Fed adds another $45B per month in stimulus









The Federal Reserve ramped up its stimulus to the economy on Wednesday, expressing disappointment with the pace of recovery in employment as contentious U.S. budget talks heighten uncertainty about the outlook.

The central bank replaced a more modest stimulus program due to expire at year-end with a fresh round of Treasury purchases that will increase its balance sheet. It committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September.

In a surprise move, the Fed also adopted numerical thresholds for policy, a step that had not been expected until early next year. In particular, the Fed said it will likely keep official rates near zero for as long as unemployment remains above 6.5 percent, inflation between one and two years ahead is projected to be no more than 2.5 percent, and long-term inflation expectations remain contained.

The Fed noted unemployment remains elevated and that inflation is running somewhat below policymakers' 2 percent objective.

"The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions," the Fed said in a statement.

Policymakers also repeated a pledge to keep buying bonds until the labor market outlook improves substantially. A drop in the jobless rate to 7.7 percent in November from 7.9 percent in October was driven by workers exiting the labor force, and therefore did not come close to satisfying that condition.

Under the "Operation Twist" program that will expire at the end of the month, the Fed was buying $45 billion in longer-term Treasuries with proceeds from the sale of short-term debt. The new round of government bond-buying it announced on Wednesday will be funded by essentially creating new money, further expanding the Fed's $2.8 trillion balance sheet.

Fed Chairman Ben Bernanke will discuss the central bank's latest decision at a news conference at 2:15 p.m. (1915 GMT).

SWEATING A WEAK RECOVERY

The Fed cut overnight interest rates to near zero in December 2008 and has bought about $2.4 trillion in bonds in a further effort to push borrowing costs lower and spur a stronger recovery.

Despite the unconventional and aggressive efforts, U.S. economic growth remains tepid. GDP grew at a 2.7 percent annual rate in the third quarter, but it now appears to be slowing sharply. According to a Reuters poll published on Wednesday, economists expect the economy to expand at just a 1.2 percent pace in the current quarter.

Businesses have hunkered down, fearful of a tightening of fiscal policy as politicians in Washington wrangle over ways to avoid a $600 billion mix of spending reductions and expiring tax cuts set to take hold at the start of 2013.

Bernanke has warned that running over this "fiscal cliff" would lead the economy into a new recession.

Fed officials will release a new set of quarterly economic and interest rate projections at 2 p.m. (1900 GMT) that could show yet another round of downward revisions to future growth prospects.

Back in September, the Fed predicted the U.S. economy would expand 2.5 percent to 3 percent in 2013, but even that modest rate is looking potentially rosy. The Reuters poll showed a median U.S. growth estimate of 2.1 percent for next year on the same fourth quarter over fourth quarter basis.

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Court strikes down Illinois' concealed-carry weapons ban

Chicago Tribune reporter Ray Long provides details on the U.S. appeals court ruling regarding concealed weapons in Illinois.









The state of Illinois would have to allow ordinary citizens to carry weapons under a federal appeals court ruling issued today, but the judges also gave lawmakers 180 days to put their own version of the law in place.

In a 2-1 decision that is a major victory for the National Rifle Association, the U.S. Seventh Circuit Court of Appeals said the state's ban on carrying a weapon in public is unconstitutional.

"We are disinclined to engage in another round of historical analysis to determine whether eighteenth-century America understood the Second Amendment to include a right to bear guns outside the home. The Supreme Court has decided that the amendment confers a right to bear arms for self-defense, which is as important outside the home as inside," the judges ruled.

"The theoretical and empirical evidence (which overall is inconclusive) is consistent with concluding that a right to carry firearms in public may promote self-defense. Illinois had to provide us with more than merely a rational basis for believing that its uniquely sweeping ban is justified by an increase in public safety. It has failed to meet this burden.

"The Supreme Court’s interpretation of the Second Amendment compelled the appeals court to rule the ban unconstitutional, the judges said. But the court gave 180 days to "allow the Illinois legislature to craft a new gun law that will impose reasonable limitations, consistent with the public safety and the Second Amendment as interpreted in this opinion, on the carrying of guns in public."


