Chinese Hackers Infiltrate New York Times Computers

A Cyberattack From China:
TimesCast: Chinese hackers infiltrated The New York Times’s computer systems, getting passwords for its reporters and others.

SAN FRANCISCO — For the last four months, Chinese hackers have persistently attacked The New York Times, infiltrating its computer systems and getting passwords for its reporters and other employees.

After surreptitiously tracking the intruders to study their movements and help erect better defenses to block them, The Times and computer security experts have expelled the attackers and kept them from breaking back in.

The timing of the attacks coincided with the reporting for a Times investigation, published online on Oct. 25, that found that the relatives of Wen Jiabao, China’s prime minister, had accumulated a fortune worth several billion dollars through business dealings.

Security experts hired by The Times to detect and block the computer attacks gathered digital evidence that Chinese hackers, using methods that some consultants have associated with the Chinese military in the past, breached The Times’s network. They broke into the e-mail accounts of its Shanghai bureau chief, David Barboza, who wrote the reports on Mr. Wen’s relatives, and Jim Yardley, The Times’s South Asia bureau chief in India, who previously worked as bureau chief in Beijing.

“Computer security experts found no evidence that sensitive e-mails or files from the reporting of our articles about the Wen family were accessed, downloaded or copied,” said Jill Abramson, executive editor of The Times.

The hackers tried to cloak the source of the attacks on The Times by first penetrating computers at United States universities and routing the attacks through them, said computer security experts at Mandiant, the company hired by The Times. This matches the subterfuge used in many other attacks that Mandiant has tracked to China.

The attackers first installed malware — malicious software — that enabled them to gain entry to any computer on The Times’s network. The malware was identified by computer security experts as a specific strain associated with computer attacks originating in China. More evidence of the source, experts said, is that the attacks started from the same university computers used by the Chinese military to attack United States military contractors in the past.

Security experts found evidence that the hackers stole the corporate passwords for every Times employee and used those to gain access to the personal computers of 53 employees, most of them outside The Times’s newsroom. Experts found no evidence that the intruders used the passwords to seek information that was not related to the reporting on the Wen family.

No customer data was stolen from The Times, security experts said.

Asked about evidence that indicated the hacking originated in China, and possibly with the military, China’s Ministry of National Defense said, “Chinese laws prohibit any action including hacking that damages Internet security.” It added that “to accuse the Chinese military of launching cyberattacks without solid proof is unprofessional and baseless.”

The attacks appear to be part of a broader computer espionage campaign against American news media companies that have reported on Chinese leaders and corporations.

Last year, Bloomberg News was targeted by Chinese hackers, and some employees’ computers were infected, according to a person with knowledge of the company’s internal investigation, after Bloomberg published an article on June 29 about the wealth accumulated by relatives of Xi Jinping, China’s vice president at the time. Mr. Xi became general secretary of the Communist Party in November and is expected to become president in March. Ty Trippet, a spokesman for Bloomberg, confirmed that hackers had made attempts but said that “no computer systems or computers were compromised.”

Signs of a Campaign

The mounting number of attacks that have been traced back to China suggest that hackers there are behind a far-reaching spying campaign aimed at an expanding set of targets including corporations, government agencies, activist groups and media organizations inside the United States. The intelligence-gathering campaign, foreign policy experts and computer security researchers say, is as much about trying to control China’s public image, domestically and abroad, as it is about stealing trade secrets.

This article has been revised to reflect the following correction:

Correction: January 31, 2013

An earlier version of this article misstated the timing of a cyberattack that caused damage at Iran’s main nuclear enrichment plant. Evidence suggests that the United States and Israel released a computer worm around 2008, not 2012.

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Two More Pakistani Polio Workers Killed

ISLAMABAD, Pakistan — A roadside bomb killed two polio workers in northwestern Pakistan on Thursday, in the third such attack this week on workers struggling to immunize children against the crippling disease.

The explosion struck as the two workers, with a United Nations-backed campaign, were traveling by motorcycle near Parachinar in the Kurram District, near the border with Afghanistan.

