the Farm, They Go All Out at the Country Fairi i i
No Bull: Competition Fierce at ‘Super Farmer’; the New ‘Wheelbarrow’
Justin Forget
OLD SCHOOL: At an Open marked by upsets, Ms. Williams won the women’s singles final Sunday. Her 18th major title puts her in an elite trio. B8
Part of a series examininghow payments are made inthe roughly $600 billionMedicare system.
Congress to be asked forSyria funds....................................... A4
Arab nations wary over callsfor coalition................................... A14
Sunni tribes join Iraqi forcesin battle........................................... A14
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