Monday, October 31, 2011

Astronomers Find Recoiling Supermassive Black Hole

In a Hubble picture, a red circle indicates an object in a distant galaxy that could be an ejected black hole. (Credit: Image courtesy of SRON Netherlands Institute for Space Research)



Astronomers have found a possible supermassive black hole that is recoiling out of a distant galaxy at high speed. The black hole, visible with X-rays as a clear star, is not located in the center of the galaxy, as would normally be the case. Recoiling black holes are interesting because they provide insights into how supermassive black holes develop in the center of galaxies.

Utrecht University student Marianne Heida discovered the bizarre star during her final undergraduate project, undertaken at SRON Netherlands Institute for Space Research, in a galaxy more than half a billion light years away. To make the discovery, she had to compare hundreds of thousands of X-ray sources, picked up by chance, with the positions of millions of galaxies. Normally each galaxy contains a supermassive black hole at its centre that sometimes lights up under X-rays. Yet the star Heida discovered was clearly not located in the center of the system. However, under X-rays the object is so bright that it can best be compared to other bright supermassive black holes in the universe.
A supermassive black hole in the center of a galaxy easily weighs more than 1 billion times the mass of the sun. Such a heavy object could be located so far from the center of a system if it recoils out of the center at considerable speed. The expulsion can take place under special conditions when two black holes merge. The newly formed black hole created after the merging process is then shot out of the center of the system at high speed. Over the last few years various predictions have been made about the speed at which the hole would be slung away. These calculations have only recently become possible, as they require extremely powerful computers. The calculations reveal that the speed of the hole mainly depends on the direction and speed with which the two black holes rotate around their axes before merging.
Heida's research result is probably the tip of the iceberg. Heida says: "We have found even more of this strange class of X-ray sources. However, for these objects we first of all need accurate measurements from NASA's Chandra satellite to pinpoint them more precisely." Finding more recoiling black holes will provide a better understanding of the characteristics of black holes before they merge.
In future, it might even be possible to observe this process with the planned LISA satellite. Astronomers hope to use this satellite to measure the gravity waves that the two merging black holes emit. Ultimately this information must tell us if supermassive black holes in the cores of galaxies are the result of many lighter black holes merging.
Marianne Heida carried out her research at SRON Netherlands Institute for Space Research in Utrecht under the supervision of Peter Jonker. The research results have been accepted for publication in The Monthly Notices of the Royal Astronomical Society. The authors are: Peter G. Jonker (SRON), Manuel A.P. Torres (Harvard-Smithsonian Center for Astrophysics), Andy C. Fabian (Cambridge), Marianne Heida (Utrecht), Giovanni Miniutti (Centro de Astrobiologia), Dave Pooley (Wisconsin).

Planets Smashed Into Dust Near Supermassive Black Holes

2006 Hubble Space Telescope image of the "light echo" of dust illuminated by the nearby star V838 Monocerotis that became 600,000 times more luminous than our Sun in January 2002. The flash is believed to have been caused by a giant collision of some kind, e.g., between two stars or a star and a planet. (Credit: NASA, ESA, and H. Bond (STScI))



Fat doughnut-shaped dust shrouds that obscure about half of supermassive black holes could be the result of high speed crashes between planets and asteroids, according to a new theory from an international team of astronomers.

The scientists, led by Dr. Sergei Nayakshin of the University of Leicester, are publishing their results in the journal Monthly Notices of the Royal Astronomical Society.
Supermassive black holes reside in the central parts of most galaxies. Observations indicate that about 50% of them are hidden from view by mysterious clouds of dust, the origin of which is not completely understood. The new theory is inspired by our own Solar System, where the so-called zodiacal dust is known to originate from collisions between solid bodies such as asteroids and comets. The scientists propose that the central regions of galaxies contain not only black holes and stars but also planets and asteroids.
Collisions between these rocky objects would occur at colossal speeds as large as 1000 km per second, continuously shattering and fragmenting the objects, until eventually they end up as microscopic dust. Dr. Nayakshin points out that this harsh environment -- radiation and frequent collisions -- would make the planets orbiting supermassive black holes sterile, even before they are destroyed. "Too bad for life on these planets," he says, "but on the other hand the dust created in this way blocks much of the harmful radiation from reaching the rest of the host galaxy. This in turn may make it easier for life to prosper elsewhere in the rest of the central region of the galaxy."
He also believes that understanding the origin of the dust near black holes is important in our models of how these monsters grow and how exactly they affect their host galaxies. "We suspect that the supermassive black hole in our own Galaxy, the Milky Way, expelled most of the gas that would otherwise turn into more stars and planets," he continues, "Understanding the origin of the dust in the inner regions of galaxies would take us one step closer to solving the mystery of the supermassive black holes."