David Sigale, an attorney who represented the Second Amendment Foundation in the lawsuit, called the decision by the appeals court in Chicago “historic.”


“What we are most pleased about is how the court has recognized that the Second Amendment is just as, if not at times more, important in public as it is in the home,” he said. “The right of self-defense doesn’t end at your front door.”








In the opinion, Posner wrote that “a Chicagoan is a good deal more likely to be attacked on a sidewalk in a rough neighborhood than in his apartment on the 35th floor of the Park Tower.”


Illinois Attorney General Lisa Madigan, a Democrat, is giving itself time to examine the ruling before deciding whether to appeal to the U.S. Supreme Court.


"The court gave 180 days before its decision will be returned to the lower court to be implemented,” said Natalie Bauer, Madigan’s spokeswoman. “That time period allows our office to review what legal steps can be taken and enables the legislature to consider whether it wants to take action." 


Illinois is the only state in the nation not to have some form of conceal carry after Wisconsin recently approved law.

"The (Illinois) legislature, in the new session, will be forced to take up a statewide carry law," said NRA lobbyist Todd Vandermyde.

The lobbyist said prior attempts to reach a middle ground with opponents will no longer be necessary because "those compromises are going out the window."


House Majority Leader Barbara Flynn Currie, a longtime gun control advocate, said she hoped the state would appeal the ruling. But Currie also said lawmakers must “get cracking” on how to respond to the ruling and begin parsing its key points.


Currie, D-Chicago, said that “justices surely do not mean that we would have to have wide-open” laws in Illinois. She said Illinois must now look at what other states are doing, such as disallowing guns in day-care centers and other locations.


“If we need to change the law, let us at least craft a law that is very severely constrained and narrowly tailored so that we don’t invite guns out of control on each of our city’s streets,” Currie said. “I don’t want people out of control wandering the streets with guns that are out of control.”


Rep. Brandon Phelps, who has repeatedly sponsored concealed weapons legislation, hailed the measure as a “mandate."


“The justices more or less said Illinois has a mandate to get something passed within 180 days… to pass a concealed-carry law in the state of Illinois,” said Phelps, a Democrat from Downstate Harrisburg.


“I never thought we’d get a victory of that magnitude,” Phelps said.


Phelps fought unsuccessfully in the House to pass concealed weapons legislation with a long set of restrictions, but he warned opponents of his legislation may regret they had not supported it when they had a chance. Now, he said, he “can’t see us” going forward with legislation that has as many restrictions as the bill that failed.


The prior bill largely limited carrying weapons to when a person was in a car, walking into a house and out on a sidewalk, and it specifically disallowed guns to be carried in churches, schools, gymnasiums, sporting events, bars and businesses, Phelps said.


He said no decision has been made on which restrictions in his previous legislation would be removed in a new bill.


Phelps warned that gun control groups who might want to appeal the issue to the U.S. Supreme Court might put strict laws in other states in jeopardy. He said he would consult with the National Rifle Association and the Illinois State Rifle Association.


A spokeswoman for Gov. Pat Quinn said the administration is reviewing the decision. The governor has previously said he was firmly opposed to any law allowing citizens to carry loaded guns in public. He threatened to veto previous attempts by lawmakers to pass legislation allowing concealed carry in Illinois.


A spokeswoman for Mayor Rahm Emanuel said city lawyers were reading the court ruling and would issue a comment this afternoon.


Last March, the mayor introduced a resolution passed by the City Council in opposition to state legislation that would have allowed people to carry firearms in public. Like former Mayor Richard Daley before him, Emanuel has long been a proponent of gun control.


Under Daley, the U.S. Supreme Court overturned Chicago’s handgun ban. In mid-2010, the council enacted new gun-control measures, even as many aldermen conceded it would do little to quell crime. Those regulations require that Chicago handgun owners obtain a permit after undergoing mandatory firearms training and register their weapons.


