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VOL. CLXVII ... No. 57,979 © 2018 The New York Times Company NEW YORK, THURSDAY, MAY 31, 2018 $3.00 Pentagon Deal BIG BANKS IN LINE Creates Schism FOR LOOSER CURBS Within Google ON RISKY TRADES Identity Crisis Over Use of Tech by Military RELAXING VOLCKER RULE

This article is by Scott Shane, Cade Metz and Daisuke Wak- Regulators Move to Ease abayashi. Limits Imposed After WASHINGTON — Fei-Fei Li is among the brightest stars in the 2008 Meltdown burgeoning field of artificial intel- ligence, somehow managing to hold down two demanding jobs si- By EMILY FLITTER multaneously: head of Stanford and ALAN RAPPEPORT University’s A.I. lab and chief sci- Big banks are getting a big re- entist for A.I. at Google Cloud, one prieve from a postcrisis rule of the search giant’s most promis- aimed at curbing risky behavior ing enterprises. on Wall Street. Yet last September, when ner- Federal bank regulators on vous company officials discussed Wednesday unveiled a sweeping how to speak publicly about proposal to soften the Volcker Google’s first major A.I. contract Rule, a cornerstone of the 2010 law with the Pentagon, Dr. Li strongly that was enacted after the finan- advised shunning those two po- cial crisis to rein in risky trading. tent letters. The change would give Wall “Avoid at ALL COSTS any men- Street banks more freedom to tion or implication of AI,” she make their own complex bets — wrote in an email to colleagues re- DOUG MILLS/THE NEW YORK TIMES activities that can be highly prof- viewed by The New York Times. itable but also leave them more “Weaponized AI is probably one of South Lawn Dash vulnerable to losses. the most sensitized topics of AI — President Trump, with Ivanka Trump and Mariano Rivera behind him, oversaw the White House Sports and Fitness Day. The rule, part of the broader if not THE most. This is red meat Dodd-Frank law, was put in place to the media to find all ways to to prevent banks from making un- damage Google.” safe bets with depositors’ money. Dr. Li’s concern about the impli- It took five agencies three years to cations of military contracts for After His Murder, a Twist Was Revealed. By Him. A Racist Post, write it and has been criticized by Google has proved prescient. The Wall Street as too onerous and company’s relationship with the had called to discuss his “murder.” A TV Apology, harmful to the proper functioning Defense Department since it won By NEIL MacFARQUHAR Reporter Part of Sting in “First of all, I would like to apol- of financial markets. On Wednes- a share of the contract for the Ma- ogize that all of you had to live MOSCOW — The assassination day, the Federal Reserve pro- ven program, which uses artificial through this, because I know the A Trump Gripe posed easing several parts of the bore all the hallmarks of yet an- Russia-Ukraine Feud intelligence to interpret video im- horrible feeling when you have to rule, and four other regulators are other contract killing carried out ages and could be used to improve bury your colleagues,” Mr. expected to soon follow suit, kick- in the murky shadows of the con- the targeting of drone strikes, has Babchenko told stunned reporters By KATIE ROGERS ing off a public comment period flict pitting Russia against touched off an existential crisis, tiple gunshot wounds to the back, after the gasps died down. “Sepa- and EMILY COCHRANE that is expected to last 60 days. according to emails and docu- Ukraine. said the police in Kiev, Ukraine’s rately, I want to apologize to my WASHINGTON — It was not The loosening of the Volcker ments reviewed by The Times as A photo of the victim, a dissi- capital. wife for all the hell she had to go the racist comment that made the Rule is part of a coordinated effort well as interviews with about a dent Russian journalist, showed Then on Wednesday, the jour- through.” president angry. It was the apol- underway in Washington to relax dozen current and former Google him lying face down Tuesday in a nalist, Arkady Babchenko, to all The staged death, said Vasily S. ogy from ABC. rules put into place in the wake of employees. vermilion pool of his own blood. appearances very much alive, Gritsak, the head of the Ukraine Wading into a public outcry the 2008 financial crisis. Big It has fractured Google’s work He was found by his wife, and died walked into a news conference Security Service, was a sting op- banks, emboldened by President over remarks by the comedian force, fueled heated staff meet- on the way to a hospital from mul- that Ukrainian security officials Continued on Page A10 Trump’s deregulatory agenda and Roseanne Barr, President Trump ings and internal exchanges, and a more favorable political climate did not condemn the Twitter post prompted some employees to re- in Washington, have begun press- about a black former aide to Presi- sign. The dispute has caused grief ing for changes to several post- dent Barack Obama that led to the for some senior Google officials, crisis rules, including the Volcker including Dr. Li, as they try to swift cancellation of Ms. Barr’s Rule. ABC sitcom. Instead, he ex- straddle the gap between scien- Last week, Mr. Trump signed tists with deep moral objections pressed his own grievances on into law a bipartisan bill that will and salespeople salivating over Wednesday with what the net- free thousands of small and medi- defense contracts. work’s on-air personalities have um-size banks from the Dodd- The advertising model behind said about him, and insisted he Frank law, and on May 21, he Google’s spectacular growth has was the one who deserved an signed a law rescinding a con- provoked criticism that it invades apology. sumer rule aimed at preventing web users’ privacy and supports Specifically, the president discrimination by auto lenders. dubious websites, including those called out Robert A. Iger, the The Fed and the Office of the peddling false news. Now the chairman of Disney, the parent Comptroller of the Currency re- company’s path to future growth, company of ABC, who had phoned cently proposed easing limits on via cloud-computing services, has the former Obama aide, Valerie how much the largest banks can divided the company over its Jarrett, on Tuesday to apologize borrow and the Fed also proposed stand on weaponry. To proceed for Ms. Barr’s language. The pres- changes to the stress tests that with big defense contracts could ident, referring to himself in the banks must undergo each year to drive away brainy experts in arti- third person, complained on Twit- determine whether they can with- ficial intelligence; to reject such ter that Mr. Iger had “never called stand an economic downturn. work would deprive it of a poten- President Donald J. Trump to Mr. Trump’s acting director of tially huge business. apologize for the HORRIBLE the Consumer Financial Protec- The internal debate over Ma- statements made and said about tion Bureau, Mick Mulvaney, has ven, viewed by both supporters me on ABC.” also engaged in a rapid series of and opponents as opening the His response was not a total regulatory changes since Novem- door to much bigger defense con- WIQAN ANG FOR THE NEW YORK TIMES surprise. Mr. Trump has reacted ber, including halting new investi- tracts, generated a petition signed to other divisive events not by is- gations, freezing new hires and by about 4,000 employees who de- A Bottleneck for American Recycling suing statements of unity or moral preventing the agency from col- Continued on Page A15 Recyclables are being dumped in landfills after China stopped taking in “foreign garbage.” Page B1. Continued on Page A19 Continued on Page A15

