U.S. soldier accused of Iraq shooting “psychotic”: doctor
















TACOMA (Reuters) – A U.S. soldier accused of killing five fellow servicemen at a military combat stress center in Baghdad in 2009 was psychotic and suffered from post-traumatic stress disorder during the shooting frenzy, a top U.S. forensic psychiatrist testified on Tuesday.


Sergeant John Russell, 48, is accused of going on a shooting spree at Camp Liberty, near the Baghdad airport, in an assault the military said at the time could have been triggered by combat stress.













Russell, of the 54th Engineer Battalion based in Bamberg, Germany, faces five charges of premeditated murder, one charge of aggravated assault and one charge of attempted murder in connection with the May 2009 shootings.


Six months ago, he was ordered to stand trial in a military court that has the power to sentence him to death, if he is convicted.


Russell’s civilian attorney, James Culp, entered no plea at an arraignment on Monday at a military base in Washington state. Russell’s court martial is tentatively set for mid-March and could last four to five weeks, attorneys told Reuters on Tuesday.


In a second day of hearings to discuss Russell’s state of mind at the time of the shooting and establish what evidence or testimony to admit at the court martial, Robert Sadoff, a University of Pennsylvania forensic psychiatry expert, gave the opinion that Russell was suffering from post-traumatic stress disorder.


Russell has “dissociative disorder,” or a lack of memory about the shootings, said Sadoff, who examined Russell for a total of 20 hours after the shootings. “He cannot remember. It’s a legitimate disorder. He also has post-traumatic stress disorder.”


Sadoff, a veteran of 10,000 criminal cases added: “It’s a matter of what’s going on in this man’s mind. He was psychotic. He was not dealing with reality. That’s what psychosis is.”


If the defense can persuade a jury that Russell was not in control of his actions, it may be able to argue that he is not legally responsible and could spare him from the death penalty, if convicted.


During Tuesday’s hearing, Culp sought authority from Judge Colonel David Conn to hire a forensic hypnotist to unlock Russell’s buried memories and conduct a specialized magnetic resonance imaging (MRI) test to measure Russell’s “mild diffused brain atrophy”, which Culp argues played a part in his behavior.


This would help diagnose “the extent of brain damage as it relates to criminal responsibility,” Culp said.


Army prosecutors urged the judge to decline. Major Dan Mazzone, one of four Army attorneys prosecuting the case, told the judge that an Army medical review already indicated that Russell’s brain atrophy was typical of a man his age and further testing is an unnecessary expense to the Army.


“The bottom line, this is just not necessary. It’s something the government should not be entitled to fund,” Mazzone said.


The judge is set to rule on the matter over the next few days.


The proceedings, held at Joint Base Lewis-McChord near Tacoma, Washington, come at a sensitive time for the Army, which is in the process of deciding how to prosecute Staff Sergeant Robert Bales, a soldier accused of killing Afghan villagers in cold blood earlier this year.


A two-week hearing at Lewis-McChord to establish if there is sufficient evidence to send Bales to a court martial wrapped up last week after harrowing testimony from Afghan adults and children wounded in the attack.


Bales’ civilian defense lawyers have also suggested he was suffering from post-traumatic stress disorder.


On Monday, Russell’s attorney outlined a defense based on his declining mental state.


Russell suffered from depression, thoughts of suicide, anxiety and stress from multiple deployments, and suffered “at least one traumatic experience involving civilian casualties” and “mass grave sites” while serving in Bosnia and Kosovo during 1998 and 1999, Culp said in presenting arguments to the judge after the arraignment.


(Reporting by Bill Rigby; Editing by Lisa Shumaker)


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Asia stocks fall after Greece aid delayed
















BANGKOK (AP) — Asian stock markets were mostly lower Wednesday, shedding morning gains after European Union officials failed to release a loan payment to debt-mired Greece and postposed further action until next week.