Sunday, October 30, 2011

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Saturday, October 29, 2011

Hubble Spies Galaxy Silhouettes

Astronomers used Hubble's Advanced Camera for Surveys to snap images of NGC 253 when they spied the two galaxies in the background. From ground-based telescopes, the two galaxies look like a single blob. But the Advanced Camera's sharp "eye" distinguished the blob as two galaxies, cataloged as 2MASX J00482185-2507365. (Credit: Credit: NASA, ESA, and The Hubble Heritage Team (STScI/AURA). Acknowledgement: B. Holwerda (Space Telescope Science Institute) and J. Dalcanton (University of Washington))



 NASA's Hubble Space Telescope has captured a rare alignment between two spiral galaxies. The outer rim of a small, foreground galaxy is silhouetted in front of a larger background galaxy. Skeletal tentacles of dust can be seen extending beyond the small galaxy's disk of starlight.

Such outer dark dusty structures, which appear to be devoid of stars, like barren branches, are rarely so visible in a galaxy because there is usually nothing behind them to illuminate them. Astronomers have never seen dust this far beyond the visible edge of a galaxy. They do not know if these dusty structures are common features in galaxies.
Understanding a galaxy's color and how dust affects and dims that color are crucial to measuring a galaxy's true brightness. By knowing the true brightness, astronomers can calculate the galaxy's distance from Earth.
Astronomers calculated that the background galaxy is 780 million light-years away. They have not as yet calculated the distance between the two galaxies, although they think the two are relatively close, but not close enough to interact. The background galaxy is about the size of the Milky Way Galaxy and is about 10 times larger than the foreground galaxy.
Most of the stars speckled across this image belong to the nearby spiral galaxy NGC 253, which is out of view to the right. Astronomers used Hubble's Advanced Camera for Surveys to snap images of NGC 253 when they spied the two galaxies in the background. From ground-based telescopes, the two galaxies look like a single blob. But the Advanced Camera's sharp "eye" distinguished the blob as two galaxies, cataloged as 2MASX J00482185-2507365. The images were taken on Sept. 19, 2006.
The results have been submitted for publication in The Astronomical Journal.

Astronomers Pin Down Galaxy Collision Rate With Hubble Data

Galactic Wrecks Far from Earth: These images from NASA's Hubble Space Telescope's ACS in 2004 and 2005 show four examples of interacting galaxies far away from Earth. The galaxies, beginning at far left, are shown at various stages of the merger process. The top row displays merging galaxies found in different regions of a large survey known as the AEGIS. More detailed views are in the bottom row of images. (Credit: NASA; ESA; J. Lotz, STScI; M. Davis, University of California, Berkeley; and A. Koekemoer, STScI)



A new analysis of Hubble surveys, combined with simulations of galaxy interactions, reveals that the merger rate of galaxies over the last 8 billion to 9 billion years falls between the previous estimates.

