Pope needs help sending out blessing in first tweet






VATICAN CITY (Reuters) – After weeks of anticipation bordering on media frenzy, Pope Benedict solemnly put his finger to a computer tablet device on Wednesday and tried to send his first tweet – but something went wrong.


Images on Vatican television appeared to show the first try didn’t work. The pope, who still writes his speeches by hand, seems to have pressed too hard and the tweet was not sent right away. So, he needed a little help from his friends.






Archbishop Claudio Maria Celli of the Vatican‘s communications department showed the pontiff how to do it, but the pope hesitated. Celli touched the screen lightly himself and off went the papal tweet.


“Dear friends, I am pleased to get in touch with you through Twitter. Thank you for your generous response. I bless all of you from my heart,” he said in his introduction to the brave new world of Twitter.


The tweet was sent at the end of weekly general audience in the Vatican before thousands of people.


The pope actually has eight linked Twitter accounts. @Pontifex, the main account, is in English. The other seven have a suffix at the end for the different language versions. For example, the German version is @Pontifex_de, and the Arabic version is @Pontifex_ar.


The tweets will be going out in Spanish, English, Italian, Portuguese, German, Polish, Arabic and French. Other languages will be added in the future.


The pope already had just over a million followers in all of the languages combined minutes before he sent his first tweet and the number was growing.


PAPAL Q AND A


Later on Wednesday after the audience was over and the television cameras turned off, the pontiff answered the first of three questions sent to him at #askpontifex.


The first question answered by the pope was: “How can we celebrate the Year of Faith better in our daily lives?”


His answer: “By speaking with Jesus in prayer, listening to what he tells you in the Gospel and looking for him in those in need.”


The pope, who, as leader of the Roman Catholic Church already has 1.2 billion followers in the standard sense of the word, won’t be following anyone else, the Vatican has said.


After his first splash into the brave new world of Twitter on Wednesday, the contents of future tweets will come primarily from the contents of his weekly general audience, Sunday blessings and homilies on major Church holidays.


They are also expected to include reaction to major world events, such as natural disasters.


The Vatican says papal tweets will be little “pearls of wisdom”, which is understandable since his thoughts will have to be condensed to 140 characters, while papal documents often top 140 pages.


The Vatican said precautions had been taken to make sure the pope’s certified account is not hacked. Only one computer in the Vatican’s secretariat of state will be used for the tweets.


After Wednesday, Benedict won’t be pushing the button on his tweets himself. They will be sent by aides but he will sign off on them.


The pope’s Twitter page is designed in yellow and white – the colors of the Vatican, with a backdrop of the Vatican and his picture. It may change during different liturgical seasons of the year and when the pope is away from the Vatican on trips.


The pope has given a qualified welcome to social media.


In a document issued last year, he said the possibilities of new media and social networks offered “a great opportunity”, but warned of the risks of depersonalization, alienation, self-indulgence, and the dangers of having more virtual friends than real ones.


In 2009, a new Vatican website, www.pope2you.net, went live, offering an application called “The pope meets you on Facebook”, and another allowing the faithful to see the pontiff’s speeches and messages on their iPhones or iPods.


The Vatican famously got egg on its face in 2009 when it was forced to admit that, if it had surfed the web more, it might have known that a traditionalist bishop whose excommunication was lifted had for years been a Holocaust denier.


(Reporting By Philip Pullella, editing by Paul Casciato)


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‘Homeland’ leads old favorites in Golden Globes TV race






LOS ANGELES (Reuters) – Cable shows got more Golden Globe nominations for television than traditional network programs on Thursday as HBO‘s political movie “Game Change” and Showtime‘s psychological thriller series “Homeland,” – one of last year’s big winners – led the race.


“Homeland” led the TV drama category with four nominations including best drama, best actor for Damian Lewis and best actress for Claire Danes in her role as a bi-polar CIA agent tracking down a home-grown Muslim extremist.






The show faces stiff competition from British aristocratic drama “Downton Abbey, which also won an acting nod for Michelle Dockery, along with “Breaking Bad,” “Boardwalk Empire,” and newcomer “The Newsroom.”