European finance ministers adjourned a meeting in Brussels without granting Greece the next installment of an emergency bailout loan that has been on hold for months. The €31.5 billion ($ 40 billion) loan is needed so that Athens can pay its bills and avoid running out of cash.













The aid is being delayed until officials can resolve a dispute over whether to give Greece an extra two years to get to a point where it can independently raise funds on bond markets. Greece has been locked out of the international long-term debt market since 2010 and thus relies on rescue loans.


The reform program attached to the bailout was to steadily reduce Greece’s debt to 120 percent of its annual gross domestic product by a 2020 deadline. But some officials say the deadline may have been too ambitious and that Greece needs two more years.


South Korea’s Kospi fell 0.4 percent to 1,882.62 after a higher open. Meanwhile, Australia’s S&P/ASX 200 fell further into negative territory, down 0.3 percent at 4,371.10. Benchmarks in Thailand, New Zealand and Taiwan also were lower.


But Japan’s Nikkei 225 index rose 0.4 percent to 9,178.05, with export shares enjoying the benefits of a weakened yen. Hong Kong‘s Hang Seng added 0.2 percent to 21,272.48. Benchmarks in India and the Philippines also rose.


Mainland China‘s Shanghai Composite Index briefly dipped below 2,000, an important psychological mark. The benchmark hasn’t gone above 2,100 since July 6.


The benchmark “has been hovering around 2,000 for such a long time that investors have lost interest,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong. “The weakness in China‘s market is dragging down the Hong Kong market.”


The losses reflected disappointment among investors hoping to see changes in how the stock market is run now that China has new leaders. But reforms have so far not materialized.


“There has been too much resistance to cleaning up the malpractice” in mainland Chinese markets, Lun said. “Investors have lost confidence.”


Among individual stocks, Japanese snack food maker Calbee dropped 3.7 percent after announcing the recall of millions of bags of potato chips due to possible contamination with glass fragments.


Wall Street stocks finished roughly flat Tuesday after a warning from the Federal Reserve chairman about the “fiscal cliff” of tax increases and government spending cuts set to take effect Jan. 1.


The Dow Jones industrial average fell 0.1 percent to 12,788.51. The Standard & Poor’s 500 index rose 0.1 percent to 1,387.81. The Nasdaq composite index inched up to 2,916.68.


In a speech in New York on Tuesday, Bernanke urged Congress and the Obama administration to strike a budget deal to avert the combination of tax increases and spending cuts that will automatically take effect in January if nothing is done.


“This overshadowed some positive economic data which came in the form of better-than-expected housing starts,” said Stan Shamu of IG Markets in Melbourne in a market commentary.


Benchmark oil for January delivery was down 1 cent at $ 86.74 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $ 2.53 to close at $ 86.75 a barrel on Tuesday, falling sharply after signs that Israel and Hamas are close to putting a halt to fighting that has lasted nearly a week.


In currencies, the dollar rose to 81.79 yen from 81.71 yen late Tuesday in New York. The euro fell to $ 1.2747 from $ 1.2807.


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U.S. soldier accused of Iraq shooting “psychotic”: doctor
















TACOMA (Reuters) – A U.S. soldier accused of killing five fellow servicemen at a military combat stress center in Baghdad in 2009 was psychotic and suffered from post-traumatic stress disorder during the shooting frenzy, a top U.S. forensic psychiatrist testified on Tuesday.


Sergeant John Russell, 48, is accused of going on a shooting spree at Camp Liberty, near the Baghdad airport, in an assault the military said at the time could have been triggered by combat stress.













Russell, of the 54th Engineer Battalion based in Bamberg, Germany, faces five charges of premeditated murder, one charge of aggravated assault and one charge of attempted murder in connection with the May 2009 shootings.


Six months ago, he was ordered to stand trial in a military court that has the power to sentence him to death, if he is convicted.


Russell’s civilian attorney, James Culp, entered no plea at an arraignment on Monday at a military base in Washington state. Russell’s court martial is tentatively set for mid-March and could last four to five weeks, attorneys told Reuters on Tuesday.


