SEC taking deeper look at Nasdaq’s Facebook plan

























WASHINGTON (Reuters) – Securities regulators are taking a closer look at Nasdaq OMX’s $ 62 million plan to compensate brokers who suffered losses from the exchange operator’s botched handling of Facebook‘s initial public offering.


The U.S. Securities and Exchange Commission said it was instituting proceedings to more closely review the plan in light of the “legal and policy issues raised” by other market players.





















The Commission believes that questions are raised as to whether Nasdaq‘s accommodation proposal… would promote just and equitable principles of trade, protect investors and the public interest, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers,” the SEC wrote in a notice posted online on Monday.


A Nasdaq spokesman declined to comment on the SEC’s decision to extend the timeframe for reviewing the proposal. However, on the company’s earnings call earlier this month, Nasdaq Chief Executive Bob Greifeld said he anticipated such a move by the SEC.


“To the extent the SEC requires more time, then we would agree to that, so I’m not here to predict what they may do, but end of the year is a reasonable guess,” Greifeld said at the time.


Market-makers like Knight Capital Group Inc, UBS AG, Citigroup Inc, and others, say they collectively lost around $ 500 million on May 18 when Facebook first debuted on public markets. A technology issue delayed the IPO for 30 minutes and in the interim, many orders were not included in the opening cross.


That led to delays in many clients’ orders being put through and hours-long waits for confirmations.


Some orders were lost all together, while others were entered repeatedly when market-makers did not receive the electronic confirmations they expected. Those usually arrive within seconds.


Nasdaq has since disclosed that the SEC’s enforcement division is investigating the series of events leading up to the $ 16 billion IPO.


Nasdaq had originally drafted a $ 40 million compensation plan for brokers who lost money, but later raised it to $ 62 million amid criticism that the amount was too low.


Since then, some market-makers and brokers have said they would back the amended proposal. But other market participants have continued to balk at the sum being offered.


The SEC’s latest announcement that it will “institute proceedings” to determine whether or not to approve or disapprove Nasdaq’s proposal is a new, procedural change created by the 2010 Dodd-Frank financial reform law.


The law aimed to streamline the process for the commission to review rule changes filed by exchanges, which act as self-regulatory organizations.


It requires the SEC to either approve, disapprove or institute such proceedings for proposed rule changes no more than 45 days after an exchange submits it for consideration.


If the SEC does not act within the 45 days, the rule automatically gets approved. In this case, the deadline for the SEC to act was October 30.


Typically the SEC will institute proceedings to more closely review rule changes if they are novel, complicated or somewhat more controversial.


A decision to institute proceedings “does not indicate that the Commission has reached any conclusions,” the SEC said in its notice.


The SEC will seek additional public comments to help it reach a final decision on whether to accept Nasdaq’s compensation plan proposal.


The agency said among the main complaints it has already received from commenters include concerns about the “limited categories” of claims eligible for compensation, Nasdaq’s method for determining losses and a requirement for member firms to waive all claims against the exchange operator for their losses.


(Reporting By Sarah N. Lynch; Editing by Jennifer Merritt)


Social Media News Headlines – Yahoo! News



Read More..

Israeli-Palestinian drama ‘The Other Son’ wins Tokyo Film Fest

























LOS ANGELES (TheWrap.com) – Lorraine Levy‘s Palestinian/Israeli drama, “The Other Son,” won the Tokyo Sakura Grand Prix, the top award at the 25th Tokyo International Film Festival, on Sunday night. Levy also took home the best director honors at the festival, which marks the final go-round for festival chairman, Tom Yoda.


The special jury prize went to Kang Yi-kwan’s “Juvenile Offender.” Seo Young-joo, who stars in the film, was awarded the best actor prize. The best actress award went to Neslihan Atagul for “Araf – Somewhere in Between.” Tetsuaki Matsui‘s “Flashback Memories 3D,” about a Japanese didgeridoo player who loses his memory, took home the audience award. The Toyota Earth Grand Prix for the best nature-themed fiction or documentary was given to Valerie Berteau’s “Himself He Cooks.”





















“All the films were excellent,” said Roger Corman, president of the international competition jury. “They each demonstrate the glory and power of cinema to entertain, inform, and teach us.”


For the first time this year, TIFFCOM, the market arm of the festival took place in Odaiba, a man-made island in Tokyo Bay. At TIFFCOM, there were 227 exhibiting companies from 25 countries and regions, up from last year’s 20 countries, with 111 of those entities were new exhibitors.


At the close of the festival, Yoda reflected back on his five years as chairman.


“It is the fifth year since the introduction of the Green Carpet and the Toyota Earth Grand Prix. It is also the 25th memorable year for us. On such as special year, I am very happy to have had the world respected Roger Corman leading the member of the jury,” he said.