“‘Homeland’ fans seemed to be a little more split on whether creatively the second season was as successful as the first season so it’ll be curious if that ends up impacting the show’s chances in terms of taking home the awards,” James Hibberd, senior staff writer at Entertainment Weekly, told Reuters.


Downtown Abbey” creator Julian Fellowes told Reuters: “We’re up against the big boys now, but the whole thing is very flattering and exciting.”


He added: “The themes of the show are pretty international, they’re about adjusting to change and being caught out by what life does to you…all of that is common to every country.”


HBO movie “Game Change,” about the surprise selection of Sarah Palin as John McCain’s running mate in the 2008 presidential campaign, landed five nods in the miniseries/movie category, including for actors Julianne Moore and Woody Harrelson.


“‘Game Change’ is pure awards bait. It’s a well-done, smart political drama based on a book, with a certain amount of left-wing political slant and it’s very much the type of movie you’d expect awards voters to like,” Hibberd said.


New HBO drama “The Newsroom” bumped long-time awards favorite “Mad Men” from the best drama category, surprising many who believed the stylish advertising series was a shoo-in.


“The Globes tend to like the glamorous and sophisticated dramas with big city settings and they tend to shy away from gritty, rural Americana dramas…about sweaty guys with guns instead of charming men in suits, like ‘The Newsroom’ and ‘Boardwalk Empire,’” Hibberd said.


He noted that the only exception was “Breaking Bad,” which finally made the best drama category this year after four seasons on air.


Other notable snubs included HBO‘s epic fantasy drama “Game of Thrones,” which failed to pick up any nominations, and Ryan Murphy’s miniseries “American Horror Story: Asylum” which landed one best actress nod for Jessica Lange, who took home the award for 2012.


‘MODERN FAMILY’ LEADS COMEDY RACE


While last year’s Golden Globes picked newcomers over staple awards favorites for leading nominees, this year’s comedy categories saw the return of many old faces, including “Modern Family,” which led the comedy race with three nods.


Comedians Tina Fey and Amy Poehler, who will be hosting the awards ceremony on January 13, each landed a best comedy actress nod in the television race for their long-popular NBC comedies – Fey for “30 Rock” and Poehler for “Parks and Recreation.”


“You can be sure that the hosts are going to have fun with this during the telecast, they’re going to find ways to play off this during their presentation,” Hibberd said.


Fey and Poehler will replace Ricky Gervais at the awards gala dinner, after the British comedian helmed the Globes with his risqué dry humor for three years.


HBO‘s raunchy new comedy “Girls” earned two key nominations in the best TV comedy category and best comedy actress for Lena Dunham, while Showtime‘s new satire “House of Lies” landed the show’s lead Don Cheadle a best actor nod.


With the exception of NBC’s musical comedy “Smash” in the best comedy series category, no new network comedies managed to break into key races, which Hibberd attributed to a “disappointing” fall season.


Cable channel HBO picked up 17 nominations and Showtime garnered 7 across all major television categories. Networks ABC had 5, CBS and NBC got 4, and Fox got 2.


(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)


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Eurozone bank deal boosts summit







EU leaders have gone into a Brussels summit buoyed by a landmark deal on centralised supervision of eurozone banks, seen as a key integration step.






The European Commission said the leaders must “keep the same sense of urgency” despite an easing of market pressure on the eurozone recently.


The UK government says the new agreement does not threaten the City of London, the EU’s main financial centre.


The leaders will discuss a far-reaching roadmap for eurozone integration.


UK Prime Minister David Cameron said the deal reached by EU finance ministers after all-night talks “protected our interests in the single market”. He praised UK Chancellor George Osborne for “an excellent job”.


The UK, along with Denmark, has a formal opt-out from joining the euro, and will not be part of the new banking union. But the UK’s banking pre-eminence in Europe means it is taking an intense interest in the negotiations.


Mr Cameron said “this change does give us a chance to get a better deal in Europe”.


Continue reading the main story

Start Quote



This deal is a further example of how the eurozone crisis is carving out a new Europe less from choice but more by the need to survive”



End Quote



Sweden is also outside the euro, and its prime minister, Fredrik Reinfeldt, said the deal would still enable non-eurozone countries to have influence in European banking decisions.


