Was Petraeus affair linked to lax Libya response?

CIA Director David Petraeus abruptly resigned Friday, citing an extramarital affair and the need to sort out the “personal and professional issues” involved.

The former commander of forces in Iraq and Afghanistan had built a stellar and nearly unassailable reputation – but mounting criticism of the Central Intelligence Agency’s response to the Benghazi, Libya, terrorist attack in September was beginning to tarnish that reputation.

Word of Mr. Petraeus’s resignation sent ripples of stunned surprise through both the intelligence and military communities, raising questions that revolved around how long the affair had been going on and how an officer known for his rigorous self-discipline – and attention to his reputation within the media — could have made such a lapse in judgment.

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In a letter of resignation accepted by the White House, Petraeus said he had been married 37 years but had exercised “very poor judgment” in choosing to enter into an extramarital affair.

Petraeus, who was widely celebrated as a military commander and even occasionally mentioned as a potential presidential candidate, was sworn in as head of the CIA in September 2011 – and had kept a low profile since. Now speculation is sure to proliferate over whether that low profile resulted from Petraeus focusing on America’s intelligence gathering or on personal matters.

In particular, members of Congress and other officials demanding answers about the Benghazi attack on the US consulate that resulted in the deaths of four Americans – including the US ambassador to Libya, Christopher Stephens, and two CIA agents – will want to know if there was any link between Petraeus’s extramarital activities and what has been increasingly criticized as the CIA’s weak performance on the night of the Benghazi attack.

More broadly, the reason for Petraeus’s departure will raise questions about any compromising of US covert operations and intelligence. The potential for blackmail of intelligence officers is always a concern about the spy corps, but the involvement of the nation’s top spy in an extramarital affair takes the concern to a new level.

The Federal Bureau of Investigation has been probing Petraeus and the potential security risks posed by his affair, CNN reported late Friday afternoon.

In the weeks since the Benghazi attack, officials have leaked information, including how Petraeus kept information on the CIA’s role in Benghazi so private that even Secretary of State Hillary Rodham Clinton was left to call Petraeus as the attack unfolded to try to get intelligence information from him.

Last week, CIA officials revealed that in fact, the intelligence agency’s operations in Benghazi dwarfed diplomatic operations at the consulate and that the CIA maintained what was described as an “annex,” about a mile from the diplomatic mission.

State Department officials have said there was an informal understanding that the annex and its agents would come to the assistance of the consulate (which had private contractors providing security) if a need arose. CIA officials insist their agents responded to the consulate’s distress calls within a half-hour.

In a statement released Friday afternoon, President Obama praised Petraeus for his “extraordinary service” to the country, adding, “By any measure, through his lifetime of service, David Petraeus has made our country safer and stronger.”

In a statement, Sen. John McCain (R) of Arizona highlighted Petraeus’s role in Iraq, saying that his “inspirational leadership and his genius were directly responsible – after years of failure – for the success of the surge in Iraq.”

But Petraeus’s success in Iraq and Afghanistan was a result to a certain extent of his focus on a counterinsurgency strategy that involved large numbers of troops fighting the enemy by incorporating nation-building into the battle. When Mr. Obama named Petraeus to head the CIA, it was widely interpreted as the president’s signal that he intended to wind down America’s wars and shift from a counterinsurgency strategy to counterterrorism.

Obama did not cite Petraeus’s reason for resigning but did say, “Going forward, my thoughts and prayers are with Dave and Holly Petraeus, who has done so much to help military families through her own work. I wish them the very best at this difficult time.”

Mrs. Petraeus is the assistant director of the Consumer Financial Protection Bureau, where she supports veterans and troops facing difficulties as a result of the financial crisis.

Obama initially tried to convince Petraeus not to resign, according to some souces. “I am told that President Obama tried to talk Petraeus out of resigning, but Petraeus took the samurai route and insisted that he had done a dishonorable thing and now had to try to balance it by doing the honorable thing and stepping down as CIA director,” Tom Ricks reports in his blog “The Best Defense.”

Such a move is in keeping with the military culture in which Petraeus rose to the rank of four-star general.

