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nWells Fargo’s profit rose14% on strength in consumerlending, while J.P. Morgan’sfell 19% as its investmentbank suffered a downturn. A1n Amazon plans to release asmartphone in the secondhalf of this year, part of abroad push into hardware. A1n U.S. stocks suffered steeplosses to close out a roughweek, with the Nasdaq fallinganother 1.3% on Friday. B5n Japanese stocks tumbled2.4%, capping their worstweek in over three years. B5n Some GM executives knewabout ignition-switch prob-lems for nearly three yearsbefore a limited recall in Feb-ruary, documents show. B1n El-Erian, who left bondgiant Pimco earlier this year,said that his approach andGross’s stopped meshing. B1n The FBI and U.S. prosecu-tors in Manhattan are inves-tigating nutritional-supple-ment maker Herbalife. B3n Detroit’s debt deal withBank of America and UBSwas approved by a judge. B2n A pension-overhaulagreement between RhodeIsland officials and public-sector unions collapsed. A2n A court vacated AndrewAuernheimer’s 2012 com-puter-crime conviction. B3

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InsideNOONAN A13

Jeb, theAmbivalent

Bush

Obama’s decision to placeBurwell atop the federal

health agency sets up a freshSenate fight on his signaturedomestic achievement. A4n Israeli soldiers seized aseminary after West Banksettlers attacked a militaryoutpost in retaliation for therazing of illegal buildings. A6n Rand Paul is attemptingto leap from tea-party fire-brand to GOP standard-bearer as he prepares for alikely White House bid. A1n The U.S. and NATO face aquandary in trying to show-case support for Ukraine with-out antagonizing Moscow. A7n The U.S. sanctioned a gascompany and seven Ukrai-nian officials connected withthe annexation of Crimea. A7n The Obama administrationwill deny a visa to Iran’schoice as its next U.N. am-bassador because of his tiesto the 1979 hostage crisis. A6n Ohio is limiting frackingin a small area of the stateafter finding that it may havecaused small earthquakes. A2n Fighting within the Paki-stani Taliban has stalled peacetalks with Islamabad. A6n Australia’s Abbott saidhe was confident that signalsdetected this week were fromFlight 370’s black boxes. A6n Investigators were tryingto determine the cause ofa California truck-bus colli-sion that killed 10 people. A5

Wells Fargo & Co. showedthat lending to consumers andbusinesses can be more lucrativethan being a big name on WallStreet, upstaging J.P. MorganChase & Co. with its first-quar-ter results.

The San Francisco bank re-ported a 14% rise in net income,while J.P. Morgan, based in NewYork and the U.S.’s largest bankby assets, suffered a 19% profitdecline from last year’s firstquarter.

Friday’s earnings reports in-cluded a fall in revenue at bothgiant banks as they struggledwith the prolonged mortgagedownturn. J.P. Morgan also washit by its outsize clout on WallStreet, as trading revenuedropped 17% to $5.1 billion. Thathurt profits in the company’s in-vestment-banking unit, whichslid 24% to $1.98 billion.

In contrast, Wells Fargo,fourth-biggest in assets, bene-fited from its focus as a lenderto consumers and businesses.Total loans at Wells Fargo rose4% and were flat at J.P. Morgan.

“I cannot imagine a greatercontrast between two sets ofquarterly results,” said bankinganalyst Nancy Bush of NAB Re-search LLC. Wells Fargo “contin-ues to show why it is good notto be tied so closely to capitalmarkets.”

Of the six largest U.S. finan-cial institutions, only WellsFargo is expected to post a

PleaseturntopageA5

BY DAN FITZPATRICKAND CHRISTINA REXRODE

FortunesShift forNation’sBanks

When tea-party activists ral-lied last weekend in Kentucky,their home-state hero, Sen. RandPaul, wasn’t invited. The eventfeatured the tea-party candidaterunning for the Senate, while Mr.Paul is backing the incumbent,Sen. Mitch McConnell.

But leaders of FreedomWorks,the conservative group that orga-

nized the rally, still viewMr. Paul asan ally. In February, he joined theirlawsuit over government phonesurveillance. “Thatmakes clear hiswillingness to shake up the politicalestablishment,” said Freedom-Works President Matt Kibbe.

That is just one example of thebalancing act Mr. Paul is attempt-ing as he prepares for a likelyWhite House bid in 2016. Tryingto leap from tea-party firebrand

to GOP standard-bearer, thefreshman senator is courting theparty leaders and fundraiserscrucial to a national campaign,while mostly keeping faith withthe libertarian base that madehim a Republican Party phenom.

A test comes on April 25,when Spencer Zwick, the na-tional finance chairman for MittRomney’s presidential cam-paigns, is slated to introduce top

donors in Boston to Mr. Paul.While some fundraisers say Mr.Paul’s resistance to the use ofmilitary force abroad disqualifieshim from leading the GOP, othersare intrigued by his efforts togrow the party by reaching outto young and minority audiences.

