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Vital Signs

Consumer spending,which accounts for morethan two-thirds of U.S. eco-nomic activity, rose a sea-sonally adjusted 0.3% fromthe prior month after ad-justing for inflation. Con-sumers have slowed savingto offset higher payrolltaxes since Jan. 1. A recentdecline in gasoline prices,along with other downwardpressure on inflation, also ispropping up consumers de-spite slow wage gains. A8

Change from previous monthin personal consumption

Source: Commerce Department

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Federal prosecutorslaunched a criminal inves-

tigation into whether corpo-rate directors misused govern-ment-sanctioned trading plansto sell company shares for in-vestment funds they run. A1n Alfredo Sáenz, who helpedturn Banco Santander into aglobal banking power, quitas CEO after a legal and po-litical controversy over hispast criminal conviction. C1n Kodak plans to turn overtwo businesses it was seek-ing to shed to U.K. retireesin exchange for wiping out ahefty pension obligation. B1n The S&P 500 notched a re-cord close, finishing up 11.37points, or 0.7%, at 1593.61. TheDow industrials gained 106.20points, or 0.7%, to 14818.75. C4nDeutsche Bank said it wouldraise $3.65 billion in freshcapital, giving in to pressurefrom investors and regulatorsto improve its capital base. C1nChrysler’s earnings fell 65%as the firm shipped fewer ve-hicles due to idled factories andhigher retooling costs ahead ofkey new-vehicle launches. B3n Alibaba struck a $586 mil-lion deal to acquire an 18%stake in Weibo, the influen-tial Chinese social-mediaoutlet that is part of Sina. B1n Occidental reversed plansto immediately replace CEOSteve Chazen, yielding to inves-tor pressure less than a weekbefore its annual meeting. B6nA settlement that ended suitsagainst S&P, Moody’s andMor-gan Stanley over mortgage-related deals will cost the firmsa total of about $225million. C3n Sprint won approval fromJapanese suitor SoftBank togather more informationabout Dish Network’s com-peting takeover proposal. B3n Japan’s industrial outputrose for the fourth straightmonth in March, a sign thenation’s economy is continu-ing a gradual recovery. A11n Loretta Fredy Bush, aonetime American successstory in China, was sentencedto one month in prison for aU.S. tax violation. C3n Richard Branson’s space-tourism venture cleared animportant hurdle with thefirst powered test flight ofits SpaceShipTwo craft. B2n Nielsen is expected to an-nounce that it is testing a toolto measure online viewing ofTV shows, aiming to hone itstracking of digital audiences. B4

n Female DNAwas found ona bomb in the Boston attacks.Investigators cautioned therecould be multiple explanationsfor why genetic material fromsomeone other than the twosuspects was found on bombremnants. FBI agents visitedthe home of the parents of thewidow of bombing suspect Ta-merlan Tsarnaev. A4Russia revealed details aboutcontacts between Tsarnaevand suspected Islamist radi-cals in the Caucasus.nBangladeshi garment firmsaccused of forcing staff backto work in an unsafe buildingwere under financial pressuredue to political unrest. A1nThe U.S. is seeking tobridge a rift among Arab andMuslim allies that is imperil-ing efforts to respond to tur-moil in Syria and Egypt. A9nAU.S. cargo plane crashedafter takeoff in Afghanistan,killing seven. The coalition dis-missed Taliban claims it hadshot down the aircraft.A13nKarzai admitted receivingmoney from the CIA over thepast 10 years but dismissed thesum as a “small amount.”A13n Japan and Russia agreed toresume talks aimed at solvinga long-standing territorial dis-pute over a groupof islands.A11nFive car bombs struck inmostly Shiite areas of Iraq, kill-ing 36, in the latest wave of vi-olence roiling the country.A12nTheSupremeCourt rebuffedAlabama over a law making ita crime to “harbor” or trans-port illegal immigrants. A2nThecourtupheld aVirginialaw that limits out-of-state resi-dents’ access to records.A2nAMississippi man chargedwith sending ricin-laced let-ters to Obama and others wasordered held without bond. A2nA jury is set to begin delib-eratingmurder charges againsta Philadelphia abortion doctoraccused in five deaths.A2nNorth Korea denied per-mission for seven South Kore-ans to exit a joint industrialpark in a wage dispute. A12n Italy’s new leader pledgedto cut taxes and increase aidfor the neediest and won hisfirst confidence vote. A10n The Treasury Departmentsaid it would pay down thenational debt this quarter forthe first time in six years. A6nNBA veteran Jason Collinsbecame the first active maleplayer in the four big U.S. prosports to come out as gay. D6

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TODAY IN PERSONAL JOURNAL

Heart-Attack Risk Starts YoungerPLUS Doctors’ Tricks to Get You Motivated

What’s News–i i i i i i

Federal prosecutors launcheda criminal investigation intowhether corporate directors mis-used government-sanctionedtrading plans to sell companyshares for investment funds theyrun.

The U.S. attorney’s office forthe Eastern District of New Yorkissued subpoenas requesting in-formation from companies andfunds cited in an April 25 page-one article in The Wall StreetJournal that highlighted tradingat three companies by directorswho also run funds, a person fa-miliar with the probe says.

The investigation is an out-

growth of another criminalprobe, led by the U.S. attorneyfor the Southern District of NewYork and the Securities and Ex-change Commission, into tradingby company insiders.

Spokespeople for the SEC andthe Eastern and Southern dis-tricts declined to comment.

At issue are preset trading ar-rangements known as 10b5-1plans, initiated by the SEC in2000. The plans allow corporate

executives and nonexecutive di-rectors a way to sell some sharesdespite potentially havingknowledge of nonpublic informa-tion about their companies,though such plans must be setup when the executive doesn’tpossess inside information.