Under the Uniform Code of Military Justice, adultery is a punishable offense for soldiers if the conduct is shown to be detrimental “to good order and discipline in the armed forces or was of a nature to bring discredit upon the armed forces.”

Obama said that Michael Morell, deputy director of the CIA, would take over as acting director. Mr. Morell served briefly as acting director after Leon Panetta left the agency last year to become Defense secretary.

Petraeus was set to testify Thursday at a closed-door session of the Senate Intelligence Committee on the Benghazi attack, but it was unclear if his resignation would alter that schedule.

Sen. Dianne Feinstein (D) of California, the Intelligence Committee chair, told NBC News that Petraeus’s personal mistake should not have led to his resignation.

“I would have stood up for him,” she said. “I wanted him to continue. He was good, he loved the work, and he had a command of intelligence issues second to none.”

Obama, after winning reelection Tuesday, was already expected to make some changes in his national security team for a second term, but early speculation had been that Petraeus would stay on at the CIA. Now the job of spy chief will be added to the new-team mix.

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China opens power transfer by keeping it off-stage

BEIJING (AP) — China's ruling communists opened a pivotal congress to initiate a power handover by giving a nod to their revolutionary past and broadly promising cleaner government while keeping off-stage the main event — the bargaining over seats in the new leadership.

All the main players were arrayed on the stage in the Great Hall of the People: President Hu Jintao, his successor Xi Jinping and a collection of retired party insiders. A golden hammer and sickle, the Communist Party's symbol, hung on the back wall. Yet in a nearly two-hour opening ceremony Thursday, scant mention was made of the transition or that in a week Hu will step down as party chief in favor of Xi in what would be only the second orderly transfer of power in 63 years of communist rule.

The congress is writ small the state of Chinese politics today. It's a largely ceremonial gathering of 2,200-plus delegates who meet while the real deal-making is done behind-the-scenes by the true power-holders.

The centerpiece event of the opening of the weeklong congress — a 90-minute speech by Hu — served politics, allowing him to define his legacy after a decade in office, while marshaling his clout to install his allies in the collective leadership that Xi will head.

"An important thing for him is to make sure that there's no critical, no negative summary judgment of the past 10 years," said Ding Xueliang, a Chinese politics expert at Hong Kong University of Science and Technology. Still, Ding said, "90 percent of the effort is on putting your people in place."

The party's public silence on a leadership transition that everyone knows is taking place and that politically minded Chinese have been discussing has deepened a palpable sense of public unease. Many Chinese feel the country is at a turning point, in need of new ideas to handle a slowing economy, growing piles of debt and rising public demands for more accountable, transparent government, if not democracy.

In signs of the public disquiet, at least five ethnic Tibetans in western China set themselves on fire Wednesday or Thursday in protests against Chinese rule of Tibetan areas, according to overseas Tibet support groups and the Tibetan government-in-exile in India.

At dawn in Tiananmen Square, next to the congress venue, a woman in her 30s threw pieces of torn paper into the air and shouted "bandits and robbers!" — a curse often leveled at corrupt local officials. She was taken away by the security forces, which have smothered all of Beijing for the congress.

In his speech, Hu cited many of the challenges China faces — a rich-poor gap, environmentally ruinous growth and imbalanced development between prosperous cities and a struggling countryside. Yet he offered little fresh thinking to address them and said restoring a relatively high growth would be the best way to deal with public expectations.

Only on tackling rampant corruption did Hu sound the alarm. He called on party members to be ethical and rein in their family members whose often showy displays of wealth have stoked public anger.

"Nobody is above the law," Hu said to the applause of the 2,309 delegates and invited guests, with Xi and other party notables on the dais behind him. He later said, "If we fail to handle this issue well, it could prove fatal to the party, and even cause the collapse of the party and the fall of the state."

Always an occasion for divisive bargaining, the leadership transition has been made more fraught by scandals that have fueled already high public cynicism that Chinese leaders are more concerned with power and wealth than government.

