March 21, 2018

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Zuckerberg's Former Mentor Weighs In On Cambridge Analytica Statement

After days of silence over the Cambridge Analytica breach, Facebook CEO Mark Zuckerberg released a statement. Zuckerberg’s former mentor Roger McNamee shares his reaction with NPR’s Ailsa Chang.

AILSA CHANG, HOST:

Facebook CEO Mark Zuckerberg has finally broken his silence. He issued a statement, which he posted to his own Facebook page, addressing the controversy over how an outside firm harvested the profiles of 50 million Facebook users. Zuckerberg says the company made mistakes, that it will audit thousands of apps and it will put in more safeguards to protect user data. Roger McNamee is managing director at the private equity firm Elevation Partners. He was an early investor in Facebook. He’s still a current investor. And he has been a mentor to Mark Zuckerberg. Welcome.

ROGER MCNAMEE: It’s a great pleasure, Ailsa.

CHANG: What do you make of Zuckerberg’s statement today?

MCNAMEE: I think if he had made the statement in 2015, it would have been completely appropriate. 2015 is when they fully understood what had happened with Cambridge Analytica. And instead, they remained absolutely silent for more than two years knowing that this abuse had occurred. But it’s actually worse than that, Ailsa, because in 2016, Facebook had employees embedded in the Trump campaign working side by side with Cambridge Analytica employees. And their job was to get Trump elected. And they did a lot of things together using this exact data set that was taken inappropriately from Facebook in order to get Trump elected.

And the important thing is the senior executives at Facebook should have known all the details of that at the time because it was well-known that Cambridge Analytica was working for Trump. And so if Mark wants us to trust him, he’s going to have to start with actions.

CHANG: And about those actions that you think Zuckerberg should move forward with – when you read his statement, did you think that it outlined enough action?

MCNAMEE: No. I think the problem here is it doesn’t outline a reasonable plan at all. Again, there are a series of things he has to do simply to demonstrate good faith. He does need to turn over all of the data relative to 2016 with respect to the Russian interference. And he needs to give that to the investigating committees and of course to Robert Mueller. He also needs to reach out to every one of the 126 million Facebook users and 20-plus million Instagram users who were touched by the Russian interference. Explain what happened. Take the blame for essentially being a platform the Russians used to interfere in our election.

CHANG: What would make you pull your money out of Facebook now? You’re still an investor.

MCNAMEE: I am, but I have been selling the stock because I really feel that they’re destroying value, and they’ve harmed democracy. I think their strategy of fighting this issue makes absolutely no sense. There’s no happy ending to the plan that they’re on. I mean, let’s be clear. In 2011, the company signed a consent decree with the Federal Trade Commission that required them to gain positive approval from users for any sharing of their information. You know, they needed to have what is known as informed consent, and Facebook should have hired a whole team to take care of that. And they chose not to do that.

But I still feel terrible about it because, at the end of the day, these were my friends. I helped them be successful. I wanted them to be successful. And I was obviously really pleased with all the success they had. What I didn’t know was that they were behaving in a manner that is just totally inappropriate. And had I had a chance to do it over again, I would have behaved differently.

CHANG: Roger McNamee is managing director at the private equity firm Elevation Partners. He was an early investor in Facebook. Thank you very much for joining us.

MCNAMEE: My pleasure.

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Research Misconduct Allegations Shadow New CDC Director

Dr. Robert Redfield, named CDC director Wednesday, spoke during the Aid for AIDS “My Hero Gala” in New York City in 2013.

Craig Barritt/Getty Images for Aid for Aids/Getty Images

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The Trump administration named HIV expert Dr. Robert Redfield to lead the Centers for Disease Control and Prevention, ignoring complaints that he botched high-profile vaccine research more than 20 years ago.

The Army in 1994 acknowledged accuracy issues with HIV vaccine clinical trials led by Redfield, but concluded at the time that the data errors did not constitute misconduct.

In an announcement Wednesday afternoon, Health and Human Services Secretary Alex Azar emphasized Redfield’s care of HIV/AIDS patients and his work as a researcher, which included the controversial research.

Yet one of the whistleblowers who first raised the matter to the Army told Kaiser Health News this week that he remains so troubled about Redfield’s handling of the vaccine research that he has decided to speak out publicly.

Redfield was principal investigator over clinical trials of a treatment vaccine at the Walter Reed Army Institute of Research. The research was conducted at a time when there was intense pressure to come up with a treatment for HIV/AIDS, which often killed patients within a matter of months.