Reaction to the decision is rolling in from City Hall to the Capitol.


Ald. Howard Brookins, 21st, chairman of the City Council black caucus, welcomed the decision, saying allowing Chicagoans to carry concealed weapons would help level the playing field in neighborhoods where law-abiding citizens feel like they need firearms to protect themselves.


"Certain people will have a sense of safety and peace of mind in the ability to do it," Brookins said of conceal-carry. "I know that even people, for example, just trying to see that their loved ones get homes safely are in technical violation of all sorts of weapons violations. If you just walk out to your garage and see that your wife is coming in the house safely, and you happen to have your gun on you, you're in technical violation of our ordinance. So I would hope all these ordinances would be consolidated so there's one set of rules and people would know where the bright line is to what they can and cannot do with respect to carrying a weapon."


Brookins said he's not worried doing away with the state ban would lead to an increase in gun violence as more people walk the streets with weapons. "I think those people have a gun now, they've just been made criminals because they can't legally have it," Brookins said. "And I think the gangbangers and thugs are going to have a gun regardless."


Tribune reporters John Byrne and Hal Dardick contributed.

rlong@tribune.com
Twitter @RayLong


asweeney@tribune.com


mcgarcia@tribune.com





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Yahoo CEO Mayer unveils overhaul of email service


SAN FRANCISCO (Reuters) - Yahoo Inc rolled out new versions of its popular Web email on Tuesday, the first major product makeover since Chief Executive Marissa Mayer took the helm of the struggling Internet company five months ago.


Yahoo released new versions of its Yahoo Mail product for smartphones and tablets - in keeping with Mayer's focus on mobile devices - and a revamped version of its Web-based mail product for PC users that cuts out ancillary features and that the company said delivers faster performance.


"You've told us loud and clear that you want fewer distractions when it comes to email. You want to quickly login, communicate, and get on with your day," Mayer said in a post on Yahoo's official blog on Tuesday.


Yahoo is the No. 1 Web email product in the United States and No. 3 worldwide, behind Google Inc's Gmail and Microsoft Corp's Hotmail, according to comScore.


But the number of unique users of Yahoo email declined 16 percent in November from a year earlier in the United States and 7 percent worldwide in October, according to comScore. Gmail's unique users increased 25 percent in the U.S. in November and 20 percent worldwide in October.


Analysts say Yahoo's email decline also owes partly to the broader trend of younger Internet users who prefer to communicate with text messages rather than email.


Mayer, 37, is moving to revitalize Yahoo's various Web products and reverse years of declining revenue. A former Google executive, Mayer is widely admired in Silicon Valley for her Web product savvy, though some analysts and investors have expressed caution, noting that Mayer has never before led an entire company as CEO.


She has said her top priority is to create a coherent mobile strategy for Yahoo and that she intends for at least half of the company's technical workforce to be working on mobile products.


As part of Tuesday's announcement, Yahoo unveiled an update to its mobile email app for smartphones based on the Android operating system, as well as Yahoo's first stand-alone app for Apple's iPhone.


Yahoo also released a version designed for tablets and PCs based on Microsoft's new Windows 8 operating system.


Vivek Sharma, General Manager of Yahoo Mail & Messenger, said the group of new mobile apps was part of Yahoo's goal of ensuring that its products are available across all major mobile platforms -- a move that he said should help Yahoo's email stay popular with the younger generation of users.


"Most of the new users, especially young ones, are using mobile Internet devices. So the first order of things is to make sure there are native experiences for them," said Sharma referring to mobile apps that are specially designed for smartphones.


FEWER ADS


The new PC version of Yahoo Mail features fewer ads, primarily by doing away with pass-through Web pages that users previously encountered before they could access their inbox and which appeared after a user sent an email.


Eliminating those pages, and improvements to the way Yahoo displays its email Web pages, means that users can now reach their inboxes 40 percent faster, Sharma told Reuters in an interview on Tuesday.