In recent months, one top leader, Bo Xilai, has been purged after his wife murdered a British businessman; a top aide to Hu was sidelined after his son crashed a Ferrari he shouldn't have been able to afford and foreign media reported that relatives of Xi and outgoing Premier Wen Jiabao had traded on their proximity to power to amass vast fortunes.

Public image aside, the scandals have especially weakened Hu, on whose watch they occurred, in the power-broking over the next leadership. In recent decades, the leadership line-ups have sought to balance different factions within the party. Who has prevailed won't be apparent until next Thursday, a day after the congress, when the members of the Politburo Standing Committee appear before the media.

On stage with Hu appeared one of his nemeses, his predecessor Jiang Zemin, who has supported Xi and is angling to fill many of the seats in the leadership with his allies. Nearby, dressed in a Mao jacket, sat 95-year-old Song Ping, a veteran of the revolution and party insider who was Hu's earliest political mentor.

Hu drew the line on political reform, a catchphrase for everything from greater transparency to democracy, even though retired party members, media commentators and government think tanks have called it an urgent need.

Hu's signature policy — a grab-bag of ideas meant to promote more balanced growth and stronger party rule that goes under the clunky phrase "the Scientific Outlook on Development" — has already been adopted in the party constitution. Hu's report to the congress called it "a powerful theoretical weapon" to guide the party.

"Even though this congress is about rejuvenation, passing the power to the young, what we see is the opposite," said Willy Lam of Chinese University of Hong Kong.

___

Associated Press writers Gillian Wong, Christopher Bodeen, Didi Tang and Louise Watt contributed to this report.

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Exclusive: Google Ventures beefs up fund size to $300 million a year

SAN FRANCISCO (Reuters) - Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.

Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.

It puts the firm on the same footing as more established corporate venture funds such as Intel's Intel Capital, which typically invests $300-$500 million a year.

"It puts a lot more wood behind the arrow if we need it," said Bill Maris, managing partner of Google Ventures.

Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.

Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.

Every year, it typically funds 40-50 "seed-stage" deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.

LACKING SUPERSTARS

Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.

Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm's recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.

Soon it could have even more cash to play around with. "Larry has repeatedly asked me: 'What do you think you could do with a billion a year?'" said Maris, referring to Google chief executive Larry Page.

(Editing by Muralikumar Anantharaman)

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Mark Wahlberg to star in next 'Transformers' movie

LOS ANGELES (AP) — Mark Wahlberg, roll out.

"Transformers" director Michael Bay says the 41-year-old actor will star in the franchise's fourth film.

Bay called Wahlberg the "perfect guy to re-invigorate the franchise and carry on the Transformers' legacy" in a post on his blog Thursday. He previously squashed rumors that Wahlberg was joining the film franchise about warring robots.

Bay worked with Wahlberg on his upcoming film, "Pain and Gain."

"Transformers 4" is scheduled to be released by Paramount Pictures on June 27, 2014.

Bay has said the next film will take a new direction in the series. The first three movies starred Shia LaBeouf and featured Peter Cullen as the voice of Autobot general Optimus Prime.

The third "Transformers" film, "Dark of the Moon," was the second highest-grossing film of 2011.

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Calif. city plans to provide transgender surgeries

SAN FRANCISCO (AP) — San Francisco is preparing to become the first U.S. city to provide and cover the cost of sex reassignment surgeries for uninsured transgender residents.

The city's Health Commission voted Tuesday to create a comprehensive program for treating transgender people experiencing mental distress because of the mismatch between their bodies and their gender identities. San Francisco already provides transgender residents with hormones, counseling and routine health services, but has stopped short of offering surgical interventions, Public Health Director Barbara Garcia said Thursday after the vote was announced.

The idea for a new program that included surgeries came out of conversations between public health officials and transgender rights advocates who wanted mastectomies, genital reconstructions and other surgeries that are recommended for some transgender people covered under San Francisco's 5-year-old universal health care plan.

At the urging of the San Francisco Board of Supervisors and the San Francisco-based Transgender Law Center, the commission agreed this week to drop sex reassignment surgery from the list of procedures specifically excluded from the Healthy San Francisco plan.