Movies News Headlines – Yahoo! News



Read More..

NYU Medical Center Evacuated

























Paramedics and other medical workers began to evacuate patients from New York University Langone Medical Center due to a power outage caused by Tropical Storm Sandy, followed by a failure of backup generators at the hospital, New York City officials said Monday night.


About 200 patients, roughly 45 of whom are critical care patients, were moved out of NYU via private ambulance with the assistance of the New York Fire Department, city officials said. ABC News’ Chris Murphey reported a long line of ambulances outside of NYU Langone waiting to transport patients to other hospitals in the city.





















The hospital had a total of 800 patients two days ago, some patients were discharged before tonight’s evacuation, which was described by emergency management officials as “a total evacuation.”




NYU Medical Center Forced to Evacuate Over 200 Patients Watch Video



According to ABC’s Josh Haskell, 24 ambulances lined the street, waiting to be waved in to pick up patients from NYU Langone Medical Center. “Every 4 minutes a patient comes out and an empty ambulance pulls up. The lobby of the Medical Center is full of hospital personnel, family members, and patients,” Haskell reports.


The patients were moved to a number of area hospitals and according to officials at NYU, the receiving hospitals would notify family members.


Sloan Kettering Hospital spokesman Chris Hickey confirmed to ABC News’ Gitika Ahuja that it is receiving 26 adult patients from NYU, at their request. Hickey said she didn’t know whether they had been admitted yet or what their conditions were.


NewYork-Presbyterian Hospital spokesman Wade Bryan Dotson said it is also accepting patients from NYU at both campuses, Columbia and Weill Cornell.


Meanwhile, ABC News affiliate WABC captured footage of patients being evacuated; among the first patients brought out of the hospital on gurneys was a mother and her newborn child.


On Monday morning, NYU Langone Medical Center had issued a press release that indicated the hospital’s emergency preparedness plan had been activated and that there were “no plans to evacuate” at the time.


Shortly after the reports of an evacuation at NYU Langone, city officials reported that a second major New York City hospital, Bellevue Hospital, was about to lose backup power due to a generator failure.


Requests for more information from NYU Langone Medical Center spokespeople were not immediately returned.


Health News Headlines – Yahoo! News



Read More..

Hitachi buys UK nuclear project


























The UK’s nuclear expansion plans have been boosted after Japan’s Hitachi signed a £700m deal giving it rights to build a new generation of power plants.





















Hitachi is to buy Horizon Nuclear Power, which was intending to build reactors on existing sites at Wylfa, Anglesey, and Oldbury, near Bristol.


Hitachi is buying Horizon from Germany’s E.On and RWE, which are withdrawing from the UK nuclear market.


Prime Minister David Cameron said it was a major step for the UK.


“This is a decades-long, multi-billion pound vote of confidence in the UK, that will contribute vital new infrastructure to power our economy.


“It will support up to 12,000 jobs during construction and thousands more permanent highly skilled roles once the new power plants are operational, as well as stimulating exciting new industrial investments in the UK’s nuclear supply chain. I warmly welcome Hitachi as a major new player in the UK energy sector,” he said.


UK engineering companies Babcock International and Rolls-Royce have signed preliminary contracts to join the Hitachi deal, which the Japanese company said should be completed by the end of November.


There will then be regulatory issues to clear, but once Hitachi’s reactor design is approved by the necessary authorities the company intends to build 6 gigawatts of nuclear capacity, with the first plant generating power in the first half of the next decade.


Up to 6,000 jobs are expected to be created during construction at each site, thousands more in the supply chain, and a further 1,000 permanent jobs at both locations once operational.


Dependency


The Horizon venture, based at Brockworth, Gloucester, currently employs about 90 people and was set up in 2009 as part of the drive to meet the UK’s carbon reduction goals and secure energy demand as old power plants are decommissioned.


But RWE and E.On put the business up for sale in March after Germany’s move to abandon nuclear power in the wake of Japan’s Fukushima disaster.


A consortium made up of EDF and British Gas-owner Centrica has maintained its interest but the two companies have still to decide whether to build two reactors at Hinckley Point, Somerset.


Companies involved in the nuclear industry have expressed caution over entering the UK market. Because of the huge capital costs, stretched over many years, companies want some certainty over how much they might be paid for the electricity generated by their plants.


Last week, the chief executive of EDF, Vincent de Rivaz, told MPs that his company needed safeguards from the government that the finances of future nuclear deals would be “fair”.


Delays over decision-making and financing have led to doubts that new power capacity will come on stream before existing plants go offline. A so-called “energy gap” is likely to lead to rising prices and a greater dependency on gas imports.