The galaxy merger rate is one of the fundamental measures of galaxy evolution, yielding clues to how galaxies bulked up over time through encounters with other galaxies. And yet, a huge discrepancy exists over how often galaxies coalesced in the past. Measurements of galaxies in deep-field surveys made by NASA's Hubble Space Telescope generated a broad range of results: anywhere from 5 percent to 25 percent of the galaxies were merging.
The study, led by Jennifer Lotz of the Space Telescope Science Institute in Baltimore, Md., analyzed galaxy interactions at different distances, allowing the astronomers to compare mergers over time. Lotz's team found that galaxies gained quite a bit of mass through collisions with other galaxies. Large galaxies merged with each other on average once over the past 9 billion years. Small galaxies were coalescing with large galaxies more frequently. In one of the first measurements of smashups between dwarf and massive galaxies in the distant universe, Lotz's team found these mergers happened three times more often than encounters between two hefty galaxies.
"Having an accurate value for the merger rate is critical because galactic collisions may be a key process that drives galaxy assembly, rapid star formation at early times, and the accretion of gas onto central supermassive black holes at the centers of galaxies," Lotz explains.
The team's results are accepted for publication appeared inThe Astrophysical Journal.
The problem with previous Hubble estimates is that astronomers used different methods to count the mergers.
"These different techniques probe mergers at different 'snapshots' in time along the merger process," Lotz says. "It is a little bit like trying to count car crashes by taking snapshots. If you look for cars on a collision course, you will only see a few of them. If you count up the number of wrecked cars you see afterwards, you will see many more. Studies that looked for close pairs of galaxies that appeared ready to collide gave much lower numbers of mergers than those that searched for galaxies with disturbed shapes, evidence that they're in smashups."
To figure out how many encounters happen over time, Lotz needed to understand how long merging galaxies would look like "wrecks" before they settle down and begin to look like normal galaxies again.
That's why Lotz and her team turned to highly detailed computer simulations to help make sense of the Hubble photographs. The team made simulations of the many possible galaxy collision scenarios and then mapped them to Hubble images of galaxy interactions.
Creating the computer models was a time-consuming process. Lotz's team tried to account for a broad range of merger possibilities, from a pair of galaxies with equal masses joining together to an interaction between a giant galaxy and a puny one. The team also analyzed different orbits for the galaxies, possible collision impacts, and how galaxies were oriented to each other. In all, the group came up with 57 different merger scenarios and studied the mergers from 10 different viewing angles. "Viewing the simulations was akin to watching a slow-motion car crash," Lotz says.
The simulations followed the galaxies for 2 billion to 3 billion years, beginning at the first encounter and continuing until the union was completed, about a billion years later.
"Our simulations offer a realistic picture of mergers between galaxies," Lotz says.
In addition to studying the smashups between giant galaxies, the team also analyzed encounters among puny galaxies. Spotting collisions with small galaxies are difficult because the objects are so dim relative to their larger companions.
"Dwarf galaxies are the most common galaxy in the universe," Lotz says. "They may have contributed to the buildup of large galaxies. In fact, our own Milky Way galaxy had several such mergers with small galaxies in its recent past, which helped to build up the outer regions of its halo. This study provides the first quantitative understanding of how the number of galaxies disturbed by these minor mergers changed with time."
Lotz compared her simulation images with pictures of thousands of galaxies taken from some of Hubble's largest surveys, including the All-Wavelength Extended Groth Strip International Survey (AEGIS), the Cosmological Evolution Survey (COSMOS), and the Great Observatories Origins Deep Survey (GOODS), as well as mergers identified by the DEEP2 survey with the W.M. Keck Observatory in Hawaii. She and other groups had identified about a thousand merger candidates from these surveys but initially found very different merger rates.
"When we applied what we learned from the simulations to the Hubble surveys in our study, we derived much more consistent results," Lotz says.
Her next goal is to analyze galaxies that were interacting around 11 billion years ago, when star formation across the universe peaked, to see if the merger rate rises along with the star formation rate. A link between the two would mean galaxy encounters incite rapid star birth.
In addition to Lotz, the coauthors of the paper include Patrik Jonsson of Harvard-Smithsonian Center for Astrophysics in Cambridge, Mass; T. J. Cox of Carnegie Observatories in Pasadena, Calif.; Darren Croton of the Centre for Astrophysics and Supercomputing at Swinburne University of Technology in Hawthorn, Australia; Joel R. Primack of the University of California, Santa Cruz; Rachel S. Somerville of the Space Telescope Science Institute and The Johns Hopkins University in Baltimore, Md.; and Kyle Stewart of NASA's Jet Propulsion Laboratory in Pasadena, Calif.
The Hubble Space Telescope is a project of international cooperation between NASA and the European Space Agency. NASA's Goddard Space Flight Center manages the telescope. The Space Telescope Science Institute (STScI) conducts Hubble science operations. STScI is operated for NASA by the Association of Universities for Research in Astronomy, Inc., in Washington, D.C.

Friday, October 28, 2011

Plants Feel the Force: How Plants Sense Touch, Gravity and Other Physical Forces


 "Picture yourself hiking through the woods or walking across a lawn," says Elizabeth Haswell, PhD, assistant professor of biology in Arts & Sciences at Washington University in St. Louis. "Now ask yourself: Do the bushes know that someone is brushing past them? Does the grass know that it is being crushed underfoot? Of course, plants don't think thoughts, but they do respond to being touched in a number of ways."

"It's clear," Haswell says, "that plants can respond to physical stimuli, such as gravity or touch. Roots grow down, a 'sensitive plant' folds its leaves, and a vine twines around a trellis. But we're just beginning to find out how they do it," she says.
In the 1980s, work with bacterial cells showed that they have mechanosensitive channels, tiny pores in the cells membrane that open when the cell bloats with water and the membrane is stretched, letting charged atoms and other molecules rush out of the cell. Water follows the ions, the cell contracts, the membrane relaxes, and the pores close.
Genes encoding seven such channels have been found in the bacterium Escherichia coli and 10 in Arabidopsis thaliana, a small flowering plant related to mustard and cabbage. Both E. coli and Arabidopsis serve as model organisms in Haswell's lab.
She suspects that there are many more channels yet to be discovered and that they will prove to have a wide variety of functions.
Recently, Haswell and colleagues at the California Institute of Technology, who are co-principal investigators on an National Institutes of Health (NIH) grant to analyze mechanosensitive channels, wrote a review article about the work so far in order to "get their thoughts together" as they prepared to write the grant renewal. The review appeared in the Oct. 11 issue ofStructure.
Swelling bacteria might seem unrelated to folding leaflets, but Haswell is willing to bet they're all related and that mechanosensitive ion channels are at the bottom of them all. After all, plant movements -- both fast and slow -- are ultimately all hydraulically powered; where ions go the water will follow.

