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“The TB community has been too conser-vative” on a global scale, said Puneet Dewan,until recently a senior officer in the WHO’sIndia tuberculosis program. “We should havepushed sooner for a more aggressive, com-prehensive approach” toward drug resis-tance, he said this month in an interview.“There was a cost in failing to do that. We’repaying that cost today.”

The WHO played a particularly sizablerole in designing the tuberculosis program inIndia, which has seen a steep decline in regu-lar TB. But India and other poor countriesare now in the midst of an epidemic of drug-resistant strains—deadlier and harder-to-treat varieties of one of the world’s top in-fectious-disease killers.

G.R. Khatri, who headed India’s TB pro-gram more than a decade ago, called the epi-demic of resistant TB in Mumbai “a recipe

for disaster.” The WHO should have known itwas so bad and bears responsibility, he said.“What has the WHO been doing?”

In pilot testing across India this year of anew diagnostic method, some 6.6% of un-treated TB patients were drug-resistant—suggesting far higher rates than the 2% to3% levels India and the WHO have cited foryears. The test was a collaboration of inter-national aid groups and India’s government.

At one clinic in Mumbai, research showedmore than one quarter of 566 TB patientstested in recent months were resistant to themost powerful treatment, according to dataobtained by The Wall Street Journal throughIndia’s Right to Information Act. The resultsare preliminary, but in the absence of anynationwide survey they offer a sense of whatIndia’s drug-resistance rates might be.

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The World Health Organization’s long-standing strategy for fighting tuberculosis isshowing deadly unintended consequences:By focusing for years on the easiest-to-curepatients, it helped allow TB strains to spreadthat are now all but untreatable by modernmedicine.

The WHO and a growing chorus of globalhealth experts are now calling for a signifi-cant overhaul in the way nations with wide-spread drug-resistant TB combat the disease.It amounts to a de facto acknowledgmentthat the WHO’s TB strategy, and the coun-tries that use it, failed to adapt quicklyenough as the disease formed more power-ful, resistant strains.

CONTENTSCorporate News.. B2-4Global Finance........... C3Heard on the Street C8Market Data................ C4Music............................... D4Opinion.................. A13-15

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Vital Signs

Japan’s yen has slumpedagainst the dollar. On Thurs-day, the value of 100 yenwas $1.21, down four centsthis month. Many investorsthink the Bank of Japan willfurther ease monetary pol-icy, which tends to lowerthe yen’s value. In recentyears, the yen has soaredagainst the dollar, makingJapan’s exports less compet-itive overseas and hurtingits economy.

Number of dollars100 yen buys

Source: WSJ Market Data Group

1.18

1.22

1.26

$1.30

J F M A M J J A S O N

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Cardin Fashions a Legacy in VeniceThat Doesn’t Float With the Locals

i i i

At 90, He Wants to Spend His FortuneOn a Monument Many Italians Can’t Abide

VENICE, Italy—At 90, with nochildren and no designated heir,legendary French fashion de-signer Pierre Cardin wants toplow his entire fortune into onelast pet project: planting an 840-foot tower acrossthe lagoon fromthe historical cen-ter of the City ofCanals.

Mr. Cardin saysnothing else thrillshim as much as the€1.5 billion ($1.93billion) construc-tion plan—a build-ing that wouldboth outlive himand eclipse Ven-ice’s main bell tower as the la-goon’s beacon.

Born near Venice, Mr. Cardinmoved to a provincial French citywith his parents when he wastwo. He made his way to Paris,was a pioneer in bringing high

fashion to the masses, and spenttime in China during the ColdWar. He turned his name into aglobal brand, attaching it to aslew of businesses, from ciga-rettes to leather belts and hotels.He even became one of the “im-mortals,” as guardians of the

French language atthe French Acad-emy are known.

“I’ve been topnotch in fashion, Iown several cha-teaux, boats, art,”Mr. Cardin saidWednesday. “Whatelse can I do?”

Many Venetiansare horrified.