“To start with Sweden will stay outside… Swedish taxpayers don’t want to cover losses in other countries,” he told reporters on arrival at the summit.


Around 200 of the biggest banks will come under the direct oversight of the European Central Bank, which will act as chief supervisor of eurozone banks.


New rules on prudent banking are seen as vital to bolster the euro, as bank failures triggered the financial crash.


The measures are also aimed at preventing banking failures, of the type that happened in Greece and Spain, ending up on the books of eurozone governments.


Eurozone finance ministers also agreed formally to release a long-delayed instalment of 34bn euros (£27bn; $ 44bn) to Greece over the next few days, with a further 15bn later on. Athens has been waiting for the bailout funding since June.


Heavily indebted Italy has also been a worry for investors, and political uncertainty has increased since former Prime Minister Silvio Berlusconi confirmed that he would run again in a general election expected in February.


At a pre-summit meeting in Brussels conservative leaders voiced support for Italy’s Prime Minister Mario Monti, some urging him to run for election against Mr Berlusconi, sources who were there said.


Mr Monti, an unelected technocrat, has pushed through some unpopular but long-delayed reforms, including big public service cuts, since taking over from Mr Berlusconi a year ago with the EU’s approval.


‘Core demands’


EU finance ministers finally clinched the banking deal just before dawn on Thursday after 14 hours of talks.


Continue reading the main story

Eurozone banking deal


  • ECB to act as chief supervisor of eurozone banks and lenders

  • ECB to co-operate closely with national supervisory authorities

  • Direct oversight of banks with assets greater than 30bn euros ($ 39bn; £24bn) or with 20% of national GDP

  • National supervisors to remain in charge of other tasks

  • Non-eurozone countries that wish to take part can make close co-operation arrangements


German Chancellor Angela Merkel welcomed the agreement, telling the Bundestag (lower house of parliament) that Germany’s “core demands” had been secured. “It cannot be praised too highly.”


She has previously warned against rushing into banking union out of concern that Germany would face further financial demands.


Significantly, a large number of French banks will be supervised by the ECB but rather few institutions in Germany will, because of its fragmented banking industry, says the BBC’s Business Editor, Robert Peston.


European Commission President Jose Manuel Barroso hailed the deal as “a crucial and very substantive step towards completion of the banking union”.


‘Significant transfer’


For months, the threshold at which the ECB would act as chief supervisor has been the subject of strained negotiations.


Under the deal expected to take effect in March 2014, banks with more than 30bn euros ($ 39bn; £24bn) in assets will be placed under the oversight of the European Central Bank.


The ECB would also be able to intervene with smaller lenders and borrowers at the first sign of trouble, the BBC’s Europe Editor Gavin Hewitt says.


Europe’s finance ministers have taken another major step towards closer integration, with a significant transfer of authority from national governments to the ECB, he says.


The deal gives the ECB powers to close down eurozone banks that do not follow the rules. It also paves the way for the EU’s main rescue fund to come to the direct aid of struggling banks.


It represents the first stage of a banking union – known as a Single Supervisory Mechanism (SSM) – which EU leaders believe can be put in place without having to change EU treaties.


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Cuban lawmakers meet to consider economy, budget






HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.


Legislators are also to approve next year’s budget.






Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.


Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.


The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.


State-run media said Castro presided over Thursday’s session.


It was not open to international journalists.


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Angry Birds beats Samsung in viral marketing as mobile interest surged in 2012






This past year has shown us how effective leading smartphone and mobile app companies have become at leveraging viral videos. In Ad Age’s top-10 viral videos list for 2012, Samsung (005930) and Rovio each hog two spots. The Angry Birds Space video racked up 109 million views and the Angry Birds Star Wars hit the 41 million view mark. Meanwhile, Samsung managed to get 79 million views for its Galaxy S III video and 42 million views for the LeBron’s Day clip. It’s notable that Rovio’s Angry Birds clips were far cheaper to produce, with no major stars or lavish video production gimmickry.