Earlier this month, the energy regulator Ofgem warned that the UK risks running out of energy generating capacity in the winter of 2015-16. Its report predicted that the amount of spare capacity could fall from 14% now to only 4% in three years.


However, the government said that its forthcoming Energy Bill would ensure that there was secure supply.


With so many uncertainties still to be resolved, investment in the UK nuclear sector was still a “leap of faith”, said George Borovas, head of nuclear projects at global law firm Pillsbury. So, he said, Hitachi’s decision was a “significant… vote of confidence in the UK nuclear programme”.


‘Milestone’


Hitachi’s proposed facilities will use its advanced boiling water technology, which is already used in four reactors in Japan. Mr Borovas said this technology was a “proven success”, adding: “This should be very helpful with respect to its licensing in the UK and also opens up the possibility of significant export credit agency and commercial financing from Japan.”


Energy and Climate Change Secretary Ed Davey said: “Hitachi bring with them decades of expertise, and are responsible for building some of the most advanced nuclear reactors on time and on budget, so I welcome their commitment to helping build a low-carbon, secure-energy future for the UK.”


Shadow energy secretary Caroline Flint called on the government to use this as an opportunity to encourage investment in nuclear research and design.


Unions also welcomed Hitachi’s move, with Mike Clancy, general secretary designate of Prospect, saying: “The Horizon venture is an important milestone in securing future low-carbon energy generation capacity within the UK and its importance to local and national economies cannot be overstated.


“While Hitachi’s advanced boiling water reactor design has yet to undergo the UK’s generic design assessment approval process, it is a proven technology and therefore any construction in the UK will benefit from lessons learned from its construction in Japan.”


BBC News – Business



Read More..

More than ever, Barca more than club for Catalans

























BARCELONA, Spain (AP) — Nearly 20 minutes into the latest clash between Spain’s most popular football teams, Barcelona‘s 98,000-seat Camp Nou stadium erupted into a deafening roar. Tens of thousands of Catalans in the city at the heart of their separatist movement chanted in unison: “Independence!”


More than ever, FC Barcelona, known affectionately as Barca, is living up to its motto of being “more than a club” for this wealthy northeastern region where Spain’s economic crisis is fueling separatist sentiment.





















Lifelong Barca club member Enric Pujol was at Camp Nou for this month’s game against Real Madrid, the team of Spain’s capital. Wearing his burgundy-and-blue Barca jersey, Pujol also held one of the hundreds of pro-independence “estelada” flags, featuring a white star in a blue triangle, which bristled throughout the stands.


“It was a beautiful emotion to see Camp Nou like that,” said Pujol. “Barca is more than a club because of the values it transmits. It is linked to Catalan culture. In this sense it is a club and a social institution that acts like our flag.”


Barca has been seen as a bastion of Catalan identity dating back to the three decades of dictatorship when Catalans could not openly speak, teach or publish in their native Catalan language. Barcelona writer Manuel Vazquez Montalban famously called the football team “Catalonia‘s unarmed symbolic army.”


Barca-Real Madrid matches have a nickname: “el clasico” — the classic — and they are one of the world’s most-watched sporting events, seen by 400 million people in 30 countries. But local passions run high. In Spain, where football has deep political and cultural connotations, many see the clashes of Spain’s most successful teams as a proxy battle between wealthy Catalonia and the central government in Madrid. If Barca is a symbol of Catalan nationalism, Real Madrid is an emblem of a unified Spain.


“Look, the truth is that ever since the Civil War there has always been tension in Spain,” said Pujol. “Having traveled in Spain, they always look at us as Catalans.”


Ahead of kickoff before any “clasico,” Camp Nou traditionally greets Real Madrid players with a huge mosaic of Barcelona’s burgundy-and-blue made up of colored cards. This year, for the first time, they held up cards forming the red-and-yellow striped Catalan “senyera” flag — an explicit nationalist message. (Barca says it can neither confirm nor deny reports that its away uniform next season will be modeled on the senyera.)


Then came the crowd’s collective shout for independence at 1714 hours — in reference to the year 1714 when Barcelona fell to the troops of Philip V in the War of Spanish Succession. It was organized by a pro-independence group through social media.


Barca fan David Fort sees his team as a vehicle to show the world that Catalonia has its own language and culture, which is distinct from what he called the “bulls and flamenco” associated with Spain.


“We have this love for Barca because we have the chance to be represented around the world,” said Fort, a 38-year-old architect from the southern Catalan town of Tarragona. “When we travel and they ask me if I am Spanish, I say not exactly, but when I mention Barca they say ‘Ah! The Catalan team’, and of course since they are champions you feel proud.”


Barca, like every institution in Spain, was marked by the Spanish Civil War of the late 1930s and resulting right-wing dictatorship that ended after Franco’s death in 1975.