Giant E. coli cells

The big problem with studying ion channels has always been their small size, which poses formidable technical challenges.
Early work in the field, done to understand the ion channels whose coordinated opening and closing creates a nerve impulse, was done in exceptionally large cells: the giant nerve cells of the European squid, which had projections big enough to be seen with the unaided eye.
Experiments with these channels eventually led to the development of a sensitive electrical recording technique known as the patch clamp that allowed researchers to examine the properties of a single ion channel. Patch clamp recording uses as an electrode a glass micropipette that has an open tip. The tip is small enough that it encloses a "patch" of cell membrane that often contains just one or a few ion channels.
Patch clamp work showed that there were many different types of ion channels and that they were involved not just in the transmission of nerve impulses but also with many other biological processes that involve rapid changes in cells.
Mechanosensitive channels were discovered when scientists started looking for ion channels in bacteria, which wasn't until the 1980s because ion channels were associated with nerves and bacteria weren't thought to have a nervous system.
In E. coli, the ion channels are embedded in the plasma membrane, which is inside a cell wall, but even if the wall could be stripped away, the cells are far too small to be individually patched. So the work is done with specially prepared giant bacterial cells called spherophlasts.
These are made by culturing E. coli in a broth containing an antibiotic that prevents daughter cells from separating completely when a cell divides. As the cells multiply, "snakes" of many cells that share a single plasma membrane form in the culture. "If you then digest away the cell wall, they swell up to form a large sphere," Haswell says.
Not that spheroplasts are that big. "We're doing most of our studies in Xenopus oocytes (frog eggs), whose diameters are 150 times bigger than those of spheroplasts," she says.

Three mechanosensitive channel activities

To find ion channels in bacteria, scientists did electrophysiological surveys of spheroplasts. They stuck a pipette onto the spheroplast and applied suction to the membrane as they looked for tiny currents flowing across the membrane.
"What they found was really amazing," Haswell says. "There were three different activities that are gated (triggered to open) only by deformation of the membrane." (They were called "activities" because nobody knew their molecular or genetic basis yet.)
The three activities were named mechanosensitive channels of large (MscL), small (MscS) and mini (MscM) conductance. They were distinguished from one another by how much tension you had to introduce in order to get them to open and by their conductance.
One of the labs working with spheroplasts was led by Ching Kung, PhD, at the University of Wisconsin-Madison. The MscL protein was identified and its gene was cloned in 1994 by Sergei Sukharev, PhD, then a member of Kung's lab. His tour-de-force experiment, Haswell says, involved reconstituting fractions of the bacterial plasma membrane into synthetic membranes (liposomes) to see whether they would confer large-channel conductance.
In 1999, the gene encoding MscS was identified in the lab of Ian Booth, PhD, at the University of Aberdeen. Comparatively, little work has been done on the mini channel, which is finicky and often doesn't show up, Haswell says, though a protein contributing to MscM activity was recently identified by Booth's group.
Once both genes were known, researchers did knockout experiments to see what happened to bacteria that didn't have the genes needed to make the channels. What they found, says Haswell, was that if both the MscL and MscS genes were missing, the cells could not survive "osmotic downshock," the bacterial equivalent of water torture.
"The standard assay," Haswell says, "is to grow the bacteria for a couple of generations in a very salty broth, so that they have a chance to balance their internal osmolyte concentration with the external one." (Osmolytes are molecules that affect osmosis, or the movement of water into and out of the cell.) "They do this," she says, "by taking up osmolytes from the environment and by making their own."
"Then," she says, "you take these bacteria that are chockfull of osmolytes and throw them into fresh water. If they don't have the MscS and MscL proteins that allow them to dump ions to avoid the uncontrolled influx of water, they don't survive." It's a bit like dumping saltwater fish into a freshwater aquarium.
Why are there three mechanosenstivie channel activities? The currently accepted model, Haswell says is that the channels with the smaller conductances are the first line of defense. They open early in response to osmotic shock so that the channel of large conductance, through which molecules the cell needs can escape, doesn't open unless it is absolutely necessary. The graduated response thus gives the cell its best chance for survival.