The smartphone/mobile app industry thus held four of the top-10 viral video slots in 2012 — the rest of the list is a motley crew of names ranging from Invisible Children and Red Bull to Intel and M&M. It is telling that the smartphone/mobile app cluster is the only industry or cultural phenomenon that generated more than one spot on the list. Popular interest in mobile content continues surging.






It might also be a sign of the times that Apple (AAPL) did not hit the top-10. Samsung’s ultra-aggressive promotional efforts have started bearing fruit. What was once a boring, stale copycat brand in 2008 has suddenly started gripping the imaginations of consumers in a completely new way.


But perhaps even more interesting is that a mobile app company with less than 100 million euros in sales in 2011 managed to beat the mighty Samsung marketing machine in 2012. Rovio is in the vanguard of spreading mobile gaming into demographic niches that have never been all that interested in technology or gaming.


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Taylor Swift reclaims top spot on Billboard 200






LOS ANGELES (Reuters) – Country-pop star Taylor Swift reclaimed the top spot on the Billboard 200 album chart on Wednesday with her hit album “Red,” keeping three new entries from the No.1 position.


“Red” landed back at No. 1 for the fourth time after selling 167,000 copies last week according to Nielsen SoundScan, ousting Alicia Keys‘ “Girl on Fire,” which fell to No. 7 this week.






New entries this week include rapper Wiz Khalifa‘s sophomore record “O.N.I.F.C.,” which debuted at No. 2 after selling 141,00 copies. Pop star Ke$ ha’s new album “Warrior” landed at No. 6 with sales of 85,000 while country band Florida Georgia Line‘s debut album “Here’s To the Good Times” came in at No. 10.


Ahead of the holidays, festive albums featured heavily in the top 10, with Rod Stewart‘s “Merry Christmas, Baby” at No. 3, Michael Buble‘s “Christmas” at No. 5 and Blake Shelton‘s “Cheers, It’s Christmas” at No. 8.


Bruno Mars’ latest single “Locked Out of Heaven” topped the Billboard Digital Songs chart for the first time with 197,000 copies sold, coming in ahead of Rihanna’s “Diamonds” at No. 2 and will.i.am and Britney Spears‘ “Scream & Shout” at No. 3.


(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)


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Rebekah Brooks gets £10.8m payoff







Rebekah Brooks, the former head of News International, was paid £10.8m after she resigned, it has emerged.






The figure, compensation for loss of office, appeared in the company’s accounts, released on Wednesday.


Mrs Brooks resigned in July 2011 shortly after the News of the World closed because of phone hacking allegations.


The accounts for the year to July 2012 also show the group set aside £17.5m to cover legal fees and damages.


That figure relates to existing claims only, and could rise in the future if it receives more, News International said.


Individuals who have received payments from the company include the parents of the murdered schoolgirl Millie Dowler and the singer Charlotte Church.


Mrs Brooks, who has been charged over alleged payments to police and public officials, was a former editor of the News of the World and the Sun newspaper, and later rose to chief executive of News International.


She appeared at the Old Bailey last week and is due to face trial in September next year over alleged illegal payments to public officials.


Losses


The company said this financial year contained a “high level of uncertainty” due to potential damages and legal costs which may be payable as result of the legal action by those alleging their private messages were intercepted by the News of the World in search of stories.


News International Group is a subsidiary of Rupert Murdoch’s News Corporation and owns both the Times titles as well as the Sun newspaper.


Its accounts show it lost £153m in the year to July 2012 compared with a profit of £113m a year earlier.


The group said one of the main causes of the loss, £46.6m, was the closure of the News of the World, which published its last edition in July last year.


More than half of this is legal fees, it said. In addition to that there is the £10.8m loss of office payment and £2.9m in charitable donations from the sale of the last News of the World.


The Times


Separately, the editor of the Times, James Harding, has announced his resignation.


He will leave within a month and is expected to be replaced by Sunday Times editor John Witherow. .


In an address to staff, Mr Harding implied that the decision was not entirely his: “It has been made clear to me that News Corporation would like to appoint a new editor of the Times.


“I have, therefore, agreed to stand down. I called Rupert this morning to offer my resignation and he accepted it,” he said.


Mr Harding could move to Mr Murdoch’s publishing firm, Harper Collins, BBC business editor Robert Peston says.