Franco’s soldiers killed Barca’s club president in 1936, and the club was forced to change its name from a Catalan to a Spanish version. And while Real Madrid was identified with the regime, Barca, for many, came to represent Catalan anti-fascist resistance.


“Under Franco, people could not shout ‘Long Live Catalonia!,’ but they could shout ‘Long Live Barca!’ (¡Visca Barca!)” in Catalan, said Ernest Folch, a newspaper columnist who writes about Barca for El Periodico. The chant became a kind of code for expressing Catalan pride.


“Barca is an anomaly. There is no other club with its particular history,” said Folch. “It survived the Franco dictatorship, and has always been a focal point for protest and ferment where sport has mixed with politics.”


And politics is a very hot topic these days in Catalonia.


Voters will go to the polls on Nov. 25 in regional elections sure to be judged as a litmus test of the strength of the pro-independence movement that brought 1.5 million people to the streets of Barcelona on Sept. 11 in the largest rally since the 1970s.


Catalonia is heavily in debt and has in fact asked Spain for a euros 5.9 billion ($ 75 billion) bailout. Even so, regional lawmakers voted on Sept. 27 to hold a referendum on self-determination at a date still to be determined. And although it is still unclear that a “Yes” vote would win, Spain’s central government has called such a referendum unconstitutional and will surely try to stop it from taking place.


That all puts Catalonia, and therefore Barca, in the midst of Spain’s struggles to deal with consequences of back-to-back recessions, 25 percent unemployment, and high public debt that has drawn it into the euro crisis along with already bailed-out Greece, Ireland and Portugal.


Barca’s appeal, of course, transcends its regional identity. The team is beloved throughout the world, and a poll last year found that it had displaced Real Madrid as Spain’s most popular team. Barca has 546 fan clubs in Catalonia, and 841 in the rest of Spain. Some of these fans— even in Catalonia — disagree with what they perceive as the political turn the club has taken in recent years.


“It’s surreal to talk to talk about these ideas related to independence,” said fan Jamie Easton, 27, a Spaniard born in Barcelona to a British father and a mother of Catalan descent. “Barca is a Catalan and Spanish club because Barcelona is part of Spain, and fans can feel however they want.”


The upswing in separatist sentiment in Catalonia has forced both the club and its players— many of whom form the backbone of Spain’s world champion national side — to try a difficult balancing act between supporting their most fervent pro-independence fans without alienating the millions of others who are not.


“We are Barca. We represent Catalonia and we will support whatever Catalans want,” said Barca and Spain midfielder Xavi Hernandez. But he added: “We try to isolate ourselves from everything outside the game. We know the political issue is there, and the people have the right to express themselves however they wish, but we are here to play football and make sure people have fun.”


The glaring exception to the moderate tone is former coach Pep Guardiola, a hugely popular figure in Catalonia, who appeared in a video during the Sept. 11 march saying: “Here you have my vote for independence.”


Two weeks after the politically charged “clasico,” Barca president Sandro Rosell made his first official visit to southern Spain to cool tensions at a meeting of Barca fan clubs.


“I don’t know what information you are receiving here, but I preferred to come here and say on behalf of the club that Barca will never get mixed up in political issues,” Rosell told the 1,000 Spanish fans, promising that Barca would never display a mosaic of the separatist “estelada” flag at Camp Nou.


“This doesn’t mean that this isn’t a Catalan club and that of course we will defend our roots and origins, but one thing shouldn’t be mixed with the other. One thing is politics and the other is identity. Barca unites us all.”


___


AP Writer Jorge Sainz contributed to this report from Madrid.


Europe News Headlines – Yahoo! News



Read More..

Clinton: Facebook post about Benghazi attack not hard “evidence”

























WASHINGTON (Reuters) – U.S. Secretary of State Hillary Clinton said on Wednesday a Facebook post in which an Islamic militant group claimed credit for a recent attack on the U.S. mission in Benghazi, Libya did not constitute hard evidence of who was responsible.


“Posting something on Facebook is not in and of itself evidence. I think it just underscores how fluid the reporting was at the time and continued for some time to be,” Clinton said during an appearance with the Brazilian foreign minister at the State Department.





















Reuters reported on Tuesday that an official email showed officials at the White House and State Department were advised two hours after attackers assaulted the U.S. diplomatic mission on September 11 that an Islamic militant group had claimed credit.


The email, obtained by Reuters from government sources not connected with U.S. spy agencies or the State Department and who requested anonymity, specifically mentioned that the Libyan group called Ansar al-Sharia had asserted responsibility for the attacks.


That and two other emails also made available showed how U.S. diplomats described the attack, even as it was still under way, to Washington.


Clinton, responding to a reporter’s question about the emails, noted that a State Department investigation was under way.