In a second day of hearings to discuss Russell’s state of mind at the time of the shooting and establish what evidence or testimony to admit at the court martial, Robert Sadoff, a University of Pennsylvania forensic psychiatry expert, gave the opinion that Russell was suffering from post-traumatic stress disorder.


Russell has “dissociative disorder,” or a lack of memory about the shootings, said Sadoff, who examined Russell for a total of 20 hours after the shootings. “He cannot remember. It’s a legitimate disorder. He also has post-traumatic stress disorder.”


Sadoff, a veteran of 10,000 criminal cases added: “It’s a matter of what’s going on in this man’s mind. He was psychotic. He was not dealing with reality. That’s what psychosis is.”


If the defense can persuade a jury that Russell was not in control of his actions, it may be able to argue that he is not legally responsible and could spare him from the death penalty, if convicted.


During Tuesday’s hearing, Culp sought authority from Judge Colonel David Conn to hire a forensic hypnotist to unlock Russell’s buried memories and conduct a specialized magnetic resonance imaging (MRI) test to measure Russell’s “mild diffused brain atrophy”, which Culp argues played a part in his behavior.


This would help diagnose “the extent of brain damage as it relates to criminal responsibility,” Culp said.


Army prosecutors urged the judge to decline. Major Dan Mazzone, one of four Army attorneys prosecuting the case, told the judge that an Army medical review already indicated that Russell’s brain atrophy was typical of a man his age and further testing is an unnecessary expense to the Army.


“The bottom line, this is just not necessary. It’s something the government should not be entitled to fund,” Mazzone said.


The judge is set to rule on the matter over the next few days.


The proceedings, held at Joint Base Lewis-McChord near Tacoma, Washington, come at a sensitive time for the Army, which is in the process of deciding how to prosecute Staff Sergeant Robert Bales, a soldier accused of killing Afghan villagers in cold blood earlier this year.


A two-week hearing at Lewis-McChord to establish if there is sufficient evidence to send Bales to a court martial wrapped up last week after harrowing testimony from Afghan adults and children wounded in the attack.


Bales’ civilian defense lawyers have also suggested he was suffering from post-traumatic stress disorder.


On Monday, Russell’s attorney outlined a defense based on his declining mental state.


Russell suffered from depression, thoughts of suicide, anxiety and stress from multiple deployments, and suffered “at least one traumatic experience involving civilian casualties” and “mass grave sites” while serving in Bosnia and Kosovo during 1998 and 1999, Culp said in presenting arguments to the judge after the arraignment.


(Reporting by Bill Rigby; Editing by Lisa Shumaker)


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Autonomy ‘misled HP on finances’



















HP chief executive Meg Whitman: “We uncovered a whole host of very concerning accounting improprieties”



Computer maker Hewlett Packard has asked US and UK authorities to investigate alleged misrepresentations of Autonomy’s finances before HP took over the UK software group last year.


HP said Autonomy appeared to have “inflated” the value of the company prior to the takeover as part of a “wilful effort to mislead”.


This led to a $ 5bn (£3.1bn) charge in its latest quarterly accounts.


The former management team of Autonomy “flatly rejected” the allegations.


Three former senior members of staff, including former chief executive Mike Lynch, said they were “shocked” to see the statement.


“HP’s due diligence review was intensive,” Autonomy’s former chief executive, chief financial officer and chief operating officer said, referring to the process of investigating a firm prior to purchase.


“It took 10 years to build Autonomy’s industry-leading technology and it is sad to see how it has been mismanaged since its acquisition by HP,” the statement from the former management team said.


During a conference call following the announcement, HP chief executive Meg Whitman said: “We did a whole host of due diligence but when you’re lied to, it’s hard to find.


“[Autonomy] was smaller and less profitable that we had thought,” she said, adding that HP’s investigations suggested that the UK firm had misstated its revenues and growth rate.