Rupert Murdoch said: “James has been a distinguished editor for the Times, attracting talented staff to the paper and leading it through difficult times.


“I have great respect for him as a colleague and friend, and truly hope we can work together again.”


Mr Harding, who is 43, was one of the youngest journalists to take charge of the paper.


Split


The change at the Times newspaper comes hard on the heels of another move at the top of Mr Murdoch’s company.


Last week, the chief executive of News International, Tom Mockridge, who had taken over from Mrs Brooks in July 2011, said he would leave his role before the end of the month.


Rupert Murdoch, chairman and chief executive of News Corp, said that Mr Mockridge’s decision was “absolutely and entirely his own”.


News Corp plans to split into two businesses, separating its newspaper and book publishing interests from its now dominant and much more profitable TV and film enterprises.


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‘Dishonored’ tops a diverse year in video games






The video game universe in 2012 is a study in extremes.


At one end, you have the old guard striving to produce mass-appeal blockbusters. At the other end, you have a thriving community of independent game developers scrambling to find an audience for their idiosyncratic visions. Can’t we all just get along?






Turns out, we can. For while some industry leaders are worried (and not without cause) about “disruptive” trends — social-media games, free-to-play models, the switch from disc-based media to digital delivery — video games are blossoming creatively. This fall, during the height of the pre-holiday game release calendar, I found myself bouncing among games as diverse as the bombastic “Halo 4,” the artsy “The Unfinished Swan” and the quick-hit trivia game “SongPop.”


Some of my favorite games this year have benefited from both sides working together. The smaller studios get exposure on huge platforms like Xbox Live or the PlayStation Network. The big publishers seem more willing to invite a little quirkiness into their big-budget behemoths. Gamers win.


1. “Dishonored” (Bethesda Softworks, for the Xbox 360, PlayStation 3, PC): Arkane Studios’ revenge drama combined a witty plot, crisp gameplay and an uncommonly distinctive milieu, setting a supernaturally gifted assassin loose in a gloriously decadent, steampunk-influenced city.


2. “Mass Effect 3″ (Electronic Arts, for the Xbox 360, PlayStation 3, Wii U, PC): No 2012 game was more ambitious than BioWare’s sweeping space opera. Yes, the ending was a little bumpy, but the fearless Commander Shepard’s last journey across the cosmos provided dozens of thrilling moments.


3. “The Walking Dead” (Telltale Games, for the Xbox 360, PlayStation 3, PC, iOS): This moving adaptation of Robert Kirkman’s comics dodged the predictable zombie bloodbath in favor of a finely tuned character study of two survivors: Lee, an escaped convict, and Clementine, the 8-year-old girl he’s committed to protect.


4. “Journey” (Thatgamecompany, for the PlayStation 3): A nameless figure trudges across a desert toward a glowing light. Simple enough, but gorgeous visuals, haunting music and the need to communicate, wordlessly, with companions you meet along the way translate into something that’s almost profound.


5. “Borderlands 2″ (2K Games, for the Xbox 360, PlayStation 3, PC): Gearbox Software’s gleeful mash-up of first-person shooting, role-playing and loot-collecting conventions gets bigger and badder, but what stuck with me most were the often hilarious encounters with the damaged citizens of the godforsaken planet Pandora.


6. “XCOM: Enemy Unknown” (2K Games, for the Xbox 360, PlayStation 3, PC): A strategy classic returns, as the forces of Earth fight back against an extraterrestrial invasion. It’s a battle of wits rather than reflexes, a stimulating change of pace from the typical alien gorefest.


7. “Fez” (Polytron, for the Xbox 360): A two-dimensional dude named Gomez finds his world has suddenly burst into a third dimension in this gem from indie developer Phil Fish. As Gomez explores, the world of “Fez” continually deepens, opening up mysteries that only the most dedicated players will be able to solve.


8. “Spec Ops: The Line” (2K Games, for the Xbox 360, PlayStation 3, PC): This harrowing tale from German studio Yager Development transplants “Apocalypse Now” to a war-torn Dubai. It’s a bracing critique, not just of war but of the rah-rah jingoism of contemporary military shooters.