“The independent accountability review board is already hard at work looking at everything, not cherry picking one story here or one document there, but looking at everything – which I highly recommend as the appropriate approach for something as complex as an attack like this,” she said.


“We will find out what happened. We will take whatever measures are necessary to fix anything that needs to be fixed and we will bring those to justice who committed these murders.”


White House spokesman Jay Carney, asked about the emails, noted that Ansar al-Sharia had later denied responsibility for the attack.


“This was an open-source, unclassified email about a posting on a Facebook site. I would also note I think that within a few hours, that organization itself claimed that it had not been responsible. Neither should be taken as fact — that’s why there’s an investigation under way,” he told reporters traveling with President Barack Obama aboard Air Force One to Iowa.


U.S. Ambassador Christopher Stevens and three other Americans were killed in the Benghazi assault, which Obama and other U.S. officials ultimately acknowledged was a “terrorist” attack carried out by militants with suspected links to al Qaeda affiliates or sympathizers.


Administration spokesmen, including Carney, citing an unclassified assessment prepared by the CIA, maintained for days that the attacks likely were a spontaneous protest against an anti-Muslim film.


While officials did mention the possible involvement of “extremists,” they did not lay blame on any specific militant groups or possible links to al Qaeda or its affiliates until intelligence officials publicly alleged that on September 28.


There were indications that extremists with possible al Qaeda connections were involved, but also evidence that the attacks could have erupted spontaneously, they said, adding that government experts were cautious about pointing fingers prematurely.


U.S. intelligence officials have emphasized since shortly after the attack that early intelligence reporting about the attack was mixed.


MISSIVES FROM LIBYA


The records obtained by Reuters consist of three emails dispatched by the State Department’s Operations Center to multiple government offices, including addresses at the White House, Pentagon, intelligence community and FBI, on the afternoon of September 11.


The first email, timed at 4:05 p.m. Washington time – or 10:05 p.m. Benghazi time, 20-30 minutes after the attack on the U.S. diplomatic mission allegedly began – carried the subject line “U.S. Diplomatic Mission in Benghazi Under Attack” and the notation “SBU”, meaning “Sensitive But Unclassified.”


The text said the State Department’s regional security office had reported that the diplomatic mission in Benghazi was under attack. “Embassy in Tripoli reports approximately 20 armed people fired shots; explosions have been heard as well,” it said.


The message continued: “Ambassador Stevens, who is currently in Benghazi, and four … personnel are in the compound safe haven. The 17th of February militia is providing security support.”


A second email, headed “Update 1: U.S. Diplomatic Mission in Benghazi” and timed 4:54 p.m. Washington time, said that the Embassy in Tripoli had reported that “the firing at the U.S. Diplomatic Mission in Benghazi had stopped and the compound had been cleared.” It said a “response team” was at the site attempting to locate missing personnel.


A third email, also marked SBU and sent at 6:07 p.m. Washington time, carried the subject line: “Update 2: Ansar al-Sharia Claims Responsibility for Benghazi Attack.”


The message reported: “Embassy Tripoli reports the group claimed responsibility on Facebook and Twitter and has called for an attack on Embassy Tripoli.”


While some information identifying recipients of this message was redacted from copies of the messages obtained by Reuters, a government source said that one of the addresses to which the message was sent was the White House Situation Room, the president’s secure command post.


Other addressees included intelligence and military units as well as one used by the FBI command center, the source said.


It was not known what other messages were received by agencies in Washington from Libya that day about who might have been behind the attacks.


Intelligence experts caution that initial reports from the scene of any attack or disaster are often inaccurate.


By the morning of September 12, the day after the Benghazi attack, Reuters reported that there were indications that members of both Ansar al-Sharia, a militia based in the Benghazi area, and al Qaeda in the Islamic Maghreb, the North African affiliate of al Qaeda’s faltering central command, may have been involved in organizing the attacks.


One U.S. intelligence official said that during the first classified briefing about Benghazi given to members of Congress, officials “carefully laid out the full range of sparsely available information, relying on the best analysis available at the time.”


The official added, however, that the initial analysis of the attack that was presented to legislators was mixed.


“Briefers said extremists were involved in attacks that appeared spontaneous, there may have been a variety of motivating factors, and possible links to groups such as (al Qaeda in the Islamic Maghreb and Ansar al-Sharia) were being looked at closely,” the official said.


(Additional reporting by Susan Cornwell and Andrew Quinn; Editing by Mary Milliken and David Storey)


Linux/Open Source News Headlines – Yahoo! News



Read More..

Analysis: U.S. foreign bribery penalties for drugmakers may lack bite

























NEW YORK (Reuters) – Global drugmakers are paying tens of millions of dollars to settle U.S. allegations that they bribed their way across emerging markets, but harsher penalties may be needed to deter the practice in untapped regions where billions are at stake.