But Garcia described the move as "a symbolic process" for now because the city currently does not have the expertise, capacity or protocols in place to provide the surgeries through its clinics and public hospital.

"The community felt the exclusion on Healthy San Francisco was discriminatory and we wanted to change that as the first step," she said.

Instead of expanding the existing plan, the Health Commission approved the establishment of a separate program that covers all aspects of transgender health, including gender transition. Garcia hopes to have it running by late next year, but said her department first needs to study how many people it would serve, how much it would cost, who would perform the surgeries and where they would be performed.

"Sex reassignment surgery is not the end all. It's one service that some transgender people want and some don't," she said. "We can probably manage this over the next three years without much of a budget increase because we already have these (other) services covered."

San Francisco in 2001 became the first city in the country to cover sex reassignment surgeries for government employees. Last year, Portland, Ore. did the same. The number of major U.S. companies covering the cost of gender reassignment surgery for transgender workers also doubled last year, reflecting a decades-long push by transgender activists to get insurance companies to treat such surgeries as medically necessary instead of elective procedures.

Kathryn Steuerman, a member of a transgender health advocacy group in San Francisco, said the city's latest move would help residents avoid going into debt to finance operations related to gender transition, as she did.

"I am filled with hope and gratitude that we are achieving this level of support for the well-being of the transgender community," Steuerman said.

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Obama breaks down while speaking to staff, volunteers

The morning after he won re-election, an emotional President Barack Obama credited his youthful staff of several hundred with running a campaign that will "go on in the annals of history."

"What you guys have accomplished will go on in the annals of history and they will read about it and they'll marvel about it," said Obama told his team Wednesday morning inside the Chicago campaign headquarters, tears streaming down his face.

"The most important thing you need to know is that your journey's just beginning. You're just starting. And whatever good we do over the next four years will pale in comparison to whatever you guys end up accomplishing in the years and years to come," he said.

The moment, captured by the Obama campaign's cameras and posted online, offers a rare glimpse at the president unplugged and emotional. During the first four years of his presidency, Obama has never been seen publicly crying.

He first came to Chicago, he told the campaign staff, "knowing that somehow I wanted to make sure that my life attached itself to helping kids get a great education or helping people living in poverty to get decent jobs and be able to work and have dignity. And to make sure that people didn't have to go to the emergency room to get health care."

"The work that I did in those communities changed me much more than I changed those communities because it taught me the hopes and aspirations and the grit and resilience of ordinary people," he said, as senior strategist David Axelrod and campaign manager Jim Messina looked on. "And it taught me the fact that under the surface differences, we all have common hopes and we all have common dreams. And it taught me something about how I handle disappointment and what it meant to work hard on a common endeavor, and I grew up."

"So when I come here and I look at all of you, what comes to mind is, it's not that you guys remind me of myself, it's the fact that you are so much better than I was in so many ways. You're smarter, you're so better organized, you're more effective," he said.

Obama said he expected many of those who helped to re-elect him will assume new roles in progressive politics, calling that prospect a "source of my strength and inspiration."

Senior campaign officials said Thursday that the Obama campaign infrastructure - the field offices and network of hundreds of thousands of volunteers - would undergo a period of transition in the coming weeks to determine how to remain sustainable and influential.

"We have remarkable staff, and the campaign that Jim [Messina] put together, you know, is the best in history," said senior Obama adviser David Plouffe. "But the reason those people got involved was because they believed in Barack Obama. It was the relationship between them and our candidate."

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Truck bomb rocks Pakistan's largest city, kills 1

KARACHI, Pakistan (AP) — A suicide bomber smashed a truck packed with explosives into housing for a paramilitary force protecting Pakistan's largest city, killing at least one person in the explosion Thursday morning that sent a large plume of smoke into the sky, officials said.

The blast underlined deteriorating security in Karachi, the sprawling port city of 18 million people that is considered the economic heart of Pakistan. Violence has escalated in recent years in the city as armed groups fight for control of land and resources, and militant groups like the Taliban have used the chaos to consolidate their foothold.

