Justice Department sues S&P over mortgage bond ratings

The federal government is embarking on one of its most ambitious efforts to assign blame for the financial crisis, going after Wall Street's biggest credit rating firm for its role in pumping up the housing bubble.

The Justice Department filed a lawsuit late Monday in Los Angeles federal court against Standard & Poor's Corp. The suit accuses the company's analysts of issuing glowing reviews on troubled mortgage securities whose subsequent failure helped cause the worst financial crisis since the Great Depression.

The action marks the first federal crackdown against a major credit rater, and it signals an untested legal tack after limited success in holding the nation's banks accountable for the part they played in the crisis.

The government selected Los Angeles as the venue to file the lawsuit in part because it was one of the regions hardest hit when the bottom fell out of the housing market. Hundreds of thousands of California residents lost their homes to foreclosure, and others saw their wealth evaporate as properties plummeted in value.

"The DOJ is playing hardball and they're coming at the ratings agency in a very different direction with a potentially very powerful weapon to push S&P to the settlement table," said Jeffrey Manns, a law professor at George Washington University.

In addition to the Justice Department, several state attorneys general are investigating the ratings agency. States such as California and New York are expected to pursue their own investigations and legal action, people familiar with the matter said.

S&P has faced other lawsuits from investors and the states of Illinois and Connecticut.

California is expected to sue S&P under the state's False Claims Act, one person familiar with the matter said. The law makes it a crime to defraud the state, and damages of up to three times the amount of the claim can be awarded if the victim was an institutional investor, such as one of the state's pension funds.

The federal action does not involve any criminal allegations. Critics have complained that the government has yet to send any senior bankers or Wall Street executives to jail for potential illegal behavior that led to the crisis.

But civil actions typically require a much lower burden of proof.

Investors rely in part on rating agencies to decide what stocks, bonds or other securities to buy based on the agencies' recommendations about their safety. The three major raters – S&P, Moody's Investors Service and Fitch Ratings — have all been criticized for giving perfect AAA ratings to complex bonds in 2007 that later turned out to be nearly worthless.

It was not known why Standard & Poor's was singled out in the federal lawsuit.

The government and S&P have tangled before. The rating agency in August 2011 issued a historic downgrade of U.S. creditworthiness and threatened to lower it even further.

The two sides were reportedly in settlement talks that broke down during the past week. The ratings firm could face hundreds of millions of dollars in fines and new restrictions on its business model if found liable of civil violations.

S&P, which is a unit of publisher McGraw Hill, denounced the lawsuit in a detailed and strongly worded response. The company said the claims were unjustified, adding that it acted in "good faith" to warn the world about some of the securities that went belly up.

"A DOJ lawsuit would be entirely without factual or legal merit," the company said, adding that even the U.S. government "publicly stated that problems in the subprime market appeared to be contained."

The rating firm has steadfastly maintained that it was protected under the 1st Amendment to state an opinion about certain financial products. That argument may not hold up if federal or state investigators are able to prove that the ratings agency knowingly gave improper evaluations.

The lawsuit zeros in on a series of collateralized debt obligations that were created at the height of the housing boom in 2007, according to S&P. The value of these exotic mortgage securities was nearly wiped out when the subprime mortgages they were tied to imploded.

Lawrence J. White, an economics professor at New York University's business school, believes that the housing crisis could have been more contained if ratings agencies had been more careful.

"If they had been more conservative in their ratings, fewer bonds would have been sold, the interest rates would have been higher, fewer mortgages would have been granted," White said. "There would still have been a housing bubble, but it might not have been quite so severe."

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Russia, Iran support idea of talks in Syria

BEIRUT — A faint glimmer of hope of breaking the diplomatic standoff on Syria has emerged as two key allies, Russia and Iran, reacted positively to a leading opposition figure's surprise offer of conditional talks with the government of President Bashar Assad.

Officials from the two countries spoke approvingly of the offer at a global security meeting that ended Sunday in Munich, Germany. At the same time, Israel's defense minister seemed to acknowledge that his country was responsible for last week's airstrike on Syrian territory — an attack that Israel has not officially confirmed but which has raised the ominous specter of a wider regional war.