Yahoo's email product is an important piece of Yahoo's overall online business, serving as a conduit to bring in users which Yahoo then tries to redirect to its other websites, such as news articles, stock quotes and videos.


By simplifying the product's look, Yahoo could increase the amount of time that users spend visiting its online properties, said RBC Capital Markets analyst Andre Sequin.


"A website can be incredibly useful, but if a user interface is annoying or has too many flashing ads, it can drive a person away," said Sequin.


He compared Yahoo's email revamp to one of the key accomplishments that Mayer is credited with at Google: the sparse homepage, which is free of ads and prominently features a search engine box surrounded by white space.


"Improve the experience on mail and there's a good chance you can get people to stay engaged with Yahoo properties for a long time," said Sequin.


Shares of Yahoo were up 11 cents to $19.54 in midday trading on Tuesday.


Yahoo's stock has risen 25 percent since Mayer became CEO in July, reaching its highest level since September 2008 when Yahoo co-founder Jerry Yang was CEO.


The years between Yang and Mayer were tumultuous ones at Yahoo, as the Web pioneer cycled through four different chief executives and a variety of strategies.


Yahoo ranks among the world's most popular websites, with roughly 700 million monthly visitors. But revenue has eroded due to competition from Google and Facebook and changes in the online advertising market that have compressed prices for the online display ads that are key to Yahoo's business.


Many analysts and tech-industry observers say Yahoo's online products have failed to keep up with rivals when it comes to integrating innovative mobile and social media features.


(Reporting by Alexei Oreskovic in San Francisco and Jennifer Saba in New York Sayantani Ghosh in Bangalore; Editing by Joyjeet Das, David Gregorio and Bernard Orr)



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Tagliabue overturns Saints suspensions


NEW ORLEANS (AP) — Former NFL Commissioner Paul Tagliabue overturned the suspensions of four current and former New Orleans Saints players in the league's bounty investigation of the club.


Tagliabue, however, found that three of the players engaged in conduct detrimental to the league. He said they participated in a performance pool that rewarded key plays — including hard tackles — that could merit fines. But he stressed that the team's coaches were very much involved.


"Unlike Saints' broad organizational misconduct, player appeals involve sharply focused issues of alleged individual player misconduct in several different aspects," said a portion of ruling released by the NFL. "My affirmation of Commissioner Goodell's findings could certainly justify the issuance of fines. However, this entire case has been contaminated by the coaches and others in the Saints' organization."


Tagliabue was appointed by his successor, Commissioner Roger Goodell, to handle a second round of player appeals to the league in connection with the Saints' cash-for-hits program run by former defensive coordinator Gregg Williams from 2009-2011. The players initially opposed his appointment.


Saints linebacker Jonathan Vilma had been given a full-season suspension, while defensive end Will Smith, Cleveland linebacker Scott Fujita and free agent defensive lineman Anthony Hargrove each received shorter suspensions.


Fujita was the only player cleared of conduct detrimental to the league by Tagliabue.


None of the players sat out any games because of suspensions. They have been allowed to play while appeals are pending, though Fujita is on injured reserve and Hargrove is not with a team.


Shortly before the regular season, the initial suspensions were thrown out by an appeals panel created by the league's collective bargaining agreement. Goodell then reissued them, with some changes, and now those have been dismissed.


Meanwhile, the players have challenged the NFL's handling of the entire process in federal court, but U.S District Judge Ginger Berrigan had been waiting to see how the latest round of appeals played out before deciding whether to get involved.


With the player suspensions overturned, the end of a nearly 10-month dispute over how the NFL handled an investigation that covered three seasons and gathered about 50,000 pages of documents could be near.


NFL investigators found that Vilma and Smith were ring-leaders of a cash-for-hits program that rewarded injurious tackles labeled as "cart-offs" and "knockouts." The NFL also concluded that Hargrove lied to NFL investigators to help cover up the program.


Goodell also suspended Williams indefinitely, while banning Saints head coach Sean Payton for a full season.