Taking into account recent falls in HP’s share value and lower-than-anticipated returns from the merger, the total one-off charge recorded in HP’s accounts for the three months to the end of October was $ 8.8bn, pushing the company to a $ 6.85bn net loss.


‘Questionable accounting’


Continue reading the main story

HP’s allegations… are shocking if true – not least because for years Autonomy was regarded as that rarest and most precious of British companies, a global hi-tech success”



End Quote



HP said during the conference call that “a very senior person” from Autonomy had come forward “with specific details [of accounting misrepresentations]“. That person was still at the company, it said.


Ms Whitman said HP had discovered a number of irregularities, including hardware sales that had been reported as software revenues, which inflated both overall revenues and profit margins.


She said margins of between 40% and 45% had been reported, whereas HP now believed them to be between 20% and 28%.


As well as referring the matter to the regulatory authorities, the company would be “aggressively pursuing individuals responsible for this wrongdoing”, she added.


This would involve trying to recover money for HP shareholders.


HP shares fell 13% in early trading in New York following the announcement.


Deloitte, the accountancy firm which audited Autonomy’s accounts, said it could not comment on the allegations due to client confidentiality, but would cooperate with any investigations.


Criticism


HP completed the takeover of Autonomy for $ 12bn in October last year.


Autonomy was founded by Mike Lynch in 1996 and grew to become one of the largest software companies in the UK.


Mr Lynch is a non-executive director of the BBC, which said in a statement: “We expect to discuss these reports with Dr Lynch imminently.”


Autonomy gained a listing on the US Nasdaq exchange in May 2000, at the height of the technology boom, and was listed in London six months later.


The firm has often been cited as an example of how academic research can be turned into a profitable business, although it has attracted criticism from the City, particularly when, in October 2010, it warned there had been unexpected volatility in its customers’ “purchasing behaviour” and lowered its full-year forecasts.


HP’s decision to buy the company was part of the US firm’s long-term plan to move away from making computers into the more profitable software business.


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Turbulence on Cuba-Italy flight leaves 30 bruised
















ROME (AP) — An airliner flying from Havana to Milan abruptly plunged some 1,000 meters (3,300 feet) when it hit unusually strong turbulence over the Atlantic on Monday, terrifying passengers and leaving some 30 people aboard with bruises and scrapes, airline officials said.


The flight continued to Milan’s Malpensa airport after the plane’s captain determined that it suffered no structural damage and two passengers who are physicians found no serious injuries, Giulio Buzzi, head of the pilots division at Neos Air, told Sky TG24 TV.













The ANSA news agency quoted bruised passenger Edoardo De Lucchi as saying meals were being served when suddenly there was “10 seconds of terror.” He recounted how plates went flying and some passengers not wearing seatbelts bounced about.


Buzzi had said that the drop measured some 3,000 meters (10,000 feet) in a cloudless sky. But Milan daily’s Corriere della Sera’s web site, quoting Neos official Davide Martini, later reported that the plane first bounced up some 500 meters (1,650 feet), then dropped some 1,000 meters (3,300 feet) to some 500 meters (1,650 feet) below the original altitude.


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Yahoo shares reach 18-month high as investors warm to new CEO
















SAN FRANCISCO (Reuters) – Yahoo Inc shares reached their highest level in a year and a half, as investor confidence grows that new Chief Executive Marissa Mayer can pull off a comeback that eluded three of her predecessors.


The Internet pioneer has yet to actually provide Wall Street with any hard evidence that its business is turning a corner – and she has warned that it will be a lengthy job – but investor faith in the ex-Google executive is running high.













Hedge funds Tiger Global Management and Greenlight Capital Management recently disclosed large stakes in Yahoo, accumulated during the third quarter.


“Money managers are staring to want to own this name again,” said Colin Gillis, an analyst with BGC Partners.


“For the amount of traffic they have, and the assets they have, they should be able to squeeze some value out of that,” Gillis said, referring to Yahoo. With Mayer at the helm, he said, Yahoo has “finally got somebody who the market believes can do that.”


