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<pubDate>Wed, 29 Apr 2009 20:41:53 -0600</pubDate>
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<title>Obama fills key Treasury posts</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M7RM20090324</link>
<pubDate>Mon, 23 Mar 2009 21:08:42 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) President Barack Obama on Monday moved to fill the leadership vacuum at the Treasury Department, tapping former Treasury official Neal S. Wolin as Secretary Timothy Geithner's number two and former White House aide Lael Brainard for the top international job.]]></description>
<guid isPermaLink="false" >USTRE52M7RM20090324</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Corbett B. Daly and David Alexander&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) President Barack Obama on Monday moved to fill the leadership vacuum at the Treasury Department, tapping former Treasury official Neal S. Wolin as Secretary Timothy Geithner's number two and former White House aide Lael Brainard for the top international job.&lt;/p&gt;

&lt;p&gt;Obama also announced that Stuart Levey would stay on as Treasury Undersecretary for Terrorism and Financial Intelligence, a position he has held since 2004.&lt;/p&gt;

&lt;p&gt;Wolin and Brainard must be confirmed by the Senate. Levey does not require reconfirmation to stay. If the Senate approves of Wolin and Brainard, the only remaining vacant Undersecretary position would be for Domestic Finance, the administration's ambassador to Wall Street.&lt;/p&gt;

&lt;p&gt;&quot;These candidates all bring energy, experience, and global leadership to the table. I'm confident their contributions will be valuable to restoring the nation's economy,&quot; said Senator Max Baucus, the Montana Democrat who heads the Senate panel that oversees these confirmations.&lt;/p&gt;

&lt;p&gt;Wolin served as general counsel at the Treasury from 1999 to 2001 and as deputy general counsel from 1995 to 1999. He briefly served in the Obama White House as deputy counsel to the president for economic policy and deputy assistant to the president before being asked to rejoin Treasury.&lt;/p&gt;

&lt;p&gt;Brainard is vice president and founding director of the Global Economy and Development Program at the Brookings Institution, a Washington think tank.&lt;/p&gt;

&lt;p&gt;She served as deputy national economic adviser and deputy assistant to the president for international economics during the Clinton administration, dealing with such issues as the Asian financial crisis and China's role in the global economy.&lt;/p&gt;

&lt;p&gt;Levey, as undersecretary of the Treasury for terrorism and financial intelligence, will lead the office that works to disrupt financial networks that fund international terrorists, proliferators of weapons of mass destruction and drug traffickers.&lt;/p&gt;

&lt;p&gt;The announcements come on the same day Geithner announced his latest effort to shore up the nation's troubled financial system, and after Obama had trouble filling key positions in the government, notably at Treasury.&lt;/p&gt;

&lt;p&gt;Geithner and Treasury have been under fire in recent weeks for not filling the posts sooner and for not releasing details of the administration's plan to rescue troubled banks.&lt;/p&gt;

&lt;p&gt;The president told CBS' 60 Minutes on Sunday that he had &quot;absolutely&quot; asked candidates to fill the Treasury posts but had been turned down because of what he called an &quot;onerous&quot; vetting process.&lt;/p&gt;

&lt;p&gt;&quot;I am grateful for the service of these dedicated and talented individuals and have the highest confidence that, under the leadership of Secretary Geithner, they will serve the American people well as we tackle the challenges ahead of us,&quot; Obama said in a written statement announcing Wolin, Brainard and Levey.&lt;/p&gt;

&lt;p&gt;Geithner himself was forced to answer tough questions from lawmakers during his confirmation process when it was revealed he had failed to pay certain income taxes while working at the International Monetary Fund.&lt;/p&gt;

&lt;p&gt;And several other candidates, including former Senate Majority Leader Tom Daschle, who was Obama's first choice to lead the Department of Health and Human Services, were forced to withdraw their names from consideration after it became known that they, too, had failed to pay taxes.&lt;/p&gt;

&lt;p&gt;In addition to experience at Treasury, Wolin has extensive national security credentials, working for three CIA directors, including current Defense Secretary Robert Gates.&lt;/p&gt;

&lt;p&gt;Prior to joining the Obama White House, Wolin was an insurance executive.&lt;/p&gt;

&lt;p&gt;Brainard also served as Clinton's top aide to the Group of 7/Group of 8 and has taught economics at the Massachusetts of Institute of Technology.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Jeremy Pelofsky)&lt;/p&gt;

&lt;p&gt;(Reporting by Corbett B. Daly and David Alexander; Editing by Carol Bishopric)&lt;/p&gt;</media:text>
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<title>AIG says &quot;handful&quot; of execs depart controversial unit</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52N0AO20090324</link>
<pubDate>Mon, 23 Mar 2009 18:54:27 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - A handful of senior executives working within American International Group Inc's controversial financial products unit have resigned, said a company spokeswoman late on Monday.]]></description>
<guid isPermaLink="false" >USTRE52N0AO20090324</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Lilla Zuill&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - A handful of senior executives working within American International Group Inc's controversial financial products unit have resigned, said a company spokeswoman late on Monday.&lt;/p&gt;

&lt;p&gt;The division is at the heart of the financial problems that brought AIG to the brink of bankruptcy last September, saved only by a taxpayer bailout that has now swelled to as much as $180 billion.&lt;/p&gt;

&lt;p&gt;The spokeswoman declined to specify the exact number of resignations, noting they were expected to be &quot;manageable,&quot; and said there were indications that more will follow.&lt;/p&gt;

&lt;p&gt;The resignations come after $165 million in bonuses paid to employees of this AIG division on March 15 ignited fury across America, with taxpayers questioning why they were footing the bill for individual retention bonuses of up to $6.4 million.&lt;/p&gt;

&lt;p&gt;Under pressure from Capitol Hill, AIG Chief Executive Edward Liddy last week asked many recipients to return at least half the value of the awards. Many have also been asked to take sharp cuts in compensation for 2009.&lt;/p&gt;

&lt;p&gt;On Monday, New York Attorney General Andrew Cuomo said that 15 of the top 20 AIG bonus recipients had returned the awards in full, calculating the value of the awards at about $50 million. He added that he expected as much as half, or about $80 million of total bonuses paid to American employees, to be recovered.&lt;/p&gt;

&lt;p&gt;The tax implications for those who returned the bonuses was not clear, said Cuomo.&lt;/p&gt;

&lt;p&gt;The U.S. House of Representatives last week voted to reclaim 90 percent of the bonuses already paid to employees of the unit by levying a special tax. A similar measure in the U.S. Senate has yet to be decided.&lt;/p&gt;

&lt;p&gt;Workers at AIG Financial Products' Wilton, Connecticut-headquarters have had to deal with ridicule and scorn, dodging picketers outside the workplace, while bus tours past some executive homes. Some have even received death threats, CEO Liddy said last week.&lt;/p&gt;

&lt;p&gt;The financial products unit, as of last month, employed about 370 in offices in Connecticut, London, Paris, Hong Kong, Tokyo and India.&lt;/p&gt;

&lt;p&gt;(Reporting by Lilla Zuill; Editing by Bernard Orr)&lt;/p&gt;</media:text>
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<title>Geithner: Enough money for now for bank bailout</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52N08420090324</link>
<pubDate>Mon, 23 Mar 2009 18:41:46 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Monday it may take more money eventually to handle the government's bailout of stressed banks but there is enough available for now to keep the process going.]]></description>
<guid isPermaLink="false" >USTRE52N08420090324</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Monday it may take more money eventually to handle the government's bailout of stressed banks but there is enough available for now to keep the process going.&lt;/p&gt;

&lt;p&gt;Geithner, who has come under fire for his handling of the financial crisis and the use of government bailout funds to pay big executive bonuses, said he has not asked to resign.&lt;/p&gt;

&lt;p&gt;Geithner spoke Monday night after earlier in the day laying out details of Treasury's plan to set up public-private partnerships to help rid banks of soured assets, offering generous government financing for them to do so.&lt;/p&gt;

&lt;p&gt;&quot;We put in the budget a reserve fund to recognize the reality that it may be that we need more resources to do this,&quot; he said a forum sponsored by The Wall Street Journal.&lt;/p&gt;

&lt;p&gt;&quot;But we have significant resources authorized to us and we're going to move forward to use those now and we want to make sure we have the capacity, working with Congress over time, to make sure that we have sufficient resources to do this right,&quot; he added.&lt;/p&gt;

&lt;p&gt;In response to questions, Geithner said getting the banks back into a condition to resume normal lending was a critical part of restoring financial stability but wasn't enough by itself.&lt;/p&gt;

&lt;p&gt;He said stronger oversight of firms and markets that carry the greatest risks for the financial system was essential, and said if action to do so were delayed it would make it all the more difficult to rebuild consumer and business confidence.&lt;/p&gt;

&lt;p&gt;Financial markets responded enthusiastically on Monday to the plans for investment funds that Geithner presented, but a questioner reminded him that only last week a few lawmakers were suggesting he should resign after the bonuses paid out to executives of bailed-out insurer American International Group raised a storm of protest.&lt;/p&gt;

&lt;p&gt;President Barack Obama said on Sunday night, in an appearance on CBS' &quot;60 Minutes,&quot; that he wouldn't accept Geithner's quitting if he asked to and Geithner said he hadn't done so.&lt;/p&gt;

&lt;p&gt;&quot;I did not ask,&quot; Geithner said. &quot; I feel a great sense of privilege working for this president at this time.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Glenn Somerville; editing by Leslie Adler)&lt;/p&gt;</media:text>
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<title>AIG employees hand over bonuses: NYAG Cuomo</title>
<link>http://www.reuters.com/article/topNews/idUSN2344988120090324</link>
<pubDate>Mon, 23 Mar 2009 18:24:17 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Fifteen of 20 American International Group leading bonus recipients have agreed to give them back in full, said New York's top legal officer who is probing into $165 million in executive pay at the troubled company bailed out by the U.S. government.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9389983&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Grant McCool and Lilla Zuill&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Fifteen of 20 American International Group leading bonus recipients have agreed to give them back in full, said New York's top legal officer who is probing into $165 million in executive pay at the troubled company bailed out by the U.S. government.&lt;/p&gt;

&lt;p&gt;New York Attorney General Andrew Cuomo told reporters on a conference call on Monday that he hopes to recoup $80 million of bonus payments made to Americans, or about half of the $165 million paid by the giant insurer on March 15.&lt;/p&gt;

&lt;p&gt;An AIG spokeswoman said late Monday a &quot;handful&quot; of senior executives have resigned from its Financial Products unit, which Cuomo blamed last week for bringing the insurer to the brink of collapse. It was unclear if any of the executives with the top bonuses had resigned.&lt;/p&gt;

&lt;p&gt;The spokeswoman declined to specify the number of resignations, noting they were &quot;manageable,&quot; and said there were indications that more will follow.&lt;/p&gt;

&lt;p&gt;Cuomo, who has pressed AIG and other banks and companies over the hot button issue of bonuses, said that so far he calculated that $50 million had been paid back by employees of the AIG Financial Products unit.&lt;/p&gt;

&lt;p&gt;&quot;A number of them (employees) have risen to the occasion and I applaud them,&quot; said Cuomo, whose office is looking into whether AIG and others broke securities laws by not fully disclosing information about the award of bonuses to executives for 2008.&lt;/p&gt;

&lt;p&gt;Nine of the 10 executives who received top bonuses have agreed to return them, Cuomo said. He said about $80 million was paid to Americans, the rest outside of U.S. jurisdiction.&lt;/p&gt;

&lt;p&gt;Cuomo has said he wanted to make public the names and details of bonus recipients, but he was assessing security and privacy of individuals following death threats against some employees.&lt;/p&gt;

&lt;p&gt;&quot;Our legal theory is fraudulent conveyance, and we think it is a powerful legal theory,&quot; Cuomo told reporters. &quot;But if a person returns the money I don't it is in the public interest to name them.&quot;&lt;/p&gt;

&lt;p&gt;He added that those people will see their name disappear from his list permanently.&lt;/p&gt;

&lt;p&gt;AIG said in a statement that it was reviewing responses of other employees in the Financial Products division.&lt;/p&gt;

&lt;p&gt;&quot;We are deeply gratified that a vast majority of FP's senior leadership have expressed a willingness to forsake their recent retention payments,&quot; the statement said.&lt;/p&gt;

&lt;p&gt;(Reporting by Grant McCool and Lilla Zuill; editing by Richard Chang)&lt;/p&gt;</media:text>
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<title>Senate push over AIG bonuses appears to lose steam</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52N05020090324</link>
<pubDate>Mon, 23 Mar 2009 18:24:14 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Senate Majority Leader Harry Reid vowed on Monday to push to recoup millions of dollars in executive bonuses at taxpayer-funded insurer American International Group, but the legislation appeared to be losing momentum in the Senate.]]></description>
<guid isPermaLink="false" >USTRE52N05020090324</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Thomas Ferraro and Susan Cornwell&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - U.S. Senate Majority Leader Harry Reid vowed on Monday to push to recoup millions of dollars in executive bonuses at taxpayer-funded insurer American International Group, but the legislation appeared to be losing momentum in the Senate.&lt;/p&gt;

&lt;p&gt;President Barack Obama voiced concern about proposals to slap recipients with punitive taxes, and some of the executives affected gave the money back, leading some senators to suggest looking for alternatives to legislation.&lt;/p&gt;

&lt;p&gt;&quot;Hopefully this is a problem that can get resolved in a different way&quot; than legislation, Democratic Senator Kent Conrad, chairman of the chamber's budget committee, told reporters after the news broke that nine of 10 executives who received top bonuses have agreed to return them.&lt;/p&gt;

&lt;p&gt;A little later, Reid's spokesman Jim Manley also said more time was needed to decide what to do. &quot;In light of the concerns raised by the administration and Senate Republicans we are going to need some additional time to discuss next steps,&quot; Manley told Reuters.&lt;/p&gt;

&lt;p&gt;One key Republican, however, warned against backing down, although it was not clear whether he knew that some AIG bonuses had been returned. Senator Charles Grassley expressed indignation that Obama was skeptical of the need for legislation.&lt;/p&gt;

&lt;p&gt;'SPECIAL INTERESTS'&lt;/p&gt;

&lt;p&gt;&quot;I think all the special interests that the president has said he's fighting are raising their ugly head, and he's submissive to them,&quot; Grassley told reporters outside the Senate.&lt;/p&gt;

&lt;p&gt;Earlier on Monday, before New York's top legal officer said that nine of the 10 AIG executives who received top bonuses had agreed to return them, Reid told the Senate that the bonuses had to be reclaimed.&lt;/p&gt;

&lt;p&gt;&quot;We will continue to work to right this egregious misuse of taxpayer dollars,&quot; said Reid. &quot;With Republican cooperation, we can quickly and responsibly return these funds to the American people.&quot;&lt;/p&gt;

&lt;p&gt;His comments came after days of public outrage over $165 million in employee bonuses paid out by the Connecticut-based company, which has received nearly $180 billion in federal aid. Both political parties appear divided over plans to turn to the tax code to recoup the cash.&lt;/p&gt;

&lt;p&gt;The House of Representatives passed its own bill last week aiming to impose a 90 percent tax on bonuses for certain executives at companies that receive taxpayer bailouts.&lt;/p&gt;

&lt;p&gt;But some analysts have said such moves could be difficult to enforce. They may be open to legal challenges and could be counterproductive if they lead to an exodus of experienced professionals from financial companies.&lt;/p&gt;

&lt;p&gt;WAIT UNTIL NEXT WEEK&lt;/p&gt;

&lt;p&gt;Republican Senator Jon Kyl proposed the Senate wait until at least next week before it takes any votes on the bonus issue. &quot;I urge my colleagues to take a deep breath here, talk to the administration, hold a hearing and see if there isn't a better way&quot; than a punitive tax, he said.&lt;/p&gt;

&lt;p&gt;Kyl suggested that Treasury Secretary Timothy Geithner might have the authority, under terms of the $787 billion economic stimulus package, to claw the money back. And Democratic Senator Carl Levin told reporters he was looking into the possibility that the government already had the power to get the money back.&lt;/p&gt;

&lt;p&gt;The House bill would apply to executives with incomes over $250,000 who worked for AIG or other companies that got at least $5 billion in government aid. That could ensnare others who receive federal help, such as mortgage financing company Fannie Mae.&lt;/p&gt;

&lt;p&gt;The alternative Senate bill -- proposed by Grassley and fellow Republican Olympia Snowe and Democrats Max Baucus and Ron Wyden -- would impose a 70 percent excise tax on the bonuses.&lt;/p&gt;

&lt;p&gt;Baucus told reporters on Monday evening that he had been talking to the White House about the matter, but gave no details.&lt;/p&gt;

&lt;p&gt;Obama, who has said he shares the public anger over the bonuses, has also voiced concern about using the tax code to punish a group of people, which could raise constitutional questions.&lt;/p&gt;

&lt;p&gt;&quot;We can't govern out of anger. We've got to try to make good decisions based on the facts,&quot; Obama told CBS's &quot;60 Minutes&quot; program. &quot;As a general proposition, you don't want to be passing laws that are just targeting a handful of individuals.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by Deborah Charles and Richard Cowan; editing by Mohammad Zargham)&lt;/p&gt;</media:text>
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<title>Plane in deadly Montana crash was crowded</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M7XW20090323</link>
<pubDate>Mon, 23 Mar 2009 17:59:48 -0600</pubDate>
<description><![CDATA[BUTTE, Montana (Reuters) - The plane that crashed in Montana and killed all seven children and seven adults aboard had more passengers than seats, a federal official said on Monday.]]></description>
<guid isPermaLink="false" >USTRE52M7XW20090323</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9390700&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Emilie Ritter&lt;/p&gt;

&lt;p&gt;BUTTE, Montana (Reuters) - The plane that crashed in Montana and killed all seven children and seven adults aboard had more passengers than seats, a federal official said on Monday.&lt;/p&gt;

&lt;p&gt;National Transportation Safety Board Acting Chairman Mark Rosenker said his team is investigating whether the 10-seat plane was carrying too much weight and why it nose-dived short of the runway in mountainous Butte, Montana. The single-engine plane had no &quot;black box&quot; flight data recorder and the investigation could take months.&lt;/p&gt;

&lt;p&gt;All the children were under age 10. Only one, a 1-year-old, by regulation could have been seated on an adult's lap for the flight. That left 13 people and 10 seats.&lt;/p&gt;

&lt;p&gt;&quot;We are going to have to try and understand how, and why, there were three additional people on board the aircraft.&quot; Rosenker told reporters.&lt;/p&gt;

&lt;p&gt;He stopped short of saying the plane was overcrowded. Officials changed the number of passengers and seats aboard the plane as the investigation progressed.&lt;/p&gt;

&lt;p&gt;Rosenker said three families were in the Pilatus PC-12 turboprop plane heading from California to a ski vacation near Bozeman, Montana. Bozeman and Butte are towns of about 30,000 each in the mountainous western part of the state.&lt;/p&gt;

&lt;p&gt;The pilot, a 65-year-old man with years of flying experience, requested twice to divert to Butte from Bozeman, without giving a reason, and both times the Salt Lake City flight controller approved the change, Rosenker said.&lt;/p&gt;

&lt;p&gt;Rosenker said the plane appeared to have enough fuel. Witnesses, including Harley Howard, described the plane flying low and suddenly diving.&lt;/p&gt;

&lt;p&gt;&quot;All of a sudden, the airplane tail lifted up and as it lifted, it spun around and was at a 90 degree angle to the ground, and the top of the airplane was facing us and just looked like someone took a hold of the plane and it just drove into the ground,&quot; he said. &quot;There was a ball of fire when it crashed.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Emilie Ritter, writing by Peter Henderson, editing by Bill Trott)&lt;/p&gt;</media:text>
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<title>Obama names Wolin as deputy Treasury secretary</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M7RM20090323</link>
<pubDate>Mon, 23 Mar 2009 17:42:58 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama moved to fill three of the four most senior Treasury Department positions on Monday, including announcing his intent to nominate former department counsel Neal Wolin as deputy Treasury secretary.]]></description>
<guid isPermaLink="false" >USTRE52M7RM20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama moved to fill three of the four most senior Treasury Department positions on Monday, including announcing his intent to nominate former department counsel Neal Wolin as deputy Treasury secretary.&lt;/p&gt;

&lt;p&gt;Obama also named Lael Brainard, a Brookings economist, as undersecretary of the Treasury for international affairs and said he had decided to keep Stuart Levey as undersecretary of the Treasury for terrorism and financial intelligence.&lt;/p&gt;

&lt;p&gt;Wolin and Brainard must be confirmed by the Senate. Levey was confirmed in his post in 2004 and is being asked to remain so does not require reconfirmation.&lt;/p&gt;

&lt;p&gt;Wolin served as general counsel at the Treasury from 1999 to 2001 and as deputy general counsel from 1995 to 1999. He briefly served in the Obama White House as deputy counsel to the president for economic policy and deputy assistant to the president before being asked to rejoin Treasury.&lt;/p&gt;

&lt;p&gt;Brainard is vice president and founding director of the Global Economy and Development Program at the Brookings Institution think tank in Washington.&lt;/p&gt;

&lt;p&gt;She served as deputy national economic adviser and deputy assistant to the president for international economics during the Clinton administration, dealing with such issues as the Asian financial crisis and China's role in the global economy.&lt;/p&gt;

&lt;p&gt;Levey, as undersecretary of the Treasury for terrorism and financial intelligence, will lead the office that works to disrupt financial networks that fund international terrorists, proliferators of weapons of mass destruction and drug traffickers.&lt;/p&gt;

&lt;p&gt;(Reporting by David Alexander; Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>More Madoff assets found, U.S.-British probe linked</title>
<link>http://www.reuters.com/article/topNews/idUSN2329745020090323</link>
<pubDate>Mon, 23 Mar 2009 16:36:24 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - A court-appointed trustee has located more than $1 billion of jailed swindler Bernard Madoff's assets, his house in France could be seized and U.S. prosecutors are cooperating with a British agency that investigates organized crime, a court heard on Monday.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9390115&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - A court-appointed trustee has located more than $1 billion of jailed swindler Bernard Madoff's assets, his house in France could be seized and U.S. prosecutors are cooperating with a British agency that investigates organized crime, a court heard on Monday.&lt;/p&gt;

&lt;p&gt;Assistant U.S. Attorney Barbara Ward made the reference to the British-based Serious Organized Crime Agency in a hearing in the civil case against Madoff in Manhattan federal court, but it was not further explained.&lt;/p&gt;

&lt;p&gt;A spokeswoman for the U.S. Attorney's Office in Manhattan declined comment.&lt;/p&gt;

&lt;p&gt;Former Nasdaq stock market chairman and investment adviser Madoff pleaded guilty on March 12 to 11 criminal charges, including money laundering, in running the biggest fraud in Wall Street history. The fraud took in as much as $65 billion over 20 years. Madoff was jailed pending sentencing in June.&lt;/p&gt;

&lt;p&gt;Madoff, 70, admitted moving hundreds of millions of dollars back and forth between his New York firm Bernard L. Madoff Investment Securities LLC and his international arm based in London.&lt;/p&gt;

&lt;p&gt;Ward told Judge Louis Stanton in U.S. District Court in Manhattan that her office was working with the serious fraud office in London and the Serious Organized Crime Agency, which works on financial cases to counter money laundering.&lt;/p&gt;

&lt;p&gt;&quot;There may be criminal implications,&quot; the prosecutor said in arguments over whether a court-appointed trustee should have power of attorney over stock of the London firm, which was listed as a personal asset of Madoff's.&lt;/p&gt;

&lt;p&gt;The judge did not immediately make a ruling on the issue.&lt;/p&gt;

&lt;p&gt;The court heard that the trustee, Irving Picard, had located $75 million in Gibraltar, bringing the total amount of assets found to distribute to his defrauded customers to more than $1 billion. Picard announced in February that he had found $946.4 million.&lt;/p&gt;

&lt;p&gt;Picard's lawyer David Sheehan told the hearing that he expected &quot;the French will grab&quot; the Madoff house in France. Madoff and his wife owned four properties, three in the United States.&lt;/p&gt;

&lt;p&gt;Sheehan said the trustee needed the power of attorney to go into foreign jurisdictions &quot;at a moments notice&quot; as he goes about his work of trying to recover as much money as possible for the swindler's former customers.&lt;/p&gt;

&lt;p&gt;The prosecutor argued that it was too soon in the investigation to give the trustee power of attorney over the London firm's stock.&lt;/p&gt;

&lt;p&gt;The case is Securities and Exchange Commission v. Madoff et al 08-10791 U.S. District Court for the Southern District of New York (Manhattan).&lt;/p&gt;

&lt;p&gt;(Reporting by Grant McCool)&lt;/p&gt;</media:text>
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<title>U.S. market cops ramp up fraud training after Madoff</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M7BL20090323</link>
<pubDate>Mon, 23 Mar 2009 16:36:18 -0600</pubDate>
<description><![CDATA[WASHINGTON/NEW YORK (Reuters) - Burned by their failure to uncover the biggest Ponzi scheme in history, U.S. securities regulators are ramping up training of staff on how to spot the warning signs of market swindles.]]></description>
<guid isPermaLink="false" >USTRE52M7BL20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON/NEW YORK (Reuters) - Burned by their failure to uncover the biggest Ponzi scheme in history, U.S. securities regulators are ramping up training of staff on how to spot the warning signs of market swindles.&lt;/p&gt;

&lt;p&gt;The Securities and Exchange Commission has been widely criticized for failing to spot the $65 billion fraud carried out by Wall Street financier Bernard Madoff. Now its inspection unit is offering 90-minute classes for employees.&lt;/p&gt;

&lt;p&gt;&quot;We're doing it because of Bernie Madoff,&quot; said one SEC official who spoke on condition of anonymity because staff are not authorized to speak on the SEC's behalf.&lt;/p&gt;

&lt;p&gt;Madoff has confessed to running a massive Ponzi scheme -- in which funds of new investors were used to pay returns to existing members -- in a scandal that shook global finance.&lt;/p&gt;

&lt;p&gt;The first class, replete with PowerPoint slides, called &quot;Basics of Ponzi schemes, affinity fraud and related schemes,&quot; was given on March 9. A second class teaching &quot;Exam issues and techniques for detecting Ponzi schemes, affinity fraud and related schemes&quot; was scheduled for Monday, March 23.&lt;/p&gt;

&lt;p&gt;Lori Richards, director of the SEC's Office of Compliance Inspections and Examinations, said the agency was increasing training for detecting methods fraudsters use, including keeping two sets of books, creating false statements and lying about investment returns.&lt;/p&gt;

&lt;p&gt;&quot;The training will help examiners spot the 'yellow flags' of fraud and to investigate them using the latest fraud detection techniques,&quot; she told Reuters on Monday.&lt;/p&gt;

&lt;p&gt;SEC Chairman Mary Schapiro is also seeking a better way for handling tips and whistle-blower complaints and has taken steps to bolster the agency's enforcement unit.&lt;/p&gt;

&lt;p&gt;The agency was excoriated by whistle-blower Harry Markopolos during congressional testimony on February 4. He sent a detailed memo to the SEC in 2005 with 29 red flags on Madoff's operations that were never followed up by enforcement or Office of Compliance staff in a meaningful way.&lt;/p&gt;

&lt;p&gt;Madoff pleaded guilty to his massive swindle on March 12. He now is in jail while awaiting sentencing in June. He says he acted alone but the government continues to investigate.&lt;/p&gt;

&lt;p&gt;(editing by William Schomberg and Dan Grebler)&lt;/p&gt;</media:text>
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<title>Nine of top 10 AIG bonuses returned: NYAG Cuomo</title>
<link>http://www.reuters.com/article/topNews/idUSN2344988120090323</link>
<pubDate>Mon, 23 Mar 2009 16:31:36 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Nine of the 10 executives who received top bonuses from American International Group have agreed to return them, New York's top legal officer said on Monday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - Nine of the 10 executives who received top bonuses from American International Group have agreed to return them, New York's top legal officer said on Monday.&lt;/p&gt;

&lt;p&gt;New York Attorney General Andrew Cuomo told reporters on a conference call that he hopes to recoup $80 million of bonus payments, or about half of the $165 million paid by the giant insurer on March 15.&lt;/p&gt;

&lt;p&gt;&quot;A number of them have risen to the occasion and I applaud them,&quot; said Cuomo, who is investigating several banks and firms, including AIG, who received bailout money and paid handsome bonuses to employees.&lt;/p&gt;

&lt;p&gt;Cuomo's investigation is intended to determine if AIG broke securities laws by not fully disclosing information about the award of bonuses to executives for 2008 even as it was on the brink of failure and relied on U.S. government money to stay afloat.&lt;/p&gt;

&lt;p&gt;(Reporting by Grant McCool and Lilla Zuill; Editing by Bernard Orr.)&lt;/p&gt;</media:text>
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<title>Connecticut eyes AIG bonuses, possible remedies</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M4OJ20090323</link>
<pubDate>Mon, 23 Mar 2009 16:17:22 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - The state of Connecticut is analyzing the details of bonuses paid by American International Group to see whether they violated state law and what possible remedies might be pursued, the Commissioner of Consumer Protection said on Monday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - The state of Connecticut is analyzing the details of bonuses paid by American International Group to see whether they violated state law and what possible remedies might be pursued, the Commissioner of Consumer Protection said on Monday.&lt;/p&gt;

&lt;p&gt;The list of remedies includes issuing a cease and desist order or restitution to the federal government, Commissioner Jerry Farrell, explained by telephone.&lt;/p&gt;

&lt;p&gt;Connecticut Attorney General Richard Blumenthal said there were $218 million of bonuses, a higher figure than the $165 million the Connecticut governor said the company reported.&lt;/p&gt;

&lt;p&gt;This discrepancy now will be probed, Farrell said.&lt;/p&gt;</media:text>
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<title>AIG rivals met Bernanke to complain: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M0CM20090323</link>
<pubDate>Mon, 23 Mar 2009 16:17:22 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Some of American International Group Inc's biggest rivals have urged U.S. Federal Reserve Chairman Ben Bernanke to prevent the insurance giant from using the government rescue to win an advantage, particularly by cutting prices, The Wall Street Journal reported.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9389977&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - Some of American International Group Inc's biggest rivals have urged U.S. Federal Reserve Chairman Ben Bernanke to prevent the insurance giant from using the government rescue to win an advantage, particularly by cutting prices, The Wall Street Journal reported.&lt;/p&gt;

&lt;p&gt;In an article posted on its website, the Journal said AIG's competitors had complained directly to Bernanke at a Mar 4 meeting at the St. Regis Hotel in Washington.&lt;/p&gt;

&lt;p&gt;Bernanke said he would look into the complaints, the Journal reported, citing unidentified people familiar with the situation.&lt;/p&gt;

&lt;p&gt;Industry executives and competitors told Reuters in December that AIG has been lowering prices to win new business and boost market share after receiving bailout dollars, even as market fundamentals suggest that prices need to be raised.&lt;/p&gt;

&lt;p&gt;AIG was rescued by the U.S. government in September after it nearly went bankrupt trying to meet obligations on bad mortgage bets.&lt;/p&gt;

&lt;p&gt;So far, the government has committed $180 billion in bailout funds to the insurer.&lt;/p&gt;

&lt;p&gt;Last month, Rep. Paul Kanjorski, chairman of the House subcommittee on capital markets and insurance, said he would dig into claims that AIG is driving down prices to win business.&lt;/p&gt;

&lt;p&gt;Kanjorski and Spencer Bachus, the top Republican on the U.S. House Financial Services Committee, asked the Government Accountability Office to probe for answers.&lt;/p&gt;

&lt;p&gt;The government watchdog said recently it has not seen any indications that AIG's insurance pricing is inadequate or out-of-line with previous pricing, although there is a general consensus that the insurer may be pricing products more aggressively.&lt;/p&gt;

&lt;p&gt;AIG has denied its rivals' allegations.&lt;/p&gt;

&lt;p&gt;(Reporting by Anupreeta Das and Lilla Zuill; Editing by Dhara Ranasinghe)&lt;/p&gt;</media:text>
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<title>AIG starts makeover, changes sign at NY office</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1KE20090323</link>
<pubDate>Mon, 23 Mar 2009 16:17:22 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Workmen rolled up their sleeves at American International Group Inc this weekend to take down the most prominent sign at the downtown Manhattan offices of the embattled insurer that has become the scorn of America.]]></description>
<guid isPermaLink="false" >USTRE52M1KE20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Lilla Zuill&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Workmen rolled up their sleeves at American International Group Inc this weekend to take down the most prominent sign at the downtown Manhattan offices of the embattled insurer that has become the scorn of America.&lt;/p&gt;

&lt;p&gt;A spokesman said the company had decided to replace the large AIG sign -- outside the entrance to its property-casualty offices -- as part of its plan to change that operation's name to AIU Holdings Ltd.&lt;/p&gt;

&lt;p&gt;The move is designed to &quot;distinguish these well-capitalized businesses from AIG,&quot; said a second spokesman.&lt;/p&gt;

&lt;p&gt;The signage is outside the company's Water Street offices, around the corner from AIG's Pine Street headquarters, which has long only been marked by an understated brass plaque inscribed &quot;American International Building.&quot;&lt;/p&gt;

&lt;p&gt;AIG has said it may sell the headquarter building, as part of its drive to raise funds to repay its debt to the U.S. government.&lt;/p&gt;

&lt;p&gt;The AIG name, once the proud moniker of the world's largest insurer, has become tainted since large losses on mortgage bets necessitated a government bailout of $85 billion last September. Twice since more aid has been given to AIG, with the rescue now costing U.S. taxpayers up to $180 billion.&lt;/p&gt;

&lt;p&gt;The AIG name has become even more tarnished in the past week, after a scandal erupted over bonuses to executives of a controversial financial products unit that caused much of the $100 billion in losses over the past year.&lt;/p&gt;

&lt;p&gt;A rebranding to distance the giant insurer's sprawling operations across 130 countries away from the AIG name are likely to continue.&lt;/p&gt;

&lt;p&gt;&quot;I think the AIG name is so thoroughly wounded and disgraced that we're probably going to have to change it,&quot; Liddy told a U.S. House of Representatives subcommittee last Wednesday.&lt;/p&gt;

&lt;p&gt;WHAT'S IN A NAME&lt;/p&gt;

&lt;p&gt;AIG's roots date back to China in 1919 but it has only carried the American International name since 1967, when the new company was incorporated to hold the shares of the group's growing insurance operations.&lt;/p&gt;

&lt;p&gt;Since AIG's bailout last September, other of the company's businesses have also rebranded, in most cases returning to earlier names.&lt;/p&gt;

&lt;p&gt;A U.S. auto insurance unit, AIG Direct, for example, has changed its name back to 21st Century, the name it used until 2007 when AIG, already a majority owner, acquired 100 percent of the company.&lt;/p&gt;

&lt;p&gt;In the case of AIU Holdings, the company said earlier this month that it was renaming its global property-casualty business ahead of plans to eventually spin off about 20 percent of this business in a public stock offering, and could sell off more over time.&lt;/p&gt;

&lt;p&gt;(Reporting by Lilla Zuill and Karen Brettell; editing by Richard Chang)&lt;/p&gt;</media:text>
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<title>AIG furor may have helped funds in U.S. toxic plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M76520090323</link>
<pubDate>Mon, 23 Mar 2009 15:45:42 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - In an ironic twist, public anger about massive bonuses at bailed-out insurer American International Group may have helped big investors land a sweeter deal in the U.S. government's latest financial rescue plan.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Kristina Cooke and Jennifer Ablan - Analysis&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - In an ironic twist, public anger about massive bonuses at bailed-out insurer American International Group may have helped big investors land a sweeter deal in the U.S. government's latest financial rescue plan.&lt;/p&gt;

&lt;p&gt;Managers of some major funds last week showed reluctance about joining government plans to rescue the economy on fears that Washington might retroactively change the terms of any deal including imposing limits on compensation or profits.&lt;/p&gt;

&lt;p&gt;Those fears were prompted by fury in Congress over $165 million in bonus payments made to executives at failed insurance group AIG.&lt;/p&gt;

&lt;p&gt;The U.S. Treasury Department spent the weekend encouraging big investors to get involved in a new, public-private investment plan which aims to soak up as much as $1 trillion worth of bad assets that are hindering banks from lending.&lt;/p&gt;

&lt;p&gt;The bank rescue plan is a central plank of U.S. efforts to fight off recession. Under its terms announced on Monday, the government will provide incentives in terms of financing and loans to attract private capital.&lt;/p&gt;

&lt;p&gt;Crucially, several leading money managers said they supported the plan.&lt;/p&gt;

&lt;p&gt;&quot;It's clear they needed to get buy-in from the private sector,&quot; said Sharyn O'Halloran, a political economist at Columbia University.&lt;/p&gt;

&lt;p&gt;The White House also made it clear that it opposes any rule changes after the fact and U.S. Treasury Secretary Timothy Geithner said asset managers participating in the public-private funds will not be subject to pay curbs.&lt;/p&gt;

&lt;p&gt;&quot;FABULOUS DEAL&quot;&lt;/p&gt;

&lt;p&gt;&quot;Funds are getting a fabulous deal here, probably too fabulous,&quot; said Robert Goldberg, adjunct professor of finance at Adelphi University and managing partner of investment advisor Maratan Partners.&lt;/p&gt;

&lt;p&gt;Two of the largest U.S. money managers, PIMCO and BlackRock, have expressed interest in the plan.&lt;/p&gt;

&lt;p&gt;PIMCO's co-chief investment officer Bill Gross called it the first &quot;win-win-win policy to be put on the table&quot;.&lt;/p&gt;

&lt;p&gt;&quot;We are intrigued by the potential double-digit returns as well as the opportunity to share them with not only clients but the American taxpayer,&quot; Gross told Reuters.&lt;/p&gt;

&lt;p&gt;Geithner and other officials have stressed that the government was unable to buy assets on its own.&lt;/p&gt;

&lt;p&gt;Big investors stayed away from the debut of another new Federal Reserve consumer lending program last week, raising concerns they might also turn down the public-private investment plan.&lt;/p&gt;

&lt;p&gt;&quot;We simply need them,&quot; Christina Romer, head of the White House Council of Economic Advisers told Fox News Sunday, a day before the plan was announced.&lt;/p&gt;

&lt;p&gt;&quot;They are firms that are being the good guys here, are coming into a market that hasn't existed to try to help us get these toxic assets off banks' balance sheets,&quot; Romer said.&lt;/p&gt;

&lt;p&gt;Despite those assurances, concerns about political backlash are likely to linger, said Sung Won Sohn, professor of economics at California State University.&lt;/p&gt;

&lt;p&gt;The Treasury will initially contribute up to $100 billion and will combine that with private capital before leveraging the total with loans from the Federal Reserve and the Federal Deposit Insurance Corp.&lt;/p&gt;

&lt;p&gt;The terms mean potentially huge profits for funds involved. At the same time, potential losses for taxpayers could be much larger than the amount the Treasury is using to seed the program, since the FDIC and Fed are extending loans.&lt;/p&gt;

&lt;p&gt;Geithner said creating the public-private partnerships would make it easier for banks to raise private capital, a key measure of recovery in the U.S. economy because they would be able to survive on their own.&lt;/p&gt;

&lt;p&gt;However, he said investors had to be ready to take &quot;some risk&quot;.&lt;/p&gt;

&lt;p&gt;But Paul Krugman, a Nobel prize-winning economist, wrote in a New York Times column on Monday that the plan is a &quot;one-way bet&quot; for investors.&lt;/p&gt;

&lt;p&gt;&quot;If asset values go up, the investors profit, but if they go down, the investors can walk away from their debt. So this isn't really about letting markets work,&quot; Krugman wrote. &quot;It's just an indirect, disguised way to subsidize asset purchases.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Kristina Cooke and Jennifer Ablan)&lt;/p&gt;</media:text>
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<title>New U.S. bank plan welcomed by funds and debt markets</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M6YV20090323</link>
<pubDate>Mon, 23 Mar 2009 15:00:30 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - A succesful U.S. Treasury plan to rid bank balance sheets of poorly performing assets may be the key to unclogging the arteries of global credit markets, but the success of the U.S. Treasury's latest plan itself depends on widespread participation by private investors.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Walden Siew - Analysis&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - A succesful U.S. Treasury plan to rid bank balance sheets of poorly performing assets may be the key to unclogging the arteries of global credit markets, but the success of the U.S. Treasury's latest plan itself depends on widespread participation by private investors.&lt;/p&gt;

&lt;p&gt;On Monday U.S. Treasury Secretary Timothy Geithner provided further details of the complex program which could rid U.S. bank balance sheets of up to $1 trillion of bad assets. The highlight of the programs was the generous financing offered by the government to persuade private investors to participate.&lt;/p&gt;

&lt;p&gt;An earlier smaller $80 bln plan, known as the Super SIV, failed in October 2007, and the original $700 bln Troubled Assets Relief Program (TARP) failed in late 2008 due to a lack of participation by private investors.&lt;/p&gt;

&lt;p&gt;Early market reaction to the U.S. Treasury's latest plan appeared to be more positive on Monday.&lt;/p&gt;

&lt;p&gt;&quot;My own view is the plan is a sensible one,&quot; Byron Wien, chief investment officer of Pequot Capital Management, told the Reuters Private Equity and Hedge Fund Summit on Monday. &quot;This is a PIMCO, BlackRock sort of thing, where some credit-oriented hedge funds will participate.&quot;&lt;/p&gt;

&lt;p&gt;The plan is being launched at a time when lawmakers are furious about big bonus payments to executives at bailout recipient American International Group.&lt;/p&gt;

&lt;p&gt;In an effort to spur investor participation, U.S. Treasury Secretary Timothy Geithner said private partners in his plan will not face the tough executive pay restrictions that apply to recipients of government bailouts.&lt;/p&gt;

&lt;p&gt;GENEROUS INCENTIVES&lt;/p&gt;

&lt;p&gt;The main incentive for private investors to participate in the latest U.S. Treasury plan appeared to be generous financing terms to boost the return on the investment.&lt;/p&gt;

&lt;p&gt;As well as the initial financing from the Treasury and private investors, the Federal Deposit Insurance Corp (FDIC), a U.S. banking regulator, and the Federal Reserve will be tapped to offer further financing.&lt;/p&gt;

&lt;p&gt;Under one part of the plan focused on bad loans, the Treasury will provide up to 80 percent of initial capital alongside investment by private funds. The FDIC would then offer debt financing for up to six times the pooled amount.&lt;/p&gt;

&lt;p&gt;In addition, the Treasury will approve up to five investment managers and match their money one-for-one. It will then offer debt financing for 50 percent of the combined capital pool to buy securities banks want to unload.&lt;/p&gt;

&lt;p&gt;Two major U.S. money managers, BlackRock and PIMCO, expressed interest in participating in the toxic-assets plan, which could produce big profits.&lt;/p&gt;

&lt;p&gt;&quot;From PIMCO's perspective, we are intrigued by the potential double-digit returns as well as the opportunity to share them with not only clients but the American taxpayer,&quot; Bill Gross, PIMCO's co-chief investment officer, told Reuters in an interview.&lt;/p&gt;

&lt;p&gt;RESTARTING PRICING MECHANISM&lt;/p&gt;

&lt;p&gt;One government aim is to get a market mechanism working to restart markets for securities not currently trading and, in the process, relieve investor fears that some form of bank nationalization might have to be considered in the future.&lt;/p&gt;

&lt;p&gt;Markets welcomed the plan on Monday, with spreads tightening for corporate bonds and benchmark credit default swap indexes, reflecting reduced risk perception as a result of the U.S. Treasury plan.&lt;/p&gt;

&lt;p&gt;Residential and commercial mortgage bonds saw prices firm from distressed levels as they stand to gain most from the plan.&lt;/p&gt;

&lt;p&gt;Prices on CMBX &quot;AAA&quot; rated commercial mortgage-backed securities indexes gained 2 1/2 to 3 points, to levels around 63, an investor said, citing a dealer. Subprime residential bond ABX derivatives indexes jumped 2 to 3 points as investors unwound bearish bets.&lt;/p&gt;

&lt;p&gt;&quot;Most hedge fund managers feel there's an extraordinary sense of opportunity, because prices have fallen so low,&quot; said Alexander Ehrlich, global head of prime services at UBS, during the Reuters summit on Monday.&lt;/p&gt;

&lt;p&gt;Before the global credit crisis erupted in mid-2007, yield spreads of U.S. bank debt over Treasuries were in the range of about 1.0 to 1.5 percentage points, said Cam Albright, managing director of fixed income for Wilmington Trust's Investment Management group in Wilmington, Delaware.&lt;/p&gt;

&lt;p&gt;Today those spreads trade as high as 6.0 percentage points, a measure of the increased risk of default.&lt;/p&gt;

&lt;p&gt;&quot;You would need to get back to the historical relationship between the financial sector and the Treasury market before all this began to explode,&quot; Albright said. &quot;That would be a sign things were getting better in the market place and that banks could attract capital from private sources,&quot; he said.&lt;/p&gt;

&lt;p&gt;Another sign of a recovery will be the yield spread between jumbo mortgages and conforming mortgages and whether those spreads tighten in, said Jeff Given, a portfolio manager for fixed income with John Hancock Funds in Boston.&lt;/p&gt;

&lt;p&gt;Late last week that spread was about 175 basis points, Given said. &quot;If you can get that within about 100 basis points that would be a good sign lending is freeing up for larger mortgage loans,&quot; Given said.&lt;/p&gt;

&lt;p&gt;But the ultimate measure of success will be if the U.S. bank plan can stand the test of time.&lt;/p&gt;

&lt;p&gt;&quot;This is perhaps the first win/win/win policy to be put on the table and it should be welcomed enthusiastically,&quot; said Bill Gross, the co-chief investment officer of PIMCO. &quot;We intend to participate and do our part to serve clients as well as promote economic recovery.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by John Parry, Al Yoon and Jennifer Ablan)&lt;/p&gt;</media:text>
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<title>Accused &quot;sleeper agent&quot; pleads not guilty in U.S.</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M6YI20090323</link>
<pubDate>Mon, 23 Mar 2009 14:54:47 -0600</pubDate>
<description><![CDATA[PEORIA, Illinois (Reuters) - An accused sleeper agent for al Qaeda who was held in isolation in a U.S. Navy brig for six years pleaded not guilty to terrorism charges in an appearance in federal court on Monday.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9389480&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Andy Kravetz&lt;/p&gt;

&lt;p&gt;PEORIA, Illinois (Reuters) - An accused sleeper agent for al Qaeda who was held in isolation in a U.S. Navy brig for six years pleaded not guilty to terrorism charges in an appearance in federal court on Monday.&lt;/p&gt;

&lt;p&gt;Ali al-Marri, a 43-year-old with dual citizenship in Qatar and Saudi Arabia, was originally arrested in Peoria in December 2001 in an investigation of the September 11 hijacked plane attacks, and in 2003 was branded an &quot;enemy combatant&quot; and kept in isolation in a military prison.&lt;/p&gt;

&lt;p&gt;Marri arrived in the United States on September 10, 2001, on a student visa, and had earlier been a student at Bradley University in Peoria. Prosecutors have said he attended no classes in 2001, a violation of his visa.&lt;/p&gt;

&lt;p&gt;U.S. District Judge Michael Mihm set a trial date of May 26 but added that, realistically, he wanted to &quot;try this case by the end of the year.&quot;&lt;/p&gt;

&lt;p&gt;After reading Marri the charges against him of conspiring with al Qaeda and providing material support for terrorism, Mihm asked Marri about his general health and his age.&lt;/p&gt;

&lt;p&gt;To the latter question, the stocky Marri answered &quot;43, I think.&quot; There was a brief delay in the hearing, attended by some 70 people, because Marri did not have his reading glasses, which were retrieved by a court officer.&lt;/p&gt;

&lt;p&gt;When he was arrested in 2001, Marri was charged initially with credit card fraud and lying to the FBI, and pleaded not guilty. The charges were dropped in 2003 when then-President George W. Bush declared him an &quot;enemy combatant&quot; and sent him to the Consolidated Naval Brig in South Carolina. He was held in the military prison without charge and in extreme isolation for nearly six years.&lt;/p&gt;

&lt;p&gt;MODEL FOR GUANTANAMO CASES?&lt;/p&gt;

&lt;p&gt;Following a review ordered by President Barack Obama, Marri's case was transferred to the U.S. court system. A federal grand jury in Illinois indicted Marri last month. He made two court appearances in Charleston, South Carolina, and was denied bail before being transferred to Illinois.&lt;/p&gt;

&lt;p&gt;Some legal experts have said Marri's case may offer a preview of how the administration plans to deal with roughly 245 inmates of the prison in Guantanamo Bay, Cuba, if it is closed as planned.&lt;/p&gt;

&lt;p&gt;Earlier this month, the Obama administration stopped calling Guantanamo inmates &quot;enemy combatants&quot; and incorporated international law as its basis for holding them.&lt;/p&gt;

&lt;p&gt;Justice Department prosecutors have not detailed the basis for the charges against Marri other than to say he was a colleague of suspected September 11 mastermind Khalid Sheikh Mohammed, that he was in the United States at al Qaeda's request, and that while here he contacted members of al Qaeda in Afghanistan.&lt;/p&gt;

&lt;p&gt;Judge Mihm ordered prosecutors to hand over some evidence to the defense team, including a copy of Marri's computer hard drive that authorities allege contained information about toxins, the locations of dams, and topics related to al Qaeda and terrorism.&lt;/p&gt;

&lt;p&gt;An FBI agent involved in the case previously said Marri's laptop also contained items that could be used by hackers to damage or collect information from protected computer systems, as well as stolen credit card numbers and driver's licenses.&lt;/p&gt;

&lt;p&gt;Some of the evidence Mihm ordered transferred to the defense is classified.&lt;/p&gt;

&lt;p&gt;(Writing by Andrew Stern; Editing by Michael Conlon and Eric Walsh)&lt;/p&gt;</media:text>
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<title>General links Israeli tactics to Gaza civilian toll</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M6RT20090323</link>
<pubDate>Mon, 23 Mar 2009 14:23:39 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - Israeli officers' efforts to protect troops from Palestinian fire during the war in the Gaza Strip may have contributed to unwarranted killing of civilians, a commander of the offensive said Monday.]]></description>
<guid isPermaLink="false" >USTRE52M6RT20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Dan Williams&lt;/p&gt;

&lt;p&gt;JERUSALEM (Reuters) - Israeli officers' efforts to protect troops from Palestinian fire during the war in the Gaza Strip may have contributed to unwarranted killing of civilians, a commander of the offensive said Monday.&lt;/p&gt;

&lt;p&gt;Already facing censure over the January war's death toll, Israel is under renewed pressure to defend its conduct after accounts by veterans surfaced last week suggesting there had been frequent and sometimes lethal disregard for the innocent.&lt;/p&gt;

&lt;p&gt;Tzvika Fogel, a reserve brigadier-general who was mobilized to help oversee the 22-day campaign, described Israel's practice of deeming anyone who failed to heed orders to leave a combat zone as a potential Hamas guerrilla.&lt;/p&gt;

&lt;p&gt;Soldiers still had to take a &quot;reasonable&quot; view that a person in their sights was a genuine threat before shooting, he said. But he added: &quot;If you want to know whether I think that in doing so we killed innocents, the answer is, unequivocally, yes.&quot;&lt;/p&gt;

&lt;p&gt;&quot;It would be very dishonest of me if I told you that would have been impossible,&quot; he told Reuters in a telephone interview.&lt;/p&gt;

&lt;p&gt;&quot;But if there were such incidents, they were exceptional. That wasn't the general mood or the policy.&quot;&lt;/p&gt;

&lt;p&gt;The Palestinian Center for Human Rights (PCHR), which said it identified all the dead, says 1,417 Palestinians were killed, including 926 civilians, of whom 313 were children and 116 were women. Many died in bombardments from the air and by artillery.&lt;/p&gt;

&lt;p&gt;The Israeli military has provided no such figures of its own. An Israeli think-tank with links to the armed forces has said PCHR's statistics show a disproportionately high number of those described as civilians were young men of fighting age.&lt;/p&gt;

&lt;p&gt;Israeli media last week quoted soldiers reporting widespread disregard for the safety of Palestinian civilians. One said he heard of a sniper shooting dead a woman and two children who strayed from a route troops ordered them to follow. Military officials noted that that soldier was not an eyewitness.&lt;/p&gt;

&lt;p&gt;Richard Kemp, a retired British army colonel who commanded forces in Iraq and Afghanistan, voiced understanding for Israel's tactics in Gaza but said its long-term credibility may hinge on bringing any violators of the laws of war to justice.&lt;/p&gt;

&lt;p&gt;&quot;I'm not unsympathetic to the idea that people sometimes behave outside the rules. Combat is a very strange situation. But I don't think you can say that because of that, you accept that the rules can be broken,&quot; Kemp told Reuters from London.&lt;/p&gt;

&lt;p&gt;PRIORITIES&lt;/p&gt;

&lt;p&gt;Fogel said: &quot;If we have testimony that very clearly shows someone behaved inappropriately and did not do the right thing, I have no doubt there would be legal proceedings.&quot;&lt;/p&gt;

&lt;p&gt;The chief-of-staff Lieutenant General Gabi Ashkenazi also promised Monday that soldiers would be held to account.&lt;/p&gt;

&lt;p&gt;Yet Israel's military has rarely prosecuted personnel over killing civilians, despite ample allegations from Palestinians and human rights groups about such crimes.&lt;/p&gt;

&lt;p&gt;Fogel listed Israeli field officers' priorities in the Gaza fighting as: &quot;First, we bring our men back safe and sound. Second, we are determined to win. Third, we aren't murderers. We can't create a situation in which we fight without principles.&quot;&lt;/p&gt;

&lt;p&gt;Like many Israelis, he blamed Islamist Hamas, which sees itself as locked in a holy war with the Jewish state, for inviting the Gaza bloodshed by battling within populated areas. Palestinians note that congested Gaza is penned in by Israel and neighboring Egypt, with little refuge available for civilians.&lt;/p&gt;

&lt;p&gt;Israel lost 10 soldiers in the war, as well as three civilians killed by the short-range rockets. The salvoes have resumed, albeit on a small scale, since Egypt brokered a truce.&lt;/p&gt;

&lt;p&gt;Fogel said: &quot;Had we finished this campaign with 100 dead troops and 10 tanks burning up, but won international recognition as the side that showed 'extraordinary morality', would our position be better today?&quot;&lt;/p&gt;

&lt;p&gt;(Editing by Dominic Evans)&lt;/p&gt;</media:text>
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<title>Q+A: How will U.S. asset cleanup plan work?</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M6MQ20090323</link>
<pubDate>Mon, 23 Mar 2009 14:08:43 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner on Tuesday unveiled his long-awaited plan to cleanse toxic assets from bank balance sheets.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner on Tuesday unveiled his long-awaited plan to cleanse toxic assets from bank balance sheets.&lt;/p&gt;

&lt;p&gt;Here are some questions and answers about the plan.&lt;/p&gt;

&lt;p&gt;Q: What is the problem the Treasury is trying to solve?&lt;/p&gt;

&lt;p&gt;A: The bursting of the U.S. housing bubble caused mortgage failures to skyrocket and triggered massive losses for banks on complex mortgage-related securities. The excessive discounts now embedded on these hard-to-trade assets is weighing down bank balance sheets, choking off lending and worsening an already deep recession.&lt;/p&gt;

&lt;p&gt;Q: What is the objective of the Treasury's plan?&lt;/p&gt;

&lt;p&gt;A: The plan aims to bring in private investors to help jump-start the markets for these assets. By providing attractive government financing, the Treasury hopes private investment firms can afford to pay prices for the assets at levels at which banks are willing to sell. With these assets off their books, banks would have capacity to resume lending again, and will be better able to attract private capital. Fears over their potential losses would be greatly reduced.&lt;/p&gt;

&lt;p&gt;Q. How much will this cost the government?&lt;/p&gt;

&lt;p&gt;A: The Treasury will initially contribute $75 billion to $100 billion from the $700 billion financial bailout fund approved by Congress last fall. It will be able to stretch these funds by combining them with private capital and leveraging them with loans from the Federal Reserve and the Federal Deposit Insurance Corp. Losses for taxpayers could be much larger than the amount the Treasury is using to seed the program, since the FDIC and Fed are extending loans. The Treasury estimates that $500 billion of assets can be bought through the plan, and this could grow to up to $1 trillion. Geithner said he is not ready to decide whether to ask Congress for more bailout money.&lt;/p&gt;

&lt;p&gt;Q. How is the plan structured?&lt;/p&gt;

&lt;p&gt;A. There are three basic programs. The largest one will enable investors, partnered with the government, to buy whole loans from banks with FDIC financing in an auction process run by the banking regulator. The second would expand a securities loan program run by the Fed to enable firms holding certain mortgage- and asset-backed securities to pledge them as collateral for new loans to invest in these markets. In the third part, the Treasury would hire at least five asset managers to raise capital to buy distressed mortgage- and asset-backed securities. The Treasury would then match the private capital dollar-for-dollar and provide additional debt financing to boost buying power. The funds would compete in the open market to buy legacy securities.&lt;/p&gt;

&lt;p&gt;Q. When will the asset purchases get started?&lt;/p&gt;

&lt;p&gt;A. The timing is uncertain. Geithner said the Treasury, FDIC and Fed were working &quot;very hard to put it in place as quickly as possible.&quot; A Treasury spokeswoman said the plan would not take as long to implement as the Fed's securities loan program, which took about four months. The Treasury set an April 10 application deadline for investment managers to run legacy securities funds and will notify winners by May 1.&lt;/p&gt;

&lt;p&gt;Q. How would an FDIC loan program investment work?&lt;/p&gt;

&lt;p&gt;A. A bank wanting to divest a pool of residential mortgages with a face value of $100 million approaches the FDIC. The FDIC determines how much financing it is willing to extend to potential buyers of the loans, and the FDIC then auctions the loans and chooses the highest private-sector bid. The winner forms an investment fund with both private capital and funds from the Treasury. The FDIC then extends its loan, which can be for up to six times the amount of public-private capital.&lt;/p&gt;

&lt;p&gt;For example, if the winning bid is $84 million, at a 6-1 leverage ratio, the FDIC would guarantee $72 million of financing, leaving the fund to raise $12 million in equity capital. At least half of this will come from the Treasury, leaving private investors to find $6 million. But the Treasury could decide to contribute up to 80 percent of the equity in the fund, leaving private investors needing to raise only $2.4 million. In this case, the public sources would be responsible for up to $81.6 billion, or 97 percent of the total.&lt;/p&gt;

&lt;p&gt;Q. How would a legacy securities investment deal work?&lt;/p&gt;

&lt;p&gt;A. A fund manager selected by the Treasury seeks to raise private capital to jointly invest with the government, which matches the funds dollar-for-dollar. If the fund manager's sales efforts raise a minimum of $500 million, the government will provide $500 million in matching equity capital. The Treasury will loan the fund another $500 million and may consider additional loan requests. This provides at least $1.5 billion for the fund manager to go shopping for legacy securities. The fund manager has full discretion in investment decisions, although it is expected to pursue a predominantly long-term buy-and-hold strategy. The public-private fund would also be eligible to obtain additional loans from the Federal Reserve's TALF facility if it acquires qualifying legacy securities.&lt;/p&gt;

&lt;p&gt;Q. Will investors and fund managers participating in the Treasury's program be subject to executive pay restrictions that apply to recipients of government bailouts?&lt;/p&gt;

&lt;p&gt;A. No, unless they have already been bailed out. The new plan imposes no restrictions because they are considered &quot;generally available&quot; programs open to investors and designed to get markets working again. Geithner said he will work with Congress to make sure other executive compensation restrictions do not hinder recovery efforts.&lt;/p&gt;

&lt;p&gt;(Reporting by David Lawder, Editing by Chizu Nomiyama)&lt;/p&gt;</media:text>
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<title>U.S. bad-asset plan won't limit pay at nonTARP banks</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M6MP20090323</link>
<pubDate>Mon, 23 Mar 2009 14:08:43 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. banks that sell assets in the government's public-private investment program but have not received federal TARP money will not be subject to executive compensation restrictions, the chairman of the Federal Deposit Insurance Fund said on Monday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Karey Wutkowski and Rachelle Younglai&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - U.S. banks that sell assets in the government's public-private investment program but have not received federal TARP money will not be subject to executive compensation restrictions, the chairman of the Federal Deposit Insurance Fund said on Monday.&lt;/p&gt;

&lt;p&gt;Sheila Bair also said in a briefing with reporters that banks will likely sell their distressed loan-related assets at fair value and will have to take a discount from the value they are being carried at on the balance sheet.&lt;/p&gt;

&lt;p&gt;Bair said these terms may not be suitable for all banks, especially for those institutions under severe stress.&lt;/p&gt;

&lt;p&gt;&quot;I do think there may be some banks beyond help,&quot; Bair said. &quot;There are others who with the program may be able to cleanse their balance sheets and raise some fresh capital.&quot;&lt;/p&gt;

&lt;p&gt;Public outrage erupted last week at the fact that American International Group paid $165 million in bonuses after receiving $180 billion in government aid. Legislation is now moving through Congress to further clamp down on executive pay for firms that receive bailouts.&lt;/p&gt;

&lt;p&gt;Regarding restrictions, Bair said some banks interested in participating have already received federal funds from the $700 billion Troubled Asset Relief Program (TARP) and are subject to the accompanying restrictions on executive compensation, dividends and stock repurchases.&lt;/p&gt;

&lt;p&gt;For banks that have not received TARP funds but are interested in selling troubled assets, &quot;those restrictions will not apply,&quot; Bair said.&lt;/p&gt;

&lt;p&gt;The U.S. Treasury Department on Monday formally announced its three-part program that will provide financing through the Federal Reserve and the FDIC to aid public-private investment partnerships in buying up to $1 trillion in distressed loans and securities.&lt;/p&gt;

&lt;p&gt;Bair said the FDIC estimates that U.S. banks have about $1 trillion of distressed &quot;legacy&quot; loans on their balance sheets. She said the &quot;legacy loan&quot; portion of the program can realistically cleanse the banks of about $500 billion of those assets.&lt;/p&gt;

&lt;p&gt;&quot;This is a critical step forward in restoring clarity to the markets,&quot; Bair said.&lt;/p&gt;

&lt;p&gt;An FDIC official said later during the briefing that six weeks would be a &quot;very aggressive&quot; timeline for launching the auctions to buy up banks' assets. He said the timing will depend on the comments the FDIC receives on the program and the complexity of the assets.&lt;/p&gt;

&lt;p&gt;Bair said she expects the program will be &quot;very profitable&quot; for private investors and for taxpayers, and said the FDIC will explore whether the taxpayers should get more than 50 percent of the upside.&lt;/p&gt;

&lt;p&gt;&quot;If this thing makes money, and I think it will, the taxpayer should capture a lot of that,&quot; she said.&lt;/p&gt;

&lt;p&gt;She also noted that the program does not put the FDIC's dwindling deposit insurance fund at risk. Rather, the fund -- which backs deposits at FDIC-insured banks -- will be bolstered through the debt guarantee fees that the FDIC collects through the program.&lt;/p&gt;

&lt;p&gt;Also, Bair said the asset purchase plan has a good chance of finding that &quot;magic price&quot; at which banks are willing to sell their distressed assets and the private market is willing to buy them.&lt;/p&gt;

&lt;p&gt;&quot;I think this is the best possible structure to get that pricing mechanism started,&quot; she said. &quot;It will be a significant benefit to some banks.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Karey Wutkowski and Rachelle Younglai; Editing by Gary Hill)&lt;/p&gt;</media:text>
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<title>Fed's Lockhart: Dim outlook spurred Treasury buys</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M6GT20090323</link>
<pubDate>Mon, 23 Mar 2009 13:40:57 -0600</pubDate>
<description><![CDATA[ATLANTA (Reuters) - Massive Federal Reserve buying of U.S. Treasuries is warranted by a worsening economic outlook, and aggressive action to tackle the crisis will yield results, a top Fed official said on Monday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;ATLANTA (Reuters) - Massive Federal Reserve buying of U.S. Treasuries is warranted by a worsening economic outlook, and aggressive action to tackle the crisis will yield results, a top Fed official said on Monday.&lt;/p&gt;

&lt;p&gt;Atlanta Federal Reserve Bank President Dennis Lockhart said purchases of longer-dated Treasuries had been discussed by the Fed in January, but seemed premature, owing to the economic forecast and because official stimulus measures were pending.&lt;/p&gt;

&lt;p&gt;&quot;At this FOMC (Federal Open Market Committee) meeting, at least relative to my own forecast ... that forecast had deteriorated from January to some extent, and much of the total economic package had been clarified,&quot; Lockhart told Reuters in an interview, referring to a Fed policy meeting last week.&lt;/p&gt;

&lt;p&gt;&quot;So I think it was appropriate and proportionate to support the proposal of a $300 billion program for Treasuries,&quot; he said. The surprise news of the purchases led to a hefty rally in U.S. government debt prices and Lockhart said the results so far had been &quot;encouraging&quot;.&lt;/p&gt;

&lt;p&gt;(Reporting by Alister Bull; editing by Neil Stempleman)&lt;/p&gt;</media:text>
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<title>U.N. reports say Israel targeted civilians in Gaza</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M6G220090323</link>
<pubDate>Mon, 23 Mar 2009 13:38:32 -0600</pubDate>
<description><![CDATA[GENEVA (Reuters) - United Nations investigators said on Monday Israel violated a range of human rights during its invasion of Gaza, including targeting civilians and using a child as a human shield.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Robert Evans&lt;/p&gt;

&lt;p&gt;GENEVA (Reuters) - United Nations investigators said on Monday Israel violated a range of human rights during its invasion of Gaza, including targeting civilians and using a child as a human shield.&lt;/p&gt;

&lt;p&gt;The accusations came in reports to the U.N. Human Rights Council which also called for an urgent end to Israeli restrictions on humanitarian supplies to Gaza and a full international investigation into the conflict.&lt;/p&gt;

&lt;p&gt;&quot;Civilian targets, particularly homes and their occupants, appear to have taken the brunt of the attacks, but schools and medical facilities have also been hit,&quot; said one report by Radhika Coomaraswamy, the U.N. Secretary-General's Special Representative for Children and Armed Conflict.&lt;/p&gt;

&lt;p&gt;The Sri Lankan human rights lawyer visited the region in early February. She cited a long series of incidents to back her charges.&lt;/p&gt;

&lt;p&gt;In one, she said, Israeli soldiers shot a father after ordering him out of his house and then opened fire into the room where the rest of the family was sheltering, wounding the mother and three brothers and killing a fourth.&lt;/p&gt;

&lt;p&gt;In another, on January 15, at Tal al Hawa south-west of Gaza City, Israeli soldiers forced an 11-year-old boy to walk in front of them for several hours as they moved through the town, even after they had been shot at.&lt;/p&gt;

&lt;p&gt;An Israeli commander in the 22-day Gaza invasion said on Monday Israel's efforts to protect troops from Palestinian fire may have contributed to unwarranted killing of civilians.&lt;/p&gt;

&lt;p&gt;&quot;If you want to know whether I think that in doing so we killed innocents, the answer is, unequivocally, yes,&quot; Tzvika Fogel, a reserve brigadier-general, told Reuters. Fogel added that such incidents were exceptional.&lt;/p&gt;

&lt;p&gt;ISRAEL CRITICISES REPORT&lt;/p&gt;

&lt;p&gt;Coomaraswamy's comments formed part of a much longer report from nine U.N. investigators including specialists on the right to health, to food, to adequate housing and education and on summary executions and violence against women.&lt;/p&gt;

&lt;p&gt;All cited violations by Israel -- and in some cases by the Hamas Islamic movement that controls Gaza -- during the invasion from December 27 until January 17 which Israeli leaders say was launched to stop rocket attacks by Hamas from the territory.&lt;/p&gt;

&lt;p&gt;Palestinian officials say 1,434 people in Gaza -- 960 of them civilians -- were killed in the fighting, a figure Israel contests. The report from the nine gave the total as 1,440, saying of these 431 were children and 114 women.&lt;/p&gt;

&lt;p&gt;The overall report was criticized in the 47-nation Council by Israel's ambassador Aharon Leshno Yar, who said it &quot;wilfully ignores and downplays the terrorist and other threats we face,&quot; and the use by Hamas of human shields.&lt;/p&gt;

&lt;p&gt;Leshno Yar said the 43-page document was part of a pattern of &quot;demonizing Israel&quot; in the Council -- where an informal bloc of Islamic and African nations usually backed by Russia, China and Cuba has a built-in majority.&lt;/p&gt;

&lt;p&gt;Another report presented to the Council on Monday came from Robert Falk, a U.S. academic and the body's special rapporteur on human rights in the occupied Palestinian territories.&lt;/p&gt;

&lt;p&gt;Falk, whom Israel barred from entry last year after accusing him of bias and prejudice, said Israel had subjected civilians in Gaza to &quot;an inhuman form of warfare that kills, maims and inflicts mental harm.&quot;&lt;/p&gt;

&lt;p&gt;His report, in which he called for an independent experts group to probe possible war crimes by Israel and Hamas and also suggested that the U.N. Security Council set up an ad hoc criminal tribunal, was issued late last week.&lt;/p&gt;

&lt;p&gt;(Editing by Dominic Evans)&lt;/p&gt;</media:text>
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<title>Iraq suicide bomber kills 25, wounds 45</title>
<link>http://www.reuters.com/article/topNews/idUSLN30565920090323</link>
<pubDate>Mon, 23 Mar 2009 12:42:21 -0600</pubDate>
<description><![CDATA[SULAIMANIYA, Iraq (Reuters) - A suicide bomber blew himself up at a Kurdish funeral in the volatile and ethnically mixed province of Diyala in northern Iraq on Monday, killing 25 people and wounding 45, police said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;SULAIMANIYA, Iraq (Reuters) - A suicide bomber blew himself up at a Kurdish funeral in the volatile and ethnically mixed province of Diyala in northern Iraq on Monday, killing 25 people and wounding 45, police said.&lt;/p&gt;

&lt;p&gt;The bombing in the town of Jalawla, 115 km (70 miles) northeast of Baghdad, highlighted the dangers Iraq still faces from militants, even as overall violence falls to levels not seen since mid-2003 and the United States prepares to withdraw combat troops by August 31, 2010.&lt;/p&gt;

&lt;p&gt;&quot;We heard a huge explosion. We looked over at our neighbor's house and there were dead people everywhere,&quot; said Suhad Ahmed, a woman who lives next door to the house where the blast occurred.&lt;/p&gt;

&lt;p&gt;Diyala is a melting pot of Kurds, Arabs and Turkmen variously professing Sunni, Shi'ite, Christian and other faiths.&lt;/p&gt;

&lt;p&gt;Tension between Arabs and Kurds in the province has been rising, driven by disputes over oil and territory between Iraq's Shi'ite Arab-led government in Baghdad and officials in the largely autonomous Kurdistan region.&lt;/p&gt;

&lt;p&gt;Jalawla lies on the disputed border between Kurdistan and the rest of Iraq and was one of several towns where there were standoffs between Iraqi central government forces and Kurdish Peshmerga fighters last year.&lt;/p&gt;

&lt;p&gt;By bombing a Kurdish event, the militants could be trying to spark ethnic conflict between Arabs and Kurds, just as Sunni Islamist militants from al Qaeda provoked a conflict between Shi'ite and Sunni Arabs in 2006 and nearly tore Iraq apart.&lt;/p&gt;

&lt;p&gt;Under a deal between Baghdad and Kurdistan last year, the Peshmerga agreed to withdraw from Jalawla and let Iraqi forces take over. Kurds complain that security has worsened since then.&lt;/p&gt;

&lt;p&gt;&quot;When the Peshmerga were in Jalawla, the terrorists could not attack civilians. If they were still there, this would not have happened,&quot; Saadi al-Barazanchi, a member of the Kurdish alliance in Baghdad's parliament, told Reuters.&lt;/p&gt;

&lt;p&gt;Earlier on Monday, a bomb at a west Baghdad bus terminal killed nine people and wounded 23, Iraqi police said. It was the second bomb attack this month in the predominantly Sunni Arab district of Abu Ghraib.&lt;/p&gt;

&lt;p&gt;U.S. officials say the Iraqi police force and army, now stronger and more professional, have helped foil many bombing attempts but checkpoints cannot stop every bomber.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Wisam Mohammed in Baghdad; Writing by Tim Cocks, Editing by Andrew Dobbie)&lt;/p&gt;</media:text>
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<title>U.S. housing rescue threatened by second liens</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M5ZX20090323</link>
<pubDate>Mon, 23 Mar 2009 12:37:33 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. Treasury Department's effort to help 5 million homeowners win reworked mortgages, part of a plan to stabilize housing, could fall flat if Wall Street does not relax its interest in the properties.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Patrick Rucker and David Lawder - Analysis&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The U.S. Treasury Department's effort to help 5 million homeowners win reworked mortgages, part of a plan to stabilize housing, could fall flat if Wall Street does not relax its interest in the properties.&lt;/p&gt;

&lt;p&gt;While the initiative empowers Fannie Mae and Freddie Mac to refinance borrowers whose homes have lost value in recent years, big banks own a small stake in many of those loans and could effectively block the plan.&lt;/p&gt;

&lt;p&gt;Those relatively modest investments, or second liens, allow lenders to veto the refinancing plan and they might do so since those small stakes add up to big dollars.&lt;/p&gt;

&lt;p&gt;Bank of America held $148 billion in second liens at the end of last year, while JPMorgan Chase held $131.4 billion and Wells Fargo &amp;amp; Co. held $129.9 billion, according to Inside Mortgage Finance.&lt;/p&gt;

&lt;p&gt;Since Fannie Mae and Freddie Mac were effectively nationalized in September, the government has used the mortgage-finance companies to try and alleviate the housing crisis. Private banks, however, are more difficult to control.&lt;/p&gt;

&lt;p&gt;Last week, the Treasury Department hosted a meeting of large mortgage servicers to discuss the question of second liens and the broader housing rescue.&lt;/p&gt;

&lt;p&gt;Big lenders generally support the housing rescue plan but have misgivings about Treasury's intentions for second liens, several industry sources said.&lt;/p&gt;

&lt;p&gt;&quot;The (housing rescue) plan does nothing to benefit the second lien beyond attempting to provide a framework that allows the first lien to perform and get paid,&quot; said Terry Francisco, a spokesperson for Bank of America.&lt;/p&gt;

&lt;p&gt;The plan does not make clear whether the second lien holder will ever get paid off, but if the first lien continues to perform, odds improve for the health of the second mortgage, Francisco said. He hopes the discussions with Treasury lead to a workable process to deal with second liens.&lt;/p&gt;

&lt;p&gt;A person with knowledge of the meeting at Treasury last Wednesday said there was little agreement on how to solve the dilemma, adding that first-lien holders were reluctant to buy out second mortgages at full value when they already faced a reduction in income on the first mortgage.&lt;/p&gt;

&lt;p&gt;MORTGAGE ARITHMETIC&lt;/p&gt;

&lt;p&gt;The question is complicated by falling home values and the odds of a quick recovery.&lt;/p&gt;

&lt;p&gt;During the recent housing boom, second liens were a popular substitute for a buyer's downpayment and were also used to wring cash out of homes that had spiked in value.&lt;/p&gt;

&lt;p&gt;In the current market, many second liens are all but worthless because the home has sunk in value and a sale would not even cover the first note. Many lenders report that borrowers are skipping payments on their second lien, knowing that the mortgage company has little recourse.&lt;/p&gt;

&lt;p&gt;The Treasury plan, though, would reward timely borrowers with a cheaper mortgage and many finance companies are asking why they should relinquish their stake in the existing loans.&lt;/p&gt;

&lt;p&gt;&quot;These are performing loans. Why would we walk away from them?&quot; said one mortgage industry source.&lt;/p&gt;

&lt;p&gt;Early this month, Treasury officials promised that they will present a payment schedule to buy out second liens but they have not yet released details.&lt;/p&gt;

&lt;p&gt;In the next few weeks, the Treasury and large finance companies may engage in a game of chicken over second liens and other details of the housing rescue plan laid out by the Obama administration on February 18.&lt;/p&gt;

&lt;p&gt;Unresolved issues concerning second liens was partly what doomed the Hope for Homeowners program was crafted last summer with the aim of saving 400,000 troubled borrowers from foreclosure. Only a few dozen homeowners have received help.&lt;/p&gt;

&lt;p&gt;(Editing by Chizu Nomiyama)&lt;/p&gt;</media:text>
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<title>U.S. Treasury's Geithner seems safe -- for now</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M5X920090323</link>
<pubDate>Mon, 23 Mar 2009 12:31:08 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Some people are calling for his head, but U.S. Treasury Secretary Timothy Geithner's job seems safe -- at least for now, based on solid and repeated statements of support from his boss, President Barack Obama.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Steve Holland - Analysis&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - Some people are calling for his head, but U.S. Treasury Secretary Timothy Geithner's job seems safe -- at least for now, based on solid and repeated statements of support from his boss, President Barack Obama.&lt;/p&gt;

&lt;p&gt;Analysts reading the signs from the White House think Geithner has survived what many view as an unsteady performance since taking over the hot seat on January 26, with a central role in efforts to revive the stumbling U.S. economy.&lt;/p&gt;

&lt;p&gt;He got off to a bad start even before being confirmed in his job with the revelation that he had unpaid taxes.&lt;/p&gt;

&lt;p&gt;In office he has been criticized at every step, including questions last week about whether he should have been in a position to stop insurance giant AIG, which was propped up with tax-payer money, from giving out $165 million in executive bonuses.&lt;/p&gt;

&lt;p&gt;A strong response in the stock market to the Treasury Department's plan announced on Monday to persuade private investors to help rid banks of up to $1 trillion in toxic assets was seen as helpful to Geithner.&lt;/p&gt;

&lt;p&gt;&quot;That's a very important ratification of Geithner in the first instance,&quot; said Democratic strategist Douglas Schoen, who worked in the Clinton White House. &quot;If Obama for whatever reason were to jettison Geithner now, it would be the equivalent of jettisoning a large part of his credibility and position.&quot;&lt;/p&gt;

&lt;p&gt;&quot;SORRY BUDDY&quot;&lt;/p&gt;

&lt;p&gt;Obama has repeatedly expressed confidence in the 47-year-old Geithner, who came to Washington after serving as a Federal Reserve governor in New York. His most recent statement of support came on Sunday in a CBS &quot;60 Minutes&quot; interview.&lt;/p&gt;

&lt;p&gt;Obama, asked if Geithner had offered to resign, Obama said no. &quot;And he shouldn't. And if he were to come to me, I'd say, 'Sorry, buddy. You've still got the job.'&quot;&lt;/p&gt;

&lt;p&gt;&quot;But look, he's got a lot of stuff on his plate. And he is doing a terrific job. And I take responsibility for not, I think, having given him as much help as he needs,&quot; he said.&lt;/p&gt;

&lt;p&gt;Geithner told CBNC on Monday it was a great privilege to serve at treasury and that criticism of his performance &quot;comes with the job.&quot;&lt;/p&gt;

&lt;p&gt;&quot;We have to make hard choices. We're not going to satisfy everybody. But we're doing our best, again, to move as aggressive as we can to try to fix this mess, get recovery back on track here,&quot; he said.&lt;/p&gt;

&lt;p&gt;Economist William Galston of the Brookings Institution said Obama's support for Geithner seemed wide and deep, particularly after taking a political hit for sticking with Geithner despite him having unpaid taxes.&lt;/p&gt;

&lt;p&gt;&quot;The president has paid a significant political price to attain and retain his services and clearly believes that price is worth paying. I have never doubted that he would support Geithner to the hilt,&quot; Galston said.&lt;/p&gt;

&lt;p&gt;Political analyst Norman Ornstein of the American Enterprise Institute said a Geithner departure would raise the question of &quot;who are you going to put in&quot; at Treasury.&lt;/p&gt;

&lt;p&gt;A departure now would lead to a void at a critical time in the effort to revive the U.S. economy, he said.&lt;/p&gt;

&lt;p&gt;&quot;If you don't pick somebody who has already been through a Senate confirmation, it's going to take a couple of months. This is not a time when you're going to say, 'I'm bringing somebody else in. You're out, Tim. We'll have an acting secretary,'&quot; Ornstein said.&lt;/p&gt;

&lt;p&gt;There has been plenty of grousing about Geithner in the U.S. Congress but actual calls for his resignation have been limited to a few opposition Republicans.&lt;/p&gt;

&lt;p&gt;&quot;We clearly need someone who has the skills to handle the job and can instill confidence in the American people, in the taxpayers, and in my opinion Tim Geithner is not the person,&quot; Florida Republican Representative Connie Mack told CNN.&lt;/p&gt;

&lt;p&gt;Democrats in control of Congress have largely held their fire.&lt;/p&gt;

&lt;p&gt;A Republican congressional aide, who spoke on condition of anonymity, said calls for Geithner's resignation had largely been limited because there was little taste for going through another Senate confirmation hearing that could lead to delays in helping the economy.&lt;/p&gt;

&lt;p&gt;&quot;It's also one of those things where you give the guy a shot. He's had a rough couple of weeks,&quot; the aide said.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Andrew Quinn; Editing by David Storey)&lt;/p&gt;</media:text>
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<title>Iraq suicide bomber kills 25, wounds 45: police</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M4XF20090323</link>
<pubDate>Mon, 23 Mar 2009 12:17:12 -0600</pubDate>
<description><![CDATA[SULAIMANIYA, Iraq (Reuters) - A suicide bomber blew himself up at a Kurdish funeral in Iraq's volatile, ethnically mixed northern Diyala province Monday, killing 25 people and wounding 45, police said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;SULAIMANIYA, Iraq (Reuters) - A suicide bomber blew himself up at a Kurdish funeral in Iraq's volatile, ethnically mixed northern Diyala province Monday, killing 25 people and wounding 45, police said.&lt;/p&gt;