Tagliabue's ruling comes after a new round of hearings that for the first time allowed Vilma's attorneys and the NFL Players Association, which represents the other three players, to cross-examine key NFL witnesses in the probe. Those witnesses included Williams and former Saints assistant Mike Cerullo, who was fired after the 2009 season and whose email to the league, accusing the Saints of being "a dirty organization," jump-started the probe.


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Surprise: New insurance fee in health overhaul law


WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.


The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.


Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.


"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.


Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.


The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.


Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.


The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.


Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.


The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.


But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.


"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.


Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.


America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.


But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.


"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.


The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.


The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.


It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.


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Vindication for 2013 Rock Hall of Fame inductees


Randy Newman's glad he didn't have to do anything drastic to get into the Rock and Roll Hall of Fame. The members of Rush are choosing to let bygones be bygones. And Quincy Jones, well, he's still mad.


For most of this year's inductees, inclusion was a long time coming.


"I'm very happy," the 69-year-old Newman said Monday from his home in Los Angeles. "I thought I'd have to die first, but I'm glad I'm around to see it."


Newman is joined in the 2013 class by the eclectic group of rockers Rush and Heart, rap group Public Enemy, "Queen of Disco" Donna Summer and bluesman Albert King. Jones and his friend Lou Adler will enter the hall as Ahmet Ertegun Award winners for their contributions to rock beyond performance.


They will be inducted into the hall of fame April 18 in Los Angeles. The ceremony will mark the end of a long wait for fans of five of those six acts, who've been eligible for entry for some time. Public Enemy was inducted on its first ballot appearance, swelling the ranks of hip-hop entries.


In many ways, the 2013 class balances the scales, though not nearly soon enough for some new members.


"Well, it's about time, man," Jones said late Monday night in an interview from his home in Los Angeles. "But I promise you I'm not sitting around worrying about it."


Summer, who passed away at age 63 in May, gains entry after six years as a nominee. King, a deep influence on Jimi Hendrix and Stevie Ray Vaughn who died in 1992, now takes his place along all the other legendary blues guitarists in the hall.


Rush, one of the most-played staples of classic rock radio, gained entry following its first appearance on the ballot. But the Canadian trio became eligible in 1998 and was repeatedly left off the list, to the great consternation of its legion of fans who cried bias against prog rock. Heart also waited a decade to make it on the ballot, gaining entry during its second appearance.


After years of disappointment, then disinterest, Rush's Alex Lifeson said the band now feels "wonderful" about its entry into the hall and is especially happy for its followers.


"First of all it's all water under the bridge and it was a very tiny bridge," the 59-year-old guitarist said in a phone interview from his home in Toronto. "I think our fans are more upset than we were because they feel a real bond to this band and it's been an important part of their lives in some form, and to be snubbed was snubbing them at the same time. ... Perhaps there were times when I thought if this ever happens I'm not going to bother going, or who cares or whatever, but at the end of the day positive karma is an important thing and this is an important thing to a lot of our fans and people we know."


Jones was less forgiving of the long wait he had. The 79-year-old entertainment icon's fingerprints are all over the hall of fame. He pops up often at key moments in rock 'n' roll history and was even Ray Charles' presenter during the soul singer's induction at the inaugural 1986 ceremony. He never expected to wait so long for his own entry.


"I was pissed off about it at first because I saw how it was going down and who was going in and who wasn't," Jones said with a deep laugh. "But I'm used to it, man. I've been around a long time, and I know how it works, you know. It's still an honor, man."


The 2013 class also continues the process of opening the hall of fame's doors a little bit wider.


In many cases, the delayed entry of this year's inductees had to do with a debate among its membership over the hall of fame's direction. The rock 'n' roll family sits under a big tent, but just how big it should be has been a matter of debate for the Cleveland, Ohio, institution.


The class may signal a new direction.


"That is an eclectic group," Newman said. "Well that's nice. It seems like they're broadening what they think rock 'n' roll is. That's good. There's no point being doctrinaire about music. ... People get awful strict. It's a hell of a thing to get strict about, isn't it?"