Gravity Capital Management’s Adam Seessel said that Mayer’s recruitment of various Google Inc employees, including recently hired Yahoo Chief Operating Officer Henrique de Castro, has also helped burnish Yahoo‘s image.


“What the market is seeing is not (financial) numbers so much as they’re seeing people voting with their feet, people moving from Google to Yahoo,” said Seessel, whose firm owns Yahoo shares.


“All these people from Google wouldn’t be following her if they didn’t think that she didn’t have some good cards to play,” he said.


Shares of Yahoo finished Monday’s regular trading session up 2.8 percent at $ 18.36, amid a broad market rally. The last time Yahoo traded above $ 18.30 was in May 2011.


Yahoo ranks among the world’s most popular websites, with roughly 700 million monthly visitors. But the company’s revenue has eroded, amid competition from Google and Facebook and an industry-wide change in the online advertising market that has compressed prices for the online display ads that are key to its business.


The company has been rocked by internal turmoil: CEO Carol Bartz was fired over the phone and CEO Scott Thompson left after less than six months on the job due to questions about his academic credentials. Mayer, Google‘s first female engineer, took the top job at Yahoo in July.


In a conference call with investors last month, Mayer said that making Yahoo‘s online products more smartphone-friendly was her top priority.


Investors and analysts on Monday dismissed a weekend report in The Telegraph that said Yahoo was in discussions with Facebook about a search deal, particularly after Facebook issued a statement denying any such talks.


“People expect a better search experience on Facebook. We are working on improvements to better meet those expectations but are not in talks to enter into a new search partnership,” Facebook said in a statement on Monday.


Still, analysts say that search represents one of the key opportunities that Mayer will focus on as she moves to revive Yahoo‘s fortunes. A 2010 deal struck by former CEO Bartz outsourced the back-end technology of Yahoo‘s search to Microsoft Corp, but deal has failed to deliver an expected boost to Yahoo‘s search advertising revenue.


“Certainly search could be resuscitated,” said Gabelli & Company analyst Brett Harriss, who said Yahoo should be worth $ 26 a share based on a six-times multiple of its earnings before interest, taxes, depreciation and amortization.


“It was a disaster for a year and a half,” said Harris. “Everybody hated the board, you had a while of transition where you went through three or four CEOs quickly.”


Now, he said, there’s finally a CEO “that investors can believe in.”


(Reporting By Alexei Oreskovic; Editing by Steve Orlofsky)


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International Emmys honor Lear, Alda, South American shows
















NEW YORK (Reuters) – Television legend Norman Lear and veteran actor Alan Alda received special honors at the International Emmy Awards on Monday, while programming from South America dominated the competition, with Argentina and Brazil each winning two Emmys.


Lear, best known as creator of the ground-breaking 1970s hit comedy “All in the Family,” which premiered during a time of social upheaval and tackled issues such as race and women’s rights, said “the world will, and needs to, come together through the arts” as he accepted the honor.













The producer and writer received a special 40th anniversary Founders Award from the International Academy of Television Arts & Sciences, as did Alda, star of the long-running Korean-war set comedy, M*A*S*H* about doctors on the front lines.


Alda paid tribute to “the men and women in the hospital tents,” referring to real-life medical personnel who struggle to treat war injured, who he noted usually go unmentioned at award shows.


“Glee” creator Ryan Murphy received the annual International Founders Award, which was presented by Oscar-winner Jessica Lange, a star of his current series “American Horror Story.”


Argentina won both acting categories, with honors going to actress Cristina Banegas for the dramatic series “Television x La Inclusion,” in which she plays the mother of an ailing child waging battle with health insurers; while Dario Grandinetti picked up the best actor award for his performance as a racist taxi driver in the same series.


It marked the first time both honors were won by actors from the same program.


Brazil scored wins for comedy series for “The Invisible Woman,” while “The Illusionist” was named outstanding telenovela.