&lt;p&gt;They said news of casualty numbers from the bombing of the densely packed crowd were still coming in and the toll would most likely rise.&lt;/p&gt;

&lt;p&gt;Earlier, a bomb at a west Baghdad bus terminal killed nine people and wounded 23, Iraqi police said, the second bomb attack in the predominantly Sunni Arab Abu Ghraib district this month.&lt;/p&gt;

&lt;p&gt;A source in Abu Ghraib hospital said they had received eight bodies from the blast and treated nine people for wounds so far.&lt;/p&gt;

&lt;p&gt;Violence has dropped sharply in Iraq in the last year to lows rarely seen since mid-2003, but militants, mostly linked to Sunni Islamist al Qaeda, have shown themselves still capable of launching devastating bomb attacks.&lt;/p&gt;

&lt;p&gt;On March 10, a suicide bomber killed at least 28 people in Abu Ghraib. The bomb targeted tribal leaders and security officials who had gathered for a reconciliation conference.&lt;/p&gt;

&lt;p&gt;(Writing by Mohammed Abbas and Tim Cocks; Editing by Richard Williams)&lt;/p&gt;</media:text>
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<title>After U.S. protest, Olmert to ease Gaza food entry</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3M620090323</link>
<pubDate>Mon, 23 Mar 2009 11:47:45 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - Outgoing Prime Minister Ehud Olmert promised Western donors on Monday that Israel would lift restrictions on food supplies entering the Gaza Strip after a row with Washington over blocked convoys of macaroni and cheese.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Adam Entous&lt;/p&gt;

&lt;p&gt;JERUSALEM (Reuters) - Outgoing Prime Minister Ehud Olmert promised Western donors on Monday that Israel would lift restrictions on food supplies entering the Gaza Strip after a row with Washington over blocked convoys of macaroni and cheese.&lt;/p&gt;

&lt;p&gt;The government of U.S. President Barack Obama had protested to Olmert over the seemingly random restrictions, which held up deliveries of certain types of pasta, cheese, jam and other food to 1.5 million Palestinians in the Hamas-ruled coastal enclave, devastated by an Israeli offensive earlier this year.&lt;/p&gt;

&lt;p&gt;In one case, Israel blocked for weeks a World Food Programme shipment of chickpeas, used to make the Palestinian food staple hummus. Another aid group was unable to deliver nearly 90 tons of macaroni, which Israel deemed a non-essential item.&lt;/p&gt;

&lt;p&gt;A senior Western diplomat said getting aid through the web of Israeli restrictions has become a &quot;constant headache.&quot; Another called it a &quot;distraction&quot; from U.S.-backed efforts to revive stalled peace talks between Israel and the Palestinians.&lt;/p&gt;

&lt;p&gt;The diplomats, speaking on condition of anonymity, said Olmert's office informed the United States, the European Union and the United Nations that all &quot;foodstuff&quot; would be allowed into the Gaza Strip.&lt;/p&gt;

&lt;p&gt;&quot;The policy of the government is clear. All food is humanitarian and all humanitarian supplies can go through, as is our policy. We have made sure that that is clear,&quot; a senior Israeli official said. &quot;We want the process to be streamlined.&quot;&lt;/p&gt;

&lt;p&gt;Israel says it has opened Gaza's border to larger amounts of food and medicine since its offensive, which destroyed some 5,000 homes and -- according to the latest figures from a Palestinian rights group last week -- killed 1,417 people.&lt;/p&gt;

&lt;p&gt;But Western aid officials remained cautious, saying it was unclear whether instructions from the outgoing prime minister, likely to be formally replaced next month by right-winger Benjamin Netanyahu, would be followed by Israeli military officials who run border crossings with the Gaza Strip.&lt;/p&gt;

&lt;p&gt;SOAP RESTRICTIONS&lt;/p&gt;

&lt;p&gt;They said it was unclear whether restrictions on deliveries of other items, such as toilet paper, soap and toothpaste, would also be lifted. Gazans have relied on tunnels under their border with Egypt for such supplies, but Israel has been bombing these.&lt;/p&gt;

&lt;p&gt;&quot;This is a welcome announcement and we will await with interest its implementation,&quot; said Richard Miron, a senior U.N. spokesman in Jerusalem. &quot;But the needs of Gaza go beyond foodstuffs, especially when thousands of homes are damaged or destroyed and infrastructure needs repair. The resources to fix these basic necessities aren't being allowed in.&quot;&lt;/p&gt;

&lt;p&gt;Since Hamas seized the Gaza Strip in a 2007 civil war with Western-backed Palestinian President Mahmoud Abbas's secular Fatah faction, Israel has tightened its blockade of the 45-km (30-mile) strip in a bid to weaken the Islamists' hold on power.&lt;/p&gt;

&lt;p&gt;In addition to restrictions on what it deems &quot;luxury&quot; goods, such as cigarettes and chocolates, Israel has blocked entry of materials such as cement and steel for rebuilding.&lt;/p&gt;

&lt;p&gt;Israel says steel and cement could be used by Hamas to rearm and fortify bunkers, and has ruled out fully opening border crossings until the group frees a captured Israeli soldier.&lt;/p&gt;

&lt;p&gt;Olmert is in his final weeks in office. Netanyahu has been forming a government since a February 10 election and has vowed to take a harder line on Hamas than his centrist predecessor.&lt;/p&gt;

&lt;p&gt;(Editing by Alastair Macdonald and Mark Trevelyan)&lt;/p&gt;

&lt;p&gt;(For blogs and links on Israeli politics and other Israeli and Palestinian news, go to http:/blogs.reuters.com/axismundi)&lt;/p&gt;</media:text>
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<title>Geithner says shares outrage at executive bonuses</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M5JZ20090323</link>
<pubDate>Mon, 23 Mar 2009 11:31:17 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Monday that he shares the public's outrage over bonuses paid by companies getting government bailouts and promised to work with Congress on the issue.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Monday that he shares the public's outrage over bonuses paid by companies getting government bailouts and promised to work with Congress on the issue.&lt;/p&gt;

&lt;p&gt;But in an interview on CNBC television, he avoided saying whether new public-private investment funds will subject all participants to executive compensation restrictions.&lt;/p&gt;

&lt;p&gt;A new plan for public-private partnerships unveiled on Monday said &quot;passive private investors&quot; would not face such restrictions.&lt;/p&gt;

&lt;p&gt;Geithner said government rescue money should not be used for &quot;rewarding failure,&quot; but credit must be restored.&lt;/p&gt;

&lt;p&gt;&quot;We're going to work through this,&quot; he added.&lt;/p&gt;</media:text>
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<title>House panel eyes bill on unwinding firms: aides</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M5FQ20090323</link>
<pubDate>Mon, 23 Mar 2009 11:16:47 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Legislation to improve U.S. government handling of failing large firms that are not banks, like AIG, is being developed by a key House of Representatives committee and may come to a vote soon, aides said on Monday.]]></description>
<guid isPermaLink="false" >USTRE52M5FQ20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Legislation to improve U.S. government handling of failing large firms that are not banks, like AIG, is being developed by a key House of Representatives committee and may come to a vote soon, aides said on Monday.&lt;/p&gt;

&lt;p&gt;In a sign Congress is moving fast on President Barack Obama's top financial regulation reform priority, a bill to create a process for unwinding failing nonbank firms is among the measures likely to come before the House Financial Services Committee for a possible vote on March 31, aides said.&lt;/p&gt;

&lt;p&gt;The agenda for the committee's March 31 session could change and other items may be scheduled for consideration, they said, as Congress scrambles to respond to the worst U.S. financial crisis in generations amid a deep recession.&lt;/p&gt;

&lt;p&gt;Treasury Secretary Timothy Geithner is slated to testify on the principles of the Obama administration's regulatory reform agenda to the same committee on Thursday.&lt;/p&gt;

&lt;p&gt;Obama is expected to carry those principles to a summit of world leaders in London on April 2, where reform of financial regulation is expected to be a major topic.&lt;/p&gt;

&lt;p&gt;(Reporting by Kevin Drawbaugh; Editing by Neil Stempleman)&lt;/p&gt;</media:text>
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<title>Asset purchase plan to benefit midcap banks: MS</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M5DF20090323</link>
<pubDate>Mon, 23 Mar 2009 11:10:15 -0600</pubDate>
<description><![CDATA[(Reuters) - The U.S. Treasury's asset purchase plan will benefit troubled midcap banks by restarting asset sales, a team of analysts at Morgan Stanley said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - The U.S. Treasury's asset purchase plan will benefit troubled midcap banks by restarting asset sales, a team of analysts at Morgan Stanley said.&lt;/p&gt;

&lt;p&gt;The inability to sell troubled loans is one of the group's biggest problems, they wrote in a note to clients.&lt;/p&gt;

&lt;p&gt;&quot;We believe several banks would be willing to sell certain distressed loans, even below what they consider their true underlying value, if only to remove a major source of market uncertainty,&quot; the team said.&lt;/p&gt;

&lt;p&gt;Banks that have high capital positions, the most toxic loan portfolios and have already taken sizable write-downs on those loans will benefit the most from this process, the analysts said.&lt;/p&gt;

&lt;p&gt;East West Bancorp, First Horizon National Corp, Marshall &amp;amp; Ilsley Corp, South Financial Group Inc and Synovus Financial Corp will be the biggest beneficiaries from the plan, they said.&lt;/p&gt;

&lt;p&gt;(Reporting by Amiteshwar Singh in Bangalore; Editing by Jarshad Kakkrakandy)&lt;/p&gt;</media:text>
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<title>Treasury not ready to seek more bailout funds</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M52M20090323</link>
<pubDate>Mon, 23 Mar 2009 10:48:20 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The Treasury does not know whether it will need more federal funds to stabilize the U.S. financial system, but it still has "substantial resources" from the $700 billion bailout to launch its asset purchase plan, Treasury Secretary Timothy Geithner said on Monday.]]></description>
<guid isPermaLink="false" >USTRE52M52M20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Karey Wutkowski&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The Treasury does not know whether it will need more federal funds to stabilize the U.S. financial system, but it still has &quot;substantial resources&quot; from the $700 billion bailout to launch its asset purchase plan, Treasury Secretary Timothy Geithner said on Monday.&lt;/p&gt;

&lt;p&gt;&quot;We will work with the Congress to try to make sure there are enough resources over time to do this right, but the judgment about what is going to be required is a judgment we don't need to make at this time and are not prepared to make at this time,&quot; Geithner told reporters during a briefing.&lt;/p&gt;

&lt;p&gt;He also said the administration will work with Congress to make sure executive compensation restrictions do not hinder the government's economic recovery efforts.&lt;/p&gt;

&lt;p&gt;&quot;We need to balance that basic objective that we not reward failure against the acutely important imperative that we get the financial system doing what it needs to do for recovery,&quot; Geithner said.&lt;/p&gt;

&lt;p&gt;The U.S. House of Representatives last week passed legislation to  recoup controversial bonuses paid to American International Group Inc. Public outrage erupted last week at the fact that AIG paid $165 million in bonuses after receiving $180 billion in government aid.&lt;/p&gt;

&lt;p&gt;Lawmakers said they are considering further legislation to prohibit bonus payments by companies which have received government bailout funds. Firms receiving bailout funds are already restricted from paying senior executives more than $500,000 in total annual compensation and cannot pay out &quot;golden parachutes&quot; to retiring executives.&lt;/p&gt;

&lt;p&gt;Geithner also said asset managers and investors who participate in public-private partnerships to buy distressed assets from banks will not be subjected to new executive compensation restrictions as part of the program.&lt;/p&gt;

&lt;p&gt;&quot;These are generally available programs. They are designed like the housing plan, like the small business plan to get these broader markets working again. For those reasons, the compensation limits do not apply to the asset managers and investors in the program,&quot; he said.&lt;/p&gt;

&lt;p&gt;Geithner did not rule out the possibility that the administration will have to approach Congress for more bailout funds beyond the $700 billion allocated for the Troubled Asset Relief Program (TARP).&lt;/p&gt;

&lt;p&gt;He said the administration will work with Congress to make sure the recovery efforts have the &quot;maximum impact,&quot; which he said requires substantial resources.&lt;/p&gt;

&lt;p&gt;&quot;The basic lesson of financial crises is that you get recessions that are shorter, they cause less damage, you get lower future deficits, and you solve the crisis at the least cost to the taxpayer if you can move more forcefully earlier,&quot; Geithner said.&lt;/p&gt;</media:text>
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<title>Clinton to attend Afghan meeting, no word on Iran</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M50320090323</link>
<pubDate>Mon, 23 Mar 2009 10:44:05 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The State Department announced Monday that U.S. Secretary of State Hillary Clinton would attend a conference on Afghanistan next week but did not say whether she would meet Iranian officials there.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The State Department announced Monday that U.S. Secretary of State Hillary Clinton would attend a conference on Afghanistan next week but did not say whether she would meet Iranian officials there.&lt;/p&gt;

&lt;p&gt;State Department spokesman Robert Wood said Clinton would be accompanied by U.S. special representative to Afghanistan and Pakistan, Richard Holbrooke, to the conference, which is set to be held on March 31 in the Dutch city of The Hague.&lt;/p&gt;

&lt;p&gt;&quot;The Hague ministerial should reaffirm the solid and long-term commitment of the international community to supporting the government of Afghanistan in shaping a better future for Afghanistan and its people,&quot; Wood said.&lt;/p&gt;

&lt;p&gt;Clinton and Holbrooke are expected to provide details of a review of U.S. strategy toward Afghanistan and Pakistan, which is set to be released by the Obama administration before the Dutch conference.&lt;/p&gt;

&lt;p&gt;Earlier this month, Clinton said Iran's foreign minister also would be invited to attend The Hague conference, setting up her first chance to meet a senior official from Tehran in her new role as top U.S. diplomat.&lt;/p&gt;

&lt;p&gt;Last week U.S. President Barack Obama sent a video message to Iran's government and people in which he said Washington wanted to have &quot;constructive ties&quot; with Tehran.&lt;/p&gt;

&lt;p&gt;In an about face from President George W. Bush's isolation policy of Tehran, the Obama administration has said it would like to engage Iran on a range of issues, from its nuclear program to assistance in stabilizing Afghanistan.&lt;/p&gt;

&lt;p&gt;Wood said he knew of no meetings planned between Clinton and the Iranians, but also did not rule it out.&lt;/p&gt;

&lt;p&gt;Iran has said it would be interested in attending the meeting in the Netherlands but has not yet said who could be there.&lt;/p&gt;

&lt;p&gt;Former U.S. Secretary of State Condoleezza Rice attended several conferences aimed at stabilizing Iraq, where Iran was also invited.&lt;/p&gt;

&lt;p&gt;Rice exchanged pleasantries with Iran's Foreign Minister Manouchehr Mottaki at those events but never had substantive talks with him.&lt;/p&gt;

&lt;p&gt;(Reporting by Sue Pleming; Editing by Bill Trott)&lt;/p&gt;</media:text>
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<title>Nobel laureate Krugman slams Geithner bailout plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M4SS20090323</link>
<pubDate>Mon, 23 Mar 2009 10:24:00 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Nobel-prize winning economist Paul Krugman said in remarks published on Monday that the latest U.S. Treasury bailout program is nearly certain to fail, triggering a sense of personal despair.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Nobel-prize winning economist Paul Krugman said in remarks published on Monday that the latest U.S. Treasury bailout program is nearly certain to fail, triggering a sense of personal despair.&lt;/p&gt;

&lt;p&gt;U.S. Treasury Secretary Timothy Geithner on Monday unveiled a plan aimed at persuading private investors to help rid banks up to $1 trillion in toxic assets that that are seen as a roadblock to economic recovery.&lt;/p&gt;

&lt;p&gt;&quot;This is more than disappointing,&quot; Krugman wrote in The New York Times. &quot;&quot;In fact it fills me with a sense of despair.&quot;&lt;/p&gt;

&lt;p&gt;&quot;The Geithner scheme would offer a one-way bet: if asset values go up, the investors profit, but if they go down, the investors can walk away from their debt,&quot; the Princeton University economist said, citing weekend reports outlining the plan.&lt;/p&gt;

&lt;p&gt;&quot;This isn't really about letting markets work. It's just an indirect, disguised way to subsidize purchases of bad assets,&quot; he added.&lt;/p&gt;

&lt;p&gt;Krugman called it a recycled idea of former Treasury Secretary Henry Paulson, who later abandoned the &quot;cash for trash&quot; proposal.&lt;/p&gt;

&lt;p&gt;&quot;But the real problem with this plan is that it won't work,&quot; he says, adding that bad loans may be undervalued because there is too much fear in the current climate.&lt;/p&gt;

&lt;p&gt;&quot;But the fact is that financial executives literally bet their banks on the belief that there was no housing bubble, and the related belief that unprecedented levels of household debt were no problem. They lost that bet. And no amount of financial hocus-pocus -- for that is what the Geithner plan amounts to -- will change that fact,&quot; Krugman wrote.&lt;/p&gt;

&lt;p&gt;While the real economy is being hurt by the meltdown of the financial system itself, Krugman says this is not the first or the last time this has happened. And there are lots of roadmaps to get us out.&lt;/p&gt;

&lt;p&gt;&quot;It goes like this: the government secures confidence in the system by guaranteeing many (though not necessarily all) bank debts. At the same time, it takes temporary control of truly insolvent banks, in order to clean up their books,&quot; Krugman said.&lt;/p&gt;

&lt;p&gt;Time is running out on the Obama administration to take control of the banks - and the crisis.&lt;/p&gt;

&lt;p&gt;&quot;If this plan fails - as it almost surely will - it's unlikely that he'll be able to persuade Congress to come up with more funds to do what he should have done in the first place,&quot; he wrote.&lt;/p&gt;

&lt;p&gt;The White House strongly disagreed with Krugman's assessment, defending the administration plans on the morning talk shows.&lt;/p&gt;

&lt;p&gt;&quot;I think Paul's just wrong on this one,&quot; Christina Romer, head of the White House Council of Economic Advisers, said on ABC's &quot;Good Morning America&quot; show just ahead of the plan's release.&lt;/p&gt;

&lt;p&gt;&quot;This is really tails both the government and the private sector win, heads both the government and the private sector lose. We both are going to have, as the saying goes, skin in the game.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Corbett B. Daly; Editing by Walker Simon)&lt;/p&gt;</media:text>
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<title>Obama says toxic debt plan critical to recovery</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M4QY20090323</link>
<pubDate>Mon, 23 Mar 2009 10:18:57 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama said a toxic debt plan unveiled by his administration on Monday was critical to the U.S. economic recovery but stressed that it would not get credit flowing again overnight.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama said a toxic debt plan unveiled by his administration on Monday was critical to the U.S. economic recovery but stressed that it would not get credit flowing again overnight.&lt;/p&gt;

&lt;p&gt;&quot;The good news is that we have one more critical element in our recovery but we still have a long way to go and we have a lot of work to do,&quot; he told reporters after meeting top economic policymakers, including Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner.&lt;/p&gt;

&lt;p&gt;(Editing by Bill Trott)&lt;/p&gt;</media:text>
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<title>Abbas's government urges Europe to shun Hamas</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M4NZ20090323</link>
<pubDate>Mon, 23 Mar 2009 10:14:25 -0600</pubDate>
<description><![CDATA[RAMALLAH, West Bank (Reuters) - Palestinian President Mahmoud Abbas's Western-backed government warned European states on Monday against easing a boycott of Hamas Islamists, saying it could put unity talks at risk.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;RAMALLAH, West Bank (Reuters) - Palestinian President Mahmoud Abbas's Western-backed government warned European states on Monday against easing a boycott of Hamas Islamists, saying it could put unity talks at risk.&lt;/p&gt;

&lt;p&gt;Foreign Minister Riyad al-Malki said he relayed that message last week to European leaders during talks in Brussels.&lt;/p&gt;

&lt;p&gt;Egyptian efforts to reconcile Abbas's secular Fatah faction, which holds sway in the Israeli-occupied West Bank, and Hamas, which controls the Gaza Strip, have so far been unsuccessful.&lt;/p&gt;

&lt;p&gt;The talks, held in Cairo, were adjourned last week without agreement on the shape or agenda of a proposed unity government that would oversee the rebuilding of the Gaza Strip after Israel's offensive, as well as prepare for new elections.&lt;/p&gt;

&lt;p&gt;Negotiations are expected to resume but big differences remain, including over demands by Fatah that Hamas agree to abide by interim peace agreements signed with Israel. Hamas has refused to make such a commitment.&lt;/p&gt;

&lt;p&gt;The Islamist group, which beat Fatah in a 2006 Palestinian parliamentary election, is shunned by the United States and the European Union as a &quot;terrorist&quot; organization for refusing to renounce violence, recognize Israel and abide by interim agreements.&lt;/p&gt;

&lt;p&gt;But some European states have limited contacts with the group and hold out the possibility of further engagement if the group, which seized control of the Gaza Strip in 2007 after routing Abbas's forces there, softens its stance on Israel.&lt;/p&gt;

&lt;p&gt;Malki said European overtures could undermine the unity talks by giving Hamas the impression that &quot;the international community, and especially the European Union, is ready to change its position toward Hamas&quot;, whether the group agrees to abide by interim agreements or not.&lt;/p&gt;

&lt;p&gt;&quot;There wouldn't be any harm if (European states) talked to Hamas after we reach a reconciliation agreement and after Hamas joins the parties committed to the agreements,&quot; Malki said.&lt;/p&gt;

&lt;p&gt;(Reporting by Mohammed Assadi; Editing by Alison Williams)&lt;/p&gt;

&lt;p&gt;(For blogs and links on Israeli politics and other Israeli and Palestinian news, go to http://blogs.reuters.com/axismundi)&lt;/p&gt;</media:text>
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<title>Nano no ego trip for India's soft-spoken Tata</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M4C320090323</link>
<pubDate>Mon, 23 Mar 2009 09:23:56 -0600</pubDate>
<description><![CDATA[MUMBAI (Reuters) - Ratan Tata must be hoping Monday's launch of the Nano, the world's cheapest car, marks a change in fortunes for Tata Motors and the broader Tata group after a difficult second half of 2008.]]></description>
<guid isPermaLink="false" >USTRE52M4C320090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Janaki Krishnan&lt;/p&gt;

&lt;p&gt;MUMBAI (Reuters) - Ratan Tata must be hoping Monday's launch of the Nano, the world's cheapest car, marks a change in fortunes for Tata Motors and the broader Tata group after a difficult second half of 2008.&lt;/p&gt;

&lt;p&gt;For Tata, a Parsi, the formal launch follows the Parsi new year on Saturday, and offers a chance to reclaim some of the optimism of 2007 and early 2008.&lt;/p&gt;

&lt;p&gt;Then, Tata was lauded as an Indian hero, scion of one of India's best known and most respected business families and the flagbearer of corporate India's growing foreign ambitions.&lt;/p&gt;

&lt;p&gt;In January 2008, a year after engineering corporate India's biggest takeover, group company Tata Steel's $13 billion purchase of Corus, he drove the $2,000 snub-nosed Nano onto a Delhi stage and received a rapturous reception.&lt;/p&gt;

&lt;p&gt;&quot;It was not an ego trip at all, and I had no idea that it would attract this much attention,&quot; the soft-spoken 71 year-old said on Monday of his push to develop the Nano.&lt;/p&gt;

&lt;p&gt;Less than three months after unveiling a vehicle that would revolutionize the industry by making cars affordable to most, Tata Motors agreed to buy the luxury Jaguar and Land Rover marques for $2.3 billion in last March.&lt;/p&gt;

&lt;p&gt;But then the credit crunch hit, making funding harder to finalize, and as recession spread and car demand plummeted, the Jaguar purchase began to look like an expensive indulgence.&lt;/p&gt;

&lt;p&gt;As the company found it hard to refinance bridging loans, investors shied away from a rights issue and its credit ratings were cut. Other Tata companies were told to put acquisition plans on hold.&lt;/p&gt;

&lt;p&gt;And then tragedy. In November the Tata Group's landmark Taj Mahal hotel was one of the sites of militant attacks in Mumbai, in which more than 160 people died.&lt;/p&gt;

&lt;p&gt;PARSI&lt;/p&gt;

&lt;p&gt;Tata is a Parsi, descendants of Iranian Zoroastrians who migrated to India more than 1,000 years ago.&lt;/p&gt;

&lt;p&gt;Unlike many of his  business peers Tata prefers to remain away from the public eye and party circuit.&lt;/p&gt;

&lt;p&gt;His judgment has been questioned before, but he has delivered results. He led Tata Motors, India's biggest maker trucks and buses, into cars in 1998 with its hatchback Indica.&lt;/p&gt;

&lt;p&gt;The initial reception to the car was disappointing as customers complained of poor finishing and defective parts, but since over 1 million Indicas have been sold.&lt;/p&gt;

&lt;p&gt;&quot;I am probably the most difficult critic as a car is being produced, and I've been very pleasantly surprised and enthused by what we have finally gotten this car to be,&quot; he said of the Nano.&lt;/p&gt;

&lt;p&gt;Despite the setbacks since mid-2008, the Cornell University graduate with a degree in architecture and structural engineering still has his eyes on the world.&lt;/p&gt;

&lt;p&gt;Tata said the company was also looking to develop an export model for Europe, and more recently had decided it could also make one for the U.S. market.&lt;/p&gt;

&lt;p&gt;If Tata can pull it off, the Nano could become the symbol of Indian pride he wants it to be.&lt;/p&gt;

&lt;p&gt;&quot;I just hope the dream that we've all had and we've worked so hard for proves itself to be the kind of product that we would like it to be,&quot; he said.&lt;/p&gt;

&lt;p&gt;(Editing by Ranjit Gangadharan and Dan Lalor)&lt;/p&gt;</media:text>
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<title>U.N. warns India against anti-Muslim prejudice</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M45Z20090323</link>
<pubDate>Mon, 23 Mar 2009 09:04:37 -0600</pubDate>
<description><![CDATA[NEW DELHI (Reuters) - The U.N. human rights chief urged India Monday to counter suspicion against its Muslim minority following the Mumbai attacks and warned the country's strict anti-terror measures threatened human rights.]]></description>
<guid isPermaLink="false" >USTRE52M45Z20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Matthias Williams&lt;/p&gt;

&lt;p&gt;NEW DELHI (Reuters) - The U.N. human rights chief urged India Monday to counter suspicion against its Muslim minority following the Mumbai attacks and warned the country's strict anti-terror measures threatened human rights.&lt;/p&gt;

&lt;p&gt;India is still on edge after gunmen killed 166 people in a three-day rampage on the financial hub last November.&lt;/p&gt;

&lt;p&gt;Hundreds of Muslims were detained and questioned over the attacks, angering rights activists who said innocent people were caught up in the backlash.&lt;/p&gt;

&lt;p&gt;&quot;The horrific terrorist attack in Mumbai has also polarized society and risks stoking suspicions against the Muslim community,&quot; said U.N Human Rights chief Navanethem Pillay.&lt;/p&gt;

&lt;p&gt;&quot;Both internal and external terrorist threats have led to counter-terrorist measures that put human rights at risk,&quot; Pillay said in New Delhi during her India visit.&lt;/p&gt;

&lt;p&gt;Religious and caste-based prejudices remain entrenched in Indian society, she said.&lt;/p&gt;

&lt;p&gt;Secular India has a long history of tensions between its majority Hindus and minority Muslims that have exploded in deadly violence. More than 2,000 people, mainly Muslims, were killed in communal riots in Gujarat state in 2002.&lt;/p&gt;

&lt;p&gt;After the Mumbai attacks, the government rushed through new laws in December to allow police to hold suspects for up to 180 days without charge and created a new FBI-style national police force, in what was seen as an attempt to soothe public anger.&lt;/p&gt;

&lt;p&gt;But human rights experts at the time said India's main political parties ignored concerns the new legislation could be misused in the absence of an independent supervisory body to monitor its implementation.&lt;/p&gt;

&lt;p&gt;Pillay also questioned India's human rights record in the troubled state of Jammu and Kashmir, where security forces have been battling a 20-year separatist insurgency that has killed more than 47,000 people.&lt;/p&gt;

&lt;p&gt;Pillay said security forces have excessive emergency powers under the Armed Forces Special Powers Act, a law which lets them fire at civilians breaking laws in &quot;disturbed&quot; areas and make arrests without a warrant.&lt;/p&gt;

&lt;p&gt;&quot;In the past two decades, hundreds of cases of disappearances have been reported in Kashmir,&quot; Pillay said. &quot;These cases must be properly investigated in order to bring a sense of closure to the families who for far too long have been awaiting news, any news.&quot;&lt;/p&gt;

&lt;p&gt;(Editing by Bappa Majumdar and Paul Tait)&lt;/p&gt;</media:text>
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<title>Holbrooke rejects report on sidelining Karzai</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M41H20090323</link>
<pubDate>Mon, 23 Mar 2009 08:51:17 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - A senior U.S. official rejected on Monday a newspaper report that Washington and its European allies sought to create a new chief executive or prime ministerial role in Afghanistan to rival President Hamid Karzai.]]></description>
<guid isPermaLink="false" >USTRE52M41H20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;BRUSSELS (Reuters) - A senior U.S. official rejected on Monday a newspaper report that Washington and its European allies sought to create a new chief executive or prime ministerial role in Afghanistan to rival President Hamid Karzai.&lt;/p&gt;

&lt;p&gt;&quot;I don't know what they're talking about,&quot; Richard Holbrooke, U.S. special representative for Afghanistan and Pakistan, told reporters in Brussels, referring to the report in British newspaper The Guardian.&lt;/p&gt;

&lt;p&gt;&quot;It doesn't reflect any views that I am aware of in the government I work for and it's certainly not a universal NATO plan or anything,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;Many people, including Afghans themselves, have called for a prime ministerial system, but the system of the government is the one set up by the Afghan constitution,&quot; Holbrooke said.&lt;/p&gt;

&lt;p&gt;&quot;And nobody should be trying to change the constitution, except in accordance with its own provisions. I have no idea what that article was about.&quot;&lt;/p&gt;

&lt;p&gt;In Kabul, Karzai's spokesman Humayun Hamidzadeh called the report &quot;nonsense.&quot;&lt;/p&gt;

&lt;p&gt;&quot;Introducing a prime minister in a country in which there is a constitution which says there is a presidential system is simply impossible.&quot;&lt;/p&gt;

&lt;p&gt;Karzai, who faces presidential polls this year, is widely seen as ineffective by his Western backers.&lt;/p&gt;

&lt;p&gt;The Guardian report said the idea of installing a more dependable figure to work alongside Karzai was one of the proposals in an Afghanistan strategy review by the administration of President Barack Obama.&lt;/p&gt;

&lt;p&gt;Holbrooke was in Brussels to discuss the review with NATO and EU ambassadors.&lt;/p&gt;

&lt;p&gt;(Reporting by David Brunnstrom, editing by Mark Trevelyan)&lt;/p&gt;</media:text>
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<title>The Nano, world's cheapest car, to hit Indian roads</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M2PA20090323</link>
<pubDate>Mon, 23 Mar 2009 08:45:50 -0600</pubDate>
<description><![CDATA[MUMBAI (Reuters) - The Tata Motors Nano, the world's cheapest car at around $2,000, will hit Indian roads in July and, with demand set to far outstrip supply, the first 100,000 owners will be picked at random.]]></description>
<guid isPermaLink="false" >USTRE52M2PA20090323</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9383998&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Janaki Krishnan&lt;/p&gt;

&lt;p&gt;MUMBAI (Reuters) - The Tata Motors Nano, the world's cheapest car at around $2,000, will hit Indian roads in July and, with demand set to far outstrip supply, the first 100,000 owners will be picked at random.&lt;/p&gt;

&lt;p&gt;Hundreds of thousands are expected to put their name down for a Nano, including many previously limited to motorbikes or public transport, following Monday's formal launch.&lt;/p&gt;

&lt;p&gt;&quot;We are at the gates offering a new form of transportation to the people of India, and later I hope other markets as well,&quot; Chairman Ratan Tata told reporters.&lt;/p&gt;

&lt;p&gt;Launching six months behind schedule and with production in the first year severely constrained, it will take over a year to deliver the first 100,000 Nanos to an otherwise subdued market.&lt;/p&gt;

&lt;p&gt;&quot;From the drawing board to its commercial launch, the car has overcome several challenges. I hope it will provide safe, affordable four-wheel transportation to families who till now have not been able to own a car,&quot; Ratan Tata said.&lt;/p&gt;

&lt;p&gt;Since the Nano was first shown, its main production plant had to be moved following land protests, the company posted its first loss in seven years, its shares have dropped 70 percent and its credit rating been downgraded with the threat of further downgrades remaining.&lt;/p&gt;

&lt;p&gt;The first 100,000 Nano owners will be randomly picked from bookings made April 9-25, and their prices will be guaranteed, said Tata, who more than a year ago promised a 100,000 rupee ($1,980) dealer price at a glitzy unveiling.&lt;/p&gt;

&lt;p&gt;The basic version, excluding taxes, will still be 100,000 rupees. But once taxes and dealers charges are included, the Nano will be in showrooms for 112,735 indian rupees in some parts of India, while top-end models with air conditioning and other extras will cost close to 200,000 rupees.&lt;/p&gt;

&lt;p&gt;A European variant will be launched by 2011, and the company is also looking at the United States as the economic situation has made low-cost cars even more attractive, Tata said.&lt;/p&gt;

&lt;p&gt;&quot;This was never conceived as the cheapest car, but as providing transport to those people who never owned a car.&lt;/p&gt;

&lt;p&gt;&quot;Driven mainly by the change in demand that we see elsewhere in the world, we suddenly felt we had a product that could be of considerable interest as a low-cost product in western Europe, eastern Europe, the UK and even the U.S.,&quot; Tata said.&lt;/p&gt;

&lt;p&gt;STUPENDOUS RESPONSE&lt;/p&gt;

&lt;p&gt;The Nano can be booked at more than 30,000 locations in 1,000 cities across India, including Tata's department and electronics stores, with booking forms costing 300 rupees. It can also be booked online (www.tatanano.com).&lt;/p&gt;

&lt;p&gt;Bookings will need a down payment very close to the full price, managing director Ravi Kant said. &quot;We have had a stupendous response so far, breaking all class and other barriers.&quot;&lt;/p&gt;

&lt;p&gt;Those bookings could help the firm battle falling sales of commercial vehicles, its mainstay, and help repay $2 billion of bridge loans due in June and taken out for the acquisition of Jaguar and Land Rover last year.&lt;/p&gt;

&lt;p&gt;While the cost of raw materials such as steel has changed a lot since the Nano was first proposed, and even since its unveiling, the company decided to hold the price for the first 100,000 cars and expects it to be profitable, Tata said.&lt;/p&gt;

&lt;p&gt;&quot;It's often asked whether this project is going to be an act of philanthropy, which I assure you it will not,&quot; Tata said.&lt;/p&gt;

&lt;p&gt;Analysts said Tata may raise prices soon, but slim margins, initial capacity constraints and muted market sentiment mean that breakeven on the project will take 5-6 years.&lt;/p&gt;

&lt;p&gt;&quot;Scaling-up challenges are expected to be humungous,&quot; CRISIL Research said in a note, adding volumes of 200,000-500,000 units were needed in the medium term for the project to be viable.&lt;/p&gt;

&lt;p&gt;Tata can currently produce about 60,000 Nanos a year until a 250,000-unit plant in Gujarat state comes onstream by end-2009.&lt;/p&gt;

&lt;p&gt;PRICE CORRECTION&lt;/p&gt;

&lt;p&gt;Competition is not far off: Volkswagen, Toyota, Honda and Fiat are eyeing the segment, and the venture of Renault/Nissan with Bajaj is on track to launch a $2,500 car in 2011.&lt;/p&gt;

&lt;p&gt;Meanwhile, Maruti Suzuki and Hyundai Motor, the two biggest carmakers in India, are unlikely to cede ground to the Nano without a fight.&lt;/p&gt;

&lt;p&gt;&quot;I would imagine there'd be some reaction from the market. I expect price correction from small-car makers,&quot; Tata said.&lt;/p&gt;

&lt;p&gt;(Additional reporting by John Mair; Writing by Rina Chandran; Editing by Ranjit Gangadharan and Dan Lalor)&lt;/p&gt;

&lt;p&gt;($1 = 50.48 rupees)&lt;/p&gt;</media:text>
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<title>FACTBOX: Specifications of Tata's Nano</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3SN20090323</link>
<pubDate>Mon, 23 Mar 2009 08:45:47 -0600</pubDate>
<description><![CDATA[(Reuters) - Tata Motors will on Monday launch the "People's Car", the Nano, which it unveiled in January 2008 as the world's cheapest car with a dealer price of 100,000 rupees ($1,900).]]></description>
<guid isPermaLink="false" >USTRE52M3SN20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Tata Motors will on Monday launch the &quot;People's Car&quot;, the Nano, which it unveiled in January 2008 as the world's cheapest car with a dealer price of 100,000 rupees ($1,900).&lt;/p&gt;

&lt;p&gt;Following are some details of the 4-door car, available in standard and deluxe versions:&lt;/p&gt;

&lt;p&gt;* Length: 3.1 meters&lt;/p&gt;

&lt;p&gt;* Height: 1.6 meters&lt;/p&gt;

&lt;p&gt;* Width: 1.5 meters&lt;/p&gt;

&lt;p&gt;* Engine: Rear-wheel drive, 2-cylinder, 623 cc, multi-point fuel-injection petrol engine, rear mounted. Tata said it is the first time a 2-cylinder gasoline engine is used in a car with single balancer shaft.&lt;/p&gt;

&lt;p&gt;* Safety: Has an all sheet-metal body, with crumple zones, intrusion-resistant doors, seat-belts, and rear tailgate glass bonded to the body. Tires are tubeless.&lt;/p&gt;

&lt;p&gt;* Environment: Tailpipe emission performance beats current regulatory requirements, and the Nano has a lower overall pollution level than two-wheelers made in India, Tata has said. A high fuel efficiency (20 km/liter) ensures low carbon dioxide emissions. * The Team: In 2003, a four-member team at Tata's Engineering Research Center in Pune city started work on a &quot;very low cost transportation with four wheels&quot; and a price of 100,000 rupees. Helped by the Institute of Development in Automotive Engineering in Italy, the team grew to 500, headed by Girish Wagh.&lt;/p&gt;

&lt;p&gt;* Nano Europa: Will launch in some European markets by 2011:&lt;/p&gt;

&lt;p&gt;Length: 3.29 meters; Width: 1.58 meters; Wheelbase: 2.28 meters. Engine: 3-cylinder, all-aluminum MPFI engine with 5-speed automatic transmission and electric power steering. Plus, advanced restraint systems, ABS, ESP and airbags.&lt;/p&gt;

&lt;p&gt;(Sources: Tata Motors; www.tatanano.com)&lt;/p&gt;

&lt;p&gt;(Compiled by Rina Chandran; Editing by Lincoln Feast)&lt;/p&gt;</media:text>
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<title>U.S. existing home sales rose in February</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3MS20090323</link>
<pubDate>Mon, 23 Mar 2009 08:37:23 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Sales of previously owned U.S. homes rose at their fastest pace in nearly six years in February, data showed on Monday, offering some hope to an economy battling a 15-month recession.]]></description>
<guid isPermaLink="false" >USTRE52M3MS20090323</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9384713&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Lucia Mutikani&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - Sales of previously owned U.S. homes rose at their fastest pace in nearly six years in February, data showed on Monday, offering some hope to an economy battling a 15-month recession.&lt;/p&gt;

&lt;p&gt;The National Association of Realtors (NAR) said sales rebounded 5.1 percent in February to a 4.72 million-unit annual rate, notching their largest gain since July 2003, but about 45 percent of these were foreclosure or short-sale transactions.&lt;/p&gt;

&lt;p&gt;This was above market expectations for a drop to a 4.45 million-unit pace after January's 4.49 million rate. Compared to the same period last year, February sales were down 4.6 percent, the NAR said.&lt;/p&gt;

&lt;p&gt;U.S. stocks, already rallying after the U.S. government released details of a plan to clean out toxic assets from banks' balance sheets, extended gains on the housing data.&lt;/p&gt;

&lt;p&gt;The housing market is at the core of the economic and financial meltdown and stabilizing it is seen as a key ingredient for the recovery from a recession that started in December 2007.&lt;/p&gt;

&lt;p&gt;&quot;Because entry level buyers are shopping for bargains, distressed sales accounted for 40-45 percent of transactions in February,&quot; said NAR chief economist Lawrence Yun. &quot;Distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the median price.&quot;&lt;/p&gt;

&lt;p&gt;Sales were up in all four regions, with the West outperforming. In California, the median listing price rose for the first time in three years.&lt;/p&gt;

&lt;p&gt;Government data last week showed a rebound in U.S. housing starts and new building permits in February.&lt;/p&gt;

&lt;p&gt;&quot;It suggests that the drop in prices and mortgages rates and an increase in affordability are having an impact in the market,&quot; said Alan Gayle, senior investment strategist at Ridgeworth Investments in Richmond, Virginia.&lt;/p&gt;

&lt;p&gt;&quot;Stabilization in the housing market is critical for the economy to start, and this is a good report.&quot;&lt;/p&gt;

&lt;p&gt;There is hope that the government's $272 billion package to stem the tide of foreclosures, together with aggressive efforts by the Federal Reserve to keep interest rates down could lay the foundation for the housing market's recovery.&lt;/p&gt;

&lt;p&gt;NAR's Yun said the government's stimulus package could add 1 million sales this year, but depressed levels of consumer confidence and rising unemployment could derail this projection.&lt;/p&gt;

&lt;p&gt;The median national home price declined 15.5 percent in February from a year ago to $165,400, the second biggest decline on record.&lt;/p&gt;

&lt;p&gt;The inventory of existing homes for sale rose 5.2 percent to 3.80 million from the 3.61 million overstock reported in January. That represented 9.7 months' supply at the current sales pace, unchanged from January.&lt;/p&gt;

&lt;p&gt;Analysts said reducing this stock of unsold homes was critical for the housing market's recovery.&lt;/p&gt;

&lt;p&gt;&quot;An overhang of inventory will continue to plague the market, putting downward pressure on prices and construction activity for some time to come,&quot; said Adam York, an economist at Wachovia in Charlotte, North Carolina.&lt;/p&gt;

&lt;p&gt;&quot;The housing market will remain stressed until more reasonable inventory levels are restored.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by Ryan Vlastelica in New York; Editing by Andrea Ricci)&lt;/p&gt;</media:text>
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<title>INSTANT VIEW: U.S. existing home sales rose in February</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3VE20090323</link>
<pubDate>Mon, 23 Mar 2009 08:36:36 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - The pace of sales of existing home in the U.S. rose 5.1 percent in February to a 4.72 million-unit annual rate, rebounding from the previous month's drop, the National Association of Realtors said on Monday.]]></description>
<guid isPermaLink="false" >USTRE52M3VE20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - The pace of sales of existing home in the U.S. rose 5.1 percent in February to a 4.72 million-unit annual rate, rebounding from the previous month's drop, the National Association of Realtors said on Monday.&lt;/p&gt;

&lt;p&gt;KEY POINTS: * Economists polled by Reuters were expecting home resales to slip to a 4.45 million-unit pace, from the 4.49 million rate initially reported for January, which was unrevised. February's sales increase was the largest since July 2003. * The inventory of existing homes for sale rose 5.2 percent to 3.80 million from the 3.61 million overstock reported in January. * The median national home price declined 15.5 percent from a year ago to $165,400. That was the second biggest decline on record.&lt;/p&gt;

&lt;p&gt;COMMENTS:&lt;/p&gt;

&lt;p&gt;JACK ABLIN, CHIEF INVESTMENT OFFICER, HARRIS PRIVATE BANK,&lt;/p&gt;

&lt;p&gt;CHICAGO:&lt;/p&gt;

&lt;p&gt;&quot;This is great news, this is going help get all that inventory off the books of troubled owners.&lt;/p&gt;

&lt;p&gt;&quot;The one thing that we have to be careful about is while we see on the surface there's 11 or 12 month supply of unsold inventory there's probably this latent inventory that is not for sale right now as homeowners feel they may start to dump if the market improves. We'll have to see how this plays out but there could be some existing homeowners that if they see the market pick up will start to dump their inventory into -- so that could put possibly a little additional pressure on prices.&quot;&lt;/p&gt;

&lt;p&gt;JAY MUELLER, PORTFOLIO MANAGER, STRONG CAPITAL MANAGEMENT INC,&lt;/p&gt;

&lt;p&gt;MENOMONEE FALLS, WISCONSIN:&lt;/p&gt;

&lt;p&gt;&quot;I think it's probably a mistake to get too excited about (the rise in home sales). It's always nice to have a little bit of good news but I strongly suspect that we haven't seen the bottom of the housing market yet.&lt;/p&gt;

&lt;p&gt;&quot;Forty-five percent of it apparently was distressed property so foreclosure activity is causing a certain amount of transaction volume. I'm sure there is some bargain hunting, there in some response to the drop in mortgage rates, so all those things are likely to be factors (in the rise).&quot;&lt;/p&gt;

&lt;p&gt;GREGORY MILLER, CHIEF ECONOMIST, SUNTRUST BANKS INC, ATLANTA,&lt;/p&gt;

&lt;p&gt;GEORGIA:&lt;/p&gt;

&lt;p&gt;&quot;The truth is, there are a lot of houses being sold, not by the standards of 2005 and 2006, but there's a lot of activity nonetheless.&lt;/p&gt;

&lt;p&gt;&quot;Considering the amount of assistance that the government is committed to delivering, if that does nothing else ... it's going to restore some element of confidence in developers' ability to market new product and it's going to increase potential purchasers' willingness to shop in earnest.&lt;/p&gt;

&lt;p&gt;&quot;The end of this fall is probably nearer rather than farther because of this government assistance.&lt;/p&gt;

&lt;p&gt;&quot;On top of all of that, Fed Chairman Bernanke has now made good on his commitment to reduce mortgage interest rates. The number that's been bandied about is 4 1/2 percent and we're just right around there. That's not quite historic. We've seen other 4-1/2s in the past, but this one is also, if we believe the Fed chairman's commitment, going to be around for a while.&lt;/p&gt;

&lt;p&gt;&quot;So folks are now shopping with low prices and low interest rates, assuming they meet qualifying standards, some of which will be buffered by government assistance.&quot;&lt;/p&gt;

&lt;p&gt;MICHELLE MEYER, ECONOMIST, BARCLAYS CAPITAL, NEW YORK:&lt;/p&gt;

&lt;p&gt;&quot;Certainly the existing home sales data was above expectations. But, what was surprising to me was the big jump in the Northeast as it has not been hit as hard by foreclosures. So this, as opposed to past increases, is not a foreclosure story. That was surprising to me. The fact that supply did not increase was also a good thing, but it is still very high. It is a volatile number and we need to see what happens in the next few months and see how the spring season shapes up.&quot;&lt;/p&gt;

&lt;p&gt;BILL EMERSON, CEO, QUICKEN LOANS, LIVONIA, MICHIGAN:&lt;/p&gt;

&lt;p&gt;&quot;Anytime you see an increase in existing home sales it's good, but inventories are up as well. A lot of first-time home buyers are getting into the marketplace and they're buying the lower priced homes. They're looking for bargains and they're finding them. Lower prices coupled with very low interest rates and an $8,000 tax credit are causing first-time home buyers to dive in. Inventories are up because more and more homes are still coming into the market. While it's good to see sales go up, it's more important to see inventories go down. When that happens, only then can you start to talk about a housing correction.&quot;&lt;/p&gt;

&lt;p&gt;ALAN GAYLE, SENIOR INVESTMENT STRATEGIST, RIDGEWORTH&lt;/p&gt;

&lt;p&gt;INVESTMENTS, RICHMOND, VIRGINIA:&lt;/p&gt;

&lt;p&gt;&quot;The report is encouraging. It suggests that the drop in prices and mortgages rates and an increase in affordability is having an impact in the market. This is just one month's number, so we do need to be a little skeptical. However, stabilization in the housing market is critical for the economy to start, and this is a good report.&lt;/p&gt;

&lt;p&gt;&quot;The Treasury's toxic asset plan has top billing today, but ultimately the policy efforts we've seen over the past week has to be followed by fundamental numbers like these. Policies on their own won't put the economy back on track. These numbers will get second billing today, but it is data like this that will put the economy back on track.&quot;&lt;/p&gt;

&lt;p&gt;KATHY LIEN, DIRECTOR OF CURRENCY RESEARCH, GLOBAL FOREX&lt;/p&gt;

&lt;p&gt;TRADING, NEW YORK:&lt;/p&gt;

&lt;p&gt;&quot;The existing home sales report was better than expected but it is not a total surprise after the other good housing figures we had a couple of days ago. If anything, it is compounding the optimism on the recent improvement in the financial markets. As for the move in the euro, a lot of it is still technically driven after last week's gains. Today's price action in euro-dollar is also a result of the move in the pound versus the common currency.&quot;&lt;/p&gt;

&lt;p&gt;MARKET REACTION: STOCKS: U.S. equity indexes add to gains. BONDS: U.S. Treasury debt prices pare gains. DOLLAR: U.S. dollar holds gains against euro.&lt;/p&gt;</media:text>
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<title>Little Nano carries a big burden for India's Tata</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3SL20090323</link>
<pubDate>Mon, 23 Mar 2009 08:24:39 -0600</pubDate>
<description><![CDATA[SANAND, India, March 18 (Reuters) - What a difference a year makes.]]></description>
<guid isPermaLink="false" >USTRE52M3SL20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Rina Chandran - Analysis&lt;/p&gt;

&lt;p&gt;SANAND, India, March 18 (Reuters) - What a difference a year makes.&lt;/p&gt;

&lt;p&gt;In early 2008, Tata Motors unveiled its Nano to a rapturous media reception as the snub-nosed, 4-seater with a 100,000-rupee ($1,945) price tag created a new category of super-cheap cars for the masses.&lt;/p&gt;

&lt;p&gt;Just weeks later, Tata Motors acquired the Jaguar and Land Rover brands for $2.3 billion from Ford Motor Co in a blaze of glory, and the company revelled in the global spotlight.&lt;/p&gt;

&lt;p&gt;But Tata, India's top vehicle maker, next week rolls out the Nano six months behind schedule, amid worries that an economic downturn and production constraints may spoil the success of the world's cheapest car.&lt;/p&gt;

&lt;p&gt;Since the Nano was first shown, the main production plant had to be moved following land protests, Tata Motors posted a first loss in seven years as sales slumped, and its shares have dropped 75 percent. On top of that, Tata Motors' credit rating was downgraded as its debt-fuelled expansion binge left it exposed to the financial crisis.&lt;/p&gt;

&lt;p&gt;&quot;In the last 12 months, Tata has been hit by a perfect storm,&quot; said Ashvin Chotai, managing director at consultancy Intelligence Automotive Asia in London.&lt;/p&gt;

&lt;p&gt;&quot;At the time, it was unimaginable that the venerable Tata would have difficulty tapping credit markets. But its resources became stretched from venturing out on so many fronts, and the slump in sales and tighter credit worsened the situation.&quot;&lt;/p&gt;

&lt;p&gt;A bridge loan of $2 billion is due in June, with Standard &amp;amp; Poors warning of another ratings downgrade because of the &quot;extremely adverse&quot; operating environment for Jaguar/Land Rover, Tata's ambitious capex plans and deteriorating cash flow.&lt;/p&gt;

&lt;p&gt;The high fuel and commodity costs that made the Nano imperative a year ago have faded somewhat, but its place in the history books is still secure, with a popular following that could rival the Beetle, Mini and Fiat 500, analysts say.&lt;/p&gt;

&lt;p&gt;&quot;The Nano will still create a new segment, bridging the gap between motorbikes and entry-level cars, and it will still be the first of its kind,&quot; said Mohit Arora, a director at JD Power Asia-Pacific in Singapore. &quot;Those fundamentals haven't changed.&quot;&lt;/p&gt;</media:text>
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<title>TIMELINE: India's Tata Motors: from trains to trucks to Nano</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3SO20090323</link>
<pubDate>Mon, 23 Mar 2009 08:24:39 -0600</pubDate>
<description><![CDATA[(Reuters) - India's Tata Motors will on Monday launch the Nano, the "People's Car", which it unveiled last January as the world's cheapest car with a dealer price of 100,000 rupees ($1,914).]]></description>
<guid isPermaLink="false" >USTRE52M3SO20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - India's Tata Motors will on Monday launch the Nano, the &quot;People's Car&quot;, which it unveiled last January as the world's cheapest car with a dealer price of 100,000 rupees ($1,914).&lt;/p&gt;

&lt;p&gt;Following are some key events from Tata Motors' history:&lt;/p&gt;

&lt;p&gt;1945 - Tata Engineering and Locomotive Co Ltd (TELCO) set up as a locomotive maker at the end of World War Two&lt;/p&gt;

&lt;p&gt;1954 - Company shifts to making trucks in a joint venture with Germany's Daimler Benz&lt;/p&gt;

&lt;p&gt;1977 - Commences production of commercial vehicles&lt;/p&gt;

&lt;p&gt;1994 - Enters venture with Daimler to make Mercedes Benz cars in India&lt;/p&gt;

&lt;p&gt;1998 - Launches fully indigenous passenger car, the Indica&lt;/p&gt;

&lt;p&gt;2001 - Ends joint venture with Daimler&lt;/p&gt;

&lt;p&gt;2002 - TELCO renamed Tata Motors Ltd&lt;/p&gt;

&lt;p&gt;2003 - Announces plan to build world's cheapest car, to sell for 100,000 rupees&lt;/p&gt;

&lt;p&gt;2004 - Acquires South Korea's Daewoo Commercial Vehicle Co, and lists on the New York Stock Exchange. Launches Indigo sedan&lt;/p&gt;

&lt;p&gt;2005 - Buys 21 percent stake in Spanish bus maker Hispano Carrocera SA, launches mini-truck Ace in India&lt;/p&gt;

&lt;p&gt;2006 - Signs manufacturing and distribution agreement with Fiat, enters venture with Brazilian bus maker Marcopolo&lt;/p&gt;

&lt;p&gt;2008 - Unveils the Nano at Delhi Auto Expo&lt;/p&gt;

&lt;p&gt;- Buys Jaguar and Land Rover from Ford Motor Co for $2.3 billion&lt;/p&gt;

&lt;p&gt;Sources: Reuters; www.tatamotors.com&lt;/p&gt;

&lt;p&gt;(Compiled by Rina Chandran; Editing by Lincoln Feast)&lt;/p&gt;</media:text>
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<title>Q+A: India's Tata Motors to launch Nano small car</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3SM20090323</link>
<pubDate>Mon, 23 Mar 2009 08:24:39 -0600</pubDate>
<description><![CDATA[MUMBAI (Reuters) - Tata Motors, India's top vehicle maker, on Monday launches the Nano, the world's cheapest car, in a move that could dramatically change the auto market in the world's second most populous nation.]]></description>
<guid isPermaLink="false" >USTRE52M3SM20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;MUMBAI (Reuters) - Tata Motors, India's top vehicle maker, on Monday launches the Nano, the world's cheapest car, in a move that could dramatically change the auto market in the world's second most populous nation.&lt;/p&gt;

&lt;p&gt;The Nano debuted in January 2008 and was expected to be on sale late last year, but its arrival was delayed a dispute over the land where a purpose-built facility was to be located.&lt;/p&gt;

&lt;p&gt;Ahead of Monday's launch, here are some frequently asked questions.&lt;/p&gt;

&lt;p&gt;Q. What will the Nano cost?&lt;/p&gt;

&lt;p&gt;A. The ex-factory price is 100,000 rupees ($1,975), but to drive one out of the showroom, customers will have to add dealer charges and taxes, taking the on-the-road price up to 130,000 rupees, dealers say. Buyers can also pay for extras such as air conditioning.&lt;/p&gt;

&lt;p&gt;Q. When will the Nano be on Indian roads?&lt;/p&gt;

&lt;p&gt;A. Dealers don't expect the Nano to be available before the mid-year. Bookings only start in the second week of April, and Tata Motors is expected to take time to make allotments and deliveries.&lt;/p&gt;

&lt;p&gt;Q. How many Nanos will Tata be producing?&lt;/p&gt;

&lt;p&gt;A. Large-scale production has been delayed by the relocation row that shifted production to Gujarat from West Bengal last year. As a stop-gap arrangement, Nanos will be rolled out from Tata Motors' existing car factories in Pune in western India and Pantnagar in Northern India.&lt;/p&gt;

&lt;p&gt;Analysts estimate only about 50,000 cars will be available in the first year until the 250,000 capacity unit in Gujarat comes onstream.&lt;/p&gt;

&lt;p&gt;Q. How many people can the Nano accommodate?&lt;/p&gt;

&lt;p&gt;A. The car can seat four people. Tata Motors Chairman Rata Tata has said his inspiration for the cheap car was the common sight of a family of four riding on a motorbike.&lt;/p&gt;

&lt;p&gt;Q. Is it safe?&lt;/p&gt;

&lt;p&gt;A. According to Tata Motors, the Nano's safety performance exceeds current Indian regulatory requirements. It has an all sheet metal body and safety features include crumple zones, intrusion resistant doors, seat belts, strong seats and anchorages. Tata says the Nano's tubeless tires, apart from reducing friction, provide better balance and stability.&lt;/p&gt;

&lt;p&gt;A version for the European markets, Tata Nano Europa, will have even more stringent safety standards with anti-lock brake systems and airbags.&lt;/p&gt;

&lt;p&gt;Q. Is it environmentally friendly?&lt;/p&gt;

&lt;p&gt;A. Tata Motors says the Nano's tailpipe emission performance exceeds regulatory requirements. It has a lower pollution level than two-wheelers being manufactured in India today. The Nano Europa has low carbon dioxide emission of less than 100 grams per kilometer. Environmentalists, however, worry that India's roads and infrastructure will struggle to cope with a surge in car ownership.&lt;/p&gt;

&lt;p&gt;Q. How does Tata manage to make (sell) a car so cheaply?&lt;/p&gt;

&lt;p&gt;A. The wheels are made of pressed steel, where the cost is less than using alloy. The positioning of the engine in the space behind the rear seat also keeps costs down. The engine was built in-house by Tata Motors, which has also worked with Germany's Krug to reduce capital and variable costs, such as paint and the number of tools used to make parts. Tata says the 100,000 rupee price tag would only be available for a limited period.&lt;/p&gt;

&lt;p&gt;Q. How many Indians currently own cars&lt;/p&gt;

&lt;p&gt;A. There are around 9 vehicles per 1,000 people, well below levels in developed countries.&lt;/p&gt;

&lt;p&gt;Q. How much does a 2-wheeler (scooter, bike) cost?&lt;/p&gt;

&lt;p&gt;A. Prices of motorcycles range from 30,000 rupees at the low end to 1.2 million rupees at the higher-end. Tata has said the Nano aims to give people the chance to shift from a bike to car ownership.&lt;/p&gt;

&lt;p&gt;($1=50.6 rupees)&lt;/p&gt;

&lt;p&gt;(Editing by John Mair &amp;amp; Ian Geoghegan)&lt;/p&gt;</media:text>
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<title>FedEx plane crashes on landing in Tokyo, two dead</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1P920090323</link>
<pubDate>Mon, 23 Mar 2009 07:53:09 -0600</pubDate>
<description><![CDATA[TOKYO (Reuters) - A FedEx Corp cargo plane caught in a gust of wind crashed and burst into flames as it landed at Japan's Narita airport on Monday, killing the two crew and closing the main runway at the busy gateway to Tokyo.]]></description>
<guid isPermaLink="false" >USTRE52L1P920090323</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9383537&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Chisa Fujioka&lt;/p&gt;

&lt;p&gt;TOKYO (Reuters) - A FedEx Corp cargo plane caught in a gust of wind crashed and burst into flames as it landed at Japan's Narita airport on Monday, killing the two crew and closing the main runway at the busy gateway to Tokyo.&lt;/p&gt;

&lt;p&gt;Airlines canceled more than 30 flights and diverted some to other airports as the longest of two runways was closed.&lt;/p&gt;

&lt;p&gt;&quot;We have information that strong winds caused the plane to divert from the runway,&quot; a Narita Airport spokeswoman said.&lt;/p&gt;

&lt;p&gt;The FedEx plane landed hard, tipped onto its left wing and burst into flames, video of the crash on public broadcaster NHK showed.&lt;/p&gt;

&lt;p&gt;A bright orange fireball and black billowing smoke engulfed the plane as it flipped and skidded off the runway. Firefighters sprayed foam onto the broken remains of the plane with its wheels in the air.&lt;/p&gt;

&lt;p&gt;The MD-11 plane had been on a cargo flight from Guangzhou, China, FedEx said in a statement.&lt;/p&gt;

&lt;p&gt;The plane's two American crew had died, a transport ministry official told reporters, in what was the first fatal crash at Narita airport since it opened in 1978.&lt;/p&gt;

&lt;p&gt;It was unclear how long the main runway would be closed at Narita, the main international airport for the Japanese capital.&lt;/p&gt;

&lt;p&gt;Japan Airlines Corp, Japan's main international airline, said 27 flights had been canceled, affecting nearly 6,700 people, and some arriving flights had been diverted to Tokyo's Haneda airport and Sapporo airport in northern Japan.&lt;/p&gt;

&lt;p&gt;All Nippon Airways said in a statement that the airline had canceled 9 flights so far, including international flights to New York, Washington and London.&lt;/p&gt;

&lt;p&gt;Japan's meteorological agency had issued an advisory of gales for the area around the airport and a local observatory said it had notified airlines of possible wind shear -- a condition in which wind speed and direction suddenly change.&lt;/p&gt;

&lt;p&gt;The MD-11 was a freighter made by McDonnell Douglas, part of Boeing Co.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Linda Sieg and Yoko Nishikawa; Editing by Rodney Joyce)&lt;/p&gt;</media:text>
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<title>Geithner: private sector needs to take risks</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M3BL20090323</link>
<pubDate>Mon, 23 Mar 2009 07:35:10 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner on Monday said that the private sector must be willing to take on some risk for his bank asset cleansing plan to work.]]></description>
<guid isPermaLink="false" >USTRE52M3BL20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner on Monday said that the private sector must be willing to take on some risk for his bank asset cleansing plan to work.&lt;/p&gt;

&lt;p&gt;Geithner, briefing media on the plan, said creating public-private partnerships to buy distressed assets from banks will help to avert a longer and deeper recession and make it easier for banks to raise private capital.&lt;/p&gt;

&lt;p&gt;&quot;For these programs to work investors have to be prepared to take some risk,&quot; Geithner said.&lt;/p&gt;

&lt;p&gt;(Reporting by David Lawder and Karey Wutkowski; Editing by Theodore d'Afflisio)&lt;/p&gt;</media:text>
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<title>White House: private sector showing interest in plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M37320090323</link>
<pubDate>Mon, 23 Mar 2009 07:13:40 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The private sector is showing interest in a new plan to deal with toxic assets in which private firms would partner with the U.S. government, Austan Goolsbee, a member of the White House Council of Economic Advisers, said on Monday.]]></description>
<guid isPermaLink="false" >USTRE52M37320090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The private sector is showing interest in a new plan to deal with toxic assets in which private firms would partner with the U.S. government, Austan Goolsbee, a member of the White House Council of Economic Advisers, said on Monday.&lt;/p&gt;

&lt;p&gt;&quot;I think you have seen a considerable amount of interest on the part of the private sector,&quot; he said in an interview with Reuters Financial Television. (Reporting by Tabassum Zakaria; Editing by Theodore d'Afflisio)&lt;/p&gt;</media:text>
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<title>Exclusive: PIMCO to participate in U.S. toxic asset plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M34J20090323</link>
<pubDate>Mon, 23 Mar 2009 07:08:37 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Bill Gross, the influential manager of the world's largest bond fund, gave the Obama administration's financial stability effort a much-needed endorsement on Monday, saying PIMCO will participate in the public-private plan.]]></description>
<guid isPermaLink="false" >USTRE52M34J20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Jennifer Ablan&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Bill Gross, the influential manager of the world's largest bond fund, gave the Obama administration's financial stability effort a much-needed endorsement on Monday, saying PIMCO will participate in the public-private plan.&lt;/p&gt;

&lt;p&gt;&quot;This is perhaps the first win-win-win policy to be put on the table and it should be welcomed enthusiastically,&quot; the founder and co-chief investment officer of PIMCO told Reuters.&lt;/p&gt;

&lt;p&gt;Gross' Pacific Investment Management Co oversees roughly $800 billion. He manages PIMCO's flagship Total Return fund, which currently has $139 billion in assets.&lt;/p&gt;

&lt;p&gt;&quot;We intend to participate and do our part to serve clients as well as promote economic recovery,&quot; he said, adding PIMCO will both buy toxic assets and manage some of them.&lt;/p&gt;

&lt;p&gt;Another influential money manager, BlackRock Inc, told Reuters on Sunday that it too intends to be involved as one of the investment managers in the public-private investment fund. A Kohlberg Kravis Roberts &amp;amp; Co executive said on Monday the private equity firm would be &quot;happy and willing&quot; to partner with the government if an investment deal to buy assets made sense.&lt;/p&gt;

&lt;p&gt;The U.S. Treasury Department on Monday rolled out detailed plans for persuading private investors to help rid banks of up to $1 trillion in toxic assets that are seen as a roadblock to economic recovery.&lt;/p&gt;

&lt;p&gt;Generous government financing will underpin the Public-Private Investment Program, which the Treasury will launch with $75 billion to $100 billion from its $700 billion bailout fund approved by Congress last fall.&lt;/p&gt;

&lt;p&gt;&quot;From PIMCO's perspective, we are intrigued by the potential double-digit returns as well as the opportunity to share them with not only clients but the American taxpayer,&quot; Gross said.&lt;/p&gt;

&lt;p&gt;Gross's endorsement is important after the lack of big investor interest in the debut of the Federal Reserve's consumer lending program last week.&lt;/p&gt;

&lt;p&gt;The Fed's Term Asset-Backed Securities Loan Facility, or TALF, received only $4.7 billion in requests for loans out of $200 billion on offer, heightening fears that big money managers will also shun the government's toxic-asset plan.&lt;/p&gt;

&lt;p&gt;TSUNAMI OF DISTRUST AFTER AIG&lt;/p&gt;

&lt;p&gt;Gross' vote of confidence also comes after last week's political furor surrounding the American International Group Inc bonus payment debacle and the anti-Wall Street mood, which raised the risks for private capital firms thinking about partnering with the Treasury.&lt;/p&gt;

&lt;p&gt;Congress is moving to clamp down on companies receiving financial bailout money by severely taxing bonus payments.&lt;/p&gt;

&lt;p&gt;There is concern that any financial firm getting involved in the toxic asset plan could face retroactive limits on compensation or profits.&lt;/p&gt;

&lt;p&gt;&quot;There's a sense of having gone too far and that there's fear that anyone that participates in this or any other government program would be subject to increased scrutiny and standards that didn't exist in the past ... I couldn't discourage that thinking,&quot; Gross told Reuters Financial Television.&lt;/p&gt;

&lt;p&gt;&quot;I would point to Secretary (Timothy) Geithner's guarantee and promise as well as that from (Federal Reserve Chairman) Ben Bernanke that basically they want to maintain and ultimately produce a thriving private sector and the limitations that may be placed on AIG connections, I guess, won't exist in this particular program. So PIMCO has no fear of that, so to speak.&quot;&lt;/p&gt;

&lt;p&gt;He said the Treasury's public-private partnership plan has &quot;an objective of liquefying relatively frozen portions of the credit market and promoting the extension of new loans in the U.S. economy.&quot;&lt;/p&gt;

&lt;p&gt;Gross added: &quot;To succeed, it will require participation from both willing buyers as well as sellers, in addition to the substantial government assistance being provided in the proposed policy package.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by Daniel Burns, Chris Sanders and Megan Davies; Editing by Dan Grebler)&lt;/p&gt;</media:text>
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<title>FACTBOX: U.S. Treasury details toxic asset plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M31Q20090323</link>
<pubDate>Mon, 23 Mar 2009 06:59:48 -0600</pubDate>
<description><![CDATA[(Reuters) - The U.S. Treasury on Monday provided details on its public-private plan to sop up bad assets now choking bank balance sheets. Following is a look at the plan:]]></description>
<guid isPermaLink="false" >USTRE52M31Q20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - The U.S. Treasury on Monday provided details on its public-private plan to sop up bad assets now choking bank balance sheets. Following is a look at the plan:&lt;/p&gt;

&lt;p&gt;OVERVIEW&lt;/p&gt;

&lt;p&gt;The U.S. Treasury will provide $75 billion to $100 billion to seed the program. The money would come from the $700 billion financial rescue fund Congress approved in October.&lt;/p&gt;

&lt;p&gt;The Treasury plans to leverage that money to buy $500 billion worth of toxic assets with financing from the Federal Deposit Insurance Corp, a U.S. bank regulator, and the Federal Reserve, with the potential to reach to up to $1 trillion.&lt;/p&gt;

&lt;p&gt;Reaching the $1 trillion level without seeking new funding from Congress will depend on investor interest in the program and which parts of it prove more popular. The plan relies on existing legal authority, so the Obama administration does not need congressional approval to start it.&lt;/p&gt;

&lt;p&gt;By bringing in private investors, the government hopes to jump-start market mechanisms to establish benchmark prices for these assets. The plan will not impose executive pay restrictions on passive private investors in the program.&lt;/p&gt;

&lt;p&gt;&quot;LEGACY&quot; LOANS PROGRAM&lt;/p&gt;

&lt;p&gt;Treasury plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy distressed &quot;legacy&quot; loans from banks.&lt;/p&gt;

&lt;p&gt;These investment funds could purchase these loans by raising FDIC-guaranteed debt. The agency will offer up to a 6-1 debt-to-equity leverage ratio for these loans. So if investors and the Treasury each contribute $1 billion in equity to a fund, that entity can raise up to $12 billion in FDIC financing to purchase $14 billion in loans.&lt;/p&gt;

&lt;p&gt;Under this part of the program, banks would approach the FDIC with a pool of loans they want to sell. The FDIC would offer financing and Treasury would partner with private investors to bid in auctions for the loans.&lt;/p&gt;

&lt;p&gt;The auction and promised leverage determines the price for the assets. The Treasury could provide anywhere from 50 percent to 80 percent of the equity capital.&lt;/p&gt;

&lt;p&gt;Obama administration officials said this part of the program could make up the largest portion of the asset purchases and the distressed loans are the largest problem for banks that is hampering their lending.&lt;/p&gt;

&lt;p&gt;&quot;LEGACY&quot; SECURITIES PROGRAM&lt;/p&gt;

&lt;p&gt;Public-private funds also will get opportunities to buy so-called &quot;legacy' securities with a combination of private and government capital, possibly levered up by the government.&lt;/p&gt;

&lt;p&gt;There are two basic approaches:&lt;/p&gt;

&lt;p&gt;--Under one, the Federal Reserve will provide financing by expanding its Term Asset-Backed Securities Loan Facility, or TALF. The TALF, which is now a $200 billion program, will be expanded up to $1 trillion and will begin accepting older residential mortgage-backed securities that were once rated Triple-A and commercial mortgage-backed securities and asset-backed securities that are Triple-A as collateral for loans.&lt;/p&gt;

&lt;p&gt;These securities will be given a valuation &quot;haircut&quot; larger than other TALF assets because of their riskier nature.&lt;/p&gt;

&lt;p&gt;Currently, the TALF offers loans only against new or recently issued Triple-A rated asset-backed securities, with a narrower pool of securities acceptable as collateral, such as those backed by car loans, credit card debt and student loans.&lt;/p&gt;

&lt;p&gt;--Under the second approach, the Treasury will initially hire five investment managers to raise capital with a dollar-for-dollar public match. These fund managers would then be able to access senior debt from the Treasury equal to 50 percent of the combined capital to buy securities.&lt;/p&gt;

&lt;p&gt;The government and private investors would share equally in gains and losses from the program, and each dollar in private equity will leverage two dollars in public funds.&lt;/p&gt;

&lt;p&gt;Applicants for these investment management positions must be U.S.-based firms able to demonstrate they can raise at least $500 million in private capital and have at least $10 billion in eligible assets under management. Applications for the positions must be submitted by April 10, and winners will be informed of the decision by May 1.&lt;/p&gt;

&lt;p&gt;Winners will have a &quot;limited period of time&quot; to raise at least $500 million in private capital.&lt;/p&gt;

&lt;p&gt;The Treasury hopes that by competing with each other, the partnership would help create a price for legacy securities that are not currently trading, while helping to ensure the government does not pay too much.&lt;/p&gt;</media:text>
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<title>U.S. bank shares soar on toxic asset plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M2SJ20090323</link>
<pubDate>Mon, 23 Mar 2009 06:26:00 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Shares of banks including Citigroup Inc and Bank of America Corp soared on hopes a U.S. government plan to rid lenders of up to $1 trillion of troubled assets will resuscitate lending, earnings and the economy.]]></description>
<guid isPermaLink="false" >USTRE52M2SJ20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Jennifer Ablan and Jonathan Stempel&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Shares of banks including Citigroup Inc and Bank of America Corp soared on hopes a U.S. government plan to rid lenders of up to $1 trillion of troubled assets will resuscitate lending, earnings and the economy.&lt;/p&gt;

&lt;p&gt;In afternoon trading, Bank of America was up 18.3 percent to $7.32, while Citigroup was up 15.7 percent to $3.03. The 24-member KBW Bank Index of large lenders was up 11.1 percent, though it remained well in the red for 2009.&lt;/p&gt;

&lt;p&gt;The Public-Private Investment Program calls for the government to provide financing for private investors to buy assets from banks, with the government shouldering much of the risk. Those assets have been illiquid because investors and banks have been far apart in assessing what they are worth.&lt;/p&gt;

&lt;p&gt;While it is unclear how assets would be priced, opening the market could allow banks to free up capital, lend more and perhaps raise new private capital on their own.&lt;/p&gt;

&lt;p&gt;&quot;It relieves an anchor around the necks of investors concerned about the viability of these institutions,&quot; said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.&lt;/p&gt;

&lt;p&gt;BlackRock Inc and Allianz SE's Pacific Investment Management Co, two of the largest and most influential U.S. asset managers, told Reuters they intend to participate in the program.&lt;/p&gt;

&lt;p&gt;&quot;This is perhaps the first win-win-win policy to be put on the table, and it should be welcomed enthusiastically,&quot; Pimco co-chief investment officer Bill Gross said in an interview.&lt;/p&gt;

&lt;p&gt;BANKS EXPRESS INITIAL SUPPORT&lt;/p&gt;

&lt;p&gt;Barclays Capital analyst Jason Goldberg wrote that Bank of America, Citigroup, JPMorgan Chase &amp;amp; Co, PNC Financial Services Group Inc, State Street Corp and Wells Fargo &amp;amp; Co could be large beneficiaries of the program because they have already taken large writedowns on eligible assets. This might make them more amenable to asset sales.&lt;/p&gt;

&lt;p&gt;Large banks welcomed the government's efforts, while stopping short of endorsing the details.&lt;/p&gt;

&lt;p&gt;Bank of America spokesman Scott Silvestri said &quot;we are in favor of the concept.&quot; Morgan Stanley spokeswoman Jeanmarie McFadden said &quot;the program looks innovative, and we expect it could have a positive impact on credit markets.&quot;&lt;/p&gt;

&lt;p&gt;Wells Fargo spokeswoman Julia Tunis Bernard said her bank supports any Treasury plan to help banks &quot;efficiently sell troubled assets, while still providing an investment return to the U.S. taxpayer.&quot;&lt;/p&gt;

&lt;p&gt;Goldman Sachs Group Inc spokesman Michael DuVally declined to comment. The other banks had no immediate comment.&lt;/p&gt;

&lt;p&gt;INVESTOR DISTRUST MAY BE ROADBLOCK&lt;/p&gt;

&lt;p&gt;Through Friday, bank shares had fallen 41 percent this year, as housing and other credit losses, and worries about future losses, continued to soar. Banks lost $32.1 billion in the fourth quarter, their first quarterly loss since 1990, the Federal Deposit Insurance Corp said.&lt;/p&gt;

&lt;p&gt;The government in November agreed to share losses on $300.8 billion of troubled assets at Citigroup, and two months later entered a similar agreement covering $118 billion of assets at Bank of America.&lt;/p&gt;

&lt;p&gt;Treasury Secretary Timothy Geithner told reporters that for the latest program to work, &quot;investors have to be prepared to take some risk.&lt;/p&gt;

&lt;p&gt;Analysts said the political climate might also dissuade private investors from getting involved.&lt;/p&gt;

&lt;p&gt;The Treasury Department said participation in the program would not subject those investors, many of which are less regulated than banks, to tough limits on executive pay.&lt;/p&gt;

&lt;p&gt;Banks obtaining capital under the government's Troubled Asset Relief Program have criticized Congress for imposing new executive pay limits. And hysteria over bonuses paid out by insurer American International Group Inc has led to legislation that could heavily tax bonuses on thousands of workers who played no role in fueling the credit crisis.&lt;/p&gt;

&lt;p&gt;David Trone, an analyst at Fox-Pitt Kelton, said the new program may fail to unclog the financial system absent a &quot;miraculous reversal&quot; of what he called deep distrust among private investors about partnering with the government.&lt;/p&gt;

&lt;p&gt;In afternoon trading, JPMorgan Chase was up 15.6 percent to $26.75; Wells Fargo 16.6 percent to $16.31; PNC 14.6 percent to $30.85; State Street 13.6 percent to $28.04; Goldman Sachs 9.6 percent to $106.62, and Morgan Stanley 14.3 percent to $23.13.&lt;/p&gt;

&lt;p&gt;(Reporting by Jennifer Ablan and Jonathan Stempel; Additional reporting by Leah Schnurr in New York and David Lawder and Glenn Somerville in Washington, D.C.; editing by John Wallace and Gerald E. McCormick)&lt;/p&gt;</media:text>
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<title>TEXT: U.S. Treasury fact sheet on investment program</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M2PY20090323</link>
<pubDate>Mon, 23 Mar 2009 06:17:56 -0600</pubDate>
<description><![CDATA[Involving Private Investors to Set Prices: A broad array of investors are expected to participate in the Legacy Loans Program. The participation of individual investors, pension plans, insurance companies and other long-term investors is particularly encouraged. The Legacy Loans Program will facilitate the creation of individual Public-Private Investment Funds which will purchase asset pools on a discrete basis. The program will boost private demand for distressed assets that are currently held]]></description>
<guid isPermaLink="false" >USTRE52M2PY20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;Involving Private Investors to Set Prices: A broad array of investors are expected to participate in the Legacy Loans Program. The participation of individual investors, pension plans, insurance companies and other long-term investors is particularly encouraged. The Legacy Loans Program will facilitate the creation of individual Public-Private Investment Funds which will purchase asset pools on a discrete basis. The program will boost private demand for distressed assets that are currently held by banks and facilitate market-priced sales of troubled assets.&lt;/p&gt;

&lt;p&gt;Using FDIC Expertise to Provide Oversight: The FDIC will provide oversight for the formation, funding, and operation of these new funds that will purchase assets from banks.&lt;/p&gt;

&lt;p&gt;Joint Financing from Treasury, Private Capital and FDIC: Treasury and private capital will provide equity financing and the FDIC will provide a guarantee for debt financing issued by the Public-Private Investment Funds to fund asset purchases. The Treasury will manage its investment on behalf of taxpayers to ensure the public interest is protected. The Treasury intends to provide 50 percent of the equity capital for each fund, but private managers will retain control of asset management subject to rigorous oversight from the FDIC.&lt;/p&gt;

&lt;p&gt;The Process for Purchasing Assets Through The Legacy Loans Program:&lt;/p&gt;

&lt;p&gt;Purchasing assets in the Legacy Loans Program will occur through the following process: Banks Identify the Assets They Wish to Sell: To start the process, banks will decide which assets - usually a pool of loans - they would like to sell. The FDIC will conduct an analysis to determine the amount of funding it is willing to guarantee. Leverage will not exceed a 6-to-1 debt-to-equity ratio. Assets eligible for purchase will be determined by the participating banks, their primary regulators, the FDIC and Treasury. Financial institutions of all sizes will be eligible to sell assets.&lt;/p&gt;

&lt;p&gt;Pools Are Auctioned Off to the Highest Bidder: The FDIC will conduct an auction for these pools of loans. The highest bidder will have access to the Public-Private Investment Program to fund 50 percent of the equity requirement of their purchase.&lt;/p&gt;

&lt;p&gt;Financing Is Provided Through FDIC Guarantee: If the seller accepts the purchase price, the buyer would receive financing by issuing debt guaranteed by the FDIC. The FDIC-guaranteed debt would be collateralized by the purchased assets and the FDIC would receive a fee in return for its guarantee.&lt;/p&gt;

&lt;p&gt;Private Sector Partners Manage the Assets: Once the assets have been sold, private fund managers will control and manage the assets until final liquidation, subject to strict FDIC oversight. Sample Investment Under the Legacy Loans Program&lt;/p&gt;