It was the first such attack on health workers in that area, said a senior local official speaking by phone on the condition of anonymity, offering further evidence that a Taliban-led campaign of violence and intimidation against polio workers is spreading across northwestern Pakistan.

Despite an internationally supported campaign to halt polio in Pakistan, infection rates have soared across the country in the past year, coinciding with a wave of militant attacks against the poorly protected workers at the heart of the effort. Some militants accuse polio workers of using vaccination as a cover to spy on behalf of the United States — a claim that has been fueled by the revelation that the C.I.A. used a vaccination drive as cover for the effort to find Osama bin Laden in Abbottabad in early 2011.

The violence has badly affected vaccination efforts, which involve tens of thousands of health workers who repeatedly administer cheap oral vaccines to children under 5.

Nine polio workers were killed in a string of attacks across the country in December. On Tuesday, suspected militants fatally shot a police officer who had been escorting female polio workers in the Swabi District, 50 miles east of Peshawar, the capital of Khyber-Pakhtunkhwa Province.

The shooting prompted officials to suspend the campaign in Swabi, but they pressed ahead in other parts of Khyber-Pakhtunkhwa and the adjoining tribal belt. Another polio worker was wounded by a man with an ax in an unrelated episode on Tuesday.

It was unclear, however, whether the latest killings were directly related to the polio campaign. The Kurram District has a history of violence between Shiite and Sunni Muslims, and the local official said it was unclear whether the explosion targeted the two workers for their links to the polio campaign or for their religious affiliation.

Violence against polio workers is not confined to the turbulent northwest. United Nations workers in Karachi, the port city on the Arabian Sea, have also suffered attacks that have set back efforts to wipe the disease from the city, Pakistan’s most populous.

Pakistan is one of three countries, along with Nigeria and Afghanistan, where polio remains endemic.

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Nintendo Warns of Weak Wii U Sales

TOKYO — Nintendo said Wednesday that it expected to sell far fewer units of its Wii U game console than it had anticipated, reducing the sales outlook for its flagship device just two months after its release.

Nintendo has a lot riding on the Wii U, the successor to the Wii, which revolutionized the gaming industry six years ago with a casual approach that brought video games to new audiences. The company is banking on the Wii U to revive its fortunes after the disappointing introduction in 2011 of its hand-held gaming machine, the 3DS, which prompted the company to sharply reduce its price to stoke demand.

Nintendo executives had also said the Wii U would prove that dedicated game systems still had a future in a world now teeming with less expensive, more convenient mobile games played on smartphones and tablets.

The latest numbers from Nintendo are not promising. The company said that it had sold 3.06 million Wii U games and that it expected sales to hit just 4 million units through March, almost 30 percent less than a previous projection of 5.5 million.

Nintendo also downgraded its 3DS sales expectations, saying that it would sell 15 million units through March instead of its previous forecast of 17.5 million units, and that it expected to sell fewer games.

“Nintendo needs a change in strategy,” said Michael Pachter, a gaming research analyst for Wedbush Securities, a Los Angeles-based investment firm. He said Nintendo had botched the Wii U design — a touch screen used together with a television — and the device was unimpressive for core gamers and baffling for casual ones.

Nintendo executives needed to restructure the company so it would continue to be profitable even with lower hardware sales, Mr. Pachter said. He also said the company should considering developing smartphone games, a move Nintendo has resisted.

“Smartphones and tablets are nibbling away at the edges of the market for games,” he said. “If they can’t beat it, they should consider making money off it. Why can’t Mario be on the smartphone?”

Still, Nintendo has returned to profitability for the first nine months of its business year, largely thanks to the weakening of the yen. That lowers the costs of Japanese exporters and bolsters their earnings.

Nintendo’s profit for the April-to-December period came to ¥14.55 billion, or $160 million, compared with a loss of ¥48.35 billion a year earlier, the company said in an earnings announcement that painted a mixed picture of its prospects.

The company raised its profit forecast for the business year through March to ¥14 billion from ¥6 billion. Nintendo does not break out quarterly results.