Federal authorities have cast a wide net to weed out suspected gift-giving and kickbacks to foreign doctors and government officials to gain a foothold in burgeoning new markets in Asia, Eastern Europe and Latin America.





















At least eight of the world’s top 10 drugmakers, including Bristol-Myers Squibb Co, Pfizer Inc and Johnson &, have disclosed U.S. probes under the 1977 Foreign Corrupt Practices Act (FCPA).


Pfizer agreed to pay $ 60 million this year to settle FCPA charges and J&J reached a $ 70 million settlement last year. Pfizer is on track to record $ 10 billion in sales from emerging markets this year, while J&J said Brazil, Russia, India and China accounted for just under 10 percent of the $ 65 billion in sales it reported last year.


With so much at stake outside of established markets in the United States and Europe, some experts say fines like these are hardly a deterrent.


“The $ 60 million fine for Pfizer to a lay person sounds like quite a bit of money, but in perspective it took less than two days of Lipitor sales during its peak. It’s really just chump change for them,” said Michael Leibfried, a senior analyst with market research consulting firm GlobalData. The cholesterol pill at its height was a $ 13 billion a year cash cow for Pfizer.


Kara Brockmeyer, chief of FCPA investigations within the Securities and Exchange Commission’s enforcement division, said the SEC and Department of Justice make a considerable effort to ensure penalties are appropriate and a deterrent. And there has yet to be a repeat FCPA prosecution.


The SEC relies on legal provisions that call for disgorgement of profits based on ill-gotten gains plus penalties. Companies that report violations and cooperate with authorities are often rewarded with penalty reductions.


“I would hate to think the companies view enforcement actions as the cost of doing business,” Brockmeyer told Reuters. “If we find that out, it will certainly increase the size of the penalty,” she said.


The law firm Shearman & Sterling, which puts out a semi-annual report tracking FCPA enforcement, found that penalties across all industries have averaged less than $ 20 million.


In 2009 Danish insulin maker Novo Nordisk paid $ 9 million for FCPA violations, while medical device maker Smith & Nephew this year agreed to $ 22 million in fines and profit disgorgement. The largest FCPA penalty on record was $ 800 million paid in 2008 by Germany-based Siemens.


The industry’s FCPA payments pale in comparison to billion-dollar settlements over allegations drugmakers promoted medications for unapproved uses in the United States. These penalties often involve how much federal Medicare and Medicaid programs spent on the so-called off-label prescriptions.


“I’m not terribly surprised that dollar settlements (for FCPA violations) are strikingly lower because the government isn’t directly being harmed,” said Boston University law professor Kevin Outterson.


PLAYING THE RIGHT WAY


Pfizer’s settlement covered infractions dating back to 2004, including some attributed to drugmaker Wyeth, which it bought in 2009. The company lightened its penalty by voluntarily providing information about kickbacks and bribes in Bulgaria, Croatia, Kazakhstan, Russia, China, the Czech Republic, Italy, Serbia, Indonesia, Pakistan and Saudi Arabia.


“Pfizer subsidiaries in several countries had bribery so entwined in their sales culture that they offered points and bonus programs to improperly reward foreign officials who proved to be their best customers,” Brockmeyer said in a statement at the time the settlement was announced.


Pfizer executives say their emerging market operations will not repeat those practices. It has introduced an anti-corruption audit program, closer monitoring of relationships with non-U.S. healthcare providers and government officials, a mandatory global training program for appropriate employees and enhanced due diligence to make sure buyout targets follow the rules.


J&J said it has enacted similar anti-corruption initiatives.


“We’re not out there to play the game that’s been played before,” said Adele Gulfo, head of Latin America for Pfizer’s emerging markets unit. “We’re either going to win by playing the right way or we’re going to find another place to go.”


Asked if there is still an expectation of payoffs for business in some Latin American circles, Gulfo said: “I’m sure it exists. I’d be naive to say it doesn’t exist.”


Latin American business practices were cited in August as the reason No. 1 generic drugmaker Teva Pharmaceutical Industries was targeted for an FCPA investigation.


J&J also voluntarily reported violations by foreign subsidiaries going back to 2007. Its settlement covered allegations of bribes and kickbacks to win business in Greece, Iraq, Poland and Romania.


DOJ spokeswoman Rebekah Carmichael said the penalties have already had a ripple effect in the industry, forcing companies to “make real, lasting changes to their operations that have altered the way they engage with foreign countries.”


BEYOND THE PENALTIES


The U.S. government sees vast potential for abuse in the drug industry’s business model, said Andy Spalding, assistant law professor at the University of Richmond and a senior editor for The FCPA Blog, which closely follows such cases.