&lt;p&gt;Step 1: If a bank has a pool of residential mortgages with $100 face value that it is seeking to divest, the bank would approach the FDIC. Step 2: The FDIC would determine, according to the above process, that they would be willing to leverage the pool at a 6-to-1 debt-to-equity ratio. Step 3: The pool would then be auctioned by the FDIC, with several private sector bidders submitting bids. The highest bid from the private sector - in this example, $84 - would be the winner and would form a Public-Private Investment Fund to purchase the pool of mortgages. Step 4: Of this $84 purchase price, the FDIC would provide guarantees for $72 of financing, leaving $12 of equity. Step 5: The Treasury would then provide 50% of the equity funding required on a side-by-side basis with the investor. In this example, Treasury would invest approximately $6, with the private investor contributing $6. Step 6: The private investor would then manage the servicing of the asset pool and the timing of its disposition on an ongoing basis - using asset managers approved and subject to oversight by the FDIC.&lt;/p&gt;

&lt;p&gt;The Legacy Securities Program: The goal of this program is to restart the market for legacy securities, allowing banks and other financial institutions to free up capital and stimulate the extension of new credit. The resulting process of price discovery will also reduce the uncertainty surrounding the financial institutions holding these securities, potentially enabling them to raise new private capital. The Legacy Securities Program consists of two related parts designed to draw private capital into these markets by providing debt financing from the Federal Reserve under the Term Asset-Backed Securities Loan Facility (TALF) and through matching private capital raised for dedicated funds targeting legacy securities.&lt;/p&gt;

&lt;p&gt;Expanding TALF to Legacy Securities to Bring Private Investors Back into the Market: The Treasury and the Federal Reserve are today announcing their plans to create a lending program that will address the broken markets for securities tied to residential and commercial real estate and consumer credit. The intention is to incorporate this program into the previously announced Term Asset-Backed Securities Facility (TALF).&lt;/p&gt;

&lt;p&gt;Providing Investors Greater Confidence to Purchase Legacy Assets: As with securitizations backed by new originations of consumer and business credit already included in the TALF, we expect that the provision of leverage through this program will give investors greater confidence to purchase these assets, thus increasing market liquidity.&lt;/p&gt;

&lt;p&gt;Funding Purchase of Legacy Securities: Through this new program, non-recourse loans will be made available to investors to fund purchases of legacy securitization assets. Eligible assets are expected to include certain non-agency residential mortgage backed securities (RMBS) that were originally rated AAA and outstanding commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) that are rated AAA.&lt;/p&gt;

&lt;p&gt;Working with Market Participants: Borrowers will need to meet eligibility criteria. Haircuts will be determined at a later date and will reflect the riskiness of the assets provided as collateral. Lending rates, minimum loan sizes, and loan durations have not been determined. These and other terms of the programs will be informed by discussions with market participants. However, the Federal Reserve is working to ensure that the duration of these loans takes into account the duration of the underlying assets.&lt;/p&gt;

&lt;p&gt;Partnering Side-by-Side with Private Investors in Legacy Securities Investment Funds: Treasury will make co-investment/leverage available to partner with private capital providers to immediately support the market for legacy mortgage- and asset-backed securities originated prior to 2009 with a rating of AAA at origination.&lt;/p&gt;

&lt;p&gt;Side-by-Side Investment with Qualified Fund Managers: Treasury will approve up to five asset managers with a demonstrated track record of purchasing legacy assets though we may consider adding more depending on the quality of applications received. Managers whose proposals have been approved will have a period of time to raise private capital to target the designated asset classes and will receive matching Treasury funds under the Public-Private Investment Program. Treasury funds will be invested one-for-one on a fully side-by-side basis with these investors.&lt;/p&gt;</media:text>
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<title>IMF says clean up banks to tackle dire world crisis</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1YL20090323</link>
<pubDate>Mon, 23 Mar 2009 06:09:01 -0600</pubDate>
<description><![CDATA[GENEVA (Reuters) - The world is in a dire economic crisis, but no recovery is possible until the financial sector is cleaned up, the head of the International Monetary Fund said on Monday.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090323&amp;t=2&amp;i=9383061&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Jonathan Lynn&lt;/p&gt;

&lt;p&gt;GENEVA (Reuters) - The world is in a dire economic crisis, but no recovery is possible until the financial sector is cleaned up, the head of the International Monetary Fund said on Monday.&lt;/p&gt;

&lt;p&gt;The crisis will push millions into poverty and unemployment, risking social unrest and even war, and urgent action is required, IMF Managing Director Dominique Strauss-Kahn said.&lt;/p&gt;

&lt;p&gt;&quot;Bluntly the situation is dire,&quot; he told a meeting on the crisis at the International Labor Organization, a United Nations agency representing unions, employers and governments that studies Labor issues.&lt;/p&gt;

&lt;p&gt;Strauss-Kahn was talking less than two weeks before a summit of the G20 leading nations on April 2 to tackle the crisis.&lt;/p&gt;

&lt;p&gt;As the crisis spills over into developing countries, millions of people will be pushed back into poverty and hardship, Strauss-Kahn said.&lt;/p&gt;

&lt;p&gt;&quot;All this will affect dramatically unemployment and beyond unemployment for many countries it will be at the roots of social unrest, some threat to democracy, and may be for some cases it can also end in war,&quot; he said.&lt;/p&gt;

&lt;p&gt;REVERSAL&lt;/p&gt;

&lt;p&gt;Strauss-Kahn confirmed that the IMF would shortly update its economic forecasts to show the world economy contracting by between 0.5 and 1.0 percent this year -- the first reversal in more than 50 years of sustained growth.&lt;/p&gt;

&lt;p&gt;Developed countries would shrink by a post-war record of about 3 percent, he said.&lt;/p&gt;

&lt;p&gt;But the IMF still believed recovery was possible in 2010 provided bold policies were followed.&lt;/p&gt;

&lt;p&gt;Firstly this involves boosting demand, but monetary policy -- moving interest rates -- has reached its limits, even with the unconventional tools central banks are using, he said.&lt;/p&gt;

&lt;p&gt;That is why the IMF had called for governments around the world to pump money in the economy to the tune of 2 percent of gross domestic product, he said.&lt;/p&gt;

&lt;p&gt;He noted that this did not mean that all countries should provide this fiscal stimulus, as some were in too fragile a financial position to increase spending.&lt;/p&gt;

&lt;p&gt;But so far those countries that could afford it had pumped in about 1.6-1.7 percent of world GDP.&lt;/p&gt;

&lt;p&gt;&quot;I do believe there is still some room to go further in some countries, but taking it all round it's not that bad,&quot; Strauss-Kahn said, adding this showed that international coordination was working well.&lt;/p&gt;

&lt;p&gt;But the prerequisite for success was the restoration of a healthy financial sector, he said.&lt;/p&gt;

&lt;p&gt;Although bailing out banks was politically unpopular, businesses and households could not survive without a working banking system, he said.&lt;/p&gt;

&lt;p&gt;The IMF's experience of 122 banking crises around the world had taught it that economic recovery was impossible until banks were cleaned up, whether this was done quickly or slowly.&lt;/p&gt;

&lt;p&gt;&quot;You can put in as much stimulus as you want. It will just melt in the sun as snow if at the same time you are not able to have a generally smaller financial sector than before but a healthy financial sector at work,&quot; he said.&lt;/p&gt;

&lt;p&gt;Despite the need for many countries to run huge deficits, emerging countries must not ignore the importance of rebuilding confidence in order to attract private capital in a globalized world, he said.&lt;/p&gt;

&lt;p&gt;(Reporting by Jonathan Lynn)&lt;/p&gt;</media:text>
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<title>U.S. outlines new Afghan strategy to NATO allies</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M27P20090323</link>
<pubDate>Mon, 23 Mar 2009 05:09:41 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - The United States outlined its strategy review for Afghanistan to NATO and EU allies on Monday after President Barack Obama said it would contain an exit strategy and greater emphasis on economic development.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By David Brunnstrom&lt;/p&gt;

&lt;p&gt;BRUSSELS (Reuters) - The United States outlined its strategy review for Afghanistan to NATO and EU allies on Monday after President Barack Obama said it would contain an exit strategy and greater emphasis on economic development.&lt;/p&gt;

&lt;p&gt;U.S. Special Representative for Afghanistan and Pakistan Richard Holbrooke stressed the need for a regional approach to the Afghan problem, including Pakistan, and the importance of a stepped up civilian and military effort, a NATO spokesman said.&lt;/p&gt;

&lt;p&gt;He also underlined the importance of plans for a significant boost in size of the Afghan police force.&lt;/p&gt;

&lt;p&gt;&quot;I found a very encouraging symmetry of views between our NATO allies and other troop-contributing countries and the United States,&quot; Holbrooke told reporters after the NATO meeting.&lt;/p&gt;

&lt;p&gt;&quot;They put a heavy emphasis on increasing the police, the size of the police in Afghanistan,&quot; he said.&lt;/p&gt;

&lt;p&gt;Holbrooke said the strategy review would be completed &quot;soon,&quot; given practical deadlines including a major international meeting on Afghanistan in the Hague next week.&lt;/p&gt;

&lt;p&gt;Holbrooke told the BBC in an interview that the priority would be dealing with the situation in tribal regions along the border with Pakistan, which have been a haven for militants.&lt;/p&gt;

&lt;p&gt;&quot;That is the main message we want to get across. You cannot separate Afghanistan and Pakistan,&quot; he said.&lt;/p&gt;

&lt;p&gt;He criticized the previous Bush administration for neglecting Afghanistan and vowed &quot;more troops, more resources, more high-level attention.&quot;&lt;/p&gt;

&lt;p&gt;&quot;I can't promise you a timetable or guaranteed success in an area this difficult,&quot; he said. &quot;But I can guarantee you that this administration is going to do everything it can to succeed in one of the most difficult situations in the world.&quot;&lt;/p&gt;

&lt;p&gt;President Barack Obama has admitted the United States and its allies are not winning in Afghanistan, where insurgent violence at its worst level since the U.S.-led invasion in late 2001.&lt;/p&gt;

&lt;p&gt;Obama has ordered deployment of 17,000 more troops on top of nearly 70,000 foreign troops already there.&lt;/p&gt;

&lt;p&gt;At the weekend Holbrooke said that as well as boosting the Afghan police, Washington wanted increased focus on alternative livelihoods to the opium farming that is helping fuel the insurgency. He said he would seek very significantly expanded funding for agriculture sector job creation.&lt;/p&gt;

&lt;p&gt;Among the U.S. ideas are increased focus on counter-terrorism and the training of Afghan forces, a counter-insurgency push in the violent south and east and pursuit of a wider campaign to protect civilians.&lt;/p&gt;

&lt;p&gt;Hundreds of civilian officials from across the U.S. government would be sent to Afghanistan as part of the new strategy in a sort of &quot;civilian surge.&quot;&lt;/p&gt;

&lt;p&gt;(Editing by Myra MacDonald)&lt;/p&gt;</media:text>
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<title>Pakistan's Zardari says needs help with terrorism</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M20T20090323</link>
<pubDate>Mon, 23 Mar 2009 04:34:28 -0600</pubDate>
<description><![CDATA[LONDON (Reuters) - Pakistan's President Asif Ali Zardari called on Britain and the United States on Monday to do more to help his government fight terrorism and insisted he would not allow Islamic militancy to take over in Pakistan.]]></description>
<guid isPermaLink="false" >USTRE52M20T20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;LONDON (Reuters) - Pakistan's President Asif Ali Zardari called on Britain and the United States on Monday to do more to help his government fight terrorism and insisted he would not allow Islamic militancy to take over in Pakistan.&lt;/p&gt;

&lt;p&gt;Zardari said his Pakistan Peoples Party had brought democracy to the country after eight years under the military rule of General Pervez Musharraf, and the international community should now play its part.&lt;/p&gt;

&lt;p&gt;Asked in an interview on Sky News television to outline his key message to Britain and the United States, Zardari said: &quot;The message is: You've got democracy, democracy is part of the solution -- but ... the second part of the solution is with you, so please give us the help that we need.&quot;&lt;/p&gt;

&lt;p&gt;Zardari gave no details in the broadcast interview of what kind of help he wanted, but Sky News quoted him on its Web site as saying: &quot;We haven't received a dollar. Until then we don't have the tools to fight.&quot;&lt;/p&gt;

&lt;p&gt;Western allies fear that recent political instability in Pakistan is allowing Islamic militant groups like al Qaeda and the Taliban to take hold in vulnerable areas of the nuclear-armed Muslim nation, but Zardari rejected such fears.&lt;/p&gt;

&lt;p&gt;&quot;The Taliban are not going to be in control of any part of my country,&quot; he said, adding that reports of Sharia law being handed down in some areas of the country were &quot;media hype.&quot;&lt;/p&gt;

&lt;p&gt;Zardari, the widower of assassinated former prime minister Benazir Bhutto, said the international community had to recognize and accept its role in the rise of Islamic militancy and international terrorism.&lt;/p&gt;

&lt;p&gt;&quot;The world has to accept that we are all collectively responsible for creating this monster,&quot; he said. &quot;I think the world has not been told about this, they have not been talking about it, they have been in denial.&quot;&lt;/p&gt;

&lt;p&gt;He rejected suggestions that his government was seeking to duck its responsibilities, saying: &quot;It is my fight, it is our fight, it is Pakistan's war, we will fight it. But, if you help us we can do it sooner.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Kate Kelland. Editing by Peter Millership)&lt;/p&gt;</media:text>
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<title>U.S., Afghan peace moves are a trick, militant says</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1QM20090323</link>
<pubDate>Mon, 23 Mar 2009 03:41:54 -0600</pubDate>
<description><![CDATA[KHOST (Reuters) - U.S.-backed Afghan government attempts to open peace talks with Taliban-led insurgents are a trick to divide the militants, a top Afghan insurgent commander allied to the Taliban and al Qaeda said.]]></description>
<guid isPermaLink="false" >USTRE52M1QM20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Elyas Wahdat&lt;/p&gt;

&lt;p&gt;KHOST (Reuters) - U.S.-backed Afghan government attempts to open peace talks with Taliban-led insurgents are a trick to divide the militants, a top Afghan insurgent commander allied to the Taliban and al Qaeda said.&lt;/p&gt;

&lt;p&gt;The new U.S. policy on Afghanistan to be unveiled soon will include more emphasis on economic assistance as well as the 17,000 extra troops already committed, and President Barack Obama has said he is open to the idea of talks with moderate Taliban.&lt;/p&gt;

&lt;p&gt;But a key commander of the Haqqani network, which is allied to both the Taliban and al Qaeda, rejected the idea outright.&lt;/p&gt;

&lt;p&gt;&quot;The Taliban are under one command, there are no moderate Taliban fighters among us,&quot; Sirajuddin Haqqani told Reuters in an interview by satellite telephone from an undisclosed location.&lt;/p&gt;

&lt;p&gt;&quot;This is a plot by Western nations trying to weaken and demoralize our fighters,&quot; he said.&lt;/p&gt;

&lt;p&gt;Led by Jalaluddin Haqqani, the group built up a fierce reputation fighting the Soviet invasion in the 1980s with support from the U.S. Central Intelligence Agency (CIA) and Pakistan's Inter-Services Intelligence (ISI). It also formed ties with Osama bin Laden and his Arab fighters active in the same region.&lt;/p&gt;

&lt;p&gt;Jalaluddin Haqqani then joined the Taliban government in the later 1990s and his group now leads the insurgency in southeast Afghanistan with bases across the border in Pakistan.&lt;/p&gt;

&lt;p&gt;But effective leadership of the group has now passed from Jalaluddin Haqqani, who is in his 70s, to his more radical eldest son Sirajuddin, security analysts say.&lt;/p&gt;

&lt;p&gt;The network is thought to be behind a number of high-profile suicide attacks in Kabul, notably the attack on the Indian embassy in July last year that killed more than 50 people.&lt;/p&gt;

&lt;p&gt;Sirajuddin Haqqani insisted his group was under the command of Taliban leader Mullah Mohammad Omar, who styles himself as the head of the Islamic Emirate of Afghanistan and has repeatedly rejected peace overtures from Afghan President Hamid Karzai.&lt;/p&gt;

&lt;p&gt;&quot;The Afghan government do send us peace proposals engaging high-ranking officials like ministers and governors, but we haven't come up with an agreement to talk. Once again I want to say this: we are followers of Emirate's policy,&quot; Haqqani said.&lt;/p&gt;

&lt;p&gt;Afghan officials have met with moderate former Taliban officials in Saudi-sponsored talks aimed at exploring ways toward more meaningful dialogue, but the Taliban leadership says there can be no peace negotiations until the 70,000 international troops now in Afghanistan leave the country.&lt;/p&gt;

&lt;p&gt;Obama said on Sunday the United States had to come up with an exit strategy for Afghanistan, but Haqqani said he would not trust any deadline set for troop withdrawal by Western nations.&lt;/p&gt;

&lt;p&gt;&quot;It is just a trick, they will say it, but won't act on it. We want the independence of Afghanistan and no foreign troops on Afghan soil before any possibility of peace talks,&quot; he said.&lt;/p&gt;

&lt;p&gt;AL QAEDA LINKS&lt;/p&gt;

&lt;p&gt;International troops are locked in a stalemate in southern Afghanistan, military commanders admit, one of the main reasons for the U.S. policy review.&lt;/p&gt;

&lt;p&gt;The deadlock however also applies to the insurgents, who use suicide and roadside bombs to sap the Western will to fight but are unable to overcome foreign troops militarily.&lt;/p&gt;

&lt;p&gt;Violence in Afghanistan is at its highest levels since the 2001 U.S.-led invasion. Some 5,000 people, including more than 2,100 civilians, were killed in fighting last year alone, a 40 percent rise on 2007, the United Nations says.&lt;/p&gt;

&lt;p&gt;Sixty-eight foreign soldiers have been killed so far this year, far higher than the same period in any other year. Fourteen international troops were killed in the past week alone.&lt;/p&gt;

&lt;p&gt;Haqqani promised &quot;fresh tactics&quot; in the fight as spring now arrives in Afghanistan, melting the snow in the mountain passes.&lt;/p&gt;

&lt;p&gt;A suspected U.S. drone fired missiles into a Haqqani stronghold on the Pakistani side of the border in September last year killing 23 people, most of them Haqqani relatives.&lt;/p&gt;

&lt;p&gt;Haqqani confirmed close relatives were killed in the attack and said his family had support and influence in Pakistan's tribal belt after being based there while fighting the Soviets.&lt;/p&gt;

&lt;p&gt;He also admitted links with al Qaeda whose leaders, including bin Laden, are thought to have fled to Pakistan's lawless tribal region after U.S.-led forces toppled the Taliban following the September 11, 2001, attacks on the United States.&lt;/p&gt;

&lt;p&gt;Security analysts point to the relative sophistication of Haqqani attacks such as that on Kabul's five-star Serena hotel last year that killed seven people, the assassination bid on Karzai last April and the Indian Embassy bombing as evidence of al Qaeda support.&lt;/p&gt;

&lt;p&gt;&quot;We have brotherly ties with al Qaeda, they are our Muslim brothers fighting for the same cause, but we do not need any support from them because we are strong ourselves,&quot; Haqqani said.&lt;/p&gt;

&lt;p&gt;&quot;There are many foreign fighters willing to come to fight in Afghanistan, but we don't need them as we are being supported by the public which has turned against the government and its Western backers for their brutality and tyranny,&quot; he said.&lt;/p&gt;

&lt;p&gt;(Writing by Jon Hemming; Editing by Paul Tait)&lt;/p&gt;</media:text>
</item>
<item>
<title>Japan robot model no challenge yet to human rivals</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1PQ20090323</link>
<pubDate>Mon, 23 Mar 2009 03:39:24 -0600</pubDate>
<description><![CDATA[TOKYO (Reuters) - It may have been a fashion first, but supermodel Naomi Campbell has nothing to fear.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Chika Osaka&lt;/p&gt;

&lt;p&gt;TOKYO (Reuters) - It may have been a fashion first, but supermodel Naomi Campbell has nothing to fear.&lt;/p&gt;

&lt;p&gt;The HRP-4C humanoid robot showed off her stormtrooper-like silver and black frame and bowed to a fashion-savvy audience at the start of the annual Japan Fashion Week in Tokyo -- but even her creators admit the mechanical model needs more work.&lt;/p&gt;

&lt;p&gt;The HRP-4C has battery-powered motors in her body and face, allowing her to imitate the expressions, gait and poses of a supermodel --- up to a point.&lt;/p&gt;

&lt;p&gt;&quot;Our robot can't move elegantly like the real models that are here today,&quot; Shuji Kajita, director of humanoid robot engineering at the National Institute of Advanced Industrial Science and Technology (AIST), told Reuters. &quot;It'll take another 20 to 30 years of research to make that happen.&quot;&lt;/p&gt;

&lt;p&gt;The 158 cm (5 ft 2 inch) high-tech model weighed in at 43 kg (95 lb), slimmed down from earlier versions just in time for her catwalk debut at one of Japan's biggest fashion events.&lt;/p&gt;

&lt;p&gt;AIST designers say the eyes, face and hair of the robot, which cost about $2 million to develop, are based on Japanese &quot;anime&quot; cartoon characters.&lt;/p&gt;

&lt;p&gt;Japan, home to almost half of the world's 800,000 industrial robots, expects the industry to expand to $10 billion in the future including models that can care for its fast-growing elderly population.&lt;/p&gt;

&lt;p&gt;(Writing by Michael Caronna and Linda Sieg; Editing by Rodney Joyce)&lt;/p&gt;</media:text>
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<title>China, U.S. agree on form of new dialogue</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M16520090323</link>
<pubDate>Mon, 23 Mar 2009 03:31:24 -0600</pubDate>
<description><![CDATA[BEIJING (Reuters) - China and the United States have agreed in principle on the form of a new mechanism to replace the semi-annual, cabinet-level Strategic Economic Dialogue, a senior official said on Monday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;BEIJING (Reuters) - China and the United States have agreed in principle on the form of a new mechanism to replace the semi-annual, cabinet-level Strategic Economic Dialogue, a senior official said on Monday.&lt;/p&gt;

&lt;p&gt;Vice Foreign Minister He Yafei told a news conference that Presidents Hu Jintao and Barack Obama were likely to announce what shape the dialogue would take when they meet in the margins of the G20 summit in London on April 2.&lt;/p&gt;

&lt;p&gt;(Reporting by Zhou Xin; Writing by Alan Wheatley, Editing by Jacqueline Wong)&lt;/p&gt;</media:text>
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<title>Global recession stalls skyscraper construction</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M08Z20090323</link>
<pubDate>Mon, 23 Mar 2009 03:21:06 -0600</pubDate>
<description><![CDATA[CHICAGO (Reuters) - There is a gaping hole where one of the world's tallest buildings is supposed to go up.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Andrew Stern&lt;/p&gt;

&lt;p&gt;CHICAGO (Reuters) - There is a gaping hole where one of the world's tallest buildings is supposed to go up.&lt;/p&gt;

&lt;p&gt;The planned 150-story Chicago Spire would be 2,000 feet tall if it gets built atop its completed foundation, ranking the tower the tallest in the Western Hemisphere and the sixth-tallest among the world's planned skyscrapers.&lt;/p&gt;

&lt;p&gt;The Spire was supposed to be finished by 2012 and the Irish developer staged a global marketing campaign. Buyers snapped up a third of its 1,194 luxury condominiums priced between $750,000 and $40 million. Ty Warner, creator of the Beanie Baby toys, opted for the top-priced penthouse.&lt;/p&gt;

&lt;p&gt;But after digging a 76-foot-deep hole and sinking caissons, construction on the twisting Spire -- inspired, its famed architect Santiago Calatrava said, by swirling smoke from a Native American campfire -- was stalled in January by the credit crisis that is stifling construction worldwide.&lt;/p&gt;

&lt;p&gt;Chicago has long been a showcase for tall towers since the steel-framed skyscraper was invented, its history full of developers whose ambitions sometimes crashed on the rocks of economic slowdowns, said John Norquist, president of non-profit group The Congress for the New Urbanism.&lt;/p&gt;

&lt;p&gt;For people living in the hundreds of new condominiums near the planned Spire, the unbuilt site &quot;starts to look like a blight,&quot; Norquist said.&lt;/p&gt;

&lt;p&gt;&quot;When everybody's feeling buoyant and they all think they're going to be billionaires overnight, that's when these 'biggest' plans come about. If you get them going before the bust hits, they get built right away. Otherwise you've got to wait and sometimes they don't get built at all,&quot; he said.&lt;/p&gt;

&lt;p&gt;Globally, work has been halted on 142, or 11 percent, of 1,324 skyscraper projects, including 29 of 301 U.S. projects, according to Emporis GmbH, a German company that tracks development. Work is stalled on the five tallest buildings on five continents, including the Spire -- Emporis refers to these landmark buildings as &quot;Babel&quot; projects.&lt;/p&gt;

&lt;p&gt;Work was stopped on the kilometer-tall (.6 mile) Nakheel Tower in Dubai, one of scores of construction projects idled in the former Gulf Arab boom town. A January HSBC report said $75 billion worth of projects in the United Arab Emirates were suspended or canceled. Contractors complain of not being paid.&lt;/p&gt;

&lt;p&gt;Other tall towers on hold are Moscow's Russia Tower and the Gran Torre Costanera office building in Santiago, Chile.&lt;/p&gt;

&lt;p&gt;MASSIVE JOB LOSSES&lt;/p&gt;

&lt;p&gt;The U.S. economic downturn has probably been felt most acutely in the construction industry. Some 2 million American construction workers are unemployed and the industry's 21.4 percent jobless rate is the highest of any sector.&lt;/p&gt;

&lt;p&gt;&quot;Every month we see massive job loss in the construction industry and every month it gets worse ... The construction industry is in a near depression,&quot; said Terry O'Sullivan, head of the Laborers' International Union of North America.&lt;/p&gt;

&lt;p&gt;The recently passed U.S. economic stimulus bill was expected to funnel $150 billion into building and repairing infrastructure, which the union said would employ 700,000 workers, for a while. The stimulus funding is viewed as only a downpayment on the $2.2 trillion engineers say is needed to rebuild the nation's infrastructure. Fewer workers are needed to perform maintenance than build from scratch, laborers say.&lt;/p&gt;

&lt;p&gt;&quot;If there's no buildings going up, what do you do?&quot; said James Connolly, a Laborers' union manager. &quot;Prepare yourself because it's going to get worse before it gets better.&quot;&lt;/p&gt;

&lt;p&gt;Construction workers are accustomed to boom-and-bust cycles but this downturn appears deeper and longer. The impact of lost wages of $35 to $40 an hour ripples through the economy.&lt;/p&gt;

&lt;p&gt;&quot;People out of work, people lose their homes, people lose their hospitalization, people lose all their benefits,&quot; said Tom Villanova, president of the Chicago and Cook County Building Trades, which covers 100,000 construction workers.&lt;/p&gt;

&lt;p&gt;&quot;It's as bad as I've ever seen it, and I've been around for 30 years,&quot; he said.&lt;/p&gt;

&lt;p&gt;Dublin-based Shelbourne Development Group has so far failed to get financing for the $1 billion Chicago Spire. Now, construction unions are negotiating to invest their pension funds to kickstart the project. The Spire would provide 1 million paydays for ironworkers, carpenters and others.&lt;/p&gt;

&lt;p&gt;But construction loans are hard to come by. Delinquency rates in Chicago on such loans have risen for 10 consecutive quarters to 15 percent in the fourth quarter of 2008.&lt;/p&gt;

&lt;p&gt;Many projects never got off the ground, while other developers have scaled back or suspended work altogether. The residential market has a glut of unsold and foreclosed homes -- at least 7,000 in the Chicago area alone, Villanova said.&lt;/p&gt;

&lt;p&gt;In downtown Chicago, canceled contracts on condominiums in the latest quarter outnumbered meager sales, which were off sharply from nearly 3,800 sales in all of 2007, according to Appraisal Research Counselors, a real estate firm. Prospective buyers surrendered downpayments of $10,000 or more, scared off by falling prices and the bleak job market.&lt;/p&gt;

&lt;p&gt;&quot;I've been out of work since December,&quot; with few prospects, said sprinkler system installer Jeff Switalski, 40.&lt;/p&gt;

&lt;p&gt;He said the number of unionized installers in Chicago has tripled to around 1,500 since he started in 1995, when the city began a building boom.&lt;/p&gt;

&lt;p&gt;Locally, all eyes are on whether Chicago wins the 2016 Summer Olympics, which would be a huge construction project.&lt;/p&gt;

&lt;p&gt;&quot;Maybe if every town, every city, in the United States had an Olympics, that would be the only thing that would save us,&quot; Switalski said.&lt;/p&gt;

&lt;p&gt;(Editing by Doina Chiacu and Michael Conlon)&lt;/p&gt;</media:text>
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<title>NASA delays test of space station urine recycler</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52E09120090323</link>
<pubDate>Mon, 23 Mar 2009 03:09:49 -0600</pubDate>
<description><![CDATA[HOUSTON (Reuters) - NASA delayed tests of the International Space Station's urine recycler on Sunday after problems developed with centrifuge-like device and revamped plans for Monday's spacewalk to deal with an improperly installed cargo platform attachment.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Irene Klotz&lt;/p&gt;

&lt;p&gt;HOUSTON (Reuters) - NASA delayed tests of the International Space Station's urine recycler on Sunday after problems developed with centrifuge-like device and revamped plans for Monday's spacewalk to deal with an improperly installed cargo platform attachment.&lt;/p&gt;

&lt;p&gt;Flight directors also repositioned the station and the visiting space shuttle Discovery to avoid a piece of space junk, which was expected to come too close during Monday's spacewalk, the last of three during Discovery's mission.&lt;/p&gt;

&lt;p&gt;The primary goal of Discovery's flight was to deliver and install the station's last set of solar panel wings, which was accomplished on Thursday. The shuttle blasted off from the Kennedy Space Center on March 15 for a 13-day mission.&lt;/p&gt;

&lt;p&gt;With the shuttle fleet due to be retired next year, NASA is counting on the Discovery astronauts to also complete several maintenance tasks that will ease the burden on future crews.&lt;/p&gt;

&lt;p&gt;The station, a project of 16 nations, has been under construction for more than 10 years.&lt;/p&gt;

&lt;p&gt;During the mission's second spacewalk, astronauts Steven Swanson and Joseph Acaba loosened connections on batteries that will be replaced during the next shuttle mission in June and installed a GPS navigation antenna needed to guide Japan's new unmanned cargo ship into its docking port.&lt;/p&gt;

&lt;p&gt;But the spacewalkers ran into problems installing a mount for a cargo platform. A locking pin was installed upside-down and may be blocking the mechanism from rotating into its proper position.&lt;/p&gt;

&lt;p&gt;By applying more force -- with pry bars and other tools if necessary -- astronauts should be able to free the mechanism, said lead space station flight director Kwatsi Alibaruho.&lt;/p&gt;

&lt;p&gt;&quot;We thought initially that the incorrect installation of the pin was the reason we were not able to rotate the (mechanism) down to its proper configuration. We now believe that (it is) just much, much stiffer than expected,&quot; he said.&lt;/p&gt;

&lt;p&gt;A BUSY WORKLOAD&lt;/p&gt;

&lt;p&gt;Monday's spacewalk schedule was already tight due to the cancellation of a planned fourth outing. NASA shaved a day off the mission and canceled the last spacewalk when Discovery launched five days late due to a hydrogen fuel leak.&lt;/p&gt;

&lt;p&gt;The shuttle needs to depart the station by Wednesday to avoid a schedule conflict with a Russian Soyuz capsule carrying the station's next crew.&lt;/p&gt;

&lt;p&gt;In addition to fixing the cargo carrier attachment, astronauts Acaba and Richard Arnold are expected to reposition one of the station's rail carts and rewire a circuit breaker so a failure of one of the station's gyroscopes does not take two devices out of operation. They also are scheduled to lubricate part of the station's robot arm.&lt;/p&gt;

&lt;p&gt;Sunday afternoon, NASA repositioned the shuttle-station complex so it would encounter more friction from atmospheric particles and slow down by about 0.1 feet per second -- enough to change its orbit so a piece of debris from a Chinese satellite launch in 1999 would pass harmlessly by during Monday's spacewalk.&lt;/p&gt;

&lt;p&gt;Orbital debris is a growing concern in space, with last month's crash of a U.S. commercial communications spacecraft with a defunct Russian satellite, as well as the 2007 destruction of a Chinese satellite by the Chinese military as part of a weapons test.&lt;/p&gt;

&lt;p&gt;At speeds exceeding 17,500 mph, shards as small as a fleck of paint have enough energy to damage or destroy spacecraft.&lt;/p&gt;

&lt;p&gt;Also Sunday, engineers were trying to figure out why a water purification system that recycles urine and condensate into drinking water was not working properly.&lt;/p&gt;

&lt;p&gt;The Discovery crew delivered a new distiller for the device that was successfully tested without liquids Saturday. Problems developed during the first test run Sunday using urine.&lt;/p&gt;

&lt;p&gt;NASA wants to have the urine recycler working before expanding the station's live-aboard crew from three to six members in May.&lt;/p&gt;

&lt;p&gt;The shuttle is due back at the Kennedy Space Center on Saturday.&lt;/p&gt;

&lt;p&gt;(Editing by Jane Sutton and Todd Eastham)&lt;/p&gt;</media:text>
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<title>Israel's Netanyahu pursues partnership with Labor</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M0A920090323</link>
<pubDate>Mon, 23 Mar 2009 03:09:20 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - Israel's Benjamin Netanyahu opened coalition talks with the center-left Labor Party on Monday, seeking an alternative to a right-wing government that could lead to friction with Washington over Middle East peace.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Jeffrey Heller&lt;/p&gt;

&lt;p&gt;JERUSALEM (Reuters) - Israel's Benjamin Netanyahu opened coalition talks with the center-left Labor Party on Monday, seeking an alternative to a right-wing government that could lead to friction with Washington over Middle East peace.&lt;/p&gt;

&lt;p&gt;Negotiators from Netanyahu's hawkish Likud party met their Labor counterparts only hours after the prime minister-designate enlisted the ultra-Orthodox Jewish Shas party as a coalition partner.&lt;/p&gt;

&lt;p&gt;Labor is led by Defense Minister Ehud Barak, who faces stiff opposition within his party to an agreement with Likud.&lt;/p&gt;

&lt;p&gt;The partnership with Shas, following a deal earlier this month with the Yisrael Beitenu party led by ultranationalist Avigdor Lieberman, moved Netanyahu a step closer toward establishing a narrow, right-wing government.&lt;/p&gt;

&lt;p&gt;Such a coalition could put Netanyahu on a collision course with U.S. President Barack Obama, who has pledged to move swiftly toward a land-for-peace deal between Israel and the Palestinians.&lt;/p&gt;

&lt;p&gt;International concern has also been raised over Netanyahu's promise to appoint Lieberman foreign minister. Lieberman has proposed transferring land where many of Israel's 1.5 million Arab citizens live to a future Palestinian state in return for Jewish settlements in the occupied West Bank.&lt;/p&gt;

&lt;p&gt;Netanyahu, still short of a ruling majority in the 120-member parliament, wants to shift the focus of currently stalled negotiations with the Palestinians from territorial to economic issues.&lt;/p&gt;

&lt;p&gt;Barak said he would ask his party's executive on Tuesday for a mandate to join a Likud-led administration.&lt;/p&gt;

&lt;p&gt;&quot;There is still a long way to go,&quot; Labor negotiator Ofer Eini said after a morning session of talks with Likud officials. The negotiations, which he said focused on economic matters, were due to resume after nightfall.&lt;/p&gt;

&lt;p&gt;Moshe Yaalon, a hardline Likud legislator slated by Netanyahu to become Defense minister, said Barak could have the post if Labor signed up.&lt;/p&gt;

&lt;p&gt;&quot;For the good of the country, the Labor Party should join the government,&quot; Yaalon, a former armed forces chief, told Israel Radio.&lt;/p&gt;

&lt;p&gt;UNITY&lt;/p&gt;

&lt;p&gt;Netanyahu has said repeatedly since last month's ballot that he prefers a &quot;unity&quot; government. But he has failed so far to woo the centrist Kadima party, which leads the outgoing government, into a wide coalition.&lt;/p&gt;

&lt;p&gt;Kadima's leader, Foreign Minister Tzipi Livni, has demanded Netanyahu commit to the establishment of a Palestinian state.&lt;/p&gt;

&lt;p&gt;&quot;Now we have 53 lawmakers tied into coalition agreements headed by Benjamin Netanyahu and in the coming days we will work to broaden the parliamentary base for support for his government,&quot; said Likud legislator Gideon Saar.&lt;/p&gt;

&lt;p&gt;Netanyahu faces an April 3 deadline to complete the formation of a government after being given the task last month by President Shimon Peres.&lt;/p&gt;

&lt;p&gt;But Barak's rivals in Labor said joining the government would sound the death knell for the party, once the dominant force in Israeli politics and now, with 13 seats, the fourth-largest party in parliament.&lt;/p&gt;

&lt;p&gt;In last month's election, Likud won 27 seats, Kadima polled 28, Yisrael Beitenu took 15 and Shas captured 11.&lt;/p&gt;</media:text>
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<title>Israeli troops broke medical ethics: rights group</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M0M020090323</link>
<pubDate>Mon, 23 Mar 2009 03:09:15 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - An Israeli human rights group said on Monday the military violated medical ethics codes during its Gaza offensive in December and January.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Ori Lewis&lt;/p&gt;

&lt;p&gt;JERUSALEM (Reuters) - An Israeli human rights group said on Monday the military violated medical ethics codes during its Gaza offensive in December and January.&lt;/p&gt;

&lt;p&gt;Physicians for Human Rights-Israel (PHR) described alleged incidents which &quot;reveal that not only did the (military) not evacuate besieged and wounded families, it also prevented Palestinian (medical) teams from reaching the wounded.&quot;&lt;/p&gt;

&lt;p&gt;PHR's report followed accusations by other human rights groups and Palestinians that Israel's actions during the 22-day offensive in the Palestinian coastal enclave, controlled by the Islamist Hamas group, warranted war crimes investigations.&lt;/p&gt;

&lt;p&gt;The Israeli military said the High Court had dismissed a petition PHR lodged on January 19, a day after the offensive ended, and that the allegations were still being investigated.&lt;/p&gt;

&lt;p&gt;&quot;At the conclusion of the fighting, the claims were investigated by the (military) in a thorough manner, as were many other issues, in the framework of an expert investigation,&quot; the military said in a statement.&lt;/p&gt;

&lt;p&gt;&quot;The findings ... have not yet been concluded. When they have been finalized, (they) will be presented to the public.&quot;&lt;/p&gt;

&lt;p&gt;PHR quoted figures issued by the World Health Organisation which showed 16 Palestinian medical personnel were killed by Israeli fire during the offensive and that 25 were wounded while performing their duties.&lt;/p&gt;

&lt;p&gt;It said Israeli forces attacked 34 medical care facilities, including eight hospitals.&lt;/p&gt;

&lt;p&gt;PHR described incidents in which it alleged that Israeli forces &quot;did not allow the evacuation of injured civilians who were besieged for days at a time and left the civilians without food or water for considerable periods.&quot;&lt;/p&gt;

&lt;p&gt;&quot;DANGEROUS TREND&quot;&lt;/p&gt;

&lt;p&gt;In its conclusion, PHR said &quot;on the basis of earlier reports published by PHR-Israel, a dangerous and retrograde trend can be identified of an increasing disregard for the obligation to protect medical personnel during (Israeli) operations.&quot;&lt;/p&gt;

&lt;p&gt;The Israeli military said its forces were instructed to &quot;act with the utmost caution in order not to cause harm to medical vehicles and medical facilities.&quot;&lt;/p&gt;

&lt;p&gt;It said Hamas fighters had &quot;methodically made use of medical vehicles, facilities and uniforms in order to conceal and camouflage terrorist activity, and in general used ambulances to carry terror activists and weapons.&quot;&lt;/p&gt;

&lt;p&gt;Last week, Gaza war veterans gave accounts in the Israeli media of the killing of civilians and alleged that there was deep contempt for Palestinians among the ranks.&lt;/p&gt;

&lt;p&gt;Defence Minister Ehud Barak responded to those accusations by repeating Israel's description of its forces as the most moral in the world. The military said its judge advocate-general had ordered an investigation of the alleged incidents.&lt;/p&gt;

&lt;p&gt;The Palestinian Centre for Human Rights has put the Palestinian death toll during the offensive at 1,434 -- 960 civilians, 235 fighters and 239 police. Israeli officials have disputed the figures. Thirteen Israelis were killed.&lt;/p&gt;</media:text>
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<title>Yemen court hands death sentence in Israel spy case</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1B120090323</link>
<pubDate>Mon, 23 Mar 2009 03:09:15 -0600</pubDate>
<description><![CDATA[SANAA (Reuters) - A Yemeni court sentenced an Islamist to death and handed down jail sentences against two others on Monday after convicting them of seeking to work for Israeli intelligence services.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;SANAA (Reuters) - A Yemeni court sentenced an Islamist to death and handed down jail sentences against two others on Monday after convicting them of seeking to work for Israeli intelligence services.&lt;/p&gt;

&lt;p&gt;Many Arab countries, including Yemen, regard Israel as an enemy for occupying Arab land.&lt;/p&gt;

&lt;p&gt;&quot;This is an unfair ruling,&quot; shouted Bassam al-Haidari when judge Mohsen Elwan sentenced him to death. Elwan ruled that Ali al-Mahfal be imprisoned for five years and Ammar al-Raimi for three years.&lt;/p&gt;

&lt;p&gt;The three were charged with emailing the office of Israeli Prime Minister Ehud Olmert and offering to work for the intelligence service of the Jewish state.&lt;/p&gt;

&lt;p&gt;&quot;The court has found that the evidence is reliable and all the charges in the prosecution report are correct,&quot; Elwan said.&lt;/p&gt;

&lt;p&gt;The three men, who deny the charges and say they were fabricated by an officer they had a dispute with, said they will appeal against the ruling.&lt;/p&gt;

&lt;p&gt;&quot;I seek God's help against you,&quot; Raimi told the judge.&lt;/p&gt;

&lt;p&gt;The men, arrested last year, were convicted of demanding money from the embassies of Saudi Arabia and the United Arab Emirates.&lt;/p&gt;

&lt;p&gt;The were accused in January of claiming, in the name of a group calling itself Islamic Jihad, an attack on the U.S. embassy that killed 19 people in September.&lt;/p&gt;

&lt;p&gt;The twin suicide car bombings on the U.S. embassy, later claimed by al Qaeda in Yemen, were the biggest militant operation in the poor Arab state since the attacks on the French tanker Limburg in 2002 and the U.S. warship Cole in 2000.&lt;/p&gt;

&lt;p&gt;The government joined the U.S.-led war against terrorism following the September 11 attacks in 2001. It has jailed scores of militants in connection with bombings of Western targets and clashes with the authorities, but is still viewed in the West as a haven for Islamist militants.&lt;/p&gt;

&lt;p&gt;(Reporting by Mohammed Sudam; Writing by Inal Ersan; Editing by Charles Dick)&lt;/p&gt;</media:text>
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<title>FACTBOX: Five facts about Benjamin Netanyahu</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M0DH20090323</link>
<pubDate>Mon, 23 Mar 2009 03:09:15 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - Benjamin Netanyahu came closer to forming a coalition government Monday after recruiting the ultra-Orthodox Shas party.]]></description>
<guid isPermaLink="false" >USTRE52M0DH20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;JERUSALEM (Reuters) - Benjamin Netanyahu came closer to forming a coalition government Monday after recruiting the ultra-Orthodox Shas party.&lt;/p&gt;

&lt;p&gt;Here are some key facts about Netanyahu:&lt;/p&gt;

&lt;p&gt;* Netanyahu was born in the Israeli coastal city of Tel Aviv on October 21, 1949, and grew up in Jerusalem. One of three sons, Netanyahu's father, Benzion, is a renowned Jewish historian and supporter of the late hawkish Zionist ideologue Zeev Jabotinsky. Netanyahu, married three times, has three children, an adult daughter with a former wife, and two sons with his current spouse, Sarah. They live in Jerusalem.&lt;/p&gt;

&lt;p&gt;* Known by a boyhood nickname, Bibi, Netanyahu is the most fluent English speaker of Israel's current crop of politicians, having gone to high school in the United States where his father worked as a researcher and university lecturer. Netanyahu is also a graduate of Massachusetts Institute of Technology, where he also earned a masters degree in business management.&lt;/p&gt;

&lt;p&gt;* In 1967, Netanyahu joined the Israeli army and served in an elite commando unit, taking part in secret missions and a 1972 rescue of hostages on a hijacked Sabena airliner, an operation that was led by current Labor party leader, Defense Minister Ehud Barak. He fought in a 1973 war and attained the rank of captain before his discharge.&lt;/p&gt;

&lt;p&gt;* Netanyahu entered politics after his brother, Yonatan, was killed while leading the 1976 raid to rescue hijacked Israeli hostages from Entebbe, Uganda. His first high-profile political assignment was Israeli ambassador to the United Nations in 1984. He won a seat in parliament with the right-wing Likud party in 1988 and was also named deputy foreign minister.&lt;/p&gt;

&lt;p&gt;* Though voicing objections to withdrawing from occupied land for peace, Netanyahu, as prime minister between 1996-1999, pulled Israeli forces out of part of the West Bank town of Hebron under an interim peace accord with the Palestinians. An early election triggered by a further U.S.-brokered deal with Palestinians ended his term in 1999. As finance minister in 2003, Netanyahu implemented market reforms credited with stimulating economic growth despite a Palestinian uprising. He quit his cabinet post in 2005 in protest at Israel's withdrawal from the Gaza Strip.&lt;/p&gt;

&lt;p&gt;(Jerusalem newsroom)&lt;/p&gt;</media:text>
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<title>FACTBOX: Security developments in Pakistan, March 23</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1F520090323</link>
<pubDate>Mon, 23 Mar 2009 02:23:18 -0600</pubDate>
<description><![CDATA[(Reuters) - Following are security developments in Pakistan at 0730 GMT (3:30 a.m. EDT) on Monday.]]></description>
<guid isPermaLink="false" >USTRE52M1F520090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Following are security developments in Pakistan at 0730 GMT (3:30 a.m. EDT) on Monday.&lt;/p&gt;

&lt;p&gt;DERA ISMAIL KHAN - Gunmen on a motorbike shot dead a member of a banned Sunni militant group and wounded a 12-year-old boy bystander in Dera Ismail Khan, a northwestern town plagued by sectarian violence between Sunni and Shi'ite Muslims, police said.&lt;/p&gt;

&lt;p&gt;MIRANSHAH - Militants shot dead a man after accusing him of spying for U.S. forces battling al Qaeda and Taliban in Afghanistan, and dumped his body near a town in North Waziristan, a militant-plagued region on the Afghan border, security officials said.&lt;/p&gt;

&lt;p&gt;PESHAWAR - Troops destroyed two important bases of a militant organization on Sunday in the town of Bara in the Khyber region, government officials said. Militants have been attacking trucks carrying supplies for U.S. and other foreign forces in landlocked Afghanistan on a route that passes through the Kyber Pass.&lt;/p&gt;

&lt;p&gt;(Compiled by Islamabad bureau; Editing by Robert Birsel and Jerry Norton)&lt;/p&gt;</media:text>
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<title>SCENARIOS: Pakistan's buds of optimism amid risks</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1E120090323</link>
<pubDate>Mon, 23 Mar 2009 02:20:37 -0600</pubDate>
<description><![CDATA[(Reuters) - President Asif Ali Zardari called for national reconciliation in a Pakistan Day message on Monday, as he sought to mend fences with the opposition after defusing a political crisis by restoring the country's top judge.]]></description>
<guid isPermaLink="false" >USTRE52M1E120090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - President Asif Ali Zardari called for national reconciliation in a Pakistan Day message on Monday, as he sought to mend fences with the opposition after defusing a political crisis by restoring the country's top judge.&lt;/p&gt;

&lt;p&gt;The reinstatement of Iftikhar Chaudhry as Supreme Court chief justice a week ago averted a looming violent street confrontation.&lt;/p&gt;

&lt;p&gt;But tension has lingered between Zardari's party and its main rival, the party of former prime minister and opposition leader Nawaz Sharif, in particular over control of Punjab, Pakistan's most populous and politically influential province.&lt;/p&gt;

&lt;p&gt;Pakistan's Western allies fear political upheaval distracts the nuclear-armed country from fighting spreading Islamist militancy and reviving its flagging economy.&lt;/p&gt;

&lt;p&gt;REASONS TO BE HOPEFUL&lt;/p&gt;

&lt;p&gt;-- Confrontation has given way to reconciliation, and Pakistan's two biggest mainstream political parties are at least communicating again, even if they can't be friends.&lt;/p&gt;

&lt;p&gt;-- A weakened Zardari has survived the crisis over the judge but could eventually be forced out if he lost the support of his party. As long as it happened within the constitution, it shouldn't pose the dangers mass agitation would.&lt;/p&gt;

&lt;p&gt;-- Central government rule of Punjab is likely to be ended soon and Sharif is expected to get back control of the province. The Supreme Court will review a bar on Sharif and his younger brother, Shahbaz, holding elected office, raising the prospect Shahbaz Sharif will be Punjab chief minister again.&lt;/p&gt;

&lt;p&gt;-- Nawaz Sharif, whose support base is conservative religious nationalists, lacks numbers in parliament to destabilize the coalition led by Zardari's Pakistan People's Party. The next general election is due in 2013.&lt;/p&gt;

&lt;p&gt;-- Sharif strengthened his standing by getting Chaudhry reinstated, but he cannot use street power too often. Army chief General Ashfaq Kayani and Pakistan's Western allies would frown on politicians working outside the parameters of parliamentary democracy without just cause.&lt;/p&gt;

&lt;p&gt;-- A constitutional package will be worked on that could remove some of the unpopular president's sweeping powers and strengthen the prime minister's role.&lt;/p&gt;

&lt;p&gt;-- Prime Minister Yousaf Raza Gilani is friendly with Sharif, who appreciated his efforts to break the deadlock over the judge, and this augurs well for his government.&lt;/p&gt;

&lt;p&gt;-- On an even bigger canvas, Pakistan's educated middle class, in the shape of the lawyers' movement, has for the first time prevailed over vested interests in the political arena. That is positive. Any leader who stands in the way of building stronger institutions or better governance in Pakistan should now realize he can be called to account.&lt;/p&gt;

&lt;p&gt;-- The Pakistani media played a big part. But some sections are very partisan, favoring Sharif.&lt;/p&gt;

&lt;p&gt;THE RISKS TO STABILITY&lt;/p&gt;

&lt;p&gt;-- There is no bigger risk than spreading Islamist militancy. It represents a serious threat to civilian-led democracy, and the experience of the Musharraf years should have taught people the military alone cannot provide a remedy. The September attack on Islamabad's Marriott hotel and this month's on the Sri Lankan cricket team in Lahore were measures of the growing danger.&lt;/p&gt;

&lt;p&gt;-- Meanwhile, the United States is considering expanding its covert war in Pakistan from the Waziristan region into Baluchistan province, the New York Times reported last week. A wider U.S. theater of operations could risk fuelling Pakistan's internal conflict.&lt;/p&gt;

&lt;p&gt;-- Some analysts also raise concerns about Sharif's party regaining power in Punjab because they believe he panders to Islamists and has taken a tolerant attitude about the presence of jihadi groups and their charity fronts in the province.&lt;/p&gt;

&lt;p&gt;THE RESTORED JUDGE&lt;/p&gt;

&lt;p&gt;-- Chaudhry could once again complicate politics. He is a maverick who trod on many toes in the establishment during his earlier tenure and could do so again. He could be too politicized and could feel he owes Sharif.&lt;/p&gt;

&lt;p&gt;-- But it is likely Zardari obtained assurances to protect himself from judicial activism before agreeing to reinstate Chaudhry.&lt;/p&gt;

&lt;p&gt;-- Zardari could create problems for himself if the government was vulnerable to accusations of large-scale corruption and misgovernance. A hostile media could whip up a campaign that might end up in court.&lt;/p&gt;

&lt;p&gt;-- Whether Zardari also obtained assurances to protect Musharraf needs to be clarified. Musharraf would ideally need parliament to grant him some kind of indemnity for actions that violated the constitution.&lt;/p&gt;

&lt;p&gt;-- The army and the United States would prefer the old general be left to enjoy his retirement and Pakistan to move on.&lt;/p&gt;

&lt;p&gt;(Writing by Simon Cameron-Moore; Editing by Jerry Norton)&lt;/p&gt;</media:text>
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<title>FACTBOX: Security developments in Afghanistan, March 23</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M1AK20090323</link>
<pubDate>Mon, 23 Mar 2009 01:57:42 -0600</pubDate>
<description><![CDATA[(Reuters) - Following are security developments in Afghanistan by 0930 GMT (5:30 a.m. EDT) on Monday:]]></description>
<guid isPermaLink="false" >USTRE52M1AK20090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Following are security developments in Afghanistan by 0930 GMT (5:30 a.m. EDT) on Monday:&lt;/p&gt;

&lt;p&gt;KANDAHAR - Eight policemen were killed in an attack by Taliban insurgents on a police patrol in Spin Boldak district, about 470 km (290 miles) southwest of Kabul, a senior police officer told Reuters.&lt;/p&gt;

&lt;p&gt;KHOST - Afghan and U.S.-led forces detained three suspected militants in Sabari district, about 120 km (85 miles) southeast of Kabul, the U.S. military said in a statement. The suspects were detained during a raid to disrupt a bomb-making network.&lt;/p&gt;

&lt;p&gt;HELMAND - Six insurgents, including their commander, were killed while planting a roadside bomb in Garmsir district, about 605 km (375 miles) southwest of Kabul, on Sunday, the Interior Ministry said in a statement.&lt;/p&gt;

&lt;p&gt;SOUTHERN AFGHANISTAN - Two soldiers from the NATO-led force were killed in a province of south Afghanistan on Sunday, the alliance said in a statement, without giving further details.&lt;/p&gt;

&lt;p&gt;HELMAND - NATO-led troops killed an insurgent leader along with nine of his associates near Kajaki district, about 475 km (295 miles) southwest of Kabul, on Saturday, the alliance said.&lt;/p&gt;

&lt;p&gt;KANDAHAR - A civilian contractor was killed and six others were wounded after a rocket attack on Kandahar Airfield, about 450 km (270 miles) southwest of Kabul, on Friday, NATO-led forces said in a statement. It said it was the first death caused by a rocket attack at the airfield. Five insurgents were captured immediately after the incident.&lt;/p&gt;

&lt;p&gt;(Compiled by Golnar Motevalli and Hamid Shalizi; Editing by Paul Tait)&lt;/p&gt;</media:text>
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<title>Analysts see need for U.S. talks with Taliban</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M19C20090323</link>
<pubDate>Mon, 23 Mar 2009 01:46:18 -0600</pubDate>
<description><![CDATA[LONDON (Reuters) - If the United States is to succeed in Afghanistan, it is going to have to engage in dialogue with Taliban-led insurgents, according to many analysts with close knowledge of the region.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Myra MacDonald - Analysis&lt;/p&gt;

&lt;p&gt;LONDON (Reuters) - If the United States is to succeed in Afghanistan, it is going to have to engage in dialogue with Taliban-led insurgents, according to many analysts with close knowledge of the region.&lt;/p&gt;

&lt;p&gt;But in doing so, it will have to juggle the competing interests of India and Pakistan, both of which have a stake in any eventual political settlement in Afghanistan.&lt;/p&gt;

&lt;p&gt;&quot;This is not going to work out smoothly. Each step there are going to be complications,&quot; said C. Raja Mohan, Professor of South Asia Studies at Singapore's Nanyang Technology University.&lt;/p&gt;

&lt;p&gt;The United States, which is due to announce a new strategy for Afghanistan and Pakistan shortly, has suggested it could reach out to insurgents to see if some can be peeled away from a hardline Islamist core linked to al Qaeda.&lt;/p&gt;

&lt;p&gt;Vice President Joe Biden said this month that he believed only five percent of the Taliban were &quot;incorrigible.&quot;&lt;/p&gt;

&lt;p&gt;&quot;I do think it is worth engaging and determining whether or not there are those who are willing to participate in a secure and stable Afghanistan,&quot; he told a news conference in Brussels.&lt;/p&gt;

&lt;p&gt;But India has been wary of any political accommodation with the Taliban, which were close allies of Pakistan before they were toppled by the U.S.-led invasion of Afghanistan in 2001.&lt;/p&gt;

&lt;p&gt;It long accused Pakistan of using links to Afghan Islamists to fuel an insurgency in Indian Kashmir, and of seeking to dominate Afghanistan to provide &quot;strategic depth&quot; -- effectively giving its army space to operate in the event of war with India.&lt;/p&gt;

&lt;p&gt;Pakistan in turn has resented growing Indian influence in Afghanistan which it sees as an attempt by its much larger neighbor to put pressure on it from both east and west.&lt;/p&gt;

&lt;p&gt;ADDRESSING PASHTUN GRIEVANCES&lt;/p&gt;

&lt;p&gt;Indian analysts say India has no reason to oppose outright any political settlement with Afghan insurgents, who are dominated by the Pashtun ethnic group whose influence was undercut by the fall of the Pashtun Taliban in 2001.&lt;/p&gt;

&lt;p&gt;&quot;Engaging the Taliban is necessary,&quot; said retired Indian diplomat M. K. Bhadrakumar.&lt;/p&gt;

&lt;p&gt;He noted Indians had good relations with the Pashtuns dating back to pre-independence days but blamed Pakistan for having encouraged Islamist fervor in Afghanistan to build a common bond of religion across both countries.&lt;/p&gt;

&lt;p&gt;&quot;Addressing Pashtun grievances is indeed the key to any settlement,&quot; said Raja Mohan. &quot;The real problem is different: all Taliban are Pashtun; not all Pashtun are Taliban. Finding the space here is the real challenge.&quot;&lt;/p&gt;

&lt;p&gt;&quot;It is by no means clear if the U.S. and Pakistani interests can ever coincide,&quot; he added. &quot;Pakistan needs to maintain an Islamic hold on the Pashtuns and the U.S. needs to separate the Pashtun conservatism from the extremist Islamic ideology, which is the same objective as that of India.&quot;&lt;/p&gt;

&lt;p&gt;Pakistani analysts, however, say Indian suspicions that Pakistan -- and particularly the powerful Pakistan Army -- continues to support Islamist militancy to maintain its influence on Afghanistan are outdated.&lt;/p&gt;

&lt;p&gt;Indeed they say Pakistan Army chief General Ashfaq Kayani has redefined strategic depth as coming not from Afghanistan, but from a stronger economy and stable Pakistan.&lt;/p&gt;

&lt;p&gt;&quot;They are probably going to stay away from the religion thing,&quot; said Shuja Nawaz, Director of the South Asia Center at The Atlantic Council of the United States. &quot;Kayani knows how unreliable these religious types are.&quot;&lt;/p&gt;

&lt;p&gt;&quot;He really wants Pakistan to succeed in international terms, economically, first, then socially,&quot; said defense analyst Brian Cloughley.&lt;/p&gt;

&lt;p&gt;KASHMIR PEACE&lt;/p&gt;

&lt;p&gt;Whatever differences between India and Pakistan, both would gain enormously if Washington could reach a political settlement in Afghanistan that isolates hardline Islamists.&lt;/p&gt;

&lt;p&gt;Engaging in talks with the Afghan Taliban would have a sobering impact on the Pakistani Taliban since both appeal to each other on the basis of their common Pashtun identity, said Asif Durrani, Pakistan's Deputy High Commissioner in London.&lt;/p&gt;

&lt;p&gt;&quot;What we are seeing on the Pakistani side is a reaction to what is happening in Afghanistan,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;The moment the (Afghan) war ends, Pakistan is on the road to stability,&quot; said Bhadrakumar, adding this in turn would galvanize peace efforts over Kashmir.&lt;/p&gt;

&lt;p&gt;According to Raja Mohan, a framework peace deal was nearly agreed in 2007 and then put on the back burner because of political instability in Pakistan.&lt;/p&gt;

&lt;p&gt;But achieving a political settlement that would spread from Afghanistan into Pakistan, Kashmir and India would require Washington to pull off a spectacular diplomatic high-wire act.&lt;/p&gt;

&lt;p&gt;It already has to contend with al Qaeda, which has every interest in sabotaging its plans. It has to decide how to adjust its military strategy, which is driving many Afghans into the arms of the Taliban because of high civilian casualties.&lt;/p&gt;

&lt;p&gt;And with India facing a national election, the government is unlikely to make any concessions to Pakistan now, especially after last November's attack on Mumbai.&lt;/p&gt;

&lt;p&gt;Washington would also have to work out the mechanics of how to hold talks and with whom.&lt;/p&gt;

&lt;p&gt;U.N. special envoy to Afghanistan Kai Eide told France's Le Monde newspaper it was important to avoid a fragmented approach to the insurgency but to talk to all the Taliban movement.&lt;/p&gt;

&lt;p&gt;The U.S. review of strategy in Afghanistan and Pakistan will have to contend with all that and more. &quot;They are trying to come up with big ideas,&quot; said Nawaz. &quot;There is no wishful thinking.&quot;&lt;/p&gt;

&lt;p&gt;(Editing by Janet Lawrence)&lt;/p&gt;</media:text>
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<title>Mumbai attack trial begins, gunman says from Pakistan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M13X20090323</link>
<pubDate>Mon, 23 Mar 2009 01:34:44 -0600</pubDate>
<description><![CDATA[MUMBAI (Reuters) - Sometimes breaking into laughter, the man accused of being the lone surviving gunman in last year's Mumbai attacks told an Indian court on Monday that he was from Pakistan and wanted legal assistance, officials said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Rina Chandran&lt;/p&gt;

&lt;p&gt;MUMBAI (Reuters) - Sometimes breaking into laughter, the man accused of being the lone surviving gunman in last year's Mumbai attacks told an Indian court on Monday that he was from Pakistan and wanted legal assistance, officials said.&lt;/p&gt;

&lt;p&gt;The trial of Mohammed Ajmal Kasab, whom police formally charged in February with &quot;waging war&quot; against India, began on Monday via a video link with his prison in Mumbai. Gunmen killed 166 people in a three-day rampage in the city last November.&lt;/p&gt;

&lt;p&gt;A bearded Kasab smiled and looked composed when the judge asked him whether he had received a copy of the charges and if he wanted an attorney, a government lawyer said.&lt;/p&gt;

&lt;p&gt;&quot;I don't have a lawyer,&quot; special public prosecutor Ujjwal Nikam quoted him as telling the judge.&lt;/p&gt;

&lt;p&gt;&quot;He was smiling throughout and said that he was from Faridkot in Pakistan,&quot; Nikam said. &quot;He started laughing when the judge asked him if he understood everything in the charge sheet.&quot;&lt;/p&gt;

&lt;p&gt;The attacks on India's financial hub sparked renewed tensions between nuclear-armed rivals India and Pakistan. New Delhi says state agencies in Pakistan were involved in the attacks, while Islamabad denies this and has asked for more evidence.&lt;/p&gt;

&lt;p&gt;Police say Kasab was one of 10 gunmen who arrived in Mumbai by sea and rampaged through landmarks including five star hotels, the main train station and a Jewish center.&lt;/p&gt;

&lt;p&gt;Police say Kasab, who faces a maximum sentence of death by hanging, was injured in a shootout. Pictures of the young man, wearing sneakers and carrying an automatic rifle and backpack, were published around the world after the attacks.&lt;/p&gt;

&lt;p&gt;Kasab has since been held in jail, with Indian lawyers refusing to defend him.&lt;/p&gt;

&lt;p&gt;LOOKING FOR A LAWYER&lt;/p&gt;

&lt;p&gt;&quot;He had earlier requested legal assistance from Pakistan. We need some more time to appoint a lawyer to defend him,&quot; Nikam told the judge. The case will be heard again on March 30.&lt;/p&gt;

&lt;p&gt;Authorities have cited security fears as behind the decision to not produce Kasab in person for the hearings till a special bomb-proof concrete cage inside a Mumbai jail is ready.&lt;/p&gt;

&lt;p&gt;Police and jail officers have said Kasab, who on Monday was wearing a black T-shirt and blue jeans, has been cooperating.&lt;/p&gt;

&lt;p&gt;&quot;He has confessed that he is from Pakistan and has also asked the court for legal assistance,&quot; Rakesh Maria, the chief investigator in the case, told Reuters.&lt;/p&gt;

&lt;p&gt;Two Indians -- Fahim Ansari and Sabauddin -- accused of being members of the Pakistan-based Lashkar-e-Taiba militant group and of scouting Mumbai landmarks before the attacks also appeared in court by video conference.&lt;/p&gt;

&lt;p&gt;&quot;They have both requested for lawyers and the court will take a decision,&quot; Nikam added.&lt;/p&gt;

&lt;p&gt;India has charged 38 people, including Kasab and the two Indians, in connection with the case. Most of the accused reside in Pakistan, the Indian government says.&lt;/p&gt;

&lt;p&gt;The charge sheet, which runs to some 11,000 pages, contains accounts of more than 2,200 witnesses as well as other evidence provided by the U.S. Federal Bureau of Investigation, which helped Indian police with the probe.&lt;/p&gt;

&lt;p&gt;Those charged as key planners of the attacks included Hafiz Mohammad Saeed, founder of the militant Islamist Lashkar-e-Taiba group India says was behind the attacks, and other senior Lashkar members Zaki-ur-Rehman Lakhvi and Zarar Shah.&lt;/p&gt;

&lt;p&gt;(Additional reporting and writing by Bappa Majumdar in New Delhi; Editing by Alistair Scrutton and Jerry Norton)&lt;/p&gt;</media:text>
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<title>Zardari woos opposition to end Pakistan crisis</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0HZ20090323</link>
<pubDate>Mon, 23 Mar 2009 01:33:23 -0600</pubDate>
<description><![CDATA[ISLAMABAD (Reuters) - President Asif Ali Zardari called for national reconciliation in a Pakistan Day message on Monday, as he sought to mend fences with the opposition after defusing a political crisis by restoring the country's top judge.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Augustine Anthony&lt;/p&gt;

&lt;p&gt;ISLAMABAD (Reuters) - President Asif Ali Zardari called for national reconciliation in a Pakistan Day message on Monday, as he sought to mend fences with the opposition after defusing a political crisis by restoring the country's top judge.&lt;/p&gt;

&lt;p&gt;The reinstatement of Iftikhar Chaudhry as Supreme Court chief justice a week ago averted a looming violent street confrontation.&lt;/p&gt;

&lt;p&gt;But tension has lingered between Zardari's party and its main rival, the party of former prime minister and opposition leader Nawaz Sharif, in particular over control of Punjab, Pakistan's most populous and most politically influential province.&lt;/p&gt;

&lt;p&gt;Pakistan's Western allies fear political upheaval distracts the nuclear-armed country, a key U.S. ally, from fighting spreading Islamist militancy and reviving its flagging economy.&lt;/p&gt;

&lt;p&gt;&quot;On this day I urge everyone to work in the spirit of tolerance, mutual accommodation and respect for dissent and invite every one to participate in the national effort for ... reconciliation and healing the wounds,&quot; Zardari said.&lt;/p&gt;

&lt;p&gt;Zardari, whose party heads a civilian government that came to power a year ago after eight years of military rule, said the rule of law and constitutionalism had at times been &quot;trampled by dictators,&quot; a cycle that he said had to come to an end.&lt;/p&gt;

&lt;p&gt;The restoration of Chaudhry and other judges had raised the expectation of the people that the cycle was ending, he said.&lt;/p&gt;

&lt;p&gt;On Sunday, Zardari, the widower of assassinated former prime minister Benazir Bhutto, delivered a message of reconciliation to Sharif through Prime Minister Yousaf Raza Gilani.&lt;/p&gt;

&lt;p&gt;Sharif welcomed the call, saying reconciliation was the &quot;need of the time.&quot;&lt;/p&gt;

&lt;p&gt;DIVISIVE ISSUES&lt;/p&gt;

&lt;p&gt;Despite that, potentially divisive issues remain including the question of Sharif's eligibility for elected office and who controls Punjab province.&lt;/p&gt;

&lt;p&gt;The Supreme Court ruled on February 25 that Sharif and his politician brother, Shahbaz, were ineligible to hold elected office. The ruling nullified a by-election victory by Shahbaz Sharif and disqualified him from being chief minister of Punjab.&lt;/p&gt;

&lt;p&gt;The Sharif party's government was thrown out of power in the province and Zardari imposed central rule there for two months.&lt;/p&gt;

&lt;p&gt;The Sharifs said Zardari was behind the ruling, which they said was based on old convictions they say were politically motivated, and they threw their wholehearted support behind a protest campaign by lawyers seeking Chaudhry's restoration.&lt;/p&gt;

&lt;p&gt;In a step toward dispelling mistrust, the government asked the Supreme Court on Saturday to suspend the ruling while an appeal against it is heard.&lt;/p&gt;

&lt;p&gt;The government also says it wants to lift central rule, known as governor's rule, in Punjab as soon as possible. The Sharifs' party is expected again to lead a coalition government there.&lt;/p&gt;

&lt;p&gt;Pakistan's main stock market index got a boost last Monday when the political crisis was defused and investors were subsequently encouraged by hope for lower interest rates, dealers said.&lt;/p&gt;

&lt;p&gt;Financial markets were closed on Monday for the Pakistan Day holiday.&lt;/p&gt;

&lt;p&gt;(Editing by Robert Birsel and Paul Tait)&lt;/p&gt;</media:text>
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<title>INSTANT VIEW: U.S announces details of toxic asset purchase plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M0N720090323</link>
<pubDate>Sun, 22 Mar 2009 22:56:56 -0600</pubDate>
<description><![CDATA[SINGAPORE (Reuters) - The United States released long-awaited details on Monday of plans for a public-private effort to rid U.S. banks of toxic assets at the heart of the worst global financial crisis in generations.]]></description>
<guid isPermaLink="false" >USTRE52M0N720090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;SINGAPORE (Reuters) - The United States released long-awaited details on Monday of plans for a public-private effort to rid U.S. banks of toxic assets at the heart of the worst global financial crisis in generations.&lt;/p&gt;

&lt;p&gt;The plan, which would allow banks to lend more freely again, is key to reviving the recession-hit economy at a time when unemployment and jobless claims have risen to multi-year highs.&lt;/p&gt;

&lt;p&gt;But a solution to the complex problem has been elusive and critics fear a flawed plan could trigger further losses for banks or put more taxpayers' money at risk.&lt;/p&gt;

&lt;p&gt;Asian stocks and U.S. stock futures rose as more news on the bad debt plan emerged on Monday, while U.S. Treasuries slipped.&lt;/p&gt;

&lt;p&gt;**************************************************************&lt;/p&gt;

&lt;p&gt;KEY POINTS:&lt;/p&gt;

&lt;p&gt;* U.S. Treasury to invest $75 billion to $100 billion from its existing $700 billion bailout fund to partner with private investors and buy troubled assets from banks, according to an Obama administration official&lt;/p&gt;

&lt;p&gt;* Treasury also aims to buy $500 billion to up to $1 trillion in &quot;legacy&quot; assets from banks; U.S. government to offer generous financing terms for private investors&lt;/p&gt;

&lt;p&gt;ANALYSTS' COMMENTS&lt;/p&gt;

&lt;p&gt;HONG SUN-YOUNG, SAMSUNG ECONOMIC RESEARCH INSTITUTE, SEOUL&lt;/p&gt;

&lt;p&gt;&quot;This is a positive development especially in a sense that this plan is aimed at helping the financial markets restore their function as well as cleansing the toxic assets.&lt;/p&gt;

&lt;p&gt;&quot;There remain questions about how much the financial markets can play their role and about the moral hazard issues regarding the pricing of toxic assets, but at this time, the most important thing is that (the U.S. authorities) do something actively.&quot;&lt;/p&gt;

&lt;p&gt;MAMORU YAMAZAKI, CHIEF ECONOMIST, RBS SECURITIES, TOKYO&lt;/p&gt;

&lt;p&gt;&quot;If the U.S. authorities actually succeed in buying up to $1 trillion of 'toxic assets', it would be considered a significant step by the financial markets. However, the markets will be disappointed if the programs did not move forward due to problems regarding how the assets' value is measured.&lt;/p&gt;

&lt;p&gt;&quot;The markets will also be watching to see what sort of time-span the authorities plan to buy the assets. The markets will not react positively if it turns out that it takes much more time than they expected.&quot;&lt;/p&gt;

&lt;p&gt;ANANTHA NAGESWARAN, CIO, JULIUS BAER, HONG KONG&lt;/p&gt;

&lt;p&gt;&quot;This approach - recapitalizing banks - does not think the solutions through to their logical conclusions.&lt;/p&gt;

&lt;p&gt;&quot;The key to the success of all these initiatives is the ability and willingness of corporations and U.S. households to borrow. Households, especially, are still over-leveraged. The solution to that is to save more out of current income and use the savings to repay debt. But, lower interest rates incentives borrowings and not savings. If they do not choose to fall for the bait of lower interest rates, what would the Federal Reserve and US Treasury do next?&quot;&lt;/p&gt;

&lt;p&gt;WINSON FONG, MANAGING DTR, SG ASSET MANAGEMENT, HONG KONG&lt;/p&gt;

&lt;p&gt;&quot;Doing this is probably better than not doing anything at all but it is very difficult for the U.S. Treasury to come up with a concrete plan to deal with the situation. It's an ever changing, never ending story with some major political hiccups thrown in. So what works for today may change by next week, and if you look down the road long enough there are many other problems lurking.&quot;&lt;/p&gt;

&lt;p&gt;CHENG CHENG-MOUNT, ECONOMIST, CITIGROUP, TAIPEI&lt;/p&gt;

&lt;p&gt;&quot;This will boost financial markets but markets will still have some doubts about the effectiveness of the program.&lt;/p&gt;

&lt;p&gt;&quot;I guess the program is obviously trying to ease concern in financial markets and this is the right direction to go and Asian currencies will rise for a day or two on hopes for a return of investor confidence. An improvement in U.S. financial conditions would help U.S. investor and consumer confidence, but we need more details of the plan and its impact on U.S. fundamentals.&quot;&lt;/p&gt;

&lt;p&gt;JUN KATO, DEPUTY GM TREASURY BUSINESS GROUP, SHINKIN&lt;/p&gt;

&lt;p&gt;CENTRAL BANK, TOKYO&lt;/p&gt;

&lt;p&gt;&quot;The scheme is necessary for the market and the size of the reported toxic assets to be bought seems large. Some market players may see this as an opportunity to sell stocks on the facts, but the market looks set to gain some stability for a while, especially after a relay of global efforts to combat the economic and financial crisis after the G20 meeting.&lt;/p&gt;

&lt;p&gt;&quot;The currency implication from that is a weaker dollar and further rises in yen crosses. The euro could rise as high as $1.40, given a recent premise that the dollar had been bought at the height of risk aversion.&quot;&lt;/p&gt;

&lt;p&gt;ANDREW ORCHARD, EQUITIES ANALYST, ROYAL BANK OF SCOTLAND&lt;/p&gt;

&lt;p&gt;&quot;This is more positive for sentiment rather than a fundamental change. Most investors are still going to take a wait-and-see attitude, but clearly on the back of further clarification this is something that will be positive for the market.&lt;/p&gt;

&lt;p&gt;&quot;The one thing in the immediate term that could hurt stocks is of course company results. If they disappoint or if guidance is weak, then we will definitely see the end of this rally.&quot;&lt;/p&gt;

&lt;p&gt;AKIRA TAKEI, GENERAL MGR, INTERNATIONAL FIXED INCOME&lt;/p&gt;

&lt;p&gt;INVESTMENT, MIZUHO ASSET MANAGEMENT&lt;/p&gt;

&lt;p&gt;&quot;The government has to do this, but so far, every step the Treasury and the Federal Reserve have taken has been artificial. They are pumping a lot of money into the system, but that is not improving confidence among private bankers. It is difficult to see banks increasing lending now. They may also be reluctant to participate in the Treasury's latest scheme, because of fear of government influence and backlash over bonus payments.&quot;&lt;/p&gt;

&lt;p&gt;ANNETTE BEACHER, SENIOR STRATEGIST, TD SECURITIES, SYDNEY&lt;/p&gt;

&lt;p&gt;&quot;Given the extent of the crisis in the U.S. banking sector, this is an essential step to restoring confidence, if carried out correctly. Banks need to free up capital to restore the credit cycle, and this is a key step.&quot;&lt;/p&gt;

&lt;p&gt;SEAN CALLOW, CURRENCY STRATEGIST, WESTPAC, SYDNEY&lt;/p&gt;

&lt;p&gt;&quot;The rally in S&amp;amp;P 500 futures and Asian equities suggests considerable optimism, though this surprises me a little because it looks to be about what was expected and faces the huge hurdle of coaxing private investors.&lt;/p&gt;

&lt;p&gt;&quot;Investors will be very wary of committing capital at the same time as Congress is vilifying Wall Street on bonuses etc and adding one restriction after another on any corporation that accepts any government loans.&lt;/p&gt;

&lt;p&gt;&quot;If markets have bought the rumor then the risk is they sell the fact of the Geithner plan, which would mean equity sell off and higher USD/Asia.&quot;&lt;/p&gt;

&lt;p&gt;LINUS YIP, STRATEGIST, FIRST SHANGHAI SECURITIES, HONG KONG&lt;/p&gt;

&lt;p&gt;&quot;This is good. But the real challenge would be in pricing these toxic assets. If the government and banks can reach an agreement on that, then there is a pretty good chance the credit market will return to normal. But of course, there will be other things worry about like the enormous debt U.S. has racked up.&quot;&lt;/p&gt;

&lt;p&gt;DAVID MANN, SR FX STRATEGIST, STANDARD CHARTERED, HONG KONG&lt;/p&gt;

&lt;p&gt;&quot;It's really a difficult tightrope to walk in terms of what the plan is going to be able to achieve. They're talking about the Treasury investing up to $100 billion, that is not significant. But the plan for legacy assets could be taken as a relative positive for the market. At least there is more detail about what the plan is going to be. It will take a while for the market to really digest how acceptable it is and how much the banks have gained or lost out on this plan. Even from what we're seeing here, it's not clear whether the taxpayers or banks have lost out.&lt;/p&gt;

&lt;p&gt;&quot;This can help risk appetite along with the potential out there for a delay to mark-to-market accounting, as is the surprisingly aggressive Fed moves from last week. Overall, just having more details to go through is an encouraging sign.&quot;&lt;/p&gt;

&lt;p&gt;MARKET REACTION: STOCKS: U.S. stock futures rose more than 1 percent as details of the toxic asset plan slowly emerged; for prices click for S&amp;amp;P 500 futures, for Dow futures. Asia stocks also rose on hopes the plan would stabilize the U.S. financial system BONDS: U.S. Treasuries slipped in Asia as stocks rose on the bad debt plan, reducing safe-haven bids for government debt. The benchmark 10-year note was down 13/32 in price to yield 2.683 percent, up 5 basis points from Friday. DOLLAR: The dollar did not move directly on news of the plan after falling sharply last week; see for more details&lt;/p&gt;

&lt;p&gt;BACKGROUND&lt;/p&gt;

&lt;p&gt;- Banks have been hammered by losses incurred by mortgage-related debt that has turned sour amid a fall in house prices, sparking a credit crisis that has pushed the global economy into its worst slowdown since the Great Depression.&lt;/p&gt;

&lt;p&gt;- Treasury Secretary Timothy Geithner is due to unveil more details of bank bailout plan at 8:45 a.m. (1245 GMT) on Monday.&lt;/p&gt;

&lt;p&gt;- President Barack Obama's steps to reverse a deep recession and restructure the ailing U.S. financial system have global implications as he prepares to meet leaders of major developed and developing nations at a Group of 20 summit in early April.&lt;/p&gt;

&lt;p&gt;- The Bush administration tried without success last year to set up a mechanism to get bad assets off banks' balance sheets.&lt;/p&gt;</media:text>
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<title>BlackRock to join U.S. Treasury toxic asset plan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M0NR20090323</link>
<pubDate>Sun, 22 Mar 2009 22:36:43 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - BlackRock Inc, the largest U.S. publicly traded asset manager, said it would take part in the U.S. Treasury's plan to cleanse banks of toxic assets in an investment management role.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - BlackRock Inc, the largest U.S. publicly traded asset manager, said it would take part in the U.S. Treasury's plan to cleanse banks of toxic assets in an investment management role.&lt;/p&gt;

&lt;p&gt;&quot;It is definitely our intention to get involved as one of the investment managers in this program,&quot; BlackRock Managing Director Curtis Arledge said in a statement.&lt;/p&gt;

&lt;p&gt;Obama administration officials released some details of the Treasury's plan, which aims to attract private investors to funds that also would get government money and financing to buy up to $1 trillion in distressed loans and other assets from banks.&lt;/p&gt;

&lt;p&gt;It will hire up to five investment managers to run parts of the program.&lt;/p&gt;

&lt;p&gt;(Reporting by Jennifer Ablan; Editing by Jan Dahinten)&lt;/p&gt;</media:text>
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<title>U.S. wants Afghanistan exit strategy</title>
<link>http://www.reuters.com/article/topNews/idUSSP46785620090323</link>
<pubDate>Sun, 22 Mar 2009 21:44:51 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - The United States said on Monday it had found an encouraging symmetry of views with its NATO and EU allies after outlining a strategy review meant to end a stalemate in Afghanistan.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By David Brunnstrom&lt;/p&gt;