One dead body had been brought to the Abbasi Shaheed Hospital from the early morning explosion, Dr. Saleem Memon said.

A truck driven by a suspected suicide bomber smashed into the gates of a residential apartment block where members of the Rangers security forces live and at least 13 people were hurt in the blast, said Javed Odho, deputy inspector general of the Karachi police.

The Rangers are a paramilitary force that is tasked with helping Karachi police maintain security.

Witnesses reported seeing a large plume of smoke in the sky. Pakistani television images of the blast sight showed what appeared to be an apartment block with a gaping hole in the middle where the bomb went off and part of the two-story building was razed.

Rangers created a perimeter around the building to hold off journalists and bystanders.

One of the Rangers, Muhammed Farooq, said he was preparing for work when he looked out the window and saw a vehicle smash through the main gate and into the building.

"Then there was a really big bang and I lost my balance and I saw a lot of smoke and then I lost consciousness," he said, speaking from the hospital.

There was no immediate claim of responsibility. Taliban militants are known to operate inside the city and have targeted security officials and buildings in the past.

Half a dozen Taliban militants attacked a major naval base in Karachi in May 2011, killing at least 10 people and destroying two U.S.-supplied surveillance aircraft. In September 2011, a Taliban suicide bomber detonated a vehicle packed with explosives outside the home of a senior police officer tasked with cracking down on militants in Karachi. At least eight people died, although the officer survived.

Karachi is in southern Pakistan and is the capital of Sindh province. The sprawling city along the Arabian Sea is the country's wealthiest but has also been beset by escalating violence.

Armed groups backed by political parties are believed to be behind much of the violence in the city such as targeted killings, kidnappings and extortion. The chaos has allowed militants such as the Taliban, who've long had a presence in the city, to strengthen their presence there.

The Pakistani Supreme Court last week held hearings examining the violence, which some worry threatens Karachi's stability.

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Apple slides to five-month low, uncertainty grows

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Rihanna a rock star on Victoria's Secret catwalk

NEW YORK (AP) — Rihanna rocked the lingerie look at Wednesday night's Victoria's Secret fashion show in New York, providing the highlight of the live-music soundtrack and holding her own on the catwalk with some of the world's top models.

And those models even had props, including Adriana Lima's ringmaster wand, Doutzen Kroes' body cage and several pairs of the oversized wings that the retailer has made its signature. It would be a close contest who got the biggest wings: Toni Garrn's giant poppy pair or Miranda Kerr's swan-style feathered pouf. Only Lily Aldridge could boast star-spangled wings that shot out silver sparkles.

Alessandra Ambrosio's orchid-petal wings might have lacked a little grandeur, but she made up for it with a $2.5 million jeweled "floral fantasy bra."

Still, wearing a sheer pink mini that gave glimpses of her bra, Rihanna sang "Fresh Out the Runway" at the end of the corset-and-garter parade and she was the one to grab the audience's biggest applause.

The fashion show has become a pre-holiday season tradition for the retailer. CBS will turn it into a one-hour special, which also had performances from Justin Bieber and Bruno Mars, to be shown on Dec. 4.

This year's event had a slight twist. It started with an announcer noting that Victoria's Secret and CBS had each made a donation to relief efforts for Superstorm Sandy, and a thank you to the National Guard members who are based out of the Lexington Avenue Armory that has for years been home to the show.

Mostly, though, models are encouraged to smile, ham it up and show off the extra time at the gym that most admit to in the weeks beforehand. "It's highly televised, and you take that into consideration," said model Joan Smalls ahead of the show. "This is kind of not the same as other runways. You have to prepare your body: No. 1 is the wings are heavy, and No. 2 is you have to be comfortable with your body because the camera will pick up on it if you're not comfortable and confident."

There's an emphasis on glitz, skin and dramatic production here, not wearable undergarment trends for typical Victoria's Secret shoppers. It was divided into six sections: Circus, complete with acrobats, contortionists and a sword eater; Dangerous Liaisons; Pink Is Us; Silver Screen Angels; Angels in Bloom; and Calendar Girls, which allowed Bruno Mars to serenade a model for each month of the year.