Crystallizing the proteins

The next step in this scientific odyssey, figuring out the proteins' structures, also was very difficult. Protein structures are traditionally discovered by purifying a protein, crystallizing it out of a water solution, and then bombarding the crystal with X-rays. The positions of the atoms in the protein can be deduced from the X-ray diffraction pattern.
In a sense crystallizing a protein isn't all that different from growing rock candy from a sugar solution, but, as always, the devil is in the details. Protein crystals are much harder to grow than sugar crystals and, once grown, they are extremely fragile. They even can even be damaged by the X-ray probes used to examine them.
And to make things worse MscL and MscS span the plasma membrane, which means that their ends, which are exposed to the periplasm outside the cell and the cytoplasm inside the cell, are water-loving and their middle sections, which are stuck in the greasy membrane, are repelled by water. Because of this double nature it is impossible to precipitate membrane proteins from water solutions.
Instead the technique is to surround the protein with what have been characterized as "highly contrived detergents," that protect them -- but just barely -- from the water. Finding the magical balance can take as long as a scientific career.
The first mechanosensitive channel to be crystallized was MscL -- not the protein in E. coli but the analogous molecule (a homolog) from the bacterium that causes tuberculosis. This work was done in the lab of one of Haswell's co-authors, Douglas C. Rees a Howard Hughes investigator at the California Institute of Technology.
MscS from E. coli was crystallized in the Rees laboratory several years later, in 2002, and an MscS protein with a mutation that left it stuck in the presumed open state was crystallized in the Booth laboratory in 2008. "So now we have two crystal structures for MscS and two (from different bacterial strains) for MscL," Haswell says.
Of plants and mutants
Up to this point, mechanosensitive channels might not seem all that interesting because the lives of bacteria are not of supreme interest to us unless they are making us ill.
However, says, Haswell, in the early 2000s, scientists began to compare the genes for the bacterial channels to the genomes of other organisms and they discovered that there are homologous sequences not just in other bacteria but also in some multicellular organisms, including plants.
"This is where I got involved," she says. "I was interested in gravity and touch response in plants. I saw these papers and thought these homologs were great candidates for proteins that might mediate those responses."
"There are 10 MscS-homologs in Arabidopsis and no MscL homologs," she says. "What's more, different homologs are found not just in the cell membrane but also in chloroplast and mitochondrial membranes. "
The chloroplast is the light-capturing organelle in a plant cell and the mitochondria is its power station; both are thought to be once-independent organisms that were engulfed and enslaved by cells which found them useful. Their membranes are vestiges of their free-living past.
The number of homologs and their locations in plant cells suggests these channels do much more than prevent the cells from taking on board too much water.
So what exactly were they doing? To find out Haswell got online and ordered Arabidopsis seeds from the Salk collection in La Jolla, Calif., each of which had a mutation in one of the 10 channel genes.
From these mutants she's learned that two of the ten channels control chloroplast size and proper division as well as leaf shape. Plants with mutations in these two MscS channel homologs have giant chloroplasts that haven't divided properly. The monster chloroplasts garnered her lab the cover of the August issue of The Plant Cell.
"We showed that bacteria lacking MscS and MscL don't divide properly either,"Haswell says, "so the link between these channels and division is evolutionarily conserved."

The big idea

But Haswell and her co-authors think they are only scratching the surface. "We are basing our understanding of this class of channels on MscS itself, which is a very reduced form of the channel," she says. "It's relatively tiny."
"But we know that some of the members of this family have long extensions that stick out from the membrane either outside or inside the cell. We suspect this means that the channels not only discharge ions, but that they also signal to the whole cell in other ways. They may be integrated into common signaling pathways, such as the cellular osmotic stress response pathway.
We think we may be missing a lot of complexity by focusing too exclusively on the first members of this family of proteins to be found and characterized," she says. "We think there's a common channel core that makes these proteins respond to membrane tension but that all kinds of functionally relevant regulation may be layered on top of that."
"For example," she says, "there's a channel in E. coli that's closely related to MscS that has a huge extension outside the cell that makes it sensitive to potassium. So it's a mechanosensitive channel but it only gates in the presence of potassium. What that's important for, we don't yet know, but it tells us there are other functions out there we haven't studied."

What about the sensitive plant?

So are these channels at the bottom of the really fast plant movements like the sensitive plant's famous touch shyness? (To see a movie of this and other "nastic" (fast) movements, go to the Plants in Motion site maintained by Haswell's colleague Roger P. Hangartner of Indiana University).
Haswell is circumspect. "It's possible," she says. "In the case of Mimosa pudica there's probably an electrical impulse that triggers a loss of water and turgor in cells at the base of each leaflet, so these channel proteins are great candidates.

Pure Water

Thursday, October 27, 2011

Ruth Madoff Says Couple Tried Suicide in 2008

                                                                         
                                                                               Ruth Madoff granted an interview.