&lt;p&gt;BRUSSELS (Reuters) - The United States said on Monday it had found an encouraging symmetry of views with its NATO and EU allies after outlining a strategy review meant to end a stalemate in Afghanistan.&lt;/p&gt;

&lt;p&gt;U.S. Special Representative for Afghanistan and Pakistan Richard Holbrooke discussed the review with Washington's NATO and EU allies after President Barack Obama said it would contain an exit strategy and greater emphasis on economic development.&lt;/p&gt;

&lt;p&gt;Holbrooke stressed the need for a regional approach to the Afghan problem, including Pakistan, and of stepping up both civilian and military efforts, a NATO spokesman said.&lt;/p&gt;

&lt;p&gt;He also underlined the importance of plans for a significant boost in size of the Afghan police force.&lt;/p&gt;

&lt;p&gt;&quot;I found a very encouraging symmetry of views between our NATO allies and other troop-contributing countries and the United States,&quot; Holbrooke told reporters after the meeting in Brussels.&lt;/p&gt;

&lt;p&gt;&quot;They put a heavy emphasis on increasing the police, the size of the police in Afghanistan,&quot; he said.&lt;/p&gt;

&lt;p&gt;With violence rising ahead of elections in August, Obama has already committed an extra 17,000 troops to Afghanistan, but on Sunday he said military force alone would not end the war.&lt;/p&gt;

&lt;p&gt;&quot;What we can't do is think that just a military approach in Afghanistan is going to be able to solve our problems,&quot; he said in an interview with CBS TV's &quot;60 minutes.&quot;&lt;/p&gt;

&lt;p&gt;&quot;So what we're looking for is a comprehensive strategy. And there's got to be an exit strategy ... There's got to be a sense that this is not perpetual drift.&quot;&lt;/p&gt;

&lt;p&gt;Holbrooke, who met NATO Secretary-General Jaap de Hoop Scheffer on Monday before briefing the 26 alliance ambassadors, said the review would be completed &quot;soon.&quot;&lt;/p&gt;

&lt;p&gt;He told the BBC in an interview that the priority would be dealing with the situation in tribal regions along the border with Pakistan, which have been a haven for militants.&lt;/p&gt;

&lt;p&gt;&quot;That is the main message we want to get across. You cannot separate Afghanistan and Pakistan,&quot; he said.&lt;/p&gt;

&lt;p&gt;MORE TROOPS, MORE RESOURCES, MORE ATTENTION&lt;/p&gt;

&lt;p&gt;He also criticized the previous Bush administration for neglecting Afghanistan and vowed &quot;more troops, more resources, more high-level attention.&quot;&lt;/p&gt;

&lt;p&gt;&quot;I can't promise you a timetable or guaranteed success in an area this difficult,&quot; he said. &quot;But I can guarantee you that this administration is going to do everything it can to succeed in one of the most difficult situations in the world.&quot;&lt;/p&gt;

&lt;p&gt;Some analysts say Washington is going to have to engage in dialogue with some Taliban elements, a point Obama and Vice President Joe Biden have conceded this month. However, in Afghanistan, other experts have dismissed that idea.&lt;/p&gt;

&lt;p&gt;And Taliban-led insurgents such as the Haqqani network, which has admitted carrying out some of the most deadly attacks on civilians and foreign troops in Afghanistan, dismiss the dialogue proposals as a trick to weaken and divide militants.&lt;/p&gt;

&lt;p&gt;In an interview with Reuters on Monday Sirajuddin Haqqani said no Taliban would engage with Washington or Kabul.&lt;/p&gt;

&lt;p&gt;The deployment of 17,000 additional U.S. troops, on top of the 38,000 already serving there, is meant to help subdue a resurgent Taliban and stabilize the country.&lt;/p&gt;

&lt;p&gt;Other countries have about 30,000 soldiers helping the Kabul government under NATO and U.S. command, but have mostly been reluctant to commit more forces.&lt;/p&gt;

&lt;p&gt;NATO-led forces deployed in southern and eastern Afghan provinces bordering Pakistan are overstretched and many of the new U.S. troops will be sent to these areas to reinforce efforts to stem insurgent activity on the porous Afghan-Pakistan border.&lt;/p&gt;

&lt;p&gt;On Monday, eight policemen were killed by Taliban insurgents while they were on patrol in southern Kandahar province in a district just inside the Afghan border with Pakistan, the Interior Ministry said.&lt;/p&gt;

&lt;p&gt;BIG CHALLENGE&lt;/p&gt;

&lt;p&gt;Obama said the &quot;destabilizing border&quot; between Afghanistan and Pakistan was a big military challenge. Al Qaeda and Taliban leaders are believed to be hiding out there using the remote region as a staging ground for attacks in Afghanistan.&lt;/p&gt;

&lt;p&gt;&quot;This is going to be a tough nut to crack. But it is not acceptable for us to simply sit back and let safe havens of terrorists plan and plot,&quot; he said.&lt;/p&gt;

&lt;p&gt;U.S. air strikes on militants on the Pakistan side of the border have raised tensions with Islamabad, and the deaths of hundreds of Afghan civilians caught in the conflict have turned ordinary people against foreign forces and the government of President Hamid Karzai in Kabul.&lt;/p&gt;

&lt;p&gt;The issue has flared again, with Afghan officials launching an investigation into a new U.S. military operation in Kunduz which killed five Afghans that police officials said were civilians, but U.S. forces insisted were militants.&lt;/p&gt;

&lt;p&gt;(Reporting by David Brunnstrom; Kamaal Sadaat, Jon Hemming and Golnar Motevalli in KABUL; Elyas Wahdat in KHOST; Matt Spetalnick in WASHINGTON; and Myra MacDonald in LONDON; Writing by David Fox and Jerry Norton; Editing by Myra MacDonald)&lt;/p&gt;</media:text>
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<title>U.S. to put &quot;exit strategy&quot; in Afghanistan policy</title>
<link>http://www.reuters.com/article/topNews/idUSSP46785620090323</link>
<pubDate>Sun, 22 Mar 2009 21:44:51 -0600</pubDate>
<description><![CDATA[KABUL (Reuters) - The new U.S. policy for Afghanistan to be unveiled soon will contain an exit strategy and include greater emphasis on economic development, President Barack Obama said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;KABUL (Reuters) - The new U.S. policy for Afghanistan to be unveiled soon will contain an exit strategy and include greater emphasis on economic development, President Barack Obama said.&lt;/p&gt;

&lt;p&gt;With violence rising ahead of elections in August, Obama has already committed an extra 17,000 troops to Afghanistan, but on Sunday he said military force alone would not end the war.&lt;/p&gt;

&lt;p&gt;&quot;What we can't do is think that just a military approach in Afghanistan is going to be able to solve our problems,&quot; he said in an interview with CBS's &quot;60 minutes.&quot;&lt;/p&gt;

&lt;p&gt;&quot;So what we're looking for is a comprehensive strategy. And there's got to be an exit strategy ... There's got to be a sense that this is not perpetual drift.&quot;&lt;/p&gt;

&lt;p&gt;The interview gave a taste of what to expect from a comprehensive policy review on Afghanistan and Pakistan expected soon, and which officials have already said would include more coordination with other stakeholders than practiced by the Bush administration.&lt;/p&gt;

&lt;p&gt;Analysts say Washington is going to have to engage in dialogue with Taliban elements, a point Obama and Vice President Joe Biden have conceded recently, but in doing so will also have to juggle the competing interests of India and Pakistan.&lt;/p&gt;

&lt;p&gt;&quot;COMPLICATIONS&quot;&lt;/p&gt;

&lt;p&gt;&quot;This is not going to work out smoothly,&quot; said C. Raja Mohan, Professor of South Asia Studies at Singapore's Nanyang Technology University.&lt;/p&gt;

&lt;p&gt;&quot;Each step there are going to be complications.&quot;&lt;/p&gt;

&lt;p&gt;India has been wary of any political accommodation with the Taliban, which were close allies of Pakistan before they were toppled by the U.S.-led invasion of Afghanistan in 2001.&lt;/p&gt;

&lt;p&gt;Pakistan in turn has resented growing Indian influence in Afghanistan which it sees as an attempt by its much larger neighbor to put pressure on it from both east and west.&lt;/p&gt;

&lt;p&gt;U.N. special envoy to Afghanistan Kai Eide told France's Le Monde newspaper it was important to avoid a fragmented approach to the insurgency but to talk to all the Taliban movement.&lt;/p&gt;

&lt;p&gt;The U.S. review of strategy in Afghanistan and Pakistan will have to contend with all that and more. &quot;They are trying to come up with big ideas,&quot; said Shuja Nawaz, director of the South Asia Center at The Atlantic Council of the United States. &quot;There is no wishful thinking.&quot;&lt;/p&gt;

&lt;p&gt;Obama has admitted the United States and its allies are not winning in Afghanistan, and ordered the deployment of 17,000 additional troops on top of the 38,000 already serving there to help subdue a resurgent Taliban and stabilize the country.&lt;/p&gt;

&lt;p&gt;Other countries have about 30,000 soldiers helping the Kabul government under NATO and U.S. command, but have mostly been reluctant to commit more forces.&lt;/p&gt;

&lt;p&gt;Obama said the &quot;destabilizing border&quot; between Afghanistan and Pakistan was a big military challenge. Al Qaeda and Taliban leaders are believed to be hiding out there using the remote region as a staging ground for attacks in Afghanistan.&lt;/p&gt;

&lt;p&gt;&quot;This is going to be a tough nut to crack. But it is not acceptable for us to simply sit back and let safe havens of terrorists plan and plot,&quot; he said.&lt;/p&gt;

&lt;p&gt;TENSIONS&lt;/p&gt;

&lt;p&gt;U.S. air strikes on militants on the Pakistan side of the border have raised tensions with Islamabad, and the deaths of hundreds of Afghan civilians caught up in the conflict have turned ordinary people against foreign forces and the government of President Hamid Karzai.&lt;/p&gt;

&lt;p&gt;The issue flared again on Sunday when the Afghan government said it was deeply concerned about a new U.S. military operation in Kunduz which killed five Afghans that police officials said were civilians, but U.S. forces insisted were militants.&lt;/p&gt;

&lt;p&gt;The Interior Ministry described the dead as &quot;our citizens&quot; and said in a statement it would send a high profile delegation to the northern province to investigate the raid.&lt;/p&gt;

&lt;p&gt;Afghan President Hamid Karzai, who faces elections in August, has said civilian casualties are the biggest cause of tension between him and his Western backers.&lt;/p&gt;

&lt;p&gt;More than 2,100 civilians were killed in Afghanistan last year, 40 percent more than in 2007, the United Nations said. Around a quarter were killed by international forces, it said.&lt;/p&gt;

&lt;p&gt;(Writing by David Fox; Reporting by Wahdat, Kamaal Sadaat and Golnar Motevalli in Kabul, Myra MacDonald in London and Matt Spetalnick in Washington; Editing by John Chalmers)&lt;/p&gt;</media:text>
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<title>U.S. woos investors to buy toxic assets</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52M02S20090323</link>
<pubDate>Sun, 22 Mar 2009 19:04:56 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The Obama administration on Monday offered a raft of incentives for private investors to help rid banks of up to $1 trillion in toxic assets that plunged the world economy into crisis.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By David Lawder and Glenn Somerville&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The Obama administration on Monday offered a raft of incentives for private investors to help rid banks of up to $1 trillion in toxic assets that plunged the world economy into crisis.&lt;/p&gt;

&lt;p&gt;U.S. stock prices shot up, led by bank shares, as Washington ended weeks of speculation about details of its attack on the heart of the credit crisis, offering generous government financing to underpin the public-private plan.&lt;/p&gt;

&lt;p&gt;The U.S. Treasury said it will launch the program with $75 billion to $100 billion from existing financial rescue funds aimed at thawing the market for mortgage-backed securities and other hard-to-sell assets.&lt;/p&gt;

&lt;p&gt;President Barack Obama said the plan was critical to a U.S. economic recovery, but added, &quot;We still have a long way to go and we have a lot of work to do.&quot;&lt;/p&gt;

&lt;p&gt;Major U.S. share indexes, which recently scraped 12-year lows, jumped about 7.0 percent on optimism over the plan. The Dow Jones industrial average closed up nearly 500 points.&lt;/p&gt;

&lt;p&gt;Public fury over big bonus paid to executives at bailout recipient American International Group has made some investors wary of partnering with the government. But some of the world's most powerful investors said the plan could work and indicated interest in participating.&lt;/p&gt;

&lt;p&gt;In an effort to spur participation, Treasury Secretary Timothy Geithner said private investors will not face executive pay restrictions.&lt;/p&gt;

&lt;p&gt;Analysts cautioned that success would depend on whether banks are prepared to sell assets cheaply or want to wait in the hope of getting a better price when the economy recovers.&lt;/p&gt;

&lt;p&gt;CRITICS SEE INVESTORS FAVORED OVER TAXPAYERS&lt;/p&gt;

&lt;p&gt;Nobel Prize-winning economist and New York Times columnist Paul Krugman slammed Geithner's plan.&lt;/p&gt;

&lt;p&gt;In his Monday column, Krugman said it was a rehash of a &quot;cash-for-trash&quot; proposal the Bush administration floated last fall, and that the incentives meant investors could profit if asset values increase but &quot;walk away&quot; if they fall.&lt;/p&gt;

&lt;p&gt;Some Republican lawmakers also expressed concern over the incentives offered by the government, which could end up providing more than 90 percent of the funds to buy the assets.&lt;/p&gt;

&lt;p&gt;&quot;The plan seems to offer little incentive for private investors to participate unless the subsidy is made so rich that it comes at the expense of the taxpayer,&quot; said Representative Eric Cantor of Virginia, a member of the House of Representatives Republican leadership.&lt;/p&gt;

&lt;p&gt;Geithner, who sent markets plunging on February 10 by releasing only a bare-bones sketch of the plan, said it was needed to get the private sector involved in cleaning up the banking mess.&lt;/p&gt;

&lt;p&gt;&quot;The great risk that we face now is that after a long period of irresponsibility and excessive risk-taking, that the system will not take enough risk now,&quot; he said.&lt;/p&gt;

&lt;p&gt;The plan is the latest step in a series of aggressive actions to restore credit flows and combat a virulent recession. Less than a week ago, the Fed ramped up its efforts, vowing to pump an additional $1.15 trillion into the economy.&lt;/p&gt;

&lt;p&gt;Geithner said investors will set the price for toxic assets through the degree of interest they show in buying them, sparing the government from having to make that decision.&lt;/p&gt;

&lt;p&gt;One aim is to restart markets for securities not currently trading and, in the process, tamp down investor fears that some form of bank nationalization might have to be considered.&lt;/p&gt;

&lt;p&gt;TAPPING OTHER FINANCE SOURCES&lt;/p&gt;

&lt;p&gt;The Treasury and private investors would combine their capital and turn to the Federal Deposit Insurance Corp, a U.S. banking regulator, or the Federal Reserve for loans.&lt;/p&gt;

&lt;p&gt;Under one part of the plan focused on sopping up bad loans, the Treasury will provide up to 80 percent of the initial capital and the FDIC would offer debt financing for up to six times of the combined public-private capital pool.&lt;/p&gt;

&lt;p&gt;A separate component, aimed at toxic securities, will have the Federal Reserve broaden its Term Asset-Backed Securities Loan Facility. That $200 billion program will be bumped up to $1 trillion and will begin accepting older mortgage-related and other securities as loan collateral.&lt;/p&gt;

&lt;p&gt;In addition, the Treasury will approve up to five investment managers and match their money one-for-one. It will then offer debt financing for 50 percent of the combined capital to buy securities banks want to unload.&lt;/p&gt;

&lt;p&gt;&quot;My hope would be that you'll see ... the first actual loans within the next 60 days, perhaps sooner than that,&quot; Lawrence Summers, head of the White House National Economic Council, told Public Broadcasting's &quot;NewsHour with Jim Lehrer.&quot;&lt;/p&gt;

&lt;p&gt;The plan aims to help set prices for poorly performing debt left over from the U.S. housing market bust, while involving the market to avoid the risk taxpayers will overpay.&lt;/p&gt;

&lt;p&gt;Geithner's future may partly ride on its success. He has faced harsh scrutiny over whether he could have stopped the AIG bonuses, and some lawmakers have called for his resignation.&lt;/p&gt;

&lt;p&gt;Two major U.S. money managers, BlackRock and Pimco, expressed interest in participating.&lt;/p&gt;

&lt;p&gt;&quot;From Pimco's perspective, we are intrigued by the potential double-digit returns as well as the opportunity to share them with not only clients but the American taxpayer,&quot; Bill Gross, Pimco's co-chief investment officer, told Reuters.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Jennifer Ablan; Editing by Leslie Adler)&lt;/p&gt;</media:text>
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<title>Geithner says need private-sector help: report</title>
<link>http://www.reuters.com/article/topNews/idUSWBT01090220090323</link>
<pubDate>Sun, 22 Mar 2009 18:37:58 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Sunday that help from the private sector was critical to get toxic assets off banks' balance sheets and help resolve a credit crisis.]]></description>
<guid isPermaLink="false" >USWBT01090220090323</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Sunday that help from the private sector was critical to get toxic assets off banks' balance sheets and help resolve a credit crisis.&lt;/p&gt;

&lt;p&gt;&quot;Our judgment is that the best way to get through this is if we can work with the markets,&quot; Geithner said in an interview with the Wall Street Journal. &quot;We don't want the government to assume all the risk. We want the private sector to work with us.&quot;&lt;/p&gt;

&lt;p&gt;Geithner is set to reveal details on Monday of a plan to set up public-private investment funds that could buy up to $1 trillion in troubled loans and securities at the heart of the financial crisis.&lt;/p&gt;

&lt;p&gt;The Journal said Treasury believes participants in the program shouldn't be subject to executive-pay rules imposed by Congress. The law authorizing a $700-billion bailout and a provision in a $787-billion stimulus package impose tough pay restrictions on firms that receive government funds, including limits on bonuses.&lt;/p&gt;

&lt;p&gt;(Reporting by Glenn Somerville)&lt;/p&gt;</media:text>
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<title>Plane nose-dived before Montana crash, 14 dead</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1PN20090323</link>
<pubDate>Sun, 22 Mar 2009 18:20:20 -0600</pubDate>
<description><![CDATA[BUTTE, Mon. (Reuters) - The plane crash that killed all seven children and seven adults on board began with a sudden nose dive just short of the airport in Butte, a federal official said on Monday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Emilie Ritter&lt;/p&gt;

&lt;p&gt;BUTTE, Mon. (Reuters) - The plane crash that killed all seven children and seven adults on board began with a sudden nose dive just short of the airport in Butte, a federal official said on Monday.&lt;/p&gt;

&lt;p&gt;National Transportation Safety Board Acting Chairman Mark Rosenker said his team is looking into the experience of the pilot and whether the 11-seat plane was overweight. The single-engine plane had no &quot;black box&quot; flight data recorder and the investigation could take months.&lt;/p&gt;

&lt;p&gt;The Pilatus PC-12 turboprop plane was carrying three fewer passengers than originally reported on Sunday and if infants were being carried on laps, the entire group could have fit on board.&lt;/p&gt;

&lt;p&gt;The plane made three stops in California before heading to Bozeman, Montana, for a ski vacation but officials did not give details about the passengers. Bozeman and Butte are towns of about 30,000 each in the mountainous western half of the state.&lt;/p&gt;

&lt;p&gt;The single pilot requested twice to divert to Butte from Bozeman, without giving a reason, and both times the Salt Lake City flight controller approved the change, Rosenker told a news conference.&lt;/p&gt;

&lt;p&gt;He said witnesses saw the plane flying at about 300 feet and take a 90-degree nose-dive before crashing in a cemetery just short of the airport. Photos showed a ball of flame at the crash site.&lt;/p&gt;

&lt;p&gt;(Reporting by Emilie Ritter, editing by Peter Henderson and Bill Trott)&lt;/p&gt;</media:text>
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<title>Montana plane crash kills 17, including children</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1PN20090322</link>
<pubDate>Sun, 22 Mar 2009 17:21:17 -0600</pubDate>
<description><![CDATA[LOS ANGELES (Reuters) - A single-engine private passenger plane crashed on approach to an airport in Butte, Montana, on Sunday, killing 17 people, officials for the Federal Aviation Administration said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;LOS ANGELES (Reuters) - A single-engine private passenger plane crashed on approach to an airport in Butte, Montana, on Sunday, killing 17 people, officials for the Federal Aviation Administration said.&lt;/p&gt;

&lt;p&gt;A reporter from the Montana Standard newspaper cited local emergency officials as saying the plane was carrying a group of young children on their way to a ski vacation in Bozeman, Montana.&lt;/p&gt;

&lt;p&gt;A photograph of the crash site broadcast on CNN showed a fireball blazing in a grove of trees near a cemetery close to the crash site.&lt;/p&gt;

&lt;p&gt;An FAA spokesman in Seattle, Mike Fergus, put the preliminary death toll from the crash at 17. A Los Angeles-based FAA official said the plane had taken off from Oroville, California and crashed on final approach at the airport in Butte.&lt;/p&gt;

&lt;p&gt;The Fergus told CNN the pilot had filed a flight plan showing a final destination of Bozeman but canceled that at some point and headed instead for Buttle. The plane crashed about 500 feet from the airport while attempting to land and burst into flames.&lt;/p&gt;

&lt;p&gt;Fergus also told CNN there were no known fatalities on the ground. He said preliminary reports indicate the dead included a number of children.&lt;/p&gt;

&lt;p&gt;(Editing by Chris Wilson)&lt;/p&gt;</media:text>
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<title>Obama: U.S. must have &quot;exit strategy&quot; in Afghanistan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1NW20090322</link>
<pubDate>Sun, 22 Mar 2009 17:05:42 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama insisted on Sunday that military force alone would not end the war in Afghanistan and suggested a U.S. "exit strategy" could be part of a new comprehensive policy he is expected to unveil soon.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama insisted on Sunday that military force alone would not end the war in Afghanistan and suggested a U.S. &quot;exit strategy&quot; could be part of a new comprehensive policy he is expected to unveil soon.&lt;/p&gt;

&lt;p&gt;Obama, in an interview on CBS's &quot;60 Minutes&quot; program, previewed in broad terms his administration's review of Afghanistan-Pakistan strategy based on recommendations from senior U.S. officials and consultations with allies.&lt;/p&gt;

&lt;p&gt;He made clear his new approach would call for a greater emphasis on economic development in Afghanistan, diplomacy with neighboring Pakistan and better coordination with international partners than under his predecessor George W. Bush.&lt;/p&gt;

&lt;p&gt;&quot;What we can't do is think that just a military approach in Afghanistan is going to be able to solve our problems,&quot; Obama said. &quot;So what we're looking for is a comprehensive strategy. And there's got to be an exit strategy ... There's got to be a sense that this is not perpetual drift.&quot;&lt;/p&gt;

&lt;p&gt;Undertaking his first major trip abroad since taking office on January 20, Obama meets NATO leaders at an April 3-4 summit in Strasbourg, France where Afghanistan troop levels will be high on the agenda.&lt;/p&gt;

&lt;p&gt;Obama is shifting the U.S. focus from the unpopular war in Iraq to the conflict in Afghanistan, where violence has increased to its highest level since U.S.-led forces toppled the Taliban in 2001.&lt;/p&gt;

&lt;p&gt;(Editing by Chris Wilson)&lt;/p&gt;</media:text>
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<title>Q+A-Can the war in Afghanistan be won?</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1O320090322</link>
<pubDate>Sun, 22 Mar 2009 17:03:13 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - With the Obama administration set to release a policy review on Afghanistan and Pakistan, views on the U.S.-led international campaign's prospects in that war range from dire to hopeful.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Paul Eckert, Asia Correspondent&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - With the Obama administration set to release a policy review on Afghanistan and Pakistan, views on the U.S.-led international campaign's prospects in that war range from dire to hopeful.&lt;/p&gt;

&lt;p&gt;Following are some questions and answers on the cases made by pessimists, those who call for setting the standard of success lower, and the rare optimists.&lt;/p&gt;

&lt;p&gt;WHAT DO THE PESSIMISTS SEE?&lt;/p&gt;

&lt;p&gt;Afghanistan's mountainous terrain, tribal population and history work against strong central government and against achieving Western goals. Add to this poor governance, corruption, a rampant drug trade and failure is certain.&lt;/p&gt;

&lt;p&gt;The United States, NATO, Afghanistan and Pakistan are not just stalemated, they are losing the war against the Taliban despite the militants' weakness, wrote Anthony Cordesman of the Center for Strategic and International Studies.&lt;/p&gt;

&lt;p&gt;Weak performance by the Kabul government and political strife in Pakistan are compounded by NATO and other international forces' failure to deploy enough troops. International aid efforts are run in a chaotic, wasteful fashion, subject to much local corruption.&lt;/p&gt;

&lt;p&gt;Pessimists point to statistics showing a sharp rise in violence -- civilian deaths jumping about 40 percent from 2007 to 2008 -- as well as rising U.S. troop deaths and spectacular terror attacks such as that on the Indian embassy in Kabul.&lt;/p&gt;

&lt;p&gt;Political wrangling, economic distress and ever more brazen militant attacks in Pakistan add to the concerns of those who question that key neighbor's will to fight militants who attack Afghanistan from havens on Pakistani soil.&lt;/p&gt;

&lt;p&gt;SHOULD SUCCESS BE REDEFINED BY LOWERING THE BAR?&lt;/p&gt;

&lt;p&gt;Proponents of trimming back U.S. goals argue that eliminating the Taliban is an unattainable goal and that the U.S. focus should shift to containing the threat and reducing the threat of attacks on the West from Afghan soil.&lt;/p&gt;

&lt;p&gt;This approach would draw down U.S. forces while building up the counter-insurgency capacity of the Afghan National Army, induce some Taliban to split with their hard-line leadership and enlist Afghanistan's neighbors, including Iran, in containing the Taliban and helping curb the inflow of funds.&lt;/p&gt;

&lt;p&gt;This argument, criticized as &quot;reductionist&quot; by top Afghan officials, holds that building democracy in Afghanistan is neither achievable nor a compelling U.S. interest. As long as the country is not a haven for jihadists, Washington could hold its nose and live with a Taliban-ruled Afghanistan.&lt;/p&gt;

&lt;p&gt;Pakistan, with its political turmoil, weak governance, ethnic divisions and nuclear weapons, is the proper U.S. focus because its loosely governed tribal regions are havens for al Qaeda and Taliban extremists.&lt;/p&gt;

&lt;p&gt;IS THERE ROOM FOR OPTIMISM?&lt;/p&gt;

&lt;p&gt;U.S. Senators John McCain and Joseph Lieberman argued in an op-ed that victory in Afghanistan can be achieved with more resources and broad set of security, governance and development policies. A minimalist focus on counter-terrorism would mean &quot;losing slowly at tremendous cost,&quot; they wrote in The Washington Post.&lt;/p&gt;

&lt;p&gt;A robust show of U.S. resolve would win over wavering segments of the populations of Afghanistan and Pakistan, where memories of abandonment by the Americans after the 1980s anti-Soviet war run deep. More popular support would pay off in better intelligence and shrink the havens militants enjoy.&lt;/p&gt;

&lt;p&gt;Winning in Afghanistan will require some of the same mix of military and political policies that helped stabilize Iraq -- attacking hard-core militants while negotiating or buying off the less committed.&lt;/p&gt;

&lt;p&gt;Comparisons of statistics on militant attacks in Afghanistan with those in Iraq during the 2006 peak of violence show them to be only a fraction of the Iraqi carnage. Kabul and vast parts of Afghanistan are relatively tranquil and Afghan militants are far less effective and well-organized fighters than those in Iraq were.&lt;/p&gt;

&lt;p&gt;The Obama administration's plan to add 17,000 U.S. troops to the 38,000 there now will help the war effort, as will a major boosting of intelligence and reconnaissance capabilities. Most of the extra resources will go to troubled southern Afghanistan.&lt;/p&gt;

&lt;p&gt;The burden of fighting can shift from international forces to the multiethnic Afghan National Army, which enjoys trust across the country. But that 80,000-strong force must be trebled with major funding from the United States and allies.&lt;/p&gt;

&lt;p&gt;(Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>FACTBOX: Key quotes from Obama's 60 Minutes interview</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1O420090322</link>
<pubDate>Sun, 22 Mar 2009 17:03:13 -0600</pubDate>
<description><![CDATA[(Reuters) - Following are some key quotes from President Barack Obama's interview on CBS's "60 Minutes "on Sunday:]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Following are some key quotes from President Barack Obama's interview on CBS's &quot;60 Minutes &quot;on Sunday:&lt;/p&gt;

&lt;p&gt;FINANCIAL CRISIS&lt;/p&gt;

&lt;p&gt;&quot;I think that systemic risks are still out there.&quot;&lt;/p&gt;

&lt;p&gt;&quot;If we did nothing you could still have some big problems. There are certain institutions that are so big that if they fail, they bring a lot of other financial institutions down with them.&quot;&lt;/p&gt;

&lt;p&gt;AIG BONUS TAX BILL&lt;/p&gt;

&lt;p&gt;&quot;Let's see if there are ways of doing this that are both legal, that are constitutional -- that uphold our basic principles of fairness, but don't hamper us from getting the banking system -- back on track.&quot;&lt;/p&gt;

&lt;p&gt;ECONOMY&lt;/p&gt;

&lt;p&gt;&quot;I don't think that we anticipated how steep the decline would be, particularly in employment.&quot;&lt;/p&gt;

&lt;p&gt;&quot;There's a potential silver ...lining, which may be that things are so accelerated now, the modern economy is so intertwined and wired that things happen really fast ... but things may recover faster than they have in the past.&quot;&lt;/p&gt;

&lt;p&gt;DOLLAR&lt;/p&gt;

&lt;p&gt;&quot;The dollar is still strong because people are still buying Treasury bills. They still think that's the safest investment out there.&quot;&lt;/p&gt;

&lt;p&gt;BUDGET DEFICIT&lt;/p&gt;

&lt;p&gt;&quot;If we don't get a handle on this, and also start looking at our long-term deficit projections, at a certain point people will stop buy those Treasury Bills.&quot;&lt;/p&gt;

&lt;p&gt;AFGHANISTAN&lt;/p&gt;

&lt;p&gt;&quot;We may need to bring a more regional -- diplomatic approach to bear. We may need to coordinate more effectively with our allies. But we can't lose sight of what our central mission is. The same mission that we had when we went in after 9-11.&quot;&lt;/p&gt;

&lt;p&gt;&quot;But what we can't do is think that just a military approach in Afghanistan is going to be able to solve our problems. So what we're looking for is a comprehensive strategy. And there's gotta be an exit strategy.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Paul Eckert; Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>Treasury to detail toxic assets plan on Monday</title>
<link>http://www.reuters.com/article/topNews/idUSN2266877120090322</link>
<pubDate>Sun, 22 Mar 2009 16:36:04 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner will announce details on Monday of the Obama administration's plans for removing so-called "toxic" assets from the banking system by enlisting private investors in the effort, the Treasury Department said on Sunday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner will announce details on Monday of the Obama administration's plans for removing so-called &quot;toxic&quot; assets from the banking system by enlisting private investors in the effort, the Treasury Department said on Sunday.&lt;/p&gt;

&lt;p&gt;Treasury said Geithner will hold a briefing at 8:45 a.m. EST on Monday to talk about wide-ranging efforts to stabilize the financial system through pumping cash into faltering banks and its other efforts to try to increase lending.&lt;/p&gt;

&lt;p&gt;&quot;Tomorrow, Treasury will release details of the next component: the Public Private Investment Program, which will invest alongside private investors in funds that will provide a market for the legacy loans and securities that currently burden the financial system,&quot; Treasury said in a statement.&lt;/p&gt;

&lt;p&gt;Ridding banks' balance sheets of poorly performing assets is widely seen as a vital step in getting a credit crisis, that originated in the battered housing sector, under control.&lt;/p&gt;

&lt;p&gt;The Treasury Department is also expected to brief private capital groups later on Sunday about incentives to get them involved in the plan to buy up banks' troubled assets, a source familiar with the matter said.&lt;/p&gt;

&lt;p&gt;The aim will be to attract private investors into buying the unwanted assets, with the government providing incentives in the form of abundant loans and generous terms.&lt;/p&gt;

&lt;p&gt;On Sunday the Treasury offered no insight into specific terms that Treasury might be prepared to offer nor any details about how many public-private funds it expects to seek out the troubled assets.&lt;/p&gt;

&lt;p&gt;When the details are released on Monday, they will be presented to a market that has been roiled by a searing controversy over big bonus payments given to employees of insurer American International group when it was receiving government bailout money.&lt;/p&gt;

&lt;p&gt;Congress is already seeking to take back the bonuses, a move that some analysts warn may make private-sector participants wary about getting involved in a toxic-asset purchase program if there is a risk they could face a backlash over future profits.&lt;/p&gt;

&lt;p&gt;Geithner has been under pressure as well, stemming from an announcement last month that Treasury was mulling pubic-private investment funds but providing such scanty details that bank stocks slumped amid fears that some U.S. banks might face eventual nationalization.&lt;/p&gt;

&lt;p&gt;(Reporting by David Lawder and Karey Wutkowski, writing by Glenn Somerville)&lt;/p&gt;</media:text>
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<title>Treasury to detail investment funds plan Monday</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1FL20090322</link>
<pubDate>Sun, 22 Mar 2009 15:38:19 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. Treasury Department announced on Sunday that Treasury Secretary Timothy Geithner will hold a briefing on Monday morning on efforts to stabilize the financial system.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The U.S. Treasury Department announced on Sunday that Treasury Secretary Timothy Geithner will hold a briefing on Monday morning on efforts to stabilize the financial system.&lt;/p&gt;

&lt;p&gt;&quot;Tomorrow, Treasury will announce details of the next component: the Public Private Investment Program, which will invest alongside private investors in funds that will provide a market for the legacy loans and securities that currently burden the financial system&quot; Treasury said in an announcement.&lt;/p&gt;

&lt;p&gt;(Reporting by David Lawder, writing by Glenn Somerville, editing by Richard Chang)&lt;/p&gt;</media:text>
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<title>Israel says car bomb defused at shopping mall</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L1BW20090322</link>
<pubDate>Sun, 22 Mar 2009 14:30:53 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - Prime Minister Ehud Olmert said on Sunday an explosives-laden car parked at a shopping mall in northern Israel, and defused by police, was an attempted Arab attack aimed at causing mass casualties.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;JERUSALEM (Reuters) - Prime Minister Ehud Olmert said on Sunday an explosives-laden car parked at a shopping mall in northern Israel, and defused by police, was an attempted Arab attack aimed at causing mass casualties.&lt;/p&gt;

&lt;p&gt;Israeli media reported a little-known armed faction called Liberators of the Galilee claimed responsibility for planting the bomb in Haifa on Saturday.&lt;/p&gt;

&lt;p&gt;The group's name -- the Galilee is in Israel -- suggested it could be comprised of Israeli Arabs, who make up some 20 percent of the population of the Jewish state.&lt;/p&gt;

&lt;p&gt;&quot;A huge disaster was prevented last night in Haifa after a car packed with dozens of kilos of explosives did not explode,&quot; Olmert said at the weekly cabinet meeting.&lt;/p&gt;

&lt;p&gt;Olmert did not use the word &quot;Palestinians&quot; in his comments, but said the West Bank had long been a &quot;stepping off point&quot; for attacks inside Israel.&lt;/p&gt;

&lt;p&gt;&quot;A preliminary investigation shows it was a terrorist infrastructure operating with great sophistication and aiming to carry out a mass-casualty attack,&quot; he said, without naming any group.&lt;/p&gt;

&lt;p&gt;The Liberators of the Galilee were quoted as saying they wanted to avenge Israel's demolition of Palestinian homes in Jerusalem and the recent Israeli military offensive in Gaza.&lt;/p&gt;

&lt;p&gt;The number of Palestinian attacks from the occupied West Bank has dropped dramatically over the past several years, a decrease Israeli leaders attribute partly to the barrier Israel has built in the territory to international condemnation.&lt;/p&gt;

&lt;p&gt;But Olmert said: &quot;We should not delude ourselves. Attempts by terrorist organizations to carry out attacks inside Israel, along its borders and in its heartland, in various regions, are continuing.&quot;&lt;/p&gt;

&lt;p&gt;There was one Palestinian suicide bombing in Israel last year.&lt;/p&gt;

&lt;p&gt;In four other incidents since 2008, which police described as attacks, three bulldozers and a car driven by Palestinian residents of Arab East Jerusalem rammed into Israeli vehicles in the western part of the city.&lt;/p&gt;

&lt;p&gt;Those events underscored a particular security challenge for Israel: residents of East Jerusalem, an area captured in a 1967 war and annexed in a move that has not won international recognition, carry the same identity cards issued to Israeli Jews and enjoy greater freedom of movement than Palestinian brethren in the West Bank.&lt;/p&gt;

&lt;p&gt;Police spokesman Micky Rosenfeld said a small blast, possibly caused by a botched detonation, drew the attention of police to the shopping mall's parking lot. He said they found a &quot;large explosive&quot; in the car and called in bomb disposal teams.&lt;/p&gt;

&lt;p&gt;(Writing by Jeffrey Heller, Editing by Richard Williams)&lt;/p&gt;</media:text>
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<title>Venezuela's Chavez calls Obama &quot;ignoramus&quot;</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L19G20090322</link>
<pubDate>Sun, 22 Mar 2009 13:24:47 -0600</pubDate>
<description><![CDATA[CARACAS (Reuters) - Venezuela's President Hugo Chavez said on Sunday his U.S. counterpart Barack Obama was at best an "ignoramus" for saying the socialist leader exported terrorism and obstructed progress in Latin America.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;CARACAS (Reuters) - Venezuela's President Hugo Chavez said on Sunday his U.S. counterpart Barack Obama was at best an &quot;ignoramus&quot; for saying the socialist leader exported terrorism and obstructed progress in Latin America.&lt;/p&gt;

&lt;p&gt;&quot;He goes and accuses me of exporting terrorism: the least I can say is that he's a poor ignoramus; he should read and study a little to understand reality,&quot; said Chavez, who heads a group of left-wing Latin American leaders opposed to the U.S. influence in the region.&lt;/p&gt;

&lt;p&gt;Chavez said Obama's comments had made him change his mind about sending a new ambassador to Washington, after he withdrew the previous envoy in a dispute last year with the Bush administration in which he also expelled the U.S. ambassador to Venezuela.&lt;/p&gt;

&lt;p&gt;&quot;When I saw Obama saying what he said, I put the decision back in the drawer; let's wait and see,&quot; Chavez said on his weekly television show, adding he had wanted to send a new ambassador to improve relations with the United States after the departure of George W. Bush as president.&lt;/p&gt;

&lt;p&gt;In a January interview with Spanish-language U.S. network Univision, Obama said Chavez had hindered progress in Latin America, accusing him of exporting terrorist activities and supporting Colombian guerrillas.&lt;/p&gt;

&lt;p&gt;&quot;My, what ignorance; the real obstacle to development in Latin America has been the empire that you today preside over,&quot; said Chavez, who is a fierce critic of U.S. foreign policy.&lt;/p&gt;

&lt;p&gt;In the 20th century the United States supported several armed movements and coups in Latin America. Chavez says Washington had a hand in a short-lived putsch against him in 2002, which was initially welcomed by U.S. officials.&lt;/p&gt;

&lt;p&gt;Chavez and Obama will both attend the Summit of the Americas in Trinidad and Tobago next month. It is not known whether they will meet.&lt;/p&gt;

&lt;p&gt;Most of OPEC nation Venezuela's export income comes from oil it sells to the United States, but Chavez has built stronger ties with countries like China in an attempt to reduce dependence on his northern neighbor.&lt;/p&gt;

&lt;p&gt;Chavez expelled its U.S. ambassador in September in a dispute over U.S. activities in his ally Bolivia, which also expelled its U.S. ambassador. Ecuador's left-wing President Rafael Correa this year kicked out a mid-ranking U.S. diplomat.&lt;/p&gt;

&lt;p&gt;(Reporting by Frank Jack Daniel; Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>Geithner's big week offers a chance at redemption</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0YU20090322</link>
<pubDate>Sun, 22 Mar 2009 10:21:24 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - If embattled U.S. Treasury Secretary Timothy Geithner can calm the AIG storm and convince investors that his plan for rehabilitating the banks will work, all may be forgiven.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Emily Kaiser and David Lawder - Analysis&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - If embattled U.S. Treasury Secretary Timothy Geithner can calm the AIG storm and convince investors that his plan for rehabilitating the banks will work, all may be forgiven.&lt;/p&gt;

&lt;p&gt;As brutal as the past week was for Geithner -- with lawmakers accusing him of doing nothing to stop bailout recipient AIG from paying fat bonuses, and some calling for his resignation -- the coming days will be even more crucial.&lt;/p&gt;

&lt;p&gt;While the bonus fury rages in Washington, financial firms and investors are itching to know precisely how Geithner plans to rid banks of bad assets, and whether doing business with the government will subject them to uncomfortable scrutiny.&lt;/p&gt;

&lt;p&gt;Possibly as soon as Monday, Geithner is expected to roll out a three-part plan, including low-interest loans for private investors to buy bad assets from banks.&lt;/p&gt;

&lt;p&gt;Geithner is also due this week to outline regulatory reform proposals to establish a clear process for unwinding troubled nonbank financial companies like AIG and an early-warning system to spot developments that could imperil the financial system, all with an eye toward preventing future crises.&lt;/p&gt;

&lt;p&gt;He cannot afford a repeat of February when a ballyhooed speech on his plan to fix the financial crisis offered little detail. That triggered a stock-market slump and raised questions about whether the government knew what it was doing.&lt;/p&gt;

&lt;p&gt;&quot;He's lost a lot of credibility and a lot of political good will, but he can turn things around,&quot; said Nariman Behravesh, chief economist at IHS Global Insight in Lexington, Massachusetts. &quot;If he can come up with a credible plan, fine. If not, then his days are numbered.&quot;&lt;/p&gt;

&lt;p&gt;The uproar over $165 million in bonuses paid to employees of American International Group Inc has opened Geithner up to attacks from all sides.&lt;/p&gt;

&lt;p&gt;Not only was he blamed for allowing the bonuses but he also took heat from Wall Street firms, which saw AIG Chief Executive Edward Liddy grilled by angry lawmakers and wondered whether accepting government help would mean their CEO could be next.&lt;/p&gt;

&lt;p&gt;SORRY BUDDY&lt;/p&gt;

&lt;p&gt;In a sign of how rough things are getting for Geithner, traders on the online prediction market Intrade saw a 16.5 percent chance that he would be out at Treasury by June 30, and a 32 percent chance he would be gone by December 31.&lt;/p&gt;

&lt;p&gt;President Barack Obama has had to voice support for Geithner repeatedly in recent days. In an interview with CBS's &quot;60 Minutes&quot; to air on Sunday, he said he would not accept Geithner's resignation if it was offered.&lt;/p&gt;

&lt;p&gt;&quot;Sorry buddy, you've still got the job,&quot; Obama said he would tell Geithner, according to interview excerpts.&lt;/p&gt;

&lt;p&gt;U.S. Sen. Richard Shelby, the top Republican on the Senate Banking Committee, said the show of support does not make him feel &quot;especially good&quot; about the Treasury nor Geithner.&lt;/p&gt;

&lt;p&gt;&quot;He'll have to have at least a 180 degree turnaround, I believe, to be a successful Treasury secretary,&quot; the Alabama senator told &quot;Fox News Sunday.&quot;&lt;/p&gt;

&lt;p&gt;When Geithner started his job, his credibility was already dented by underpayment of self-employment taxes earlier this decade, which led 34 senators to vote against his confirmation. Shelby voted to approve it.&lt;/p&gt;

&lt;p&gt;For many investors and economists, the bonuses chatter threatens to undermine efforts to repair the banks, which they see as critical to pulling the economy out of recession.&lt;/p&gt;

&lt;p&gt;&quot;It has become a major distraction and the worry now is, 'Am I going to get beat up if I take government money?'&quot; Global Insight's Behravesh said.&lt;/p&gt;

&lt;p&gt;&quot;What kind of strings are going to be attached to this by Congress? It creates a perverse disincentive in the sense that it might make companies that should take the money reluctant to take it.&quot;&lt;/p&gt;

&lt;p&gt;Shifting the focus back to the bigger issue of cleaning up the banking mess will not be easy. Geithner is scheduled to testify to Congress about AIG on Tuesday. Lawmakers are keen to know precisely when he and Federal Reserve Chairman Ben Bernanke knew about the bonuses.&lt;/p&gt;

&lt;p&gt;On Friday, Representative Connie Mack said Geithner should resign or be fired after losing the confidence of Americans.&lt;/p&gt;

&lt;p&gt;&quot;Secretary Geithner should resign today for the good of the country. If he won't, he should be summarily fired and replaced with someone who can get the job done without destroying the economic foundations and values upon which this nation was built,&quot; the Florida Republican said in a statement.&lt;/p&gt;

&lt;p&gt;Given Obama's endorsement, there is little chance Geithner will be dumped even if he has a poor showing this week. There are no obvious alternative candidates to step in, and the Treasury is woefully understaffed, with few deputies to take up the slack.&lt;/p&gt;

&lt;p&gt;But if the economy does not show improvement by the end of the year, Geithner &quot;would be a likely candidate for sacrifice&quot; ahead of mid-term elections in November 2010, said Larry Sabato, director of the University of Virginia's Center for Politics.&lt;/p&gt;

&lt;p&gt;&quot;By that point, Obama will have to do something to show that they're changing plans,&quot; he said.&lt;/p&gt;

&lt;p&gt;(Editing by Maureen Bavdek)&lt;/p&gt;</media:text>
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<title>Obama says risks still haunt U.S. financial system</title>
<link>http://www.reuters.com/article/topNews/idUSN2253943020090322</link>
<pubDate>Sun, 22 Mar 2009 09:44:36 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. financial system still faces risks requiring government intervention to avoid a more destructive recession, President Barack Obama said, before a critical week of fleshing out and selling his recovery plan.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By John O'Callaghan&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The U.S. financial system still faces risks requiring government intervention to avoid a more destructive recession, President Barack Obama said, before a critical week of fleshing out and selling his recovery plan.&lt;/p&gt;

&lt;p&gt;Obama's steps to reverse a deep U.S. economic downturn and restructure the ailing banking system have global implications as he prepares to meet fellow leaders of major developed and developing nations at a Group of 20 summit in early April.&lt;/p&gt;

&lt;p&gt;But his reform plans and vast spending envisioned to reboot the world's largest economy and purge U.S. banks of at least $1 trillion in &quot;toxic&quot; assets face steep resistance from some in Congress and corporate boardrooms.&lt;/p&gt;

&lt;p&gt;In a key part of the agenda, Treasury Secretary Timothy Geithner is due to unveil long-awaited details of his bank bailout plan at 8:45 a.m. EDT on Monday.&lt;/p&gt;

&lt;p&gt;&quot;I think that systemic risks are still out there,&quot; Obama said in an interview with the CBS program &quot;60 Minutes&quot; aired on Sunday.&lt;/p&gt;

&lt;p&gt;&quot;There are certain institutions that are so big that if they fail, they bring a lot of other financial institutions down with them. And if all those financial institutions fail at the same time, then you could see an even more destructive recession and potentially depression.&quot;&lt;/p&gt;

&lt;p&gt;Obama, a Democrat who inherited the crisis from Republican President George W. Bush, also said he had not anticipated such a sharp economic drop, especially heavy job losses, but he saw &quot;flickers of hope&quot; for a recovery.&lt;/p&gt;

&lt;p&gt;Obama's team is &quot;incredibly confident&quot; the economy will rebound within a year, Christina Romer, head of the White House Council of Economic Advisers, told &quot;Fox News Sunday.&quot;&lt;/p&gt;

&lt;p&gt;On CNN's &quot;State of the Union&quot; show, Romer said she had &quot;every expectation, as do private forecasters, that we will bottom out this year and actually be growing again by the end of the year.&lt;/p&gt;

&lt;p&gt;In two key parts of the Obama agenda, Geithner is expected to unveil long-awaited details of his bank bailout plan on Monday and then, at a congressional hearing on Thursday, to expand on proposals for financial regulatory reform.&lt;/p&gt;

&lt;p&gt;One aim of the three-part strategy to cleanse the financial system will be to entice private investors with abundant loans and generous terms to buy bad mortgages and other toxic assets, a source familiar with the plan told Reuters on Saturday.&lt;/p&gt;

&lt;p&gt;Obama, whose high approval ratings are being tested in his third month as president as public anger rages over big bonuses at bailed-out financial firms, will discuss his recovery efforts in a prime-time news conference on Tuesday.&lt;/p&gt;

&lt;p&gt;PRIVATE MONEY AND PUBLIC OUTRAGE&lt;/p&gt;

&lt;p&gt;Geithner has been attacked over his failure to halt bonuses of at least $165 million, and possibly as much as $218 million, paid out to employees by hobbled insurer American International Group, which has been bailed out with about $180 billion in taxpayer money.&lt;/p&gt;

&lt;p&gt;Obama has stepped up his defense of Geithner, telling &quot;60 Minutes&quot; he would not accept his Treasury secretary's resignation even if it were tendered.&lt;/p&gt;

&lt;p&gt;Geithner, who dismissed the calls to step down while taking responsibility for the AIG bonuses controversy, has also been criticized over his slow roll-out of the rescue plans for the banking sector that are seen as vital to an overall recovery.&lt;/p&gt;

&lt;p&gt;&quot;He's lost a lot of credibility and a lot of political good will, but he can turn things around,&quot; said Nariman Behravesh, chief economist at IHS Global Insight. &quot;If he can come up with a credible plan, fine. If not, then his days are numbered.&lt;/p&gt;

&lt;p&gt;Public anger over the AIG bonuses overflowed last week, prompting the House of Representatives to pass a tax bill to claw back the payouts. The Senate has several of its own ideas about how to deal with executive pay.&lt;/p&gt;

&lt;p&gt;Richard Shelby, a Republican member of the Senate Banking Committee, said &quot;it's possible&quot; heavy taxes on pay may scare away investors from the Treasury's bank rescue program.&lt;/p&gt;

&lt;p&gt;&quot;We have to be careful of unintended consequences in legislation&quot; passed by the House, Shelby told Fox, adding that &quot;no one wants to award taxpayer money to people who have caused institutions to fail.&quot;&lt;/p&gt;

&lt;p&gt;The New York Times said the Treasury will also unveil a sweeping plan this week to overhaul financial rules that would seek broader oversight of executive pay.&lt;/p&gt;

&lt;p&gt;But an administration official said no announcements were planned for this week and dismissed the idea that executive pay was linked to reform of financial regulations.&lt;/p&gt;

&lt;p&gt;Governments around the world are moving to tighten rules on banks, hedge funds, insurers and other firms amid the worst financial crisis in generations -- a priority especially among some European leaders who will meet Obama at the G20 summit.&lt;/p&gt;

&lt;p&gt;Adding to the gloom, World Bank President Robert Zoellick said on Saturday the global economy is set to contract by 1 to 2 percent this year and the depth of the slowdown was unprecedented since the Great Depression of the 1930s.&lt;/p&gt;

&lt;p&gt;BUDGET BATTLES&lt;/p&gt;

&lt;p&gt;The new White House team is also trying to win support for big-ticket items in Obama's record $3.5 trillion budget proposal for the 2010 fiscal year -- something in very short supply among Republicans in Congress.&lt;/p&gt;

&lt;p&gt;&quot;It's an economic blueprint for our future, a vision of America where growth is not based on real estate bubbles or over-leveraged banks, but on a firm foundation of investments in energy, education and healthcare that will lead to a real and lasting prosperity,&quot; Obama said in his weekly radio address on Saturday.&lt;/p&gt;

&lt;p&gt;The budget committees of the Senate and House are set to begin crafting their budget bills this week.&lt;/p&gt;

&lt;p&gt;Republican Senator Judd Gregg appeared ready for a fight over the Obama budget that projects deficits of $1.75 trillion this fiscal year and $1.17 trillion next fiscal year.&lt;/p&gt;

&lt;p&gt;&quot;If we maintain the proposals which are in this budget over the 10-year period that this budget covers, this country will go bankrupt,&quot; he told CNN. &quot;People will not buy our debt. Our dollar will become devalued.&quot;&lt;/p&gt;

&lt;p&gt;The head of the Senate budget committee said he favors higher spending in the short term but that fiscal discipline was critical in the long term.&lt;/p&gt;

&lt;p&gt;&quot;I will present a budget that I think begins to move in that direction,&quot; Democratic Senator Kent Conrad said on ABC's &quot;This Week With George Stephanopoulos.&lt;/p&gt;

&lt;p&gt;&quot;It acknowledges in the short term, yes, we have got to have added deficits and debt to give lift to this economy but, longer term, we have got to pivot.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by Philip Barbara, Eric Beech, Deborah Charles, Emily Kaiser, David Lawder and Tabassum Zakaria; editing by Todd Eastham)&lt;/p&gt;</media:text>
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<title>As climate changes, is water the new oil?</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0TC20090322</link>
<pubDate>Sun, 22 Mar 2009 09:19:35 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - If water is the new oil, is blue the new green?]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Deborah Zabarenko, Environment Correspondent&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - If water is the new oil, is blue the new green?&lt;/p&gt;

&lt;p&gt;Translation: if water is now the kind of precious commodity that oil became in the 20th century, can delivery of clean water to those who need it be the same sort of powerful force as the environmental movement in an age of climate change?&lt;/p&gt;

&lt;p&gt;And, in another sense of green, is there money to be made in a time of water scarcity?&lt;/p&gt;

&lt;p&gt;The answer to both questions, according to environmental activists watching a global forum on water, is yes.&lt;/p&gt;

&lt;p&gt;The week-long meeting in Istanbul ends Sunday, which is International World Water Day, an annual United Nations event that began in 1993 to focus attention on sustainable management of fresh water resources.&lt;/p&gt;

&lt;p&gt;The yearly observance recognizes water as an absolute human need: people can live as much as 30 days without food but only seven without water. How long can a person live without oil?&lt;/p&gt;

&lt;p&gt;More than a billion people lack access to clean water, and 2.5 billion are without water for sanitation, with 80 percent of all disease borne by dirty water.&lt;/p&gt;

&lt;p&gt;This may seem ironic, since Earth is literally a blue planet when seen from space -- most of it is covered in water. But what humans need is water that is fresh and clean, and most of Earth's water is salty or dirty.&lt;/p&gt;

&lt;p&gt;What was clear at this year's World Water Forum in Turkey was the notion that clean, fresh water supplies are waning due to a warming world.&lt;/p&gt;

&lt;p&gt;&quot;As climate change accelerates and we see a changing hydrological cycle, diminishing access to resources, there are direct human impacts that are water-related,&quot; said Jonathan Greenblatt, a professor at the University of California-Los Angeles who advised the Obama transition team on civic engagement and national service.&lt;/p&gt;

&lt;p&gt;If sea levels rise as scientists predict, coastal regions may see increased salination of aquifers -- natural underground reservoirs -- which will affect access to fresh water in those as sea levels rise, Greenblatt said.&lt;/p&gt;

&lt;p&gt;BLUE AGENDA&lt;/p&gt;

&lt;p&gt;In some areas, such as central China, desertification is occurring directly outside Beijing, with desert-like conditions coming to areas that were once fertile, he said.&lt;/p&gt;

&lt;p&gt;&quot;In the same way that climate change has become part of the conversation ... the agenda of legislators and policymakers, I think blue needs to be part of the agenda,&quot; Greenblatt said, using &quot;blue&quot; as shorthand for water.&lt;/p&gt;

&lt;p&gt;There is a high return on investment in clean water projects, the World Health Organization reported: every $1 spent on water and sanitation can bring economic benefits averaging between $7 and $12.&lt;/p&gt;

&lt;p&gt;Health care agencies could save $7 billion a year, employers could gain 320 million productive days a year for workers in the 15-to-59 age range, there could be an extra 272 million school attendance days annually and an added 1.5 billion healthy days for children under the age of five, WHO said.&lt;/p&gt;

&lt;p&gt;In dollars and cents, an investment of $11.3 billion a year could yield a payback of $83 billion a year in increased productivity and health, the Natural Resources Defense Council said in its blog written from the forum, http://switchboard.nrdc.org/worldwaterday.php.&lt;/p&gt;

&lt;p&gt;&quot;As many have pointed out in this week's debates, this payback makes a very strong argument in favor of promoting safe water and sanitation in these difficult financial times,&quot; the council's Melanie Nakagawa wrote.&lt;/p&gt;

&lt;p&gt;The water forum does not go far enough in making this a top agenda item, the conservation group WWF International said.&lt;/p&gt;

&lt;p&gt;&quot;...(I)t is the well-managed or restored river systems that cope best with climate change impacts we are seeing now and those that are yet to come,&quot; James Leape, the group's director general, said in a statement. &quot;This is clearly an issue of water management, but the ministerial declaration flowing from the World Water Forum is more a collection of platitudes than a plan for action.&quot;&lt;/p&gt;

&lt;p&gt;So does the world really need a water day?&lt;/p&gt;

&lt;p&gt;Maybe not, said Susan Keane, a public health expert with the Natural Resources Defense Council.&lt;/p&gt;

&lt;p&gt;&quot;I don't know why anyone should need to be reminded of this, because it's so obviously important and so obviously solvable,&quot; Keane said by telephone. &quot;The answer really is people are blind to the obvious. It's not sexy.&quot;&lt;/p&gt;</media:text>
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<title>Pakistan share terror suspect profiles: Interpol</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0T220090322</link>
<pubDate>Sun, 22 Mar 2009 09:16:09 -0600</pubDate>
<description><![CDATA[PARIS (Reuters) - Pakistan has shared the DNA profiles of suspected terrorists linked to last year's attacks in Mumbai with Interpol, the policy agency said on Sunday in what it called a benchmark move.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;PARIS (Reuters) - Pakistan has shared the DNA profiles of suspected terrorists linked to last year's attacks in Mumbai with Interpol, the policy agency said on Sunday in what it called a benchmark move.&lt;/p&gt;

&lt;p&gt;Interpol, which has 187 member countries, said the information would allow it to help Pakistan's Federal Investigation Agency (FIA) to determine &quot;the full international dimension&quot; of the attacks.&lt;/p&gt;

&lt;p&gt;&quot;Pakistan's decision to send its DNA terrorist-related profiles to Interpol so that all member countries can compare their DNA profiles against them sets a benchmark for Interpol in terrorist-related investigations,&quot; Interpol Secretary General Ronald K. Noble said in a statement.&lt;/p&gt;

&lt;p&gt;Interpol said in December that India had not shared information with it about the attacks, which killed 179 people.&lt;/p&gt;

&lt;p&gt;Pakistan, under pressure over Indian accusations that the 10 gunmen who attacked Mumbai came from Pakistan, had also complained that India had yet to provide it with any evidence to push its investigation forward.&lt;/p&gt;

&lt;p&gt;Tensions between the two countries, which are both members of Interpol, worsened since the attacks on India's financial heart that killed 179 people.&lt;/p&gt;

&lt;p&gt;(Reporting by Anna Willard)&lt;/p&gt;</media:text>
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<title>Poland hopes U.S. will not let it down on shield</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0PX20090322</link>
<pubDate>Sun, 22 Mar 2009 08:30:11 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - Poland said on Sunday it hoped the new U.S. administration would not abandon plans to station a missile defence system on its territory.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;BRUSSELS (Reuters) - Poland said on Sunday it hoped the new U.S. administration would not abandon plans to station a missile defence system on its territory.&lt;/p&gt;

&lt;p&gt;President Barack Obama's administration is reviewing U.S. security policy, including the missile shield plan. This has prompted speculation he might shelve a project that has angered Moscow, with which Washington wants to mend ties.&lt;/p&gt;

&lt;p&gt;Polish Foreign Minister Radoslaw Sikorski said Poland had taken &quot;something of a political risk&quot; in signing an agreement with the Bush administration to host the system.&lt;/p&gt;

&lt;p&gt;&quot;When we started discussing this with the United States, the U.S. assured us they would persuade the Russians that it was purely defensive and it would be a non-controversial decision,&quot; he told the annual Brussels Forum conference.&lt;/p&gt;

&lt;p&gt;&quot;We signed with the old administration; we patiently wait for the new administration, and we hope we don't regret our trust in the United States,&quot; he said, adding that Russia had continued to threaten to deploy missiles near Poland if the shield were deployed.&lt;/p&gt;

&lt;p&gt;At the same event, U.S. Congresswoman Ellen Tauscher, who is expected to be named the new U.S. under secretary for arms control and international security, said the missile system would not be deployed until it had been proven to work.&lt;/p&gt;

&lt;p&gt;She said the current missile threat to deployed troops and southern Europe was from short and medium-range missiles, against which there was already a defence capability.&lt;/p&gt;

&lt;p&gt;She said NATO needed to develop a short- to medium-range system, something that could involve cooperation with Russia.&lt;/p&gt;

&lt;p&gt;&quot;We could certainly bolt on the long-range system once it has been tested and create a suite of systems that have complete coverage for everybody,&quot; she said.&lt;/p&gt;

&lt;p&gt;NATO member Poland has said it expects the shield project, designed to counter possible threats from what Washington calls rogue states such as Iran, to go ahead eventually after the review and hopes to complete technical talks next month.&lt;/p&gt;

&lt;p&gt;Under the deal agreed last year, Poland would host 10 ground-based interceptors, and in return Washington promised to station a Patriot missile battery on Polish territory for a period before the end of 2009.&lt;/p&gt;

&lt;p&gt;Warsaw sees that as a symbolic security guarantee to counter an assertive Russia, and U.S. and Polish diplomats say this will go ahead independently of any decision on the missile shield.&lt;/p&gt;

&lt;p&gt;Russia opposed NATO's admission of the three ex-communist countries in 1999 and is campaigning strongly against Georgia and Ukraine, former Soviet republics, being allowed to join an alliance that Russians still view with deep distrust.&lt;/p&gt;

&lt;p&gt;(Reporting by David Brunnstrom, editing by Tim Pearce)&lt;/p&gt;</media:text>
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<title>Iran sets terms for U.S. ties</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0P120090322</link>
<pubDate>Sun, 22 Mar 2009 08:11:00 -0600</pubDate>
<description><![CDATA[TEHRAN (Reuters) - Iran has responded to U.S. President Barack Obama's offer of better relations by demanding policy changes from Washington, but the Islamic state is not closing the door to a possible thaw in ties with its old foe.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Fredrik Dahl&lt;/p&gt;

&lt;p&gt;TEHRAN (Reuters) - Iran has responded to U.S. President Barack Obama's offer of better relations by demanding policy changes from Washington, but the Islamic state is not closing the door to a possible thaw in ties with its old foe.&lt;/p&gt;

&lt;p&gt;Iran wants the United States to show concrete change in its behavior toward it, for example by handing back frozen assets, but Tehran is not pursuing &quot;eternal hostility,&quot; said Professor Mohammad Marandi at Tehran University.&lt;/p&gt;

&lt;p&gt;&quot;I think they (the Iranian leadership) are quite willing to have better relations if the Americans are serious,&quot; said Marandi, who heads North American studies at the university.&lt;/p&gt;

&lt;p&gt;A day after Obama held out the prospect of a &quot;new beginning&quot; of diplomatic engagement, Iran's top authority spoke at length on Saturday about its grievances against the United States and said he saw no real policy shift yet by the new administration.&lt;/p&gt;

&lt;p&gt;But Supreme Leader Ayatollah Ali Khamenei, who has final say on all matters of state, also added in his speech at Iran's most prominent religious shrine in the northeastern city of Mashhad: &quot;You change, our behavior will change.&quot;&lt;/p&gt;

&lt;p&gt;Marandi said Khamenei did not dismiss Obama's overture but was &quot;effectively saying that this is simply not enough, that the United States must take concrete steps toward decreasing tension with Iran.&quot;&lt;/p&gt;

&lt;p&gt;Iran and the United States have not had diplomatic ties for three decades and are now embroiled in a dispute over Tehran's nuclear program, which the West suspects is aimed at making bombs. Iran denies the charge.&lt;/p&gt;

&lt;p&gt;Saeed Laylaz, editor of business daily Sarmayeh and an outspoken political commentator, said Khamenei in his speech had sent a &quot;counter-offer&quot; to the United States following Obama's video message on Friday to mark the Iranian New Year. &quot;I think he opened the doors to the United States,&quot; Laylaz said.&lt;/p&gt;

&lt;p&gt;FROZEN ASSETS&lt;/p&gt;

&lt;p&gt;After taking office in January, Obama talked of extending a hand of peace to Tehran if it &quot;unclenches its fist,&quot; in contrast to his predecessor George W. Bush, who branded Iran part of an &quot;axis of evil&quot; and spearheaded a drive to isolate it.&lt;/p&gt;

&lt;p&gt;In his warmest offer yet of a fresh start in relations, Obama said in Friday's video message: &quot;The United States wants the Islamic Republic of Iran to take its rightful place in the community of nations.&quot;&lt;/p&gt;

&lt;p&gt;But Khamenei made clear more than a change in U.S. rhetoric was needed, saying the United States was &quot;hated in the world&quot; and should stop interfering in other countries.&lt;/p&gt;

&lt;p&gt;He also spoke of &quot;oppressive sanctions&quot; imposed on the Islamic Republic, Iranian assets frozen in the United States and Washington's backing of Israel, which Tehran does not recognize.&lt;/p&gt;

&lt;p&gt;&quot;Khamenei suggested a very clear way for Obama's administration, how they can start real action about Iran,&quot; Laylaz said.&lt;/p&gt;

&lt;p&gt;Iranian officials have repeatedly shrugged off the impact of U.S. and U.N. sanctions on the country but analysts say tumbling crude prices may make the world's fourth-largest oil producer more vulnerable to such pressure over its nuclear activity.&lt;/p&gt;

&lt;p&gt;Marandi said the United States could make a significant move by giving back Iranian assets blocked after a group of Iranian students seized the U.S. embassy in Tehran in 1979 and held 52 Americans hostage for 444 days.&lt;/p&gt;

&lt;p&gt;Analysts have said Iran is setting tough conditions for dialogue to buy time. Adding to uncertainty, it holds a presidential election in June that could strengthen moderate voices backing detente over more hardline opponents.&lt;/p&gt;

&lt;p&gt;President Mahmoud Ahmadinejad has demanded Washington apologize for decades of &quot;crimes&quot; against Iran. Tehran also says it cannot let down its guard as long as U.S. troops are on its borders in Iraq and Afghanistan.&lt;/p&gt;

&lt;p&gt;But Professor Hamidreza Jalaiepour, who teaches political sociology in Tehran, said Khamenei had delivered a pragmatic message rather than one based on ideology on Saturday.&lt;/p&gt;

&lt;p&gt;If the United States eased sanctions imposed on Iran or released frozen funds, Iran was likely to respond, for example in helping to stabilize neighboring Afghanistan, he said.&lt;/p&gt;

&lt;p&gt;(Editing by Janet Lawrence)&lt;/p&gt;</media:text>
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<title>Obama adviser Romer certain of economic rebound in 1 yr</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0N820090322</link>
<pubDate>Sun, 22 Mar 2009 07:34:51 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - One of President Barack Obama's top economic advisers said on Sunday that she was "incredibly confident" the president's efforts will turn the U.S. economy around within one year.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - One of President Barack Obama's top economic advisers said on Sunday that she was &quot;incredibly confident&quot; the president's efforts will turn the U.S. economy around within one year.&lt;/p&gt;

&lt;p&gt;Christina Romer, head of the White House Council of Economic Advisers, said because of the programs Obama was implementing, &quot;We will be seeing signs the economy is turning around ... (it) is growing again.&quot;&lt;/p&gt;

&lt;p&gt;She told the &quot;Fox News Sunday&quot; program that she was &quot;incredibly confident&quot; that the president's programs will turn around the slumping U.S. economy.&lt;/p&gt;

&lt;p&gt;&quot;That's why we're taking them,&quot; she said. &quot;We absolutely think they will do the job for the American economy.&quot;&lt;/p&gt;

&lt;p&gt;The Obama White House is expected this week to roll out a three-pronged bid to cleanse the U.S. financial system of &quot;toxic&quot; assets clogging banks' balance sheets, a source familiar with the plan told Reuters on Saturday.&lt;/p&gt;

&lt;p&gt;The plan, a cornerstone of the Obama administration's costly attack on the credit crisis, will aim to attract private investors by offering abundant loans and generous terms.&lt;/p&gt;

&lt;p&gt;Appearing on CNN's &quot;State of the Union&quot; show, Romer said that she had &quot;every expectation, as do private forecasters, that we will bottom out this year and actually be growing again by the end of the year.&quot;&lt;/p&gt;

&lt;p&gt;(Writing by Philip Barbara; Editing by Eric Beech)&lt;/p&gt;</media:text>
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<title>Turkey could block Rasmussen at NATO, official says</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0MP20090322</link>
<pubDate>Sun, 22 Mar 2009 07:17:40 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - Turkey could block Denmark's prime minister from becoming the next NATO chief given concerns over his past stance on Turkey and a row over Danish cartoons of the Prophet Mohammad, a Turkish official said on Sunday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;BRUSSELS (Reuters) - Turkey could block Denmark's prime minister from becoming the next NATO chief given concerns over his past stance on Turkey and a row over Danish cartoons of the Prophet Mohammad, a Turkish official said on Sunday.&lt;/p&gt;

&lt;p&gt;Current secretary general Dutchman Jaap de Hoop Scheffer steps down on July 31. His successor is expected to be named at an April 3-4 NATO summit.&lt;/p&gt;

&lt;p&gt;NATO diplomats and a U.S. source said on Saturday Washington had told NATO allies it would back Anders Fogh Rasmussen as the next secretary general but getting Turkey to agree would be key.&lt;/p&gt;

&lt;p&gt;A Turkish official said the Turkish position could be set in coming days, but Rasmussen was &quot;tainted&quot; in Turkey's eyes.&lt;/p&gt;

&lt;p&gt;&quot;It may come to the veto,&quot; he told Reuters. &quot;We will have to see.&quot; NATO leadership positions are filled by consensus among the 26-nation military pact.&lt;/p&gt;

&lt;p&gt;The official, who did not want to be named due to the sensitivity of the issue, said Turkey was riled that Demark allowed a pro-Kurdish militant television station to broadcast from Denmark, and by comments by Rasmussen in 2003 saying that Turkey would never be a full EU member.&lt;/p&gt;

&lt;p&gt;&quot;Thirdly, the way that Denmark handled the cartoon crisis didn't go down well at all in Turkey,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;The cartoon crisis has a larger dimension than just Turkey. At a time when NATO is going to assume added responsibility in Afghanistan and Pakistan, having a secretary general with such an objectionable approach to billions of Muslims is not the right approach to the Muslim world.&quot;&lt;/p&gt;

&lt;p&gt;The cartoon row erupted in 2006 after a Danish newspaper cartoon depicted the Prophet Mohammad with a bomb in his turban were reprinted across the European media.&lt;/p&gt;

&lt;p&gt;Rasmussen refused to apologize for the cartoons, which sparked riots and attacks on Danish embassies in several Muslim states, but which Western governments defended in the name of freedom of expression.&lt;/p&gt;

&lt;p&gt;The Turkish official said Ankara would prefer to see Canadian Defense Minister Peter MacKay in the NATO job, noting Canadian political support for Turkey in the past.&lt;/p&gt;

&lt;p&gt;Speaking on the sidelines of the annual Brussels Forum conference, Mackay refused to rule himself out of the job that has traditionally gone to a European, although he said he had a lot of work to do rebuilding the Canadian armed forces.&lt;/p&gt;

&lt;p&gt;&quot;Canada, by virtue of being a ... founding member of NATO is of course very interested in all aspects of NATO, including the leadership, he said.&lt;/p&gt;

&lt;p&gt;At the same event, U.S. Congresswoman Ellen Tauscher, seen as due to be named the new U.S. under secretary for arms control and international security, called Mackay &quot;a star,&quot; but declined to say who Washington wanted in the job.&lt;/p&gt;

&lt;p&gt;(Reporting by Paul Taylor and David Brunnstrom)&lt;/p&gt;</media:text>
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<title>Egypt seeking return of ancient coffin from U.S</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0LT20090322</link>
<pubDate>Sun, 22 Mar 2009 07:04:26 -0600</pubDate>
<description><![CDATA[CAIRO (Reuters) - Egypt is in talks with U.S. authorities to repatriate a 3,000-year-old pharaonic-era wood coffin that was intercepted by U.S. customs officials, Egypt's Supreme Council for Antiquities said on Sunday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;CAIRO (Reuters) - Egypt is in talks with U.S. authorities to repatriate a 3,000-year-old pharaonic-era wood coffin that was intercepted by U.S. customs officials, Egypt's Supreme Council for Antiquities said on Sunday.&lt;/p&gt;

&lt;p&gt;The coffin, which was smuggled out of Egypt in 1884, dates to the 21st pharaonic dynasty, which ruled Egypt between 1081 BC and 931 BC, and came from the ancient Egyptian city of Thebes, the antiquities council said in a statement.&lt;/p&gt;

&lt;p&gt;The coffin is carved to resemble its occupant, and is painted with images and religious inscriptions meant to aid the soul on its journey through the afterlife, the statement said.&lt;/p&gt;

&lt;p&gt;Egypt's antiquities chief Zahi Hawass described the coffin as being in good condition, describing the carved face on it as &quot;marvelous and beautiful.&quot;&lt;/p&gt;

&lt;p&gt;Egypt will sent a formal repatriation request &quot;within days&quot; to Miami, where the coffin is being held, the council said. It added that Cairo had provided evidence to prove the coffin left the country illegally and establish its claim.&lt;/p&gt;

&lt;p&gt;The statement said an American had bought the coffin from a Spanish dealer and shipped it to the United States, but U.S. customs officials in Miami, Florida impounded it on February 26 for lack of paperwork establishing legal ownership.&lt;/p&gt;

&lt;p&gt;The American buyer subsequently relinquished his claim to the coffin, the statement said.&lt;/p&gt;

&lt;p&gt;Egyptian artifacts are often stolen and smuggled abroad. Since 2002, Egypt has succeeded in bringing home around 5,000 stolen or smuggled artifacts.&lt;/p&gt;

&lt;p&gt;(Writing by Aziz El-Kaissouni)&lt;/p&gt;</media:text>
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<title>Pakistani leaders reconcile as top judge reinstated</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0HZ20090322</link>
<pubDate>Sun, 22 Mar 2009 05:52:16 -0600</pubDate>
<description><![CDATA[ISLAMABAD (Reuters) - Pakistani opposition leader Nawaz Sharif welcomed a call for reconciliation from President Asif Ali Zardari on Sunday, a week after the government averted a political crisis by restoring the country's top judge.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Augustine Anthony&lt;/p&gt;

&lt;p&gt;ISLAMABAD (Reuters) - Pakistani opposition leader Nawaz Sharif welcomed a call for reconciliation from President Asif Ali Zardari on Sunday, a week after the government averted a political crisis by restoring the country's top judge.&lt;/p&gt;

&lt;p&gt;While the reinstatement of Iftikhar Chaudhry as Supreme Court chief justice defused the crisis, tensions have lingered on expectations of a power struggle between pro-West Zardari and Sharif, starting with a battle for control of Punjab province.&lt;/p&gt;

&lt;p&gt;Prime Minister Yousaf Raza Gilani sought to allay those fears when he met with Sharif.&lt;/p&gt;

&lt;p&gt;&quot;The Prime Minister has given a message by President, which I think is welcomed,&quot; Sharif told a joint news conference with Gilani at the opposition leader's residence outside the eastern city of Lahore.&lt;/p&gt;

&lt;p&gt;&quot;I think it is need of the time, it's the need of Pakistan and in line with the aspiration of the people,&quot; Sharif said.&lt;/p&gt;

&lt;p&gt;Zardari, elected by parliament six months ago, reluctantly reinstated Chaudhry after a mass protest organized by lawyers and led by Sharif, a politician who appeals to conservative religious, nationalist sentiments.&lt;/p&gt;

&lt;p&gt;The army, the United States and Britain helped convince Zardari to compromise amid fears that violence would escalate.&lt;/p&gt;

&lt;p&gt;Sharif has become the most popular politician in Pakistan, partly because of his staunch support for Chaudhry, who became a cause celebre after then-president and army chief General Pervez Musharraf fired him in November 2007 fearing that the judge would spoil his plan to hold on to power.&lt;/p&gt;

&lt;p&gt;Western allies worry that any political disorder in nuclear-armed Pakistan would help al Qaeda, the Taliban and other militant groups deepen their presence in the Muslim nation of 170 million people.&lt;/p&gt;

&lt;p&gt;The meeting between Gilani and Sharif showed both sides had withdrawn from confrontation, and were communicating once more.&lt;/p&gt;

&lt;p&gt;&quot;As far as the reconciliation is concerned, we are moving toward it and there will be no obstacle in it,&quot; Gilani said.&lt;/p&gt;

&lt;p&gt;The government has asked the Supreme Court to suspend a ruling on February 25 that disqualified Sharif and his brother, Shahbaz Sharif, from holding elected office.&lt;/p&gt;

&lt;p&gt;That ruling, handed down late last month, had prompted Zardari to impose central rule over Punjab province, ousting the provincial government led by Sharif's Pakistan Muslim League (Nawaz) party.&lt;/p&gt;

&lt;p&gt;Gilani said he wanted to end central, or governor's, rule in Punjab, the most populous and influential of Pakistan's four provinces, and let whichever party had a majority form a new government there.&lt;/p&gt;

&lt;p&gt;Sharif said the next steps forward should include implementation of a &quot;Charter for Democracy&quot; that he and fellow former prime minister Benazir Bhutto, Zardari's late wife, had agreed in 2006, a year before their return from exile.&lt;/p&gt;

&lt;p&gt;Sharif also reiterated his call for changes in the constitution, to remove sweeping presidential powers and strengthen the role of parliament and the prime minister.&lt;/p&gt;

&lt;p&gt;In Islamabad, hundreds of jubilant lawyers and political and rights activists gathered outside Chaudhry's residence for a flag-hoisting ceremony to mark his formal reinstatement as Supreme Court chief justice on Sunday.&lt;/p&gt;

&lt;p&gt;On Tuesday, he will return to the Supreme Court he was evicted from on the night of November 3, 2007, when Musharraf declared emergency rule.&lt;/p&gt;

&lt;p&gt;(Writing by Simon Cameron-Moore; Editing by Louise Ireland)&lt;/p&gt;</media:text>
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<title>Hamas leader welcomes Obama's &quot;new language&quot;: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52L0HH20090322</link>
<pubDate>Sun, 22 Mar 2009 05:38:58 -0600</pubDate>
<description><![CDATA[ROME (Reuters) - U.S. President Barack Obama is using a "new language" in relations with the Middle East and an official overture toward Hamas is only a matter of time, the Islamist group's leader Khaled Meshaal said in a newspaper interview.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;ROME (Reuters) - U.S. President Barack Obama is using a &quot;new language&quot; in relations with the Middle East and an official overture toward Hamas is only a matter of time, the Islamist group's leader Khaled Meshaal said in a newspaper interview.&lt;/p&gt;

&lt;p&gt;&quot;A new language toward the region is coming from President Obama. The challenge for everybody is for this to be the prelude for a genuine change in U.S. and European policies. Regarding an official opening toward Hamas, it's a matter of time,&quot; Meshaal told Italian daily La Repubblica in an interview published on Sunday.&lt;/p&gt;

&lt;p&gt;The newspaper said Meshaal was reacting to Obama's offer of better ties with Iran, Hamas's main backer along with Syria.&lt;/p&gt;

&lt;p&gt;However, in the interview, Meshaal made no direct reference to Obama's videotaped overture on Friday, nor to Iran's response.&lt;/p&gt;

&lt;p&gt;Iran's Supreme Leader Ayatollah Ali Khamenei said on Saturday Obama's offer of a &quot;new beginning&quot; between the two foes was just a &quot;slogan,&quot; but pledged Tehran would respond to any real policy shift by Washington.&lt;/p&gt;

&lt;p&gt;Meshaal said Israel's 22-day offensive in the Hamas-run Gaza Strip in December and January had not dented Hamas's influence.&lt;/p&gt;

&lt;p&gt;&quot;The great powers need us in order to resolve the Arab-Israeli conflict. Our weight in the Palestinian problem comes from us being rooted in the society, in the population, which voted for us and will do it again,&quot; he said.&lt;/p&gt;

&lt;p&gt;(Reporting by Silvia Aloisi; Editing by Janet Lawrence)&lt;/p&gt;</media:text>
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<title>Credit union victim of soured mortgage market</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K25G20090321</link>
<pubDate>Sat, 21 Mar 2009 17:41:06 -0600</pubDate>
<description><![CDATA[KANSAS CITY (Reuters) - Regulators worked on Saturday to assess troubles at the largest U.S. corporate credit union with the aim of keeping liquidity flowing through the nation's 7,800 credit unions.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Carey Gillam&lt;/p&gt;

&lt;p&gt;KANSAS CITY (Reuters) - Regulators worked on Saturday to assess troubles at the largest U.S. corporate credit union with the aim of keeping liquidity flowing through the nation's 7,800 credit unions.&lt;/p&gt;