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The Consumer: The Drug-Dose Gender Gap

Most sleeping pills are designed to knock you out for eight hours. When the Food and Drug Administration was evaluating a new short-acting pill for people to take when they wake up in the middle of the night, agency scientists wanted to know how much of the drug would still be in users’ systems come morning.

Blood tests uncovered a gender gap: Men metabolized the drug, Intermezzo, faster than women. Ultimately the F.D.A. approved a 3.5 milligram pill for men, and a 1.75 milligram pill for women.

The active ingredient in Intermezzo, zolpidem, is used in many other sleeping aids, including Ambien. But it wasn’t until earlier this month that the F.D.A. reduced doses of Ambien for women by half.

Sleeping pills are hardly the only medications that may have unexpected, even dangerous, effects in women. Studies have shown that women respond differently than men to many drugs, from aspirin to anesthesia. Researchers are only beginning to understand the scope of the issue, but many believe that as a result, women experience a disproportionate share of adverse, often more severe, side effects.

“This is not just about Ambien — that’s just the tip of the iceberg,” said Dr. Janine Clayton, director for the Office of Research on Women’s Health at the National Institutes of Health. “There are a lot of sex differences for a lot of drugs, some of which are well known and some that are not well recognized.”

Until 1993, women of childbearing age were routinely excluded from trials of new drugs. When the F.D.A. lifted the ban that year, agency researchers noted that because landmark studies on aspirin in heart disease and stroke had not included women, the scientific community was left “with doubts about whether aspirin was, in fact, effective in women for these indications.”

Because so many drugs were tested mostly or exclusively in men, scientists may know little of their effects on women until they reach the market. A Government Accountability Office study found that 8 of 10 drugs removed from the market from 1997 through 2000 posed greater health risks to women.

For example, Seldane, an antihistamine, and the gastrointestinal drug Propulsid both triggered a potentially fatal heart arrhythmia more often in women than in men. Many drugs still on the market cause this arrhythmia more often in women, including antibiotics, antipsychotics, anti-malarial drugs and cholesterol-lowering drugs, Dr. Clayton said. Women also tend to use more medications than men.

The sex differences cut both ways. Some drugs, like the high blood pressure drug Verapamil and the antibiotic erythromycin, appear to be more effective in women. On the other hand, women tend to wake up from anesthesia faster than men and are more likely to experience side effects from anesthetic drugs, according to the Society for Women’s Health Research.

Women also react differently to alcohol, tobacco and cocaine, studies have found.

It’s not just because women tend to be smaller than men. Women metabolize drugs differently because they have a higher percentage of body fat and experience hormonal fluctuations and the monthly menstrual cycle. “Some drugs are more water-based and like to hang out in the blood, and some like to hang out in the fat tissue,” said Wesley Lindsey, assistant professor of pharmacy practice at Auburn University, who is a co-author of a paper on sex-based differences in drug activity.

“If the drug is lipophilic” — attracted to fat cells — “it will move into those tissues and hang around for longer,” Dr. Lindsey added. “The body won’t clear it as quickly, and you’ll see effects longer.”

There are also sex differences in liver metabolism, kidney function and certain gastric enzymes. Oral contraceptives, menopause and post-menopausal hormone treatment further complicate the picture. Some studies suggest, for example, that when estrogen levels are low, women may need higher doses of drugs called angiotensin receptor blockers to lower blood pressure, because they have higher levels of proteins that cause the blood vessels to constrict, said Kathryn Sandberg, director of the Center for the Study of Sex Differences in Health, Aging and Disease at Georgetown.

Many researchers say data on these sex differences must be gathered at the very beginning of a drug’s development — even before trials on human subjects begin.

“The path to a new drug starts with the basic science — you study an animal model of the disease, and that’s where you discover a drug target,” Dr. Sandberg said. “But 90 percent of researchers are still studying male animal models of the disease.”

There have been improvements. In an interview, Dr. Robert Temple, with the Center for Drug Evaluation and Research at the F.D.A., said the agency’s new guidelines in 1993 called for studies of sex differences at the earliest stages of drug development, as well as for analysis of clinical trial data by sex.