Defense Minister Ehud Barak told reporters at the Munich conference that the attack in Syria was "proof that when we say something, we mean it." The comment was widely interpreted as indirect confirmation that Israeli warplanes conducted the Wednesday strike, which reportedly targeted a Syrian arms convoy destined for the militant group Hezbollah, Syria's ally and Israel's avowed adversary.

His remarks somewhat overshadowed the potentially promising developments on the long-stalled diplomatic front. Both Russian Foreign Minister Sergei Lavrov and his Iranian counterpart, Ali Akbar Salehi, seemed to give their blessing to an effort by Syrian opposition figure Moaz Khatib to open talks with Assad.

"This is a very important step, particularly taking into account that the [opposition] coalition was created on a platform of categorical rejection of any conversation with the regime," Lavrov said, according to the Interfax news agency.

Moscow and Tehran are widely viewed as the only international interlocutors able to exert influence or pressure on Assad, who has vowed not to step down despite an almost two-year rebellion that has left tens of thousands dead, millions homeless and much of the country in ruins.

Khatib, who heads a Western-backed dissident coalition forged in November, broke a taboo among many opposition advocates and declared last week that he would be willing to speak with Assad's representatives under two conditions — the release of 160,000 Syrian prisoners and the renewal of passports for Syrian exiles. Khatib first made the offer in a Facebook posting, then reiterated it in Munich, where he met with high-ranking Iranian, Russian and U.S. officials, including Vice President Joe Biden.

"As a gesture of goodwill, we say, just to ease the pain of the Syrian people … we are ready to sit at the negotiating table with the regime," Khatib told reporters, adding that he still favored overthrowing Assad "by peaceful means."

Despite the offer, no breakthrough in Syria appears imminent. Many obstacles remain. There are no scheduled negotiations as the fighting drags on.

The United States and its allies, including Turkey and Saudi Arabia, have insisted that Assad must go, a condition rejected by Russia, which has used its veto power on three occasions in the United Nations Security Council to block international action against Assad.

In Munich, Biden reiterated the White House position that "President Assad, a tyrant hell-bent on clinging to power, is no longer fit to lead the Syrian people and he must go."

On the battlefield, however, many experts see a stalemate in which neither side can prevail. The rise of Islamic militants among the fragmented rebel battalions has troubled the White House and helped scuttle proposals to provide sophisticated weaponry to opposition forces.

Meanwhile, Khatib's suggestion of talks with Damascus has caused a backlash among fellow dissidents who insist that Assad must resign before any negotiations can take place. Some have even accused Khatib — a respected Sunni Muslim preacher and an engineer from a well-known family of Islamic scholars in Damascus — of selling out a sacred cause.

Amid the outcry, Khatib said he was speaking for himself, not for the umbrella group that he heads, the National Coalition of Syrian Revolutionary and Opposition Forces. But any formal talks with the Assad government would presumably require the approval of the full coalition.

The Syrian government does not seem likely to comply with Khatib's demands for a wholesale release of prisoners and the renewal of the passports of many of its most bitter expatriate critics. Damascus has yet to comment publicly on Khatib's offer of talks. Assad recently renewed calls for dialogue with the opposition, but he has repeatedly excluded "terrorists," a term he has used broadly against both rebel fighters and their political supporters.

Still, both Russia and Iran seemed to view Khatib's offer as an encouraging development. In private, officials in Moscow and Tehran have reportedly voiced concerns that sticking with Assad could have disastrous consequences if he is ultimately overthrown.

Lavrov was quoted Saturday as saying that Khatib's offer demonstrated that "realism has prevailed." He added, "Of course, this does not guarantee that a dialogue will begin, at least because the opposition does not have a negotiating team."

Iran's Salehi called Khatib's initiative "a good step forward," adding that he had a "very good meeting" with Khatib in Munich. The Iranian diplomat backed the idea of the opposition and the government entering into negotiations for new elections in Syria.