&lt;p&gt;A new chief executive will take charge on Monday at U.S. Central Federal Credit Union following seizure by regulators on Friday. The institution, with $34 billion in assets, provides settlement services used by more than 90 percent of all U.S. credit unions, which are member-owned lending institutions.&lt;/p&gt;

&lt;p&gt;The National Credit Union Administration, or NCUA, took control of U.S. Central as well as Western Corporate (WesCorp) Federal Credit Union of San Dimas, California, another corporate credit union with $23 billion in assets.&lt;/p&gt;

&lt;p&gt;&quot;We took action to protect the assets, the share insurance fund and its members,&quot; NCUA regional director Keith Morton said in an interview from the Lenexa, Kansas, headquarters of U.S. Central, where he and other officials were working on Saturday.&lt;/p&gt;

&lt;p&gt;NCUA officials cited declining values of mortgage- and other asset-backed securities as the core problem.&lt;/p&gt;

&lt;p&gt;The action highlighted strains in the nonprofit banking sector that recently had been touted as a source of new lending even as many for-profit banks limit lending and receive billions of dollars of taxpayer-funded capital injections.&lt;/p&gt;

&lt;p&gt;Corporate credit unions provide services such as lending and payment clearance services to retail credit unions.&lt;/p&gt;

&lt;p&gt;NCUA officials would not disclose a specific loss figure for U.S. Central.&lt;/p&gt;

&lt;p&gt;&quot;They have a significant amount of risk ... assets that are currently not marketable,&quot; said Morton.&lt;/p&gt;

&lt;p&gt;A NCUA risk analysis completed this month put potential credit losses throughout the credit union system as high as $16 billion, &quot;with a most reasonable estimate in the current environment of $10.8 billion.&quot;&lt;/p&gt;

&lt;p&gt;SYSTEM BLINKING RED?&lt;/p&gt;

&lt;p&gt;Warning signs had been mounting in recent months.&lt;/p&gt;

&lt;p&gt;In February, U.S. Central said it replaced the executive who had been overseeing the credit union's investment portfolio, putting the division under the direct supervision of then-CEO Francis Lee.&lt;/p&gt;

&lt;p&gt;Lee himself will now be replaced on Monday by regulators with James Nance, a former U.S. Central executive who oversaw the institution's assets and liabilities in the early 1990s.&lt;/p&gt;

&lt;p&gt;In January, NCUA injected $1 billion into U.S. Central after the corporate credit union suffered dramatic declines in the value of mortgage-backed securities it had bought.&lt;/p&gt;

&lt;p&gt;But a continued decline in mortgage values and a lack of marketability for a variety of underlying securities triggered the conservatorship when it became clear the liability to the reserve fund that backs credit unions had risen sharply to an estimated $5.9 billion from $4.7 billion, officials said.&lt;/p&gt;

&lt;p&gt;Marla Marsh, chief executive of the Kansas Credit Union Association, whose members are among those relying in part on U.S. Central, called the takeover a &quot;stabilizing maneuver.&quot;&lt;/p&gt;

&lt;p&gt;She said U.S. credit unions generally remained healthy, well-capitalized and eager to lend.&lt;/p&gt;

&lt;p&gt;&quot;The corporate system has the strain on its liquidity and capital due to the credit market fluctuations, but we still remain overall healthy and sound,&quot; she said. &quot;We continue to be a safe place for consumers to use for lending and savings.&quot;&lt;/p&gt;

&lt;p&gt;John Kutchey, deputy director of the office of examination for the NCUA, said U.S. Central's mortgage securities were for the most part well-rated. The blame for the credit union woes were due more to market woes than mismanagement, he said.&lt;/p&gt;

&lt;p&gt;&quot;The downward spiral in real estate values is really the core issue that led to the decline in value and performance of the mortgage-backed securities,&quot; he said.&lt;/p&gt;

&lt;p&gt;Morton said the NCUA was not planning to inject additional funds into U.S. Central but cited the need to increase the reserve fund, which helps back U.S. Central assets and is funded by member credit unions.&lt;/p&gt;

&lt;p&gt;NCUA moved in January to guarantee $80 billion that U.S. credit unions have on deposit in the corporate network, a move considered a bailout of the U.S. credit union network.&lt;/p&gt;

&lt;p&gt;(Editing by Peter Bohan and Xavier Briand)&lt;/p&gt;</media:text>
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<title>AIG protesters take Connecticut bus tour</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K22720090321</link>
<pubDate>Sat, 21 Mar 2009 16:20:32 -0600</pubDate>
<description><![CDATA[WILTON, Connecticut (Reuters) - A bus tour to the Connecticut homes of AIG executives organized by a small party of activists angered by bonuses paid to staff of the bailed-out insurer drew more reporters than protesters on Saturday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Phil Wahba&lt;/p&gt;

&lt;p&gt;WILTON, Connecticut (Reuters) - A bus tour to the Connecticut homes of AIG executives organized by a small party of activists angered by bonuses paid to staff of the bailed-out insurer drew more reporters than protesters on Saturday.&lt;/p&gt;

&lt;p&gt;In the tour, dubbed &quot;Lifestyles of the Rich and Infamous,&quot; protesters took a bus that picked up passengers in Hartford and Bridgeport for a 2-1/2 hour trip to see the swanky homes of American International Group executives in exclusive Fairfield County and to AIG's Wilton offices.&lt;/p&gt;

&lt;p&gt;The event was organized by Connecticut Working Families, a small liberal political party.&lt;/p&gt;

&lt;p&gt;&quot;It's been one outrage after another,&quot; said protester Aaron Goode, a 26-year-old archivist at Yale University. &quot;AIG is a symptom but not the only source of the problem.&quot;&lt;/p&gt;

&lt;p&gt;AIG has become a lightning rod for populist anger for giving out $220 million in bonuses, including those paid in December, to some executives after the company got a $180 billion government bailout to save it from collapse.&lt;/p&gt;

&lt;p&gt;&quot;The outcry stems from the idea that taxpayers are paying for bonuses for executives whose chief accomplishments ruined their company,&quot; said Jon Green, the party's executive director.&lt;/p&gt;

&lt;p&gt;Protesters originally planned to deliver letters asking the executives to return the money. But after it was reported that AIG employees whose homes were on the tour would return their money, they instead asked for support for anti-home foreclosure and anti-poverty measures.&lt;/p&gt;

&lt;p&gt;Protesters trying to deliver the letters at two of the executives' homes were met by private security guards.&lt;/p&gt;

&lt;p&gt;An officer stationed at an executive's Colonial house at the end of a cul-de-sac in Fairfield said police had expected a much larger group.&lt;/p&gt;

&lt;p&gt;The head of AIG, Edward Liddy, at a congressional hearing on Wednesday said some AIG executives had received death threats and he had concerns for employees' safety.&lt;/p&gt;

&lt;p&gt;Including people working for the organizers, there were about 40 protesters on the bus, though more activists showed up at the last stop, AIG's Wilton offices.&lt;/p&gt;

&lt;p&gt;Activists appeared to be there for a variety of reasons.&lt;/p&gt;

&lt;p&gt;&quot;It seemed like a fun thing to do,&quot; said Brian Mills, a 23-year-old student, before an organizer shooed away reporters, telling them to speak with &quot;designated speakers.&quot;&lt;/p&gt;

&lt;p&gt;The protest displayed the feeling of siege felt in wealthy Fairfield County after AIG's bonuses became a symbol of Wall Street excess.&lt;/p&gt;

&lt;p&gt;One resident, who declined to give her name but said her husband was a well paid financial executive, was shaken to see the busload of people descend on her neighbor's home overlooking Long Island Sound.&lt;/p&gt;

&lt;p&gt;&quot;It's very hard to see people who've made such a contribution to our community singled out,&quot; the woman said. &quot;Why don't they single out people who took out mortgages they couldn't afford?&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Phil Wahba, editing by Vicki Allen)&lt;/p&gt;</media:text>
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<title>Britain says receives video of Iraq hostage</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K1SU20090321</link>
<pubDate>Sat, 21 Mar 2009 14:38:56 -0600</pubDate>
<description><![CDATA[LONDON (Reuters) - A video featuring one of five Britons taken hostage in Iraq almost two years ago has been handed to British officials, they said on Saturday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;LONDON (Reuters) - A video featuring one of five Britons taken hostage in Iraq almost two years ago has been handed to British officials, they said on Saturday.&lt;/p&gt;

&lt;p&gt;The Britons, a computer instructor -- Peter Moore -- and his four bodyguards, were seized by a Shi'ite militant group from inside an Iraqi Finance Ministry building in a raid in Baghdad in May 2007.&lt;/p&gt;

&lt;p&gt;&quot;We can confirm that we have received a video of one of the British hostages taken in 2007,&quot; a Foreign Office spokeswoman said. &quot;We continue to work actively for the safe release of all the hostages.&quot;&lt;/p&gt;

&lt;p&gt;The spokeswoman would not confirm any details of what was on the video, or when and how it had been received.&lt;/p&gt;

&lt;p&gt;However, Channel 4 news, citing an unidentified source, said the footage featured Moore, who appeared healthy, and who said he and the other men were well.&lt;/p&gt;

&lt;p&gt;There has been no official news of the captives for more than a year, and last July British Prime Minister Gordon Brown said he was taking seriously a claim by Iraqi militants that one of the hostages had killed himself.&lt;/p&gt;

&lt;p&gt;In February 2008, a video featuring Moore, who appeared tired but not distressed, was aired by Dubai-based Al Arabiya television in which he called on Brown to free nine Iraqis in return for their freedom.&lt;/p&gt;

&lt;p&gt;An earlier video, released in December 2007, showed another of the captives who identified himself as Jason saying the militants holding the Britons would kill one of the five unless Britain withdrew its troops from Iraq.&lt;/p&gt;

&lt;p&gt;Britain has barely 2,000 soldiers left in the country and all of them will be out by June.&lt;/p&gt;

&lt;p&gt;(Reporting by Michael Holden; Editing by Louise Ireland)&lt;/p&gt;</media:text>
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<title>Obama sticks to budget, sees room for compromise</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52G3OX20090321</link>
<pubDate>Sat, 21 Mar 2009 12:45:57 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama vowed on Saturday to stick to the big-ticket items in his budget proposal but acknowledged that dollar amounts would "undoubtedly change" as Congress prepared to take up his record spending plan.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Matt Spetalnick&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama vowed on Saturday to stick to the big-ticket items in his budget proposal but acknowledged that dollar amounts would &quot;undoubtedly change&quot; as Congress prepared to take up his record spending plan.&lt;/p&gt;

&lt;p&gt;Obama also stepped up his defense of his Treasury Secretary Timothy Geithner, who has been under fire for failing to block millions of dollars in bonuses to employees of American International Group, which received billions in government aid.&lt;/p&gt;

&lt;p&gt;Obama told CBS network's &quot;60 Minutes&quot; program, in an interview to be broadcast on Sunday, that neither he nor Geithner had discussed the possibility of the Treasury secretary's resignation.&lt;/p&gt;

&lt;p&gt;But Obama, who has repeatedly defended Geithner's handling of the AIG bonus scandal this week, said that if Geithner tried to resign, he would tell him: &quot;Sorry buddy, you've still got the job.&quot;&lt;/p&gt;

&lt;p&gt;Trying to refocus attention from the AIG bonus scandal that has drawn public outrage, Obama in his weekly radio address defended his $3.55 trillion budget for fiscal 2010, a linchpin of his efforts to rescue the ailing economy from the worst crisis in decades.&lt;/p&gt;

&lt;p&gt;&quot;It's an economic blueprint for our future, a vision of America where growth is not based on real estate bubbles or over-leveraged banks, but on a firm foundation of investments in energy, education and health care that will lead to a real and lasting prosperity,&quot; Obama said.&lt;/p&gt;

&lt;p&gt;The budget committees of the Senate and House of Representatives were set to begin crafting their budget legislation next week.&lt;/p&gt;

&lt;p&gt;COSTLY BUDGET&lt;/p&gt;

&lt;p&gt;Republicans and even some of Obama's fellow Democrats who control Congress have complained that his budget, the first of his presidency, is too costly. It projects deficits of $1.75 trillion this fiscal year and $1.17 trillion next fiscal year.&lt;/p&gt;

&lt;p&gt;Congressional budget experts on Friday offered a darker economic and budget outlook, projecting a $1.8 trillion deficit this year which could complicate Obama's efforts to win passage of his 2010 budget.&lt;/p&gt;

&lt;p&gt;Taking on his critics, Obama said: &quot;These investments are not a wish list of priorities that I picked out of thin air.&lt;/p&gt;

&lt;p&gt;&quot;They are a central part of a comprehensive strategy to grow this economy by attacking the very problems that have dragged it down for too long: the high cost of health care and our dependence on foreign oil, our education deficit and our fiscal deficit.&quot;&lt;/p&gt;

&lt;p&gt;Reminding listeners that he had inherited a &quot;fiscal mess&quot; from his Republican predecessor, George W. Bush, Obama -- who took office on January 20 -- reiterated his pledge to cut the federal deficit in half by the end of his term.&lt;/p&gt;

&lt;p&gt;But he acknowledged room for compromise on a final budget deal. &quot;As the House and the Senate take up this budget next week, the specific details and dollar amounts in this budget will undoubtedly change,&quot; Obama said. &quot;That's a normal and healthy part of the process.&lt;/p&gt;

&lt;p&gt;He urged lawmakers to act with a sense of urgency, saying &quot;the challenges we face are too large to ignore.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by Ross Colvin, editing by Vicki Allen)&lt;/p&gt;</media:text>
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<title>Obama says would not accept Geithner resignation</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K1MI20090321</link>
<pubDate>Sat, 21 Mar 2009 12:16:14 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama said he would not accept Treasury Secretary Timothy Geithner's resignation if it was offered, according to excerpts from a television interview to be broadcast on Sunday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama said he would not accept Treasury Secretary Timothy Geithner's resignation if it was offered, according to excerpts from a television interview to be broadcast on Sunday.&lt;/p&gt;

&lt;p&gt;Obama said he would tell Geithner: &quot;Sorry buddy you've still got the job.&quot; The Treasury secretary has been under fire from some lawmakers for his handling of the AIG bonus scandal.&lt;/p&gt;

&lt;p&gt;U.S. television network CBS, which secured the interview, said Obama told its &quot;60 Minutes&quot; program that neither he nor Geithner had mentioned his resignation from his Treasury post.&lt;/p&gt;

&lt;p&gt;(Reporting by Ross Colvin; Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>Washington Mutual sues FDIC for over $13 billion</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K1K620090321</link>
<pubDate>Sat, 21 Mar 2009 11:49:55 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Washington Mutual Inc, the failed U.S. savings and loan, has sued the Federal Deposit Insurance Corp for well over $13 billion in connection with the loss of its banking operations, which was acquired by JPMorgan Chase &amp; Co.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - Washington Mutual Inc, the failed U.S. savings and loan, has sued the Federal Deposit Insurance Corp for well over $13 billion in connection with the loss of its banking operations, which was acquired by JPMorgan Chase &amp;amp; Co.&lt;/p&gt;

&lt;p&gt;In a complaint filed with the U.S. District Court for the District of Columbia, the thrift's former parent accused the FDIC of having on January 23 made a &quot;cryptic disallowance&quot; of its claims, prompting the lawsuit.&lt;/p&gt;

&lt;p&gt;It also accused the FDIC of agreeing to an unreasonably low price in arranging the a $1.9 billion sale of the banking business to JPMorgan on September 25, when regulators seized Washington Mutual and appointed the FDIC as receiver.&lt;/p&gt;

&lt;p&gt;JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.&lt;/p&gt;

&lt;p&gt;In its complaint, Washington Mutual seeks to recover as much as $6.5 billion of capital contributions it said it made to its banking unit from December 2007 through the seizure.&lt;/p&gt;

&lt;p&gt;Washington Mutual also seeks the return of $4 billion of trust preferred securities it said were wrongfully transferred to the banking unit, and said it may be entitled to as much as $3 billion of tax refunds. It also seeks damages of $177.1 million related to unpaid loans made to the banking unit.&lt;/p&gt;

&lt;p&gt;The company also made claims on several other matters that together could add to any recovery. Washington Mutual is seeking a jury trial.&lt;/p&gt;

&lt;p&gt;In the January 23 letter, the FDIC said it disallowed Washington Mutual's claims because they lacked documentation or specificity, failed to state grounds to recover, appeared to be made against third parties, or had no legal basis.&lt;/p&gt;

&lt;p&gt;FDIC spokesman David Barr said the regulator does not comment on lawsuits.&lt;/p&gt;

&lt;p&gt;Seattle-based Washington Mutual failed after mortgage losses soared, and following a 10-day bank run when customers withdrew $16.7 billion of deposits. It had about $307 billion of assets, and remains by far the largest U.S. lender to fail.&lt;/p&gt;

&lt;p&gt;The parent is seeking to pay off creditors with amounts it recovers in the Chapter 11 proceedings.&lt;/p&gt;

&lt;p&gt;The case is Washington Mutual Inc v. Federal Deposit Insurance Corp, U.S. District Court for the District of Columbia, No. 09-00533.&lt;/p&gt;

&lt;p&gt;(Reporting by Jonathan Stempel, additional reporting by Karey Wutkowski in Washington, D.C., Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>AIG traders richly rewarded as rivals pay slashed</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K1FS20090321</link>
<pubDate>Sat, 21 Mar 2009 10:44:25 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Employees at the center of American International Group Inc's financial debacle got lavish million-dollar pay packages, including retention bonuses, even as rivals had to tighten their belts.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Lilla Zuill - Analysis&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Employees at the center of American International Group Inc's financial debacle got lavish million-dollar pay packages, including retention bonuses, even as rivals had to tighten their belts.&lt;/p&gt;

&lt;p&gt;The rich compensation has ignited fury across America.&lt;/p&gt;

&lt;p&gt;With millions out of work, many question why taxpayers should foot the $180 billion tab for AIG's bailout if the traders who made bad bets can take home $1 million checks.&lt;/p&gt;

&lt;p&gt;AIG says the money was needed to keep employees in its financial products unit, to unwind complicated derivatives contracts. But Wall Street recruiters say the market for such talent is soft.&lt;/p&gt;

&lt;p&gt;Derivatives traders are typically well rewarded, and AIG financial products traders were among the best paid in the business. But as the firm racked up $11 billion in paper losses in the fourth quarter of 2007, many must have worried that the big bucks would evaporate.&lt;/p&gt;

&lt;p&gt;Instead, their bosses agreed to freeze compensation levels, ensuring they wouldn't earn any less, according to documents posted on the Web by the U.S. lawmakers at: http://www.house.gov/apps/list/press/financialsvcs_dem/press031809.shtml&lt;/p&gt;

&lt;p&gt;It was a starkly different picture at some other firms, according to hiring firms. The average salary and bonus for derivatives traders at the vice-president level fell as much as 50 percent last year to between $400,000 and $600,000, according to Options Group data.&lt;/p&gt;

&lt;p&gt;The company paid $220 million in 2008 retention bonuses to about 400 employees. The awards were not divided evenly, but at least 18 percent of the group got $1 million or more each, in addition to base salary.&lt;/p&gt;

&lt;p&gt;AIG, once the world's largest insurer, said it needed to prevent an exodus of traders after losses in a credit default swaps portfolio were discovered, avoiding a gap in oversight for the firm's then-$2.7 trillion in trading positions.&lt;/p&gt;

&lt;p&gt;The argument is hard for many to swallow.&lt;/p&gt;

&lt;p&gt;SKEPTICS&lt;/p&gt;

&lt;p&gt;&quot;What are you retaining them for? The model is broken. It'll eventually be reinvented, but not tomorrow, and in the mean time you have very very highly paid people sitting around making little animals with paperclips,&quot; said Christopher Low, chief economist at FTN Financial.&lt;/p&gt;

&lt;p&gt;Low acknowledged that the employees could help with the unwinding of the FP unit's derivative contracts, but said, &quot;I don't think you need a full staff for that.&quot;&lt;/p&gt;

&lt;p&gt;Then there is the thorny issue of why AIG agreed to pay top dollar to keep traders even though it appears many would have been hard put to quickly find jobs elsewhere.&lt;/p&gt;

&lt;p&gt;&quot;Demand is not as hot as usual,&quot; said Michael Karp, Chief Executive of the Options Group, a Wall Street recruiting and compensation firm. It takes longer for traders to find new jobs, with firms more cautious about making salary and bonus commitments, Karp added.&lt;/p&gt;

&lt;p&gt;Paul Sorbera, president of Alliance Consulting, a financial-executive recruitment firm, said there has also been contraction in the sector.&lt;/p&gt;

&lt;p&gt;&quot;There have been some lay-offs, and some have underperformed and been let go,&quot; he said, adding that a strong performance record stands for a lot right now.&lt;/p&gt;

&lt;p&gt;Still, there may be some truth to AIG's assertion that it could have been in a pickle without its traders -- at least until the books of trades they oversaw were unwound, limiting the chance they could take proprietary information to another firm and possibly use it to bet against the $1.6 trillion in trades still held by AIG.&lt;/p&gt;

&lt;p&gt;&quot;What are you going to do, let everyone walk out the door?,&quot; said Sorbera. &quot;Some of them (traders) would have been uniquely qualified to the organization, they know a lot of the legacy issues with the portfolios, so their is value in the firm keeping them around,&quot; he added.&lt;/p&gt;

&lt;p&gt;DODGING PICKETERS&lt;/p&gt;

&lt;p&gt;After this week, traders at AIG may have more reason to leave than stay. The group, as of last month, employed about 370 in offices in Connecticut, London, Paris, Hong Kong, Tokyo and India.&lt;/p&gt;

&lt;p&gt;Under pressure from Capitol Hill, AIG Chief Executive Edward Liddy this week asked many recipients to return at least half the value of the awards. Many have also been asked to take sharp cuts in compensation for 2009.&lt;/p&gt;

&lt;p&gt;The U.S. House of Representatives also voted to reclaim 90 percent of the bonuses already paid by levying a special tax. Similar legislation is to be considered in the Senate.&lt;/p&gt;

&lt;p&gt;Workers at AIG Financial Products' Wilton, Connecticut-headquarters have also come in for ridicule and scorn, having to dodge picketers outside the workplace. Others have received death threats, CEO Liddy said earlier this week.&lt;/p&gt;

&lt;p&gt;It may only get uglier. Working Families of Connecticut, a political party, is planning a bus tour on Saturday that will take demonstrators past the homes of financial products employees.&lt;/p&gt;

&lt;p&gt;Billed the &quot;Lifestyles of the rich and famous,&quot; the group says the field trip is intended to send the message that &quot;We're all mad at AIG.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Lilla Zuill; additional reporting by Kristina Cooke; Editing by Tim Dobbyn)&lt;/p&gt;</media:text>
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<title>Treasury to unveil bank rescue bid soon</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K1F520090321</link>
<pubDate>Sat, 21 Mar 2009 10:41:25 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. government will roll out next week a three-pronged bid to cleanse the U.S. financial system of "toxic" assets clogging banks' balance sheets, a source familiar with the plan said on Saturday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Karey Wutkowski&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The U.S. government will roll out next week a three-pronged bid to cleanse the U.S. financial system of &quot;toxic&quot; assets clogging banks' balance sheets, a source familiar with the plan said on Saturday.&lt;/p&gt;

&lt;p&gt;The plan, a cornerstone of the Obama administration's costly attack on the credit crisis, will aim to attract private investors by offering abundant loans and generous terms.&lt;/p&gt;

&lt;p&gt;Its architect, Treasury Secretary Timothy Geithner, is under huge pressure after providing such a scanty outline of the plan last month that bank stocks slumped and triggered fears that some U.S. lenders might be nationalized.&lt;/p&gt;

&lt;p&gt;But with fury raging among U.S. lawmakers over bonuses to employees of American International Group when it is receiving huge amounts of bailout money, it is unclear how willing private investors will be to work with the government.&lt;/p&gt;

&lt;p&gt;Federal Reserve Chairman Ben Bernanke underlined the critical need to restore stability to the banking system, warning in a television interview last Sunday that he feared political and public will to do so was flagging.&lt;/p&gt;

&lt;p&gt;&quot;In which case, we can't count on recovery,&quot; he said.&lt;/p&gt;

&lt;p&gt;The new plan for cleaning up bank balance sheets is set to come shortly after another big move by the Fed to fight the economic crisis head-on.&lt;/p&gt;

&lt;p&gt;The central bank said it would pump more than $1 trillion into the U.S. economy by buying debt, on top of a nearly $800 billion stimulus plan by the Obama administration.&lt;/p&gt;

&lt;p&gt;LOTS OF LOANS&lt;/p&gt;

&lt;p&gt;The new plan will include setting up an entity to be used by the Federal Deposit Insurance Corp -- the main U.S. banking regulator -- to offer low-interest loans to private interests for buying up banks' soured assets, many of which are tied to mortgages and have tumbled in value, the source said.&lt;/p&gt;

&lt;p&gt;Second, the Treasury Department will hire investment managers to run public-private funds to invest for potential profit in troubled mortgages, with government capital matching private capital contributions, according to the source.&lt;/p&gt;

&lt;p&gt;Finally, the Federal Reserve will expand its new consumer loan-focused $1 trillion Term Asset-Backed Securities Loan Facility to buy &quot;legacy&quot; assets, the source said.&lt;/p&gt;

&lt;p&gt;Legacy assets are older securities, many of them tied to mortgage assets that have plunged in value after housing prices fell and have racked up massive losses for the banking system.&lt;/p&gt;

&lt;p&gt;With credit now so tight, the U.S. economy has plunged into a deep and potentially long recession.&lt;/p&gt;

&lt;p&gt;The Obama administration plans to contribute between $75 billion and $100 billion in new capital to the effort, although that amount could be expanded, The Wall Street Journal said.&lt;/p&gt;

&lt;p&gt;The toxic asset plan -- seen as vital to clear the way for the resumption of normal lending -- will seek to enlist private-sector support at an especially tough time.&lt;/p&gt;

&lt;p&gt;The past week has seen uproar in Congress and the media over bonuses paid by publicly rescued AIG. Analysts warn that may make hedge fund managers and other managers of private wealth skittish about getting involved with the government.&lt;/p&gt;

&lt;p&gt;ANGER OFF THE LEASH&lt;/p&gt;

&lt;p&gt;&quot;Congress is a rat's nest of grandstanding right now,&quot; said Jack Ablin, chief investment officer with Harris Private Bank in Chicago. &quot;If Congress continues to dig its heels in, it will contribute to the destabilization of the financial system.&quot;&lt;/p&gt;

&lt;p&gt;It remained unclear when Geithner, under fire himself for his role in failing to block AIG bonuses, will roll out his toxic asset plan. The Wall Street Journal said it could come as soon as Monday, but Treasury officials would not confirm that.&lt;/p&gt;

&lt;p&gt;Indications were that Treasury would like to see the furor over AIG bonuses die down first.&lt;/p&gt;

&lt;p&gt;A Senate aide told Reuters that Treasury officials had been consulting with lawmakers on the bonus legislation, trying to make it less restrictive so it would not scare companies away from taking part in bailouts and hedge funds from participating in the plan to buy up toxic assets.&lt;/p&gt;

&lt;p&gt;Legislation taxing AIG bonuses passed the House this week. The Senate is expected to take up its version next week.&lt;/p&gt;

&lt;p&gt;California Democratic Representative Brad Sherman, who sits on the House Financial Services Committee, was skeptical of the toxic asset plan.&lt;/p&gt;

&lt;p&gt;&quot;It looks like a scheme in which the taxpayer takes all the risk and the hedge funds get almost all the profits,&quot; Sherman told Reuters, adding it was not surprising the proposals were framed in such a way that they need not be put to a vote.&lt;/p&gt;

&lt;p&gt;&quot;I don't think Congress would vote for that,&quot; he said. &quot;I think Wall Street would vote for that.&quot;&lt;/p&gt;

&lt;p&gt;Geithner came under fire for not doing more to stop the bonus payments, obliging President Barack Obama to come to his defense twice in the past week -- doing so again in an interview to be shown on &quot;60 Minutes&quot; on Sunday.&lt;/p&gt;

&lt;p&gt;Obama said in the interview that if Geithner tried to offer his resignation, he would tell him, &quot;Sorry buddy, you've still got the job,&quot; according to transcripts of the interview.&lt;/p&gt;

&lt;p&gt;(Reporting by Karey Wutkowski, with additional reporting by Rachelle Younglai, Kevin Drawbaugh, Susan Cornwell and Richard Leong in New York, writing by Glenn Somerville; Editing by Vicki Allen and Peter Cooney)&lt;/p&gt;</media:text>
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<title>U.S. hands almost all Sunni guards to Iraqi control</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K1EU20090321</link>
<pubDate>Sat, 21 Mar 2009 10:36:53 -0600</pubDate>
<description><![CDATA[BAGHDAD (Reuters) - Almost 90 percent of the tens of thousands of U.S.-backed fighters who helped purge much of Iraq of al Qaeda have been transferred to Iraqi control, the U.S. commander in charge of their program said Saturday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Tim Cocks&lt;/p&gt;

&lt;p&gt;BAGHDAD (Reuters) - Almost 90 percent of the tens of thousands of U.S.-backed fighters who helped purge much of Iraq of al Qaeda have been transferred to Iraqi control, the U.S. commander in charge of their program said Saturday.&lt;/p&gt;

&lt;p&gt;Major General Mike Ferriter told journalists around 84,000 members of predominantly Sunni Arab &quot;Awakening Councils&quot; -- neighborhood guard units that were paid by the U.S. military to fight militants -- were handed to Iraqi government authority and thousands of those had since left the program for other work.&lt;/p&gt;

&lt;p&gt;Only about 10,000, all in the northern province of Salahuddin, remained to be handed over in the coming months.&lt;/p&gt;

&lt;p&gt;Putting the guards, many of whom were once insurgents who switched sides, on the payroll of a government they once fought is seen as a major test of reconciliation as the United States prepares to pull its combat troops out of Iraq by August 31, 2010.&lt;/p&gt;

&lt;p&gt;&quot;The eyes of the world are on you, Iraq, and it's the opportunity to prove that you're going to pull it together...in spite of the many, many doubts,&quot; Ferriter said.&lt;/p&gt;

&lt;p&gt;Called Awakening Councils or &quot;Sahwa&quot; in Arabic, the units led mostly by Sunni Arab tribal sheikhs began turning against al Qaeda militants two years ago in western Iraq's Anbar province, providing a model that was rolled out nationwide.&lt;/p&gt;

&lt;p&gt;The guards had been receiving roughly $300 a month from the U.S. military, paid through local tribal sheikhs. In October, the Iraqi government started paying roughly 50,000 in Baghdad.&lt;/p&gt;

&lt;p&gt;Since then, the northern provinces of Diyala, Kirkuk and Nineveh, the southern Shi'ite provinces of Wasit, Babil and Qadasiya, and in the west, Anbar, have been ceded to the Iraqi government, which will start paying salaries in these provinces at different times between now and May, Ferriter said.&lt;/p&gt;

&lt;p&gt;Many former insurgents in the program have feared arrest. Others feared being abandoned by the government, which has promised jobs in its security forces for a fifth of Sahwa members but says it will find civilian work or training for the rest.&lt;/p&gt;

&lt;p&gt;Ferriter said the program had defied gloomy predictions and Shi'ite Prime Minister Nuri al-Maliki had kept his word not to detain ex-insurgents or pursue vendettas against them.&lt;/p&gt;

&lt;p&gt;&quot;A lot of concerns that we've heard...have not come to fruition,&quot; he said. &quot;The concern that...they'd be disbanded or wouldn't get paid or be arrested...haven't occurred.&quot;&lt;/p&gt;

&lt;p&gt;Questions remain over their long term future. Iraq is committed to finding jobs for the four fifths who do not get into the security forces, but so far only the Education and Health ministries have vacancies, for 10,000 and 3,000, respectively.&lt;/p&gt;

&lt;p&gt;The police have taken in 5,000 so far and the army, 500.&lt;/p&gt;

&lt;p&gt;But Ferriter was upbeat. &quot;It'll take 6 to 7 months to complete the job transition and I predict success,&quot; he said.&lt;/p&gt;</media:text>
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<title>AIG bonus payments $218 million</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K19L20090321</link>
<pubDate>Sat, 21 Mar 2009 10:06:12 -0600</pubDate>
<description><![CDATA[CHICAGO (Reuters) - Documents turned over to the Connecticut attorney general show that American International Group Inc paid out over $218 million in bonuses, more than the previously disclosed $165 million, published reports said on Saturday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;CHICAGO (Reuters) - Documents turned over to the Connecticut attorney general show that American International Group Inc paid out over $218 million in bonuses, more than the previously disclosed $165 million, published reports said on Saturday.&lt;/p&gt;

&lt;p&gt;The reports said the documents were turned over to Attorney General Richard Blumenthal's office late on Friday in response to a subpoena.&lt;/p&gt;

&lt;p&gt;The documents show that bonuses of at least $1 million were paid to 73 people, and five received more than $4 million.&lt;/p&gt;

&lt;p&gt;The giant insurance company has been widely criticized for granting bonuses after receiving federal bailout funds exceeding $180 billion.&lt;/p&gt;

&lt;p&gt;(Reporting by Jim Marshall, editing by Alan Elsner)&lt;/p&gt;</media:text>
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<title>U.S. backs Danish PM as next NATO chief: diplomats</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K1CC20090321</link>
<pubDate>Sat, 21 Mar 2009 10:03:24 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - The United States has told NATO allies it will back Danish Prime Minister Anders Fogh Rasmussen as the next head of the alliance, NATO diplomats and a U.S. source said on Saturday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By David Brunnstrom&lt;/p&gt;

&lt;p&gt;BRUSSELS (Reuters) - The United States has told NATO allies it will back Danish Prime Minister Anders Fogh Rasmussen as the next head of the alliance, NATO diplomats and a U.S. source said on Saturday.&lt;/p&gt;

&lt;p&gt;Rasmussen already has the support of European heavyweights Germany, Britain and France for the post of NATO secretary-general, but Washington had been considering backing Canadian Defense Minister Peter MacKay.&lt;/p&gt;

&lt;p&gt;A U.S. source close to the administration of President Barack Obama said Washington had indicated its acceptance of Rasmussen after U.S. National Security Adviser General James Jones this month went to Denmark to visit him.&lt;/p&gt;

&lt;p&gt;Rasmussen's spokesman Michael Ulveman said the Prime Ministry had &quot;no comments whatsoever&quot; on speculation the U.S. had decided to back the Rasmussen for the job.&lt;/p&gt;

&lt;p&gt;Two senior NATO diplomats confirmed Washington had signaled to allies its acceptance of Rasmussen.&lt;/p&gt;

&lt;p&gt;&quot;There seems to be a general coalescence around Rasmussen,&quot; said one, adding that an announcement was expected at the April 3-4 NATO summit. The current secretary-general, Dutchman Jaap de Hoop Scheffer, steps down on July 31.&lt;/p&gt;

&lt;p&gt;Another NATO diplomat said Rasmussen's appointment still needed the backing of all 26 NATO allies -- including mostly Muslim Turkey, which has voiced misgivings over Rasmussen linked to the row over a cartoon in a Danish newspaper in 2006 depicting the Prophet Mohammad with a bomb in his turban.&lt;/p&gt;

&lt;p&gt;A senior NATO source predicted there would be no problems. &quot;Turkey doesn't want to be in a minority of one,&quot; the source said.&lt;/p&gt;

&lt;p&gt;Rasmussen refused to apologize for the cartoons, which sparked riots and attacks on Danish embassies in several Muslim states, but which Western governments defended in the name of freedom of expression.&lt;/p&gt;

&lt;p&gt;Rasmussen, 56, in office since 2001, has the reputation of a competent and focused leader who gets things done.&lt;/p&gt;

&lt;p&gt;In 2003, when Denmark held the EU presidency, he hammered out a deal on membership for 10 new states, mostly from ex-communist central and eastern Europe.&lt;/p&gt;

&lt;p&gt;He backed the 2003 invasion of Iraq, sent Danish troops there and has urged NATO members to send more troops to Afghanistan, where 750 Danish soldiers are fighting the Taliban.&lt;/p&gt;

&lt;p&gt;Analysts believe Rasmussen would try to steer NATO to work more closely with the EU and the United Nations.&lt;/p&gt;

&lt;p&gt;Other contenders for a post which traditionally goes to a European include Polish Foreign Minister Radoslaw Sikorski, Norwegian Foreign Minister Jonas Gahr Stoere and former British Defense Secretary Des Browne.&lt;/p&gt;

&lt;p&gt;Speaking at a security conference in Brussels on Saturday, Sikorski said NATO should consider an eastern European for the post now that former Soviet bloc states had been in NATO for a decade.&lt;/p&gt;

&lt;p&gt;He said this would help improve NATO's relations with Russia, though analysts say appointing an eastern European could in fact hamper NATO efforts to patch up ties with Russia damaged by Moscow's intervention in Georgia last year.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Paul Taylor; editing by Mark John and Tim Pearce)&lt;/p&gt;</media:text>
</item>
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<title>Thousands mourn victims of German school attack</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K15D20090321</link>
<pubDate>Sat, 21 Mar 2009 07:57:09 -0600</pubDate>
<description><![CDATA[WINNENDEN, Germany (Reuters) - President Horst Koehler led thousands of Germans on Saturday at an emotional remembrance service in this usually sleepy town for the victims of a school massacre that left 16 dead.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Hendrik Sackmann&lt;/p&gt;

&lt;p&gt;WINNENDEN, Germany (Reuters) - President Horst Koehler led thousands of Germans on Saturday at an emotional remembrance service in this usually sleepy town for the victims of a school massacre that left 16 dead.&lt;/p&gt;

&lt;p&gt;Ten days ago, 17-year-old student Tim Kretschmer shot dead 12 people at his former school in Winnenden and three more outside before killing himself when he was cornered by police.&lt;/p&gt;

&lt;p&gt;&quot;Such acts lead us to the limit of comprehension,&quot; Koehler told the service in a packed church, his voice shaking with emotion. &quot;But so long as we can stick with and help each other, we are not helpless.&quot;&lt;/p&gt;

&lt;p&gt;&quot;The whole of Germany is grieving with you,&quot; he added, visibly struggling to hold back tears. &quot;You are not alone.&quot;&lt;/p&gt;

&lt;p&gt;Schoolmates of the victims lit candles bearing their names at the service, which was broadcast for thousands to see at a nearby stadium, and also carried live on national television.&lt;/p&gt;

&lt;p&gt;The families of five schoolgirls killed in the attack wrote to Koehler, Chancellor Angela Merkel and their state premier calling for curbs on young people's access to weapons, a ban on violent video games and less violence on television.&lt;/p&gt;

&lt;p&gt;&quot;We will wonder our whole lives why this struck our loved ones, and how this act was able to come about at all,&quot; they wrote in the open letter published in their local newspaper.&lt;/p&gt;

&lt;p&gt;Investigators have said they found violent video games on Kretschmer's computer.&lt;/p&gt;

&lt;p&gt;&quot;We must all look at what we can do better in the future, what lessons we can draw from this,&quot; Koehler said in his address.&lt;/p&gt;

&lt;p&gt;He said it was up to not only the state but also individuals to question what films they watched or games they played, and what example they set for their children and fellow citizens.&lt;/p&gt;

&lt;p&gt;People in the stadium cried as they looked up at big screens carrying a broadcast of the church ceremony.&lt;/p&gt;

&lt;p&gt;Wilhelm Ackermann said he knew one of the victims: &quot;She was friends with us and used to come to our house,&quot; he said. &quot;That's why I am here; to say goodbye to her.&quot;&lt;/p&gt;

&lt;p&gt;The attack led to soul searching in Germany about how such a massacre could take place, just seven years after another school bloodbath. Merkel has called for greater supervision of gun laws, which some politicians have said should be tightened.&lt;/p&gt;

&lt;p&gt;Germany toughened its gun laws in 2002 after 19-year-old Robert Steinhauser shot dead 16 people, mainly teachers, and himself at a high school in the eastern city of Erfurt.&lt;/p&gt;

&lt;p&gt;Kretschmer, who had been under treatment for depression, shot many of his victims in the head with his father's legally registered Beretta.&lt;/p&gt;

&lt;p&gt;His father, a member of a shooting club, had 15 guns at home. Fourteen were locked in a gun cupboard as required by law but the Beretta was in the bedroom, officials have said.&lt;/p&gt;

&lt;p&gt;(Writing by Paul Carrel, editing by Tim Pearce)&lt;/p&gt;</media:text>
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<title>U.S. plans major Afghan police boost: Holbrooke</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K13Q20090321</link>
<pubDate>Sat, 21 Mar 2009 07:26:04 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - President Barack Obama plans a significant increase in the size of the Afghan police force, U.S. special representative for Afghanistan and Pakistan Richard Holbrooke said on Saturday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By David Brunnstrom&lt;/p&gt;

&lt;p&gt;BRUSSELS (Reuters) - President Barack Obama plans a significant increase in the size of the Afghan police force, U.S. special representative for Afghanistan and Pakistan Richard Holbrooke said on Saturday.&lt;/p&gt;

&lt;p&gt;Holbrooke said the Obama administration's initial plan to help boost Afghan police numbers from 78,000 to 82,000 over the next three to four years was now regarded as inadequate.&lt;/p&gt;

&lt;p&gt;&quot;Everyone we talked to without exception -- Afghans, insurgency experts, the government, American military -- agreed that was not sufficient,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;So we are looking in conjunction with our allies and friends in the Afghan government at a very significant increase,&quot; he told a security conference in Brussels.&lt;/p&gt;

&lt;p&gt;&quot;The police aren't very good right now. We know they are the weak link in the security chain,&quot; he added. &quot;We need to increase the number, increase the quality and increase the training.&quot;&lt;/p&gt;

&lt;p&gt;Holbrooke said figures cited by the New York Times of a combined goal of about 400,000 Afghan troops and police officers were &quot;speculative&quot; and Obama had yet to finalize the numbers.&lt;/p&gt;

&lt;p&gt;International efforts so far to train the Afghan police force are widely considered as insufficient.&lt;/p&gt;

&lt;p&gt;POLICY REVIEW&lt;/p&gt;

&lt;p&gt;U.S. officials said last week the Obama administration was weighing several options as part of a policy review expected this month for Afghanistan, where insurgent violence is at its worst since the U.S.-led intervention there began in late 2001.&lt;/p&gt;

&lt;p&gt;Holbrooke said a &quot;vast task&quot; lay ahead to improve the international efforts in Afghanistan.&lt;/p&gt;

&lt;p&gt;Washington wants increased focus on alternative livelihoods to the opium farming that is helping fuel the insurgency and will ask the U.S. Congress for &quot;very significantly expanded funding for agriculture sector job creation,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;The failures in the civilian side, from drugs, to agriculture, to police, to information ... are so enormous we can at least hope that if we get our act together ... we can do a lot better,&quot; he added.&lt;/p&gt;

&lt;p&gt;The Afghan government and its international backers have already announced plans to increase the size of the Afghan army substantially to 134,000 soldiers, from 70,000 in mid-2008.&lt;/p&gt;

&lt;p&gt;Among the ideas are scaling back the U.S. mission to focus on counter-terrorism and the training of Afghan forces; making a focused counter-insurgency push in the violent south and east; and pursuing a wider campaign to protect civilians.&lt;/p&gt;

&lt;p&gt;Hundreds of civilian officials from across the U.S. government would be sent to Afghanistan as part of the new strategy in a sort of &quot;civilian surge.&quot;&lt;/p&gt;

&lt;p&gt;On Thursday, France proposed sending European Union gendarmes to train paramilitary police in Afghanistan as part of efforts to step up training of Afghan security forces.&lt;/p&gt;

&lt;p&gt;(Reporting by David Brunnstrom, editing by Tim Pearce)&lt;/p&gt;</media:text>
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<title>Hungarian PM to quit</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K0PI20090321</link>
<pubDate>Sat, 21 Mar 2009 06:56:02 -0600</pubDate>
<description><![CDATA[BUDAPEST (Reuters) - Hungarian Prime Minister Ferenc Gyurcsany offered on Saturday to step aside to allow a new leader and government to tackle the ailing economy, but finding a compromise candidate and program may be difficult.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Krisztina Than and Gergely Szakacs&lt;/p&gt;

&lt;p&gt;BUDAPEST (Reuters) - Hungarian Prime Minister Ferenc Gyurcsany offered on Saturday to step aside to allow a new leader and government to tackle the ailing economy, but finding a compromise candidate and program may be difficult.&lt;/p&gt;

&lt;p&gt;Hungary, which had to resort to an IMF-led rescue package last October, needs to make further spending cuts and other measures, but the ruling Socialist minority government has so far been reluctant to agree to bold cuts in social spending.&lt;/p&gt;

&lt;p&gt;Gyurcsany, in power since September 2004, told the Socialist's party congress he would stop leading the government if this was needed to lead the country out of its troubles.&lt;/p&gt;

&lt;p&gt;The liberal Free Democrats, with whom the Socialists will most likely have to agree on a new leader and program, want radical tax and spending cuts.&lt;/p&gt;

&lt;p&gt;Should Gyurcsany no longer be prime minister, he would still wield considerable political influence as leader of the Socialists, the largest party in parliament.&lt;/p&gt;

&lt;p&gt;&quot;Crisis management and further changes require wider political and social backing than today,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;I hear that I am the obstacle to the cooperation required for changes, for a stable governing majority and the responsible behavior of the opposition,&quot; Gyurcsany said &quot;...If so, then I am eliminating this obstacle now. I propose that we form a new government under a new prime minister.&quot;&lt;/p&gt;

&lt;p&gt;A source close to Gyurcsany told Reuters he planned to organize a parliamentary vote of no confidence against him and his government. In the same vote, parliament would also vote on a new prime minister, avoiding the need for elections.&lt;/p&gt;

&lt;p&gt;&quot;In a legal sense this will not be a resignation, but a constructive vote of no confidence, headed by the PM,&quot; the source said. &quot;If there is a parliamentary majority, there could be a new prime minister by mid-April,&quot; he said.&lt;/p&gt;

&lt;p&gt;Gyurcsany was re-elected as party president with 85 percent support at the congress later on Saturday. The Socialists plan to choose their candidate for the premiership on April 5.&lt;/p&gt;

&lt;p&gt;To get the new leader and program approved in parliament, the Socialists need the backing of opposition MPs, primarily from the Free Democrats.&lt;/p&gt;

&lt;p&gt;&quot;If there is a turn to the left at the Socialist Party's (ongoing) congress, the chance will pass to cooperate about sensible reform policies,&quot; Gabor Fodor, party chairman of the liberal Free Democrats told a news conference.&lt;/p&gt;

&lt;p&gt;The main opposition party Fidesz said it would not negotiate about a new government and would on Monday submit a motion to dissolve parliament as it wants early elections.&lt;/p&gt;

&lt;p&gt;DIFFICULT COMPROMISE&lt;/p&gt;

&lt;p&gt;Gyurcsany has headed a minority Socialist government since last April when the Free Democrats quit the coalition and a compromise prime minister able to get majority support in parliament could be hard to find, analysts said.&lt;/p&gt;

&lt;p&gt;&quot;The most important question of the vote of no confidence procedure and the establishment of a new government is not so much the person of the new prime minister but the program which can attract majority support in parliament,&quot; think tank Political Capital said in a note.&lt;/p&gt;

&lt;p&gt;&quot;It may not be simple to find a compromise over the program,&quot; added Zoltan Kiszelly, another analyst.&lt;/p&gt;

&lt;p&gt;The global financial crisis has hit Hungary hard and in October it took a $25.1 billion IMF-led rescue package.&lt;/p&gt;

&lt;p&gt;Hungary's export-dependent economy is expected to contract by 4.5 percent this year and some analysts say the recession could be deeper. The national debt is rising and the currency fell to record lows against the euro earlier this month.&lt;/p&gt;

&lt;p&gt;In 2006 Gyurcsany's re-election to power sparked weeks of riots after a tape in which he admitted lying about the country's poor finances to win the election.&lt;/p&gt;

&lt;p&gt;Although Gyurcsany cut the deficit from more than 9 percent of GDP in 2006 to 3.3 percent in 2008, he has failed to win public support for wider economic reforms and his popularity has plunged to record lows because of tax rises and spending cuts.&lt;/p&gt;

&lt;p&gt;(Writing by Krisztina Than, Editing by Matthew Jones)&lt;/p&gt;</media:text>
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<title>SCENARIOS: What next as Hungary PM says ready to step aside</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K11W20090321</link>
<pubDate>Sat, 21 Mar 2009 06:55:58 -0600</pubDate>
<description><![CDATA[BUDAPEST (Reuters) - Hungarian Prime Minister Ferenc Gyurcsany said on Saturday he was ready to step aside to make way for a new government under a new prime minister to lead Hungary out of the economic crisis. He plans to organize a "constructive vote of no confidence" in parliament.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;BUDAPEST (Reuters) - Hungarian Prime Minister Ferenc Gyurcsany said on Saturday he was ready to step aside to make way for a new government under a new prime minister to lead Hungary out of the economic crisis. He plans to organize a &quot;constructive vote of no confidence&quot; in parliament.&lt;/p&gt;

&lt;p&gt;Here are some clues to what may happen next:&lt;/p&gt;

&lt;p&gt;GYURCSANY STEPS ASIDE, SELECTS HIS SUCCESSOR&lt;/p&gt;

&lt;p&gt;After being confirmed as Socialist party chairman on Saturday, Gyurcsany initiates &quot;constructive vote of confidence.&quot;&lt;/p&gt;

&lt;p&gt;At least one-fifth of the 386 MPs are needed to propose a no confidence vote in parliament. Parliament then votes the incumbent out and an agreed successor in, without an election. Gyurcsany's successor must be acceptable to the Free Democrats, who have 19 seats and whose support is needed to have parliament approve the candidate.&lt;/p&gt;

&lt;p&gt;The Free Democrats insist on a more radical package with deeper cuts in taxes and state spending to help the ailing economy. They would only likely agree to a candidate whom they see as an effective crisis manager and who would embrace bolder spending cuts. The Socialists, polling only 16-17 percent support, may be reluctant to agree to deeper social spending cuts as job losses mount and trade unions plan protests, so it may be hard to find a compromise candidate.&lt;/p&gt;

&lt;p&gt;The Socialists could seek a new alliance or coalition with the Free Democrats and the Hungarian Democratic Forum.&lt;/p&gt;

&lt;p&gt;GYURCSANY RESIGNS AS PRIME MINISTER&lt;/p&gt;

&lt;p&gt;If Gyurcsany formally resigns, the government's mandate ends. If a new prime minister nominated by President Laszlo Solyom is not approved by parliament within 40 days, Solyom has the right to call new elections.&lt;/p&gt;

&lt;p&gt;POSSIBLE CANDIDATES FOR NEW PM&lt;/p&gt;

&lt;p&gt;* GYORGY SURANYI, 55, regional head of Italy's Intesa Sanpaolo SpA, was twice governor of the Hungarian central bank (NBH) in the 1990s. He was a co-author of the 1995 austerity package which helped Hungary cut its bloated current account and budget deficits and laid the foundations for robust economic growth. He has support within the Socialist party and its former ally, the Free Democrats, but was criticized as NBH chief under a government led by the current main opposition party Fidesz.&lt;/p&gt;

&lt;p&gt;* LAJOS BOKROS, 54, former finance minister credited with Hungary's economic turnaround in 1995. His austerity measures included a gradual devaluation of the forint, a wage freeze, plus reforms of social benefits and speedy privatization.&lt;/p&gt;

&lt;p&gt;Politically divisive, Bokros has recently criticized the Gyurcsany government for what he said was a lack of systemic thinking and urged deep reforms. He said on Saturday he would accept the office if asked.&lt;/p&gt;

&lt;p&gt;* JULIA KIRALY, 51, respected economist, central bank deputy governor in charge of financial stability since July 2007.&lt;/p&gt;

&lt;p&gt;* LASZLO BEKESI, 66, respected economist, finance minister in 1989-1990 and in Gyula Horn's Socialist-Free Democrat government in 1994. He was co-author of a radical cost-cutting reform program recently drafted by a civil group called the Reform Alliance, comprised of economists and business leaders.&lt;/p&gt;

&lt;p&gt;* PETER KISS, 49, head of the powerful Prime Minister's Office. Has a reputation as a smooth operator behind the scenes, making him fit to lead the unruly Socialists. Kiss is popular among Socialists as he played a key role in the party's birth from the ashes of the ruling Communist Party in the early 1990s. * IMRE SZEKERES, 58, deputy head of the Socialists and defence minister. A powerful party man and member of the leadership for over a decade. He has been a critic of the independent central bank.&lt;/p&gt;

&lt;p&gt;* JOZSEF GRAF, 62, agriculture minister since 2005. Seen as a gifted manager who pacified a formerly belligerent farm sector and helped it work within the EU. A founder of the Socialist Party in 1989, has a solid political base in southern Hungary.&lt;/p&gt;

&lt;p&gt;* GORDON BAJNAI, 41, economy minister. Nominated to a government post in June 2007 after a successful business career. Recently called for deeper economic reforms than those planned, and urged speedy entry into the euro zone.&lt;/p&gt;

&lt;p&gt;(Reporting by Krisztina Than/Marton Dunai/Sandor Peto; editing by Tim Pearce)&lt;/p&gt;</media:text>
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<title>Global economy to shrink in 2009: World Bank</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K0SU20090321</link>
<pubDate>Sat, 21 Mar 2009 05:31:24 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - The global economy is set to shrink by one to two percent this year, World Bank President Robert Zoellick said on Saturday, saying the depth of the slowdown was unprecedented since the 1930s Great Depression.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Mark John&lt;/p&gt;

&lt;p&gt;BRUSSELS (Reuters) - The global economy is set to shrink by one to two percent this year, World Bank President Robert Zoellick said on Saturday, saying the depth of the slowdown was unprecedented since the 1930s Great Depression.&lt;/p&gt;

&lt;p&gt;Speaking at a conference in Brussels, Zoellick referred to a an International Monetary Fund (IMF) forecast that the world economy would shrink by one percent this year.&lt;/p&gt;

&lt;p&gt;He said: &quot;We in the bank will be coming up with ours again soon, probably in the range of one to two percent ... We haven't seen a figure like that globally since World War Two, which really means since the Great Depression.&quot;&lt;/p&gt;

&lt;p&gt;The World Bank chief has raised concerns over existing efforts to tackle the crisis, warning of the risk of doing &quot;too little, too late.&quot;&lt;/p&gt;

&lt;p&gt;He has said that fiscal stimulus without addressing the roots of the credit crunch will be a mere &quot;sugar high&quot; with no lasting impact on the economy.&lt;/p&gt;

&lt;p&gt;Zoellick proposed that the Group of 20 major and emerging economies -- whose leaders are due to meet in London next month -- establish a review process to see whether further stimulus measures would be needed to kickstart recovery.&lt;/p&gt;

&lt;p&gt;&quot;Out of the G20 process one should have a monitoring system,&quot; he told the conference organized by the German Marshall Fund transatlantic think-tank, suggesting a system of reviews on the impact of existing stimulus packages agreed by governments.&lt;/p&gt;

&lt;p&gt;&quot;Some of the packages actually withdraw stimulus in 2010. So given the uncertainty of this crisis I think you want to have a review process to see whether more would be needed in 2010.&quot;&lt;/p&gt;

&lt;p&gt;Zoellick warned of a fall-off in world trade as countries retrenched into their domestic economies, and cited World Bank forecasts that up to 400,000 infants would die this year as an indirect effect of the economic crisis.&lt;/p&gt;

&lt;p&gt;&quot;There are issues that go beyond the economics to political and social stability,&quot; he said. &quot;If kids don't get proper nutrition in their early years, you lose a generation.&quot;&lt;/p&gt;

&lt;p&gt;Zoellick cited some progress in persuading rich countries to help developing states struggling to cope with a slowdown that hit revenues from  commodities exports and remittances from expatriate workers, but acknowledged there was resistance.&lt;/p&gt;

&lt;p&gt;&quot;It's hard at a time like this. Everyone is feeling stretched.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by David Brunnstrom; Editing by Richard Balmforth)&lt;/p&gt;</media:text>
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<title>Iran to U.S.: &quot;You change, our behavior will change&quot;</title>
<link>http://www.reuters.com/article/topNews/idUSDAH12844520090321</link>
<pubDate>Sat, 21 Mar 2009 04:10:40 -0600</pubDate>
<description><![CDATA[TEHRAN (Reuters) - Iran's Supreme Leader Ayatollah Ali Khamenei said on Saturday U.S. President Barack Obama's offer of better ties was just a "slogan," but pledged Tehran would respond to any real policy shift by Washington.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Zahra Hosseinian and Fredrik Dahl&lt;/p&gt;

&lt;p&gt;TEHRAN (Reuters) - Iran's Supreme Leader Ayatollah Ali Khamenei said on Saturday U.S. President Barack Obama's offer of better ties was just a &quot;slogan,&quot; but pledged Tehran would respond to any real policy shift by Washington.&lt;/p&gt;

&lt;p&gt;Speaking a day after Obama's videotaped overture, Iran's most powerful figure criticized U.S. actions toward Iran since its 1979 Islamic revolution and said he did not see any change in practice from the new U.S. administration so far.&lt;/p&gt;

&lt;p&gt;But Khamenei, who has final say on all matters of state, added: &quot;You change, our behavior will change.&quot;&lt;/p&gt;

&lt;p&gt;Indicating areas where Iran wants a different U.S. approach, he said the United States was &quot;hated in the world&quot; and should stop interfering in other countries' internal affairs.&lt;/p&gt;

&lt;p&gt;He also spoke of &quot;oppressive sanctions&quot; imposed on the Islamic Republic, Iranian assets frozen in the United States and Washington's backing of Israel, which Tehran does not recognize.&lt;/p&gt;

&lt;p&gt;&quot;They give the slogan of change but in practice no change is seen ... We haven't seen any change,&quot; Khamenei told a big crowd at Shi'ite Muslim Iran's most prominent religious shrine in the northeastern city of Mashhad.&lt;/p&gt;

&lt;p&gt;Iran and the United States have not had diplomatic ties for three decades and are now embroiled in a dispute over Tehran's nuclear work, which the West suspects is aimed at making bombs. Iran denies the charge.&lt;/p&gt;

&lt;p&gt;In a major shift from the policies of his predecessor George W. Bush, who branded Iran part of an &quot;axis of evil&quot; and spearheaded a drive to isolate it, Obama has talked of extending a hand of peace to Tehran if it &quot;unclenches its fist.&quot;&lt;/p&gt;

&lt;p&gt;On Friday, the U.S. president offered a &quot;new beginning&quot; of diplomatic engagement between the two old foes.&lt;/p&gt;

&lt;p&gt;Khamenei said a change of U.S. words was not enough and that Obama had &quot;insulted&quot; Iran and its government immediately after taking office, without elaborating.&lt;/p&gt;

&lt;p&gt;U.S. &quot;CRIMES&quot;&lt;/p&gt;

&lt;p&gt;While reaching out to Iran, Obama's administration has also warned of tougher sanctions if it continues to defy U.N. demands to halt sensitive nuclear work.&lt;/p&gt;

&lt;p&gt;&quot;You give the slogan of negotiation and pressure again ... Our nation cannot be talked to like this,&quot; Khamenei said.&lt;/p&gt;

&lt;p&gt;During his televised speech, the crowd chanted: &quot;Death to America. Death to America.&quot;&lt;/p&gt;

&lt;p&gt;In his warmest offer yet of a fresh start in relations, Obama said in his video message released to mark the Iranian New Year: &quot;The United States wants the Islamic Republic of Iran to take its rightful place in the community of nations.&quot;&lt;/p&gt;

&lt;p&gt;Obama said &quot;that place cannot be reached through terror or arms, but rather through peaceful actions that demonstrate the true greatness of the Iranian people and civilization.&quot;&lt;/p&gt;

&lt;p&gt;Noting Obama's New Year greeting, Khamenei said: &quot;In the same congratulatory message they accuse the Iranian nation of supporting terrorism, pursuing nuclear arms and such things ... what has changed?&quot;&lt;/p&gt;

&lt;p&gt;Analysts have said that Iran is setting tough conditions for dialogue to buy time for its ponderous, opaque decision-making process. Adding to uncertainty, Iran holds a presidential election in June that could strengthen moderate voices backing detente over more hardline opponents.&lt;/p&gt;

&lt;p&gt;President Mahmoud Ahmadinejad has demanded Washington apologize for decades of &quot;crimes&quot; against Iran. Tehran also says it cannot let down its guard as long as U.S. troops are posted on its borders in Iraq and Afghanistan.&lt;/p&gt;

&lt;p&gt;Khamenei accused the United States of links with &quot;terrorist movements&quot; operating in border areas near Pakistan and also criticized it for backing former Iraqi strongman Saddam Hussein during the 1980-88 Iran-Iraq war.&lt;/p&gt;

&lt;p&gt;&quot;Iran has many grievances and it expects that the United States would finally come to recognize this,&quot; said Professor Mohammad Marandi of North American studies at Tehran University.&lt;/p&gt;

&lt;p&gt;&quot;Change does not come about by saying Happy New Year.&quot;&lt;/p&gt;

&lt;p&gt;(Editing by Janet Lawrence)&lt;/p&gt;</media:text>
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<title>Madagascar leader installed but envoys miss bash</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2B320090321</link>
<pubDate>Sat, 21 Mar 2009 03:35:08 -0600</pubDate>
<description><![CDATA[ANTANANARIVO (Reuters) - Jubilant supporters cheered the installation on Saturday of Madagascar's army-backed new leader Andry Rajoelina -- but foreign ambassadors did not attend due to world condemnation of his takeover.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Richard Lough and Alain Iloniaina&lt;/p&gt;

&lt;p&gt;ANTANANARIVO (Reuters) - Jubilant supporters cheered the installation on Saturday of Madagascar's army-backed new leader Andry Rajoelina -- but foreign ambassadors did not attend due to world condemnation of his takeover.&lt;/p&gt;

&lt;p&gt;Music blasted and military marksmen stood on rooftops at the ceremony attended by 40,000 people in the main sports stadium of the Indian Ocean island's sweltering capital Antananarivo.&lt;/p&gt;

&lt;p&gt;Envoys had intended to snub the event, to underline global disapproval of the manner of Rajoelina's rise, but his new foreign minister said they were not invited anyway.&lt;/p&gt;

&lt;p&gt;&quot;The government is going to try and negotiate with them,&quot; minister Nyhasina Andriamanjato told reporters afterwards.&lt;/p&gt;

&lt;p&gt;Rajoelina, 34, took over after leading months of opposition protests against President Marc Ravalomanana. That unrest killed at least 135 people, scared away tourists and unsettled investors in the fast-developing mining and oil sectors.&lt;/p&gt;

&lt;p&gt;Ravalomanana, 59, handed over to the military, who in turn conferred power on Rajoelina to be president.&lt;/p&gt;

&lt;p&gt;After being introduced to the crowd by Madagascar's Constitutional Court's top judge, Rajoelina said his priorities were to combat poverty and ensure security. &quot;My first priority is to improve people's lives,&quot; he told the crowd.&lt;/p&gt;

&lt;p&gt;In the strongest show of displeasure from abroad, the African Union has suspended Madagascar, which lies off the continent's east coast and has a history of volatile politics.&lt;/p&gt;

&lt;p&gt;Major Western powers including the United States and the European Union have termed Rajoelina's rise a coup d'etat and called for early elections. Several nations have suspended aid.&lt;/p&gt;

&lt;p&gt;&quot;To the leaders of all our foreign partners, please know that Madagascar is the friend of all nations,&quot; Rajoelina said, adding he would not change Madagascar's free-market economics.&lt;/p&gt;

&lt;p&gt;&quot;We aspire to new hope for liberty. We seek a new direction for our country ... (But) we will respect financial orthodoxy.&quot;&lt;/p&gt;

&lt;p&gt;Africa's youngest and newest president is carefully calling himself &quot;president of the transitional authority&quot; because of the questions over the legality of his rise to power.&lt;/p&gt;

&lt;p&gt;Rajoelina is six years too young to be president, according to Madagascar's constitution, and is taking the presidency without any form of popular vote. The Constitutional Court, however, has endorsed him as national leader.&lt;/p&gt;

&lt;p&gt;He has promised elections within two years, and the new government very deliberately termed Saturday's ceremony an &quot;installation&quot; rather than a &quot;swearing-in.&quot;&lt;/p&gt;

&lt;p&gt;Foreign minister Andriamanjato said Madagascar would soon be sending a delegation to talk with AU head and Libyan leader Muammar Gaddafi to try to salvage a planned summit of the pan-African body on the island later this year.&lt;/p&gt;

&lt;p&gt;&quot;THE PARTY WON'T LAST&quot;&lt;/p&gt;

&lt;p&gt;Washington has suspended all non-humanitarian aid to Madagascar, whose budget is 70 percent funded from abroad.&lt;/p&gt;

&lt;p&gt;&quot;As long as Madagascar remains in an unconstitutional situation and ... there prevails a climate of threats, intimidation and violence, the capacity for the international community to help the country will be reduced,&quot; U.S. envoy Niels Marquardt told the local Midi Madagascar newspaper.&lt;/p&gt;

&lt;p&gt;Stung by international reaction, Rajoelina's camp says it is unfair to criticize a movement that fought for liberty on behalf of Madagascar's 20 million people. As well as the crucial military backing, Rajoelina has widespread popular support.&lt;/p&gt;

&lt;p&gt;Ravalomanana had faced increasing discontent over high poverty levels and his own enormous business empire.&lt;/p&gt;

&lt;p&gt;Several thousand of his supporters held a counter-rally at Antananarivo's Democracy Square on Saturday. They denounced Rajoelina as a puppet for former president, Didier Ratsiraka, now living in exile in France.&lt;/p&gt;

&lt;p&gt;&quot;We are ashamed of Rajoelina. Malagasy will never accept this,&quot; said one demonstrator, Annie Rasolofo.&lt;/p&gt;

&lt;p&gt;Around Antananarivo, a city of faded French colonial grandeur, the new leader's early promises to lower the price of essential food, scrap South Korean firm Daewoo's land-lease deal and sell the presidential jet have gone down fairly well.&lt;/p&gt;

&lt;p&gt;&quot;Andry Rajoelina will bring democracy to Madagascar and he will help the poor,&quot; said retired teacher Tina Rassoamalala.&lt;/p&gt;

&lt;p&gt;Some, however, are cynical. &quot;The people will get their slice of the cake at first. But that slice will get smaller and smaller until it is just Rajoelina and his closest people benefiting,&quot; said restaurant worker Michel.&lt;/p&gt;

&lt;p&gt;Analysts say Rajoelina must quickly shore up his legitimacy.&lt;/p&gt;

&lt;p&gt;&quot;He will have to come up with a broad-based government and a credible timetable with regard to elections that is acceptable to the Malagasy and international community,&quot; said Lydie Boka at the France-based risk consultancy StrategiCo.&lt;/p&gt;

&lt;p&gt;&quot;I fear ... the party won't last long.&quot;&lt;/p&gt;</media:text>
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<title>North Korea confirms detention of two Americans</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K0HR20090321</link>
<pubDate>Sat, 21 Mar 2009 00:59:36 -0600</pubDate>
<description><![CDATA[SEOUL (Reuters) - North Korea said on Saturday it had detained two Americans for "illegally" entering the country by crossing the border with China.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;SEOUL (Reuters) - North Korea said on Saturday it had detained two Americans for &quot;illegally&quot; entering the country by crossing the border with China.&lt;/p&gt;

&lt;p&gt;South Korean media and diplomatic sources said this week North Korean security officials detained two female American journalists on Tuesday who were filming across the Tumen River from the Chinese side of the border.&lt;/p&gt;

&lt;p&gt;&quot;Two Americans were detained on March 17 while illegally intruding into the territory of the DPRK (North Korea) by crossing the DPRK-China border. A competent organ is now investigating the case,&quot; the North's official news agency KCNA said without giving more details.&lt;/p&gt;

&lt;p&gt;A media source has said the two women were working for Current TV, a U.S.-based online news company.&lt;/p&gt;

&lt;p&gt;A diplomatic source said earlier the reporters were on the frozen Tumen river when taken by North Korean security guards. The Tumen runs along the eastern section of the border with China.&lt;/p&gt;

&lt;p&gt;The arrests come at a time of mounting tension as the North has said it will launch a satellite early in April as part of its space communication program.&lt;/p&gt;

&lt;p&gt;U.S. officials say the launch is intended to test a rocket that could potentially carry a warhead as far as U.S. territory.&lt;/p&gt;

&lt;p&gt;(Reporting by Miyoung Kim, Editing by Dean Yates)&lt;/p&gt;</media:text>
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<title>North Korea says holding 2 Americans</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K0BT20090321</link>
<pubDate>Fri, 20 Mar 2009 20:52:38 -0600</pubDate>
<description><![CDATA[SEOUL (Reuters) - North Korea reopened a military hotline with the South on Saturday, a day after Washington and Seoul ended annual defense drills Pyongyang had called preparations for an invasion.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Miyoung Kim&lt;/p&gt;

&lt;p&gt;SEOUL (Reuters) - North Korea reopened a military hotline with the South on Saturday, a day after Washington and Seoul ended annual defense drills Pyongyang had called preparations for an invasion.&lt;/p&gt;

&lt;p&gt;The North also confirmed it had detained two Americans on Tuesday for &quot;illegally&quot; crossing its border from China and said they were being investigated.&lt;/p&gt;

&lt;p&gt;Washington said on Friday that Secretary of State Hillary Clinton was trying to resolve the issue over the two female journalists, who were detained while filming a story for an online news company.&lt;/p&gt;

&lt;p&gt;Pyongyang cut the military hotline, the only telephone link between the two Koreas, at the start of the annual U.S.-South Korean drills on March 9. A spokesman for Seoul's unification ministry said it was restored earlier on Saturday.&lt;/p&gt;

&lt;p&gt;But the move did not signal the North was ready to tone down its rhetoric ahead of a planned rocket launch early next month.&lt;/p&gt;

&lt;p&gt;North Korean media on Saturday called the drills the &quot;biggest maneuvers for a nuclear war against the DPRK (North Korea) in history in terms of the aggressor forces involved and their duration.&quot;&lt;/p&gt;

&lt;p&gt;Tension on the peninsula are already running with the North's announcement it would launch a satellite between April 4 and 8.&lt;/p&gt;

&lt;p&gt;On Saturday, the North issued a notice to aviators saying it will close two routes in its airspace from April 4 to 8 between the hours 0200 and 0700 GMT (10:00 p.m. EDT and 3:00 a.m. EDT) for a satellite launch, an official at Japan's transport ministry said.&lt;/p&gt;

&lt;p&gt;Officials in Seoul and Washington say the launch is really a disguised test of its long-range Taepodong-2 missile.&lt;/p&gt;

&lt;p&gt;JOURNALISTS&lt;/p&gt;

&lt;p&gt;The detention of the journalists comes at an awkward time for Washington, which has condemned the planned rocket launch.&lt;/p&gt;

&lt;p&gt;&quot;Two Americans were detained on March 17 while illegally intruding into the territory of the DPRK by crossing the DPRK-China border. A competent organ is now investigating the case,&quot; the North's official news agency KCNA said without giving more details.&lt;/p&gt;

&lt;p&gt;South Korean media and diplomatic sources said this week North Korean security officials detained the two as they filmed across the Tumen River from the Chinese side of the border.&lt;/p&gt;

&lt;p&gt;A media source has said the two women were working for Current TV, a U.S.-based online news company.&lt;/p&gt;

&lt;p&gt;A diplomatic source said earlier the reporters were on the frozen Tumen when taken by North Korean security guards. The Tumen runs along the eastern section of the border with China.&lt;/p&gt;

&lt;p&gt;&quot;What I can tell you is that we are working diplomatically to try to resolve this issue. Secretary Clinton is engaged on this matter right now,&quot; Robert Wood, a U.S. State Department spokesman, told reporters on Friday.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Yoko Kubota in Tokyo; Editing by Dean Yates and Sanjeev Miglani)&lt;/p&gt;</media:text>
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<title>U.S. bank rescue plan could come on Monday: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K0AH20090321</link>
<pubDate>Fri, 20 Mar 2009 20:20:25 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - The U.S. government will announce as soon as Monday a long-awaited plan to try to get bad assets off the books of banks, a cornerstone of its efforts to tackle the credit crisis, The Wall Street Journal reported.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - The U.S. government will announce as soon as Monday a long-awaited plan to try to get bad assets off the books of banks, a cornerstone of its efforts to tackle the credit crisis, The Wall Street Journal reported.&lt;/p&gt;

&lt;p&gt;The Obama administration, battling a deepening recession, is set to adopt a three-pronged approach to ridding the financial system of so-called toxic assets, the newspaper and the New York Times said on their websites on Friday.&lt;/p&gt;

&lt;p&gt;The plan would create an entity, backed by the Federal Deposit Insurance Corp, a U.S. banking regulator, to buy and hold loans, the reports said.&lt;/p&gt;

&lt;p&gt;It would expand a newly launched Federal Reserve facility -- that lends money to investors to buy securities backed by consumer loans -- to include toxic assets. And it would create new public and privately financed funds to buy such securities under the management of private investment experts.&lt;/p&gt;

&lt;p&gt;The Obama administration plans to contribute between $75 billion and $100 billion in new capital to the effort although that amount could be expanded, the Wall Street Journal said.&lt;/p&gt;

&lt;p&gt;The Treasury Department and Federal Reserve declined to comment. Sources familiar with the government's thinking have told Reuters details of a plan could be announced next week.&lt;/p&gt;

&lt;p&gt;The Bush administration tried without success late last year to set up a mechanism to get bad assets off the balance sheets of commercial banks.&lt;/p&gt;

&lt;p&gt;The banks have been hammered by losses incurred by mortgage-related debt that has turned sour amid a fall in house prices and a pickup in defaults, sparking a credit crisis that has strangled the U.S. and global economies.&lt;/p&gt;

&lt;p&gt;Obama's Treasury secretary, Timothy Geithner, has outlined a new proposal to soak up as much as $1 trillion in assets through a public-private program.&lt;/p&gt;

&lt;p&gt;But investors have grown increasingly concerned that his efforts are running into problems more than a month after he outlined the plan.&lt;/p&gt;

&lt;p&gt;The slow start of the new Federal Reserve consumer lending program this week has been seen as a sign that private capital may shun the toxic-asset plan because of public outrage over large executive bonuses.&lt;/p&gt;

&lt;p&gt;Many big private investors are worried they could face tough new rules in U.S. financial rescue programs after Congress pressed ahead with efforts to claw back bonuses paid to executives at failed insurer American International Group.&lt;/p&gt;

&lt;p&gt;The Wall Street Journal said the Treasury would match private sector finance for the public-private toxic asset funds on a one-for-one basis in most cases.&lt;/p&gt;

&lt;p&gt;Washington would be a co-investor also in the new FDIC troubled loans program but could contribute 80 percent in some cases, and would guarantee as much as $500 billion in loans investments, the newspaper said in its report.&lt;/p&gt;

&lt;p&gt;The New York Times said the FDIC program could involve government funding for up to 97 percent of the equity.&lt;/p&gt;

&lt;p&gt;It also said the plan is likely to offer generous taxpayer subsidies, in the form of low-interest loans, to coax investors to form partnerships with the government.&lt;/p&gt;

&lt;p&gt;(Editing by Peter Cooney &amp;amp; Jan Dahinten)&lt;/p&gt;</media:text>
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<title>Mexico captures &quot;drug lord&quot; accused of U.S. attack</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K0AE20090321</link>
<pubDate>Fri, 20 Mar 2009 20:16:37 -0600</pubDate>
<description><![CDATA[MEXICO CITY (Reuters) - Soldiers on Friday captured a man Mexico calls a drug kingpin who is accused of attacking a U.S. consulate and killing nine soldiers, in the second major arrest this week in the country's drug war.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;MEXICO CITY (Reuters) - Soldiers on Friday captured a man Mexico calls a drug kingpin who is accused of attacking a U.S. consulate and killing nine soldiers, in the second major arrest this week in the country's drug war.&lt;/p&gt;

&lt;p&gt;President Felipe Calderon said soldiers seized Sigifredo Najera, a leader of the ruthless Gulf cartel, in the northern city of Saltillo near Texas.&lt;/p&gt;

&lt;p&gt;&quot;He is directly responsible for the torture and killing of the soldiers, the attacks on the U.S. consulate and Televisa (TV broadcaster) in Monterrey,&quot; Calderon said in a speech in the Mexican capital.&lt;/p&gt;

&lt;p&gt;Mexico is facing brutal violence between rival drug gangs and the army in a battle that killed 6,300 people last year.&lt;/p&gt;

&lt;p&gt;The violence is hurting the economy just as Mexico heads into recession amid the global economic crisis. The United States is concerned the violence could spill over its border.&lt;/p&gt;

&lt;p&gt;Calderon, a strong-willed conservative, launched his military assault on cartels at the end of 2006 and despite major drug seizures and arrests, violence is escalating.&lt;/p&gt;

&lt;p&gt;In October, gunmen shot at the U.S. consulate in Monterrey and threw a grenade that did not explode.&lt;/p&gt;

&lt;p&gt;The attacks came as nine soldiers were killed over several days in the same month in Monterrey, a prosperous manufacturing and services city close to the U.S. border that has seen a spike in drug violence over the past six months.&lt;/p&gt;

&lt;p&gt;In January, gunmen threw a grenade and opened fire outside the regional studios of Mexico's top broadcaster Televisa during an evening broadcast in Monterrey.&lt;/p&gt;

&lt;p&gt;In a boost for Calderon, Mexico on Thursday arrested the son of top Sinaloan kingpin Ismael &quot;El Mayo&quot; Zambada, who is wanted in the United States.&lt;/p&gt;

&lt;p&gt;El Mayo runs the ruthless Sinaloa coalition along with the country's most-wanted fugitive, Joaquin &quot;Shorty&quot; Guzman. Last week, Forbes Magazine estimated Guzman's wealth at $1 billion.&lt;/p&gt;

&lt;p&gt;(Reporting by Robin Emmott; editing by Todd Eastham)&lt;/p&gt;</media:text>
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<title>U.S. may boost development, military aid to Pakistan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52K02G20090321</link>
<pubDate>Fri, 20 Mar 2009 18:46:56 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The Obama administration may triple development aid to Pakistan while also boosting military assistance to secure more help in fighting the insurgency in Afghanistan, a U.S. official said on Friday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Arshad Mohammed&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The Obama administration may triple development aid to Pakistan while also boosting military assistance to secure more help in fighting the insurgency in Afghanistan, a U.S. official said on Friday.&lt;/p&gt;

&lt;p&gt;The official, who spoke on condition that he not be named because President Barack Obama has yet to unveil his fresh strategy on Afghanistan, said non-military assistance could rise to three times the current roughly $450 million a year.&lt;/p&gt;

&lt;p&gt;Military aid, now running at $300 million a year, could also rise, although by a lesser amount, the official added, saying that conditions could be attached to the defense funds but not to the development money.&lt;/p&gt;

&lt;p&gt;The steps aim to win greater Pakistani cooperation to address what is seen as a major weakness of the current U.S. approach in Afghanistan: the existence of safe havens in Pakistan from which insurgents launch attacks in Afghanistan.&lt;/p&gt;

&lt;p&gt;The fighting in Afghanistan is now at its most intense since a U.S. invasion seven years ago toppled the Taliban government that sheltered the al Qaeda group behind the September 11 attacks on the United States.&lt;/p&gt;

&lt;p&gt;Obama made shifting resources to the war in Afghanistan a feature of his presidential campaign and he has ordered the deployment of 17,000 additional U.S. troops to the country on top of the 38,000 already serving there.&lt;/p&gt;

&lt;p&gt;If it boosts development aid to Pakistan, the White House would embrace an approach laid out by Vice President Joe Biden when he was chairman of the Senate Foreign Relations Committee and by the panel's senior Republican, Senator Richard Lugar.&lt;/p&gt;

&lt;p&gt;&quot;YOU DON'T JUST LOVE THEM FOR THEIR TERRORISTS&quot;&lt;/p&gt;

&lt;p&gt;Legislation backed by the two, and by the panel's new chairman, Democratic Senator John Kerry, called for giving an extra $1.5 billion a year in non-military aid to Pakistan over five years, amounting to a total of $7.5 billion.&lt;/p&gt;

&lt;p&gt;&quot;The basic approach to Pakistan is the one that comes out of the ... legislation, and that is that the first thing that you have got to do with Pakistan is convince Pakistanis that you are there with them for the long term and that you don't just love them for their terrorists,&quot; said the official.&lt;/p&gt;

&lt;p&gt;&quot;The approach in the legislation was to increase the non-military assistance dramatically to help build a more stable modern Pakistani society and government and then provide military assistance that helps them fight terrorism,&quot; he said.&lt;/p&gt;

&lt;p&gt;He said the military aid was likely to come with conditions to ensure it would be used against insurgents, but said this was &quot;very complicated because you don't want to end up cutting off your nose to spite your face.&quot;&lt;/p&gt;

&lt;p&gt;&quot;You might call it a bargain, rather than conditions: If you are committed to transforming your army into a capable counter-insurgency force, these are the kind of things we can do for you,&quot; the official said, saying assistance could include helicopters or night vision goggles.&lt;/p&gt;

&lt;p&gt;Britain's ambassador to the United States, Sir Nigel Sheinwald, said Washington could help Islamabad &quot;bear down on the rise in extremism&quot; in Pakistan by providing more aid.&lt;/p&gt;