There was clearly no debate among the hall's membership about Public Enemy, which gained membership on its 25th anniversary.


The openly militant, always angry group helped elevate and define nascent rap in the 1980s and '90s. MC Chuck D said the group's induction is about more than simple membership.


"It's a great piece of news for the genre and our intention was to spread the light that our music is as legitimate as any other music," Chuck D said as the group traveled through Wyoming on tour Monday. " ... So this is significant to be alongside Grandmaster Flash and The Furious Five, Run DMC and the Beastie Boys and just to be able to say this accomplishment, we don't think it's solely due to us."


Lifeson hopes the hall's membership keeps up with the trend.


"Maybe it should be the Music Hall of Fame and not so much the Rock and Roll Hall of Fame," Lifeson said. "But maybe it all is rock 'n' roll. It started as a little seed and grew into this great big tree with a lot of branches. That's why it's so sad the whole progressive movement, bands like Yes and King Crimson, are not included in this. And I hope one day that they are because they deserve to be in there way before we do. They were huge influences on us and so many other bands that have done fantastic work over the years. I know Deep Purple were up for this as well. It's a little unfortunate that they didn't make it in because they were extremely influential. I hope there comes a time when these other artists and bands are included because they were equally as influential as any of the ones that are being inducted today."


___


Online:


http://rockhall.com /


___


Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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HSBC to pay record $1.9B fine

British-owned bank HSBC is paying $1.9B to settle a US money-laundering probe. The bank was investigated for involvement in the transfer of funds from Mexican drug cartels and sanctioned nations like Iran. (Dec. 11)









HSBC has agreed to pay a record $1.92 billion fine to settle a multi-year probe by U.S. prosecutors, who accused Europe's biggest bank of failing to enforce rules designed to prevent the laundering of criminal cash.

The U.S. Justice Department on Tuesday charged the bank with failing to maintain an effective program against money laundering and conduct due diligence on certain accounts.






In documents filed in federal court in Brooklyn, it also charged the bank with violating sanctions laws by doing business with Iran, Libya, Sudan, Burma and Cuba.

HSBC Holdings Plc admitted to a breakdown of controls and apologised for its conduct.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes," said Chief Executive Stuart Gulliver.

"Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

The bank agreed to forfeit $1.256 billion and retain a compliance monitor to resolve the charges through a deferred-prosecution agreement.

The settlement offers new information about failures at HSBC to police transactions linked to Mexico, details of which were reported this summer in a sweeping U.S. Senate probe.

The Senate panel alleged that HSBC failed to maintain controls designed to prevent money laundering by drug cartels, terrorists and tax cheats, when acting as a financier to clients routing funds from places including Mexico, Iran and Syria.

The bank was unable to properly monitor $15 billion in bulk cash transactions between mid-2006 and mid-2009, and had inadequate staffing and high turnover in its compliance units, the Senate panel's July report said.

HSBC on Tuesday said it expected to also reach a settlement with British watchdog the Financial Services Authority. The FSA declined to comment.

U.S. and European banks have now agreed to settlements with U.S. regulators totalling some $5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.

No bank or bank executives, however, have been indicted, as prosecutors have instead used deferred prosecutions - under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing behaviour.

HSBC's settlement also includes agreements or consent orders with the Manhattan district attorney, the Federal Reserve and three U.S. Treasury Department units: the Office of Foreign Assets Control, the Comptroller of the Currency and the Financial Crimes Enforcement Network.

HSBC said it would pay $1.921 billion, continue to cooperate fully with regulatory and law enforcement authorities, and take further action to strengthen its compliance policies and procedures. U.S. prosecutors have agreed to defer or forego prosecution.

The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to better monitor suspicious transactions. Directives by regulators to improve oversight came in 2003 and again in 2010.

Last month, HSBC told investors it had set aside $1.5 billion to cover fines or penalties stemming from the inquiry and warned that costs could be significantly higher.