On Christmas Eve 2008, two weeks after Bernard L. Madoff confessed to running history’s largest Ponzi  scheme, he and his wife, Ruth, attempted suicide in their Manhattan penthouse.
Mrs. Madoff said in an interview with The New York Times: “I don’t know whose idea it was, but we were both so saddened by everything that had happened. It was unthinkable to me: hate mail, phone calls, lawyers.”
The situation was “just horrific,” she continued. “And I thought, ‘I just can’t, I can’t take this. I don’t know how I’ll ever get through this, nor do I want to.’ So we decided to do it.”
According to Mrs. Madoff, who has been living in seclusion in Florida, she and her husband “were both in agreement — we were both sort of relieved to leave this place. It was very, very impulsive.”
Mrs. Madoff came under a fierce media spotlight after her husband’s arrest, unable to leave her apartment without being followed by photographers and being shunned by lifelong friends who had been her husband’s victims.
His victims stretched around the world, with paper losses in the vast Ponzi scheme totaling $64.8 billion and cash losses nearing $18 billion. Those who lost money in his long-running fraud included major charities, university endowments, offshore hedge funds and thousands of middle-income investors. Many of those investors were members of the Madoffs’ extended family.
More important to both of them than the media firestorm they faced, she said, was that she had become instantly estranged from her two sons, Mark and Andrew, who had turned in their father to law enforcement officials and precipitated his arrest on Dec. 11, 2008. He pleaded guilty three months later and is serving a 150-year sentence at a federal prison in Butner, N.C.
Christmas Eve had been a sorrowful evening, she said. She and her husband had spent it gathering together and wrapping some treasured jewelry and a few gift items they wanted to send to loved ones before they died.
Guessing at the required postage, Ruth Madoff covered the packages with stamps and mailed them to a few relatives and friends, enclosing short notes of affection and apology.
Mrs. Madoff said in the interview that she and her husband had discussed how many pills each should take — she weighed barely 100 pounds, he was heftier and taller — and then they both swallowed handfuls of what she thought was Ambien before climbing into their chintz-draped canopy bed.
Although she recalled the emotional pain she and her husband felt that evening, she also said she was “glad to wake up” from a long drug-induced slumber the next day. “I’m not sure how I felt about him waking up,” she added.
Mrs. Madoff said the couple never discussed suicide again, nor was she aware of her husband ever making another attempt. “But I have no idea why he didn’t — I don’t know how he lives with it all.”
In an e-mail from prison, her husband acknowledged that suicide “crossed my mind” after his arrest. Two factors deterred him, he said. He felt he could help in the effort to recover assets for his victims, and he “could not abandon my family.”
His family was shattered by his crime, cut off from one another by legal concerns and under constant suspicion in the media. Burdened by anger and grief, Mark Madoff committed suicide in his downtown Manhattan loft on Dec. 11, 2010, the second anniversary of his father’s arrest.
In recent media interviews, Mark’s widow, Stephanie Madoff Mack, disclosed that it was her husband’s second suicide attempt. In October 2009, he checked into a hotel near their home and took a large number of sedatives. He survived and underwent therapy, according to his widow’s account.
After years of silence and seclusion, Ruth Madoff agreed to talk with a Times reporter about the worst years of her life because her son Andrew had asked her to help promote a new authorized biography, “Truth and Consequences: Life Inside the Madoff Family,” to be published Monday by Little, Brown.
The information about the suicide attempt was first reported Wednesday evening by CBS News. An article based on Mrs. Madoff’s entire interview with The Times will appear on nytimes.com on Sunday evening. The interview was granted in exchange for an agreement not to publish the full report until then.


Europe Agrees to Basics of Plan to Resolve Euro Crisis

Chancellor Angela Merkel of Germany spoke during a news conference held at the end of a euro zone summit in Brussels on Thursday.



BRUSSELS — European leaders, in a significant step toward resolving the euro zone financial crisis, early Thursday morning obtained an agreement from banks to take a 50 percent loss on the face value of their Greek debt.