&lt;p&gt;&quot;If there is a more broadly based program of assistance from this country to Pakistan, focusing on the building up of infrastructure and on economic development as well as on military assistance, I think that will help,&quot; he told Reuters.&lt;/p&gt;

&lt;p&gt;Nuclear-armed Pakistan has a long history of political instability and has spent more than half its 61-year existence under military rule.&lt;/p&gt;

&lt;p&gt;The year-old civilian government defused its latest crisis on Monday when it agreed to restore Pakistan's top judge, ending a confrontation between the country's two biggest political parties that looked set to spark street violence.&lt;/p&gt;

&lt;p&gt;U.S. policymakers fear Pakistan's political turmoil could distract the country from fighting insurgents on its territory, further worsening the situation in Afghanistan.&lt;/p&gt;

&lt;p&gt;&quot;I feel like the real war on terror is not in Iraq, and it's not in Afghanistan,&quot; said David Kilcullen, an expert on guerrilla warfare and the author of &quot;The Accidental Guerrilla,&quot; a study of counter-insurgency. &quot;It's in Pakistan.&quot;&lt;/p&gt;

&lt;p&gt;&quot;The real conceptual issue, the real strategic decision that has to be made is: what the hell are we going to do about Pakistan? How are we going to support them? How are we going to stabilize them?&quot; he said.&lt;/p&gt;</media:text>
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<title>Obama's Iran gesture may take time to show results</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J6EP20090320</link>
<pubDate>Fri, 20 Mar 2009 17:34:14 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama's videotaped overture to Iran on Friday was the latest in a series of recent U.S. steps to engage its longtime foe but analysts cautioned the process would take time.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Caren Bohan - Analysis&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama's videotaped overture to Iran on Friday was the latest in a series of recent U.S. steps to engage its longtime foe but analysts cautioned the process would take time.&lt;/p&gt;

&lt;p&gt;Follow-up moves will be required, many of which will take place outside of public view, the experts added.&lt;/p&gt;

&lt;p&gt;&quot;We have to understand that the president has sent signals. He'll have to send them again,&quot; said Anthony Cordesman, a national security analyst at the Center for Strategic and International Studies think tank.&lt;/p&gt;

&lt;p&gt;Complicating the timetable for engagement is Iran's June presidential election, the outcome of which will influence the way Tehran engages with Washington. Hard-line President Mahmoud Ahmadinejad is seeking re-election against reformist candidates.&lt;/p&gt;

&lt;p&gt;&quot;If we see any clear payout, it's likely to be after the Iranian elections are over,&quot; Cordesman said.&lt;/p&gt;

&lt;p&gt;Tehran has been locked in bitter disputes with Washington over Iranian nuclear ambitions and support for militant Islamic groups.&lt;/p&gt;

&lt;p&gt;In a message timed for the Iranian celebration of Nowruz, a holiday marking the arrival of spring, Obama said he wanted to pursue &quot;constructive ties&quot; with Tehran and engage in broad diplomacy.&lt;/p&gt;

&lt;p&gt;&quot;The timing was very thoughtful. In acknowledging Nowruz, he showed the Iranian people that he has an appreciation for their culture and history,&quot; said Karim Sadjadpour, a scholar at the Carnegie Endowment for International Peace.&lt;/p&gt;

&lt;p&gt;Over time, Obama's strategy may pay dividends by forcing hard-liners in Iran &quot;to justify their often gratuitous enmity toward the U.S.,&quot; Sadjadpour said.&lt;/p&gt;

&lt;p&gt;He agreed with Cordesman that the effort at diplomacy would require patience and probably a fair amount of time.&lt;/p&gt;

&lt;p&gt;&quot;IT TAKES TWO TO TANGO&quot;&lt;/p&gt;

&lt;p&gt;&quot;Ultimately, it takes two to tango, and at the moment hard-liners in Tehran who are not interested in having an amicable relationship with the United States have an inordinate amount of influence,&quot; Sadjadpour added.&lt;/p&gt;

&lt;p&gt;Aliakbar Javanfekr, an aide to Ahmadinejad, said on Friday that Iran welcomed &quot;the interest of the American government to settle differences&quot; but that Washington &quot;should realize its previous mistakes and make an effort to amend them.&quot;&lt;/p&gt;

&lt;p&gt;The White House sounded a note of caution when pressed on how quickly it expected results from its strategy.&lt;/p&gt;

&lt;p&gt;&quot;In terms of reaction or what we hope to get out of it, I think in many ways that's up to Iran,&quot; White House spokesman Robert Gibbs said.&lt;/p&gt;

&lt;p&gt;&quot;The president believed that the (Iranian) New Year marks ... a good time for us to demonstrate the tone for the type of respectful engagement that we believe can be had with the people of Iran,&quot; he said.&lt;/p&gt;

&lt;p&gt;Obama, who promised during his presidential campaign to talk to foes like Iran, offered at the start of his administration in January to engage Iran if it &quot;unclenched its fist.&quot;&lt;/p&gt;

&lt;p&gt;The administration is making a major shift from former President George W. Bush's policy to isolate Iran, which he once branded part of an &quot;axis of evil.&quot;&lt;/p&gt;

&lt;p&gt;The United States cut off diplomatic ties with Iran during the 1979-1981 hostage crisis, in which a group of militant Iranian students held 52 U.S. diplomats hostage at the American Embassy for 444 days.&lt;/p&gt;

&lt;p&gt;The video appeal followed other carefully choreographed public overtures, including Obama's comment at a February news conference that he was looking for diplomatic openings with Tehran, and a recent U.S. invitation for Iran to attend an international conference on Afghanistan at the end of this month.&lt;/p&gt;

&lt;p&gt;Iran has given mixed responses to the U.S. gestures, at times welcoming them but in other instances setting tough conditions for any dialogue with the United States.&lt;/p&gt;

&lt;p&gt;Iran's supreme leader, Ayatollah Ali Khamenei, made no mention on Friday of Obama's video message but vowed that world powers could not stop Tehran's nuclear progress -- raising a central dispute with the West, which accuses Iran of seeking to make a nuclear bomb. Tehran insists its nuclear program is for the peaceful generation of electricity.&lt;/p&gt;

&lt;p&gt;Obama's overture to Iran was welcomed by U.S. allies.&lt;/p&gt;

&lt;p&gt;In an interview with Reuters, Britain's ambassador to the United States said the video appeal was &quot;the right way to go.&quot;&lt;/p&gt;

&lt;p&gt;&quot;That has been part of the public messaging really since the inauguration. We think it is an important underlay for the political moves which are now going ahead and will follow,&quot; Sir Nigel Sheinwald said.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Sue Pleming; Editing by Peter Cooney)&lt;/p&gt;</media:text>
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<item>
<title>U.S. to suspend non-humanitarian aid to Madagascar</title>
<link>http://www.reuters.com/article/topNews/idUSN2050127920090320</link>
<pubDate>Fri, 20 Mar 2009 17:21:54 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The United States said on Friday it would suspend all non-humanitarian aid to Madagascar after opposition leader Andry Rajoelina's took power with the support of the army in what Washington regards as coup.]]></description>
<guid isPermaLink="false" >USN2050127920090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The United States said on Friday it would suspend all non-humanitarian aid to Madagascar after opposition leader Andry Rajoelina's took power with the support of the army in what Washington regards as coup.&lt;/p&gt;

&lt;p&gt;Madagascar's elected president, Marc Ravalomanana, was forced out on Tuesday after weeks of opposition protests that won the support of the military.&lt;/p&gt;

&lt;p&gt;&quot;This series of events is tantamount to a coup d'etat,&quot; State Department spokesman Robert Wood told reporters. &quot;In view of these developments, the United States is moving to suspend all non-humanitarian assistance to Madagascar.&quot;&lt;/p&gt;

&lt;p&gt;Wood was not able to say precisely how much aid would be affected.&lt;/p&gt;

&lt;p&gt;The State Department said this week it provided $86.2 million in total assistance to Madagascar in fiscal year 2008, which ended on September 30, 2008. That includes $27.3 million in Millennium Challenge Corporation funds for poverty reduction projects and activities.&lt;/p&gt;

&lt;p&gt;The Millennium Challenge Corporation, the U.S. government's main global development fund, said it is putting on hold the operations of its poverty-reduction grant to Madagascar, which totals $110 million over five years.&lt;/p&gt;

&lt;p&gt;&quot;This decision is made with deep regret. Madagascar is the first country with which MCC signed a compact after being created by Congress in 2004,&quot; said Rodney Bent, acting chief executive officer of the Millennium Challenge Corporation.&lt;/p&gt;

&lt;p&gt;Bent said the fund and Madagascar have worked together over the past four years to increase land security and investments in farms and other rural businesses, and to modernize that country's financial sector. He said more than half of Madagascar's grant already has been provided.&lt;/p&gt;

&lt;p&gt;(Reporting by Arshad Mohammed and Will Dunham)&lt;/p&gt;</media:text>
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<item>
<title>Letters from Madoff victims show outrage, despair</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J67A20090320</link>
<pubDate>Fri, 20 Mar 2009 16:40:03 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Piles of letters from clients of Bernard Madoff made public on Friday show their intense anger with the confessed swindler and his family, and their frustration with authorities for not exposing his fraud sooner.]]></description>
<guid isPermaLink="false" >USTRE52J67A20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Martha Graybow&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Piles of letters from clients of Bernard Madoff made public on Friday show their intense anger with the confessed swindler and his family, and their frustration with authorities for not exposing his fraud sooner.&lt;/p&gt;

&lt;p&gt;The letters were sent to U.S. District Judge Denny Chin in Manhattan before Madoff pleaded guilty last week to committing the largest investment fraud in Wall Street's history.&lt;/p&gt;

&lt;p&gt;They were made public on Friday, many with names and addresses blacked out to shield the identities of the authors, many of whom said they were now penniless because of Madoff.&lt;/p&gt;

&lt;p&gt;Richard Shapiro of California wrote that he had been bilked by the 70-year-old money manager, likening his experience to &quot;what a person who has been raped must feel like.&quot;&lt;/p&gt;

&lt;p&gt;His letter said that he became deeply depressed after hearing of Madoff's arrest last December, and that he did not leave his home for three weeks.&lt;/p&gt;

&lt;p&gt;&quot;I lost 30 pounds, could not swallow food and lived in fear that my wife and children would be left penniless,&quot; Shapiro wrote. He urged Judge Chin, who is presiding over the criminal case, to sentence Madoff to &quot;hard time.&quot;&lt;/p&gt;

&lt;p&gt;After Madoff pleaded guilty, his bail was revoked, and he had to trade his Manhattan penthouse for a jail cell.&lt;/p&gt;

&lt;p&gt;Shapiro wrote that he and his family are selling their home, cutting all discretionary expenses, &quot;and I am working seven days a week to just stay afloat.&quot;&lt;/p&gt;

&lt;p&gt;Madoff pleaded guilty on March 12 to 11 criminal charges, for what prosecutors have said was a two-decade fraud involving as much as $65 billion.&lt;/p&gt;

&lt;p&gt;He is due to be sentenced, possibly to life in prison, on June 16. On Friday, an appeals court rejected his bid to be freed from jail until then, saying he is a flight risk and it is possible he could have stashed money abroad to finance an escape.&lt;/p&gt;

&lt;p&gt;Some letters and e-mails came from people who had not been bamboozled by Madoff, but were outraged by what he had done.&lt;/p&gt;

&lt;p&gt;Madoff's victims had been invited by the court to send the letters before he pleaded guilty.&lt;/p&gt;

&lt;p&gt;Writers questioned what Madoff's family may have known about the fraud, and said they wanted the government to go after assets of his wife, Ruth, his two sons and his brother.&lt;/p&gt;

&lt;p&gt;&quot;The wife's assets should be seized for victims restitution, and she should be made to spend the rest of her life playing bingo and eating in a soup kitchen,&quot; one writer said.&lt;/p&gt;

&lt;p&gt;Madoff's accountant, David Friehling, was charged on Wednesday with fraud after authorities said he pretended to audit the company that cheated thousands of investors. No members of Madoff's family have been charged.&lt;/p&gt;

&lt;p&gt;Prosecutors have filed documents in court signaling their intent to ask for $31.5 million from loans to Madoff's two sons and $2.6 million worth of his wife's jewelry.&lt;/p&gt;

&lt;p&gt;Another writer, Lynn Sustak of Georgia, said she and her husband had invested with Madoff since 2003 and now had nothing left for their retirement.&lt;/p&gt;

&lt;p&gt;She and others said they thought the government had failed by not uncovering Madoff's fraud sooner. The U.S. Securities and Exchange Commission, in particular, has been criticized for not following up on tips regarding Madoff's business.&lt;/p&gt;

&lt;p&gt;&quot;My husband served our country in the Vietnam War, and now I feel our country through the SEC has let us down,&quot; Sustak wrote.&lt;/p&gt;

&lt;p&gt;(Reporting by Martha Graybow; Editing by Toni Reinhold)&lt;/p&gt;</media:text>
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<title>Four Canadian soldiers killed in Afghanistan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J5W120090320</link>
<pubDate>Fri, 20 Mar 2009 15:27:33 -0600</pubDate>
<description><![CDATA[OTTAWA (Reuters) - Roadside bombs killed four Canadian soldiers as well as a local interpreter in Afghanistan on Friday, Canadian Brigadier-General Jonathan Vance said.]]></description>
<guid isPermaLink="false" >USTRE52J5W120090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;OTTAWA (Reuters) - Roadside bombs killed four Canadian soldiers as well as a local interpreter in Afghanistan on Friday, Canadian Brigadier-General Jonathan Vance said.&lt;/p&gt;

&lt;p&gt;Vance, who commands the 2,800 Canadian soldiers in southern Afghanistan, told reporters in remarks televised in Canada that two bombs went off within hours of each other and also wounded eight Canadian soldiers and an Afghan interpreter.&lt;/p&gt;

&lt;p&gt;Canada has now lost 116 soldiers and one diplomat in Afghanistan since deploying troops there in 2002.&lt;/p&gt;

&lt;p&gt;(Reporting by Randall Palmer; Editing by Peter Galloway)&lt;/p&gt;</media:text>
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<item>
<title>Britain seeks &quot;full&quot; US role in Iran talks</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J5PJ20090320</link>
<pubDate>Fri, 20 Mar 2009 14:32:17 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The Obama administration appears to be leaning toward a "full" role in future talks major powers could have with Iran over its nuclear program, Britain's ambassador to the United States said on Friday.]]></description>
<guid isPermaLink="false" >USTRE52J5PJ20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Sue Pleming&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The Obama administration appears to be leaning toward a &quot;full&quot; role in future talks major powers could have with Iran over its nuclear program, Britain's ambassador to the United States said on Friday.&lt;/p&gt;

&lt;p&gt;In an interview with Reuters, Sir Nigel Sheinwald said total U.S. involvement would be &quot;very helpful&quot; in negotiations with Iran by the six nations involved in the effort -- China, Russia, France, Britain, the United States and Germany.&lt;/p&gt;

&lt;p&gt;&quot;Certainly we would hope to see our American colleagues playing a full and equal part in the process. But we do think it is important that that multilateral process on the nuclear file is maintained,&quot; Sheinwald said.&lt;/p&gt;

&lt;p&gt;&quot;I think that is the indication that is coming very much from the administration,&quot; he added.&lt;/p&gt;

&lt;p&gt;Sheinwald's comments followed an unprecedented videotaped message overnight by U.S. President Barack Obama to the Iranian people in which he said his administration wanted to pursue &quot;constructive ties&quot; with Tehran.&lt;/p&gt;

&lt;p&gt;A major U.S. role at international nuclear talks with Iran would be a further sign of the Obama administration's pledge to reach out to Tehran and move sharply away from former President George W. Bush's isolation policy.&lt;/p&gt;

&lt;p&gt;A U.S. official said it was &quot;logical&quot; to join major powers in talks with the Iranians, adding he did not believe a final decision had been taken yet.&lt;/p&gt;

&lt;p&gt;&quot;Clearly, not talking to Iran has not slowed the nuclear program and so it would only make sense to engage them on it,&quot; said the official, adding such a move was in line with the Obama administration's overall engagement policy.&lt;/p&gt;

&lt;p&gt;Last year, in a one-off decision, the Bush administration's point person on Tehran sat in for the first time on a meeting with major powers to hear Iran's response to an incentives package offered to give up its sensitive nuclear work.&lt;/p&gt;

&lt;p&gt;SANCTIONS NOT OFF TABLE&lt;/p&gt;

&lt;p&gt;As part of a review on Iran strategy, the Obama team is looking at whether to have a permanent place at the table in talks aimed at stopping Iran from building what the West suspects is a nuclear bomb and Tehran says is for peaceful power purposes.&lt;/p&gt;

&lt;p&gt;No future talks are scheduled for now with Iran under the so-called P5+1 format -- the permanent members of the U.N. Security Council and Germany -- but political directors are expected to meet after the Obama administration's Iran review is complete, likely in the coming weeks.&lt;/p&gt;

&lt;p&gt;&quot;That is what I am assuming -- that a fuller American engagement in that, in the P5+1 process is one of the things that the internal review is now considering,&quot; Sheinwald said.&lt;/p&gt;

&lt;p&gt;&quot;Full American involvement in that will be very helpful,&quot; he added.&lt;/p&gt;

&lt;p&gt;Sheinwald said Britain and others had welcomed senior U.S. diplomat Bill Burns' participation last summer in Geneva and wanted that to continue. Burns is still in charge of those multilateral negotiations at the State Department.&lt;/p&gt;

&lt;p&gt;Sheinwald said he hoped Iran would respond positively to Obama's videotaped overture, warning the alternative was increased international sanctions if Tehran did not.&lt;/p&gt;

&lt;p&gt;&quot;There is a great deal of work that has gone on on the economic and financial sanctions, which sadly would have to be reactivated if the Iranian response is not the one that we are seeking.&quot;&lt;/p&gt;

&lt;p&gt;Asked whether it was time to freeze international sanctions in a bid to reduce tensions with Iran, Sheinwald said, &quot;Sanctions are going ahead and they are having an impact.&quot;&lt;/p&gt;

&lt;p&gt;The U.N. Security Council has imposed three rounds of limited sanctions against Tehran.&lt;/p&gt;

&lt;p&gt;U.S. Secretary of State Hillary Clinton has indicated the Obama administration will continue the U.S. trend of imposing its own bilateral sanctions as long as Iran refused to give up its sensitive nuclear work.&lt;/p&gt;

&lt;p&gt;(Editing by Eric Walsh and Peter Cooney)&lt;/p&gt;</media:text>
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<title>U.S. Navy studies slower but cheaper LCS ships</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J59G20090320</link>
<pubDate>Fri, 20 Mar 2009 12:54:32 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Under pressure to cut the cost of its Littoral Combat Ship program, the U.S. Navy is studying whether to lower the required speed and swap out fuel-hogging propulsion systems, said a former senior Navy analyst and another source informed about the effort.]]></description>
<guid isPermaLink="false" >USTRE52J59G20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Andrea Shalal-Esa&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - Under pressure to cut the cost of its Littoral Combat Ship program, the U.S. Navy is studying whether to lower the required speed and swap out fuel-hogging propulsion systems, said a former senior Navy analyst and another source informed about the effort.&lt;/p&gt;

&lt;p&gt;The study, led by Naval Sea Systems Command, could lay the groundwork for a change in one of the key selling points of the new ships, which can reach speeds of over 45 knots, but whose costs have more than doubled since 2002, said the sources, who asked not to be named because of the sensitivity of the study.&lt;/p&gt;

&lt;p&gt;Lockheed Martin Corp and General Dynamics Corp are working on separate designs of the new ship, which was initially slated to cost $220 million a piece. The first two ships are now due to cost well above $500 million.&lt;/p&gt;

&lt;p&gt;The Navy wants to buy 55 LCS ships as part of its drive to expand the U.S. fleet to 313 ships. It will use the ships for missions including mine-hunting, reconnaissance, pursuit of terrorists and pirates, but naval analysts and even top Navy officials have questioned if the high speed is really needed and worth the price.&lt;/p&gt;

&lt;p&gt;Even threats from speedy smaller boats would be countered with the ship's deck gun, or the unmanned helicopter on board, rather than by outrunning such a vessel, analysts said.&lt;/p&gt;

&lt;p&gt;&quot;It's all about the cost,&quot; said the former Navy analyst, when asked about the motive behind the new Navy study.&lt;/p&gt;

&lt;p&gt;The Navy had no immediate comment on the study. Both companies said they were unaware of the Navy-led review.&lt;/p&gt;

&lt;p&gt;Navy officials last week said no design changes were planned for the 2009 and 2010 ships, which should help stabilize costs, but officials were reviewing ways to cut the long term cost of operating the ships. They gave no details.&lt;/p&gt;

&lt;p&gt;The former analyst said the new warships only needed to operate at high speeds above 35 knots for a few &quot;operational scenarios,&quot; but the water jets needed to achieve such high speeds were generally less efficient at lower speeds.&lt;/p&gt;

&lt;p&gt;SPEEDY BUT THIRSTY&lt;/p&gt;

&lt;p&gt;Big gas turbines in the propulsion system also boost the fuel consumption of LCS ships compared to other Navy ships, which will increase their long-term operating costs.&lt;/p&gt;

&lt;p&gt;Rear Admiral Thomas Eccles, deputy commander for ship design at Naval Sea System Command, has said the LCS ships &quot;will drink a lot more fuel per ton&quot; than other surface ships, according to a report by Inside the Navy, a trade publication.&lt;/p&gt;

&lt;p&gt;At a conference in December, Eccles questioned whether higher fuel costs were &quot;a price we ought to be paying&quot; for the combat capability of LCS. But he acknowledged that high speed added &quot;real mission value&quot; and might justify higher costs.&lt;/p&gt;

&lt;p&gt;Naval analysts were examining the effect of dropping the required speed of 40 knots by about 25 percent to a range in the low 30 knots, said a second source who was told about the study, but asked not to be named because of its sensitivity.&lt;/p&gt;

&lt;p&gt;Ronald O'Rourke, a naval analyst with the nonpartisan Congressional Research Service, said that over the years, some people had questioned whether there ever was a &quot;rigorous analytical basis&quot; for the speed requirement of 40 knots.&lt;/p&gt;

&lt;p&gt;&quot;Navy officials can provide examples of things the ships can do with such a maximum speed, but that's not the same as saying that there was a rigorous analytical basis for the original requirement,&quot; he said.&lt;/p&gt;

&lt;p&gt;The former Navy analyst agreed, saying that the focus on the high speed of the LCS grew out of former Defense Secretary Donald Rumsfeld's emphasis on &quot;transformational&quot; programs.&lt;/p&gt;

&lt;p&gt;Aside from some quick studies done early on, the analysis that built the case for a fast, shore-hugging ship was done after Navy officials decided to move ahead with the program, said the analyst, who said he participated in that process.&lt;/p&gt;

&lt;p&gt;CONGRESSIONAL CONCERN&lt;/p&gt;

&lt;p&gt;Lawmakers have grown frustrated with the program's cost overruns, which the Navy blames on changes made after the program begun, higher material costs and lack of oversight.&lt;/p&gt;

&lt;p&gt;The Navy is now pressuring the companies to lower the price in order to lock in follow-on contracts. The goal is to meet a congressional cost cap of $460 million each, beginning in 2010.&lt;/p&gt;

&lt;p&gt;Congressional aides say they are not certain the Navy will get the money it wants for the program in fiscal 2010, that begins October 1, given lawmakers' lingering concerns.&lt;/p&gt;

&lt;p&gt;Democratic Representative Gene Taylor, who heads the seapower subcommittee of the House Armed Services Committee, last week warned the Navy to get costs under control before his panel begins weighing the Navy's budget requests.&lt;/p&gt;

&lt;p&gt;One Senate aide said changing the required speed of the ship at this point would add cost for design changes in the short term, and could raise eyebrows among lawmakers already frustrated by the Navy's inability to stick to requirements.&lt;/p&gt;

&lt;p&gt;But such a move could cut the price of each future ship by tens of millions of dollars, helping the companies reach the congressional cost cap, said another congressional aide.&lt;/p&gt;

&lt;p&gt;O'Rourke said changing the propulsion system completely could add cost initially, but scaling back the existing system by substituting lower power engines would take less work.&lt;/p&gt;

&lt;p&gt;He said the freed up space and weight could allow the ship to carry more fuel, which would increase its cruising range.&lt;/p&gt;

&lt;p&gt;Jim McAleese, defense consultant, welcomed the Navy study and said it could help avert a move by Taylor to open the program to competition from other companies, a move McAleese said would likely result in a two-year delay in the program.&lt;/p&gt;

&lt;p&gt;&quot;Anything you can do to pull requirements off that ship -- even if it means reducing the sprint speed -- gets you under $500 million a copy and closer to the congressional cost cap.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Andrea Shalal-Esa; Editing by Tim Dobbyn)&lt;/p&gt;</media:text>
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<title>NATO commander sees Afghan security gains in 2010</title>
<link>http://www.reuters.com/article/topNews/idUSN2049794420090320</link>
<pubDate>Fri, 20 Mar 2009 12:32:15 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The arrival of 12,000 extra U.S. combat troops in southern Afghanistan this summer is not likely to bring major security gains to the volatile region until 2010, a top NATO commander said on Friday.]]></description>
<guid isPermaLink="false" >USN2049794420090320</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090320&amp;t=2&amp;i=9363731&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By David Morgan&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The arrival of 12,000 extra U.S. combat troops in southern Afghanistan this summer is not likely to bring major security gains to the volatile region until 2010, a top NATO commander said on Friday.&lt;/p&gt;

&lt;p&gt;Dutch Major General Mart de Kruif, who commands NATO's 22,300-strong International Security Assistance Force in southern Afghanistan, expects &quot;a significant spike&quot; in violence as fresh U.S. and NATO forces enter the region ahead of Afghan elections due in August.&lt;/p&gt;

&lt;p&gt;&quot;I think that what we are doing now is actually planting the seeds and that we'll view a significant increase in the security situation across southern Afghanistan next year,&quot; Kruif told Pentagon reporters in a video conference.&lt;/p&gt;

&lt;p&gt;Southern Afghanistan, a six-province area where NATO forces operate under a command called Regional Command-South, is the country's most violent region. It is also the center of a global opium network believed to generate tens of millions of dollars in revenue for the Taliban insurgency.&lt;/p&gt;

&lt;p&gt;The region is also expected to be a main subject of President Barack Obama's strategy for Afghanistan and Pakistan, which is expected to be unveiled next week.&lt;/p&gt;

&lt;p&gt;Top NATO and U.S. commander for Afghanistan, U.S. Army General David McKiernan, had said the West is currently facing a stalemate in the country's south.&lt;/p&gt;

&lt;p&gt;Experts say a lack of combat troops has allowed the Taliban to extend its influence in villages across heavily populated areas where Kruif estimates that NATO now controls only about 60 percent of the terrain.&lt;/p&gt;

&lt;p&gt;Obama has ordered 12,000 Marines and Army soldiers to be in place by July 1 in the south. U.S. defense officials say that will more than double the number of combat troops in a regional NATO force that consists mainly of noncombat personnel.&lt;/p&gt;

&lt;p&gt;The U.S. deployment is part of a larger build-up that defense officials say could lead to a total U.S. force of more than 60,000 troops in Afghanistan by year's end. There are currently 38,000 American troops in the country.&lt;/p&gt;

&lt;p&gt;Kruif said he also expects additional forces for the south from other countries including Canada, the Netherlands, Romania and possibly Britain. &quot;There are more coalition forces coming in,&quot; he said without elaborating.&lt;/p&gt;

&lt;p&gt;Within the past two years, southern insurgents led by a militant council based across the border in the Pakistani city of Quetta have switched from targeting NATO forces to attacking the local civilian population, mainly with crudely built roadside munitions known as improvised explosive devices or IEDs.&lt;/p&gt;

&lt;p&gt;As the region prepares for the arrival of new troops, Kruif said NATO forces are aggressively enhancing their ability to locate IEDs and increasing the use of special forces to track and disrupt insurgent bomb-making networks.&lt;/p&gt;

&lt;p&gt;(Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>U.S. CBO sees economy shrinking 1.5 pct in 2009 Q4/Q4</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J54Q20090320</link>
<pubDate>Fri, 20 Mar 2009 12:31:02 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. Congressional Budget Office on Friday forecast that the U.S. economy would contract 1.5 percent in 2009 on a fourth-quarter over fourth-quarter basis, before growing 4.1 percent in both 2010 and 2011.]]></description>
<guid isPermaLink="false" >USTRE52J54Q20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The U.S. Congressional Budget Office on Friday forecast that the U.S. economy would contract 1.5 percent in 2009 on a fourth-quarter over fourth-quarter basis, before growing 4.1 percent in both 2010 and 2011.&lt;/p&gt;

&lt;p&gt;&quot;Although the economy is likely to continue to deteriorate for some time,&quot; CBO said, the $787 billion economic stimulus package &quot;and very aggressive actions by the Federal Reserve and the Treasury are projected to help end the recession in the fall of 2009.&quot;&lt;/p&gt;

&lt;p&gt;The new analysis also said that under President Barack Obama's proposed budget plan, the deficit for 2010 through 2019 would total $9.3 trillion.&lt;/p&gt;

&lt;p&gt;(Reporting by Jeremy Pelofsky, Editing by Chizu Nomiyama )&lt;/p&gt;</media:text>
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<title>U.S. Postal Service to cut 1,400 jobs</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J51W20090320</link>
<pubDate>Fri, 20 Mar 2009 12:20:44 -0600</pubDate>
<description><![CDATA[(Reuters) - The U.S. Postal Service said on Friday it is closing six of its 80 district offices. In addition, administrative staff positions at district level nationwide are being reduced by 15 percent and nearly 150,000 employees nationwide being given opportunity to take an early retirement.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - The U.S. Postal Service said on Friday it is closing six of its 80 district offices. In addition, administrative staff positions at district level nationwide are being reduced by 15 percent and nearly 150,000 employees nationwide being given opportunity to take an early retirement.&lt;/p&gt;

&lt;p&gt;More than 1,400 mail processing supervisor and management positions are also being eliminated.&lt;/p&gt;</media:text>
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<title>Bernanke says Fed has exit strategy from credit policy</title>
<link>http://www.reuters.com/article/topNews/idUSN2028434620090320</link>
<pubDate>Fri, 20 Mar 2009 11:58:18 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke on Friday said the Fed's buying of longer-dated U.S. Treasuries would "taper off" when the economy no longer needed help, allowing the Fed to cease its emergency support.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Alister Bull&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke on Friday said the Fed's buying of longer-dated U.S. Treasuries would &quot;taper off&quot; when the economy no longer needed help, allowing the Fed to cease its emergency support.&lt;/p&gt;

&lt;p&gt;&quot;The time will come when the economy will be growing, the housing market will be recovering, that support will no longer be needed. And we will of course at that point taper off that support,&quot; Bernanke told community bankers in Phoenix, Arizona.&lt;/p&gt;

&lt;p&gt;The U.S. central bank on Wednesday surprised investors with plans to buy up to $300 billion of longer-term U.S. Treasury securities and an additional $850 billion of agency mortgage debt to ease a deepening U.S. recession. It also confirmed it would hold interest rates near zero for &quot;an extended period&quot;.&lt;/p&gt;

&lt;p&gt;&quot;We are very much aware that we don't want to be in the credit markets forever. We need to help them now, but we want to have an exit strategy, and allow those markets to recover and become again fully private sector,&quot; Bernanke said in response to an audience question after delivering a speech.&lt;/p&gt;

&lt;p&gt;It was the first time the Fed had bought longer-dated Treasuries since the 1960s. The news sent yields sharply lower, while on the foreign exchange markets it inflicted the biggest decline in the dollar in 25 years.&lt;/p&gt;

&lt;p&gt;Bernanke said the Fed had decided to expand its aid for the mortgage sector and buy Treasury securities to &quot;support the housing market, the broader economy.&quot;&lt;/p&gt;

&lt;p&gt;Economists said the Fed was effectively printing money by buying debt issued by the U.S. government, and then recycling all proceeds from this investment back to the Treasury.&lt;/p&gt;

&lt;p&gt;In terms of policy, it is equivalent to the quantitative easing strategies employed by Japan during the 1990s to end deflation and a decade of miserable economic performance.&lt;/p&gt;

&lt;p&gt;Quantitative easing was needed, with rates already at zero and deflation a genuine threat, Federal Reserve Bank of St Louis President James Bullard said in a presentation at a policy workshop at the Bank of France in Paris.&lt;/p&gt;

&lt;p&gt;&quot;Moving to quantitative approaches to policy is feasible and is going on right now,&quot; Bullard told the workshop, according to his presentation on the St Louis Fed website.&lt;/p&gt;

&lt;p&gt;He also emphasized the risks of deflation, citing the experience of Japan, where widespread declining prices following the collapse of a property and stock market bubble made the economic downturn much worse.&lt;/p&gt;

&lt;p&gt;&quot;Deflation is a real possibility in the current environment important near-term goal for monetary policy is to prevent this outcome,&quot; said Bullard, who is not a voting member of the Fed's policy-setting committee this year.&lt;/p&gt;</media:text>
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<title>AU suspends Madagascar, U.S. to halt aid</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2B320090320</link>
<pubDate>Fri, 20 Mar 2009 11:30:43 -0600</pubDate>
<description><![CDATA[ANTANANARIVO (Reuters) - The African Union suspended Madagascar on Friday and the United States said it planned to halt all but emergency aid, increasing pressure after the opposition took power with the support of the army.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Richard Lough&lt;/p&gt;

&lt;p&gt;ANTANANARIVO (Reuters) - The African Union suspended Madagascar on Friday and the United States said it planned to halt all but emergency aid, increasing pressure after the opposition took power with the support of the army.&lt;/p&gt;

&lt;p&gt;Opposition leader Andry Rajoelina was declared president of the Indian Ocean island on Tuesday after weeks of political unrest that have killed at least 135 people, devastated the economy and worried foreign investors.&lt;/p&gt;

&lt;p&gt;&quot;A civilian and military coup has taken place in Madagascar,&quot; said Burkina Faso's Ambassador Bruno Nongoma Zidouemba, chairman of the AU's peace and security council.&lt;/p&gt;

&lt;p&gt;He said the council &quot;decided to suspend the participation of Madagascar to the bodies and organs of the AU.&quot;&lt;/p&gt;

&lt;p&gt;Madagascar's elected president, Marc Ravalomanana, was forced out on Tuesday after opposition protests that won the support of the military. Ravalomanana's foes had accused him of autocratic rule and failing to address poverty.&lt;/p&gt;

&lt;p&gt;The United States said it regarded the takeover as a coup.&lt;/p&gt;

&lt;p&gt;&quot;In view of these developments, the United States is moving to suspend all non-humanitarian assistance to Madagascar,&quot; U.S. State Department spokesman Robert Wood told reporters.&lt;/p&gt;

&lt;p&gt;The AU said the new administration had six months to call an election, as provided for by the constitution. Rajoelina has set a 24-month transition. Zidouemba said the pan-African body would meet at a later date to discuss possible sanctions.&lt;/p&gt;

&lt;p&gt;SANCTIONS&lt;/p&gt;

&lt;p&gt;South African Defense Minister Charles Nqakula said the regional SADC's security troika had discussed the possibility of removing Madagascar from the group and would urge members to impose sanctions on the country at a meeting later this month.&lt;/p&gt;

&lt;p&gt;Roindefo Monja, prime minister in Rajoelina's transitional administration, told Reuters the new government would plead its case before the AU and the international community.&lt;/p&gt;

&lt;p&gt;&quot;What can they say about a fight for liberty and democracy? What crime has been committed?&quot; he said by telephone.&lt;/p&gt;

&lt;p&gt;&quot;We will explain to the whole world our cause ... The people demanded liberty and the military rallied to the popular movement but it did not seize power ... We are confident the international community will understand,&quot; he said.&lt;/p&gt;

&lt;p&gt;Monja added that he did not expect donor nations to cut aid, saying they were interested in Madagascar's long term stability.&lt;/p&gt;

&lt;p&gt;Norway, which gives about $14 million a year in aid, has frozen funding and has said other nations would follow suit.&lt;/p&gt;

&lt;p&gt;In a statement, the European Union's Czech presidency said the bloc was gravely concerned by Ravalomanana's ouster and condemned &quot;all attempts to seize power through undemocratic measures.&quot;&lt;/p&gt;

&lt;p&gt;French President Nicolas Sarkozy termed the takeover a coup and called for quick elections.&lt;/p&gt;

&lt;p&gt;&quot;It's the only way to come out of the crisis,&quot; he said after a summit of EU leaders. Sarkozy warned Madagascar's new leaders not to harm the former president.&lt;/p&gt;

&lt;p&gt;Ravalomanana handed power to the military, and they in turn appointed Rajoelina. Sacked as the mayor of Antananarivo, Rajoelina is nicknamed &quot;TGV&quot; after the fast French train because of his charismatic, rapid-fire personality.&lt;/p&gt;

&lt;p&gt;At 34, Rajoelina is Africa's newest and youngest president. He will be inaugurated on Saturday.&lt;/p&gt;

&lt;p&gt;He had accused Ravalomanana of graft and of losing touch with the majority of civilians who live on less than $2 a day.&lt;/p&gt;

&lt;p&gt;After recent coups in Mauritania and Guinea as well as the killing of Guinea-Bissau's leader, events in Madagascar raise doubts over the durability of democracies elsewhere in Africa.&lt;/p&gt;

&lt;p&gt;After three years without coups, there have been four violent changes of power on the continent in eight months. That has given cautious investors another reason to scale back commitments as the global economic crisis bites.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Tafessa Jarra and Barry Malone in Addis Ababa, Estelle Shirbon in Brussels and Serena Chaudhry in Johannesburg; Writing by Helen Nyambura-Mwaura; Editing by Jon Boyle)&lt;/p&gt;</media:text>
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<title>Madagascar to review deals with foreign investors</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2BR20090320</link>
<pubDate>Fri, 20 Mar 2009 11:30:38 -0600</pubDate>
<description><![CDATA[ANTANANARIVO (Reuters) - Madagascar's army-backed government says it will review contracts with foreign investors agreed by the previous administration if the economic climate improves, and revise any deals not in the public interest.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Richard Lough&lt;/p&gt;

&lt;p&gt;ANTANANARIVO (Reuters) - Madagascar's army-backed government says it will review contracts with foreign investors agreed by the previous administration if the economic climate improves, and revise any deals not in the public interest.&lt;/p&gt;

&lt;p&gt;On Tuesday, the Indian Ocean island's military appointed 34-year-old opposition leader Andry Rajoelina as president after weeks of deadly street protests.&lt;/p&gt;

&lt;p&gt;Madagascar's top court has endorsed the move, but it has drawn international disapproval. No country has officially recognized the new leadership so far.&lt;/p&gt;

&lt;p&gt;Benja Razafimahaleo, named finance minister by Africa's newest and youngest leader, said the contracts signed by Rajoelina's ousted predecessor, Marc Ravalomanana, were no good.&lt;/p&gt;

&lt;p&gt;&quot;The government gave up everything,&quot; Razafimahaleo told Reuters in an interview late on Thursday.&lt;/p&gt;

&lt;p&gt;He said Rajoelina, a former disc jockey and mayor of the capital Antananarivo, would take &quot;necessary precautions&quot; to ensure investments in the country's lucrative oil and mineral sectors were good for the masses. He did not elaborate.&lt;/p&gt;

&lt;p&gt;But he said the global economic downturn meant reviewing any of the deals with foreign investors would have to wait.&lt;/p&gt;

&lt;p&gt;&quot;Right now we are not well placed to re-negotiate establishment agreements because the climate is not particularly favorable for them either,&quot; Razafimahaleo said.&lt;/p&gt;

&lt;p&gt;On Thursday, a representative of QMM -- a subsidiary of UK-based Rio Tinto -- which started extracting ilmenite earlier this year, said the company was waiting for clear policies from Madagascar's new government.&lt;/p&gt;

&lt;p&gt;A day earlier Rajoelina said a deal for South Korea's Daewoo Logistics to lease over 1 million hectares of Madagascar for food crops was off.&lt;/p&gt;

&lt;p&gt;His takeover of power after weeks of turmoil that killed at least 135 people has also hit the $390 million tourism sector.&lt;/p&gt;

&lt;p&gt;Razafimahaleo said the new transitional authority would be open to foreign investors and that it was a priority to create an investor-friendly political environment. He has promised to hold elections within two years.&lt;/p&gt;

&lt;p&gt;&quot;Previous political crises have been poorly resolved, there are frustrations within our society, so the ground is not at all certain for investors,&quot; he said.&lt;/p&gt;

&lt;p&gt;Analysts warn that the world's fourth largest island, which has a politically volatile history, risks more instability in the coming months.&lt;/p&gt;

&lt;p&gt;&quot;WE WILL SURVIVE&quot;&lt;/p&gt;

&lt;p&gt;Rajoelina tapped into a deep vein of public anger at Ravalomanana's failure to tackle poverty, despite presiding over a period of steady economic growth.&lt;/p&gt;

&lt;p&gt;In December, Madagascar's finance ministry predicted economic growth of 7.5 percent in 2009. The new president has vowed to boost food security and create jobs.&lt;/p&gt;

&lt;p&gt;His rise to power has been met with a slew of criticism from the international community and African neighbors. Southern African countries have refused to recognize the new leadership and urged all other countries to reject him too.&lt;/p&gt;

&lt;p&gt;The EU said it depended what happened.&lt;/p&gt;

&lt;p&gt;&quot;In Madagascar we had a coup d'etat, not democratic elections, so for the moment we shall have to adopt a prudent approach and see how things develop,&quot; Czech Foreign Minister Karel Schwarzenberg, whose country holds the EU's rotating presidency, told reporters.&lt;/p&gt;

&lt;p&gt;Norway said an aid freeze imposed this week remained in force and said other unnamed donors had taken the same step.&lt;/p&gt;

&lt;p&gt;Razafimhaleo said 70 percent of Madagascar's budget was funded by donors. But he remained bullish that the country would cope if those governments cut support.&lt;/p&gt;

&lt;p&gt;&quot;If they suspend aid, it's not the end of the world, we will cope with the consequences and survive,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;We don't see why they should want to penalize a nation which has rid itself of a tyrant. That is like saying if Zimbabwe gets rid of Mugabe we will cut aid.&quot;&lt;/p&gt;

&lt;p&gt;Razafimhaleo, who said he had no forecast for economic growth this year but hazarded a guess at 5-6 percent, said Madagascar would be asking multilaterals for $500 million over the next two years. He said the money would be targeted at small, effective projects and not &quot;white elephants.&quot;&lt;/p&gt;

&lt;p&gt;&quot;Our priority is to ensure food security. That is to say to lower the prices of essential foodstuffs and to fight hunger in certain corners of the island,&quot; he said.&lt;/p&gt;

&lt;p&gt;(Editing by Daniel Wallis and Philippa Fletcher)&lt;/p&gt;</media:text>
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<title>TIMELINE: Madagascar's political turmoil</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J4TA20090320</link>
<pubDate>Fri, 20 Mar 2009 11:30:38 -0600</pubDate>
<description><![CDATA[(Reuters) - The African Union suspended Madagascar on Friday and the United States said it planned to halt all but emergency aid, increasing pressure after the opposition took power with the support of the army.]]></description>
<guid isPermaLink="false" >USTRE52J4TA20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - The African Union suspended Madagascar on Friday and the United States said it planned to halt all but emergency aid, increasing pressure after the opposition took power with the support of the army.&lt;/p&gt;

&lt;p&gt;Below is a timeline of recent events in Madagascar:&lt;/p&gt;

&lt;p&gt;January 27, 2009 - Opposition leader Andry Rajoelina calls for more anti-government protests after the worst day of street violence for years.&lt;/p&gt;

&lt;p&gt;February 3 - The government fires Rajoelina from his post as mayor of the capital city.&lt;/p&gt;

&lt;p&gt;February 7 - Security forces kill at least 25 people at an anti-government protest near the presidential palace.&lt;/p&gt;

&lt;p&gt;February 21 - Rajoelina meets President Ravalomanana for talks to resolve the power struggle.&lt;/p&gt;

&lt;p&gt;February 25 - Rajoelina pulls out of the talks after Ravalomanana fails to attend what would have been the fourth round of discussions to end weeks of civil unrest.&lt;/p&gt;

&lt;p&gt;March 8 - Mutiny breaks out in a military camp outside Antananarivo as Rajoelina spends a second day in hiding after a crackdown on his anti-government movement.&lt;/p&gt;

&lt;p&gt;March 13 - Dissident soldiers say they have deployed tanks in the capital and will use them to fight any hired mercenaries.&lt;/p&gt;

&lt;p&gt;March 14 - Rajoelina emerges from hiding to tell his supporters he is giving Ravalomanana four hours to step down.&lt;/p&gt;

&lt;p&gt;March 15 - Ravalomanana offers a referendum as a possible way out of the political standoff.&lt;/p&gt;

&lt;p&gt;March 16 - Soldiers seize the presidential palace and the central bank in a show of force, further isolating Ravalomanana.&lt;/p&gt;

&lt;p&gt;March 17 - Rajoelina takes power with the support of the army after Ravalomanana is forced out following opposition protests that won the support of the military. At least 135 people were killed in the protests. The African Union, which had rejected any unconstitutional change of power, says the military should not hand over to Rajoelina.&lt;/p&gt;

&lt;p&gt;March 18 - Madagascar's Constitutional Court issues a statement endorsing the takeover.&lt;/p&gt;

&lt;p&gt;March 19 - Mozambique, Angola and Swaziland, which make up the defense, political and security troika of SADC, which includes Madagascar, refuse to recognize the new leader. Norway, which gives about $14 million a year in aid, says it has frozen funding.&lt;/p&gt;

&lt;p&gt;March 20 - The African Union suspends Madagascar and says it has six months to call an election. The United States says it is moving to suspend all non-humanitarian assistance to Madagascar.&lt;/p&gt;</media:text>
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<title>Madoff stays jailed as appeal denied</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J43F20090320</link>
<pubDate>Fri, 20 Mar 2009 10:00:11 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Bernard Madoff lost his bid on Friday to be released from jail until his June sentencing for Wall Street's largest-ever investment fraud.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Martha Graybow&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Bernard Madoff lost his bid on Friday to be released from jail until his June sentencing for Wall Street's largest-ever investment fraud.&lt;/p&gt;

&lt;p&gt;The confessed swindler had challenged a judge's decision to immediately jail him after his dramatic guilty plea last week, but a federal appeals court denied his request for release after finding he was a potential flight risk and could have a secret pile of money to help him escape.&lt;/p&gt;

&lt;p&gt;The ruling means Madoff might never again see the luxury Manhattan penthouse where he had been placed under home confinement for three months following his December 11 arrest.&lt;/p&gt;

&lt;p&gt;He is now being held in a small concrete cell in a downtown Manhattan jail after confessing to a fraud that prosecutors say bilked investors of as much as $65 billion over 20 years. When the one-time Nasdaq chairman is sentenced, scheduled for June 16, he could be ordered to prison for the rest of his life.&lt;/p&gt;

&lt;p&gt;A three-judge panel of the appeals court said Madoff, 70, could try to flee if allowed out on bail, given his age and potential for a long prison sentence. He faces up to 150 years in prison after pleading guilty to fraud, money laundering and other charges.&lt;/p&gt;

&lt;p&gt;Madoff could have stashed money abroad to finance a potential escape, the U.S. Court of Appeals for the Second Circuit panel wrote in its ruling upholding District Judge Denny Chin's decision last week to jail Madoff immediately.&lt;/p&gt;

&lt;p&gt;&quot;The defendant has a residence abroad, and has had ample opportunity over a long period of time to secret substantial resources outside the country,&quot; the judges said.&lt;/p&gt;

&lt;p&gt;Madoff owns a home in France. While his attorneys argued his assets have been frozen and he has made no effort to flee, the appeals court said Judge Chin &quot;was not required to treat this defendant's financial representations as reliable.&quot;&lt;/p&gt;

&lt;p&gt;Madoff's attorneys had sought to allow him to remain out of jail on bail until sentencing, as is often permitted for white-collar criminal defendants who are not considered violent or risks of flight.&lt;/p&gt;

&lt;p&gt;&quot;We are disappointed and we respectfully disagree with the court's decision, but the court has ruled,&quot; defense attorney Ira Lee Sorkin said.&lt;/p&gt;

&lt;p&gt;Madoff could potentially seek a rehearing before the full appeals court, but such a bid is considered a long-shot and there would be no guarantee the full court would agree to even hear the case.&lt;/p&gt;

&lt;p&gt;Sorkin declined comment on possible next steps and would not discuss how Madoff is faring in jail.&lt;/p&gt;

&lt;p&gt;The ruling came a day after the appeals court held oral arguments on Madoff's bail appeal.&lt;/p&gt;

&lt;p&gt;Prosecutor Marc Litt had argued that while Madoff was granted bail immediately following his arrest -- a decision that enraged many of his defrauded clients, who wanted him incarcerated immediately -- his guilty plea &quot;had changed the landscape&quot; and raised the incentive for the swindler to flee instead of go to prison.&lt;/p&gt;

&lt;p&gt;Litt said that while Madoff had been under constant monitoring at his apartment under his bail terms, there were at least three exits in Madoff's building that could be used to escape, and security guards &quot;can fall asleep while watching video monitors&quot; and potentially be bribed.&lt;/p&gt;

&lt;p&gt;(Reporting by Martha Graybow, editing by Dave Zimmerman and Gerald E. McCormick)&lt;/p&gt;</media:text>
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<title>U.S. Budget Office offers darker economic and deficit outlook</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J3SR20090320</link>
<pubDate>Fri, 20 Mar 2009 09:11:00 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. congressional budget experts on Friday offered a darker economic and budget outlook, which could complicate President Barack Obama's efforts to convince lawmakers to pass his $3.55 trillion budget plan for 2010.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Jeremy Pelofsky&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - U.S. congressional budget experts on Friday offered a darker economic and budget outlook, which could complicate President Barack Obama's efforts to convince lawmakers to pass his $3.55 trillion budget plan for 2010.&lt;/p&gt;

&lt;p&gt;The Congressional Budget Office forecast a record $1.8 trillion deficit for the fiscal year that ends September 30 under Obama's budget proposal -- or 13.1 percent of gross domestic product.&lt;/p&gt;

&lt;p&gt;The budget experts projected the deficit would then ebb some to $1.4 trillion for 2010 -- or 9.6 percent of GDP.&lt;/p&gt;

&lt;p&gt;Since taking office in January, the Obama administration has been shoveling billions of dollars in a bid to reverse a steep downward spiral in the U.S. economy and prop up the struggling financial system.&lt;/p&gt;

&lt;p&gt;&quot;Although the economy is likely to continue to deteriorate for some time,&quot; the CBO said, the $787 billion economic stimulus package &quot;and very aggressive actions by the Federal Reserve and the Treasury are projected to help end the recession in the fall of 2009.&quot;&lt;/p&gt;

&lt;p&gt;CBO also issued gloomier forecasts for the U.S. economy, projecting that it will contract 3 percent in 2009 before growing 2.9 percent next year and expanding 4 percent in 2011.&lt;/p&gt;

&lt;p&gt;The massive deficit forecasts come after Obama submitted in February his $3.55 trillion budget plan for fiscal 2010, which includes huge new programs to address healthcare and curb greenhouse gas emissions.&lt;/p&gt;

&lt;p&gt;CBO also revised its forecast about accumulating deficits over the next 10 years, saying it would total $9.3 trillion from 2010 to 2019, which drew immediate fire from Republicans who have criticized Obama's budget for its massive new spending and tax increases on the wealthy.&lt;/p&gt;

&lt;p&gt;&quot;This debt buildup is due to massive spending that we cannot afford, and deficits that go unaddressed,&quot; said Senator Judd Gregg, the senior Republican on the Senate Budget Committee.&lt;/p&gt;

&lt;p&gt;In January, the CBO forecast almost $1.2 trillion in red ink for fiscal 2009 and $703 billion for fiscal 2010, but that came before the economic stimulus package Congress passed in February to kick-start the ailing economy.&lt;/p&gt;

&lt;p&gt;Obama's budget projected a $1.75 trillion deficit for fiscal 2009 and $1.17 trillion for 2010. The House and Senate Budget Committees were awaiting the latest CBO estimates before they begin to craft their budget plans next week.&lt;/p&gt;

&lt;p&gt;Obama's budget outline to Congress last month included a forecast of almost $7 trillion in deficits through 2019 -- or $2.3 trillion less than CBO's projection.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Richard Cowan; Editing by Jan Paschal)&lt;/p&gt;</media:text>
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<title>No disruption to shipping in Strait of Hormuz after collision</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J3XR20090320</link>
<pubDate>Fri, 20 Mar 2009 08:59:29 -0600</pubDate>
<description><![CDATA[DUBAI (Reuters) - Shipping was not disrupted in the Strait of Hormuz after a nuclear-powered U.S. submarine and another U.S. vessel collided on Friday, the U.S. Navy said.]]></description>
<guid isPermaLink="false" >USTRE52J3XR20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;DUBAI (Reuters) - Shipping was not disrupted in the Strait of Hormuz after a nuclear-powered U.S. submarine and another U.S. vessel collided on Friday, the U.S. Navy said.&lt;/p&gt;

&lt;p&gt;&quot;There is no disruption to shipping traffic in the Strait. Both ships are operating under their own power and have passed through the strait,&quot; said Lieutenant Nathan Christensen, U.S. Fifth Fleet spokesman.&lt;/p&gt;

&lt;p&gt;(Reporting by Raissa Kasolowsky; Editing by Charles Dick)&lt;/p&gt;</media:text>
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<title>FACTBOX: The Strait of Hormuz, key oil shipping route</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J3UC20090320</link>
<pubDate>Fri, 20 Mar 2009 08:45:49 -0600</pubDate>
<description><![CDATA[(Reuters) - A nuclear-powered U.S. submarine and another U.S. vessel collided on Friday in the Strait of Hormuz but there was no damage to the atomic propulsion unit, the U.S. Navy said.]]></description>
<guid isPermaLink="false" >USTRE52J3UC20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - A nuclear-powered U.S. submarine and another U.S. vessel collided on Friday in the Strait of Hormuz but there was no damage to the atomic propulsion unit, the U.S. Navy said.&lt;/p&gt;

&lt;p&gt;Around 40 percent of globally traded oil leaves the Gulf region through the Strait of Hormuz, a choke point at the southern end of the Gulf, flanked by the coastlines of Iran and Oman. Here are some facts about the Strait of Hormuz.&lt;/p&gt;

&lt;p&gt;* WHERE IS THE STRAIT?&lt;/p&gt;

&lt;p&gt;-- A narrow bend of water separating Oman and Iran connects the biggest Gulf oil producers, such as Saudi Arabia, with the Gulf of Oman and the Arabian Sea.&lt;/p&gt;

&lt;p&gt;-- At its narrowest point, the Strait is only 34 miles across.&lt;/p&gt;

&lt;p&gt;-- The Strait consists of 2-mile (3.2-km) wide navigable channels for inbound and outbound tanker traffic as well as a 2-mile-wide buffer zone.&lt;/p&gt;

&lt;p&gt;* OIL SHIPMENTS:&lt;/p&gt;

&lt;p&gt;-- Oil movements through the Strait account for roughly 40 percent of all seaborne oil traded in the world, according to the U.S. Energy Information Administration (EIA).&lt;/p&gt;

&lt;p&gt;-- In July 2008, the International Energy Agency (IEA) estimated that more than 15 million barrels per day (bpd) of crude passed through the narrow channel on tankers.&lt;/p&gt;

&lt;p&gt;-- Ninety percent of oil exported from Gulf producers is carried on oil tankers through the Strait.&lt;/p&gt;

&lt;p&gt;-- The bulk of the oil exported through the Strait of Hormuz travels to Asia, the United States, and Western Europe. Some three-quarters of all Japan's oil needs pass through this Strait.&lt;/p&gt;

&lt;p&gt;-- An additional 2 million barrels of oil products, including fuel oil, are exported through the passage daily, as well as liquefied natural gas (LNG).&lt;/p&gt;

&lt;p&gt;-- Exports from the world's largest LNG exporter, Qatar, pass through the Strait en route to Asia and Europe, totaling 31 million tons a year.&lt;/p&gt;

&lt;p&gt;-- The EIA predicts oil exports passing through the strait will double to between 30 million and 34 million bpd by 2020.&lt;/p&gt;

&lt;p&gt;-- One of U.S. Central Command's key missions in the Gulf is to ensure the free flow of oil and energy supplies.&lt;/p&gt;

&lt;p&gt;* WAR:&lt;/p&gt;

&lt;p&gt;-- Between 1984 and 1987, a &quot;Tanker War&quot; took place between Iran and Iraq, where each nation fired on the other's oil tankers bound for their respective ports. Foreign-flagged vessels were caught in the crossfire.&lt;/p&gt;

&lt;p&gt;-- Shipping in the Gulf dropped by 25 percent because of the exchange, forcing the intervention of the United States to secure the shipping lanes.&lt;/p&gt;

&lt;p&gt;* STRATEGIC CORRIDOR:&lt;/p&gt;

&lt;p&gt;-- Merchant ships carrying grains, iron ore, sugar, perishables and containers full of finished goods also pass through the strategic sea corridor en route to Gulf countries and major ports like Dubai.&lt;/p&gt;

&lt;p&gt;-- Heavy amour and military supplies for the U.S. armed forces in Iraq and other Gulf countries pass through the channel aboard U.S. Navy-owned, U.S.-flagged and foreign-flagged ships.&lt;/p&gt;

&lt;p&gt;Sources: International Energy Agency (IEA), U.S. Energy Information Administration (EIA), United Nations Conference on Trade and Development (UNCTAD), GlobalSecurity.org, U.S. Navy's Military Sealift Command, Clarkson shipping consultancy.&lt;/p&gt;

&lt;p&gt;(Complied by Alex Lawler and David Cutler)&lt;/p&gt;</media:text>
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<title>Gaza group revises final death toll figures</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J3TS20090320</link>
<pubDate>Fri, 20 Mar 2009 08:44:11 -0600</pubDate>
<description><![CDATA[GAZA (Reuters) - Israel's 22-day offensive in the Hamas-ruled Gaza Strip killed 1,417 people including 926 civilians, 255 police officers and 236 fighters, a Palestinian rights group said, in a revision of its earlier figures.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;GAZA (Reuters) - Israel's 22-day offensive in the Hamas-ruled Gaza Strip killed 1,417 people including 926 civilians, 255 police officers and 236 fighters, a Palestinian rights group said, in a revision of its earlier figures.&lt;/p&gt;

&lt;p&gt;The Palestinian Center for Human Rights (www.pchrgaza.org) issued a revised tally of a March 12 &quot;final&quot; account, which was accompanied by a list of names of all the dead.&lt;/p&gt;

&lt;p&gt;The rights group revised its tally children killed from 288 to 313 and lowered its count of woman killed from 121 to 116.&lt;/p&gt;

&lt;p&gt;Its March 12 report said there were 1,434 people killed, including 960 civilians, 239 police officers and 235 fighters.&lt;/p&gt;

&lt;p&gt;(Writing by Douglas Hamilton; editing by Angus MacSwan)&lt;/p&gt;</media:text>
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<title>U.S. nuclear submarine collides in strait near Iran</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J3KY20090320</link>
<pubDate>Fri, 20 Mar 2009 08:16:11 -0600</pubDate>
<description><![CDATA[DUBAI (Reuters) - A nuclear-powered U.S. submarine and another U.S. vessel collided Friday in the Strait of Hormuz bordering Iran, but there was no damage to the atomic propulsion unit, the U.S. Navy said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Raissa Kasolowsky&lt;/p&gt;

&lt;p&gt;DUBAI (Reuters) - A nuclear-powered U.S. submarine and another U.S. vessel collided Friday in the Strait of Hormuz bordering Iran, but there was no damage to the atomic propulsion unit, the U.S. Navy said.&lt;/p&gt;

&lt;p&gt;Fifteen sailors were slightly injured in the collision between the submarine USS Hartford and an amphibious vessel, USS New Orleans, the Navy said in a statement.&lt;/p&gt;

&lt;p&gt;It was the second collision involving a U.S. nuclear submarine in the Strait of Hormuz in just over two years.&lt;/p&gt;

&lt;p&gt;&quot;There is no damage to the nuclear propulsion plant of the Hartford,&quot; U.S. Fifth Fleet spokesman Lieutenant Nathan Christensen told Reuters.&lt;/p&gt;

&lt;p&gt;The Strait of Hormuz, a narrow stretch of water separating Oman and Iran, connects the biggest Gulf oil producers, such as Saudi Arabia, with the Gulf of Oman and the Arabian Sea.&lt;/p&gt;

&lt;p&gt;Around 40 percent of globally traded oil leaves the region through the Strait, which borders Iran.&lt;/p&gt;

&lt;p&gt;The collision coincided with intense diplomatic activity between the United States and Iran, whose relations have been strained by Tehran's nuclear program that the West fears is to make an atomic bomb -- an accusation Tehran denies.&lt;/p&gt;

&lt;p&gt;U.S. President Barack Obama has made his warmest offer yet of a fresh start in relations with Iran, which cautiously welcomed the overture but said Friday it was waiting for &quot;practical steps,&quot; not talk.&lt;/p&gt;

&lt;p&gt;Relations have been almost deep-frozen for decades, and remain blighted by differences over Iran's nuclear program, Iraq, Israel and other issues.&lt;/p&gt;

&lt;p&gt;NIGHT-TIME COLLISION&lt;/p&gt;

&lt;p&gt;Asked how the latest collision in the strait occurred, Christensen said:&lt;/p&gt;

&lt;p&gt;&quot;It was a night-time event and the submarine was submerged at the time.&lt;/p&gt;

&lt;p&gt;&quot;There is no disruption to shipping traffic in the Strait. Both ships are operating under their own power and have passed through the strait,&quot; he said.&lt;/p&gt;

&lt;p&gt;In January, 2007, the U.S. nuclear submarine USS Newport News and a Japanese tanker collided in the Strait of Hormuz.&lt;/p&gt;

&lt;p&gt;No one was hurt in that incident and the submarine commander was removed from his post due to &quot;a lack of confidence in his ability to command.&quot;&lt;/p&gt;

&lt;p&gt;The 15 injured in the latest collision in the early hours of Friday were aboard the submarine Hartford, and the accident caused an oil spill.&lt;/p&gt;

&lt;p&gt;&quot;New Orleans suffered a ruptured fuel tank, which resulted in an oil spill of approximately 25,000 gallons of diesel fuel marine,&quot; the U.S. Navy statement read, adding the incident was being investigated.&lt;/p&gt;

&lt;p&gt;&quot;Both the submarine and the ship are currently on regularly scheduled deployments to the U.S. Navy Central Command area of responsibility conducting Maritime Security Operations,&quot; it added.&lt;/p&gt;

&lt;p&gt;The collision pushed up oil prices, which subsequently hovered above a four-month high Friday at $52 a barrel.&lt;/p&gt;

&lt;p&gt;In July 2008, the International Energy Agency estimated that more than 15 million barrels per day (bpd) of crude passed through the narrow strait on tankers.&lt;/p&gt;

&lt;p&gt;(Editing by Charles Dick)&lt;/p&gt;</media:text>
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<title>U.S. SEC probes subprime, builders, hedge funds</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J3JP20090320</link>
<pubDate>Fri, 20 Mar 2009 08:05:59 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Several U.S. investigations into subprime lenders involve possible insider trading before announcements of negative news about the lender, a Securities and Exchange Commission member said on Friday.]]></description>
<guid isPermaLink="false" >USTRE52J3JP20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Several U.S. investigations into subprime lenders involve possible insider trading before announcements of negative news about the lender, a Securities and Exchange Commission member said on Friday.&lt;/p&gt;

&lt;p&gt;SEC Commissioner Elisse Walter said the agency is looking at whether subprime lenders properly accounted for loan loss reserves, impairment of asset values and whether they overvalued foreclosed property and other assets.&lt;/p&gt;

&lt;p&gt;In remarks to a congressional hearing, Walter also said the SEC was looking at whether subprime lenders properly disclosed information, including data regarding loan quality, credit risks and the amount and types of subprime exposure.&lt;/p&gt;

&lt;p&gt;She also told the U.S. House of Representatives Financial Services Committee that the SEC has &quot;dozens&quot; of active investigations involving individuals associated with hedge funds.&lt;/p&gt;

&lt;p&gt;&quot;The SEC has become particularly concerned about possible hedge fund-offering frauds, where fraudsters use the nontransparent and largely unregulated status of hedge funds to conceal large Ponzi schemes,&quot; Walter said.&lt;/p&gt;

&lt;p&gt;The SEC, which has been criticized for not uncovering Bernard Madoff's $65 billion investment fraud earlier, has filed enforcement cases in the past two years against more than 75 Ponzi schemes -- where early investors are paid from money coming in from new investors.&lt;/p&gt;

&lt;p&gt;Walter said the SEC is concerned with possible misconduct at &quot;feeder funds,&quot; which invested their own investors' funds with other hedge fund managers.&lt;/p&gt;

&lt;p&gt;Walter also said the huge number of liquidations and suspensions of redemptions by hedge funds in the past year has created a concern as to whether hedge fund advisers are favoring their own interests above others.&lt;/p&gt;

&lt;p&gt;There is concern over whether principals, employees or favored investors of the hedge fund adviser may have received &quot;preferential redemptions&quot; from the fund at issue, she said.&lt;/p&gt;

&lt;p&gt;In February, SEC staff said the agency expected to file additional subprime-related enforcement actions and had dozens of active investigations underway.&lt;/p&gt;

&lt;p&gt;Walter said on Friday the agency was also probing the possible intentional mispricing of securities and the knowing underwriting of securities based on collateral likely to default.&lt;/p&gt;

&lt;p&gt;In addition, credit rating agencies, home builders and companies that provided retail mortgages to consumers were being probed.&lt;/p&gt;

&lt;p&gt;&quot;An investigation of a home builder might entail possible financial fraud, such as improper quarterly earnings management or improper recognition of revenue on model home sales and leasebacks,&quot; she said.&lt;/p&gt;

&lt;p&gt;RUMORS AND MANIPULATION&lt;/p&gt;

&lt;p&gt;Amid extreme market volatility in 2008, the SEC and other securities regulators announced plans to crack down on rumor-mongering that threatens financial institutions.&lt;/p&gt;

&lt;p&gt;Since then, the SEC has opened a group of related investigations into the possible manipulation of the securities of six large financial issues involved in the recent market turbulence, Walter said. The companies were not identified.&lt;/p&gt;

&lt;p&gt;In October 2008, the agency required large hedge funds, broker-dealers and other large investors to file statements under oath regarding trading and market activity in the securities and credit derivatives of financial firms.&lt;/p&gt;

&lt;p&gt;SEC staff have been analyzing the data and focusing on claims that credit derivatives such as credit default swaps were being used to manipulate equity prices. Walter said that investigation has been split into &quot;six separate investigations, which are proceeding as expeditiously as possible.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Rachelle Younglai and Karey Wutkowski; Editing by Tim Dobbyn and Brian Moss)&lt;/p&gt;</media:text>
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<title>Germany's Merkel welcomes Obama's Iran message</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J3CL20090320</link>
<pubDate>Fri, 20 Mar 2009 07:24:11 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - German Chancellor Angela Merkel said on Friday U.S. President Barack Obama's video message to Iran reflected the European view and added that she hoped Tehran would take up his offer.]]></description>
<guid isPermaLink="false" >USTRE52J3CL20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;BRUSSELS (Reuters) - German Chancellor Angela Merkel said on Friday U.S. President Barack Obama's video message to Iran reflected the European view and added that she hoped Tehran would take up his offer.&lt;/p&gt;

&lt;p&gt;&quot;I think the message reflects exactly what the Europeans have always wanted -- that an offer is being made to Iran and... (I hope) that this is being used,&quot; Merkel said after a meeting by EU leaders in Brussels.&lt;/p&gt;

&lt;p&gt;(Reporting by Kerstin Gehmlich; editing by Mark John)&lt;/p&gt;</media:text>
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<title>Soldier says rabbis pushed &quot;religious war&quot; in Gaza</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J36V20090320</link>
<pubDate>Fri, 20 Mar 2009 06:56:54 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - Rabbis in the Israeli army told battlefield troops in January's Gaza offensive they were fighting a "religious war" against gentiles, according to one army commander's account published Friday.]]></description>
<guid isPermaLink="false" >USTRE52J36V20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;JERUSALEM (Reuters) - Rabbis in the Israeli army told battlefield troops in January's Gaza offensive they were fighting a &quot;religious war&quot; against gentiles, according to one army commander's account published Friday.&lt;/p&gt;

&lt;p&gt;&quot;Their message was very clear: we are the Jewish people, we came to this land by a miracle, God brought us back to this land and now we need to fight to expel the gentiles who are interfering with our conquest of this holy land,&quot; he said.&lt;/p&gt;

&lt;p&gt;The account by Ram, a pseudonym to shield the soldier's identity, was published by the left-leaning Haaretz newspaper in the second day of revelations that have rocked the Israeli military. (www.haaretz.com &quot;Shooting and Crying, 2009&quot;).&lt;/p&gt;

&lt;p&gt;They were leaked from a Feb 13 meeting of armed forces members to share their Gaza experiences.&lt;/p&gt;

&lt;p&gt;Some veterans, alumni of an Israel Defense Force (IDF) military academy, told of the killing of civilians and their impression that deep contempt for Palestinians pervaded the ranks of the Israeli forces.&lt;/p&gt;

&lt;p&gt;Haaretz and the daily Maariv, which also published the accounts, quoted over half a dozen soldiers and airmen. The institution's director, Danny Zamir, confirmed that Thursday's published accounts were authentic.&lt;/p&gt;

&lt;p&gt;In longer excerpts in its Friday &quot;Week's End&quot; edition, the daily quoted 'Ram' as saying his impression of the 22-day operation was &quot;the feeling of an almost religious mission.&quot;&lt;/p&gt;

&lt;p&gt;There was a &quot;huge gap between what the Education Corps sent out and what the IDF rabbinate sent out,&quot; he said. The corps's pamphlets told the history of Israel's fighting in Gaza from 1948 to the present, but the rabbinate's message imparted the sense that &quot;this operation was a religious war.&quot;&lt;/p&gt;

&lt;p&gt;The rabbinate of the IDF provides religious services, including overseeing preparation of kosher food, providing prayerbooks and prayer sessions and religious counseling to any soldier wants to participate. Involvement is not obligatory.&lt;/p&gt;

&lt;p&gt;RELIGION IN THE MILITARY&lt;/p&gt;

&lt;p&gt;The Palestinian Center for Human Rights (PCHR) has put the Palestinian death toll during the war at 1,417 -- 926 civilians, 236 fighters and 255 police officers. Israeli officials have disputed those figures. Thirteen Israelis were killed.&lt;/p&gt;

&lt;p&gt;Israel faced global criticism over its assaults in densely populated areas of Gaza in the campaign, launched with the declared aim of ending rocket attacks from Hamas and other Islamist militant groups in Gaza aimed at its southern towns.&lt;/p&gt;

&lt;p&gt;Hamas clerics have often called for &quot;Zionist&quot; blood to be spilled. The Islamists carried out dozens of suicide bombings in Israel before and during a Palestinian uprising that erupted in 2000, blowing up buses and cafes.&lt;/p&gt;

&lt;p&gt;The Jewish state tries to balance the needs of its non-observant majority with religious tradition. While the military does not provide data on the disposition of personnel, observers report a disproportionately high number of soldiers and officers wearing skullcaps -- a symbol of Jewish faith.&lt;/p&gt;

&lt;p&gt;One week after the Gaza offensive ended on January18 Israeli human rights group Yesh Din called on Defense Minister Ehud Barak to dismiss the chief chaplain, Rabbi Avichai Rontzki, who holds the rank of brigadier general.&lt;/p&gt;

&lt;p&gt;It said he had distributed a booklet to soldiers fighting in the Gaza conflict quoting an ultra-nationalist Israeli rabbi as saying that showing mercy toward a &quot;cruel enemy&quot; was &quot;terribly immoral&quot; and advising soldiers they were fighting &quot;murderers.&quot;&lt;/p&gt;

&lt;p&gt;Barak responded to the IDF revelations Thursday by repeating Israel's description of its armed forces as the most moral in the world. The IDF said its judge advocate-general had ordered an investigation.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Dan Williams)&lt;/p&gt;

&lt;p&gt;(Writing by Douglas Hamilton; editing by Philippa Fletcher)&lt;/p&gt;

&lt;p&gt;(For blogs and links on Israeli politics and other Israeli and Palestinian news, go to http://blogs.reuters.com/axismundi)&lt;/p&gt;</media:text>
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<title>Citigroup CFO to run troubled bank unit</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2UN20090320</link>
<pubDate>Fri, 20 Mar 2009 06:50:27 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Citigroup Inc, in a significant management shake-up, named Gary Crittenden to run a unit housing underperforming and toxic assets the bank wants to get rid of, and tapped Edward Kelly to replace him as chief financial officer.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090320&amp;t=2&amp;i=9361567&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Jonathan Stempel&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Citigroup Inc, in a significant management shake-up, named Gary Crittenden to run a unit housing underperforming and toxic assets the bank wants to get rid of, and tapped Edward Kelly to replace him as chief financial officer.&lt;/p&gt;

&lt;p&gt;Crittenden on Friday was named chairman of Citi Holdings and will work with its interim chief executive, Michael Corbat, to sell or wind down $850 billion in assets. The unit is separate from Citicorp, whose $1.1 trillion of assets include businesses Citigroup wants to keep, such as retail and investment banking, transaction services, and Citi Private Bank.&lt;/p&gt;

&lt;p&gt;The appointments are &quot;the first good news we've had in a long time from Citigroup,&quot; said Michael Holland, a money manager at Holland &amp;amp; Co in New York. &quot;Crittenden has earned the confidence of the financial community, and Kelly is considered a very solid, competent citizen. It is a welcome relief.&quot;&lt;/p&gt;

&lt;p&gt;Crittenden joined Citigroup as CFO in March 2007 after holding the same position at American Express Co, Monsanto Co and Sears Roebuck &amp;amp; Co.&lt;/p&gt;

&lt;p&gt;Kelly, known as Ned, was head of global banking, including Citi Private Bank, and joined in February 2008 from private equity firm Carlyle Group. Before that, he was chief executive of Mercantile Bankshares Corp, a Baltimore lender now owned by PNC Financial Services Group Inc.&lt;/p&gt;

&lt;p&gt;Citigroup Chief Executive Vikram Pandit is trying to restore the third-largest U.S. bank to health after $37.5 billion in losses over the last five quarters.&lt;/p&gt;

&lt;p&gt;The bank has taken $45 billion of taxpayer money to bolster capital, and the government is sharing in losses on $300.8 billion of troubled assets, which are housed in Citi Holdings. The government is expected to soon become Citigroup's largest investor with a possible 36 percent stake.&lt;/p&gt;

&lt;p&gt;Citigroup did not return requests for comment.&lt;/p&gt;

&lt;p&gt;&quot;They are incredibly important positions,&quot; said Anton Schutz, a portfolio manager at Mendon Capital Advisors in Rochester, New York. &quot;Gary can look terrific if he makes assets disappear quickly at good prices, and Ned has an important role in repairing the balance sheet and working with the government, which has become increasingly dangerous for banks.&quot;&lt;/p&gt;

&lt;p&gt;SPLIT&lt;/p&gt;

&lt;p&gt;Pandit split Citigroup in two in January, formally marking the demise of the financial supermarket model that Sanford &quot;Sandy&quot; Weill used to create and build Citigroup in the late 1990s and early this decade.&lt;/p&gt;

&lt;p&gt;&quot;Citi Holdings is essentially a marketing operation to get rid of problem assets,&quot; said Bert Ely, an independent banking consultant in Alexandria, Virginia. &quot;It falls on Crittenden to get top dollar for the assets they're getting rid of, and that's not easy in this market.&quot;&lt;/p&gt;

&lt;p&gt;Among the Citi Holdings businesses are the Smith Barney brokerage, which is merging into a joint venture with Morgan Stanley's brokerage; the CitiFinancial and CitiMortgage finance operations; the Primerica insurance unit; and the Nikko Cordial unit in Japan.&lt;/p&gt;

&lt;p&gt;While Citigroup treats Citicorp and Citi Holdings as separate operations, both are included in overall results. Pandit last week said Citigroup made money in January and February, surprising analysts.&lt;/p&gt;

&lt;p&gt;Ely said Crittenden, who is in his mid-50s, could use Citi Holdings as a springboard. &quot;It positions him for bigger things, whether at Citigroup or somewhere else,&quot; he said. &quot;If he does it well, then the headhunters will be banging on his door.&quot;&lt;/p&gt;

&lt;p&gt;In morning trading, Citigroup shares were up 12 cents at $2.72 on the New York Stock Exchange. They traded above $50 as recently as July 2007.&lt;/p&gt;

&lt;p&gt;(Reporting by Jonathan Stempel; editing by Jeffrey Benkoe and John Wallace)&lt;/p&gt;</media:text>
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<title>EU agrees doubling of crisis fund: Brown</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J32W20090320</link>
<pubDate>Fri, 20 Mar 2009 06:37:55 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - European Union leaders agreed on Friday to double crisis funds available to members of the bloc that are not in the euro zone to 50 billion euros ($68.5 billion), British Prime Minister Gordon Brown.]]></description>
<guid isPermaLink="false" >USTRE52J32W20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;BRUSSELS (Reuters) - European Union leaders agreed on Friday to double crisis funds available to members of the bloc that are not in the euro zone to 50 billion euros ($68.5 billion), British Prime Minister Gordon Brown.&lt;/p&gt;

&lt;p&gt;&quot;We have agreed a doubling of balance of payments assistance,&quot; Brown told a news conference.&lt;/p&gt;

&lt;p&gt;The fund, from which Hungary received 6.5 billion euros and Latvia 3.1 billion, is designed for non-euro EU members with balance of payment problems. Its loans have been part of wider packages backed by the International Monetary Fund.&lt;/p&gt;

&lt;p&gt;(Reporting by Frank Prenesti; writing by Mark John)&lt;/p&gt;</media:text>
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<title>Iran leader says world can't stop nuclear progress</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J31420090320</link>
<pubDate>Fri, 20 Mar 2009 06:35:02 -0600</pubDate>
<description><![CDATA[TEHRAN (Reuters) - Iran has shown world powers they cannot block its nuclear progress, Supreme Leader Ayatollah Ali Khamenei said on Friday, but he made no mention of a new message by U.S. President Barack Obama to his country.]]></description>
<guid isPermaLink="false" >USTRE52J31420090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Zahra Hosseinian&lt;/p&gt;

&lt;p&gt;TEHRAN (Reuters) - Iran has shown world powers they cannot block its nuclear progress, Supreme Leader Ayatollah Ali Khamenei said on Friday, but he made no mention of a new message by U.S. President Barack Obama to his country.&lt;/p&gt;

&lt;p&gt;In a separate recorded speech to mark the Iranian New Year, President Mahmoud Ahmadinejad said global powers had reached a &quot;dead end.&quot; But he too made no mention of Obama's videotaped offer of a &quot;new beginning&quot; of diplomatic engagement.&lt;/p&gt;

&lt;p&gt;Khamenei said Iran, the world's fourth-largest oil producer, had managed to limit the impact of the global economic downturn and of sanctions imposed on it over its nuclear activities.&lt;/p&gt;

&lt;p&gt;Iran and the United States are embroiled in a dispute over Tehran's nuclear program, which Washington and its allies suspect is aimed at making bombs. Tehran says the program is for peaceful power generation.&lt;/p&gt;

&lt;p&gt;After taking office in January and in a major shift in U.S. policy, Obama offered to extend a hand of peace to Iran if it &quot;unclenched its fist.&quot;&lt;/p&gt;

&lt;p&gt;In an unprecedented video message released to mark Iranian New Year, he called for &quot;engagement that is honest and grounded in mutual respect.&quot;&lt;/p&gt;

&lt;p&gt;Iran cautiously welcomed the overture on Friday, saying it wanted to see &quot;practical steps.&quot;&lt;/p&gt;

&lt;p&gt;Khamenei hailed tests last month of Iran's first nuclear power plant, at Bushehr, as an important development.&lt;/p&gt;

&lt;p&gt;&quot;This is the results of the progress of our scientists ... which persuaded the whole world that the path of Iran's nuclear progress could not be blocked,&quot; said Khamenei, Iran's top authority with final say on all matters of state.&lt;/p&gt;

&lt;p&gt;Iran says its needs nuclear energy so that it can export more of its huge oil and gas reserves. Its refusal to halt work which can have both civilian and military purposes has drawn three rounds of limited U.N. sanctions since late 2006.&lt;/p&gt;

&lt;p&gt;Like other oil producers, it is facing declining export revenues due to a sharp drop in crude prices since mid-2008. Analysts also say the sanctions are deterring foreign investors.&lt;/p&gt;

&lt;p&gt;Khamenei said Iranian officials had managed &quot;to control to a great extent the negative consequences of this wave.&quot;&lt;/p&gt;

&lt;p&gt;But he also told Iranians they were consuming too much. &quot;A great deal of our country's resources ... is wasted on our excessive consumption in all areas,&quot; he said.&lt;/p&gt;

&lt;p&gt;Ahmadinejad last week said the capitalist system was close to collapse. In his latest speech he said the economic crisis showed the failure of Western policies.&lt;/p&gt;