They say theskyscraper, a pile of

six horizontal Frisbee-like discscaught in between three wavy pil-lars with apartments, hotels andoffices, would simply ruin Veniceboth for locals and the 22 milliontourists who come here every

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BY GABRIELE PARUSSINI

The Palais Lumière

B lack Friday didn’t waiton the calendar this year,

as a number of national re-tail chains opened their doorson Thanksgiving despite anoutcry from traditionalistsand some employees. B1Many of this season’shighly touted “doorbuster”deals were available at lowerprices at other times of theyear, an analysis found. B2n Argentina has to swiftlypay creditors that never ne-gotiated new terms for theirdebt alongside those that did,a U.S. judge ruled, marking asetback for Buenos Aires. C3n A year before the govern-ment charged Mathew Mar-toma with insider trading, ittried to get him to turnagainst his former boss, SACCapital’s Steven Cohen. A1n EU leaders wrapped up thefirst day of summit talks on thebloc’s budget with little sign adeal was emerging that wouldsatisfy the U.K. and others. A10n Greek bond yields fell totheir lowest levels since a debtrestructuring earlier this year,as some investors bet on abuyback by Athens. A10n The Fed’s securities port-folio isn’t “anywhere near”levels that might impede thecentral bank’s bond-buyingprograms, an official said. A6nThe front-runner to becomeJapan’s next primeministersaid he would consider loosen-ing fiscal discipline and spend-ing more to boost growth. A9n Shareholders at AngloAmerican say they will push fornew boardmembers if the firmfails to act swiftly to sell strug-gling mines and cut costs. B1n The embattled BBC ap-pointed Tony Hall, one of itsformer news executives whonow heads the Royal OperaHouse, as its new chief. B3n China’s manufacturing ac-tivity expanded for the firsttime in 13 months, reinforc-ing evidence of a turnaroundfor the nation’s economy. A9n GM agreed to buy Ally’soverseas assets and Santanderis planning to take its U.S. con-sumer-finance unit public amida boom in auto lending. C1, C2n Few money managers sofar are signing up for new elec-tronic bond-trading networks,waiting to see which of theplatforms will succeed. C1nHostess secured permissionto go out of business, puttingthousands of employees outof work after a failed last-ditch mediation session. B3n A U.S. judge ordered Appleto disclose to Samsung detailsof its patent settlement withsmartphone maker HTC. B8n The IPO of People’s Insur-ance Co. (Group) of China isattracting a number of largebuyers, including AIG. C3n Facebook unveiled up-dates to its governing policythat ultimately could limit itsuser community’s ability tooverturn policy decisions. B8

n A cease-fire took holdacross the Gaza border.The truce, which came a dayafter Egypt announced a haltto eight days of bombardmentsbetween Israel and Hamas,was met with relief but alsoskepticism over how long itwould last. The parties to thepact, forged by Egyptian Presi-dent Morsi, must now focuson talks over easing the block-ade of Gaza, a key demand ofPalestinian Islamists. A8Morsi pushed to widen hispower with decrees aimed atcurbing a judiciary that haschallenged his government.n Syrian rebels seized a mili-tary base in the country’s east.Regime warplanes flattened abuilding next to a hospital inAleppo, killing at least 15. A8n The Taliban threatened re-venge unless India returns thebody of a Pakistani man exe-cuted for his role in the deadly2008 Mumbai attacks. A11nA Taliban suicide bomberstruck a Shiite procession nearPakistan’s capital, killing 23, inthe latest attack on Shiites. A11n States and business groupsare pushing for an increasein the federal gasoline tax aspart of a budget deal. A4nTheWhite House is debat-ing whether to accept corpo-rate donations for Obama’s in-augural event rather than relyonly on campaign donors. A4nRep. Jesse Jackson Jr., anIllinois Democrat, resigned twoweeks after winning re-elec-tion and confirmed he is thesubject of a federal probe. A5nCongo rebels repelled gov-ernment counterattacks, as aleader was set to discuss a re-treat from the city of Goma.A11nBangkok braced for antigov-ernment demonstrations, seenin part as a protest againstousted Thai leader Thaksin. A11n Elections in Catalonia Sun-day could put the wealthy re-gion on a path toward inde-pendence from Spain. A10nA probe faulted Bahrainfor failing to bring to justicepeople guilty of human-rightsabuses against protesters. A8n Vietnam’s top officialswillhave to win the annual sup-port of lawmakers beginningnext year under a new law. A9nSarkozywas questioned ina campaign-financing probe,butmagistrates said no chargeshave been filed against the for-mer French president.A11n Sudan said it arrested 13people, including the nationalsecurity head, for suspectedroles in an attempted coup. A11nAmassive pileup involvingover 140 vehicles on HighwayI-10 in Texas killed two peopleand injured more than 80. A6n Four Chinese oil workerswere freed by Colombia’sFARC rebels after being heldfor more than 17 months.nMexico’s president is pro-posing that the country changeits name from the UnitedMex-ican States to just Mexico.A11

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Living in the Past:The Joys and Headaches of a Historic Home

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The rising cost of a college ed-ucation is hitting one group espe-cially hard: the millions of stu-dents who drop out withoutearning a degree.