He said early research on an irritable bowel syndrome drug, alosetron (Lotronex), suggested it would not be effective in men. As a result, only women were included in clinical trials, and it was approved only for women. (Its use is restricted now because of serious side effects.)

But some scientists say drug metabolism studies with only 10 or 15 subjects are too small to pick up sex differences. Even though more women participate in clinical trials than in the past, they are still underrepresented in trials for heart and kidney disease, according to one recent analysis, and even in cancer trials.

“The big problem is we’re not quite sure how much difference this makes,” Dr. Lindsey said. “We just don’t have a good handle on it.”

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Readers may submit comments or questions for The Consumer by e-mail to consumer@nytimes.com.

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The Consumer: The Drug-Dose Gender Gap

Most sleeping pills are designed to knock you out for eight hours. When the Food and Drug Administration was evaluating a new short-acting pill for people to take when they wake up in the middle of the night, agency scientists wanted to know how much of the drug would still be in users’ systems come morning.

Blood tests uncovered a gender gap: Men metabolized the drug, Intermezzo, faster than women. Ultimately the F.D.A. approved a 3.5 milligram pill for men, and a 1.75 milligram pill for women.

The active ingredient in Intermezzo, zolpidem, is used in many other sleeping aids, including Ambien. But it wasn’t until earlier this month that the F.D.A. reduced doses of Ambien for women by half.

Sleeping pills are hardly the only medications that may have unexpected, even dangerous, effects in women. Studies have shown that women respond differently than men to many drugs, from aspirin to anesthesia. Researchers are only beginning to understand the scope of the issue, but many believe that as a result, women experience a disproportionate share of adverse, often more severe, side effects.

“This is not just about Ambien — that’s just the tip of the iceberg,” said Dr. Janine Clayton, director for the Office of Research on Women’s Health at the National Institutes of Health. “There are a lot of sex differences for a lot of drugs, some of which are well known and some that are not well recognized.”

Until 1993, women of childbearing age were routinely excluded from trials of new drugs. When the F.D.A. lifted the ban that year, agency researchers noted that because landmark studies on aspirin in heart disease and stroke had not included women, the scientific community was left “with doubts about whether aspirin was, in fact, effective in women for these indications.”

Because so many drugs were tested mostly or exclusively in men, scientists may know little of their effects on women until they reach the market. A Government Accountability Office study found that 8 of 10 drugs removed from the market from 1997 through 2000 posed greater health risks to women.

For example, Seldane, an antihistamine, and the gastrointestinal drug Propulsid both triggered a potentially fatal heart arrhythmia more often in women than in men. Many drugs still on the market cause this arrhythmia more often in women, including antibiotics, antipsychotics, anti-malarial drugs and cholesterol-lowering drugs, Dr. Clayton said. Women also tend to use more medications than men.

The sex differences cut both ways. Some drugs, like the high blood pressure drug Verapamil and the antibiotic erythromycin, appear to be more effective in women. On the other hand, women tend to wake up from anesthesia faster than men and are more likely to experience side effects from anesthetic drugs, according to the Society for Women’s Health Research.

Women also react differently to alcohol, tobacco and cocaine, studies have found.

It’s not just because women tend to be smaller than men. Women metabolize drugs differently because they have a higher percentage of body fat and experience hormonal fluctuations and the monthly menstrual cycle. “Some drugs are more water-based and like to hang out in the blood, and some like to hang out in the fat tissue,” said Wesley Lindsey, assistant professor of pharmacy practice at Auburn University, who is a co-author of a paper on sex-based differences in drug activity.

“If the drug is lipophilic” — attracted to fat cells — “it will move into those tissues and hang around for longer,” Dr. Lindsey added. “The body won’t clear it as quickly, and you’ll see effects longer.”

There are also sex differences in liver metabolism, kidney function and certain gastric enzymes. Oral contraceptives, menopause and post-menopausal hormone treatment further complicate the picture. Some studies suggest, for example, that when estrogen levels are low, women may need higher doses of drugs called angiotensin receptor blockers to lower blood pressure, because they have higher levels of proteins that cause the blood vessels to constrict, said Kathryn Sandberg, director of the Center for the Study of Sex Differences in Health, Aging and Disease at Georgetown.