Support from donors whobacked Mr. Romney, a defensehawk, would provide more evi-

PleaseturntopageA4

BY BETH REINHARD

Tea-Party Favorite Paul AimsToWoo Republican Stalwarts

The women’s health-care community got a shockto the system in December, when leading U.S. hospi-tals abruptly began acknowledging that a commonlyused surgical tool risked killing some women.

The tool, used since the 1990s in many hysterecto-mies, can stir up aggressive cancers, they said.Brigham and Women’s Hospital, Temple UniversityHospital and others quickly altered their proceduresfor the tool’s use. The Food and Drug Administrationhas begun a probe of its risks.

Yet there were hints of the tool’s potentially fatalflaw going back to its early years. Doctors use thedevice, called a power morcellator, through tiny inci-sions to cut into, or “morcellate,” the uterus and re-

move it. The procedure is popular because it allowsspeedier recovery than open surgery and is easier toperform than many alternatives.

Doctors who trained others on some early morcel-lators, including one named “Diva,” noticed in thelate 1990s that they sometimes left behind tissuefragments. Data as early as 2003 suggested that, ifthose bits were malignant, they could seed rapid can-cer growth. Although somemorcellator makers havelong recommended containing risky tissue in a surgi-cal bag—standard practice in many specialties—gy-necologists rarely used bags, considering the risk toolow and their use too cumbersome.

“I don’t think there is an acceptable safe morcella-tor” without systems to contain tissue, said Bobbie

PleaseturntopageA10

BY JENNIFER LEVITZ AND JON KAMP

HYSTERECTOMY WORRY

Doctors Discounted Early HintsOf Popular Procedure’s Risks

Amazon.com Inc. is preparingto release a smartphone in thesecond half of this year, accord-ing to people briefed on the com-pany’s plans, part of a broadpush into hardware that wouldpit it against Apple Inc. andSamsung Electronics Co.

The retailer has been demon-strating versions of the handsetto developers in San Franciscoand its hometown Seattle in re-cent weeks, these people said.People briefed on the company’splans have been told that Ama-zon aims to announce the phoneby the end of June and beginshipping phones by the end ofSeptember, ahead of the holidayshopping season.

The people said Amazonhopes to distinguish its phone ina crowded market with a screen

Pleaseturntothenextpage

BY GREG BENSINGERAND EVELYN RUSLI

Kindle Phone?Amazon SetTo ReleaseOwn Handset

Brazilian Riot Police Face Off Against Squatters in Rio

EVICTION NOTICE: Squatters occupying an abandoned building in Rio de Janeiro argue with riot police, above, sent to evict them from a telecomcompany property. Security forces evicted thousands from the area on Friday, prompting squatters to hurl stones and set fire to vehicles. A9

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Images

RIYADH, Saudi Arabia—Abdul-aziz al Qahtani, an 18-year-oldSaudi university student, closedhis bedroom door and in the pri-vacy of his own room began. Side-kick-sidekick. Sidekick-sidekick.

Bunny-hop for-ward. Bunny-hop back.

His mother’s voicerang out through thewalls.

“I know whatyou’re doing in there!”she cried, in an epi-sode Mr. Qahtani re-counted two weekslater. “Cut it out!”

Mr. Qahtani’smother had warned him about thepenguin dance, a perky conga-lineof bounces and kicks that landedin Saudi Arabia from out of no-where late last year. It has beensweeping this most traditional,un-bouncy penguin of kingdoms

ever since.In a land where a strict inter-

pretation of Islamic law meansmovie theaters and many otherdiversions are banned, nightclubsare unthinkable and the weight oftribal custom is heavy, Saudis inlarge numbers are discovering

the thrill of a littles idekick-s idekickbunny-hop.

“Last night Iswayed, I chanted, Ipenguin danced,” aSaudi girl wrote onTwitter. In a Riyadhshopping mall, 26-year-old NourhanAshraf, an Egyptianwho has spent her life

in Saudi Arabia, beamed whenasked about the dance. She pulledher cellphone from her purse.“The penguin dance? We’ve got iton our ringtone!”

“Penguin dance,” or “raqsat al-PleaseturntopageA10

BY ELLEN KNICKMEYER

In the Sands of the Arabian Desert,The Penguin Dances

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Whether in Private or at Public Celebrations,Saudis Cut a Rug to a Terpsichorean Fad

E-TROVE: The Vatican is working to digitize millions of pages of pricelessmanuscripts from its library, such as the Botticelli illustration above ofDante’s ‘Divine Comedy,’ which it plans to make available online. A8

Biblioteca

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Pope’s Library Goes Digital

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