9. “Assassin’s Creed III” (Ubisoft, for the Xbox 360, PlayStation 3, Wii U, PC): A centuries-old conspiracy takes root in Colonial America in this beautifully realized, refreshingly irreverent installment of Ubisoft’s alternate history franchise.


10. “ZombiU” (Ubisoft, for the Wii U): The best launch game for Nintendo’s new console turns the Wii U’s GamePad into an effective tool for finding and hunting down the undead.


Runners-up: “Call of Duty: Black Ops II,” ”Darksiders II,” ”Dust: An Elysian Tail,” ”Far Cry 3,” ”Halo 4,” ”Mark of the Ninja,” ”Need for Speed: Most Wanted,” ”Paper Mario: Sticker Star,” ”Papo & Yo,” ”The Unfinished Swan.”


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Mexico: Rivera’s plane hit with ‘terrible’ impact






MEXICO CITY (AP) — The plane carrying Mexican-American music superstar Jenni Rivera plunged almost vertically from more than 28,000 feet and hit the ground in a nose-dive at a speed that may have exceeded 600 miles per hour, Mexico‘s top transportation official said Tuesday.


In the first detailed account of the moments leading up to the crash that killed Rivera and six other people, Secretary of Communications and Transportation Gerardo Ruiz Esparza told Radio Formula that the twin-engine turbojet hit the ground 1.2 miles from where it began falling.






“The plane practically nose-dived,” he said. “The impact must have been terrible.”


Ruiz did not offer any explanation of what may have caused the plane to plummet, saying only that “The plane fell from an altitude of 28,000 feet … It may have hit a speed higher than 1,000 kph (621 mph).”


Ruiz said the pilot of the plane, Miguel Perez Soto, had a valid Mexican pilot’s license that would have expired in January. Photos of a temporary pilot’s certificate issued by the U.S. Federal Aviation Administration and found amid the wreckage said that Perez was 78.


Ruiz said there is no age limit for flying a civil aviation aircraft, though for commercial it’s 65.


Mexican authorities were performing DNA tests Tuesday on remains believed to belong to Rivera and the others killed when her plane went down in northern Mexico early Sunday morning.


Investigators said it would take days to piece together the wreckage of the plane carrying Rivera and find out why it went down.


The U.S. National Transportation Safety Board said it was sending a team to help investigate the crash of the Learjet 25, which disintegrated on impact in the rugged terrain in Nuevo Leon state in northern Mexico.


Human remains found in the wreckage were moved to a hospital in Monterrey, the closest major city to the crash, and Rivera’s brother Lupillo was driven past a crowd of reporters to the area where the remains were being kept. He did not speak to the press.


A state official, speaking on condition of anonymity because of the ongoing investigation, said investigators were testing DNA from the remains in order to provide families with definitive confirmation of the deaths of their loved ones.


“We’re in the process of picking up the fragments and we have to find all the parts,” Argudin told reporters on Monday. “Depending on weather conditions it would take us at least 10 days to have a first report and many more days to have a report by experts.”


In an interview on Radio Formula, Alejandro Argudin, head of Mexico’s civil aviation agency, said Mexican investigators weren’t sure yet if the Learjet had been equipped with flight data recorders. He also said there had been no emergency call from the plane before the crash.


Fans of Rivera, who sold 15 million records and was loved on both sides of the border for her down-to-earth style and songs about heartbreak and overcoming pain, put up shrines to her with burning candles, flowers and photographs in cities from Hermosillo, Mexico to Los Angeles.


Some Spanish-language radio stations played her songs nonstop.


A brother, Juan Rivera, as well as mother Rosa Saavedra, still held on to hope that she would be found alive.


“I still trust God that perhaps the body isn’t hers,” Saavedra said in a press conference Tuesday, adding that she could have been kidnapped and another woman was at the crash site. “We’re hoping it’s not true, that perhaps someone took her and left another woman there.”


The 43-year-old California-born Rivera known as the “Diva de la Banda” died as her career peaked. She was perhaps the most successful female singer in grupero, a male-dominated Mexico regional style, and had branched out into acting and reality television.