Many researchers say data on these sex differences must be gathered at the very beginning of a drug’s development — even before trials on human subjects begin.

“The path to a new drug starts with the basic science — you study an animal model of the disease, and that’s where you discover a drug target,” Dr. Sandberg said. “But 90 percent of researchers are still studying male animal models of the disease.”

There have been improvements. In an interview, Dr. Robert Temple, with the Center for Drug Evaluation and Research at the F.D.A., said the agency’s new guidelines in 1993 called for studies of sex differences at the earliest stages of drug development, as well as for analysis of clinical trial data by sex.

He said early research on an irritable bowel syndrome drug, alosetron (Lotronex), suggested it would not be effective in men. As a result, only women were included in clinical trials, and it was approved only for women. (Its use is restricted now because of serious side effects.)

But some scientists say drug metabolism studies with only 10 or 15 subjects are too small to pick up sex differences. Even though more women participate in clinical trials than in the past, they are still underrepresented in trials for heart and kidney disease, according to one recent analysis, and even in cancer trials.

“The big problem is we’re not quite sure how much difference this makes,” Dr. Lindsey said. “We just don’t have a good handle on it.”

---

Readers may submit comments or questions for The Consumer by e-mail to consumer@nytimes.com.

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Streaming Shakes Up Music Industry’s Model for Royalties

Jim Wilson/The New York Times

Zoe Keating published on her blog the details of what she made in royalties from the Web streaming of her music. It wasn’t a lot.

Like plenty of music fans, Sam Broe jumped at the chance to join Spotify two summers ago, and he hasn’t looked back.

Spotify, which began streaming music in Sweden in 2008, lets users choose from millions of songs over the Internet free or by subscription, and is increasingly seen as representing the future of music consumption. Mr. Broe, a 26-year-old from Brooklyn, said that having all that music at his fingertips helped him trim his monthly music budget from $30 to the $10 fee he pays for Spotify’s premium service.

“The only time I download anything on iTunes is in the rare case that I can’t find it on Spotify,” he said.

A decade after Apple revolutionized the music world with its iTunes store, the music industry is undergoing another, even more radical, digital transformation as listeners begin to move from CDs and downloads to streaming services like Spotify, Pandora and YouTube.

As purveyors of legally licensed music, they have been largely welcomed by an industry still buffeted by piracy. But as the companies behind these digital services swell into multibillion-dollar enterprises, the relative trickle of money that has made its way to artists is causing anxiety at every level of the business.

Late last year, Zoe Keating, an independent musician from Northern California, provided an unusually detailed case in point. In voluminous spreadsheets posted to her Tumblr blog, she revealed the royalties she gets from various services, down to the ten-thousandth of a cent.

Even for an under-the-radar artist like Ms. Keating, who describes her style as “avant cello,” the numbers painted a stark picture of what it is like to be a working musician these days. After her songs had been played more than 1.5 million times on Pandora over six months, she earned $1,652.74. On Spotify, 131,000 plays last year netted just $547.71, or an average of 0.42 cent a play.

“In certain types of music, like classical or jazz, we are condemning them to poverty if this is going to be the only way people consume music,” Ms. Keating said.

The way streaming services pay royalties represents a major shift in the economic gears that have been underlying the industry for decades.

From 78 r.p.m. records to the age of iTunes, artists’ record royalties have been counted as a percentage of a sale price. On a 99-cent download, a typical artist may earn 7 to 10 cents after deductions for the retailer, the record company and the songwriter, music executives say. One industry joke calls the flow of these royalties a “river of nickels.”

In the new economics of streaming music, however, the river of nickels looks more like a torrent of micropennies.

Spotify, Pandora and others like them pay fractions of a cent to record companies and publishers each time a song is played, some portion of which goes to performers and songwriters as royalties. Unlike the royalties from a sale, these payments accrue every time a listener clicks on a song, year after year.

The question dogging the music industry is whether these micropayments can add up to anything substantial.