For his first song, "Beauty and the Beat," Bieber, wearing low-slung white pants and a white leather studded vest, sat alone with his guitarist in the mellowest part of the show. For "As Long As You Love Me," however, he brought in backup dancers and interacted with the models while moving around a giant makeshift pinball machine.

"It's like a dream come true," said Bieber on the pink carpet before the show. "I would rather be here than anywhere in the world."

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AP reporter John Carucci contributed to this report.

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Samantha Critchell tweets fashion at http://www.twitter.com/AP_Fashion

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Experts raise concerns over superhuman workplace

LONDON (AP) — Performance-boosting drugs, powered prostheses and wearable computers are coming to an office near you — but experts warned in a new report Wednesday that too little thought has been given to the implications of a superhuman workplace.

Academics from Britain's leading institutions say attention needs to be focused on the consequences of technology which may one day allow — or compel — humans to work better, longer and harder. Here's their list of upgrades that might make their way to campuses and cubicles in the next decade:

BRAIN BOOSTERS

Barbara Sahakian, a Cambridge neuropsychology professor, cited research suggesting that 16 percent of U.S. students already use "cognitive enhancers" such as Ritalin to help them handle their course loads. Pilots have long used amphetamines to stay alert. And at least one study has suggested that the drug modafinil could help reduce the number of accidents experienced by shift workers.

But bioethicist Jackie Leach Scully of northern England's Newcastle University worries that the use of such drugs might focus on worker productivity over personal well-being.

"Being more alert for longer doesn't mean that you'll be less stressed by the job," she said. "It means that you'll be exposed to that stress for longer and be more awake while doing it."

WEARABLE COMPUTERS

The researchers also noted so-called "life-logging" devices like Nike Inc.'s distance-tracking shoes or wearable computers such as the eyeglasses being developed by Google Inc. The shoes can record your every step; the eyeglasses everything you see. Nigel Shadbolt, an expert in artificial Intelligence at southern England's University of Southampton, said such devices were as little as 15 years away from being able to record every sight, noise and movement over an entire human life.

So do you accept if your boss gives you one?

"What does that mean for employee accountability?" Shadbolt asked.

BIONIC LIMBS — AND BEYOND

The report also noted bionic limbs like the one used this week by amputee Zac Vawter to climb Chicago's Willis Tower or exoskeletons like the one used earlier this year by partially paralyzed London Marathon participant Claire Lomas. It also touched on the development of therapies aimed at sharpening eyesight or cochlear implants meant to enhance hearing.

Scully said any technology that could help disabled people re-enter the workforce should be welcomed but society needs to keep an eye out for unintended consequences.

"One of the things that we know about technology hitting society is that most of the consequences were not predicted ahead of time and a lot of things that we worry about ahead of time turn out not to be problems at all," she said. "We have very little idea of how these technologies will pan out."

THE PRESSURIZED WORKPLACE

The report was drawn up by scientists from The Academy of Medical Sciences, the British Academy, the Royal Academy of Engineering and the Royal Society.

"We're not talking science fiction here," said Genevra Richardson, the King's College law professor who oversaw the report. "These technologies could influence our ability to learn or perform tasks, they could influence our motivation, they could enable us to work in more extreme conditions or in old age, or they could facilitate our return to work after illness or disability .... Their use at work also raises serious ethical, political and economic questions."

Scully said workers may come under pressure to try a new memory-boosting drug or buy the latest wearable computer.

"In the context of a highly pressurized work environment, how free is the choice not to adopt such technologies?" she said.

Union representatives appeared taken aback by some of the experts' predictions. One expressed particular disquiet at the possibility raised by the report that long-distance truck drivers might be asked to take alertness drugs for safety reasons.

"We would be very, very against anything like that," said James Bower, a spokesman for Britain's United Road Transport Union. "We can't have a situation where a driver is told by his boss that he needs to put something in his body."

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Online:

The report: http://royalsociety.org/policy/projects/human-enhancement

Raphael Satter can be reached on: http://raphae.li/twitter

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