Besides being a singer, she appeared in the indie film Filly Brown, which was shown at the Sundance Film Festival, and was filming the third season of “I love Jenni,” which followed her as she shared special moments with her children and as she toured through Mexico and the United States.


The Learjet 25, number N345MC, with Rivera aboard was en route from Monterrey to Toluca, outside Mexico City, when it was reported missing about 10 minutes after takeoff.


Ruiz said Mexican officials are investigating why the U.S. plane was carrying passengers between two Mexican destinations, something that’s against regulation. U.S- registered planes can only fly paying passengers internationally into Mexico. He said the plane’s owner, Starwood Management of Las Vegas, said Rivera was not renting the jet, but was receiving a free flight because Starwood thought it would promote the aircraft, which was for sale.


That would be allowed under Mexican law, Ruiz said.


“The Civil Aviation Department has instructions to investigate this point specifically,” he said, adding that he’s also asking other authorities to verify the company’s story about why one of its planes was flying between Mexican destinations.


According to the U.S. National Transportation Safety Board, the same plane was substantially damaged in a 2005 landing mishap at Amarillo International Airport in Texas. It hit a runway distance marker after losing directional control. There were four aboard but no injuries. It was registered to a company in Houston, Texas, as the time.


Starwood has been the subject of a lawsuit and investigations, though none so far have centered on the plane that carried Rivera.


Another of its planes was seized in September by the U.S. Drug Enforcement Administration in McAllen, Texas.


A federal lawsuit in Nevada filed by QBE Insurance Corp. alleges that a Starwood aircraft was ordered seized by the DEA when it landed in McAllen, Texas, from Mexico on Sept. 12. The New York-based insurer sued in October to rescind coverage for the Hawker 700 jet.


Starwood, in a court filing, acknowledged that the DEA was involved in the seizure of the aircraft.


QBE, based in New York, said the DEA also seized a Starwood-owned Gulfstream G-1159A — insured by another company — when it landed in Tucson from Mexico in February. Starwood said in its court filing that it didn’t have enough information to address the allegation.


Nevada secretary of state records list only one Starwood officer — Norma Gonzalez — but QBE alleges that the company is owned and managed by Ed Nunez, who, according to the lawsuit, is also known as Christian Esquino and had a long criminal history.


Starwood rejected the insurer’s description of Nunez’s role at the company.


According to QBE’s lawsuit, Esquino pleaded guilty in federal court in Orlando, Florida, in 1993 to conspiracy to possess and distribute cocaine.


QBE said Esquino also served two years in prison after pleading guilty to conspiracy to commit fraud involving an aircraft in Southern California in 2004. QBE said Esquino’s attorney stated in court back then that his client had been under investigation by the DEA for more than a year.


Starwood said in its court filing that it didn’t have enough information to address either the Florida or Southern California case against Esquino.


George Crow, an attorney for Starwood, did not immediately respond to phone and email messages left after business hours Monday.


___


Ibarra reported from Monterrey, Mexico. Raquel Dillon in Los Angeles and Elliot Spagat in San Diego contributed to this report.


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HSBC to pay $1.9 billion U.S. fine in money-laundering case






(Reuters) – HSBC Holdings Plc agreed to pay a record $ 1.92 billion in fines to U.S. authorities for allowing itself to be used to launder a river of drug money flowing out of Mexico and other banking lapses.


Mexico‘s Sinaloa cartel and Colombia’s Norte del Valle cartel between them laundered $ 881 million through HSBC and a Mexican unit, the U.S. Justice Department said on Tuesday.






In a deferred prosecution agreement with the Justice Department, the bank acknowledged it failed to maintain an effective program against money laundering and failed to conduct basic due diligence on some of its account holders.


Under the agreement, which was reported by Reuters last week, the bank agreed to take steps to fix the problems, forfeit $ 1.256 billion, and retain a compliance monitor. The bank also agreed to pay $ 665 million in civil penalties to regulators including to the Office of the Comptroller of the Currency, the Federal Reserve, and the Treasury Department.


“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 organization from the one that made those mistakes,” HSBC Chief Executive Stuart Gulliver said.


THE PLACE TO LAUNDER MONEY


HSBC‘s money-laundering lapses in Mexico and elsewhere were cited in an extensive Senate report earlier this year, but the documents filed in court on Tuesday provided new details.