In bestowing its prizes, the Emmys, which honor television produced outside the United States, extended their reach after years of domination and even sweeps by the United Kingdom, which this year won two, for best TV movie or miniseries “Black Mirror” and best documentary “Terry Pratchett: Choosing to Die.”


France, Germany and Australia each won one Emmy.


France took the best drama series prize for “Braquo season 2,” while Germany’s “Song of War” won for outstanding arts programming. The Australian franchise of the adventure competition “The Amazing Race” won the award for non-scripted, or reality, television.


The International Emmy directorate award went to Korean Broadcasting System president and CEO Dr. Kim In-Kyu.


Presenters at the ceremony, hosted by recently retired talk show host Regis Philbin, also included Victor Garber, Donnie Wahlberg, Cheyenne Jackson, Telenovela actress Edith González, German TV personalities Joko and Klaas and Indian actress Prerna Wanvari.


(Editing by Chris Michaud and Todd Eastham)


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Antibiotics in pregnancy tied to asthma in children: study
















(Reuters) – Children whose mothers took antibiotics while they were pregnant were slightly more likely than other children to develop asthma, according to a Danish study.


The results don’t prove that antibiotics caused the higher asthma risk, but they support a current theory that the body’s own “friendly” bacteria have a role in whether a child develops asthma, and antibiotics can disrupt those beneficial bugs.













“We speculate that mothers’ use of antibiotics changes the balance of natural bacteria, which is transmitted to the newborn, and that such unbalance bacteria in early life impact on the immune maturation in the newborn,” said Hans Bisgaard, one of the study’s authors and a professor at the University of Copenhagen.


Previous research has linked antibiotics taken during infancy to a higher risk of asthma, although some researchers have disputed those findings.


To look for effects starting at an even earlier point, Bisgaard and his colleagues gathered information from a Danish national birth database of more than 30,000 children born between 1997 and 2003, and followed for five years.


They found that about 7,300 of the children, or nearly one quarter, were exposed to antibiotics while their mothers were pregnant. Among them, just over three percent, 238 children, were hospitalized for asthma by age five.


The study, which appeared in The Journal of Pediatrics, found that by contrast, about 2.5 percent, or 581 of some 23,000 children whose mothers didn’t take antibiotics, were hospitalized with asthma.


After taking into account other asthma risk factors, Bisgaard’s team calculated that the children who had been exposed to antibiotics were 17 percent more likely to be hospitalized for asthma.


Similarly, these children were also 18 percent more likely to have been given a prescription for an asthma medication than children whose mothers did not take antibiotics when they were pregnant.


His team also looked at a smaller group of 411 children who were at higher risk for asthma because their mothers had the condition. They found that these children were twice as likely as their peers to develop asthma too if their mothers took antibiotics during the third trimester of pregnancy.


Others said that it was possible that something besides the antibiotics was responsible, such as the illness the drugs were prescribed for.


“This study, it doesn’t tell us whether it’s the antibiotic use or whether it’s the infection. That’s one thing we can’t decipher,” said Anita Kozryskyj, a professor at the University of Alberta who also studies the antibiotics-asthma link but wasn’t involved in the new study.


The results don’t suggest that women should avoid antibiotics since some infections can be quite dangerous to a fetus, she said, adding that Bisgaard’s study suggests that the development of asthma might start before birth, something researchers hadn’t studied very closely.


“We’re beginning to appreciate that some of the origins of asthma and changes to the immune system, maybe they start earlier than right after birth,” she added. SOURCE: http://bit.ly/W9SnlJ (Reporting from New York by Kerry Grens at Reuters Health; editing by Elaine Lies)


Parenting/Kids News Headlines – Yahoo! News



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Five Steps to Fix Shadow Banking
















International regulators did the world a service by reporting that shadow banking remains an enormous force in the global financial system. Firms in the sector had $ 67 trillion in assets last year, the Financial Stability Board has just reported. But given the importance of the lightly monitored companies, the regulators’ prescriptions seem cautious.