“So much of their research and development, their marketing, their pricing and distribution and sales are occurring in foreign countries,” Spalding said. “And often they are occurring through a big chain of subsidiaries and other operations that make compliance challenging.”


Legal experts noted that any company subject to an FCPA probe is already spending a great deal to investigate the charges internally, and that the final cost can run into hundreds of millions of dollars.


“Overall expense vastly dwarfs the penalty,” said Philip Urofsky, head of Shearman & Sterling’s FCPA practice who previously worked on FCPA cases for the DOJ.


Drugmakers can have a tough time tracking kickbacks to local officials. Such payments, while widespread, are typically smaller than in other industries.


“In pharma there are thousands of daily interactions with government officials. There are always going to be people that step over the line,” Urofsky said.


Since FCPA investigations typically take years to come to a head, Outterson said the jury is still out on whether the current strategy is working.


“Whether they’re taking aggressive enough action to end it is a question we’ll know in five more years … when we see the cases refer to 2012.”


(Editing by Michele Gershberg and David Gregorio)


Seniors/Aging News Headlines – Yahoo! News



Read More..

TSX may open lower; volumes seen down on storm

























(Reuters) – Canada‘s main stock index looked set to open lower on Monday, hurt by uncertainty prevailing over Spanish bailout and lackluster global corporate earnings.


Trading volumes are expected to be thin with U.S. stock markets closed because of the huge and potentially damaging hurricane expected to hit the U.S. East Coast later in the day.





















A spokeswoman for TMX Group Ltd said the Canadian stock markets it operates would remain open.


TOP STORIES


* Progress Energy Resources Corp. : Malaysian state oil firm Petronas will renew a bid for the gas producer, Petronas sources said, seeking to assure the Canadian government that the C$ 5.17 billion deal will benefit the country.


* Hurricane Sandy, a mammoth storm menacing the East Coast, took aim at the most densely populated U.S. region on Monday, forcing hundreds of thousands to seek higher ground, halting public transport and closing schools, businesses and government departments.


* Drugmaker Pfizer Inc and power companies Entergy Corp and NRG Energy Inc said they would postpone releasing quarterly earnings results because of the hurricane approaching the U.S. Northeast.


* TransCanada Corp has formed a joint venture with Phoenix Energy Holdings Ltd to develop a C$ 3 billion pipeline project in Northern Alberta.


* European Union governments will debate a cut of at least 50 billion euros this week as the starting point for negotiations on the bloc’s proposed 1 trillion-euro long-term budget, a source familiar with the issue said.


* Swiss bank UBS AG is expected to cut up to 10,000 jobs, or 16 percent of its workforce, as it contends with shrinking revenue and rising capital requirements, a source familiar with the matter said, in what would be one of the largest layoffs by a bank since the financial crisis.


MARKET SNAPSHOT


* Canada stock futures traded down 0.81 percent


* U.S. stock futures,, were down around 0.68 percent to 0.88 percent <.N>


* European shares <.FTEU3>, <.STOXX> were down <.EU>


COMMODITY PRICE MOVES


* Thomson Reuters-Jefferies CRB Index <.TRJCRBTR>: 296.90; fell 0.12 percent


* Gold futures: $ 1,709; fell 0.11 percent


* US crude: $ 85.55; fell 0.85 percent


* Brent crude: $ 109.28; fell 0.25 percent


* LME 3-month copper: $ 7,703; fell 1.5 percent


CANADIAN STOCKS TO WATCH


* Inmet Mining Corp. : Gold miner Petaquilla Minerals Ltd rejected the company’s revised buyout offer of C$ 130 million and said it continues to explore other strategic alternatives, including discussions with third parties regarding a potential deal. The offer was revised from its from C$ 109 million offer in September.


* Patheon Inc.: The contract drugmaker said it will buy Banner Pharmacaps, a specialty pharmaceutical business, for $ 255 million to expand its oral dosage development and manufacturing services. It also raised it revenue forecast for the year to between $ 740 million and $ 745 million.


* Wescast Industries Inc. : 75 unionized workers at a plant in Strathroy, Ontario, have gone on strike, the Canadian Auto Workers union and the auto parts maker said on Saturday. The company in a brief statement said that it had put plans in place to ensure continued supply of parts to customers.


ANALYST RECOMMENDATIONS


Following is a summary of research actions on Canadian companies reported by Reuters.


* Alamos Gold Inc. : CIBC raises price target to C$ 23 from C$ 21 on the miner’s strong cost control, production growth and increased cash flow for next year.


* DHX Media Ltd. : Canaccord Genuity starts with buy rating and sets target price of C$ 2.15 on the advantages that accrue from the acquisition of Cookie Jar which may result in more tangible growth potential.