Meanwhile, violence continued to rage in Syria, especially in the embattled northern city of Aleppo. The historic city, which had been the nation's economic hub, is gradually being destroyed amid a battle for control by rebel and government forces that began in July.

On Sunday, opposition activists reported that government rockets hit a five-story residential building in the rebel-held Ansari district, killing at least nine people, according to the Syrian Observatory for Human Rights, a British-based pro-opposition group. The group also said that rebels had executed four men in Aleppo accused of complicity with government security services.

In addition, the group confirmed reports in the state-run press that rebels in Aleppo killed a former member of parliament, Ibrahim Azooz, his wife and two daughters. The opposition group said the four were "summarily executed."

In a statement, Assad accused Israel of trying to "destabilize and weaken Syria," and vowed that the nation would repel "aggression."

For the first time, state television aired footage of what it said was a scientific research center outside Damascus bombed by the Israelis. Western sources have described the target as an arms convoy. Footage showed a beige building with broken windows and other damage, along with destroyed vehicles outside that may have suffered direct hits.

Times staff writer Edmund Sanders in Jerusalem contributed to this report.

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Beyonce electrifies at Super Bowl halftime show

If naysayers still doubted Beyonce's singing talents — even after her national anthem performance this week at a press conference — the singer proved she is an exceptional performer at the Super Bowl halftime show.

Beyonce opened and closed her set belting songs, and in between she danced hard and heavy — and better than most contemporary pop stars.

She set a serious tone as she emerged onstage in all black, singing lines from her R&B hit "Love on Top." The stage was dark as fire and lights burst from the sides. Then she went into her hit "Crazy In Love," bringing some feminine spirit to the Superdome as she and her background dancers did the singer's signature booty-shaking dance. Beyonce ripped off part of her shirt and skirt. She even blew a kiss. She was ready to rock, and she did so like a pro.

Her confidence — and voice — grew as she worked the stage with and without her Destiny's Child band mates during her 13-minute set, which comes days after she admitted she sang to a pre-recorded track at President Barack Obama's inauguration less than two weeks ago.

Beyonce proved not only that she can sing, but that she can also entertain on a stage as big as the Super Bowl's. The 31-year-old was far better than Madonna, who sang to a backing track last year, and miles ahead of the Black Eyed Peas' disastrous set in 2011.

Beyonce was best when she finished her set with "Halo." She asked the crowd to put their hands toward her as she sang the slow groove on bended knee — and that's when she the performance hit its high note.

"Thank you for this moment," she told the crowd. "God bless y'all."

Her background singers helped out as Beyonce danced around the stage throughout most of her performance. There was a backing track to help fill in when Beyonce wasn't singing — and there were long stretches when she let it play as she performed elaborate dance moves.

She had a swarm of background dancers and band members spread throughout the stage, along with videotaped images of herself dancing that may have unintentionally played on the live-or-taped question. And the crowd got bigger when she was joined by her Destiny's Child band mates.

Kelly Rowland and Michelle Williams popped up from below the stage to sing "Bootylicious." They were in similar outfits, singing and dancing closely as they harmonized. But Rowland and Williams were barely heard when the group sang "Independent Woman," as their voices faded into the background.

They also joined in for some of "Single Ladies (Put a Ring On It)," where Beyonce's voice grew stronger. That song featured Beyonce's skilled choreography, as did "End of Time" and "Baby Boy," which also showcased Beyonce's all-female band, balancing out the testosterone levels on the football field.

Before the game, Alicia Keys performed a lounge-y, piano-tinged version of the national anthem that her publicist assured was live. The Grammy-winning singer played the piano as she sang "The Star Spangled Banner" in a long red dress with her eyes shut.

She followed Jennifer Hudson, who sang "America the Beautiful" with the 26-member Sandy Hook Elementary School chorus. It was an emotional performance that had some players on the sideline on the verge of tears. Hudson also sang live, her publicist said.

The students wore green ribbons on their shirts in honor of the 20 first-graders and six adults who were killed in a Dec. 14 shooting rampage at the school in Newton, Conn.