&lt;p&gt;&quot;Global powers have reached a complete dead end. A dead end in the field of theories, management and implementation,&quot; Ahmadinejad said.&lt;/p&gt;

&lt;p&gt;&quot;Big security and political crises in the world became deeper and deeper ... and today the big economic crisis is a sign of the complete failure of the policies, theories and expansionist goals of the world's material powers,&quot; he said.&lt;/p&gt;

&lt;p&gt;(Writing by Fredrik Dahl; editing by Andrew Roche)&lt;/p&gt;</media:text>
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<title>EU to provide 75 billion euros IMF top-up funds: Sarkozy</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2ZM20090320</link>
<pubDate>Fri, 20 Mar 2009 06:30:35 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - European leaders agreed on Friday the European Union would provide 75 billion euros ($102.7 billion) in top-up funds for the International Monetary Fund (IMF), French President Nicolas Sarkozy said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;BRUSSELS (Reuters) - European leaders agreed on Friday the European Union would provide 75 billion euros ($102.7 billion) in top-up funds for the International Monetary Fund (IMF), French President Nicolas Sarkozy said.&lt;/p&gt;

&lt;p&gt;Sarkozy spoke at a news briefing after an EU summit in Brussels.&lt;/p&gt;

&lt;p&gt;(reporting by Estelle Shirbon, writing by David Brunnstrom)&lt;/p&gt;</media:text>
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<title>Netanyahu, seeking consensus, gets extension on government</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I7YH20090320</link>
<pubDate>Fri, 20 Mar 2009 05:49:08 -0600</pubDate>
<description><![CDATA[JERUSALEM (Reuters) - Israel's right-wing Prime Minister-designate Benjamin Netanyahu was given two more weeks on Friday to form a government, allowing further time to try to balance his coalition by including the center-left Labor party.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090320&amp;t=2&amp;i=9357647&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Dan Williams&lt;/p&gt;

&lt;p&gt;JERUSALEM (Reuters) - Israel's right-wing Prime Minister-designate Benjamin Netanyahu was given two more weeks on Friday to form a government, allowing further time to try to balance his coalition by including the center-left Labor party.&lt;/p&gt;

&lt;p&gt;Israel's February 10 election gave rise to a rightist majority bloc in parliament, prompting President Shimon Peres to task Netanyahu's Likud with forming a government within 28 days.&lt;/p&gt;

&lt;p&gt;Friday's extension sets April 3 as his new deadline. If unmet, Peres could choose to designate someone else.&lt;/p&gt;

&lt;p&gt;Though Netanyahu can clinch alliances with right-wing factions giving him control over most Knesset seats, he wants a broader, more stable coalition with consensus over how -- or if -- to pursue U.S.-sponsored peace talks with the Palestinians.&lt;/p&gt;

&lt;p&gt;The 59-year-old ex-premier is also mindful of the global economic crisis and Israel's preoccupation with Iran's nuclear program, which it views as a clear threat.&lt;/p&gt;

&lt;p&gt;&quot;I could have presented you, and the people of Israel, with a government on Sunday, a good government. But I chose to ask for the extension in order to make every effort to bring about a unity government, as I promised,&quot; Netanyahu told Peres as they met before reporters at the ceremonial president's residence.&lt;/p&gt;

&lt;p&gt;Such dispensations are commonplace in Israeli governance, where the multitude of political parties makes coalitions inevitable. Peres, granting the request, said he &quot;very much appreciated&quot; Netanyahu's plans.&lt;/p&gt;

&lt;p&gt;Labor's leader Ehud Barak, the outgoing Defense Minister and former military chief, has said he would ask his party's executive for a mandate to join Netanyahu's government. Labor was expected to vote on the motion next week.&lt;/p&gt;

&lt;p&gt;LABOUR'S LOVE LOST&lt;/p&gt;

&lt;p&gt;Signing on with Likud could rescue Labor -- and Barak, who is also a former prime minister -- from political entropy.&lt;/p&gt;

&lt;p&gt;Once Israel's dominant party, Labor placed fourth in the February election, winning just 13 seats. Likud won 27 and centrist Kadima of outgoing Foreign Minister Tzipi Livni polled 28 seats, while far-right Yisrael Beiteinu won 15.&lt;/p&gt;

&lt;p&gt;Livni has so far ruled out a Kadima alliance with Likud, telling her party she would not provide a &quot;fig-leaf&quot; for an ultranationalist cabinet that was not serious about peace talks.&lt;/p&gt;

&lt;p&gt;Netanyahu wants diplomacy to focus on the Palestinians' economy and security forces, rather than their demand for sovereignty. The Palestinians have rejected this approach.&lt;/p&gt;

&lt;p&gt;Barak told Israel Radio on Thursday that Netanyahu's overtures &quot;deserve to be considered.&quot; He suggested Labor could soften Netanyahu's hard-line team and avoid conflict with the United States over the Palestinian track and how to handle Iran.&lt;/p&gt;

&lt;p&gt;U.S. President Barack Obama has begun engaging the Islamic regime in Tehran diplomatically to resolve the impasse over its nuclear plans, which Israel says are military. Iran denies that.&lt;/p&gt;

&lt;p&gt;Labor and Kadima back negotiations for a Palestinian state in the West Bank and Gaza Strip, which Israel captured in a 1967 war. Israel quit Gaza in 2005, after which it was taken over by Hamas Islamists opposed to peace talks and locked in a power struggle with U.S.-backed Palestinian President Mahmoud Abbas.&lt;/p&gt;

&lt;p&gt;Israeli media said Netanyahu offered Labor five ministerial jobs, including having Barak stay on as Defense minister.&lt;/p&gt;

&lt;p&gt;But Labor faces a dilemma in that Netanyahu has pledged the job of foreign minister to Yisrael Beiteinu leader Avigdor Lieberman, whose hawkish talk about the Jewish state's Arab citizens, and neighbors, has stirred controversy abroad.&lt;/p&gt;

&lt;p&gt;Half of Labor's lawmakers vowed after talks on Thursday to fight any bid to join ranks with Netanyahu, which the party's faction leader, Eitan Cabel, insisted in broadcast remarks would &quot;spell death&quot; for Labor's future.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Allyn Fisher-Ilan; Editing by Douglas Hamilton and Samia Nakhoul)&lt;/p&gt;</media:text>
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<item>
<title>Q&amp;A: What can the EU do to help E.Europe?</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2HT20090320</link>
<pubDate>Fri, 20 Mar 2009 05:38:38 -0600</pubDate>
<description><![CDATA[(Reuters) - European Union leaders meeting in Brussels on Friday discussed action on the financial crisis, including concerns that some eastern European countries may need help.]]></description>
<guid isPermaLink="false" >USTRE52J2HT20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - European Union leaders meeting in Brussels on Friday discussed action on the financial crisis, including concerns that some eastern European countries may need help.&lt;/p&gt;

&lt;p&gt;A summit draft showed the bloc was ready to help European countries in trouble on a case-by-case basis and to keep under review the ceiling of a 25-billion-euro ($33.7-billion) EU crisis fund which has already been used by Latvia and Hungary.&lt;/p&gt;

&lt;p&gt;Following are possible measures the EU could take:&lt;/p&gt;

&lt;p&gt;WHAT CAN THE EU DO TO HELP STATES IN EU BUT NOT EURO ZONE&lt;/p&gt;

&lt;p&gt;* The EU may grant further loans to its members outside the euro from the so-called medium-term financial assistance facility, designed under EU law for countries &quot;seriously threatened with difficulties in their balance of current payments or capital movements.&quot;&lt;/p&gt;

&lt;p&gt;Diplomats said EU leaders had agreed to double the fund to 50 billion euros ($68.47 billion), although the measure still needs to be discussed by the bloc's finance ministers.&lt;/p&gt;

&lt;p&gt;Hungary has received 6.5 billion euros from the fund and Latvia 3.1 billion as part of wider packages backed by the International Monetary Fund. Romania wants to tap the fund.&lt;/p&gt;

&lt;p&gt;The fund is not designed to rescue banks or help the real economy and any change in its objectives would have to be unanimously approved by the EU's 27 member states.&lt;/p&gt;

&lt;p&gt;WHAT OTHER EU CASH COULD BE USED?&lt;/p&gt;

&lt;p&gt;* The European Commission has pushed forward the release of EU regional aid funds for east European members, which should make several extra billion euros easily available in 2009-10.&lt;/p&gt;

&lt;p&gt;The EU has earmarked some 160 billion euros of such funds for those countries in 2007-2013, with most of them to be released gradually, project by project.&lt;/p&gt;

&lt;p&gt;The funds are part of the EU budget, worth some 125 billion annually, which is fixed well in advance.&lt;/p&gt;

&lt;p&gt;EBRD, EIB, WORLD BANK&lt;/p&gt;

&lt;p&gt;* The World Bank, the European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) have launched a joint program to lend up to 24.5 billion euros in the region.&lt;/p&gt;

&lt;p&gt;The two-year plan would provide quick, large-scale financing to banks and ensure that companies, especially small- and medium-sized enterprises, get access to capital.&lt;/p&gt;

&lt;p&gt;WHAT OTHER POSSIBILITIES ARE THERE?&lt;/p&gt;

&lt;p&gt;* Other aid, be it loans, cash injections or standby facilities, would have to be extended by individual EU member states or groups of them.&lt;/p&gt;

&lt;p&gt;This would be done outside the EU legal framework, although regular EU meetings could be used to negotiate the aid. Large, rich EU members are likely to be more keen to help fellow EU members than other countries, to preserve the political and economic coherence of the 27-nation bloc.&lt;/p&gt;

&lt;p&gt;WHAT IF A SUBSIDIARY OF A WESTERN EUROPEAN BANK WAS&lt;/p&gt;

&lt;p&gt;THREATENED WITH COLLAPSE IN ONE OF THE NON-EURO ZONE EU MEMBERS?&lt;/p&gt;

&lt;p&gt;* There is no fixed EU procedure.&lt;/p&gt;

&lt;p&gt;As was the case with banking groups Fortis or Dexia, there is likely to be an emergency meeting of representatives of governments of the host country and the home country of the bank as well as supervisory authorities and shareholders to hammer out a deal on who pays what to keep the subsidiary afloat.&lt;/p&gt;

&lt;p&gt;Government aid for individual banks would, however, have to be in line with the EU's competition rules.&lt;/p&gt;

&lt;p&gt;Austria and Hungary are lobbying have lobbied for a massive aid fund for central and east European banks, but have so far gained little support.&lt;/p&gt;

&lt;p&gt;(Writing by Marcin Grajewski)&lt;/p&gt;</media:text>
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<title>FACTBOX: EU leaders' messages to G20 summit on April 2</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2HG20090320</link>
<pubDate>Fri, 20 Mar 2009 05:38:38 -0600</pubDate>
<description><![CDATA[(Reuters) - European Union leaders on Friday agreed their position for a G20 summit on April 2 on how to tackle the global economic downturn.]]></description>
<guid isPermaLink="false" >USTRE52J2HG20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - European Union leaders on Friday agreed their position for a G20 summit on April 2 on how to tackle the global economic downturn.&lt;/p&gt;

&lt;p&gt;Below is a summary of the main EU messages to the Group of 20 industrial and developing countries, according to a final draft EU summit conclusions obtained by Reuters.&lt;/p&gt;

&lt;p&gt;COORDINATING INTERNATIONAL ACTION&lt;/p&gt;

&lt;p&gt;It calls on the G20 to:&lt;/p&gt;

&lt;p&gt;* coordinate fiscal stimulus measures and implement them quickly. Reverse stimuli once the recovery takes hold.&lt;/p&gt;

&lt;p&gt;* restore credit flows.&lt;/p&gt;

&lt;p&gt;* ensure fiscal measures help longer-term objectives such as improving productivity.&lt;/p&gt;

&lt;p&gt;* avoid protectionism. Reach a Doha trade deal.&lt;/p&gt;

&lt;p&gt;* include small and medium-sized enterprises in aid schemes, in both the developed and the developing world. Support a multilateral initiative on trade finance.&lt;/p&gt;

&lt;p&gt;PREVENTING FUTURE CRISES&lt;/p&gt;

&lt;p&gt;The IMF should:&lt;/p&gt;

&lt;p&gt;* monitor and promote the Action Plan adopted at the G20 Washington summit in November 2008.&lt;/p&gt;

&lt;p&gt;* double resources so its members can handle balance of payments problems.&lt;/p&gt;

&lt;p&gt;* reform decision procedures and management selection to reflect better the economic weight of member states. The same call goes out to the World Bank&lt;/p&gt;

&lt;p&gt;REGULATING FINANCIAL MARKETS&lt;/p&gt;

&lt;p&gt;The G20 should:&lt;/p&gt;

&lt;p&gt;* strengthen transparency and accountability in the financial sector oversight.&lt;/p&gt;

&lt;p&gt;* ensure appropriate regulation or oversight on all financial markets, products and participants that may present a systemic risk, notably private pools of capital, hedge funds and alternative investment vehicles.&lt;/p&gt;

&lt;p&gt;* better regulate credit rating agencies.&lt;/p&gt;

&lt;p&gt;* make credit derivatives markets more transparent&lt;/p&gt;

&lt;p&gt;* fight tax evasion, financial crime, money laundering and terrorism financing. Ensure better cooperation from tax havens.&lt;/p&gt;

&lt;p&gt;* adopt sound principles on corporate governance and wages to prevent excessive risk taking.&lt;/p&gt;

&lt;p&gt;* improve supervisory cooperation, in particular through the establishing colleges of supervisors for all major cross-border financial institutions before the end of 2009.&lt;/p&gt;

&lt;p&gt;* improve regulation relating to banks' capital, to ensure banks build additional buffers of resources in good times, so that they are better equipped to face bad times.&lt;/p&gt;

&lt;p&gt;* improve prudential rules and accounting standards.&lt;/p&gt;

&lt;p&gt;SUPPORTING DEVELOPING COUNTRIES&lt;/p&gt;

&lt;p&gt;The G20 should:&lt;/p&gt;

&lt;p&gt;* promote global development&lt;/p&gt;

&lt;p&gt;* honor commitments to increase development aid. Reaffirm commitment to deliver on the Millennium Development Goals. Meet aid-for-trade pledges and give duty-free and quota-free access to least developed countries.&lt;/p&gt;

&lt;p&gt;* use other official sources of financing, such as export credits, investment guarantees and development-oriented support in research and technology, peace and security, migration and climate change.&lt;/p&gt;

&lt;p&gt;* enable Multilateral Development Banks to help counter the effects of the crisis in developing countries.&lt;/p&gt;

&lt;p&gt;(Reporting by Jan Strupczewski; editing by Marcin Grajewski)&lt;/p&gt;</media:text>
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<title>Taliban chief Omar &quot;not in Pakistan's Baluchistan&quot;</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2ES20090320</link>
<pubDate>Fri, 20 Mar 2009 05:30:29 -0600</pubDate>
<description><![CDATA[QUETTA, Pakistan (Reuters) - Taliban leader Mullah Omar is not hiding in Pakistan's Baluchistan province whose people will resist any U.S. attempt to extend its war against militancy there, the province's chief minister said on Friday.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090321&amp;t=2&amp;i=9366361&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Gul Yousafzai&lt;/p&gt;

&lt;p&gt;QUETTA, Pakistan (Reuters) - Taliban leader Mullah Omar is not hiding in Pakistan's Baluchistan province whose people will resist any U.S. attempt to extend its war against militancy there, the province's chief minister said on Friday.&lt;/p&gt;

&lt;p&gt;The United States is considering expanding its covert war in Pakistan into Baluchistan, the New York Times reported on Tuesday.&lt;/p&gt;

&lt;p&gt;Afghan and foreign officials in Kabul have long said they believe several top Taliban leaders, including Omar, are hiding in Baluchistan. Pakistan, a U.S. ally in the campaign against militancy, denies that.&lt;/p&gt;

&lt;p&gt;&quot;Mullah Omar is not in Baluchistan, he's in Afghanistan,&quot; Baluchistan chief minister Mohammad Aslam Raisanitold reporters in the provincial capital, Quetta.&lt;/p&gt;

&lt;p&gt;&quot;If the CIA has any evidence of that they should tell us and we'll get him and send him there,&quot; he said, referring to the U.S. Central Intelligence Agency.&lt;/p&gt;

&lt;p&gt;The United States has stepped up strikes on militants in northwest Pakistan's ethnic Pashtun tribal areas over the past year, mostly with CIA-operated drones that fire missiles.&lt;/p&gt;

&lt;p&gt;Some U.S. officials say the missile strikes in the tribal areas have forced some Taliban and al Qaeda leaders to flee toward Quetta, making them more vulnerable, the Times said.&lt;/p&gt;

&lt;p&gt;Pakistan objects to the missile strikes saying they are not only a violation of its sovereignty but complicate its efforts to tackle militants.&lt;/p&gt;

&lt;p&gt;&quot;As we have been saying all along, we believe such attacks are counter-productive,&quot; Foreign Office spokesman Abdul Basit said this week, when asked about the Times report.&lt;/p&gt;

&lt;p&gt;&quot;They involve collateral damage and they are not helpful in our efforts to win heats and minds,&quot; he said.&lt;/p&gt;

&lt;p&gt;CIA director Leon Panetta is due in Islamabad on Friday and is expected to discuss the drone strikes with Pakistani leaders, Pakistani media reported.&lt;/p&gt;

&lt;p&gt;&quot;OPPOSE AND RESIST&quot;&lt;/p&gt;

&lt;p&gt;Raisani said there were two types of Taliban: the violent ones, fighting NATO and U.S. forces in Afghanistan, and peaceful ones studying at religious schools in Baluchistan. The word Taliban means religious students.&lt;/p&gt;

&lt;p&gt;&quot;The Taliban who are here are studying peacefully,&quot; he said.&lt;/p&gt;

&lt;p&gt;Pakistan supported the Taliban until the September 11, 2001, attacks on the United States and Afghanistan says it believes some elements in Pakistan still secretly back the militants for long-term strategic reasons.&lt;/p&gt;

&lt;p&gt;Raisani said people of Baluchistan would oppose any expansion of the U.S. war into their province: &quot;Baluchis are united and they will oppose and resist if drone attacks are carried out.&quot;&lt;/p&gt;

&lt;p&gt;U.S. drones have carried out more than 30 drone strikes since early 2008 when the United States, frustrated by an intensifying insurgency in Afghanistan getting support from the Pakistani side of the border, began attacking with greater frequency.&lt;/p&gt;

&lt;p&gt;Eliminating militant support from Pakistani hideouts is seen as essential for winning the war in Afghanistan.&lt;/p&gt;

&lt;p&gt;The strikes have killed about 300 people including several mid-level al Qaeda members, according to a tally of reports from Pakistani officials and residents of border regions.&lt;/p&gt;

&lt;p&gt;The United States rarely comments on the strikes.&lt;/p&gt;

&lt;p&gt;&quot;We've done some serious damage to al Qaeda over the last number of months,&quot; U.S. Defense Secretary Robert Gates said this week, without confirming any missile attacks against al Qaeda targets.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Kamran Haider; Writing by Robert Birsel; Editing by Sanjeev Miglani)&lt;/p&gt;</media:text>
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<title>INSTANT VIEW: Reaction to Obama's &quot;new beginning&quot; offer to Iran</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2DW20090320</link>
<pubDate>Fri, 20 Mar 2009 05:28:35 -0600</pubDate>
<description><![CDATA[WASHINGTON/TEHRAN (Reuters) - U.S. President Barack Obama offered Iran a "new beginning" of diplomatic engagement on Friday in an unprecedented videotaped message, after decades of U.S. hostility to the Islamic Republic.]]></description>
<guid isPermaLink="false" >USTRE52J2DW20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON/TEHRAN (Reuters) - U.S. President Barack Obama offered Iran a &quot;new beginning&quot; of diplomatic engagement on Friday in an unprecedented videotaped message, after decades of U.S. hostility to the Islamic Republic.&lt;/p&gt;

&lt;p&gt;Following are Iranian, European Union and other reactions:&lt;/p&gt;

&lt;p&gt;PRESIDENTIAL AIDE ALIAKBAR JAVANFEKR&lt;/p&gt;

&lt;p&gt;&quot;The Obama administration so far has just talked. By words and talking the ... problems between Iran and America cannot be solved.&quot;&lt;/p&gt;

&lt;p&gt;&quot;Nowruz (the Iranian New Year which falls today) is a sign of fundamental development in nature and Obama should learn from this to make fundamental changes in his policy toward Iran.&quot;&lt;/p&gt;

&lt;p&gt;&quot;The Iranian nation has shown that it can forget hasty behavior but we are waiting for practical steps by the United States.&quot;&lt;/p&gt;

&lt;p&gt;EUROPEAN UNION FOREIGN POLICY CHIEF JAVIER SOLANA:&lt;/p&gt;

&lt;p&gt;&quot;I hope that this will open a new chapter in relations with Iran&quot; and that Iran will pay close attention to Obama's message.&lt;/p&gt;

&lt;p&gt;TRITA PARSI, PRESIDENT OF NATIONAL IRANIAN AMERICAN COUNCIL:&lt;/p&gt;

&lt;p&gt;&quot;Obama's speech will be the topic of conversation at every New Year gathering in Iran today.&lt;/p&gt;

&lt;p&gt;&quot;Obama is sending a signal of strategic intent that America's objective is to find constructive relations between the US and Iran, i.e. ending the destructive enmity that has existed for three decades.&lt;/p&gt;

&lt;p&gt;&quot;This is important since tactical collaboration with Iran in Afghanistan is unlikely to be achieved unless America assures the Iranians that the broader long-term objective is to find a positive relationship between the two countries.&lt;/p&gt;

&lt;p&gt;&quot;By using the term &quot;Islamic Republic,&quot; Obama is signaling America's acceptance of Iran's revolution. This does not mean America will not welcome democratization in Iran, but it does signal that the policy of regime change has been cast aside.&lt;/p&gt;

&lt;p&gt;&quot;Obama is focusing on behavioral change, not regime change ... America recognizes that a country and civilization of Iran's size cannot be isolated and contained inevitably. By pointing out that this role comes with responsibilities, he signals Iran that its rightful role is within reach if its policies change. This is a significant break with Bush Administration policies.&lt;/p&gt;

&lt;p&gt;&quot;Obama not only expresses tremendous respect and recognition of the Iranian nation and civilization, he also demonstrates that he recognizes that outreach to the Arab world is different from outreach to Iran. He shows an important understanding of the uniqueness of the Iranian civilization, a point that likely won't be lost on the Iranians.&quot;&lt;/p&gt;

&lt;p&gt;MOHAMMAD HASSAN KHANI, ASSISTANT PROFESSOR OF INTERNATIONAL&lt;/p&gt;

&lt;p&gt;RELATIONS:&lt;/p&gt;

&lt;p&gt;Obama's message is &quot;a positive gesture&quot; which could help pave the way for an opening between the two countries. But there is a need for concrete change in U.S. behavior toward Iran. Obama's appeal, after he extended (on March 12) economic sanctions against Tehran &quot;is somehow conflicting and making people here confused.&quot;&lt;/p&gt;

&lt;p&gt;SEEED LAYLAZ, EDITOR OF BUSINESS DAILY SARMAYEH:&lt;/p&gt;

&lt;p&gt;Obama's statement was &quot;a significant move&quot; toward improved relations, but &quot;it is not enough. They should have taken more brave steps toward better ties with Iran.&quot; An easing of U.S. sanctions could be one such measure.&lt;/p&gt;

&lt;p&gt;KARIM MAKDISI, AMERICAN UNIV OF BEIRUT INTERNATIONAL&lt;/p&gt;

&lt;p&gt;RELATIONS TEACHER:&lt;/p&gt;

&lt;p&gt;&quot;Obama is trying to create this self-perception about dialogue and engagement, but when are you going to go from talking about it to actually doing it? Until that moment comes, everyone has to hold judgment.&quot;&lt;/p&gt;

&lt;p&gt;&quot;It's positive in so far as if you want to solve this problem, this is how you are going to do it. But again, until there is something substantive and concrete, the jury is out.&quot;&lt;/p&gt;

&lt;p&gt;OUSAMA SAFA, DIRECTOR, LEBANESE Center FOR POLICY STUDIES:&lt;/p&gt;

&lt;p&gt;&quot;This is a good sign, particularly since an extremist government is being formed in Israel, elections are coming in Lebanon and Iran, and there is a general interest in keeping a detente going. Although it is a timid overture, it is a good beginning, particularly for Lebanon. It is a good diplomatic beginning.&quot;&lt;/p&gt;</media:text>
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<title>Iran can forget U.S. &quot;hasty behavior&quot;: official says</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J2AH20090320</link>
<pubDate>Fri, 20 Mar 2009 05:15:10 -0600</pubDate>
<description><![CDATA[TEHRAN (Reuters) - Iran has shown it can forget "hasty behavior" but is awaiting practical U.S. steps, a senior Iranian official said on Friday after U.S. President Barack Obama issued an unprecedented videotaped appeal to the country.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;TEHRAN (Reuters) - Iran has shown it can forget &quot;hasty behavior&quot; but is awaiting practical U.S. steps, a senior Iranian official said on Friday after U.S. President Barack Obama issued an unprecedented videotaped appeal to the country.&lt;/p&gt;

&lt;p&gt;&quot;The Iranian nation has shown that it can forget hasty behavior but we are awaiting practical steps by the United States,&quot; Aliakbar Javanfekr, an aide to Iranian President Mahmoud Ahmadinejad, told Reuters. He did not elaborate.&lt;/p&gt;

&lt;p&gt;(Reporting by Parisa Hafezi)&lt;/p&gt;</media:text>
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<title>EU agrees new IMF loans, eastern aid top-up</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J1CR20090320</link>
<pubDate>Fri, 20 Mar 2009 04:26:08 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - European Union leaders agreed on Friday to provide 75 billion euros ($103 billion) in new loans to the International Monetary Fund as part of a G20 effort to boost the lender's firepower for fighting global recession.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Frank Prenesti and Huw Jones&lt;/p&gt;

&lt;p&gt;BRUSSELS (Reuters) - European Union leaders agreed on Friday to provide 75 billion euros ($103 billion) in new loans to the International Monetary Fund as part of a G20 effort to boost the lender's firepower for fighting global recession.&lt;/p&gt;

&lt;p&gt;The leaders also agreed at a two-day summit to double a crisis fund for struggling EU member states to 50 billion euros ($68.5 billion). Latvia and Hungary have already had access to the fund and Romania is expected to seek help.&lt;/p&gt;

&lt;p&gt;But a draft summit declaration brushed off U.S. pressure to increase the size of European economic stimulus plans and said the priority remained to see through existing recovery plans and exercise budgetary restraint.&lt;/p&gt;

&lt;p&gt;&quot;Now it is time to implement all those packages and promises, so I don't think it's time to create some more packages,&quot; Estonian Prime Minister Andrus Ansip told reporters at the Brussels summit.&lt;/p&gt;

&lt;p&gt;British Prime Minister Gordon Brown, who will host a summit of the Group of Twenty leading and emerging economies on April 2, said the new loans to the IMF were to be provided for emergency situations.&lt;/p&gt;

&lt;p&gt;&quot;It is money that is to be made available if it is needed as a loan to the IMF. ... It allows the IMF to intervene where countries are in difficulty,&quot; he told reporters.&lt;/p&gt;

&lt;p&gt;Irish Prime Minister Brian Cowen and others dismissed comments by a German parliamentarian who said the European Central Bank had drawn up a plan to prevent member states that use the euro currency going bankrupt, with Ireland and Greece top candidates for aid.&lt;/p&gt;

&lt;p&gt;The European Central Bank said information about its role in the purported plan, outlined by Otto Bernhardt of Germany's ruling conservative party, were untrue.&lt;/p&gt;

&lt;p&gt;RESISTANCE TO PRESSURE ON STIMULUS PLANS&lt;/p&gt;

&lt;p&gt;The 27-nation EU faces growing unemployment, falling production and increasing signs of public discontent over the economic crisis.&lt;/p&gt;

&lt;p&gt;Unions said 3 million people took part in protests in France on Thursday and governments have fallen in two member states, Latvia and Belgium, since the global economic crisis began.&lt;/p&gt;

&lt;p&gt;But EU leaders made clear they would not follow U.S. moves to boost existing recovery measures after the Federal Reserve pledged an extra $1 trillion on Wednesday to help the U.S. economy.&lt;/p&gt;

&lt;p&gt;Reflecting European calls for tighter regulation to avoid a repeat of the financial crisis, the final draft called for &quot;appropriate regulation and oversight of all financial markets, products and participants that may present a systemic risk.&quot;&lt;/p&gt;

&lt;p&gt;French President Nicolas Sarkozy said EU leaders had agreed to implement reforms this year based on proposals put forward by the De Larosiere group, a high-level European consultative panel, last month.&lt;/p&gt;

&lt;p&gt;&quot;On Larosiere, legislative decisions by the end of the year,&quot; Sarkozy said.&lt;/p&gt;

&lt;p&gt;(Editing by Timothy Heritage)&lt;/p&gt;</media:text>
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<item>
<title>Iran says wants fundamental U.S. policy change</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J1QZ20090320</link>
<pubDate>Fri, 20 Mar 2009 03:39:12 -0600</pubDate>
<description><![CDATA[TEHRAN (Reuters) - Iran welcomed an appeal by U.S. President Barack Obama for better relations, but said Washington should "realize its previous mistakes" and make an effort to correct them, an aid to the Iranian president said on Friday.]]></description>
<guid isPermaLink="false" >USTRE52J1QZ20090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;TEHRAN (Reuters) - Iran welcomed an appeal by U.S. President Barack Obama for better relations, but said Washington should &quot;realize its previous mistakes&quot; and make an effort to correct them, an aid to the Iranian president said on Friday.&lt;/p&gt;

&lt;p&gt;Aliakbar Javanfekr, an aide to President Mahmoud Ahmadinejad, said after Obama issued an unprecedented videotaped appeal to the Islamic Republic, that the new U.S. president should fundamentally change Washington's policy toward Iran.&lt;/p&gt;

&lt;p&gt;&quot;We welcome the interest of the American government to settle differences (with Iran). The American government should realize its previous mistakes and make an effort to amend them in order to put aside differences.&lt;/p&gt;

&lt;p&gt;&quot;By fundamentally changing its behavior America can offer us a friendly hand. So far what we have received have been unfriendly fists,&quot; Javanfekr told Reuters.&lt;/p&gt;

&lt;p&gt;&quot;Unlimited sanctions which still continue and have been renewed by the United States are wrong and need to be reviewed,&quot; he said.&lt;/p&gt;

&lt;p&gt;Javanfekr also singled out U.S. backing for Israel, Iran's arch-foe: &quot;Supporting Israel is not a friendly gesture and the New Year is an opportunity for the United States to change this policy.&quot;&lt;/p&gt;

&lt;p&gt;He was referring to the Iranian New Year celebrations, which falls on Friday afternoon.&lt;/p&gt;

&lt;p&gt;(Reporting by Parisa Hafezi; Writing by Fredrik Dahl)&lt;/p&gt;</media:text>
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<item>
<title>FTC to curb mortgage-lending abuse: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J17520090320</link>
<pubDate>Fri, 20 Mar 2009 03:21:45 -0600</pubDate>
<description><![CDATA[(Reuters) - The U.S. Federal Trade Commission (FTC) will use new authority to bar lending practices by mortgage brokers who have deceived borrowers, Bloomberg said, citing the FTC's chairman.]]></description>
<guid isPermaLink="false" >USTRE52J17520090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - The U.S. Federal Trade Commission (FTC) will use new authority to bar lending practices by mortgage brokers who have deceived borrowers, Bloomberg said, citing the FTC's chairman.&lt;/p&gt;

&lt;p&gt;A $410 billion spending package passed by Congress in March authorizes the FTC to ban abusive practices such as deceptive advertising and servicing procedures, FTC Chairman Jon Leibowitz told the news agency in an interview.&lt;/p&gt;

&lt;p&gt;With the U.S. economy in recession, &quot;we have to step up our vigilance on predatory practices in the financial services area&quot; as &quot;there are a lot of American consumers that are hurting,&quot; the agency cited Leibowitz as saying.&lt;/p&gt;

&lt;p&gt;Leibowitz also vowed more aggressive enforcement of antitrust laws to challenge business practices by companies which harm competition, the agency said.&lt;/p&gt;

&lt;p&gt;(Reporting by S. John Tilak in Bangalore; Editing by David Holmes)&lt;/p&gt;</media:text>
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<item>
<title>EU hopes Obama appeal creates new start with Iran</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J1N020090320</link>
<pubDate>Fri, 20 Mar 2009 03:15:13 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - European Union foreign policy chief Javier Solana said on Friday he hoped Iran would pay close attention to a videotaped appeal for a "new beginning" in ties with Iran by U.S. President Barack Obama.]]></description>
<guid isPermaLink="false" >USTRE52J1N020090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;BRUSSELS (Reuters) - European Union foreign policy chief Javier Solana said on Friday he hoped Iran would pay close attention to a videotaped appeal for a &quot;new beginning&quot; in ties with Iran by U.S. President Barack Obama.&lt;/p&gt;

&lt;p&gt;&quot;I hope that that will open a new chapter in relations with Iran,&quot; he told reporters before heading into an EU summit, noting that the West still had to tackle a dispute with Tehran over its nuclear program.&lt;/p&gt;

&lt;p&gt;(Reporting by David Brunnstrom; writing by Mark John)&lt;/p&gt;</media:text>
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<title>FACTBOX: U.S. disputes with Iran mask shared interests</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J1N820090320</link>
<pubDate>Fri, 20 Mar 2009 03:15:13 -0600</pubDate>
<description><![CDATA[March 20, Reuters - U.S. President Barack Obama extended an olive branch to Iran on Friday, offering a "new beginning" of diplomatic engagement after three decades of mutual hostility.]]></description>
<guid isPermaLink="false" >USTRE52J1N820090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;March 20, Reuters - U.S. President Barack Obama extended an olive branch to Iran on Friday, offering a &quot;new beginning&quot; of diplomatic engagement after three decades of mutual hostility.&lt;/p&gt;

&lt;p&gt;His videotaped appeal, timed to mark the Iranian New Year, made no specific offers, but marked a sharp shift of tone from former President George W. Bush's efforts to isolate the Islamic Republic, which he had labeled part of an &quot;axis of evil.&quot;&lt;/p&gt;

&lt;p&gt;In an earlier overture, the Obama administration said it would invite Tehran to an international conference on Afghanistan planned for March 31, in a gesture which recognizes the Shi'ite power's influence in its troubled neighbor.&lt;/p&gt;

&lt;p&gt;Washington and Tehran are deeply divided on many issues, but also share important interests in Afghanistan and elsewhere.&lt;/p&gt;

&lt;p&gt;AFGHANISTAN&lt;/p&gt;

&lt;p&gt;They are vying for influence in Afghanistan, but both oppose the hard-line Sunni Taliban and al Qaeda, back President Hamid Karzai and want stability, reconstruction and an end to drug trafficking. However, the U.S. commander of international forces in Afghanistan, General David McKiernan, this month accused Iran of training and funding the Taliban insurgency and of being complicit in the narcotics trade. Iran denies all this -- and views Obama's talk of reaching out to &quot;moderate&quot; Taliban insurgents as cutting across its interests.&lt;/p&gt;

&lt;p&gt;In 2001, Iran worked with the United States to forge a new Afghan government to replace Taliban rule, toppled by a U.S.-led military campaign after al Qaeda's September 11 attacks on U.S. cities. But Bush's &quot;axis of evil&quot; rhetoric swiftly squelched any hopes this could lead to a rapprochement with Iran.&lt;/p&gt;

&lt;p&gt;IRAQ&lt;/p&gt;

&lt;p&gt;Iraq is a main arena for U.S.-Iranian rivalry. Iran feels threatened by the U.S. military presence and the United States is determined not to let Iraq fall into an Iranian orbit -- a possibility that only opened up after Bush's 2003 invasion removed Iraqi leader Saddam Hussein, one of Iran's main enemies.&lt;/p&gt;

&lt;p&gt;Yet Iran and the United States share an interest in Iraq's stability, territorial integrity and sectarian harmony. Both favor elections -- seen by Iran as empowering Iraqi Shi'ite parties and others over which it has some leverage.&lt;/p&gt;

&lt;p&gt;ISLAMIST MILITANCY&lt;/p&gt;

&lt;p&gt;The United States and Iran have common foes in al Qaeda and the Taliban, which are both Sunni jihadi groups violently opposed to Iran's dominant Shi'ite sect, as well as to the West.&lt;/p&gt;

&lt;p&gt;However, Iran supports Islamist groups fighting Israel, notably Lebanon's Shi'ite Hezbollah and the Palestinian Sunni Hamas group, which it views as legitimate resistance movements. Washington calls them terrorist organizations and describes the Islamic Republic as the most active state sponsor of terrorism.&lt;/p&gt;

&lt;p&gt;NUCLEAR ACTIVITY&lt;/p&gt;

&lt;p&gt;The nuclear dispute generates only friction. The United States believes Iran is seeking a nuclear weapons capability and must be thwarted because of the perceived threat this would pose to Israel and other U.S. allies. Iran insists its program is only for civilian purposes and refuses to halt uranium enrichment, part of the full nuclear fuel cycle.&lt;/p&gt;

&lt;p&gt;Iran's anti-Israel rhetoric and unanswered queries about its nuclear work have deepened U.S. mistrust. Tehran views U.S.-led diplomatic pressure and military threats as a challenge to its national pride, technological prowess and economic stability.&lt;/p&gt;

&lt;p&gt;ARAB-ISRAELI CONFLICT&lt;/p&gt;

&lt;p&gt;The ideological gulf is widest over the Israeli-Palestinian dispute. Iran advocates a popular referendum among Jewish, Muslim and Christian residents that would likely result in dismantling Israel and creating a single state in its place. The United States, Israel's main ally, favors negotiations to create a Palestinian state in the West Bank and Gaza Strip.&lt;/p&gt;

&lt;p&gt;While Iran rejects Israel's right to exist and backs armed Palestinian militants, some Iranian leaders have said they would accept any solution agreed by the Palestinians themselves.&lt;/p&gt;

&lt;p&gt;ENERGY&lt;/p&gt;

&lt;p&gt;Iran, a member of the Organization of Petroleum Exporting Countries, has the world's second largest oil and natural gas reserves. Its usually hawkish price stance runs counter to the U.S. desire for cheap oil. But Iran accepted an OPEC decision this month to resist new supply cuts -- and thereby provide a stimulus to the world economy that the United States welcomed.&lt;/p&gt;

&lt;p&gt;Iran and the United States could benefit from cooperation. Iranian oil exports are slated to drop due to rising domestic demand, stimulated partly by petrol subsidies, and slackening crude output. Involving now-barred U.S. companies could bolster oil production and help develop Iranian gas reserves and pipelines -- expanding world energy supplies and offering an alternative to European dependence on Russian gas.&lt;/p&gt;

&lt;p&gt;(Writing by Alistair Lyon; Editing by Samia Nakhoul)&lt;/p&gt;</media:text>
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<item>
<title>Oil at $52, recoups losses after ship collision</title>
<link>http://www.reuters.com/article/topNews/idUSTRE5210GO20090320</link>
<pubDate>Fri, 20 Mar 2009 00:35:04 -0600</pubDate>
<description><![CDATA[LONDON (Reuters) - Oil hovered above a four-month high on Friday at $52 a barrel, recouping earlier losses as the market sought a new base above $50 and after news of a ship collision in the key Strait of Hormuz shipping lane.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090320&amp;t=2&amp;i=9358410&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Chris Baldwin&lt;/p&gt;

&lt;p&gt;LONDON (Reuters) - Oil hovered above a four-month high on Friday at $52 a barrel, recouping earlier losses as the market sought a new base above $50 and after news of a ship collision in the key Strait of Hormuz shipping lane.&lt;/p&gt;

&lt;p&gt;The market surged on Thursday to $51.61, its highest settlement since November 28, after the U.S. Federal Reserve announced a plan to buy long-term government debt and the dollar fell, boosting investor appetite for commodities.&lt;/p&gt;

&lt;p&gt;&quot;The sentiment that the economy may improve and that the Fed's moves may be inflationary has crude trying to put in a base above $50 after breaking out of its recent range,&quot; said Gene McGillian, an analyst at Tradition Energy in Connecticut.&lt;/p&gt;

&lt;p&gt;Traders took profits early on Friday, bringing down prices more than $1 at one point. Prices moved back up after news of a collision between two U.S. Navy ships in the Strait of Hormuz, through which around 40 percent of the world's oil is shipped.&lt;/p&gt;

&lt;p&gt;&quot;There is no disruption to shipping traffic in the strait. Both ships are operating under their own power and have passed through the strait,&quot; a U.S. Navy spokesman told Reuters.&lt;/p&gt;

&lt;p&gt;U.S. crude for April, which expires on Friday, rose 40 cents to $52.01 a barrel by 1423 GMT (10:23 a.m. EDT), while the May contract was up 49 cents at $52.53. London Brent crude rose 45 cents to $51.12.&lt;/p&gt;

&lt;p&gt;Oil is up 10 percent this week, lifted by a weaker dollar and expectations the Fed's move, its first large-scale purchase of government debt since the 1960s, would propel the U.S. economy out of a 14-month recession.&lt;/p&gt;

&lt;p&gt;But with crude stockpiles swelling in the United States and energy demand still weak, some analysts cautioned it may be difficult for oil prices to sustain the recent rally.&lt;/p&gt;

&lt;p&gt;DEMAND CRUNCH&lt;/p&gt;

&lt;p&gt;&quot;We may have further to fall. We've got a lot of excess capacity right now and until we increase the spot price, flatten the contango and bring in that floating storage, it's going to be tough,&quot; said Simon Wardell, oil analyst at Global Insight.&lt;/p&gt;

&lt;p&gt;&quot;This isn't like the 1980s. It's not a supply crunch, it's a demand crunch,&quot; he said.&lt;/p&gt;

&lt;p&gt;Oil tanker shipping company Frontline said on Friday there are around 40 very large crude carriers storing oil offshore, each with a capacity of around 2 million barrels - a combined potential of one full day's worth of global oil supplies.&lt;/p&gt;

&lt;p&gt;The dollar edged higher on Friday, but was still on track for its biggest weekly drop in 24 years against a basket of currencies as investors feared the Federal Reserve's plans would hit the value of the currency.&lt;/p&gt;

&lt;p&gt;Bank of America Securities-Merrill Lynch on Friday raised its 2009 oil price forecast to $52 a barrel from $50, but cut its 2010 outlook to $62 a barrel from $70, citing weak demand.&lt;/p&gt;

&lt;p&gt;The International Monetary Fund forecast on Thursday the world economy would contract in 2009 for the first time since World War Two by between 0.5 percent and 1.0 percent.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Raissa Kosolowsky in Dubai and Robert Gibbons in New York, editing by Sue Thomas)&lt;/p&gt;</media:text>
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<title>U.N. says fears of unfair Afghan poll well-founded</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I7VX20090320</link>
<pubDate>Thu, 19 Mar 2009 22:42:47 -0600</pubDate>
<description><![CDATA[UNITED NATIONS (Reuters) - Opposition fears of an unfair election in Afghanistan this year are well-founded, and a rigged poll would fuel political instability and undermine support for democracy, a top U.N. envoy has warned.]]></description>
<guid isPermaLink="false" >USTRE52I7VX20090320</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090320&amp;t=2&amp;i=9363677&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Louis Charbonneau&lt;/p&gt;

&lt;p&gt;UNITED NATIONS (Reuters) - Opposition fears of an unfair election in Afghanistan this year are well-founded, and a rigged poll would fuel political instability and undermine support for democracy, a top U.N. envoy has warned.&lt;/p&gt;

&lt;p&gt;The warning came as Afghan President Hamid Karzai said he welcomed a U.S. deployment of 17,000 extra troops to Afghanistan but that efforts to stabilize the country were &quot;seven years too late.&quot;&lt;/p&gt;

&lt;p&gt;Afghanistan is suffering its worst violence since U.S.-led forces toppled the Taliban in 2001, with the Islamist insurgency steadily increasing and spreading from the south and east.&lt;/p&gt;

&lt;p&gt;Presidential elections are due on August 20, with Karzai expected to be among the candidates. A vote that lacks legitimacy would be further grist for Taliban efforts to undermine popular support for the government and its Western allies.&lt;/p&gt;

&lt;p&gt;&quot;All involved -- the government, the opposition, and the international community -- must understand the costs of a flawed and unfair election process,&quot; Kai Eide, the U.N. special envoy to Afghanistan, told the U.N. Security Council on Thursday.&lt;/p&gt;

&lt;p&gt;&quot;The result (of a rigged poll) would be prolonged political instability when stability is more than ever required (and) would create doubt in the minds of many Afghans about the value of democratic processes when confidence is needed,&quot; he said, urging the Kabul government to address opposition concerns on the issue.&lt;/p&gt;

&lt;p&gt;Eide did see some improvement: a push to reform the police and cut corruption. He also said heroin production was expected to fall this year in Afghanistan, the world's top producer.&lt;/p&gt;

&lt;p&gt;In fresh violence in Afghanistan, 30 militants were killed by Afghan and U.S.-led forces in Helmand province on Thursday, the U.S. military said. The Interior Ministry said Afghan police had killed 17 militants in Helmand a day earlier.&lt;/p&gt;

&lt;p&gt;Elsewhere, three militants were killed in Logar province, close to the capital Kabul, the U.S. military said.&lt;/p&gt;

&lt;p&gt;DONOR CONFUSION&lt;/p&gt;

&lt;p&gt;Eide spoke of confusion over aid to Afghanistan. He said as much as $1 billion has been donated without going through the government, making it hard to monitor how the money was spent.&lt;/p&gt;

&lt;p&gt;&quot;Afghan authorities do not know, and we do not know, how much is spent ... and for what purpose,&quot; he said. However, he told reporters the United Nations' estimate was a reliable one.&lt;/p&gt;

&lt;p&gt;Separately, U.N. Secretary-General Ban Ki-moon told Reuters in an interview he wanted Karzai to strengthen relations with neighboring countries, particularly Pakistan.&lt;/p&gt;

&lt;p&gt;He said he was encouraged by Karzai's &quot;strong cooperative relationship&quot; with Pakistan's President Asif Ali Zardari.&lt;/p&gt;

&lt;p&gt;U.S. and other military forces in Afghanistan see the elimination of militant support in lawless northwestern Pakistan as essential to winning the war in Afghanistan.&lt;/p&gt;

&lt;p&gt;The United States is adding 17,000 troops to the 38,000 it has in Afghanistan, and may send further reinforcements when a policy review by President Barack Obama's administration is finished. Other countries have a total of some 30,000 soldiers aiding the Kabul government under NATO and U.S. command.&lt;/p&gt;

&lt;p&gt;In an interview on the U.S. public television news program &quot;NewsHour with Jim Lehrer,&quot; Karzai said he had been asking for more NATO-led troops to provide security since 2002.&lt;/p&gt;

&lt;p&gt;&quot;We kept requesting. It didn't happen. I wish these troops have arrived at that time. They're seven years too late,&quot; Karzai responded when asked if he welcomed the additional U.S. forces.&lt;/p&gt;

&lt;p&gt;&quot;Even then, for them to come and provide better security to the Afghan people, protect the borders, prevent the crossing of terrorists into Afghanistan, they're welcome to do that,&quot; Karzai added, speaking in his office in Kabul.&lt;/p&gt;

&lt;p&gt;PRESSURE ON EUROPE&lt;/p&gt;

&lt;p&gt;Europe has been under pressure also to increase its contribution to security forces in Afghanistan, and France proposed on Thursday sending European Union gendarmes to train paramilitary police there.&lt;/p&gt;

&lt;p&gt;French Foreign Minister Bernard Kouchner suggested at an EU summit officers be sent from the European Gendarmerie Force set up under a 2004 agreement to specialize in crisis management.&lt;/p&gt;

&lt;p&gt;EU governments are keen to make a good start in relations with Obama, who visits Europe early next month, but have been reluctant to alienate voters by pouring in more troops.&lt;/p&gt;

&lt;p&gt;The next few weeks are expected to see major developments on Afghanistan. Aside from the likely imminent announcement of the U.S. policy review's findings, an international conference on Afghanistan is set for The Hague on March 31.&lt;/p&gt;

&lt;p&gt;Afghanistan's key neighbor to the west, Iran, was invited to the meeting by its old foe the United States and is expected to participate. &quot;Iran ... can play a constructive role,&quot; said the U.N.'s Ban, who will also be there.&lt;/p&gt;

&lt;p&gt;Hard on the heels of that conference, NATO holds a summit where Afghanistan is expected to be a principal topic.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Sean Maguire; Writing by Jerry Norton; Editing by Paul Tait)&lt;/p&gt;</media:text>
</item>
<item>
<title>France proposes European gendarmes for Afghanistan</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J00320090320</link>
<pubDate>Thu, 19 Mar 2009 22:42:47 -0600</pubDate>
<description><![CDATA[BRUSSELS (Reuters) - France proposed on Thursday sending European Union gendarmes to train paramilitary police in Afghanistan to step up training of Afghan security forces.]]></description>
<guid isPermaLink="false" >USTRE52J00320090320</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By David Brunnstrom&lt;/p&gt;

&lt;p&gt;BRUSSELS (Reuters) - France proposed on Thursday sending European Union gendarmes to train paramilitary police in Afghanistan to step up training of Afghan security forces.&lt;/p&gt;

&lt;p&gt;French Foreign Minister Bernard Kouchner suggested at an EU summit that officers be sent from the European Gendarmerie Force (EGF) which was set up under an agreement reached in 2004 to specialize in crisis management.&lt;/p&gt;

&lt;p&gt;Turkey could also be involved alongside EGF members France, Italy, the Netherlands, Portugal, Spain and Romania, he said.&lt;/p&gt;

&lt;p&gt;&quot;The countries of this group, the European countries, have accepted,&quot; Koucher told reporters after outlining the proposals to other EU foreign ministers in Brussels. &quot;We are going to try to make a joint proposition.&quot;&lt;/p&gt;

&lt;p&gt;EU governments are keen to make a good start in relations with U.S. President Barack Obama, who visits Europe early next month, but have been reluctant to alienate voters by pouring in more troops.&lt;/p&gt;

&lt;p&gt;The United States and NATO allies are working on a new strategy for Afghanistan, where Obama says the United States and its allies are not winning the war against Taliban insurgents.&lt;/p&gt;

&lt;p&gt;The new U.S. administration has put pressure on the Europeans to commit more troops and other resources.&lt;/p&gt;

&lt;p&gt;An EU Afghan police training mission that already exists is under strength despite a decision last year to double its size.&lt;/p&gt;

&lt;p&gt;Gendarmes belong to a military force which is charged with police duties among civilian populations. It was not immediately clear how many gendarmes might be sent to Afghanistan.&lt;/p&gt;

&lt;p&gt;British Foreign Secretary David Miliband said the EU had a &quot;very important role&quot; to play in improving Afghan policing.&lt;/p&gt;

&lt;p&gt;&quot;Without secure, effective police forces to back up the military effort, there is not going to be stability,&quot; he told reporters. &quot;As long as this idea is properly integrated with the NATO and other operations it can be very useful.&quot;&lt;/p&gt;

&lt;p&gt;A NATO diplomat said the idea of gendarmerie training would be to train Afghan paramilitary police. &quot;These are not traffic policemen. They are trained and armed to fight and hold territory,&quot; he said.&lt;/p&gt;

&lt;p&gt;He said the French idea followed discussion in the alliance about expanding NATO's role in police training. He said France continually stressed it should be an EU mission.&lt;/p&gt;

&lt;p&gt;Militant violence has risen to its highest level since U.S.-led intervention in Afghanistan overthrew the Taliban in late 2001. Obama has authorized an additional 17,000 U.S. troops for the country, on top of the 38,000 already there, flanked by just over 30,000 troops from other nations.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Julien Toyer and Estelle Shirbon; Editing by Timothy Heritage)&lt;/p&gt;</media:text>
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<item>
<title>Obama offers new start with Iran</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J0O020090320</link>
<pubDate>Thu, 19 Mar 2009 22:38:20 -0600</pubDate>
<description><![CDATA[WASHINGTON/TEHRAN (Reuters) - U.S. President Barack Obama made his warmest offer yet of a fresh start in relations with Iran, which cautiously welcomed the overture but said on Friday it was waiting for "practical steps," not talk.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090321&amp;t=2&amp;i=9367808&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Matt Spetalnick and Parisa Hafezi&lt;/p&gt;

&lt;p&gt;WASHINGTON/TEHRAN (Reuters) - U.S. President Barack Obama made his warmest offer yet of a fresh start in relations with Iran, which cautiously welcomed the overture but said on Friday it was waiting for &quot;practical steps,&quot; not talk.&lt;/p&gt;

&lt;p&gt;&quot;The United States wants the Islamic Republic of Iran to take its rightful place in the community of nations. You have that right -- but it comes with real responsibilities,&quot; Obama said in an unprecedented video message released to Middle East broadcasters to mark the Iranian New Year.&lt;/p&gt;

&lt;p&gt;&quot;...that place cannot be reached through terror or arms, but rather through peaceful actions that demonstrate the true greatness of the Iranian people and civilization.&quot;&lt;/p&gt;

&lt;p&gt;Relations have been almost deep-frozen for decades, and remain blighted by differences over Iran's nuclear program, Iraq, Israel and other issues.&lt;/p&gt;

&lt;p&gt;In separate New Year messages to Iranians, neither Supreme Leader Ayatollah Ali Khamenei nor President Mahmoud Ahmadinejad mentioned Obama's offer. Khamenei said world powers had been persuaded they could not block Iran's nuclear progress.&lt;/p&gt;

&lt;p&gt;Aliakbar Javanfekr, aide to Ahmadinejad, told Reuters: &quot;The Iranian nation has shown that it can forget hasty behavior but we are awaiting practical steps by the United States.&lt;/p&gt;

&lt;p&gt;&quot;The Obama administration so far has just talked,&quot; he said, calling for &quot;fundamental changes in his policy toward Iran.&quot;&lt;/p&gt;

&lt;p&gt;The United States accuses Tehran of backing militant groups and seeking to develop a nuclear bomb under cover of a civilian atomic power program -- a charge Iran denies.&lt;/p&gt;

&lt;p&gt;Javanfekr said Iran welcomed &quot;the interest of the American government to settle differences.&quot; But he said the United States &quot;should realize its previous mistakes and make an effort to amend them.&quot;&lt;/p&gt;

&lt;p&gt;Washington's sanctions against Tehran were &quot;wrong and need to be reviewed.&quot; Its backing for Israel, Iran's main enemy in the region, was &quot;not a friendly gesture.&quot;&lt;/p&gt;

&lt;p&gt;The White House distributed the Obama video with Farsi subtitles and posted it on its website. It was not shown or mentioned on Iran's main state television news, but was reported by Iranian news agencies.&lt;/p&gt;

&lt;p&gt;&quot;I think it's important that the president wanted to deliver this unique message directly to the people and to the leaders to understand that there's a rightful place in the community of nations ... without terror or arms or violence, and that, through peaceful actions, the two countries can work together toward their mutual ends,&quot; White House spokesman Robert Gibbs told reporters.&lt;/p&gt;

&lt;p&gt;&quot;MIXED MESSAGES&quot;&lt;/p&gt;

&lt;p&gt;France and Germany, which with Britain have led unsuccessful European Union efforts to persuade Iran to give up uranium enrichment, both welcomed the Obama initiative.&lt;/p&gt;

&lt;p&gt;&quot;I think the message reflects exactly what the Europeans have always wanted -- that an offer is being made to Iran and... (I hope) that this is being used,&quot; German Chancellor Angela Merkel said at an EU summit in Brussels.&lt;/p&gt;

&lt;p&gt;French President Nicolas Sarkozy said: &quot;For my part I remain convinced that with a barrel of Brent (crude oil) well under $50 the policy of sanctions remains relevant, while at the same time there is need for dialogue.&quot;&lt;/p&gt;

&lt;p&gt;Mohammad Hassan Khani, assistant professor of international relations at Tehran's Imam Sadiq University, described Obama's message as a positive gesture but noted it came only a week after the extension of U.S. economic sanctions.&lt;/p&gt;

&lt;p&gt;&quot;This is somehow conflicting and making people here confused,&quot; he said.&lt;/p&gt;

&lt;p&gt;Obama has already expressed a readiness to have face-to-face diplomatic contacts with Tehran, a major shift from former President George W. Bush's policy of trying to isolate a country he once branded part of an &quot;axis of evil.&quot;&lt;/p&gt;

&lt;p&gt;Ahmadinejad has demanded Washington apologize for decades of &quot;crimes&quot; against the Islamic Republic. Tehran also says it cannot let down its guard as long as U.S. troops are posted on its borders in Iraq and Afghanistan.&lt;/p&gt;

&lt;p&gt;Analysts have said that Iran is setting tough conditions for dialogue to buy time for its ponderous, opaque decision-making process. Adding to uncertainty, Iran holds a presidential election in June that could strengthen moderate voices backing detente over more hardline opponents.&lt;/p&gt;

&lt;p&gt;Ultimately policy will be determined by the supreme leader, Khamenei.&lt;/p&gt;

&lt;p&gt;Rapprochement with Washington would reverberate through the Middle East -- for example in Lebanon, where the Shi'ite movement Hezbollah, with a powerful guerrilla wing, is backed by Tehran.&lt;/p&gt;

&lt;p&gt;&quot;Although it is a timid overture, it is a good beginning, particularly for Lebanon,&quot; said Ousama Safa, director of the Lebanese Center for Policy Studies.&lt;/p&gt;

&lt;p&gt;Obama made no specific offers, but said he wanted &quot;a future with renewed exchanges among our people and greater opportunities for partnership and commerce.&quot;&lt;/p&gt;

&lt;p&gt;&quot;This won't be reached easily,&quot; he acknowledged.&lt;/p&gt;

&lt;p&gt;The United States cut off diplomatic ties with Iran during a 1979-1981 crisis, when militant Iranian students held 52 U.S. diplomats hostage at the American embassy for 444 days.&lt;/p&gt;

&lt;p&gt;Obama said earlier this year he was ready to extend a hand of peace to Iran if it &quot;unclenched its fist.&quot; His administration has said it will invite Tehran to a conference on Afghanistan this month. Iran has said it will consider the invitation.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Zahra Hosseinian and Fredrik Dahl in Tehran and Alistair Lyon in Beirut; writing by Mark Trevelyan; editing by Chris Wilson)&lt;/p&gt;</media:text>
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<title>U.S. President Obama's video message to Iran</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J0OF20090320</link>
<pubDate>Thu, 19 Mar 2009 22:38:10 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Following is the full text of President Barack Obama's videotaped message to the people and leaders of Iran as they celebrate their New Year's holiday, Nowruz.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Following is the full text of President Barack Obama's videotaped message to the people and leaders of Iran as they celebrate their New Year's holiday, Nowruz.&lt;/p&gt;

&lt;p&gt;THE PRESIDENT: &quot;Today I want to extend my very best wishes to all who are celebrating Nowruz around the world.&lt;/p&gt;

&lt;p&gt;This holiday is both an ancient ritual and a moment of renewal, and I hope that you enjoy this special time of year with friends and family.&lt;/p&gt;

&lt;p&gt;In particular, I would like to speak directly to the people and leaders of the Islamic Republic of Iran. Nowruz is just one part of your great and celebrated culture. Over many centuries your art, your music, literature and innovation have made the world a better and more beautiful place.&lt;/p&gt;

&lt;p&gt;Here in the United States our own communities have been enhanced by the contributions of Iranian Americans. We know that you are a great civilization, and your accomplishments have earned the respect of the United States and the world.&lt;/p&gt;

&lt;p&gt;For nearly three decades relations between our nations have been strained. But at this holiday we are reminded of the common humanity that binds us together. Indeed, you will be celebrating your New Year in much the same way that we Americans mark our holidays -- by gathering with friends and family, exchanging gifts and stories, and looking to the future with a renewed sense of hope.&lt;/p&gt;

&lt;p&gt;Within these celebrations lies the promise of a new day, the promise of opportunity for our children, security for our families, progress for our communities, and peace between nations. Those are shared hopes, those are common dreams.&lt;/p&gt;

&lt;p&gt;So in this season of new beginnings I would like to speak clearly to Iran's leaders. We have serious differences that have grown over time. My administration is now committed to diplomacy that addresses the full range of issues before us, and to pursuing constructive ties among the United States, Iran and the international community. This process will not be advanced by threats. We seek instead engagement that is honest and grounded in mutual respect.&lt;/p&gt;

&lt;p&gt;You, too, have a choice. The United States wants the Islamic Republic of Iran to take its rightful place in the community of nations. You have that right -- but it comes with real responsibilities, and that place cannot be reached through terror or arms, but rather through peaceful actions that demonstrate the true greatness of the Iranian people and civilization. And the measure of that greatness is not the capacity to destroy, it is your demonstrated ability to build and create.&lt;/p&gt;

&lt;p&gt;So on the occasion of your New Year, I want you, the people and leaders of Iran, to understand the future that we seek. It's a future with renewed exchanges among our people, and greater opportunities for partnership and commerce. It's a future where the old divisions are overcome, where you and all of your neighbors and the wider world can live in greater security and greater peace.&lt;/p&gt;

&lt;p&gt;I know that this won't be reached easily. There are those who insist that we be defined by our differences. But let us remember the words that were written by the poet Saadi, so many years ago: &quot;The children of Adam are limbs to each other, having been created of one essence.&quot;&lt;/p&gt;

&lt;p&gt;With the coming of a new season, we're reminded of this precious humanity that we all share. And we can once again call upon this spirit as we seek the promise of a new beginning.&lt;/p&gt;

&lt;p&gt;Thank you, and Eid-eh Shoma Mobarak.&quot;&lt;/p&gt;</media:text>
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<title>Afghan leader Karzai says more U.S. forces &quot;too late&quot;</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J0J420090320</link>
<pubDate>Thu, 19 Mar 2009 20:16:55 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Afghan President Hamid Karzai said in an interview on Thursday that he welcomes the U.S. deployment of 17,000 extra troops to Afghanistan but says efforts to stabilize the country are "seven years too late."]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Afghan President Hamid Karzai said in an interview on Thursday that he welcomes the U.S. deployment of 17,000 extra troops to Afghanistan but says efforts to stabilize the country are &quot;seven years too late.&quot;&lt;/p&gt;

&lt;p&gt;Violence is at its highest level in Afghanistan since U.S.-led forces toppled the Taliban in late 2001. A United Nations report warned last week that security may worsen this year in the face of a renewed insurgency.&lt;/p&gt;

&lt;p&gt;In an interview on the public television news program &quot;NewsHour with Jim Lehrer,&quot; Karzai said he had been asking for more NATO-led troops to provide security since 2002.&lt;/p&gt;

&lt;p&gt;&quot;We kept requesting. It didn't happen. I wish these troops have arrived at that time. They're seven years too late,&quot; Karzai responded when asked whether he welcomed the additional American forces.&lt;/p&gt;

&lt;p&gt;&quot;Even then, for them to come and provide better security to the Afghan people, protect the borders, prevent the crossing of terrorists into Afghanistan, they're welcome to do that,&quot; Karzai added, speaking in his office in Kabul.&lt;/p&gt;

&lt;p&gt;Almost 70,000 foreign troops under NATO and U.S. command have joined tens of thousands of Afghan forces in the fight against the Taliban-led insurgency.&lt;/p&gt;

&lt;p&gt;Karzai said he welcomed U.S. President Barack Obama's Afghanistan policy review and hopes any new strategy will include measures to strengthen Afghanistan's security forces.&lt;/p&gt;

&lt;p&gt;&quot;We keep hearing that it may have an element of adding to the Afghan forces, both the police and the army. That's a good thing; we welcome it,&quot; Karzai said.&lt;/p&gt;

&lt;p&gt;The White House has declined comment on the policy review. The New York Times reported one option under consideration is doubling the Afghan security force to about 400,000 troops and national police.&lt;/p&gt;

&lt;p&gt;Karzai, who faces elections within the next five months, said he has not decided where he will run for president.&lt;/p&gt;

&lt;p&gt;&quot;I will decide based on whether I'm the better person to run -- to continue to run for this country or whether there are other possibilities for Afghanistan to choose,&quot; he said.&lt;/p&gt;

&lt;p&gt;(Editing by Anthony Boadle)&lt;/p&gt;</media:text>
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<title>California &quot;tent city&quot; for homeless to be closed</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J0FK20090320</link>
<pubDate>Thu, 19 Mar 2009 20:09:03 -0600</pubDate>
<description><![CDATA[SACRAMENTO, California (Reuters) - The mayor of California's state capital unveiled plans on Thursday to shut down a sprawling "tent city" of the homeless that has drawn worldwide media attention as a symbol of U.S. economic decline.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090320&amp;t=2&amp;i=9233962&amp;w="  type="image/jpeg"  expression="full"  medium="image" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Suzanne Hurt&lt;/p&gt;

&lt;p&gt;SACRAMENTO, California (Reuters) - The mayor of California's state capital unveiled plans on Thursday to shut down a sprawling &quot;tent city&quot; of the homeless that has drawn worldwide media attention as a symbol of U.S. economic decline.&lt;/p&gt;

&lt;p&gt;Sacramento Mayor Kevin Johnson promised to first make alternative shelter space available for the estimated 150 men and women who inhabit the squalid encampment near the American River, at the edge of the city's downtown.&lt;/p&gt;

&lt;p&gt;Johnson, who toured the area with California Governor Arnold Schwarzenegger a day earlier, said he hoped to have the ramshackle settlement cleared of tents and debris in the next two to three weeks.&lt;/p&gt;

&lt;p&gt;&quot;We want to move as quickly as we can,&quot; he told a news conference, insisting the city was determined to treat the tent dwellers with compassion.&lt;/p&gt;

&lt;p&gt;&quot;They are people out there. We have to do whatever we can do,&quot; he said. &quot;We as a city are not going to shy away from it. We're going to tackle it head-on.&quot;&lt;/p&gt;

&lt;p&gt;Advocates for the homeless applauded the mayor's action. Municipal authorities in Sacramento have been debating the fate of the tent city for weeks.&lt;/p&gt;

&lt;p&gt;Sacramento has one of the highest mortgage foreclosure rates in the United States, and the homeless total in the city and surrounding county is estimated to have jumped nearly 10 percent last year to nearly 2,700. About half are believed to be living outdoors, according to a local survey.&lt;/p&gt;

&lt;p&gt;The tent city site, near an almond-processing plant beside a railroad freight line, made global headlines after it was featured last month on &quot;The Oprah Winfrey Show.&quot;&lt;/p&gt;

&lt;p&gt;Local shelter organizers helped fuel media excitement by suggesting the tent city mushroomed with the arrival of newly homeless men and women, formerly from the middle class and forced by sudden economic hardship to take up residence in tents along the river. One activist for the homeless estimated that 10 percent of the tent inhabitants fit that profile.&lt;/p&gt;

&lt;p&gt;A closer examination of the site, including interviews with camp residents and police officers who patrol the area, turned up little if any evidence that true &quot;recession refugees&quot; were living among the chronically homeless there.&lt;/p&gt;

&lt;p&gt;Tent city residents and police say the camp had existed for at least a year and had expanded after several smaller clusters of homeless settlements were shut down.&lt;/p&gt;

&lt;p&gt;Johnson said his plan included enlarging existing shelters, opening a short-term tented shelter area at a fairground, and creating &quot;permanent housing opportunities&quot; for an additional 40 homeless individuals.&lt;/p&gt;

&lt;p&gt;He said city officials would meet individually with each of the tent dwellers to discuss options, and a special task force would finish devising a long-term strategy for all the city's known homeless.&lt;/p&gt;

&lt;p&gt;The plan, which will be financed from various public funds, will be submitted to the City Council for approval next week.&lt;/p&gt;

&lt;p&gt;(Writing by Steve Gorman; Editing by Peter Cooney)&lt;/p&gt;</media:text>
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<title>First Family's dog coming soon, Obama tells TV host</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J0EU20090320</link>
<pubDate>Thu, 19 Mar 2009 20:06:54 -0600</pubDate>
<description><![CDATA[BURBANK, California (Reuters) - U.S. President Barack Obama was alternately somber and light-hearted in an unusual appearance on America's top-rated late-night variety show on Thursday, moving deftly from the economic crisis to the April arrival of a "First Dog" in the White House.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Jeff Mason&lt;/p&gt;

&lt;p&gt;BURBANK, California (Reuters) - U.S. President Barack Obama was alternately somber and light-hearted in an unusual appearance on America's top-rated late-night variety show on Thursday, moving deftly from the economic crisis to the April arrival of a &quot;First Dog&quot; in the White House.&lt;/p&gt;

&lt;p&gt;In an appearance on &quot;The Tonight Show with Jay Leno,&quot; the first by a sitting president, Obama talked seriously about his economic plans and voiced strong support for embattled Treasury Secretary Timothy Geithner.&lt;/p&gt;

&lt;p&gt;Wearing a bright red tie and an American flag pin on his lapel, the president pitched his budget and said he was stunned to learn crippled insurance giant AIG had paid out big bonuses to employees after using taxpayer money to stay afloat.&lt;/p&gt;

&lt;p&gt;But he switched gears to talk about family life in the White House, confirming a timetable for the First Family's acquisition of a canine companion. Obama said the dog would arrive after his planned trip to Europe in early April.&lt;/p&gt;

&lt;p&gt;&quot;When we get back, the dog will be in place,&quot; Obama said, adding his daughters Sasha and Malia were not the only ones looking forward to its arrival. &quot;They say if you want a friend in Washington, get a dog,&quot; he joked.&lt;/p&gt;

&lt;p&gt;More seriously, Obama said critics had underestimated the number of challenges facing his Treasury secretary, who has taken heat for his handling of the AIG bonus scandal.&lt;/p&gt;

&lt;p&gt;&quot;This guy has not just a banking crisis. He's got the worst recession since the Great Depression. He's got an auto industry ... that has been on the verge of collapse,&quot; Obama said.&lt;/p&gt;

&lt;p&gt;&quot;I think Geithner is doing an outstanding job.&quot;&lt;/p&gt;

&lt;p&gt;'ENOUGH IS ENOUGH'&lt;/p&gt;

&lt;p&gt;Obama reiterated the need for a government bail-out of AIG and said his administration was doing everything it could to get the bonus money back.&lt;/p&gt;

&lt;p&gt;&quot;The immediate bonuses that went to AIG are a problem,&quot; he said, &quot;but the larger problem is we've got to get back to an attitude where people know enough is enough.&quot;&lt;/p&gt;

&lt;p&gt;Pushing his plans for broad reform of financial regulation, Obama said many of the practices that led to the meltdown of the U.S. financial industry were not against the law.&lt;/p&gt;

&lt;p&gt;&quot;Here's the dirty little secret, though: most of the stuff that got us into trouble was perfectly legal,&quot; he said.&lt;/p&gt;

&lt;p&gt;On life in the White House, Obama said he is getting a basketball hoop for the mansion's tennis courts but is in the meantime improving his bowling -- a game at which he did not excel during his campaign.&lt;/p&gt;

&lt;p&gt;&quot;I'm making progress on the bowling,&quot; he said.&lt;/p&gt;

&lt;p&gt;Asked by Leno whether people who played basketball with him allowed him to win now that he's president, Obama dead-panned: &quot;I don't see why they would throw the game except for all those Secret Service guys with guns around.&quot;&lt;/p&gt;

&lt;p&gt;He confided that he enjoyed traveling on Air Force One. &quot;I personally think it's pretty cool,&quot; he said, adding that his kids were &quot;just not as impressed.&quot;&lt;/p&gt;

&lt;p&gt;Leno teased Obama for his White House living arrangements.&lt;/p&gt;

&lt;p&gt;&quot;People think it's amazing that the president would take the time to leave Washington D.C. and fly 3,000 miles to come to California,&quot; Leno said before Obama came on stage.&lt;/p&gt;

&lt;p&gt;&quot;But you know something, that happens to a lot of guys when their mother-in-law moves in with them.&quot;&lt;/p&gt;

&lt;p&gt;The talk show host also took a dig at the vice president.&lt;/p&gt;

&lt;p&gt;&quot;We were also going to have Vice President Joe Biden come out and say a few words but you know, it's only an hour show.&quot;&lt;/p&gt;</media:text>
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<title>House panel to consider prohibition on bonus payment</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52J0B720090320</link>
<pubDate>Thu, 19 Mar 2009 19:23:16 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The House Financial Services Committee will consider legislation to prohibit any bonus payments by companies who have received government bailout funds, until investments are repaid in full, chairman Barney Frank said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The House Financial Services Committee will consider legislation to prohibit any bonus payments by companies who have received government bailout funds, until investments are repaid in full, chairman Barney Frank said on Thursday.&lt;/p&gt;

&lt;p&gt;The measure, to be considered next Tuesday, would prohibit any compensation arrangements that are unreasonable or excessive for these companies, the panel said in a statement.&lt;/p&gt;

&lt;p&gt;The bill would also bar bailed-out companies from paying any bonus to any employee, regardless of when any bonus was agreed to, the statement said.&lt;/p&gt;

&lt;p&gt;The panel said the full House of Representatives would be able to consider the legislation the following week.&lt;/p&gt;

&lt;p&gt;In the face of public outrage over $165 million in bonuses that American International Group paid out after receiving $180 billion in government aid, the House on Thursday voted 328-93 to approve a 90 percent tax on bonuses for certain executives at companies that are getting taxpayer-financed help.&lt;/p&gt;

&lt;p&gt;(Reporting by Joanne Allen; Editing by Gary Hill)&lt;/p&gt;</media:text>
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<title>Veteran senator Dodd in the eye of AIG bonus storm</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I6Z620090320</link>
<pubDate>Thu, 19 Mar 2009 18:55:54 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - In a capital always looking for someone to blame, a powerful U.S. Democratic senator has a big bull's-eye on him in the firefight over taxpayer-funded bonuses for executives at insurance giant AIG.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Steve Holland&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - In a capital always looking for someone to blame, a powerful U.S. Democratic senator has a big bull's-eye on him in the firefight over taxpayer-funded bonuses for executives at insurance giant AIG.&lt;/p&gt;

&lt;p&gt;Christopher Dodd, chairman of the Senate Banking Committee and one of the more prominent faces of the Democratic Party, is scrambling to explain how a loophole ended up in legislation that allowed the roundly condemned bonuses to go forward.&lt;/p&gt;

&lt;p&gt;At issue is a clause in the $787 billion economic stimulus plan approved by Congress in February that capped bonuses for executives at companies getting federal bailout aid.&lt;/p&gt;

&lt;p&gt;A one-paragraph provision tucked into the thick bill modified the cap to apply it only to future bonuses, not those that might have already been legally contracted.&lt;/p&gt;

&lt;p&gt;This had the effect of allowing the $165 million in American International Group Inc bonuses to go forward.&lt;/p&gt;

&lt;p&gt;Dodd, who is running for re-election in 2010, acknowledged on Wednesday he played a role in developing the legislation after CNN quoted a Treasury Department official as saying Treasury had talked to Dodd about such a clause, while not explicitly recommending it.&lt;/p&gt;

&lt;p&gt;But Dodd said he acted at the behest of the Obama administration, although he would not say who made the request -- injecting an air of mystery into this week's political feeding frenzy over the AIG bonuses.&lt;/p&gt;

&lt;p&gt;&quot;I did not want to make any changes to my original Senate-passed amendment but I did so at the request of administration officials, who gave us no indication that this was in any way related to AIG,&quot; Dodd said.&lt;/p&gt;

&lt;p&gt;&quot;Let me be clear -- I was completely unaware of these AIG bonuses until I learned of them last week.&quot;&lt;/p&gt;

&lt;p&gt;A senior Democrat said the Treasury Department and Federal Reserve pressed Dodd to make changes.&lt;/p&gt;

&lt;p&gt;&quot;They felt that it (the earlier language) was too restrictive,&quot; said the Democrat, requesting anonymity.&lt;/p&gt;

&lt;p&gt;POTENTIALLY VULNERABLE&lt;/p&gt;

&lt;p&gt;The back-and-forth is not good news for Dodd, 64, in his potentially difficult re-election race in Connecticut, where newspaper headlines have been blaring about his role in the bonus brouhaha.&lt;/p&gt;

&lt;p&gt;In a sign of his potential vulnerability, a recent Quinnipiac University poll showed Dodd's opponent in the Senate race, Republican Rob Simmons, led him by 43 percent to 42 percent.&lt;/p&gt;

&lt;p&gt;Adding insult to injury, the watchdog group Center for Responsive Politics reported Dodd -- a senator since 1981 in a state heavily dependent on the insurance industry -- received more than $223,000 in campaign donations from AIG workers between 2003 and 2008.&lt;/p&gt;

&lt;p&gt;(The center's report is at www.opensecrets.org/news/2009/03/before-the-fall-aig-payouts-we.html)&lt;/p&gt;

&lt;p&gt;Dodd told The Connecticut Post on Wednesday he would return or donate to charity any campaign contributions linked to federal bailout money.&lt;/p&gt;

&lt;p&gt;Dodd made a brief run for the 2008 Democratic presidential nomination, moving his entire family to the early voting state of Iowa to show his commitment. He ended up winning only 1 percent of the vote in Iowa and abandoned the race.&lt;/p&gt;

&lt;p&gt;The white-haired senator has also faced criticism over two mortgage loans he received from Countrywide Financial, a company at the heart of the housing crisis. Dodd pledged to refinance the mortgages.&lt;/p&gt;

&lt;p&gt;At a news conference on Thursday, House of Representatives Speaker Nancy Pelosi tried to direct fire at the former Bush administration, saying it had resisted repeated Democratic efforts to do something about limiting executive compensation as part of bank-bailout legislation.&lt;/p&gt;

&lt;p&gt;&quot;We are now sweeping up after them,&quot; she said.&lt;/p&gt;

&lt;p&gt;As for the AIG bonus loophole in the stimulus package, she said: &quot;What you're talking about is language on the Senate that was never in any conference that we agreed or disagreed.&quot;&lt;/p&gt;

&lt;p&gt;&quot;This is Senate-White House language,&quot; Pelosi said.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Thomas Ferraro, Susan Cornwell, Tabassum Zakaria and Jeremy Pelofsky; Editing by John O'Callaghan)&lt;/p&gt;</media:text>
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<title>SCENARIOS: Congress moving to squelch AIG bonuses</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I77M20090320</link>
<pubDate>Thu, 19 Mar 2009 18:55:54 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. Congress took a big step toward shutting down the controversial bonuses American International Group awarded its executives despite receiving $180 billion in government aid.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Richard Cowan&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The U.S. Congress took a big step toward shutting down the controversial bonuses American International Group awarded its executives despite receiving $180 billion in government aid.&lt;/p&gt;

&lt;p&gt;But the House of Representatives passage of a bill to slap a 90 percent federal tax on those bonuses is only a first step toward enacting legislation.&lt;/p&gt;

&lt;p&gt;Here are major coming developments:&lt;/p&gt;

&lt;p&gt;* Senators are drafting a separate measure that also would use the tax code to deny the AIG workers -- current and former ones -- their bonuses. Instead of the House's 90 percent tax on bonuses for executives whose incomes exceed $250,000, the Senate version would place a 70 percent tax on nearly all of the $165 million in bonuses being awarded by AIG. Half of the tax would be paid by AIG and the other half by the employees receiving the bonuses. House and Senate leaders claim that under either plan, state and local taxes would eat up what little money is left after the new federal tax.&lt;/p&gt;

&lt;p&gt;* Senate Democratic leaders say they will put their legislation to a vote on the Senate floor soon -- before an early April recess.&lt;/p&gt;

&lt;p&gt;* Assuming that legislation passes, the House and Senate would then work out a compromise bill, or one chamber would have to pass the other chamber's bill. Leaders in both chambers want to finish quickly, given the public outrage over the bonuses.&lt;/p&gt;

&lt;p&gt;* The entire AIG bonus controversy has become a gigantic headache for President Barack Obama, who is being pilloried by Republicans accusing him of lax oversight. As a result, he is expected to promptly sign into law any bill aimed at recouping the AIG bonuses that the Democratic-controlled Congress sends him.&lt;/p&gt;

&lt;p&gt;* AIG employees or former employees could challenge any eventual law and question whether Congress can meddle in the contracts between AIG and its employees. Lawyers, politicians and others -- unsurprisingly -- have varying opinions.&lt;/p&gt;

&lt;p&gt;* Given public anger over the bonuses, it is not clear how many employees actually would step forward and file suit, which would likely publicize their situation after they have fought to keep themselves anonymous.&lt;/p&gt;

&lt;p&gt;* While lawmakers predict they will get nearly all of the $165 million back for taxpayers, that could be difficult because some of the employees worked overseas and might not be subject to U.S. tax law.&lt;/p&gt;

&lt;p&gt;(Reporting by Richard Cowan and Jeremy Pelofsky, editing by Patricia Zengerle)&lt;/p&gt;</media:text>
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<title>Yanking AIG bonuses to cost NYC $3 million in tax revs</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I89O20090319</link>
<pubDate>Thu, 19 Mar 2009 17:59:22 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - New York City could lose $3 million in tax revenues if insurer American International Group's workers are forced to hand back their bonuses, the city comptroller said on Thursday.]]></description>
<guid isPermaLink="false" >USTRE52I89O20090319</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Joan Gralla&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - New York City could lose $3 million in tax revenues if insurer American International Group's workers are forced to hand back their bonuses, the city comptroller said on Thursday.&lt;/p&gt;