Despite the known risks of doing business in Mexico, the bank put the country in its lowest risk category, which excluded $ 670 billion in transactions from the monitoring systems, according to the documents.


Bank officials repeatedly ignored internal warnings that HSBC‘s monitoring systems were inadequate, the Justice Department said. In 2008, for example, the CEO of HSBC Mexico was told that Mexican law enforcement had a recording of a Mexican drug lord saying that HSBC Mexico was the place to launder money.


Mexican traffickers used boxes specifically designed to the dimensions of an HSBC Mexico teller’s window to deposit cash on a daily basis.


The agreement also described a vastly understaffed compliance department. At times, only one to four employees were responsible for reviewing alerts identifying suspicious wire transactions. When HSBC processed bulk cash, a business it calls Banknotes, only one or two compliance officials oversaw transactions for 500 to 600 customers, the Justice Department said.


Compliance was “woefully inadequate,” Loretta Lynch, the U.S. Attorney in Brooklyn, said at a press conference.


SANCTIONS VIOLATIONS


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


HSBC separately reached a settlement with British watchdog the Financial Services Authority.


“The HSBC settlement sends a powerful wakeup call to multinational banks about the consequences of disregarding their anti-money laundering obligations,” said Senator Carl Levin, who led the Senate inquiry.


U.S. and European banks have now agreed to settlements with U.S. regulators totaling 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 have been indicted. Instead, prosecutors have used deferred prosecutions, under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing its behavior.


“In trying to reach a result that’s fair and just and powerful, you also have to look at the collateral consequences,” DOJ criminal chief Lanny Breuer said at the Brooklyn press conference.


The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to improve its monitoring of suspicious transactions. Previous directives by regulators to improve oversight came in 2003 and 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 that while the fine was huge in cash terms, the settlement costs were “trivial” in terms of the company’s book value.


HSBC shares closed up 0.56 percent at 644.8 pence in London.


ANTI-MONEY LAUNDERING CONTROLS


HSBC said it had increased spending on anti-money laundering systems by around nine times between 2009 and 2011, exited business relationships and clawed back bonuses for senior executives. As evidence of its determination to change, it cited the hiring last January of Stuart Levey, a former top U.S. Treasury Department official, as chief legal officer.


Under a five-year agreement with the Justice Department, HSBC agreed to have an independent monitor evaluate its progress in improving its compliance.


It also said that as part of the overhaul of its controls, it has launched a global review of its “Know Your Customer” files, which will cost an estimated $ 700 million over five years. The files are designed to ensure that banks do not unwittingly act as conduits for criminal funds.


HSBC‘s settlement comes a day after rival British bank Standard Chartered Plc agreed to a $ 327 million settlement with U.S. law enforcement agencies for sanctions violations, a pact that follows a $ 340 million settlement the bank reached with the New York bank regulator in August.


Such settlements have become commonplace. In what had been the largest settlement until this week, ING Bank NV in June agreed to pay $ 619 million to settle U.S. government allegations that it violated sanctions against countries including Cuba and Iran.


In the United States, J.P. Morgan Chase & Co, Wachovia Corp and Citigroup Inc have been cited for anti-money laundering lapses or sanctions violations.


HSBC‘s failings date to 2003, when the Federal Reserve Bank of New York and New York state regulators ordered it to better monitor suspicious money flows. In 2010, a consent order from the Comptroller of the Currency (OCC) ordered HSBC to review suspicious transactions. At the time, the OCC called HSBC‘s compliance program “ineffective.”


In 2008, the federal prosecutor in Wheeling, West Virginia, began investigating allegations that a local doctor used the bank to launder money from Medicare fraud.


Ultimately, the prosecutor’s office came to believe the case was “the tip of the iceberg” in terms of suspicious transactions conducted through HSBC, according to documents reviewed by Reuters and reported earlier this year.


(Additional reporting by Lawrence White and Michael Flaherty in Hong Kong, Steve Slater in London, Jessica Dye in Brooklyn; Editing by Peter Graff, John Wallace and Alden Bentley)


Business News Headlines – Yahoo! News


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