“No artist will be able to survive to be professionals except those who have a significant live business, and that’s very few,” said Hartwig Masuch, chief executive of BMG Rights Management.

Spotify has 20 million users in 17 countries, with five million of them paying $5 to $10 a month to eliminate the ads seen by freeloaders.

In a recent interview, Sean Parker, a board member, said he believed Spotify would eventually attract enough subscribers to help return the music industry to its former glory — that is, to the days before Mr. Parker’s first major enterprise, Napster, came along.

“I believe that Spotify is the company that will make it succeed,” said Mr. Parker, who is also a former president of Facebook. “It’s the right model if you want to build the pot of money back up to where it was in the late ’90s, when the industry was at its peak. This is the only model that’s going to get you there.”

This article has been revised to reflect the following correction:

Correction: January 29, 2013

An earlier version of this article gave an incorrect estimate of the potential earnings of a song on Spotify’s paid tier. According to a number of music executives, Spotify generally pays 0.5 to 0.7 cent a stream for the paid tier, which results in $5,000 to $7,000 per million plays, not $5,000 to $8,000.

This article has been revised to reflect the following correction:

Correction: January 30, 2013

An earlier version of this article described the $7 billion American recording industry incorrectly. That figure refers to its annual revenue in 2011 — not its “bottom line,” a term that refers to net profit, not sales.

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Somalia Moves to Prosecute Woman Who Accused Soldiers of Rape

NAIROBI, Kenya — The Somali government, in a move that has outraged human rights groups, has charged a woman who said she was gang-raped by soldiers with making a false accusation and having “insulted and lowered the dignity of a National Institution,” crimes that could mean many years in prison.

The woman’s husband has also been jailed — essentially for backing up his wife’s allegations — and so has a Somali journalist who interviewed the woman, even though he never published any information.

The Somali government said that the woman was lying for financial gain and that she later admitted that her story was “bogus.”

But Somali advocacy groups criticized the government’s hard line on this case, which they said would prompt many rape victims to remain silent despite years of trying to empower them to come forward.

“Women are now asking me, ‘Who’s going to protect us?’ ” said Fartuun Adan, who runs a shelter for abused women in Somalia. “They’re saying, ‘What are we supposed to do?’ ”

There is no question that rape by armed men is a serious problem in Somalia. Though Somalia has become significantly more stable, there are still thousands of young women living in squalid displaced-persons camps and loose bands of soldiers and other gunmen roaming around with heavy weapons, essentially doing as they please.

This week, a United Nations official reported more than 1,100 cases of sexual violence last year in Somalia, a figure that the United Nations considers alarming but an underestimation.

When Somalia’s new president, Hassan Sheikh Mohamud, took office last year, he announced that his government was committed to cracking down on rapists and protecting vulnerable women.

But in the past few weeks, Somali government officials have aggressively pursued the woman who made the recent rape allegation, saying that her story was “simply baseless” and that a medical examiner confirmed she had not been raped.

Several people in Mogadishu, Somalia’s capital, who have met the woman said she was forced by the police to recant. The woman, whose identity has been released by the Somali government but is being withheld by The New York Times, is 27 years old and has been living in a displaced-persons camp in Mogadishu with several young children. She said she was raped last August by five members of the government’s security services who forced her at gunpoint into an abandoned high school and then took turns assaulting her. She was on her way to get food for the children at the time, she said.

Her prosecution appears to be linked to an article by Al Jazeera published on Jan. 6 that detailed rape allegations against government soldiers and apparently embarrassed the new government, which recently has been making the rounds with donor nations, asking for millions to help rebuild Somalia.

But Al Jazeera did not base its article on the woman’s allegations. After the article appeared, police officials found out that the woman had accused government soldiers of rape and then they arrested Abdiaziz Abdinur Ibrahim, a freelance journalist who had interviewed her, even though he did not work with Al Jazeera or publish any of his information.

Mr. Ibrahim, 25, has been in jail for more than two weeks, along with the woman’s husband. The three appeared in court on Tuesday, along with two others connected to the case, and more hearings are expected next week.