Prosecutors are interested inwhether insiders are using suchplans to shed their positionswhen they are privy to privateinformation about companies,the person familiar with theprobe said. There haven’t beenany allegations of wrongdoing.

The development comes asPleaseturntopageA4

By Susan Pulliam,Rob Barry

and Scott Patterson

Insider-TradingProbeTrains Lens onBoards

DHAKA, Bangladesh—Factoryowners accused of forcing staffback to work in a building shortlybefore it collapsed and killed about400 people last week were underfinancial pressure because politicalunrest had scared off buyers, com-pany executives said.

The companies lost orders to ri-val garment makers in other coun-tries after protests in Bangladeshsince February led to strikes andport blockades ahead of electionsnext year.

The $20-billion-a-year garmentindustry had lost $500 million inexport orders due to the earlierturmoil, the Bangladesh GarmentManufacturers and Exporters As-sociation said this month. Westernbuyers had shifted many of thoseorders to India, it said, warningthat some of the three million jobsin the sector were at risk if insta-bility continued.

Workers for all five factories inthe building said in interviewsthey were urged by factory man-agers Wednesday morning to re-turn to work at Rana Plaza, in Sa-var, a commercial hub north ofDhaka, despite warnings from en-gineers that an exterior crack onthe building made it unsafe. It col-lapsed hours later.

Just before last week’s disaster,two of the factories—Phantom Ap-parels Ltd. and Phantom Tac Ltd.—were rushing to complete an orderfrom Spanish fast-fashion retailerMango MNG Holding SL, said fac-tory executives who survived thebuilding collapse.

Those two factories, owned byAminul Islam, a Dhaka-based busi-

PleaseturntopageA9

BY SYED ZAIN AL-MAHMOOD

DoomedFactoriesRaced toFillOrders

OAKLAND, Calif.—The ServiceEmployees International Unionis locked in battle here with anunusual opponent: anotherunion.

SEIU has enjoyed years ofrapid growth even as organizedlabor has withered in the U.S.Now, it is competing with theNational Union of HealthcareWorkers to represent 45,000nursing aides, pharmacy techni-cians and janitors at health-caregiant Kaiser Permanente. Thefight is playing out in cafeteriasand break rooms, where NUHWsupporters and organizers inbright red T-shirts have clashedin recent weeks with purple-clad SEIU backers.

The National Labor Relations Board will begincounting ballots of Kaiser Permanente workers onWednesday. The board threw out the results of aprevious election in 2010, which the SEIU won, af-

ter finding that the SEIU hadthreatened members who backedthe NUHW.

The SEIU has earned a repu-tation in recent years as a po-tent political player. In the 2012election, it emerged as the topoutside spender on Democraticcampaigns. As of last fall, theunion had funded roughly $70million in campaign donations,television ads and voter mobili-zation efforts, according to Fed-eral Election Commission filings.It is currently helping lead orga-nized labor’s campaign to per-suade Congress to pass an immi-gration bill that would ease thepath to citizenship for immi-grant workers.

Losing Kaiser could lead to more defections atother SEIU-represented hospitals in California,where the union has a third of its 1.9 million mem-bers. SEIU last year lost 45,000 members—the big-

PleaseturntopageA14

BY KRIS MAHER

Powerful Union, UpstartBattle Over Shrinking Pie

Wigged Out: Hong Kong’s Lawyers Bristle Over Horsehair Headpiecesi i i

Holdover From British Rule Causes Legal Split; ‘It’s Magical’

In hypermodern Hong Kong, adebate over 17th-century fashionis dividing the city’s legal circles.

The city’s lawyers are amongthe last in the world to wear judi-cial wigs, those curly, horsehairheadpieces that are a legacy ofmore than 150 years of British co-lonial rule. The affection is sogreat that one group of lawyersthat doesn’t wear wigs wants theright to don them. The city’s wig-wearers are resisting.

The feud has ignited passionsover the wigs. “When I wear mywig, I know something big is go-ing to happen,” said Jacky Lai, aHong Kong lawyer. “It makes mefeel like I have more responsibil-ity. I think I exude more energythan without it. It’s magical.”

Others say the wigs, and therobes that go with them, areanachronistic or ill-suited to HongKong’s subtropical climate. Thecity’s courtrooms are heavily air-conditioned, partly to keep law-yers cool, says lawyer Kevin Tang.“People complain, but it’s because

all the counsel aredressed up—they have tomake sure they don’tfaint.”

The split over wigsmirrors the divide inHong Kong’s legal profes-sion. As in the U.K. andsome former British colo-nies, Hong Kong’s lawyersare split between solici-tors, who work directlywith clients, and barris-ters, who represent thoseclients in court. The difference hashistorically been easy to spot: Bar-

risters, like judges, workin an elaborate uniformof robes topped withhand-woven hairpieces.

For years, solicitorshave been expandingtheir professional reachinto areas traditionallyconsidered barristers’turf. In 2010, solicitors inHong Kong gained theright to apply for a spe-cial status that would al-low them to represent

their clients in higher courts. ButPleaseturntopageA14

Barrister’s wig

BY TE-PING CHENAND ALLISON MORROW

Violence Spirals as American Allies Bicker Over Syria

FIERY: A bomb struck the convoy of Prime Minister al-Halqi, who wasn’t hurt, in Damascus, as Arab nations continued to spar over which rebels to support. A9

AssociatedPress

Source: Labor Dept.

The Wall Street Journal

Organizing RetreatSEIU’s rapid member growthrecently turned to a loss amidthe weak economy andpublic-sector layoffs.2.0

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0.5

1.0

1.5

million

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