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* * * * * * THURSDAY, JUNE 12, 2014 ~ VOL. CCLXIII NO. 136
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What’sNews
i i i
World-Widen Islamistmilitants in Iraqseized a second city and
nearedthe capital. Baghdad signaled itwould allow U.S. airstrikes
andaskedWashington to speed de-livery of military gear. A1, A11n
Cantor said he would stepdown as House majorityleader in the wake
of hisGOP primary defeat, trigger-ing a succession fight. A1, A4n
At least two U.S. dronestrikes hit Pakistan’s NorthWaziristan
tribal region, amilitant stronghold. A9n Ukraine’s presidentcalled
formilitants to lay downtheir arms.Meanwhile, Russiapressed for a
gas deal.A12n Russian officials chargedthree opposition figures
withfraud in what critics called aKremlin crackdown. A12nHagel
defended the pris-oner swap that freed Bergdahl,telling lawmakers
secrecy wasnecessary to avoid leaks. A6n The FBI has opened
acriminal probe into VA sched-uling practices, escalating thestakes
in the scandal. A8n Police need a warrant totrack criminal
suspects’ cell-phones, a court ruled. A8n South Sudan’s
presidentand a rebel leader agreed toform a transitional
govern-ment in the next 60 days. A9n São Paulo subway workerscalled
off a threatened strike onthe eve of theWorld Cup.A10n Died: Glenn
Britt, 65, ledTime Warner Cable. B6
i i i
The EU opened probes intotax practices used by Ap-ple, Starbucks
and Fiat, a newfront in its effort to focus ontax avoidance by big
firms. B1nBNP has tentatively agreedto oust a senior adviser as
partof a proposed settlement ofalleged sanctions violations. C1n
The Dow slid 102.04 pointsto 16843.88 as investors wor-ried about
U.S. politics,global growth and Iraq. C1n Alibaba launched its
11Main U.S. shopping website,in a challenge to e-commercegiants
Amazon and eBay. B1n Thousands of taxi driverssnarled traffic
across Europeto protest Uber and othercar-hailing services. B3n The
U.K. plans to outlinesteps aimed at cleaning upBritain’s financial
markets. C3n J.P. Morgan may cut payfor some
investment-bankemployees amid relativelyslow trading conditions.
C3nPinnacle may try to squeezemore money from HillshireBrands
before releasing itfrom a merger agreement. B3nAT&T told
regulators its Di-recTV deal is needed to com-pete in the market
for bundledvideo and broadband. B3n Emirates Airline walkedaway
from a deal for 70 Air-bus jets, one of the industry’sbiggest
cancellations. B6n Air-route competitionshowed little decline
during aperiod of airline mergers. B2
Business&Finance
WASHINGTON—At a closed-door gathering of Gulf states inJeddah,
Saudi Arabia, in May,Defense Secretary Chuck Hageland his Arab
counterparts allsignaled agreement on one thingfor the first time:
Islamist forcesseizing territory in Syria andIraq had become a
regionwidemenace that can’t be ignored.
What they didn’t agree on waswhat to do about it, U.S.
officialssaid. The fall this week of theIraqi cities Mosul and
Tikrit to
the Islamic State of Iraq and al-Sham rebel group shows how
theinsurgent threat is outpacing theresponse and posing a
challengeto President Barack Obama’s ap-proach of limiting U.S.
involve-ment in foreign conflicts.
The quickly unfolding dramaprompted a White House
meetingWednesday of top policy makersand military leaders who
werecaught off guard by the swift col-lapse of Iraqi security
forces, of-ficials acknowledged.
State Department and Penta-gon officials have long warnedabout
ISIS’s desire to create an
Islamic state based in the Sunni-dominated parts of Iraq
andSyria.
Now, current and former offi-cials say Washington’s optionsfor
helping the Iraqi army fightback are limited—both becausethe threat
in Iraq is so en-trenched and because the U.S.hasn’t invested in
building upmoderate allies on the Syrianside of the border.
U.S. military leaders said theyhad thought that Iraqi
securityforces’ efforts would be enoughto slow ISIS’s advance. But
thoseassumptions were proven wrong
when Iraqi troops largely aban-doned their posts.
The loss of Mosul, the sec-ond-largest city in Iraq, was
astrategic blow and the U.S.doubts the Iraqi military will be
PleaseturntopageA11
BY ADAM ENTOUSAND JULIAN E. BARNES
Iraqi Drama Catches U.S. Off Guard
Cabbies Brake for Online Hazard
ANGRY HACKS: Taxi drivers snarled traffic across Europe
Wednesday,including in Berlin, above, to protest car-hailing apps
such as Uber. B3
Reuters
European
Presspho
toAgency
Islamist militants swept outof northern Iraq Wednesday toseize
their second city in twodays, threatening Baghdad andpushing the
country’s besiegedgovernment to signal it wouldallow U.S.
airstrikes to beat backthe advance.
An alarmed Iraqi governmentalso asked the U.S. to
acceleratedelivery of pledged military sup-port, particularly
Apache heli-copters, F-16 fighters and sur-veillance equipment, to
helppush back fighters from the Is-lamic State of Iraq and
al-Sham,an al Qaeda offshoot known asISIS. The U.S. said it has
beenexpediting shipments of militaryhardware to the Iraqis all
year.
Iraqi Foreign Minister Hosh-yar Zebari said his country facesa
“mortal threat” from the ISISinsurgents.
Officials declined to saywhether the U.S. would
considerconducting airstrikes withdrones or manned aircraft.
TheObama administration is consid-ering a number of options,
ac-cording to a senior U.S. officialwho added that no decisionshave
been made.
Bernadette Meehan, a WhiteHouse National Security
Councilspokeswoman, said the currentfocus of discussions with Iraq
“isto build the capacity of theIraqis to successfully confrontand
deal with the threat posedby [ISIS].”