The agreement on Greek debt was crucial to assembling a comprehensive package to protect the euro, which has been keeping jittery markets on edge.
The accord was reached just before 4 a.m. after difficult bargaining. The severe reduction would bring Greek debt down by 2020 to 120 percent of that nation’s gross domestic product, a figure still enormous but more sustainable for an economy driven into recession by austerity measures.
The leaders agreed on Wednesday on a plan to force the Continent’s banks to raise new capital to insulate them from potential sovereign debt defaults. But there was little detail on how the Europeans would enlarge their bailout fund to achieve their goal of $1.4 trillion to better protect Italy and Spain.
After all the buildup to this summit meeting, failure here would have been a disaster. While the plan to require banks to raise new capital was generally approved without difficulty — banks will be forced to raise about $150 billion to protect themselves against losses on loans to shaky countries like Greece and Portugal — the negotiations over the Greek debt were difficult.
“The results will be a source of huge relief to the world at large, which was waiting for a decision,” President Nicolas Sarkozy of France said.
Chancellor Angela Merkel of Germany said: “I believe we were able to live up to expectations, that we did the right thing for the euro zone, and this brings us one step farther along the road to a good and sensible solution.”
In the face of considerable pressure from Europe’s leaders, the banks had been resisting requests that they voluntarily accept a loss of about 50 percent on their Greek loans, far more than the 21 percent agreed to previously. But after months of denying that Greece would have to restructure its large debt, which was trading at 40 percent of face value, European leaders forced the much larger reduction, known as a “haircut,” on the banks, while the International Monetary Fund promised more aid to Greece.
Germany had taken a tougher stance than France with the banks. Mrs. Merkel was willing to think about imposing an involuntary write-down on the private sector, but Mr. Sarkozy remained worried about the consequences on the markets and the banking system.
In a statement, Charles Dallara, managing director of the Institute of International Finance, which represents the major banks, said he welcomed the deal. He called it “a comprehensive package of measures to stabilize Europe, to strengthen the European banking system and to support Greece’s reform effort.”
In a meeting described as crucial for the fate of the euro zone, the leaders had been trying to restore market confidence in the euro and in the creditworthiness of the 17 countries that use it.
In what the leaders saw as an important first step, banks would be required under the recapitalization plan to raise $147 billion by the end of June — enough to increase their holdings of safe assets to 9 percent of their total capital. That percentage is regarded as crucial to assure investors of the banks’ financial health, given their large portfolios of sovereign debt.
German lawmakers voted overwhelmingly on Wednesday to authorize Mrs. Merkel to negotiate an expansion in an emergency bailout fund to $1.4 trillion, more than double its current size of about $610 billion. The vote followed Mrs. Merkel’s plea that the lawmakers overcome their aversion to risk and put Germany, Europe’s strongest economy, firmly behind efforts to combat the crisis, which has unnerved financial markets far beyond the Continent.
“The world is looking at Germany, whether we are strong enough to accept responsibility for the biggest crisis since World War II,” Mrs. Merkel said in an address to Parliament in Berlin. “It would be irresponsible not to assume the risk.”
The $1.4 trillion figure was generally accepted as the likely target for negotiators here, but many questions remained about how the enlarged fund would be financed.
Europe did not face any hard deadline to forge a deal, as it did recently when it had to act to head off a Greek default, but its leaders wanted to agree on a definitive plan to address the systemic aspects of the euro crisis rather than issue vague proclamations as they had so often in the past.
There was an informal deadline — the beginning of the Group of 20 summit meeting on Nov. 3 and 4 in Cannes, France. President Obama and other world leaders will arrive there expecting that Europe will no longer be a drag on the global economy.
The overall euro deal under discussion is complicated, weaving together the efforts to restructure Greek debt, increase the capital of Europe’s banks and expand the bailout fund so that it can ward off a financial panic in Italy — the euro zone’s third-largest economy — as well as in the relatively small economies of Greece and Portugal. Attention has focused on Italy because its government seems incapable of responding to the crisis, which has undermined the markets’ faith in Europe’s capacity to solve its problems.
Mrs. Merkel and Mr. Sarkozy upbraided Italy’s prime minister, Silvio Berlusconi, on Sunday for failing to follow through on his promises of budget cuts and various economic changes. But Mr. Berlusconi, hobbled by an internal power struggle, managed to bring only a “letter of intent” to Brussels outlining plans to carry out the kind of economic changes that his counterparts want.
The Europeans also want Mr. Berlusconi to live up to his promises to do more to reduce Italy’s huge accumulated debt and to promote economic growth in a largely stagnant economy. While Italy’s annual deficit is modest, the cost of financing its debt could tear holes in its budget if left unchecked.
Early Thursday, the European Union president, Herman Van Rompuy, said that the leaders welcomed the new Italian initiatives to produce more growth and competitiveness. “But we now need implementation,” he said.
Given reasonable progress made by Ireland, Portugal and Spain to fix their fiscal problems, the vulnerability of Italy’s far larger economy was the main reason the Europeans are trying to enlarge, or leverage, their bailout fund, the European Financial Stability Facility, which is considered less than half as large as needed to cover Italy’s debts. At least $200 billion of the fund is committed to Greece, Ireland and Portugal, and European leaders said they had agreed on two means of enlarging the fund.
One is to try to attract outside investors, who are likely to include China, Russia and some sovereign wealth funds. European leaders also agreed to use the fund to limit losses that bondholders might suffer in the future. By guaranteeing a portion of potential losses, the Europeans could leverage the size of the fund up to five times.

Wednesday, October 26, 2011

Germans Back Bailout Fund as Rifts Persist in Euro Talks


BRUSSELS — European leaders struggled Wednesday to reassure the world they were making progress in

overcoming the two-year-old euro zone debt crisis, with German lawmakers approving a proposal to strengthen an

 emergency bailout fund ahead of a summit meeting later in the day promoted as the moment for a comprehensive

 solution.