The students began the song softly before Hudson, whose mother, brother and 7-year-old nephew were shot to death five years ago, jumped in with her gospel-flavored vocals. She stood still in black and white as the students moved to the left and right, singing background.

___

Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin

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Medicines Co. Licenses Rights to Cholesterol Drug

The drug, known as ALN-PCS, inhibits a protein in the body known as PCSK9. Such drugs might one day be used to treat millions of people who do not achieve sufficient cholesterol-lowering from commonly used statins, such as Lipitor.

The Medicines Company will pay $25 million initially and as much as $180 million later if certain development and sales goals are met, under the deal expected to be formally announced Monday. It will also pay Alnylam, which is based in Cambridge, Mass., double-digit royalties on global sales.

That is small payment for a drug with presumably a huge potential market, probably reflecting that Alnylam is still in the first of three phases of clinical trials, well behind some far bigger competitors.

The team of Sanofi and Regeneron Pharmaceuticals is already entering the third and final stage of trials with their PCSK9 inhibitor, as is Amgen. Pfizer and Roche are in midstage trials.

ALN-PCS is different from the other drugs. It uses a gene-silencing mechanism called RNA interference, aimed at shutting off production of the PCSK9 protein. The other drugs are proteins called monoclonal antibodies that inhibit the action of PCSK9 after it has been formed.

Alnylam and the Medicines Company hope that turning off the faucet, as it were, will be more efficient than mopping the floor, allowing their drug to be given less frequently and in smaller amounts.

But that has yet to be proved. No drug using RNA interference has reached the market.

The Medicines Company, based in Parsippany, N.J., generates almost all of its revenue from one product — Angiomax, an anticlotting drug used when patients receive stents to open clogged arteries.

Dr. Clive A. Meanwell, chief executive of the company, said that PCSK9 inhibitors are likely to be used at first mainly by patients with severe lipid problems under the care of interventional cardiologists, the same doctors who use Angiomax. “It really is quite adjacent to what we do,” he said.

The Medicines Company licensed Angiomax from Biogen Idec, where the drug was invented and initially developed under a team led by Dr. John M. Maraganore, who is now the chief executive of Alnylam.

“It’s a bit like getting the band back together,” Dr. Maraganore said.

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U.S.-Mexico trade war over tomatoes appears to have been averted

American and Mexican tomato growers appear to have avoided a trade war — the U.S. Commerce Department has released a draft of an agreement governing the price of tomato imports from Mexico.

U.S. growers in Florida had accused their Mexican counterparts of selling their tomatoes below fair market value, a practice known as dumping.

The new agreement, which sets a minimum wholesale price for tomatoes, would replace a trade pact that went into effect 17 years ago.

Francisco Sanchez, the undersecretary of commerce for international trade, said in a statement Saturday that the agreement puts in place "robust enforcement that will allow American workers and the U.S tomato industry to compete on a level playing field."

In the last decade, U.S. growers found themselves competing heavily with Mexico. That country's exports of tomatoes to the U.S. reached $1.81 billion in 2011, more than quadruple the $412 million in 2000.

Eager to continue exports and sales of their tomatoes, Mexican tomato growers and importers worked with Commerce Department officials on drafting an agreement.

The plan, open to public comment until Feb. 11, would raise the wholesale price for tomatoes and strengthen anti-dumping enforcement.

One provision of the agreement, expected to take effect March 4, creates a reporting mechanism to monitor the price of production by Mexican growers.

Martin Ley, a Mexican tomato grower involved in the negotiations, said the agreement was made possible by steep concessions on the part of Mexican tomato producers.

"Getting to this moment no doubt required significant compromise by the Mexican growers," he said in a statement. "Even though no dumping or injury to the U.S. industry was demonstrated by our competitors, over the last year our growers worked with our government to overhaul the whole Mexican industry, broaden the coverage and develop tough enforcement schemes.

"While concessions on price will impose hardships on our industry, we are hopeful that over the long run we will be able to continue to supply the United States with what are acknowledged to be the best tomatoes in the market."