“Either he was egregiously sloppy with data or it was fabricated,” said former Air Force Lt. Col. Craig Hendrix, a doctor who is now director of the division of clinical pharmacology at Johns Hopkins University School of Medicine. “It was somewhere on that spectrum, both of which were serious and raised questions about his trustworthiness.”

In a letter to Trump this week, Washington Sen. Patty Murray, the ranking Democrat on the health committee, cited the research controversy as an example of a “pattern of ethically and morally questionable behavior” by Redfield that should prompt the president to reconsider the appointment.

Redfield’s appointment, which does not require Senate confirmation, was leaked to the news media over the weekend. Redfield did not respond to questions.

Redfield, who denied any scientific misconduct at the time, is now an HIV/AIDS specialist at the University of Maryland School of Medicine. He has been praised by his supporters for his care of patients. He oversees a clinical program that treats 6,000 patients in the Baltimore-Washington area, according to an online bio.

But Redfield’s critics said the appointment demonstrates that the Trump administration is not vetting appointees thoroughly. The first CDC head, Brenda Fitzgerald, stepped down in January after a controversy over her purchase of tobacco stocks, and former HHS Secretary Tom Price resigned late last year amid criticism over his use of government and private planes for official travel.

“The White House claimed they would do better background checks,” said Dr. Sidney Wolfe, founder and senior adviser of Public Citizen’s Health Research Group. “But that statement is dangerously laughable. If they had done a proper background check, they wouldn’t have chosen Dr. Redfield.”

Public Citizen, a Washington watchdog group, was a leading critic of the Army’s handling of Redfield’s data at the time and obtained and published documents that detailed the controversy.

Hendrix, who was the director of an Air Force HIV clinical unit when he raised the concerns, said: “Two members of his [Redfield’s] team told me they had tried to replicate the analysis, but they couldn’t. When they tried to go to the Army, they said they were ignored.”

After Hendrix couldn’t replicate the results, he drafted a letter to his superiors reporting the data problems.

Hendrix said Redfield’s superiors initially told him not to send a letter detailing the concerns. Instead, the military scheduled a meeting with Redfield and other researchers so Hendrix could discuss the concerns. In the meeting, Hendrix recalled, Redfield acknowledged he had overstated how promising the results were.

“I thought it was resolved,” said Hendrix, who said he later called Redfield to say he was proud to work in an organization that could openly discuss such concerns.

However, Hendrix soon heard Redfield make the same inaccurate representations of the data at a conference and decided to file an official complaint requesting an investigation into scientific misconduct.

An Air Force institutional review board also recommended that the Army launch an inquiry stating: “The committee agreed the information presented by Dr. Redfield seriously threatens his credibility as a researcher and has the potential to negatively impact AIDS research funding for military institutions as a whole.”

But the Army did not appear to launch a full investigation, said Hendrix, who was interviewed at the time by the military official who conducted the inquiry. The military official declined Hendrix’s attempts to provide documented evidence, telling him the investigation was “informal.”

Hendrix later asked the commander of his hospital about the outcome of the investigation. He recalled that the commander called another officer to ask.

“I just remember him saying “Yes, sir,” he said. “When he hung up, he told me, ‘We will not be discussing this again.’ “

Redfield was transferred from the laboratory he headed and assigned to treat patients, although the Army said he was not being punished. The Army also said the data would be corrected, and the military scrapped the program.

The project had earlier drawn criticism because Congress had set aside $20 million for the vaccine after lobbying by a former senator on behalf of the manufacturer.

Hendrix said he occasionally interacted over the years with Redfield and holds no grudges.

“Before this happened, he made important contributions to HIV-prevention efforts,” he said. “I respected him.”

However, he said, he remains disturbed by the military’s handling of the matter. He teaches a class on medical ethics and uses his own experience without naming Redfield to describe to his students the ethical quandaries faced in research.

Faulty data can lead other scientists to repeat the same mistakes and prompt participants to seek out trials for drugs and vaccines that don’t work.

“It’s a huge waste of funds,” he said. “But just as importantly, it diminishes trust, which is essential in science. If truth is eroded, then the whole enterprise falls apart.”


Kaiser Health Newsis a nonprofit news service covering health issues. It is an editorially independent program of the Kaiser Family Foundationthat is not affiliated with Kaiser Permanente.

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Tax Change Delivers A Blow To Professional Sports

Houston Astros starting pitcher Justin Verlander was traded from the Detroit Tigers in a move that that experts estimate netted the Astros about $10 million, though no money changed hands between the two teams.

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Jeff Roberson/AP

A single four-letter word — added to a provision of the tax code — has professional sports leagues scrambling, as teams face what could be millions of dollars in new taxes.

“Real.”