The vote to expand the bailout fund passed by a strong margin in Germany’s lower house. It followed Chancellor Angela Merkel’s plea to lawmakers to overcome their aversion to risk and put the might of Germany, Europe’s strongest economy, firmly behind efforts to get control of the crisis, which has unnerved financial markets far beyond Europe’s borders.
“The world is looking at Germany, whether we are strong enough to accept responsibility for the biggest crisis since World War II,” Mrs. Merkel said in an address to the Parliament in Berlin. “It would be irresponsible not to assume the risk.”
The administration of President Nicholas Sarkozy of France, who has also sought to project his intention for a decisive outcome at the summit in Brussels, said there was no other choice. “France is totally mobilized and engaged in the success of today’s summit,” Mr. Sarkozy’s budget minister, Valérie Pécresse, was quoted as saying by Bloomberg News in Cannes, France, where she was preparing for a Group of 20 summit there next month.
Nonetheless, fissures and significant disagreements among the Europeans were still unresolved ahead of the summit, particularly concerning Italy, the euro zone’s third-largest economy, where Prime Minister Silvio Berlusconi won only provisional support for economic reforms demanded by his European partners.
The overall euro deal under discussion is complicated, including a deep restructuring of Greek debt, an injection of new capital into European banks made vulnerable by exposure to sovereign debt and an expansion of a bailout fund so that it can ward off a financial panic in Italy as well as in the relatively small economies of Greece and Portugal.
On several previous occasions, European leaders have promised systemic changes to resolve the euro’s troubles, only to come up with a patchwork that fails to mollify the markets and just delays the day of reckoning. The outcome after the Wednesday summit could be another disappointment, an agreement on a general plan but without many specifics, and possibly without the massive “wall of money” to protect vulnerable Italy and Spain that the markets have demanded.
In addition, a meeting of European Union finance ministers, set for Wednesday before the summit meeting, was abruptly canceled on Tuesday, largely because of continuing negotiations with banks over a reduction in the face value of Greek debt — a so-called haircut — of up to 60 percent instead of the 21 percent previously agreed to but considered grossly inadequate by most economists.
The Europeans want the banks to agree to the losses voluntarily, to avoid a formal default that would incite unpredictable events. But the banks have negotiating capital, too, and are stretching out the talks. At the same time, officials in Brussels said, it was difficult to sign off on bank recapitalization — considered pretty much a done deal — until they were clear about the real value of the Greek debt in the banks’ portfolios.
The Europeans also want Mr. Berlusconi to live up to his promises to do more to reduce Italy’s huge accumulated debt — about $2.65 trillion euros, or 120 percent of gross domestic product, among the highest in the developed world — and to promote economic growth in a largely stagnant economy. While Italy’s annual deficit is modest, the debt overhang means that speculation is driving up the cost of financing that debt, which if unchecked, could tear holes in the budget.
Mrs. Merkel and Mr. Sarkozy upbraided Mr. Berlusconi on Sunday for not following through on his promises. But the sense of urgency about the fate of the euro that is building in other European capitals seems not to have arrived yet in Rome, where Mr. Berlusconi, hobbled in an internal power struggle, planned to bring only a “letter of intent” to make the kind of economic changes that his counterparts want.
The current crisis has placed Mr. Berlusconi between two irreconcilable forces: his fellow European Union leaders and Umberto Bossi, the leader of the powerful Northern League, who holds the fate of the Berlusconi government in his hands and is bound to Mr. Berlusconi like an inoperable Siamese twin.
For months, Mr. Bossi had refused to back a plan to raise the retirement age to 67, relenting only on Tuesday for everything except seniority pensions, still leaving the government at risk of collapse on the issue. That change had been demanded by the European Union in return for its support.
The European Central Bank demanded various changes as the price for buying up Italian debt at a reasonable, nonmarket price. But as soon as the bank stepped in, Mr. Berlusconi failed to propose a convincing package of measures, let alone put them into effect, infuriating his European counterparts and the bank.
Given reasonable progress made by Ireland, Portugal and Spain to fix their fiscal problems, the vulnerability of the far larger economy of Italy is the main reason the Europeans are trying to enlarge, or leverage, their bailout fund, the European Financial Stability Facility, which at around $600 billion is considered less than half as large as needed to cover Italy’s debts. At least $200 billion of this fund is already committed to Greece, Ireland and Portugal, and European leaders have not yet agreed on at least two options they are considering for enlarging the fund.
One idea is to try to attract outside investors, possibly with the help of the International Monetary Fund, but it is unclear what guarantees outsiders would demand.
A parallel idea, which could run simultaneously, is to use the fund to limit losses bondholders might suffer in the future.
However, Mr. Bossi said that he remained pessimistic about finding a way through the thickets to a comprehensive rescue plan for the euro.
“The government still risks falling on the question of pensions,” he said. “Now we have to see what the E.U. says.”
Mr. Bossi added that he refused to budge on a plan to raise the retirement age to 67 in the case of workers who had worked 40 years and contributed to the public pension plan.
On Tuesday evening, however, an 11th-hour accord seemed to be emerging under which the retirement age would be raised but people who have been paying for 40 years could retire.
Details of the proposed growth measures Mr. Berlusconi will present to Brussels have not been made public, but Italian news media reported that they would include privatizations, a liberalization of Italy’s professions and a simplifying of bureaucratic red tape.
But some critics dismissed the proposals as window dressing.
“They will send the letter, but there’s the risk that they will only be empty promises with no real ability to carry out reforms if they are still missing a strong agreement with the Northern League,” said Stefano Folli, a columnist for the economic daily Il Sole 24 Ore.
Italy’s fundamentals, other than its enormous debt, are relatively strong, but its fragile political leadership adds to market uncertainty, said Marco Fortis, an economist at Milan’s Cattolica University. “The only thing that’s missing is a government that can make decisions and gives signals to the markets that the country is not at risk,” he said.
On Tuesday, Italy’s president, Giorgio Napolitano, urged the government to act quickly and “make our commitment to lower the debt and boost economic growth more credible.”