Late last month, a study, paid for by a Mexican tomato trade group, predicted that the price of winter tomatoes would have doubled if Mexican imports were excluded from the U.S. market. The study, released by the Fresh Produce Assn. of the Americas, projected that the price of hothouse round tomatoes, for instance, would have risen from $2.02 a pound to almost $4 a pound.

U.S. growers appeared to back the agreement but held firm to their assertion that Mexico was dumping its tomatoes.

With the agreement, "we're hopeful and optimistic that we'll be able to compete under fair trade conditions," Edward Beckman, president of Certified Greenhouse Farmers, said in a statement. "Much work remains to have the agreement fully and faithfully implemented, and continuous monitoring and enforcement will be critical."

ricardo.lopez2@latimes.com

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Noted sniper shot dead at Texas gun range

GLEN ROSE, Texas—

Former Navy SEAL and “American Sniper” author Chris Kyle was fatally shot along with another man Saturday on a Texas gun range, a sheriff told local newspapers.

Erath County Sheriff Tommy Bryant said Kyle, 38, and a second man were found dead at Rough Creek Lodge's shooting range west of Glen Rose, according to the Fort Worth Star-Telegram and Stephenville Empire-Tribune. Glen Rose is about 50 miles southwest of Fort Worth.

Bryant did not immediately return phone calls to The Associated Press seeking comment late Saturday and early Sunday. A woman who answered the phone at the lodge where the shooting occurred declined comment and referred calls to the sheriff's office.

Investigators did not immediately release the name of the second victim, according to the newspapers.

Witnesses told sheriff's investigators that a gunman opened fire on the men around 3:30 p.m. Saturday, then fled in a pickup truck belonging to one of the victims, according to the Star-Telegram. The newspapers said a 25-year-old man was later taken into custody in Lancaster, southeast of Dallas, and that charges were expected.

Lancaster police did not immediately return calls for comment.

The motive for the shooting was unclear.

Kyle wrote the best-selling book, “American Sniper: The Autobiography of the Most Lethal Sniper in U.S. Military History,” detailing his 150-plus kills of insurgents from 1999 to 2009.

Kyle was sued by former Minnesota Gov. Jesse Ventura over a portion of the book that claims Kyle punched Ventura in a 2006 bar fight over unpatriotic remarks. Ventura says the punch never happened and that the claim by Kyle defamed him.

Kyle had asked that Ventura's claims of invasion of privacy and “unjust enrichment” be dismissed, saying there was no legal basis for them. But a federal judge said the lawsuit should proceed. Both sides were told to be ready for trial by Aug. 1.

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5 Fascinating Facts We Learned From Reddit This Week

Click here to view the gallery: Reddit Facts 2/2

If you’ve ever wanted to learn how to game the French lottery of 1728 (and who hasn’t, amirite?), you’ve come to the right place. This week’s edition of Reddit Facts has some delightful tidbits about the Fab Four, a famous photograph and a funky fruit.

[More from Mashable: 10 Quirky Etsy Finds to Celebrate Groundhog Day]

Homepage image courtesy of Wikimedia Commons.

[More from Mashable: 10 Valentine’s Day Gifts for the Special Geek in Your Life]

This story originally published on Mashable here.

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Stevie Wonder headlines pre-Super Bowl concert

NEW ORLEANS (AP) — Applause and approval greeted Stevie Wonder as thousands stood for hours to hear his pre-Super Bowl concert that also featured guitarist Gary Clark Jr.

Escorted on stage late Saturday by his daughter and backup singer Aisha Morris, Wonder performed several of his hits, including his opening song, "How Sweet It Is (To Be Loved By You)."

That was followed by "Master Blaster," Michael Jackson's "The Way You Make Me Feel," and Wonder's own "Higher Ground."

The 62-year-old Rock and Roll Hall of Fame member headlined the event outdoor event held near the Wyndham Riverfront Hotel on the eve of Sunday's game between the Baltimore Ravens and the San Francisco 49ers.

Thousands packed a tent set up on a parking lot across the street from the hotel to hear Wonder, Clark, R&B artist Janelle Monae and DJ Martin Solveig.