In the recent past, the worst culprit for rape in Somalia was the Shabab militant group, which presented itself as a morally righteous rebel force and the defender of Islam, even though it had been seizing women and girls as spoils of war, gang-raping and abusing them as part of its reign of terror. Many victims and witnesses said that Shabab militants forced families to hand over girls for arranged marriages that often lasted no more than a few weeks and were essentially sexual slavery, a cheap way to bolster their ranks’ flagging morale. One teenage girl who refused to be locked into such a marriage was buried up to her neck in sand and then had her head bashed in, rock by rock.

But as the Shabab have been pushed out by African Union peacekeepers from most of the areas they used to control, government troops are now a bigger problem in terms of preying upon defenseless civilians, human rights advocates say.

Lisa Shannon, an American who co-founded Sister Somalia, an organization that helps rape victims in Somalia, recently visited Mogadishu, where she heard many allegations of government soldiers’ gang-raping women.

She said the attacks were “happening in camps, happening around town, it has not slowed down at all.”

She called the case against the woman who made the recent rape allegation a “huge red flag.”

“It’s taken a long time to get women in Somalia to speak openly about this,” Ms. Shannon said on Wednesday. “Now they are all terrified.”

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DealBook: R.B.S. Stock Drops Amid Concerns of Potential Guilty Plea in Libor Case

Shares of the Royal Bank of Scotland stumbled on Tuesday after it emerged that federal authorities are pursuing a guilty plea against an Asian subsidiary at the center of an interest rate manipulation scandal.

Following a template developed in last year’s rare-rigging case against UBS, the Justice Department is pushing for the criminal action against the Royal Bank of Scotland, along with fines and penalties, according to two people with knowledge of the matter. The case could come as soon as next week.

The R.B.S. settlement is likely to include more than $650 million in fines levied by the American and British authorities, according to two other people with direct knowledge of the matter. At that level, the penalties would be the second largest settlement in the rate manipulation case after a $1.5 billion agreement with the Swiss bank UBS last month. Barclays paid $450 million last summer.

The Justice Department’s criminal division, which is pushing for a guilty plea with the Asian subsidiary of the Royal Bank of Scotland, could also strike a nonprosecution agreement with the parent company.

The threat of charges against the subsidiary weighed on the stock. After The Wall Street Journal reported on the potential guilty plea, the bank’s stock dropped 6 percent by the close of trading in London on Tuesday.

The settlement terms are not yet final. In particular, the Royal Bank of Scotland — which is 82 percent owned by British taxpayers after receiving a multibillion-dollar government bailout during the financial crisis — is resisting the guilty plea for the Asian subsidiary, fearful of the potential fallout. The bank, however, lacks leverage with the Justice Department, which can indict the subsidiary if it resists the guilty plea. An indictment would deliver a harsher blow to the bank and potentially set up a protracted legal battle.

“Discussions with various authorities” in the case “are ongoing,” said an RBS spokesman, adding that “we continue to cooperate fully with their investigations.”

The bank, which is based in Edinburgh, is also expected to cut its bonus pool by up to one third, or around $240 million, as it claws back funds to pay for the pending Libor settlement, according to a person with direct knowledge of the matter. A decision on bonuses has not been made, and the final figure will be released on Feb. 28 when the bank reports its next earnings.

“There is a legitimate concern that British taxpayers, who already have bailed out the bank, will be asked to pay for past mistakes at R.B.S.,” said Pat McFadden, a British politician who is a member of the British parliament’s treasury select committee that oversees the country’s finance industry. “Steps should be taken to minimize the exposure for taxpayers.”

Several senior RBS executives, including John Hourican, who runs the firm’s investment banking unit where the alleged illegal activity took place, are expected to step down amid the Libor scandal, though they have not been directly implicated in the matter, according to another person with direct knowledge of the matter.

The negotiations between R.B.S. and the regulators reflect the Justice Department’s aggressive new posture, as they look to hold banks responsible for wrongdoing in the rate rigging case. The wave of action has centered on the London interbank offered rate, or Libor, and other key international benchmark rates, which are central to determining the borrowing costs for trillions of dollars of financial products like corporate loans and credit cards. Banks are suspected of reporting false rates to squeeze out an extra profit and, in some cases, to deflect concerns about their financial health during the financial crisis.