* MacDonald Dewttwiler and Associated Ltd. : CIBC raises to sector outperformer from sector performer and raises price target to C$ 66 from C$ 54.50 after the company received anti-trust approval for the acquisition of Space Systems/Loral Inc from Loral Space and Communications Inc.


* Rogers Communications Inc. : National Bank Financial cuts to sector perform from outperform on company’s overstretched valuations following the rally after the second and third-quarter results beat.


ON THE CALENDAR


* No major Canadian economic data scheduled for release


* Major U.S. events and data includes personal income and consumption and core PCE price index


($ 1= $ 1 Canadian)


(Reporting by Chandrashekhar Modi; With additional reporting by Alastair Sharp; Editing by Jeffrey Hodgson)


Economy News Headlines – Yahoo! News



Read More..

Lithuania opens 2nd round of national election

























VILNIUS, Lithuania (AP) — Voting stations have opened in the second round of Lithuania’s parliamentary elections, with the results likely to determine whether the small East European nation continues tough austerity measures in an effort to join the euro zone.


Nearly half of Parliament’s 141 seats are at stake in single-mandate district voting, which takes place two weeks after the party-list round that failed to produce a clear favorite.





















Two center-left opposition parties took the most seats and have pledged to form a new coalition government, but the ruling conservative party, which came in third, still has a chance to emerge victorious as it has candidates in over half the 67 districts where voting will be held Sunday.


Opposition parties have vowed to increase social spending and postpone tentative plans to adopt the euro in 2014.


Europe News Headlines – Yahoo! News



Read More..

New York police officer charged with plan to cook, eat women

























NEW YORK (Reuters) – A New York City police officer was charged on Thursday with conspiring to kidnap, torture, cook and eat women whose names he listed in his computer.


In a criminal complaint unsealed in Manhattan federal court, Gilberto Valle III, 28, of Forest Hills, Queens, was charged with conspiring to cross state lines to kidnap the women and with illegally accessing a federal database.





















The charges carry a maximum sentence of life in prison.


Investigators uncovered a file on Valle’s computer containing the names and pictures of at least 100 women, and the addresses and physical descriptions of some of them, according to the complaint. It said he had undertaken surveillance of some of the women at their places of employment and their homes.


Magistrate Judge Henry Pitman, in denying Valle bail at a hearing on Thursday evening, said: “the allegations in the complaint are profoundly disturbing. I have never seen allegations similar to this in 16 years on the bench.”


Valle’s court-appointed attorney, Julia Gatto, had vigorously argued to the judge that her client, a 6-1/2 year NYPD veteran who appeared before the judge in a red T-shirt and jeans, was all talk and deserved to be released on bail.


“The best this complaint alleges is talk, just idle talk,” Gatto said. “There is no actual crossing the line from fantasy to reality, your honor.”


In an excerpt of a July online conversation with an unnamed co-conspirator, Valle is quoted in the complaint as saying:


“I can just show up at her home unannounced. It will not alert her, and I can knock her out, wait until dark and kidnap her right out of her home.”


“I was thinking of tying her body onto some kind of apparatus … cook her over a low heat, keep her alive as long as possible,” he said. The woman in question is identified only as “Victim 1.”


ONLINE FANTASY GAME?


A Manhattan federal prosecutor, Hadassa Waxman, told the judge on Thursday that Valle was as “close as he could possibly come,” short of “kidnapping a woman, drugging her, cooking her and actually eating her.”


Federal prosecutors, in announcing the charges, said Valle had created a document called “Abducting and Cooking: A Blueprint.” Valle also told an unnamed co-conspirator he would kidnap another woman for $ 5,000, they said.


“This case is all the more disturbing when you consider Valle’s position as a New York City police officer and his sworn duty to serve and protect,” Manhattan U.S. Attorney Preet Bharara said in a statement.


Valle, who an official said had no prior criminal record, was not charged with carrying out any of his suspected plans.


A law enforcement official involved in the investigation characterized Valle’s actions as an online “fantasy game.”


“He was titillated by it,” said the official, who is not authorized to discuss the case publicly. “It looks like he was having these fantasy conversations with people he’s talking to in foreign countries.”


Valle’s attorney, Gatto, agreed. “This was a fantasy, a sexually deviant world where people talk about unreal things,” she said.


Valle’s estranged wife contacted the FBI after discovering pornography on his computer, according to the law enforcement official, who said the couple is separated. Valle was arrested Wednesday by the FBI. He is due back in court on November7.


A spokesman for the Police Department could not be reached for comment.


(Additional Reporting by Chris Francescani; Editing by Paul Thomasch, Vicki Allen and Todd Eastham)


Internet News Headlines – Yahoo! News



Read More..