U.S.-Backed Offensive in Syria An Epidemic of School Massacres Traces Its Roots to Columbine Fights ISIS Remnants, and Time This article is by Manny Fernan- dez, Julie Turkewitz and Jess Bid- By ERIC SCHMITT good. SANTA FE, Tex. — The exact WASHINGTON — An Ameri- threat that is quickly moving un- reasons a teenage gunman shot can-backed ground offensive to derground. his fellow students and teachers wipe out the last pockets of Is- The new momentum remains here at Santa Fe High School re- lamic State fighters in eastern imperiled by President Trump’s main a mystery. His model for car- Syria has been reignited over the on-again, off-again threat to with- rying it out is more clear. past month in an attempt to beat draw some 2,000 American troops The 17-year-old junior wore a back the militants’ ability to wage in Syria, including hundreds of black trench coat and fired a guerrilla attacks. Special Operations advisers and sawed-off shotgun, the same at- The mission against the Islamic commandos. tire and weaponry used by the two State has been invigorated by the A force of allied Kurds and Ar- gunmen who killed a dozen stu- CHIP SOMODEVILLA/GETTY IMAGES return of top Kurdish command- abs in Syria’s east has served as dents and a teacher at Columbine ers, a surge in French comman- the United States’ most effective High School in Colorado in 1999. IN 2007 Media swarmed the Virginia Tech campus in Blacksburg, Va., for weeks after a shooting. dos, the arrival of Navy fighter battleground ally against the Is- He wore a T-shirt with the jets and some secret sleuthing by lamic State, also known as ISIS. phrase “Born to Kill” on it in bold, isters of carbon-dioxide gas and small red-star medallion with the school suddenly engulfed in gun- Iraqi spies. But a spate of Turkish attacks last similar in design to those worn by Molotov cocktails, two types of ex- Communist hammer-and-sickle fire and death found itself looking But the campaign may have lit- winter against other Kurds, in the Columbine attackers, which plosives used by the Columbine on the collar, the same type of but- for clues in the random symbol- tle more than six months to hunt northwest Syria, prompted the read “Wrath” and “Natural Selec- gunmen. ton a Columbine gunman attached ogy of a nearly 20-year-old mass down the few hundred fighters — Kurdish fighters to peel away tion.” The picture he had posted of his to his boot. shooting that has become, it not enough time to extinguish a Continued on Page A6 His crude arsenal included can- trench coat on Facebook showed a It was not the first time a high Continued on Page A14

NATIONAL A12-19 SPORTSTHURSDAY B9-14 Catching ICE’s Eye at School Flawed Case Ends N.F.L. Run Get-tough discipline policies by the Keith Mumphery was twice cleared of a Education Department are making charge of sexual assault while at Michi- undocumented students vulnerable to gan State. A third hearing, which hap- deportation. PAGE A12 pened without his knowledge, derailed his life. Sports of The Times. PAGE B9 INTERNATIONAL A4-11 New Details on Comey Firing ARTS C1-8 THURSDAY STYLES D1-8 Cavaliers-Warriors, Round 4 Waiting for Rohingya at Sea A memo suggests Rod J. Rosenstein may The Complicated ‘Americans’ Ruling Over Broadway have given the president a cover story Cleveland and Golden State will com- A search-and-rescue boat scoured the for firing James B. Comey. PAGE A16 The finale of the FX series raised ques- pete for a title for a fourth straight year, Pay attention to the director Joe Man- Andaman Sea for Muslims fleeing tions of who deserved sympathy and but getting to the championship round tello, the wizard behind the curtains of persecution in Myanmar. PAGE A10 why, James Poniewozik writes. PAGE C1 “Wicked,” “Three Tall Women” and NEW YORK A20-21, 24 was not as easy as many had expected. An N.B.A. finals preview. PAGE B9 “The Boys in the Band.” PAGE D1 U.S. Tariffs on Allies Loom Giuliani Is Out at Home Earnest, but Not Terribly Ironic The United States is poised to impose When Rudolph W. Giuliani, the former Jesse Green calls “Jagged Little Pill,” a EDITORIAL, OP-ED A22-23 steel and aluminum tariffs on the Euro- mayor, was booed at Yankee Stadium, it musical built on Alanis Morissette pean Union, and maybe others. PAGE A11 revealed a transformed city. PAGE A20 songs, “intermittently thrilling.” PAGE C1 Gail Collins PAGE A23 U(D54G1D)y+$!$![!#!{