Last month, the Justice Department secured a guilty plea against the Japanese subsidiary of UBS in a rate manipulation case. UBS also paid $1.5 billion in fines to the Justice Department, the Commodity Futures Trading Commission, the Financial Services Authority, the British regulator and Swiss authorities.

The deal with UBS sent a strong signal that authorities wanted to hold banks responsible for their wrongdoing. But it also limited the potential damage to the Swiss bank. By securing a guilty plea against a subsidiary, it sheltered the parent company from losing its charter to operate or other major repercussions.

“We are holding those who did wrong accountable,” Lanny A. Breuer, the head of the Justice Department’s criminal division, said at a news conference in December on the UBS case. “We cannot, and we will not, tolerate misconduct on Wall Street.”

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Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

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Google Maps’ New Target: Secretive North Korea

Google/Agence France-Presse — Getty Images

A still image from Google shows a before and after map of North Korea's capital, Pyongyang.

SEOUL, South Korea — Google threw open its Google Maps program for North Korea to “citizen cartographers” around the world on Tuesday, urging them to contribute whatever knowledge they have about one of the world’s most secretive countries.

The new map it published at the same time, built through crowdsourcing, provides people who normally visit the site for driving directions with a look, to the street level in some cases, of places they have previously read about only in articles about the North’s nuclear program. The map of Pyongyang, the capital, shows everything from landmarks — the tower that celebrates the country’s self-reliance doctrine of Juche and the main square where military parades are held — to hotels, schools and hospitals.

Users can zoom in for photos and even to post comments, updating a map that had previously been mostly blank. The site also marks what it says are the locations of some of the police state’s notorious gulags.

The popular mapping program is focusing new attention on the North at a time when the country is locked in a tense standoff with the United States and its allies over tightened sanctions and has promised to conduct a third nuclear test.

Google’s initiative came three weeks after its executive chairman, Eric E. Schmidt, visited Pyongyang in a highly publicized yet contentious trip organized by Bill Richardson, the former governor of New Mexico. Mr. Schmidt, a proponent of Internet connectivity who likes to describe the Web as the enemy of despots, said he urged North Korean officials he met in Pyongyang to let more North Koreans use the Internet.

The map is still not very detailed in much of the country, though it does include four enormous prison camps, highlighting them in gray shading. Google Maps is unlikely to provide important new information to policy makers and others who already have satellite maps, and Google Earth views, to depend on. But the crowdsourcing project provides a tool for Internet users anywhere in the world to help identify at least some features in the isolated country that the regime in Pyongyang doesn’t want the world to know. (The regime cherishes secrecy to such an extent that its propagandists liked to boast: “When our enemies try to peek into our republic, they only see a fog.”)

At the moment, the map released Tuesday is far less detailed than North Korean maps available in South Korean bookstores, or on a digital atlas using Google Earth published on the Web site 38 North.

In recent years, Internet bloggers and activists have relied on Google Earth, and defectors from North Korea, to locate several places believed to be prison camps. In each of the gulags, international human rights groups have said, thousands of political prisoners have been forced into hard labor for crimes like criticizing the ruling Kim dynasty in Pyongyang.

“So far, Google’s efforts are largely symbolic,” said Kim Yong-hyun, a North Korea specialist at Dongguk University in Seoul. “It won’t be easy to make a Google map of North Korea of the kind you see of other countries.”

Google Maps’ basic premise — Internet users filling in information about their neighborhood to help update and perfect a map — is severely limited for North Korea. The country is cut off from the Internet, except for its tiny elite, and even that group’s access is controlled.

Google can try to enlist the more than 24,000 North Korean defectors who live in South Korea, one of the world’s most wired countries. But most of them come from the north of the country and, given the tight control on people’s movements, their knowledge of other parts of North Korea before their defection is limited.

There was no immediate North Korean reaction to Google’s announcement on Tuesday.

Google said that although its map of North Korea is incomplete, it could be important to some South Koreans who originated from the North and who could now identify their old home villages.

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