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Concerns About A.D.H.D. Practices and Amphetamine Addiction

Before his addiction, Richard Fee was a popular college class president and aspiring medical student. "You keep giving Adderall to my son, you're going to kill him," said Rick Fee, Richard's father, to one of his son's doctors.

VIRGINIA BEACH — Every morning on her way to work, Kathy Fee holds her breath as she drives past the squat brick building that houses Dominion Psychiatric Associates.

Andrea Mohin/The New York Times

MENTAL HEALTH CLINIC Dominion Psychiatric Associates in Virginia Beach, where Richard Fee was treated by Dr. Waldo M. Ellison. After observing Richard and hearing his complaints about concentration, Dr. Ellison diagnosed attention deficit hyperactivity disorder and prescribed the stimulant Adderall.

It was there that her son, Richard, visited a doctor and received prescriptions for Adderall, an amphetamine-based medication for attention deficit hyperactivity disorder. It was in the parking lot that she insisted to Richard that he did not have A.D.H.D., not as a child and not now as a 24-year-old college graduate, and that he was getting dangerously addicted to the medication. It was inside the building that her husband, Rick, implored Richard’s doctor to stop prescribing him Adderall, warning, “You’re going to kill him.”

It was where, after becoming violently delusional and spending a week in a psychiatric hospital in 2011, Richard met with his doctor and received prescriptions for 90 more days of Adderall. He hanged himself in his bedroom closet two weeks after they expired.

The story of Richard Fee, an athletic, personable college class president and aspiring medical student, highlights widespread failings in the system through which five million Americans take medication for A.D.H.D., doctors and other experts said.

Medications like Adderall can markedly improve the lives of children and others with the disorder. But the tunnel-like focus the medicines provide has led growing numbers of teenagers and young adults to fake symptoms to obtain steady prescriptions for highly addictive medications that carry serious psychological dangers. These efforts are facilitated by a segment of doctors who skip established diagnostic procedures, renew prescriptions reflexively and spend too little time with patients to accurately monitor side effects.

Richard Fee’s experience included it all. Conversations with friends and family members and a review of detailed medical records depict an intelligent and articulate young man lying to doctor after doctor, physicians issuing hasty diagnoses, and psychiatrists continuing to prescribe medication — even increasing dosages — despite evidence of his growing addiction and psychiatric breakdown.

Very few people who misuse stimulants devolve into psychotic or suicidal addicts. But even one of Richard’s own physicians, Dr. Charles Parker, characterized his case as a virtual textbook for ways that A.D.H.D. practices can fail patients, particularly young adults. “We have a significant travesty being done in this country with how the diagnosis is being made and the meds are being administered,” said Dr. Parker, a psychiatrist in Virginia Beach. “I think it’s an abnegation of trust. The public needs to say this is totally unacceptable and walk out.”

Young adults are by far the fastest-growing segment of people taking A.D.H.D medications. Nearly 14 million monthly prescriptions for the condition were written for Americans ages 20 to 39 in 2011, two and a half times the 5.6 million just four years before, according to the data company I.M.S. Health. While this rise is generally attributed to the maturing of adolescents who have A.D.H.D. into young adults — combined with a greater recognition of adult A.D.H.D. in general — many experts caution that savvy college graduates, freed of parental oversight, can legally and easily obtain stimulant prescriptions from obliging doctors.

“Any step along the way, someone could have helped him — they were just handing out drugs,” said Richard’s father. Emphasizing that he had no intention of bringing legal action against any of the doctors involved, Mr. Fee said: “People have to know that kids are out there getting these drugs and getting addicted to them. And doctors are helping them do it.”

“...when he was in elementary school he fidgeted, daydreamed and got A’s. he has been an A-B student until mid college when he became scattered and he wandered while reading He never had to study. Presently without medication, his mind thinks most of the time, he procrastinated, he multitasks not finishing in a timely manner.”