The revision changed a section of the tax code that applies to “like-kind exchanges.” Under the old law, farmers, manufacturers and other businesses could swap certain “property” assets — such as trucks and machinery — without immediately paying taxes on the difference in value.

The 2017 tax overhaul inserted the word “real” before “property.” With that, the provision now applies only to real estate swaps.

That means teams could be looking at tax bills in the millions for trading player contracts. Major League Baseball is already lobbying Washington to carve out an exception.

Jim Tankersley, who reported on the issue this week for The New York Times, explains what the change could mean for teams, and how leagues are responding.

This interview has been lightly edited for clarity.


Interview Highlights

What the provision is, and how it changed

The provision mostly applies to farmers and fleet owners, people who own machinery. What it allows you to do is, if you trade property … you don’t pay taxes on the value you gain in that trade, until you sell the truck. …

This provision has been narrowed now, so that it only applies to real estate. And that excludes trucks and farm animals … and baseball players.

This is a $31 billion savings over 10 years, according to the Joint Committee on Taxation.

On why lawmakers narrowed the tax break

There were a lot of provisions like this in the tax bill. Lawmakers call these changes “base-broadening,” but what that really means is: they’re raising some taxes to capture new federal revenue, in order to pay for the tax rates they cut. Lawmakers needed more money to pay for those rates, and the way they found that money was to close loopholes like the one that was in this provision.

On how this affects sports trading

Right now, based on a ruling from the ’60s, when teams trade players, [the players] are treated like a “like-kind exchange.” … A player contract is like a truck.

But now, because they’re not real estate, these players have to be traded in a way that there might be taxable values.

What that means is, teams have to figure out how much a player is worth to them in dollar figures, and how much the player they might be giving away is worth. And if they’re getting more back than they gave, they’ve got to pay taxes on that — capital gains taxes.

So the question is: How do you value [each player]? Is he ‘how many extra wins he brings to your team’? Is he ‘how many extra wins he brings for how much money he costs’? Or is he some special formula of ‘how much he would bring to you value-wise’ that is different from one team to the other, because your team might have three second basemen and my team has none?

On the size of the tax hit

The Houston Astros won the World Series last year. And on the way to winning the World Series, they traded for a pitcher named Justin Verlander from the Detroit Tigers. Some experts I talked to estimate that the value the Astros got back in that trade was probably about $10 million above what they had given up. So in that case, $10 million value, 15 percent capital gains tax — that’s $1.5 million that the Astros would have give to the government. And the Astros have made several other trades like that over the last few years. That adds up.

On sports leagues lobbying Congress

Major League Baseball says they’re already at work on it. I would not be surprised if the other leagues are close behind. …

One reason Congress might not [go along with what major sports leagues want] is because of Washington partisan politics. Democrats don’t seem likely to give Republicans any fixes on this law that [the GOP] passed without Democratic votes, so you could see a stalemate going forward on this. A reason to think that sports lobbyists might actually get Congress to cave is that Congress always caves to sports leagues. Baseball has an antitrust exemption. ….

It’s a real possibility that [Congress could just pass] the ‘Make Sports Trades Great Again’ Act of 2018 on a voice vote, because nobody wants to be the one who stopped their local team from making the trade it needed to win a championship.

NPR’s Emily Sullivan produced this story for digital.

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Movie News: Amy Poehler to Star in and Direct 'Wine Country'; Watch Jeremy Renner in First 'Tag' Trailer

The House

Wine Country: Amy Poehler (The House, above) will direct and star in Wine Country. The comedy will mark her directorial debut; it follows longtime friends who travel to the Napa Valley region of California to celebrate a birthday. Rachel Dratch, Ana Gasteyer, Paula Pell, Maya Rudolph and Emily Spivey will also star, while Tina Fey will be featured .Spivey wrote the original screenplay with Liz Cackowski. Production will begin later this month. [The Hollywood Reporter]

It’s happening—Amy Poehler’s directorial debut, Wine Country, is coming soon to Netflix! Starring Amy Poehler, Rachel Dratch, Ana Gasteyer, Paula Pell, Maya Rudolph, Emily Spivey and featuring Tina Fey. Get excited. Get real excited. pic.twitter.com/kZedPmzeVC

— Netflix US (@netflix) March 20, 2018

The Big Sick

Stuber: Kumail Nanjiani (The Big Sick, above) will star in Stuber. Dave Bautista is already set to star in the action comedy, which will be directed by Michael Dowse (Goon). Tripper Clancy wrote the original script. Nanjiani will portray an Uber driver who picks up a cop (Bautista) on the trail of a killer. [Heat Vision]