ISIS overran Tikrit, the birth-place of former dictator
SaddamHussein, on Wednesday after cap-
PleaseturntopageA11
By Ali A. Nabhanin Baghdad and
Matt Bradley in Cairo
Militants AdvanceTowardBaghdadIraqi Government Signals Openness
to U.S. Airstrikes After Islamists Seize Second City in Two
Days
Sulayman Beg
100 miles
100 km
I R A Q
I RAN
TURKEY
SYR IA
Fallujah
Mosul
Baghdad
Tikrit
Baiji
Iraqicities underISIS control
ISIS moved south fromMosul on Wednesday,threatening Baghdad
Tigris R.
The Wall Street Journal
Battle Lines Iraqi, U.S. officers trade
blame over failures........... A11 Fighters from Kurdish
regions mobilize ................ A11 U.S. resumes drone
strikes
in Pakistan............................ A9
Loveth Kirika was driving her2007 Chevrolet HHR towardHouston in
April when it sud-denly stalled on Interstate 45.Another car
rear-ended her,knocking out the 39-year-oldwoman with a
concussion.
In May, her husband, Lenu,got a telephone call from MarkByrd, an
investigator of product-liability cases at General MotorsCo. He
wanted to know wherethe car’s black box was. Mr.Kirika replied that
he hadn’tseen the car since it was towedaway from the crash scene.
Theinvestigator called back later andtold Mr. Kirika he was still
look-ing. Mr. Kirika said he hung up.
As GM braces for a long,costly legal slog over its liabilityfor
defective ignition switches in2.6 million cars recalled by
thecompany earlier this year, a tugof war has emerged over the
data in black boxes, mounteddeep inside the cars and knownin the
auto industry as “eventdata recorders.”
GM and lawyers lining upplaintiffs to sue the company areracing
to find black boxes inwrecked cars and track down olddownloads of
black-box data.Some families and plaintiffs’lawyers said the auto
maker hascontacted them seeking posses-sion of black boxes.
Mr. Byrd referred questions tohis boss in Detroit, who
declinedto comment. In a written state-ment, a GM spokesman said
theauto maker is “taking responsi-bility for what has happened
bytaking steps to treat these vic-tims and their families
withcompassion, decency and fair-ness.” The Kirikas are preparinga
lawsuit against GM, said theirlawyer, Bob Hilliard.
The company has attributedat least 54 crashes and 13 deaths
Pleaseturntothenextpage
BY MIKE SPECTORAND VANESSA O’CONNELL
Lawyers Race GMTo Find Black Boxes
WASHINGTON—Rep. EricCantor said Wednesday hewould step down as
majorityleader in the wake of his pri-mary defeat, triggering a
succes-sion fight that promised to re-open deep divisions
amongHouse Republicans.
The unexpected toppling ofMr. Cantor by tea-party-backedcollege
professor David Brat onTuesday immediately touchedoff jockeying for
leadershipspots. The House’s most conser-vative lawmakers,
emboldenedby Mr. Cantor’s downfall, saw itas an opportunity to
expandtheir power and attempt to pushthe party’s agenda to the
righton issues including immigrationand spending.
Mr. Cantor, of Virginia, saidhe would resign as leader
effec-tive July 31. House Republicanswill elect his successor June
19,a date set by GOP leaders tolimit the time for a
potentiallybruising competition.
“What divides Republicanspales in comparison to what di-vides us
conservatives from theleft and the Democratic Party,”Mr. Cantor
told reportersWednesday.
The internal wranglingsparked by the lawmaker’s com-ing
departure quickly resurfacedfault lines among House Republi-cans
that had begun to publiclysubside since last fall’s
partialgovernment shutdown. Headinginto this fall’s midterm
races,House GOP leaders had workedto mask the fissures, largely
bypushing off must-pass legislation
until after the elections.Now, the burgeoning competi-
tion to succeed Mr. Cantor asleader is quickly reanimatingpolicy
debates. There is generalagreement that Mr. Cantor’s exitstrangles
what little hope therehad been for moving legislationto overhaul
immigration, thoughPresident Barack Obama onWednesday rejected that
posi-tion. It also could spell troublefor reauthorizing the
Export-Im-port Bank and re-energize a con-servative push to rein in
federalspending in future fiscal fights.
Mr. Cantor’s upset marked thefirst time a majority leader
hadlost a primary, capping at seven
PleaseturntopageA4
BY KRISTINA PETERSONAND JANET HOOK
Cantor Exits Leadership Post,Triggering House GOP Fight
Surprise loss in primary upendslegislative
agenda........................ A4
Incumbent’s missteps................ A4
Journal ReportEntrepreneurs tap neighborsfor funding. Small
Businessspecial report. Section R
Yorkshire HasNo ‘Love’ forTour de France
i i i
Pet Names BanishedWhile Race Rolls;‘A Load of Twaddle’
BY JENNY GROSS
LEEDS, England—DominicWatt was clicking through an on-line
manual for Tour de Francevolunteers in Britain when some-thing
upsetting hit his screen.
“Avoid using words such as‘mate,’ ‘love’ or ‘darling’—theymay
sound friendly to you, butthey could offend some people,”he read on
an April Tuesday.
The banishment of pet namesthat roll freely off the tongueshere
has stuck a stick in thespokes of pre-race preparationsfor the
first part of the 2,270-mileTour de France cycling race,which
begins in Yorkshire thissummer. The race hasn’t startedin England
since 2007.
The idea of a loveless York-PleaseturntopageA8
DATA DRIVEN
Iraqi soldiers head toward Baghdad from a base in the north
after Islamist fighters made gains, seizing control of Tikrit on
Wednesday.
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reserved.
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