A bachelor’s degree remains byfar the clearest path to the Ameri-can middle class. Even today,amid mounting concerns aboutthe rising cost of higher educa-tion and questions about the rele-vance of many college degrees, re-cent graduates have lower ratesof unemployment, higher earn-ings and better career prospectsthan their less educated peers.

But as more Americans thanever before attend college, more

too are dropping out before theyever don a cap and gown. Thatmeans millions of Americans aretaking on the debt of collegewithout getting the earningsboost that comes from a degree.Dropouts are more than fourtimes as likely as graduates to de-fault on their student loans.

“Graduating with a lot of debtcan be daunting,” says LaurenAsher, president of the Institutefor College Access and Success, anadvocacy organization promotingaccess to higher education. “Hav-ing a lot of debt and not graduat-ing is even more daunting.”

The complexity of the student-loan system—a web of public, pri-vate and subsidized loans that to-

gether add up to more than $1trillion—makes it difficult toknow exactly how much debt isheld by dropouts. But the scale ismassive. A 2011 study by the In-stitute for Higher Education Pol-icy, a Washington, D.C.-based re-search firm, found 58% of the 1.8million borrowers whose studentloans began to be due in 2005hadn’t received a degree. Some59% of them were delinquent ontheir loans or had defaulted, com-pared with 38% of college gradu-ates. The problem has almost cer-tainly worsened since, as therecession wiped out job opportu-nities for less-educated workers.

“Students who don’t graduatePleaseturntopageA6

BY BEN CASSELMAN

The Cost of Dropping OutMillions Struggle With High College Debt and No Degree

A year before the governmentcharged Mathew Martoma withinsider trading, it tried to gethim to turn against his formerboss, Steven A. Cohen.

Federal agents, including Fed-eral Bureau of Investigation caseagent Matthew T. Callahan,turned up at the Boca Raton,Fla., home of Mr. Martoma, aformer portfolio manager at anaffiliate of SAC Capital AdvisorsL.P. Agents tried and failed topersuade him to be a cooperat-ing witness in the government’seffort to build a criminal caseagainst Mr. Cohen, the founderof SAC and one of the biggestnames in the hedge-fund world,said people close to the case.

On Tuesday, federal prosecu-tors and the Securities and Ex-change Commission accused Mr.Martoma of participating in themost lucrative insider tradingscheme ever charged. CharlesStillman, a lawyer for Mr. Mar-toma, said Wednesday that hisclient denies any wrongdoingand “continues to look forwardto his day in court.”

A spokesman for SAC declinedto comment beyond a statementissued Tuesday: “Mr. Cohen andSAC are confident that they haveacted appropriately and will con-tinue to cooperate with the gov-ernment’s inquiry.”

The government’s attempt toengage Mr. Martoma as a coop-erating witness shows the highlevel of focus placed on Mr. Co-hen, whose $14 billion fund hasposted some of the best returnson Wall Street. It also demon-strates how the government hasbeen unable so far to implicateMr. Cohen in Mr. Martoma’s al-leged wrongdoing.

Prosecutors have been tryingPleaseturntothenextpage

BY MICHAEL ROTHFELDAND CHAD BRAY

AuthoritiesTriedtoFlipTrader inInsiderCase

By Geeta Anand in Mumbaiand Betsy McKay in Atlanta

HowFighttoTameTBMadeItStronger

EATING OUT: Hundreds of residents of New York City’s Rockaways neighborhood, still recovering from October’ssuperstorm Sandy, dined on turkey lunches provided by volunteers. The scene was repeated throughout the area.

AssociatedPress

A Sunny Thanksgiving Feast for Storm’s Victims

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