Shadow banking is lending outside the conventional banking system, done by firms such as money market mutual funds, hedge funds, and securities dealers. It’s far less regulated than lending by normal banks, which take insured deposits. Many economists and financial experts say shadow banking was responsible for triggering the global financial crisis of 2008-09.













Regulating it isn’t easy, for two very different reasons. One is that shadow banking can’t be shut down entirely because it does some real good. “Non-bank financial entities can … be sources of long-term and short-term credit to businesses and households,” the Financial Stability Board wrote in a report released on Nov. 18 (PDF). The second reason is that the sector has political muscle. “We’re already seeing a contest of wills” over attempts to tighten regulation, says Erik Gerding, a law professor at the University of Colorado, Boulder who specializes in banking regulation.


The board’s five-step plan to fix shadow banking, which was released in conjunction with the report on the sector’s size, didn’t exactly stick its neck out. The board is seeking comment on the plan and plans to publish final recommendations in September 2013. Here’s a boiled-down version:


1. Keep banks from being infected by problems in shadow banking. On this point, the board mostly just endorsed existing plans from the Basel Committee on Banking Supervision, which wants banks to keep thicker buffers of capital against potential losses on loans they make to shadow banking organizations.


2. Make money market mutual funds less vulnerable to runs. In the U.S., the new Financial Stability Oversight Council is continuing to press for making the funds let per-share values float in line with the value of the underlying securities, making them less rigid and breakable. The Financial Stability Board said funds should switch to floating net asset values “where workable”—a phrase that leaves room for funds to keep things as they are.


3. Put some teeth into the rules for other shadow banking organizations. The board lays out a long-term agenda for reducing risks, other than those posed by money market mutual funds. To make sure countries can’t simply ignore regulations they don’t like, the board said tougher policies should “eventually” become a “membership commitment subject to peer reviews.”


4. Regulate securitization. When it comes to bonds backed by assets such as credit-card receivables or mortgages, the board advocated greater disclosure and said countries should “converge” on the amount of risk that a securitizer must retain to make sure it has an incentive to sell only high-quality securities. But it didn’t give numerical targets.


5. Regulate securities lending and repo lending. Most of the recommendations on the businesses of loans backed by stock or bonds are standard-issue, such as making sure that the collateral posted is adequate. On the most controversial issue—the preferential treatment of repurchase agreements and securities loans in bankruptcy court, which has contributed to their explosive growth—the board said changes “may be viable theoretical options” but concluded, “they will not be pursued for now due to practical difficulties.”


Lena Komileva, chief economist of London-based G+ Economics, an investment advisory firm, described the balancing act regulators face. “Bringing shadow banking out of the shadows recognizes the systemic importance of non-bank finance for the health of the global economy,” she wrote in an e-mail. “But regulators need to apply a surgical scalpel not an ax, so that the benefit of avoiding another Lehman, AIG (AIG), or Reserve Primary Fund does not come at the cost of the long-term efficiency and productivity of the financial system.”


Businessweek.com — Top News



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Rebels in Congo reach door of Goma
















GOMA, Congo (AP) — A Rwandan-backed rebel group advanced to within 3 kilometers (1.8 miles) of Goma, a crucial provincial capital in eastern Congo, marking the first time that rebels have come this close since 2008.


Congolese army spokesman Col. Olivier Hamuli said the fighting has been going on since 6 a.m. Sunday and the front line has moved to just a few kilometers (miles) outside the city. After more than nine hours of violent clashes the two sides took a break, with M23 rebels establishing a checkpoint just 100 meters (yards) away from one held by the military in the village of Munigi, exactly 3 kilometers (1.8 miles) outside the Goma city line.













Contacted by telephone on the front line, M23 rebel spokesman Col. Vianney Kazarama said the group will spend the night in Goma.