Wonder

Good Boys: Jacob Tremblay (Room; Wonder, above with Julia Roberts) will star in Good Boys. The film is described as an “R-rated comedy” that revolves around four boys who skip school for a day-long adventure. Lee Eisenberg and Gene Stupnitsky, whose credits as a writing team include Year One and Bad Teacher, wrote the screenplay and will make their directorial debut. Producers include Seth Rogen and Evan Goldberg. [Deadline]

Tag

Tag Trailer: Jeremy Renner (above), Jon Hamm, Ed Helms and Hannibal Buress star in Tag as friends who gather every year for a month-long game of tag. As the first trailer shows, however, their annual gathering may be coming to a close. Annabelle Wallis, Rashida Jones and Isla Fisher also star in the action-comedy, which will open in theaters on June 15. [Movieclips]

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Run-DMC, Pauline Oliveros, 'Rumours,' Chic And Beethoven Added To Library Of Congress

Run-D.M.C. backstage at the Grammy Awards in March 1987. The hip-hop group’s 1986 album Raising Hell is one of 25 new inductees to the Library of Congress Recording Registry.

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The National Library of Congress has shared its latest batch of musical inductees to the National Recording Registry. The 25 works — a mix of singles, field recordings, albums and soundtracks — represent myriad genres and time periods, and bring the Registry’s overall catalog up to 500 entries.

From pop, the class includes The Temptations‘ 1965 hit single “My Girl”; Tony Bennett‘s 1962 love song “I Left My Heart in San Francisco”; the soundtrack to The Sound of Music; Harry Belafonte‘s 1965 album Calypso; Arlo Guthrie’s 1967 anti-war monologue “Alice’s Restaurant Massacree”; the 1967 compilation New Sounds in Electronic Music, which included separate works from Steve Reich, Richard Maxfield and Pauline Oliveros; Chic’s indelible disco hit “Le Freak” from 1978; and Run-D.M.C.‘s 1986 album Raising Hell.

Other timeless inductions run the gamut from Arthur Schnabel’s The Complete Beethoven Piano Sonatas (1932-1935), the works’ first recordings, to historical field recordings of songs, preserved on wax cylinders by George Herzog in 1928, from the Sioux’s Yanktonai-Dakota band. The cylinders captured songs of the band following its relocation to Standing Rock Reservation (near the site of the protracted Dakota Access Pipeline protests) and songs recalled from times prior to establishment of the reservation. The 1930 bolero folk song “Lamento Borincano” gave a voice to the plight of Puerto Rico’s farming community during the Great Depression. NBC’s two-month radio series covering the United Nations Conference on International Organization, which took place in San Francisco between April and June, 1945, gives a fly-on-the-wall account of how the United Nations’ charter was created.

The 2017 inductees are listed chronologically below.

“Dream Melody Intermezzo: Naughty Marietta” (single), Victor Herbert and his Orchestra (1911)

Standing Rock Preservation Recordings, George Herzog and Members of the Yanktoni Tribe (1928)

“Lamento Borincano” (single), Canario y Su Grupo (1930)

“Sitting on Top of the World” (single), Mississippi Sheiks (1930)

The Complete Beethoven Piano Sonatas (album), Artur Schnabel (1932-1935)

“If I Didn’t Care” (single), The Ink Spots (1939)

Proceedings of the United Nations Conference on International Organization (4/25/45-6/26/45)

Folk Songs of the Hills (album), Merle Travis (1946)

“How I Got Over” (single), Clara Ward and the Ward Singers (1950)

“(We’re Gonna) Rock Around the Clock” (single), Bill Haley and His Comets (1954)

Calypso (album), Harry Belafonte (1956) album

“I Left My Heart in San Francisco” (single), Tony Bennett (1962)

“King Biscuit Time” (radio), Sonny Boy Williamson II and others (1965)

“My Girl” (single), The Temptations (1964)

The Sound of Music (soundtrack), Various (1965)

“Alice’s Restaurant Massacree” (single), Arlo Guthrie (1967)

New Sounds in Electronic Music (album), Steve Reich, Richard Maxfield, Pauline Oliveros (1967)

An Evening with Groucho (album), Groucho Marx (1972)

Rumours, (album), Fleetwood Mac (1977)

“The Gambler” (single), Kenny Rogers (1978)

“Le Freak” (single), Chic (1978)

“Footloose” (single), Kenny Loggins (1984) remake released in 2011.

Raising Hell (album), Run-DMC (1986)

“Rhythm Is Gonna Get You” (single), Gloria Estefan and the Miami Sound Machine (1987)

Yo-Yo Ma Premieres: Concertos for Violoncello and Orchestra (album), Various (1996)

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