Analyst Jim Antos of Mizuho Securities said the settlement costs were "trivial" in terms of the company's book value.

"But in terms of real cash terms, that's a huge fine to pay," said Antos, who rates HSBC a "buy".

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Charges filed in Wrigleyville sports bar stabbing




















Police arrested a man at a Wrigleyville bar early Sunday morning after he allegedly stabbed another man in the bar's men's room.














































A Chicago man appeared in court today after he allegedly jumped out of a bathroom stall at a Wrigleyville bar and stabbed a man in the neck early Sunday morning, police said.

Gregg Greaves, 23, of the 4700 block of North Beacon Street, was charged with aggravated battery causing great bodily harm, police said.


He was ordered held on Monday in lieu of $500,000 bail.


At 12:26 a.m. Sunday, officers were called to the Red Ivy sports bar at 3525 N. Clark St., where the victim told officers Greaves jumped out of a bathroom stall and attacked him with a broken beer bottle, cutting him in the neck, according to a police report.

The victim also suffered cuts on his chin, hands and neck while pushing the assailant away. At some point, another man entered the bathroom and helped hold the attacker until police got there, the report stated.

The victim was taken to Advocate Illinois Masonic Medical Center, where he was treated and released, the report said.

Greaves refused to wear his pants and yelled obscenities while being processed at a police station. Also, while being processed, the man defecated into his hands and threw the matter onto the floor of the station, the report stated.








Outside of court, Greaves defense attorney, Kevin McCubbin, said: "All I've got to tell you is there's two sides to it."


McCubbin said Greaves is originally from Indiana but currently lives in Chicago. Greaves has a degree in industrial engneering and is employed.


McCubbin said his client has never been arrested before. His next date is Dec. 17, officials said.



rsobol@tribune.com

Twitter: @RosemarySobol1






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Massive HP conference draws 10,000 attendees to ogle products, speakers, presentations


By Suzy Hansen


More than 10,000 customers, partners and attendees flocked to the Hewlett-Packard Discover conference in Frankfurt, Germany, this week to learn about HP's latest products, exchange ideas, swap business cards and basically examine whether HP can improve the way their companies are run. The event was held at Messe Frankfurt, one of the world's largest trade exhibition sites.

CEO Meg Whitman acknowledged in her speech on Tuesday that HP has gone through some rough times this past year. HP's stock price has been nearly halved during her tenure. Whitman, however, pointed out that HP has $120 billion in revenue and is the 10th-largest company in the United States. In Q4, HP has generated $4.1 billion in cash flow.

"We are the No. 1 or No. 2 provider in almost every market," Whitman told the crowd in Frankfurt.

Whitman emphasized  executives' increasing concerns about security and said that it will be addressed by "a new approach": HP's security portfolio, with Autonomy and Vertica, which helps "analyze and understand the context of these events." Executive Vice President of Enterprise Dave Donatelli spoke about converged infrastructure, or bringing together server, network and storage; their software-defined data centers; and their new servers, which "change the way servers have been defined." George Kadifa, executive vice president of software, said 94 of the top 100 companies use HP software. HP is the sixth-largest software company in the world, with 16,000 employees in 70 countries, Kadifa added.

Also at the conference was Jeffrey Katzenberg, CEO of DreamWorks and an old friend of Whitman's from their Disney days, who roused the crowd with a fun speech about his long relationship with HP. Katzenberg showed an old video of himself onstage with a lion, which nearly mauled him. This time, he appeared onstage with a guy in a lion suit. The lesson was to learn from past mistakes and move on.

"If I am smart enough to say 'scalable multicorps processing,' I am smart enough to not put myself onstage with a real lion again," he joked.

The Discover conference is a key vehicle for HP to show off products it's offering in the coming year. Among them were the latest ProLiant and Integrity servers, the 3PAR StoreServ 7000 and the StoreAll and StoreOnce storage systems. At the HP Labs section of the conference, attendees could learn about the cloud infrastructure or test HP's new ElitePad 900.