Dr. Waldo M. Ellison

Richard Fee initial evaluation

Feb. 5, 2010

Richard began acting strangely soon after moving back home in late 2009, his parents said. He stayed up for days at a time, went from gregarious to grumpy and back, and scrawled compulsively in notebooks. His father, while trying to add Richard to his health insurance policy, learned that he was taking Vyvanse for A.D.H.D.

Richard explained to him that he had been having trouble concentrating while studying for medical school entrance exams the previous year and that he had seen a doctor and received a diagnosis. His father reacted with surprise. Richard had never shown any A.D.H.D. symptoms his entire life, from nursery school through high school, when he was awarded a full academic scholarship to Greensboro College in North Carolina. Mr. Fee also expressed concerns about the safety of his son’s taking daily amphetamines for a condition he might not have.

“The doctor wouldn’t give me anything that’s bad for me,” Mr. Fee recalled his son saying that day. “I’m not buying it on the street corner.”

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Love, money and the online dating industry

At the heart of the new book "Love in the Time of Algorithms" is a philosophical question: does the billion-dollar dating industry, whose currency is the perpetual promise of new relationships, signal the death of commitment?

It is the question posed to Sam Yagan, chief executive of free dating website OkCupid, by the book's author, Dan Slater. "That's really a point about market liquidity," replies Yagan, a graduate of Harvard University and Stanford Business School, and a self-confessed "math guy" who says he knows nothing about dating.

Justin Parfitt, a British dating entrepreneur, answers the question more bluntly. The industry is thinking: Let's keep this customer coming back to the site as often as we can, he said, "and let's not worry about whether he's successful. There's this massive tension between what would actually work for you, the user, and what works for us, the shareholders. It's amazing, when you think about it. In what other industry is a happy customer bad for business?"

These responses represent the dissonance between the romantic ideal of love held by many customers and the approach of the entrepreneurial nerds who set up the match­making sites. The disparity is well drawn in this lively book by Slater, a former legal affairs reporter for the Wall Street Journal, who had racked up quite a few of his own cyber dates by age 31, following the demise of a long-term relationship.

A book on the dating industry would be soulless without tales of the customers — the cyber daters. Published by Current, "Love in the Time of Algorithms: What Technology Does to Meeting and Mating" is strewn with stories of blossoming romances, bed-hoppers and borderline sociopaths.

There is Carrie, a single mom in New York, who clicks the box for "full figured," saying that while she is bigger than Kim Kardashian, she is not as big as "big and beautiful." (In the search for love, these things matter.) After several false starts with men who find the "kid thing" a sticking point, Carrie meets her match in a Puerto Rican computer technician who's an atheist.

There is also Jacob in Oregon, who knows he can afford to take things slow with the pharmacist because he can always have sex with another online date. Or, as he likes to think of it: "There's always a pepperoni pizza in the trunk."

The writer delves into his own personal history — his parents met in the 1960s through a pioneering computer dating service. His father's comments, that "these days they're all over the Internet. I think they're mostly for desperate people, though," indicate the stigma that has dogged the industry.

Slater's account of the history of the cyber dating industry — from huge clunky old computers to modern complex computer algorithms — is well detailed. And he brings out the fierce rivalry between free and paid-for sites and the new possibilities for finding a date across the street using smartphones and innovative "freemium" sites.

The stated aim of this book is how online dating is "remaking the landscape of modern relationships," which is an ambitious goal for 240 pages. The sweep is huge: Nigerian scammers preying on the lonely; paunchy middle-aged men trafficking poor young South American and Russian women; math geeks competing for a share of the love market; and adult babies seeking matronly diaper-changers.

The author also brandishes so many ideas — a bit of behavioral economics here, a bit of biological determinism there — that it is hard to focus when so much is competing for the reader's attention. It is a dizzying attempt to demonstrate the author's mastery of the zeitgeist.

In the final chapter, Slater writes that he has tried to avoid "passing judgment on all the many behaviors, new and old, facilitated by the date-o-sphere". Yet this well-reported romp through the digital love marketplace would have benefited from a slightly more domineering author.

Emma Jacobs is a columnist for the Financial Times of London, in which this review first appeared.

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