“We are about to take the town. We will spend the night in Goma tonight,” said Kazarama. “We are confident that we can take Goma and then our next step will be to take Bukavu,” he said mentioning the capital of the next province to the south.


The M23 rebel group is made up of soldiers from a now-defunct rebel army, the National Congress for the Defense of the People, or CNDP, a group made-up primarily of fighters from the Tutsi ethnic group, the ethnicity that was targeted in Rwanda‘s 1994 genocide. In 2008, the CNDP led by Rwandan commando Gen. Laurent Nkunda marched his soldiers to the doorstep of Goma, abruptly stopping just before taking the city.


In the negotiations that followed and which culminated in a March 23, 2009 peace deal, the CNDP agreed to disband and their fighters joined the national army of Congo. They did not pick up their arms again until this spring, when hundreds of ex-CNDP fighters defected from the army in April, claiming that the Congolese government had failed to uphold their end of the 2009 agreement.


Reports, including one by the United Nations Group of Experts, have shown that M23 is actively being backed by Rwanda and the new rebellion is likely linked to the fight to control Congo’s rich mineral wealth.


The latest fighting broke out Thursday and led to the deaths of 151 rebels and two soldiers. On Saturday U.N. attack helicopters targeted M23 positions in eastern Congo.


Also on Saturday, United Nations Secretary-General Ban Ki-Moon had called Rwandan President Paul Kagame “to request that he use his influence on the M23 to help calm the situation and restrain M23 from continuing their attack,” according to peacekeeping chief Herve Ladsous who spoke at the U.N. headquarters in New York on Saturday.


North Kivu governor Julien Paluku said Saturday that the Congolese army had earlier retreated from Kibumba, which is 30 kilometers (19 miles) north of Goma, after thousands of Rwandans, who he says were backing the rebels, attacked early Saturday.


“Rwandan forces bombarded our positions in Kibumba since early this morning and an estimated 3,500 crossed the border to attack us,” he said Saturday.


In downtown Goma, panicked residents had come out to try to get more information on what was happening. A 45-year-old mother of five said that she has nowhere to go.


“I don’t really know what is happening, I’ve seen soldiers and tanks in the streets and that scares me,” said Imaculee Kahindo. Asked if she planned to leave the city, she said: “What can we do? I will probably hide in my house with my children.”


Hamuli, the spokesman for the Congolese army, denied reports that soldiers were fleeing.


In 2008 as Nkunda’s CNDP rebels amassed at the gates of Goma, reporters inside the city were able to see Congolese soldiers running in the opposite direction, after having abandoned their posts. The Congolese army is notoriously dysfunctional with soldiers paid only small amounts, making it difficult to secure their loyalties during heavy fighting.


“We are fighting 3 kilometers from Goma, just past the airport. And our troops are strong enough to resist the rebels,” said Hamuli. “We won’t let the M23 march into our town,” he said. Asked if his troops were fleeing, he added: “These are false rumors. We are not going anywhere.”


U.N. peacekeeping chief Ladsous said that the rebels were very well-equipped, including with night vision equipment allowing them to fight at night.


Reports by United Nations experts have accused Rwanda, as well as Uganda, of supporting the rebels. Both countries strongly deny any involvement and Uganda said if the charges continue it will pull its peacekeeping troops out of Somalia, where they are playing an important role in pushing out the Islamist extremist rebels.


The U.N. Security Council called for an immediate stop to the violence following a two-hour, closed-door emergency meeting. The council said it would add sanctions against M23 rebels and demanded that rebels immediately stop their advance toward the provincial capital of Goma.


“We must stop the M23″ because Goma’s fall “would, inevitably, turn into a humanitarian crisis,” said France‘s U.N. Ambassador, Gerard Araud. He added that U.N. officials would decide in the coming days which M23 leaders to target for additional sanctions.


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Associated Press writer Maria Sanminiatelli at the United Nations and Rukmini Callimachi in Dakar, Senegal, contributed to this report.


Africa News Headlines – Yahoo! News



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