Throughout the three-day event, which saw attendance grow by 30 percent this year, attendees wandered the enormous halls, milling around displays, watching videos, listening to speeches and participating in workshops. People gathered on clustered couches and chatted with new acquaintances, frequently stopping to plug in their various devices and recharge themselves with coffee. With people coming from all over the world, you could hear many languages spoken, from Arabic to French to the most bewildering of them all: the language of technology. Despite the large crowds, it was hard not to notice there were very few women among the thousands in attendance. In fact, when asked about this phenomenon, one female HP employee said, "Trust me, you aren't the first person who has come up to me asking about this."

Indeed, the Discover conference was like a forest of men in suits. The few women stood out like rays of sunlight. 

Regardless of their presence at this conference, women are making big strides in information technology. Among the leaders are HP CEO Whitman, who also led eBay; Carly Fiorina, who ran HP before Whitman; Yahoo! CEO Marissa Mayer; and Facebook COO Sheryl Sandberg. Were the women at the Discover conference surprised by the low female turnout?

"No, for IT this is standard," said Stefanie, a 30-year-old product manager from Germany. "Many are afraid of all the technical stuff, and you have to prove that you are capable of it. You get more women in retail and distribution but not in high-tech areas, at least not in Europe. In America there are more women in management positions and in general."

Americans might assume that Europe, with its generous social programs that include free daycare, enables more women to ascend the corporate ladder. But that still doesn't mean that a woman trying to balance a high-tech career and a family is always accepted in European society.

"There is still a lot of emphasis on the family," Stefanie said. "It's easier to move up in the U.S., where there is a culture of 'having it all.' It's quite a fight to get there here."

Still, the IT industry might seem inhospitable to women. Could this male-dominated profession be male-dominant because women have a hard time breaking in?

Stefanie disagreed. "No, they actually like working with women," she said. "They want to."

One male conference attendee, who asked not to be named, was less certain.

"There's a lot of ego and testosterone," he said. "It can't be easy" for women.



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AP Source: WKU hires Petrino as football coach


Western Kentucky has hired Bobby Petrino as its new football coach, said a person familiar with the decision.


The person said the former Arkansas coach is expected to be introduced at a Monday afternoon news conference. The person spoke to The Associated Press on condition of anonymity because the school has not officially announced Petrino's hiring.


The 51-year-old Petrino replaces Willie Taggart, who left WKU Saturday to become South Florida's coach. Petrino had a 34-17 record at Arkansas and 75-26 overall in eight seasons as a college head coach.


He was fired by Arkansas in April for a "pattern of misleading" behavior following a motorcycle accident. Petrino had an affair with former Razorback volleyball player Jessica Dorrell, who he later hired as a football assistant had gave her $20,000 in gifts. Petrino said initially he was the only person on the motorcycle but later admitted to Dorrell's presence.


Petrino has been looking to get back into coaching since his dismissal. His name was mentioned recently in connection with several openings, including Kentucky and Auburn.


Petrino returns to the state where he successfully began his head coaching career. He coached at Louisville from 2003-06, going 41-9 and leading the Cardinals to a 12-1 mark and their first-ever BCS berth in the Orange Bowl in 2006.


From there Petrino went to the NFL.


He had a brief 13-game stint in 2007 with the Atlanta Falcons. The Falcons stumbled to a 3-10 start before Petrino left for Arkansas, announcing his departure to players in a four-sentence laminated letter attached to their lockers.


Arkansas had a losing record — 5-7 — in his first season. But Petrino and the Razorbacks improved each after that. They were to 8-5 in 2009, 10-3 with a Sugar Bowl appearance in 2010 and went 11-2 with a Cotton Bowl bid in 2011.


He takes over a 7-5 Western Kentucky team that's headed to its first bowl appearance as an FBS school. The Hilltoppers will play in the Little Caesar's Pizza Bowl on Dec. 26 against Central Michigan. WKU defensive coordinator Lance Guidry was named interim coach on Saturday will coach the team in the bowl game.


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