&lt;p&gt;Wall Street is the taproot of New York City's economy and its tax revenues could sink even further if other investment banks also must wrest bonuses back from their workers.&lt;/p&gt;

&lt;p&gt;A 90 percent tax on bonuses for people earning more than $250,000 at companies that got federal bailout funds was approved by the U.S. House of Representatives on Thursday.&lt;/p&gt;

&lt;p&gt;AIG recently paid $165 million in bonuses, but the new bill could also hit JPMorgan Chase &amp;amp; Co, Bank of America Corp, Citigroup Inc, Goldman Sachs Group and Morgan Stanley.&lt;/p&gt;

&lt;p&gt;The U.S. Senate's bonus-recapture bill stalled but President Barack Obama said the House vote to tax AIG bonuses &quot;rightly reflects&quot; outrage, adding he looks forward to getting the final bill.&lt;/p&gt;

&lt;p&gt;A spokeswoman for Democratic Comptroller William Thompson, a mayoral candidate, could not immediately say how much revenue would be lost if more Wall Streeters returned bonuses.&lt;/p&gt;

&lt;p&gt;Mayor Michael Bloomberg told reporters that AIG has about 6,500 workers in the city, adding &quot;probably more than half of them make less than a $100,000 a year.&quot; The mayor, an independent seeking a third term, added he was focused on reviving the city's economy by aiding small businesses.&lt;/p&gt;

&lt;p&gt;New York Governor David Paterson said last year's nearly 45 percent drop in Wall Street bonuses, coupled with tumbling capital gains tax collections, created a $14 billion deficit.&lt;/p&gt;

&lt;p&gt;AIG makes it home in New York, which last year was one of the first to help it, the Democratic governor said. But now he might yank some of its support. &quot;What we're looking at is some of the assistance that they still get from the state which we may reconsider because this is a company that is not in step with the horrible economic times we are experiencing,&quot; Paterson told CBS radio.&lt;/p&gt;

&lt;p&gt;He added that taxing the bankers' bonuses could return money to governments. His spokesman was not available.&lt;/p&gt;

&lt;p&gt;Last September, New York allowed AIG to tap $20 billion of assets through its subsidiaries to use as collateral.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Elinor Comlay, Jonathan Stempel, Joseph A. Giannone in New York, Susan Cornwell, Jeremy Pelofsky and Sandra Maler in Washington, D.C.)&lt;/p&gt;</media:text>
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<title>U.S., Mexican security chiefs to meet on gun trade</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I7X120090319</link>
<pubDate>Thu, 19 Mar 2009 17:21:18 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. and Mexican security officials will strategize next month on fighting the arms trade fueling Mexico's bloody drug war, but a U.S. ban on assault rifles favored by the traffickers will not be on the agenda.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Randall Mikkelsen&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - U.S. and Mexican security officials will strategize next month on fighting the arms trade fueling Mexico's bloody drug war, but a U.S. ban on assault rifles favored by the traffickers will not be on the agenda.&lt;/p&gt;

&lt;p&gt;U.S. Attorney General Eric Holder and Homeland Security Janet Napolitano announced plans this week to meet their Mexican counterparts -- Attorney General Eduardo Medina and Interior Minister Fernando Francisco Gomez Mont -- at an arms trafficking conference in Cuernavaca, Mexico in early April.&lt;/p&gt;

&lt;p&gt;Napolitano told reporters on Thursday the officials will discuss ways of fighting the huge flow of weapons from the United States into Mexico, where they are used by drug gangs in turf battles that killed 6,000 people last year.&lt;/p&gt;

&lt;p&gt;To Mexico's great unease, the widely available U.S. guns are often the merchandise carried back along smuggling routes for illegal drugs coming into the United States.&lt;/p&gt;

&lt;p&gt;The Mexican drug violence has ignited fears that it would spill over into the United States, and officials in Washington are drawing up new contingency plans for sending military troops if needed to U.S. areas affected by drug violence.&lt;/p&gt;

&lt;p&gt;&quot;The only issue is at what level do we (invoke) in the worst-case scenarios, and we're not at the worst-case scenarios yet,&quot; she said.&lt;/p&gt;

&lt;p&gt;The plans are expected soon, along with a more-immediate Mexican border security plan to be announced separately, Napolitano said.&lt;/p&gt;

&lt;p&gt;She said she did not expect regular military forces to be deployed to any violent scenario. Rather, she said, &quot;the real issue is the National Guard right now.&quot;&lt;/p&gt;

&lt;p&gt;In February, Holder had said the Obama administration would push for renewing a U.S. ban on semi-automatic assault weapons that expired under former President George W. Bush. He said it would &quot;have a positive impact in Mexico, at a minimum.&quot;&lt;/p&gt;

&lt;p&gt;Assault weapons are among the smugglers' favorite weapons.&lt;/p&gt;

&lt;p&gt;But U.S. gun-owners groups, who represent a powerful voting bloc wary of the Obama administration, reacted in sharp protest to Holder's comments.&lt;/p&gt;

&lt;p&gt;This week neither Holder nor Napolitano revealed any intention of offering an assault-weapons ban to their Mexican counterparts.&lt;/p&gt;

&lt;p&gt;&quot;I think what we're going to do is try to enforce the laws that we have on the books,&quot; Holder told reporters on Wednesday.&lt;/p&gt;

&lt;p&gt;Napolitano on Thursday gave a similar answer when asked if an assault-weapons ban would be on the table at Cuernavaca.&lt;/p&gt;

&lt;p&gt;&quot;There's lots that you can do on the investigation and prosecution side under the existing laws. The key thing is to improve and to keep improving on our interdiction of the weapons before they even get in there.&quot;&lt;/p&gt;

&lt;p&gt;Issues that will be discussed include cracking down on &quot;straw purchasers&quot; who buy guns on smugglers' behalf in the United States, and more quickly tracing weapons found in Mexico in an attempt to pinpoint major U.S. sellers.&lt;/p&gt;

&lt;p&gt;Improving detection systems at the U.S.-Mexican border and ports will be another significant topic, she said.&lt;/p&gt;

&lt;p&gt;(Editing by Anthony Boadle)&lt;/p&gt;</media:text>
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<title>Anti-AIG demonstrations draw small, animated crowds</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I7Z020090319</link>
<pubDate>Thu, 19 Mar 2009 16:47:45 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Small crowds of protesters angered by the government's $180 billion bailout of AIG marched in cities across the United States on Thursday, mocking bonuses paid to employees who helped push the company to the brink of collapse.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Christine Kearney&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Small crowds of protesters angered by the government's $180 billion bailout of AIG marched in cities across the United States on Thursday, mocking bonuses paid to employees who helped push the company to the brink of collapse.&lt;/p&gt;

&lt;p&gt;The largest U.S. labor union, the SEIU, and leftist activists from MoveOn.org among others called protests for more than 100 cities the day after President Barack Obama declared, &quot;People are right to be angry -- I'm angry.&quot;&lt;/p&gt;

&lt;p&gt;Obama was responding to public outrage after the insurance giant recently paid $165 million in bonuses to employees of its financial products unit, which wrote the credit default swaps that led to AIG's downfall.&lt;/p&gt;

&lt;p&gt;&quot;I am outraged at the continued misbehavior of our financial companies that are trying to destroy the country,&quot; said Deborah Laurel, 54, an architect who was among 100 protesters in New York's financial district, near Wall Street.&lt;/p&gt;

&lt;p&gt;The demonstrations also took aim at banks and other financial institutions whose overexposure to subprime mortgages and exotic derivatives fueled the financial crisis.&lt;/p&gt;

&lt;p&gt;Organizers had forecast a nationwide turnout of 10,000 protesters and initial indications showed they would fall short of that number.&lt;/p&gt;

&lt;p&gt;On Wednesday, AIG Chairman Edward Liddy confronted angry questions from a congressional panel. Moving with unusual speed, the U.S. House of Representatives voted on Thursday to impose a 90 percent tax on bonuses for executives whose incomes exceed $250,000 and whose companies received at least $5 billion in government bailout money.&lt;/p&gt;

&lt;p&gt;&quot;These corporate leaders have brought the greatest economy in the world to its knees,&quot; Andy Stern, president of the Service Employees International Union, told about 100 protesters outside the AIG office in Washington.&lt;/p&gt;

&lt;p&gt;Although mostly small, the protests were animated.&lt;/p&gt;

&lt;p&gt;About 130 people in Boston marched from the Bank of America offices to AIG's offices, waving placards and shouting: &quot;Our tax dollars are going to bolstering up these banks.&quot;&lt;/p&gt;

&lt;p&gt;Bank of America and AIG are among financial services institutions that have received hundreds of billions in U.S. bailout money.&lt;/p&gt;

&lt;p&gt;'SICK AND TIRED'&lt;/p&gt;

&lt;p&gt;&quot;We're furious. ... We are sick and tired of corporate greed and excess,&quot; Monica Sandschafer, organizer for a community organization, told about 50 protesters outside the American International Group office in Phoenix.&lt;/p&gt;

&lt;p&gt;Some 500 SEIU members marched peacefully through a few blocks of downtown Chicago.&lt;/p&gt;

&lt;p&gt;With some chanting: &quot;Hey hey, ho ho, where did all the money go?&quot; the demonstrators, many of them janitors and healthcare workers, waved signs and demanded that bonuses paid to AIG executives and by large banks be returned.&lt;/p&gt;

&lt;p&gt;&quot;I'm worried about my elderly clients' savings going to the AIG executives and to the banks,&quot; Alicia Lee, 42, a home healthcare provider said.&lt;/p&gt;

&lt;p&gt;Several dozen San Francisco protesters gathered in front of a Wells Fargo bank branch in the financial district before heading several blocks to AIG's offices in the Bank of America skyscraper.&lt;/p&gt;

&lt;p&gt;Marching in a huge circle, the lunch-time demonstrators held up placards demanding economic justice. One sign, &quot;Asinine Incomprehensible Greed,&quot; mocked AIG's initials.&lt;/p&gt;

&lt;p&gt;In Houston, about 20 people railed against the U.S. bank bailout at branches of Wells Fargo, Bank of America and Comerica.&lt;/p&gt;

&lt;p&gt;(Reporting by Christine Kearney in New York, Tim Gaynor in Phoenix, Andy Sullivan in Washington, Bob Galbraith in San Francisco, Andrew Stern in Chicago and Bruce Nichols in Houston; Writing by Daniel Trotta; Editing by Peter Cooney)&lt;/p&gt;</media:text>
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<title>Goldman to respond to coverage of AIG bailout</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I7A220090319</link>
<pubDate>Thu, 19 Mar 2009 15:21:29 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Goldman Sachs Group Inc said it will respond on Friday to what it calls "misperceptions" about its trading relationship with bailed-out insurance company American International Group.]]></description>
<guid isPermaLink="false" >USTRE52I7A220090319</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Joseph A. Giannone&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Goldman Sachs Group Inc said it will respond on Friday to what it calls &quot;misperceptions&quot; about its trading relationship with bailed-out insurance company American International Group.&lt;/p&gt;

&lt;p&gt;For weeks, Goldman has been under fire amid disclosures that more than $90 billion of taxpayer funds earmarked for the rescue of AIG, which nearly collapsed under credit derivative losses, were quickly paid out to U.S. and European banks that had purchased credit protection from AIG.&lt;/p&gt;

&lt;p&gt;Under growing pressure to reveal more about its trading partners, AIG on Sunday detailed how much it paid out to various banks. Goldman was the largest single recipient of AIG bailout funds with $12.9 billion.&lt;/p&gt;

&lt;p&gt;In a statement on Thursday, Goldman said Chief Financial Officer David Viniar would host a conference call with reporters to &quot;clarify certain misperceptions in the press regarding Goldman Sachs' trading relationship with AIG.&quot;&lt;/p&gt;

&lt;p&gt;Goldman officials were not immediately available to comment on the press call.&lt;/p&gt;

&lt;p&gt;Critics in recent weeks have claimed that Goldman, whose alumni populate the halls of government, benefited unfairly from political connections and favoritism.&lt;/p&gt;

&lt;p&gt;Henry Paulson, Treasury Secretary when the initial bailout was arranged last fall, had been chief executive of Goldman.&lt;/p&gt;

&lt;p&gt;The chairman of the Federal Reserve Bank of New York is former Goldman Chairman Steve Friedman.&lt;/p&gt;

&lt;p&gt;Goldman has insisted it did not need any bailout because it was &quot;always fully collateralized and hedged.&quot; The bank also says it was not party to any discussions about a government bailout of AIG.&lt;/p&gt;

&lt;p&gt;In an interview earlier this week, Goldman spokesman Michael DuVally told Reuters &quot;our notional exposure to AIG is a fraction of what it was at the time of the September bailout.&quot;&lt;/p&gt;

&lt;p&gt;Asked why Goldman accepted the $12.9 billion, DuVally said that because AIG was rescued by the government, Goldman did not receive money from hedges that would have been paid had the insurer collapsed. Under the terms of its contracts with AIG, Goldman said it was entitled to collateral.&lt;/p&gt;

&lt;p&gt;Goldman is hardly alone. Other AIG counterparties that indirectly received U.S. funds included France's Societe Generale with $11.9 billion, Deutsche Bank with $11.8 billion and Barclays with $8.5 billion.&lt;/p&gt;

&lt;p&gt;AIG's disclosure did not include payments since December 31.&lt;/p&gt;

&lt;p&gt;These payments to banks have sparked outrage in Congress and among investors who complain AIG's trading counterparties were bought out at par value.&lt;/p&gt;

&lt;p&gt;(Editing by Phil Berlowitz)&lt;/p&gt;</media:text>
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<title>Banks may see brain drain if bonus tax becomes law</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I7IQ20090319</link>
<pubDate>Thu, 19 Mar 2009 15:15:30 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - A bill passed by the U.S. House of Representatives to tax employee bonuses at companies getting $5 billion or more in government bailout funds could send bank employees rushing to the exit sign if it becomes law.]]></description>
<guid isPermaLink="false" >USTRE52I7IQ20090319</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Elinor Comlay&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - A bill passed by the U.S. House of Representatives to tax employee bonuses at companies getting $5 billion or more in government bailout funds could send bank employees rushing to the exit sign if it becomes law.&lt;/p&gt;

&lt;p&gt;The largest banks in the United States would be affected by the legislation, approved on Thursday, which would add a 90 percent tax on bonuses for people earning more than $250,000.&lt;/p&gt;

&lt;p&gt;The result of public and government outrage over $165 million in bonuses paid to employees of American International Group Inc's Financial Products unit, some sources said the legislation would have repercussions far beyond the insurer, which is getting up to $180 billion in public funds.&lt;/p&gt;

&lt;p&gt;&quot;It's terrible public policy with respect to trying to bring institutions back to health,&quot; said Robert Sedgwick, head of the executive compensation practice at law firm Morrison Cohen in New York.&lt;/p&gt;

&lt;p&gt;&quot;These institutions are under siege and their primary asset is their people,&quot; Sedgwick said, explaining that adding taxation to shrinking compensation for bankers will drive people from the business.&lt;/p&gt;

&lt;p&gt;Under the bill, banks including JPMorgan Chase &amp;amp; Co, Bank of America Corp, Citigroup Inc, Goldman Sachs Group and Morgan Stanley could struggle to retain staff, bankers said.&lt;/p&gt;

&lt;p&gt;The U.S. government injected billions of dollars into banks in October under the Troubled Asset Relief Program (TARP) and lawmakers have already placed restrictions on how much compensation these banks may pay top executives.&lt;/p&gt;

&lt;p&gt;&quot;I'll be surprised if anyone's here tomorrow,&quot; joked one senior equity salesman at a bank that received TARP money, adding more seriously that the bill &quot;penalizes the people that are trying to earn their banks' way out of the industry's problems.&quot;&lt;/p&gt;

&lt;p&gt;Banks are unlikely to be able to contest the bill, said the salesman, who asked not be named because he was not speaking on behalf of the bank. He added that lawmakers were unwilling to listen to an industry viewed as the driver for the United States' recession and for costing taxpayers billions in bailout funds.&lt;/p&gt;

&lt;p&gt;&quot;At this point, it's like the French Revolution -- the mob has got the banks' heads in the guillotine,&quot; he said.&lt;/p&gt;

&lt;p&gt;Spokesmen for Morgan Stanley and Goldman Sachs declined comment, and a spokeswoman for Wells Fargo said it was too early to comment. Officials at other banks did not immediately comment.&lt;/p&gt;

&lt;p&gt;The bill could provide a new impetus for banks to try to find ways to repay TARP funds as soon as possible. Already Goldman Sachs, which received $10 billion from the program, has said it was aiming to repay the bailout funds as soon as possible.&lt;/p&gt;

&lt;p&gt;Bank of America Corp has a bonus headache caused by $3.6 billion in bonuses paid by its newly acquired Merrill Lynch unit in December. The bank has indicated it wants to repay government funds by the end of the year or early next year.&lt;/p&gt;

&lt;p&gt;(Reporting by Elinor Comlay; Additional reporting by Jonathan Stempel and Joseph A. Giannone; Editing by Toni Reinhold)&lt;/p&gt;</media:text>
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<title>U.S. commanders say ready for N.Korea missile</title>
<link>http://www.reuters.com/article/topNews/idUSN1945094620090319</link>
<pubDate>Thu, 19 Mar 2009 15:01:24 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The United States could intercept a North Korean missile launched toward U.S. territory with "high probability," the top U.S. commander for the Pacific region said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Paul Eckert, Asia Correspondent&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The United States could intercept a North Korean missile launched toward U.S. territory with &quot;high probability,&quot; the top U.S. commander for the Pacific region said on Thursday.&lt;/p&gt;

&lt;p&gt;Speaking to a U.S. panel amid North Korean preparations for what Pyongyang has said will be a satellite launch in early April, U.S. Pacific Commander Timothy Keating and other senior officers stressed American capabilities without revealing intentions.&lt;/p&gt;

&lt;p&gt;&quot;We have a high probability,&quot; Keating, a U.S. Navy admiral, told a Senate Armed Services Committee hearing when asked if U.S. forces could intercept a missile from North Korea.&lt;/p&gt;

&lt;p&gt;North Korea has said it intends to launch a communications satellite between April 4 and 8, asserting it has the right to do so under its space program. Washington and its allies in Asia see the plan as a disguised long-range missile test.&lt;/p&gt;

&lt;p&gt;The North's Taepodong-2 has a range that could take it to Alaska. But analysts do not expect the United States to intercept the rocket, a move Pyongyang has said it would consider an act of war.&lt;/p&gt;

&lt;p&gt;Air Force General Kevin Chilton, commander of the U.S. Strategic Command, said the missile defense system the United States has been testing and partially deploying over the past decade was &quot;ahead of North Korean capabilities.&quot;&lt;/p&gt;

&lt;p&gt;&quot;In the limited deployment capabilities that we have out today for the system, it is adequate to defend against what we believe the North Koreans could potentially put forward as a threat today,&quot; he told the hearing.&lt;/p&gt;

&lt;p&gt;The United States, South Korea and Japan have said they see no difference between a satellite launch and a missile test.&lt;/p&gt;

&lt;p&gt;&quot;Even if there is a satellite launch on this, as the North Koreans just said it will be, it will help the technology of long-range missiles,&quot; Chilton added.&lt;/p&gt;

&lt;p&gt;Japan's Kyodo news agency reported on Wednesday that Tokyo was clearing the way for the deployment of ballistic missile interceptors. North Korea stunned Tokyo with the launch of a rocket in 1998 that flew over Japan before dropping into the Pacific Ocean.&lt;/p&gt;

&lt;p&gt;North Korea has said the first stage of the rocket would splash down in the Sea of Japan, while the second would land in the Pacific.&lt;/p&gt;

&lt;p&gt;Army General Walter Sharp, commander of U.S. Forces in Korea, said the missile threat is serious because North Korea tested a nuclear bomb in 2006. Proliferation is also a worry, because the government of North Korean leader Kim Jong-il sells missiles to support itself, he said.&lt;/p&gt;

&lt;p&gt;A successful Taepodong-2 launch would go a long way toward &quot;helping him proliferate that to other countries around the world and to be able to get cash back in order to put it back into regime survival,&quot; Sharp told the panel.&lt;/p&gt;

&lt;p&gt;The Pentagon's Missile Defense Agency said on Tuesday it had completed a successful intercept test at a range in Hawaai of a mobile system designed to intercept short to medium range ballistic missiles.&lt;/p&gt;

&lt;p&gt;(Editing by Doina Chiacu and Todd Eastham)&lt;/p&gt;</media:text>
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<title>North Korea guards detain U.S. journalists</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I11S20090319</link>
<pubDate>Thu, 19 Mar 2009 14:57:36 -0600</pubDate>
<description><![CDATA[SEOUL (Reuters) - North Korean security officials have detained two Korean-American journalists who were filming across the Tumen River from the Chinese side of the border, South Korean media and diplomatic sources said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Jack Kim&lt;/p&gt;

&lt;p&gt;SEOUL (Reuters) - North Korean security officials have detained two Korean-American journalists who were filming across the Tumen River from the Chinese side of the border, South Korean media and diplomatic sources said on Thursday.&lt;/p&gt;

&lt;p&gt;The arrests come at a time of mounting tension on the Korean peninsula, with the North accusing the United States and South Korea of using joint military exercises which end on Friday as preparations to invade the isolated state.&lt;/p&gt;

&lt;p&gt;In Washington, a State Department official who spoke on condition that she not be named, said the United States had contacted North Korean authorities about the two, who were detained on Tuesday, and was seeking their immediate release.&lt;/p&gt;

&lt;p&gt;&quot;Two American citizens were taken into custody at the Tumen River border between China and North Korea by North Korean border guards,&quot; she said. &quot;We have been in touch with North Korean authorities to express our concern about this situation and to secure the immediate release of our citizens.&quot;&lt;/p&gt;

&lt;p&gt;A diplomatic source said the reporters were on the frozen Tumen river when taken by North Korean security guards. The Tumen runs along the eastern section of the border with China.&lt;/p&gt;

&lt;p&gt;The YTN channel earlier quoted a South Korean government official as saying North Korean guards crossed the border into Chinese territory to arrest the two women on Tuesday after they ignored warnings to stop filming.&lt;/p&gt;

&lt;p&gt;But the diplomatic source said it was not clear which side of the border they were on at the time.&lt;/p&gt;

&lt;p&gt;YTN said the women worked for an online news company based in California but gave no other details. A media source said the two were working for Current TV, a U.S.-based online news company.&lt;/p&gt;

&lt;p&gt;Chinese Foreign Ministry spokesman Qin Gang said Beijing was investigating the report and declined to comment further. South Korea's foreign ministry also declined to confirm YTN's report.&lt;/p&gt;

&lt;p&gt;YTN said a man was also with the pair from the same news organization but managed to escape.&lt;/p&gt;

&lt;p&gt;&quot;It's difficult to comment on this matter because it involves a U.S. citizen, but our government is aware that a U.S. journalist is in detention in the North,&quot; the senior South Korean government official was quoted as saying.&lt;/p&gt;

&lt;p&gt;Tensions have escalated on the Korean peninsula in recent weeks.&lt;/p&gt;

&lt;p&gt;North Korea has said it will launch a missile early in April as part of its space communications program, but the United States says the launch is intended to test a rocket that could potentially carry a warhead as far as U.S. territory.&lt;/p&gt;

&lt;p&gt;North Korean Premier Kim Yong-il is visiting China, the nearest the impoverished state has to a major ally and a key source of economic aid.&lt;/p&gt;

&lt;p&gt;China has avoided openly pressuring the North over its plans to launch the rocket.&lt;/p&gt;

&lt;p&gt;In publicly reported comments to Kim, Chinese President Hu Jintao kept to that gentle approach, avoiding direct mention of the rocket issue.&lt;/p&gt;

&lt;p&gt;&quot;We hope all sides will take the broader perspective to appropriately resolve existing disputes,&quot; Hu told Kim, according to Chinese state radio news.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Shin Jieun in SEOUL, Chris Buckley in BEIJING; and Arshad Mohammed in WASHINGTON; Editing by Jonathan Thatcher and Paul Tait)&lt;/p&gt;</media:text>
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<title>AIG turns over bonus details to NY Attorney General</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I7BP20090319</link>
<pubDate>Thu, 19 Mar 2009 14:48:07 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - American International Group Inc turned over details on Thursday of bonus recipients in an investigation by New York's top legal officer, who promised to be sensitive to the company's concerns for the security of its employees.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Grant McCool&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - American International Group Inc turned over details on Thursday of bonus recipients in an investigation by New York's top legal officer, who promised to be sensitive to the company's concerns for the security of its employees.&lt;/p&gt;

&lt;p&gt;&quot;The Attorney General's Office will responsibly balance the public's right to know how their tax dollars are spent with individual security, privacy rights, and corporate prerogative,&quot; New York Attorney General Andrew Cuomo said in a statement after the insurance company complied with a subpoena.&lt;/p&gt;

&lt;p&gt;AIG Chief Executive Edward Liddy told a congressional committee on Wednesday that some executives had received death threats as public outrage grew over multi-million dollar bonuses within companies that had received taxpayer money to stay afloat.&lt;/p&gt;

&lt;p&gt;&quot;At this moment, with emotions running high, it is important that we proceed diligently, with care, reflection, and sober judgment,&quot; said Cuomo, who had set a deadline of the close of business on Thursday for AIG to provide names and details of bonuses paid to members of its Financial Products division.&lt;/p&gt;

&lt;p&gt;For months, Cuomo has been pressing for details on compensation paid to executives at several banks and companies that received U.S. government bailout funds.&lt;/p&gt;

&lt;p&gt;Cuomo's investigation is intended to determine if companies broke securities laws by not disclosing certain information, such as the awarding of bonuses. Executives at AIG received $165 million in bonuses at the weekend.&lt;/p&gt;

&lt;p&gt;Cuomo said on Thursday that his office would work with AIG in coming days to determine which employees received the payments and who had returned them. Liddy said in his testimony on Wednesday that some bonus recipients had already agreed to return the payments in full.&lt;/p&gt;

&lt;p&gt;AIG said it was pleased to resolve the issue of divulging the names of the recipients with Cuomo's office.&lt;/p&gt;

&lt;p&gt;&quot;We are confident that the Attorney General will thoroughly weigh the safety risks before disclosing any employee's name, and we look forward to continuing to work with him on these issues in a cooperative and constructive manner,&quot; the company said in a statement.&lt;/p&gt;

&lt;p&gt;Cuomo released details of his AIG probe earlier this week, saying 73 AIG employees had received bonuses of $1 million or more in 2008, even as the insurer was being supported by some $180 billion in taxpayer bailout money.&lt;/p&gt;

&lt;p&gt;Cuomo told reporters on a conference call earlier on Thursday that in accordance with a state court ruling published on Wednesday, he expects Bank of America Corp to hand over the names of the 200 highest bonus earners in 2008 at Merrill Lynch &amp;amp; Co. The bank has said it would comply with the ruling.&lt;/p&gt;

&lt;p&gt;At Merrill, bonuses totaling $3.6 billion were paid just before the company was bought by Bank of America on January 1.&lt;/p&gt;

&lt;p&gt;(Reporting by Grant McCool; Editing by Toni Reinhold)&lt;/p&gt;</media:text>
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<title>California prison releases Charles Manson picture</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I6MG20090319</link>
<pubDate>Thu, 19 Mar 2009 13:27:18 -0600</pubDate>
<description><![CDATA[LOS ANGELES (Reuters) - California corrections officials released a new photograph of imprisoned mass murderer Charles Manson on Thursday, showing the balding, gray-bearded killer at the age of 74.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Dan Whitcomb&lt;/p&gt;

&lt;p&gt;LOS ANGELES (Reuters) - California corrections officials released a new photograph of imprisoned mass murderer Charles Manson on Thursday, showing the balding, gray-bearded killer at the age of 74.&lt;/p&gt;

&lt;p&gt;The picture, which was taken at Corcoran State Prison in Central California, also reveals a glum Manson still bearing the swastika he carved into his forehead during his sensational 1970 murder trial.&lt;/p&gt;

&lt;p&gt;Manson became one of the 20th century's most infamous criminals during the summer of 1969, when the Beatles-obsessed ex-con directed his mostly young, female followers to murder seven people.&lt;/p&gt;

&lt;p&gt;Among the victims was eight-months pregnant actress Sharon Tate, the wife of filmmaker Roman Polanski. She was stabbed 16 times by members of the Manson Family in the early morning hours of August 9, 1969.&lt;/p&gt;

&lt;p&gt;Four other people were also stabbed or shot to death in Tate's home that night by the group, who scrawled the word &quot;Pig&quot; in blood on the front door before leaving.&lt;/p&gt;

&lt;p&gt;The following night members of the family stabbed Leno and Rosemary LaBianca to death, using their blood to write &quot;Rise,&quot; &quot;Death to Pigs&quot; and &quot;Healter Skelter&quot; -- a misspelled reference to the Beatles song &quot;Helter Skelter&quot; -- on the walls and refrigerator door.&lt;/p&gt;

&lt;p&gt;Manson was convicted and sentenced to death in  1971 but was spared execution when California abolished the death penalty the following year.&lt;/p&gt;

&lt;p&gt;He has been denied parole 11 times and is next scheduled for a hearing in 2012.&lt;/p&gt;

&lt;p&gt;(Editing by Eric Walsh)&lt;/p&gt;</media:text>
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<title>U.N. rights envoy sees Israeli war crimes in Gaza</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I67M20090319</link>
<pubDate>Thu, 19 Mar 2009 12:59:51 -0600</pubDate>
<description><![CDATA[GENEVA (Reuters) - A United Nations human rights investigator said on Thursday that Israel's military assault on densely populated Gaza appeared to constitute a grave war crime.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Stephanie Nebehay&lt;/p&gt;

&lt;p&gt;GENEVA (Reuters) - A United Nations human rights investigator said on Thursday that Israel's military assault on densely populated Gaza appeared to constitute a grave war crime.&lt;/p&gt;

&lt;p&gt;Richard Falk, U.N. special rapporteur on human rights in the Palestinian territories, said the Geneva Conventions required warring forces to distinguish between military targets and surrounding civilians.&lt;/p&gt;

&lt;p&gt;&quot;If it is not possible to do so, then launching the attacks is inherently unlawful and would seem to constitute a war crime of the greatest magnitude under international law,&quot; Falk said.&lt;/p&gt;

&lt;p&gt;&quot;On the basis of the preliminary evidence available, there is reason to reach this conclusion,&quot; he wrote in an annual 26-page report submitted to the U.N. Human Rights Council.&lt;/p&gt;

&lt;p&gt;Falk gave the same death toll from Israel's offensive in December and January -- 1,434 Palestinians, including 960 civilians -- as the Palestinian human rights center.&lt;/p&gt;

&lt;p&gt;Israel, which lost 13 people during the war, disputes the figures and has accused Hamas fighters in Gaza of using civilians as human shields during the conflict -- an allegation which Falk said should be investigated.&lt;/p&gt;

&lt;p&gt;He called the Israeli attacks a &quot;massive assault on a densely populated urbanized setting&quot; in which the entire civilian population had been subjected to &quot;an inhumane form of warfare that kills, maims and inflicts mental harm.&quot;&lt;/p&gt;

&lt;p&gt;&quot;As all borders were sealed, civilians could not escape from the orbit of harm,&quot; he said.&lt;/p&gt;

&lt;p&gt;This denial of people's right to flee the war zone as refugees may also constitute a crime against humanity, he said.&lt;/p&gt;

&lt;p&gt;WAR CRIMES PROBE&lt;/p&gt;

&lt;p&gt;Falk called for an independent experts group to probe possible war crimes committed by both Israeli forces and Hamas. It should gather eyewitness testimony as well as explanations from Israeli and Palestinian military commanders.&lt;/p&gt;

&lt;p&gt;Violations included Israel's alleged &quot;targeting of schools, mosques and ambulances&quot; during the offensive, which lasted from December 27 to January 18, and its use of weapons including white phosphorus, as well as Hamas's firing of rockets at civilian targets in southern Israel.&lt;/p&gt;

&lt;p&gt;Falk said that Israel's blockade of the coastal strip of 1.5 million people violated the Geneva Conventions and this suggested further war crimes and possibly crimes against humanity.&lt;/p&gt;

&lt;p&gt;The aggression was not legally justified and may represent a &quot;crime against peace&quot; -- a principle established at the Nuremberg trials of Nazi war criminals, according to Falk, an American law professor who serves as the Human Rights Council's independent investigator.&lt;/p&gt;

&lt;p&gt;Falk, who is Jewish, suggested the Security Council might set up an ad hoc criminal tribunal to establish accountability for war crimes in Gaza, noting Israel has not signed the Rome statutes establishing the International Criminal Court.&lt;/p&gt;

&lt;p&gt;He was denied entry to Israel two weeks before the assault started, forcing him to abort a planned mission to Gaza. In his report, he said that the refusal had set an &quot;unfortunate precedent&quot; for treatment of a special rapporteur.&lt;/p&gt;

&lt;p&gt;On Monday, he is to present his report formally to the Human Rights Council, a 47-member forum where Islamic and African countries backed by China, Cuba and Russia have a majority. Neither Israel nor its chief ally the United States are members.&lt;/p&gt;

&lt;p&gt;(Editing by Mark Trevelyan and Jonathan Wright)&lt;/p&gt;</media:text>
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<title>House votes to recoup bonuses from bailed-out firms</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I6ET20090319</link>
<pubDate>Thu, 19 Mar 2009 12:51:38 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Moving with unusual speed, the U.S. House of Representatives on Thursday passed a bill to tax bonuses to employees at companies getting federal bailout money and recoup most of the $165 million paid to American International Group Inc executives.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Jeremy Pelofsky and Susan Cornwell&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - Moving with unusual speed, the U.S. House of Representatives on Thursday passed a bill to tax bonuses to employees at companies getting federal bailout money and recoup most of the $165 million paid to American International Group Inc executives.&lt;/p&gt;

&lt;p&gt;AIG complied with a subpoena and provided details of bonus recipients to New York Attorney General Andrew Cuomo. But he said his office -- aware of threats made against AIG employees -- would conduct a risk assessment before releasing any names.&lt;/p&gt;

&lt;p&gt;The House, responding quickly to public outrage over the bonuses after the giant insurer received up to $180 billion in U.S. aid, voted 328-93 to approve a 90 percent tax on bonuses for certain executives at companies getting government aid.&lt;/p&gt;

&lt;p&gt;The tax would apply to executives with incomes over $250,000 who worked for companies that received at least $5 billion in federal aid. That would include others getting help, such as mortgage financing company Fannie Mae.&lt;/p&gt;

&lt;p&gt;&quot;The whole idea that they should be rewarded millions of dollars is repugnant to everything that decent people believe in,&quot; said Representative Charlie Rangel, the Democratic chairman of the tax-writing Ways and Means Committee.&lt;/p&gt;

&lt;p&gt;Anger over the bonuses at AIG and other large companies that have received federal bailout money threatens to undermine confidence in President Barack Obama's efforts to solve the financial crisis and pull the economy out of a deep recession.&lt;/p&gt;

&lt;p&gt;The Senate as early as Friday could consider its own plan to recoup the bonuses via a 70 percent excise tax for companies that received at least $100 million from the $700 billion bailout fund.&lt;/p&gt;

&lt;p&gt;The two chambers would have to reconcile any differences to bills they pass before it could go to Obama for signing and become law.&lt;/p&gt;

&lt;p&gt;GEITHNER TAKES RESPONSIBILITY&lt;/p&gt;

&lt;p&gt;Treasury Secretary Timothy Geithner, who has come under heavy fire during the AIG scandal, said on Thursday he took responsibility for the controversy surrounding bonus payments.&lt;/p&gt;

&lt;p&gt;Geithner repeated in an interview on CNN that he first learned of the bonuses last Tuesday, March 10, and said that if fault was to be assigned for not knowing earlier, then it lay with him.&lt;/p&gt;

&lt;p&gt;&quot;On Tuesday I was informed about the full scale and scope of these specific bonus problems,&quot; Geithner said. &quot;You know, it's my responsibility, I was in a position where I didn't know about these sooner, I take full responsibility for that.&quot;&lt;/p&gt;

&lt;p&gt;The bonus flap expanded with Connecticut Attorney General Richard Blumenthal demanding AIG turn over a list of recipients and how much they received. He also pressed the employees to &quot;do the right thing&quot; and return the money.&lt;/p&gt;

&lt;p&gt;In New York, Cuomo said he had already received details about who received the bonuses.&lt;/p&gt;

&lt;p&gt;He also said Bank of America Corp was expected to hand over the names of the 200 top bonus earners at Merrill Lynch &amp;amp; Co from last year,, another potential embarrassment for the bailout process.&lt;/p&gt;

&lt;p&gt;Goldman Sachs Group Inc plans to respond publicly to what it described as misperceptions about its trading relationship with AIG after it was paid $12.9 billion by AIG from bailout funds.&lt;/p&gt;

&lt;p&gt;While many in Congress have called for quick moves to &quot;claw back&quot; the bonus money, some Senate Republicans are raising questions about whether legislation will pass quickly.&lt;/p&gt;

&lt;p&gt;&quot;Until we have hearings and we understand all this, we are not going to know what kind of fix to implement,&quot; Senate Republican Whip Jon Kyl told reporters.&lt;/p&gt;

&lt;p&gt;AIG Chief Executive Edward Liddy told Congress on Wednesday he has asked employees to give back at least half of their retention awards and that some had already given back their entire bonuses -- which were awarded with the goal of keeping the company's top talent.&lt;/p&gt;

&lt;p&gt;While nearly half of House Republicans, 85, voted to approve the bill, many were furious and blamed Democrats who control Congress and the White House for allowing the bonuses to be paid in the first place.&lt;/p&gt;

&lt;p&gt;Some also questioned whether the legislation approved would survive court challenges. &quot;It's unconstitutional what they want to do, it's wrong what they want to do,&quot; Representative Steve LaTourette said during floor debate.&lt;/p&gt;

&lt;p&gt;House Speaker Nancy Pelosi defended the legislation, which limits the tax to those who make over $250,000, saying it was done to avoid hurting rank and file workers.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Thomas Ferraro and Grant McCool; Editing by Dan Grebler)&lt;/p&gt;</media:text>
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<title>GE sees its finance unit profitable in 2009</title>
<link>http://www.reuters.com/article/topNews/idUSN1942306020090319</link>
<pubDate>Thu, 19 Mar 2009 12:00:41 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - General Electric Co expects GE Capital to be profitable this year, though if the U.S. economy deteriorates more than the Federal Reserve currently estimates, the finance unit could post break-even results, company executives said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Scott Malone&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - General Electric Co expects GE Capital to be profitable this year, though if the U.S. economy deteriorates more than the Federal Reserve currently estimates, the finance unit could post break-even results, company executives said on Thursday.&lt;/p&gt;

&lt;p&gt;Stress-testing based on the Fed's baseline scenario for the economy shows that the unit's profit could be $2 billion to $2.5 billion this year, GE Capital's Chief Executive Michael Neal said.&lt;/p&gt;

&lt;p&gt;&quot;Even in the adverse case we're probably break-even to slightly profitable,&quot; Neal said at a special meeting the company called with investors and analysts to reassure them about GE's health.&lt;/p&gt;

&lt;p&gt;The multinational U.S. conglomerate had forecast in December that its GE Capital unit would earn about $5 billion in 2009. GE's finance operations, its largest segment, include commercial and consumer finance, aircraft leasing, real estate and energy financial services.&lt;/p&gt;

&lt;p&gt;GE, the world's 12th largest company by revenue in 2008 according to Fortune magazine, is viewed as a bellwether of the U.S. economy because of the breadth and reach of its operations and how widely held its shares are. About 40 percent of the stock is held by individual investors.&lt;/p&gt;

&lt;p&gt;GE produces aircraft engines, locomotives, household appliances, lighting and more, and has operations in more than 100 countries.&lt;/p&gt;

&lt;p&gt;GE officials emphasized the tighter standards and controls GE has over its finance operations, compared to commercial banks. Commercial banks around the world have been slammed by exposure to mortgage and consumer credit defaults, driving their stock prices down.&lt;/p&gt;

&lt;p&gt;Unlike many U.S. banks, GE has no exposure to U.S. construction loans or U.S. mortgages, said Jeff Bornstein, GE Capital's chief financial officer.&lt;/p&gt;

&lt;p&gt;GE executives pointed out that the company's private-label credit card business, one of its segments most vulnerable to U.S. unemployment, has a different risk profile than the typical U.S. credit card business.&lt;/p&gt;

&lt;p&gt;GE's private-label credit card customers on average have a balance of $620 on a credit limit of $2,512, below an average $3,000 balance on a limit of $10,800 for the typical bank card.&lt;/p&gt;

&lt;p&gt;Mark Begor, president and CEO of GE Money Americas, said that after its exit from the U.S. subprime lending business two years ago, GE tightened its consumer credit standards.&lt;/p&gt;

&lt;p&gt;&quot;We really moved almost two years ago to take action on underwriting,&quot; Begor said.&lt;/p&gt;

&lt;p&gt;Begor said GE expects to cut its worldwide origination of home mortgages to $1 billion this year, down from $13.8 billion in 2008.&lt;/p&gt;

&lt;p&gt;Shares of GE, based in Fairfield, Connecticut, were rose 1.94 percent, or 20 cents, to $10.52 in afternoon trading on the New York Stock Exchange, after rising earlier in the session as high as $11.35, their best level since February 13.&lt;/p&gt;

&lt;p&gt;HANDLING THE STRESS&lt;/p&gt;

&lt;p&gt;GE plans to use some of its $60 billion in capacity left under the U.S.-government backed Temporary Liquidity Guarantee Program (TLGP) to pre-fund debt due to mature in 2010, said Treasurer Kathy Cassidy.&lt;/p&gt;

&lt;p&gt;In October, the Federal Deposit Insurance Corp introduced TLGP to guarantee certain bank debt to increase confidence in the banking industry, add more liquidity and reduce the risk of bank runs.&lt;/p&gt;

&lt;p&gt;GE, the world's largest maker of jet engines and electricity-producing turbines, has run extensive stress tests on GE Capital's portfolio and found that even in its worst-case scenario GE would not see itself needing to raise capital, Chief Financial Officer Keith Sherin said.&lt;/p&gt;

&lt;p&gt;GE Capital, which has businesses ranging from investing in commercial real estate to financing sales of heavy equipment made by GE, last year recorded profit of about $8.6 billion, about 33 percent of the GE total.&lt;/p&gt;

&lt;p&gt;Company officials noted that even in what it considers the riskiest portion of its real estate loan portfolio, some 92 percent of its customers are current in their payments and a large portion of the portfolio is supported by other guarantees.&lt;/p&gt;

&lt;p&gt;GE plans to operate all its properties over the long term, said Ron Pressman, president and CEO of GE Real Estate.&lt;/p&gt;

&lt;p&gt;Because GE does not use debt to fund most real estate investments and does not mark up the value of its properties, instead depreciating them by 3 percent per year, it has not had to write down the value of its property investments to the degree that many real estate funds have, executives said.&lt;/p&gt;

&lt;p&gt;REAL ESTATE LOSSES&lt;/p&gt;

&lt;p&gt;The U.S. government has launched a stress test program that will assess banks' ability to cope with worse-than-expected financial conditions to determine how much additional capital banks may need.&lt;/p&gt;

&lt;p&gt;Economists at the U.S. central bank have established a 'baseline' scenario that calls for the U.S. economy to contract by 2 percent this year, with a rebound in 2010, and assumes 8.4 percent unemployment. The Fed's 'adverse' scenario calls for a 3.3 percent economic contraction and 8.9 percent unemployment.&lt;/p&gt;

&lt;p&gt;GE said that based on stress-testing using the Federal Reserve's baseline scenario for the U.S. economy, it would expect $900 million in losses against loans at its GE Real Estate portfolio, representing an implied default rate of 8 percent.&lt;/p&gt;

&lt;p&gt;Assuming the Fed's adverse case for the economy, that number would rise to $1 billion, or an implied default rate of 10 percent. Its current implied default rate is 1.01 percent, said Jayne Day of GE Real Estate.&lt;/p&gt;

&lt;p&gt;Concerns over how well GE Capital is reserved against an expected rise in defaults have hammered the company's shares. GE's stock is down about 71 percent over the past year, a steeper slide than the 38 percent fall of the Dow Jones industrial average.&lt;/p&gt;

&lt;p&gt;Last month, GE cut its dividend by 68 percent in a move to conserve cash. As of March 10, it had raised $40 billion of the $45 billion it had planned to seek on debt markets in 2009.&lt;/p&gt;

&lt;p&gt;Standard &amp;amp; Poor's last week stripped GE of its &quot;AAA&quot; credit rating. Some investors took its one-notch cut as a sign that there were no major surprises lurking in GE Capital.&lt;/p&gt;

&lt;p&gt;(Reporting by Scott Malone and Nick Zieminski, editing by Gerald E. McCormick, Dave Zimmerman, Toni Reinhold)&lt;/p&gt;</media:text>
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<title>Sen. Dodd favors split in financial regulation overhaul</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I5XJ20090319</link>
<pubDate>Thu, 19 Mar 2009 11:40:08 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Two key U.S. financial regulation reforms -- bringing systemic risk into focus and coping with failing firms -- should be handled separately, not by one agency, a key U.S. lawmaker said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Kevin Drawbaugh and John Poirier&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - Two key U.S. financial regulation reforms -- bringing systemic risk into focus and coping with failing firms -- should be handled separately, not by one agency, a key U.S. lawmaker said on Thursday.&lt;/p&gt;

&lt;p&gt;Senate Banking Committee Chairman Christopher Dodd also said at a committee hearing that it was an &quot;open question&quot; whether the U.S. Federal Reserve should become a &quot;systemic risk regulator,&quot; a potential reform that some lawmakers favor.&lt;/p&gt;

&lt;p&gt;With a panel of seven banking regulators, each from a different agency, disagreeing on these and other questions, the hearing chaired by Dodd underscored how very far the United States has yet to go to revamp its regulatory system.&lt;/p&gt;

&lt;p&gt;The Senate committee convened one day after the Britain's Financial Services Authority (FSA), the country's central financial regulator, issued a hard-hitting report calling for banks to retain more capital and appealed for global cooperation.&lt;/p&gt;

&lt;p&gt;both British Prime Minister Gordon Brown and U.S. President Barack Obama are keen to find common ground on doing a better job of regulating international finance ahead of an April 2 London summit of the Group of 20 leading economic powers.&lt;/p&gt;

&lt;p&gt;But U.S. lawmakers are so far apart on fundamental issues, it looks likely Obama will only be able to carry the most basic principles to the G20, lobbyists said.&lt;/p&gt;

&lt;p&gt;While progress toward legislation may be forthcoming by early May in the House of Representatives, where a clear agenda has been outlined and Democrats have firm control, it may bog down in the Senate, which is more closely divided.&lt;/p&gt;

&lt;p&gt;The danger in the Senate, lobbyists say, is that financial regulation reform could come down to passing a single, massive bill -- a prospect that could take many months before a vote.&lt;/p&gt;

&lt;p&gt;&quot;They may all start trying to land their stuff on this aircraft carrier,&quot; said one financial sector lobbyist.&lt;/p&gt;

&lt;p&gt;OFF A CLIFF&lt;/p&gt;

&lt;p&gt;Global banks, hedge funds, insurers and other institutions nearly ran the global financial system off a cliff last year, dragging the world's major economies into a deep downturn.&lt;/p&gt;

&lt;p&gt;Gaps in government oversight encouraged the excesses in securitized debt and derivatives markets behind the crisis, many critics say.&lt;/p&gt;

&lt;p&gt;An Obama administration official told Reuters on Wednesday the president will soon propose reform principles aimed at preventing problems like the 2008 blow-ups of Wall Street investment banks Bear Stearns and Lehman Brothers, and the controversial bailout of insurer American International Group Inc.&lt;/p&gt;

&lt;p&gt;The White House and Treasury Department have been working for weeks with Congress on regulatory reforms, but the hearing before Dodd, a Democrat, showed deep differences remain.&lt;/p&gt;

&lt;p&gt;Top U.S. bank regulators gave the committee competing views on establishing a &quot;systemic risk regulator&quot; that would monitor and manage the financial big picture, and empowering an agency to deal with major failing nonbank financial institutions.&lt;/p&gt;

&lt;p&gt;The panel of seven regulators sat at a long table facing Dodd. At one point, he waved his hand from one end of the table to the other and remarked: &quot;This is the problem, we have a regulatory structure that is too big to succeed.&quot;&lt;/p&gt;

&lt;p&gt;Federal Reserve Governor Daniel Tarullo said a systemic risk regulator would be helpful, but that there is disagreement on what the job entails and which agency should do it. If such a regulator is created, the Fed should be involved, he said.&lt;/p&gt;

&lt;p&gt;He added that a systemic risk regulator's duties should not include resolving troubled non-bank financial institutions, but that such a regulator should have some say in that process.&lt;/p&gt;

&lt;p&gt;But Federal Deposit Insurance Corp Chairman Sheila Bair said a systemic risk regulator would have only an &quot;incremental benefit.&quot; The FDIC's long-established process for dealing with troubled banks could also be applied to non-bank financial firms, she said.&lt;/p&gt;

&lt;p&gt;She added that any reform debate needed also to include the Securities and Exchange Commission and the Commodity Futures Trading Commission, both absent from the hearing.&lt;/p&gt;

&lt;p&gt;Meanwhile, U.S. Comptroller of the Currency John Dugan said the systemic risk regulator and Treasury should be responsible for resolving failing non-bank firms, not the FDIC.&lt;/p&gt;

&lt;p&gt;&quot;It is clear that the United States has too many bank regulators,&quot; he noted.&lt;/p&gt;</media:text>
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<title>AIG faces possible court action on bonus detail: Cuomo</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I5U520090319</link>
<pubDate>Thu, 19 Mar 2009 11:28:45 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - American International Group will be taken to court if it does not provide details Thursday of bonus recipients that were requested under a subpoena, New York Attorney General Andrew Cuomo said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - American International Group will be taken to court if it does not provide details Thursday of bonus recipients that were requested under a subpoena, New York Attorney General Andrew Cuomo said.&lt;/p&gt;

&lt;p&gt;Cuomo also told reporters on a conference call that he expected Bank of America to provide the names of 200 highest bonus earners at Merrill Lynch &amp;amp; Co last year under a state court ruling published Wednesday, which said the names were not a trade secret and could be made public.&lt;/p&gt;

&lt;p&gt;(Reporting by Grant McCool)&lt;/p&gt;</media:text>
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<title>FACTBOX: Austrian incest father Josef Fritzl</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I5MC20090319</link>
<pubDate>Thu, 19 Mar 2009 10:58:48 -0600</pubDate>
<description><![CDATA[(Reuters) - Josef Fritzl was convicted of rape, enslavement and murder on Thursday for locking up and raping his daughter in a cellar over 24 years, and causing the death by neglect of one of their seven children. He was sentenced to life in a psychiatric prison.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Josef Fritzl was convicted of rape, enslavement and murder on Thursday for locking up and raping his daughter in a cellar over 24 years, and causing the death by neglect of one of their seven children. He was sentenced to life in a psychiatric prison.&lt;/p&gt;

&lt;p&gt;Following are some facts about the 73-year-old Austrian.&lt;/p&gt;

&lt;p&gt;* Born on April 9, 1935, Fritzl was raised as an unwanted only child. He told the psychiatric expert who interviewed him in jail that his mother had mistreated him during his childhood. Psychiatrist Adelheid Kastner said this contributed to a severe personality disorder including an inability to show compassion and a strong wish to dominate other people. But she said he was always aware that what he was doing was wrong and declared him fit for trial. &quot;On a mental level, everything works well, on an emotional level, there is a massive deficit,&quot; she said.&lt;/p&gt;

&lt;p&gt;* Fritzl lured his daughter Elisabeth, then 18 years old, into the cellar of the family home in Amstetten in 1984. He locked her up in the cellar for the next 24 years, raped her and fathered seven children with her, one of whom died as an infant in 1996 because Fritzl failed to get him medical help. Three of the children remained in the cellar, while Fritzl took three others upstairs and raised them with his wife.&lt;/p&gt;

&lt;p&gt;* To cover up his second life, Fritzl made up a story that explained both Elisabeth's absence and the fact that he raised some of her children. He told authorities, neighbors and friends that Elisabeth had run away to join a sect. To corroborate this version, he forced her to write a letter asking her family not to try to contact her. He told his wife and neighbors that Elisabeth had abandoned the children. He once even pretended to be Elisabeth in a phone call to his wife Rosemarie.&lt;/p&gt;

&lt;p&gt;* Fritzl, trained as electrical engineer, had planned the cellar for years, expanding it as his hidden family grew. It had a sliding reinforced concrete door locked by a numeric code, as well as a crude ventilation system.&lt;/p&gt;

&lt;p&gt;* Fritzl began work as an electrician at an Austrian steelmaker and later worked in the concrete industry. He also bought several houses to earn rental income. However, he has since been declared bankrupt and his assets will be liquidated.&lt;/p&gt;

&lt;p&gt;(Reporting by Boris Groendahl, Editing by Mark Trevelyan)&lt;/p&gt;</media:text>
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<title>U.S. throws lifeline to distressed auto suppliers</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I53520090319</link>
<pubDate>Thu, 19 Mar 2009 10:10:00 -0600</pubDate>
<description><![CDATA[WASHINGTON/DETROIT (Reuters) - The Obama administration pledged up to $5 billion on Thursday to aid stressed auto suppliers crucial to the survival of U.S. car manufacturers.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By David Lawder and Soyoung Kim&lt;/p&gt;

&lt;p&gt;WASHINGTON/DETROIT (Reuters) - The Obama administration pledged up to $5 billion on Thursday to aid stressed auto suppliers crucial to the survival of U.S. car manufacturers.&lt;/p&gt;

&lt;p&gt;Treasury Department financing from a program that bailed out General Motors Corp and Chrysler LLC in December will flow through auto companies that want to participate. It is designed to maintain a reliable network of parts to auto companies and ensure that suppliers get paid.&lt;/p&gt;

&lt;p&gt;The shares of suppliers and GM rose sharply on the development, which was the first test of an administration task force overseeing industry restructuring, especially at GM and Chrysler.&lt;/p&gt;

&lt;p&gt;The Dow Jones automobiles and parts index was up more than 4 percent. Lear Corp shares more than doubled, while American Axle &amp;amp; Manufacturing Holdings Inc surged 48 percent. GM gained 9.5 percent.&lt;/p&gt;

&lt;p&gt;&quot;The Supplier Support Program will stabilize a critical component of the American auto industry during the difficult period of restructuring that lies ahead,&quot; Treasury Secretary Timothy Geithner said in a statement.&lt;/p&gt;

&lt;p&gt;Bob McKenna, the supply industry's top lobbyist as president of the Motor and Equipment Manufacturers Association, said the move signaled the government would not let the U.S. auto industry collapse.&lt;/p&gt;

&lt;p&gt;&quot;I'm sure there will be more coming out on GM and Chrysler in the next couple of days,&quot; McKenna said.&lt;/p&gt;

&lt;p&gt;The government is also considering a request for up to $22 billion in additional aid for GM and Chrysler if they can prove viability. The two received a $17.4 billion bailout in December.&lt;/p&gt;

&lt;p&gt;Suppliers had requested up to $25.5 billion in emergency funding, saying two-thirds of some 5,000 companies face financial distress due to the drastic cutback in production that accelerated in the early weeks of 2009.&lt;/p&gt;

&lt;p&gt;Major suppliers, including Lear and American Axle received warnings this month from auditors about their ability to continue as a &quot;going concern,&quot; while Visteon Corp has warned it was in danger of breaching its debt covenants.&lt;/p&gt;

&lt;p&gt;Lear said on Tuesday it may be required to file for bankruptcy protection, despite winning an agreement with lenders that gives it until May 15 to restructure its debt- heavy balance sheet.&lt;/p&gt;

&lt;p&gt;Suppliers receive payment 45 days to 60 days after delivering parts and analysts have warned of a wave of failures in March and April, when the near-total shutdown in U.S. auto production at the beginning of the year starts to hit balance sheets.&lt;/p&gt;

&lt;p&gt;U.S. auto sales tumbled almost 39 percent through the first two months of 2009 to their lowest levels in 27 years.&lt;/p&gt;

&lt;p&gt;Payments to suppliers from Detroit automakers are expected to fall to $2.4 billion in March, compared with $8.7 billion in December, according to McKenna's group.&lt;/p&gt;

&lt;p&gt;Domestic automakers that choose to participate will act as gatekeepers for the $5 billion supplier aid fund, which will be administered through a bank that has not yet been named.&lt;/p&gt;

&lt;p&gt;Under the program, suppliers will have to pay a fee to participate. Companies can opt to pay 2 percent to secure a government-guarantee of funds they are owed by automakers.&lt;/p&gt;

&lt;p&gt;Such receivables are typically paid out in 45 days or more and industry executives have said the government guarantee would allow cash-strapped suppliers easier access to bank lending that dried up last year amid deepening concern about the viability of the U.S. automakers.&lt;/p&gt;

&lt;p&gt;For a higher payment of 3 percent of the amount due, suppliers can opt to be paid immediately from the $5 billion fund, according to people who have been briefed on the program.&lt;/p&gt;

&lt;p&gt;(Reporting by David Lawder and John Crawley in Washington and Soyoung Kim and Kevin Krolicki in Detroit; editing by Gary Crosse and Andre Grenon)&lt;/p&gt;</media:text>
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<title>Auto supplier shares leap on bailout news</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I5DX20090319</link>
<pubDate>Thu, 19 Mar 2009 10:09:55 -0600</pubDate>
<description><![CDATA[DETROIT (Reuters) - News that the U.S. Treasury had pledged up to $5 billion in financing support to struggling auto suppliers sent shares in auto parts makers soaring on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;DETROIT (Reuters) - News that the U.S. Treasury had pledged up to $5 billion in financing support to struggling auto suppliers sent shares in auto parts makers soaring on Thursday.&lt;/p&gt;

&lt;p&gt;The price of Lear stock more than doubled shortly after the news, before slipping to $1.25, or 75 percent above the stock's Wednesday close on the New York Stock Exchange of 72 cents.&lt;/p&gt;

&lt;p&gt;Shares in American Axle &amp;amp; Manufacturing Holdings Inc were up 48 percent, ArvinMeritor rose more than 19 percent, Tenneco Inc jumped more than 66 percent, TRW Automotive Holdings Corp were up more than 22 percent and Noble International Ltd leaped more than 57 percent.&lt;/p&gt;

&lt;p&gt;The U.S. government bailout plan is designed to help auto suppliers survive a massive downturn in car sales.&lt;/p&gt;

&lt;p&gt;Shares of General Motors Corp and Ford Motor Co also rallied on relief that the federal bailout of suppliers would stave off a disorderly failure of the supply base that could disrupt production at a time when the automakers can least afford it.&lt;/p&gt;

&lt;p&gt;A failure of large suppliers would be very expensive to all automakers manufacturing in North America because of the interlocking chain of U.S. parts suppliers.&lt;/p&gt;

&lt;p&gt;Shares of GM jumped 9.5 percent to $2.89, while Ford shares were up 1 cent to $2.46.&lt;/p&gt;

&lt;p&gt;Major suppliers including Lear and American Axle each received warnings this month from auditors over their ability to continue as a &quot;going concern&quot; while Visteon Corp has warned it was in danger of breaching its debt covenants.&lt;/p&gt;

&lt;p&gt;Lear said on Tuesday it may be required to file for bankruptcy protection despite winning an agreement with lenders that gives it until May 15 to restructure its debt-heavy balance sheet.&lt;/p&gt;

&lt;p&gt;(Reporting by Nick Carey and Soyoung Kim; Editing by Brian Moss)&lt;/p&gt;</media:text>
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<title>Some rescued companies owe U.S. taxes: lawmaker</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I4LO20090319</link>
<pubDate>Thu, 19 Mar 2009 10:07:32 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Some top recipients of U.S. bailout money owe the federal government more than $220 million in unpaid taxes, a U.S. lawmaker said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Some top recipients of U.S. bailout money owe the federal government more than $220 million in unpaid taxes, a U.S. lawmaker said on Thursday.&lt;/p&gt;

&lt;p&gt;Representative John Lewis, a Democrat from Georgia who heads the U.S. House of Representatives Ways and Means oversight subcommittee, said 13 bailed-out companies owe the federal government taxes. Two of them owe more than $100 million each.&lt;/p&gt;

&lt;p&gt;Lewis said the firms, which he did not name, signed statements at the time of receiving federal aid stating that they owed no federal taxes.&lt;/p&gt;

&lt;p&gt;&quot;It is a disgrace. The American people are fed up... and they're not going to take it anymore,&quot; Lewis told a hearing to examine the oversight of the Troubled Asset Relief Program, or TARP.&lt;/p&gt;

&lt;p&gt;Lewis said it raised further questions about the $700 billion program. &quot;Are they signing contracts knowing that they owe taxes by thinking they will not get caught?&quot; he asked.&lt;/p&gt;

&lt;p&gt;Lewis' subcommittee looked at the top 23 TARP recipients and found that more than half owe unpaid federal income taxes. One unidentified company owed $112.75 million in unpaid taxes from 2006 and 2005, according to the subcommittee's research. Another company that received government funds owed $101.8 million dating back to before 2004.&lt;/p&gt;

&lt;p&gt;The Government Accountability Office, the investigative arm of Congress, said the Internal Revenue Service had the enforcement tools needed to recoup unpaid taxes.&lt;/p&gt;

&lt;p&gt;&quot;The IRS has a range of responsibilities under the current law to be able to pursue and obtain collection of delinquent taxes,&quot; Gene Dodaro, the GAO's acting comptroller general, told reporters after the hearing.&lt;/p&gt;

&lt;p&gt;So far, more than $300 billion of TARP funds have been disbursed to financial services institutions including Citigroup, Bank of America and giant insurer American International Group.&lt;/p&gt;

&lt;p&gt;AIG BONUSES&lt;/p&gt;

&lt;p&gt;AIG is now being heavily criticized for accepting up to $180 billion in government funds and then handing out hefty bonuses.&lt;/p&gt;

&lt;p&gt;TARP watchdog, Neil Barofsky, told the congressional panel that he plans to launch an audit examining federal monitoring and enforcement of executive compensation restrictions imposed on companies that have received government help such as AIG.&lt;/p&gt;

&lt;p&gt;Barofsky, TARP's inspector general, said his office will be looking closely to ensure bonuses to AIG employees are consistent with AIG's legal or contractual obligations. &quot;If there are any inconsistencies, we will act aggressively to recover taxpayers' money,&quot; Barofsky told the panel.&lt;/p&gt;

&lt;p&gt;Barofsky said his office has already initiated two audits to bring more transparency to TARP. One audit is looking into the impact of lobbyists or other &quot;outside influences&quot; on the TARP application process and the second audit is looking at the process under which Bank of America received government help.&lt;/p&gt;

&lt;p&gt;The Treasury Department funneled $25 billion into Bank of America as part of the capital injections. The government has also allocated $20 billion to the bank as part of a package in which the government agreed to share in losses on $118 billion of assets.&lt;/p&gt;

&lt;p&gt;(Reporting by Rachelle Younglai and Donna Smith: Editing by Tim Dobbyn)&lt;/p&gt;</media:text>
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<title>Wal-Mart awards $2 billion to U.S. hourly employees</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I4PS20090319</link>
<pubDate>Thu, 19 Mar 2009 10:01:39 -0600</pubDate>
<description><![CDATA[CHICAGO (Reuters) - Wal-Mart Stores Inc is awarding approximately $2 billion to its U.S. hourly employees through financial incentives, including handing out $933.6 million in bonuses on Thursday, after the world's largest retailer gained market share amid a recession.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Nicole Maestri&lt;/p&gt;

&lt;p&gt;CHICAGO (Reuters) - Wal-Mart Stores Inc is awarding approximately $2 billion to its U.S. hourly employees through financial incentives, including handing out $933.6 million in bonuses on Thursday, after the world's largest retailer gained market share amid a recession.&lt;/p&gt;

&lt;p&gt;In a memo to Wal-Mart employees obtained by Reuters, Wal-Mart CEO Mike Duke said the retailer is awarding roughly $2 billion to U.S. hourly employees, which includes $933.6 million in bonuses, $788.8 million in profit sharing and 401(k) contributions, millions of dollars in merchandise discounts, and contributions to its employee stock purchase plan.&lt;/p&gt;

&lt;p&gt;&quot;While economic challenges forced others to step back, we moved forward,&quot; Duke stated in the memo.&lt;/p&gt;

&lt;p&gt;Duke said Wal-Mart now needs to &quot;accelerate and broaden all of our efforts.&quot;&lt;/p&gt;

&lt;p&gt;As consumers seek to stretch limited budgets, they are increasingly heading to Wal-Mart's U.S. stores for discounts on everything from food to televisions. Wal-Mart is also aggressively touting its low prices to attract shoppers, and the retailer said on Thursday that it is cutting prices on contact lenses and children's glasses.&lt;/p&gt;

&lt;p&gt;The efforts are helping Wal-Mart gain market share while other U.S. retailers see sales fall as shoppers avoid splurging on nice-to-have items, like sweaters or jewelry.&lt;/p&gt;

&lt;p&gt;For its fiscal year ending January 31, 2009, Wal-Mart's total sales rose 7.2 percent to $401.24 billion. Sales at its U.S. stores open at least a year, or same-store sales, rose 3.3 percent, excluding fuel, in its recently completed fiscal year, up from a 1.4 percent gain in the previous fiscal year.&lt;/p&gt;

&lt;p&gt;A year ago, Wal-Mart said it awarded almost $1.2 billion in financial incentives to its U.S. hourly employees, including more than $636.4 million in bonuses, which are based on store performance.&lt;/p&gt;

&lt;p&gt;Wal-Mart shares declined 0.7 percent to $50.07 around midday on the New York Stock Exchange.&lt;/p&gt;

&lt;p&gt;(Reporting by Nicole Maestri, editing by Matthew Lewis.)&lt;/p&gt;</media:text>
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<title>Fritzl gets life in prison for incest-rape, murder</title>
<link>http://www.reuters.com/article/topNews/idUSLJ34672220090319</link>
<pubDate>Thu, 19 Mar 2009 09:09:51 -0600</pubDate>
<description><![CDATA[ST POELTEN, Austria (Reuters) - Josef Fritzl was sentenced to life in a secure mental unit for locking up and raping his daughter in a cellar over 24 years, fathering seven children with her and causing the death of his own infant son.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Sylvia Westall&lt;/p&gt;

&lt;p&gt;ST POELTEN, Austria (Reuters) - Josef Fritzl was sentenced to life in a secure mental unit for locking up and raping his daughter in a cellar over 24 years, fathering seven children with her and causing the death of his own infant son.&lt;/p&gt;

&lt;p&gt;&quot;I accept the verdict,&quot; the 73-year-old Austrian told the court after Thursday's unanimous decision by the three-man, five-woman jury in a court west of Vienna. The prosecution also approved it, meaning the trial outcome cannot be appealed.&lt;/p&gt;

&lt;p&gt;Fritzl, who kept Elisabeth and three of their children in the cellar below his home, would stay in St Poelten jail pending transfer to a unit for mentally ill offenders within a prison where he will receive psychotherapy, court officials said.&lt;/p&gt;

&lt;p&gt;He had pleaded guilty in the four-day trial to incest, rape, enslavement, coercion and murder, by neglect, for confining his daughter, now 42, in a purpose-built, windowless cellar under his home for almost a quarter century.&lt;/p&gt;

&lt;p&gt;The lurid details of how Fritzl violated Elisabeth and kept her and several children in a domestic dungeon horrified people worldwide who followed the case that emerged when he took one of incarcerated children, gravely ill, to hospital last April.&lt;/p&gt;

&lt;p&gt;Fritzl will be closely monitored in case he tries to commit suicide, which the case's psychiatrist called a serious risk, court officials said.&lt;/p&gt;

&lt;p&gt;His condition will be re-evaluated in 15 years and, in theory, if he were deemed cured, he could be released, they said. But Fritzl and his lawyer have said they expected he would have to spend the rest of his life incarcerated.&lt;/p&gt;

&lt;p&gt;The prosecution in the case had asked for Fritzl to be confined indefinitely to a secure psychiatric institution.&lt;/p&gt;

&lt;p&gt;&quot;I cannot do anything more about (what happened) ... I regret this from the bottom of my heart,&quot; Fritzl said in his closing statement at his four-day trial.&lt;/p&gt;

&lt;p&gt;Fritzl looked straight ahead as the jury, who had deliberated for three hours, convicted him of every charge. Earlier in the trial he had used a blue file folder to hide his face from public view.&lt;/p&gt;

&lt;p&gt;PLEA REVERSAL&lt;/p&gt;

&lt;p&gt;He had initially denied the murder and slavery counts but reversed his plea after being shaken by 11 hours of videotaped testimony from daughter Elisabeth screened in court on Tuesday.&lt;/p&gt;

&lt;p&gt;The retired electrical engineer was convicted of murder, the most serious charge, because the jury found he did nothing over a three-day period to seek medical help despite knowing the boy was in danger of dying from breathing problems.&lt;/p&gt;

&lt;p&gt;Defense lawyer Rudolf Mayer confirmed reports Elisabeth had attended the trial on Tuesday and said Fritzl was &quot;devastated&quot; when he spotted her in the gallery as the video was screened.&lt;/p&gt;

&lt;p&gt;Mayer said he had nothing to do with the plea change.&lt;/p&gt;

&lt;p&gt;In her closing argument, chief prosecutor Christiane Burkheiser said Fritzl had degraded Elisabeth to &quot;a condition of total dependence and treated her like his property.&quot;&lt;/p&gt;

&lt;p&gt;She said Fritzl committed murder because he had 66 hours to seek medical care for the infant son, whose breathing problems were caused in part by his umbilical cord getting tangled around his neck, but did nothing and consciously let the boy die.&lt;/p&gt;

&lt;p&gt;&quot;He not only saw but listened to the death struggle of the infant -- for 66 hours,&quot; Burkheiser said.&lt;/p&gt;

&lt;p&gt;Mayer argued that Elisabeth did not describe the newborn's fight for life in the journal she kept in the cellar.&lt;/p&gt;

&lt;p&gt;Burkheiser also said Fritzl had demonstrated &quot;unbelievable manipulation skills,&quot; for example by luring his daughter into the cellar in 1984 by pretending he needed help carrying a door.&lt;/p&gt;

&lt;p&gt;&quot;Do not let yourselves be deceived as Elisabeth was 24 years ago,&quot; Burkheiser said, referring to Wednesday's confession.&lt;/p&gt;

&lt;p&gt;Eva Plaz, Elisabeth's lawyer, said Fritzl's guilty plea should not be taken as a sign of remorse.&lt;/p&gt;

&lt;p&gt;&quot;Nobody knows the accused as well as my client (Elisabeth). I can say what you heard yesterday was no confession. Why did he only yesterday change his mind?&quot; she said.&lt;/p&gt;

&lt;p&gt;His expression grim, Fritzl entered the final court session on Thursday ringed by a dozen policemen. He was wearing the same rumpled grey suit with a blue shirt and tie.&lt;/p&gt;

&lt;p&gt;&quot;He was under no illusions before the verdict,&quot; Mayer told reporters after the sentencing.&lt;/p&gt;

&lt;p&gt;Prosecutors said the children held captive had never seen daylight and had to watch Fritzl repeatedly rape their mother.&lt;/p&gt;

&lt;p&gt;&quot;The basic need was for power. It is about domination, about power, about control,&quot; psychiatrist Adelheid Kastner testified.&lt;/p&gt;

&lt;p&gt;Fritzl's abuses came to light last April when he took the eldest child to hospital after she became seriously ill.&lt;/p&gt;

&lt;p&gt;Elisabeth and her six children, aged 5 to 19 at their discovery, and three of whom were incarcerated from birth, are now living in an undisclosed location under new identities.&lt;/p&gt;

&lt;p&gt;Three of the children were raised above ground by Fritzl and his wife Rosemarie after he told people that Elisabeth had abandoned them and joined a sect.&lt;/p&gt;</media:text>
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<title>Web powerhouse Sun Micro poised at brink of IBM's maw</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I0GF20090319</link>
<pubDate>Thu, 19 Mar 2009 07:18:50 -0600</pubDate>
<description><![CDATA[SANTA CLARA, California (Reuters) - Its name was once synonymous with the Internet. It championed networking at a time most people thought e-mail was revolutionary. It used to be mentioned in the same breath as Microsoft and Intel.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Clare Baldwin&lt;/p&gt;

&lt;p&gt;SANTA CLARA, California (Reuters) - Its name was once synonymous with the Internet. It championed networking at a time most people thought e-mail was revolutionary. It used to be mentioned in the same breath as Microsoft and Intel.&lt;/p&gt;

&lt;p&gt;Now, Sun Microsystem's biggest coup may well be selling itself to one of the industry's oldest names at a sky-high premium, spelling perhaps the end of an era for a loss-making firm that shed virtually its entire stock value in under a decade.&lt;/p&gt;

&lt;p&gt;IBM is in talks to buy Sun to bolster its leading hold on the high-end computer market against rivals such as Hewlett-Packard, sources and analysts say. Big Blue is offering to pay over $6.5 billion or double Sun's Tuesday closing price of $4.97, The Wall Street Journal reported.&lt;/p&gt;

&lt;p&gt;Both companies declined to comment.&lt;/p&gt;

&lt;p&gt;That may not sit well with the troops at Sun, which -- despite its roller-coaster history -- still inspires fierce loyalty among its own ranks and customers.&lt;/p&gt;

&lt;p&gt;&quot;It's going to be difficult for us to be IBMers,&quot; a 50-year-old software program manager lamented as she crossed its sprawling Santa Clara campus. &quot;We still have a start-up mentality, somewhat laid-back... From my perspective, IBM is more blue suits and bureaucracy.&quot;&lt;/p&gt;

&lt;p&gt;&quot;We take names and we kick butt,&quot; the 20-year Sun veteran added as an afterthought.&lt;/p&gt;

&lt;p&gt;Few companies embody the rise and fall of dotcom as much as Sun, whose name stands for Stanford University Network and whose campus resembles that of the college, with a palmtree-lined drive leading up to a grassy courtyard and clocktower.&lt;/p&gt;

&lt;p&gt;During the heady days of 2000-2001, the company -- led by firebrand co-founder and Harvard-Stanford alumnus Scott McNealy -- took on Microsoft.&lt;/p&gt;

&lt;p&gt;McNealy -- who grew Sun from a Silicon Valley start-up to a globe-spanning firm with 38,000 employees -- took on Microsoft, calling his rival's proprietary Windows software &quot;a giant hairball&quot; and touting his own open-software philosophy.&lt;/p&gt;

&lt;p&gt;He lost. Windows went on to dominate the PC platform and Microsoft eclipsed the firm in both size and market share.&lt;/p&gt;

&lt;p&gt;The popular image of IBM as a mass of navy suits is in stark contrast to Sun, where the chief executive sports a ponytail. Analysts differ in their opinions as to whether that cultural difference goes deeper than looks.&lt;/p&gt;

&lt;p&gt;&quot;When I worked at IBM in the '90s, we used to take bets on how long a Sun executive would last when we hired them away: the average was nine months,&quot; said Rob Enderle, an analyst with the Enderle Group.&lt;/p&gt;

&lt;p&gt;An IBM human resources executive argued the company was both diverse and flexible.&lt;/p&gt;

&lt;p&gt;&quot;I'm wearing a yellow tie, green suit and loafers,&quot; he said.&lt;/p&gt;

&lt;p&gt;RUNNING THE GAMUT&lt;/p&gt;

&lt;p&gt;IBM was once known for its reluctance to fire people, experts say, and still remains less willing than, say, Sun, which in November said it would lay off up to 6,000 of its staff, or 15-18 percent of its workforce.&lt;/p&gt;

&lt;p&gt;Reactions at Sun's campus, an hour's drive from San Francisco, ranged from the fearful to the incredulous. Many were nervous about losing jobs at a time the United States is going through its worst economic contraction in over 20 years.&lt;/p&gt;

&lt;p&gt;&quot;The feeling is mixed, right? If we get bought, we lose a lot of people,&quot; said a 28 year-old chip designer who had worked for Sun over the past four years. &quot;If we don't get bought, we'll lose people.&quot;&lt;/p&gt;

&lt;p&gt;Others were skeptical, with management keeping mum so far.&lt;/p&gt;

&lt;p&gt;&quot;Fujitsu or Cisco maybe, but not IBM,&quot; said a 50-year-old engineer as he puffed away at a cigarette on the parking lot with three of his colleagues.&lt;/p&gt;

&lt;p&gt;&quot;There's so much overlap with IBM, I'm not sure why they would buy Sun. I'm sure there's something else.&quot;&lt;/p&gt;

&lt;p&gt;Investors too have questioned Sun's worth. The firm has seen its stock sink more than 70 percent in the past year alone. That downward spiral belied the firm's meteoric ascent of the past two decades.&lt;/p&gt;

&lt;p&gt;Sun began life in 1982. One year later, it signed a $40 million contract with manufacturers. By 1988, the company had $1 billion in revenue, and joined the ranks of Fortune 500 companies by the early 1990s.&lt;/p&gt;

&lt;p&gt;Java, a software platform that allows applications to run on any computer, was introduced in 1995.&lt;/p&gt;

&lt;p&gt;Sun shares peaked in 2000 at just under $260, but then had hemorrhaged more than 98 percent of their value before Wednesday's 80 percent surge.&lt;/p&gt;

&lt;p&gt;Sun's market capitalization was about $3.5 billion, a mere shadow of its former self, before talk of the negotiations became public.&lt;/p&gt;

&lt;p&gt;&quot;If the deal does happen, this is an admission that the company could not make it on its own,&quot; BMO Capital Markets' Keith Bachman wrote on Wednesday.&lt;/p&gt;

&lt;p&gt;(Writing by Edwin Chan; Editing by Phil Berlowitz)&lt;/p&gt;</media:text>
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<title>U.S. jobless rolls swell to record 5.47 million</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I3QC20090319</link>
<pubDate>Thu, 19 Mar 2009 07:17:46 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The number of U.S. workers drawing state unemployment benefits hit another record high early this month and factory activity in the Mid-Atlantic region shrank again as the economy battles a severe downturn.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Lucia Mutikani&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The number of U.S. workers drawing state unemployment benefits hit another record high early this month and factory activity in the Mid-Atlantic region shrank again as the economy battles a severe downturn.&lt;/p&gt;

&lt;p&gt;The Labor Department said on Thursday that 5.47 million people stayed on the benefit rolls in the week ended March 7, up from 5.29 million the previous week and the highest on record.&lt;/p&gt;

&lt;p&gt;Jobless rolls are swelling to record levels after Congress last year extended benefits beyond the regular 26 weeks.&lt;/p&gt;

&lt;p&gt;With the economy mired in recession since December 2007, the nation's unemployment rate has skyrocketed and the claims figures underscore the difficulty of finding a new job.&lt;/p&gt;

&lt;p&gt;The insured unemployment rate, the percentage of insured workers receiving jobless benefits, jumped to 4.1 percent in the March 7 week, the highest since June 1983, from 3.9 percent the week before.&lt;/p&gt;

&lt;p&gt;&quot;There is no sign of even a temporary easing in the downward pressure on employment,&quot; said Ian Shepherdson, chief U.S. economist at HFE in Valhalla, New York, who said the economy would likely lose more than 700,000 jobs this month.&lt;/p&gt;

&lt;p&gt;The data had little impact on financial markets, which were still focusing on the Federal Reserve's decision on Wednesday to buy up to $300 billion of longer-dated government debt.&lt;/p&gt;

&lt;p&gt;The U.S. dollar plunged for a second straight session, while U.S. stocks fell on worries that the Fed's efforts to help the economy were too costly and untested. The Dow Jones industrial average fell 85.78 points, or 1.15 percent, to 7,400.80. The S&amp;amp;P 500 fell 1.3 percent. The Nasdaq lost 0.5 percent.&lt;/p&gt;

&lt;p&gt;Government bond prices dropped as investors booked profits after Wednesday's massive rally in the wake of the Fed's announcement.&lt;/p&gt;

&lt;p&gt;The Fed's latest steps are intended to lower interest rates to encourage lending and stimulate spending in a bid to break the nation's deep recession, which is now in its 15th month.&lt;/p&gt;

&lt;p&gt;The severe downturn is squeezing companies' profit margins, forcing them to cut jobs, exacerbating the burden of households already staggering from a rapid decline in wealth.&lt;/p&gt;

&lt;p&gt;Over 4 million jobs have been lost since the recession began and the jobless rate has already hit a 25-year high of 8.1 percent.&lt;/p&gt;

&lt;p&gt;NEW JOBLESS CLAIMS EBB&lt;/p&gt;

&lt;p&gt;The number of people filing new claims for jobless benefits ebbed to 646,000 last week from 658,000 the previous week.&lt;/p&gt;

&lt;p&gt;However, the four-week moving average for new claims, considered to be a better gauge of underlying trends, rose to 654,750 last week, the highest since October 1982.&lt;/p&gt;

&lt;p&gt;&quot;Clearly the trend is still up and the very high level of claimants around 650,000 is a pretty good sign that we are going to have another huge loss in March payrolls and the market is still extremely weak,&quot; said Stuart Hoffman, chief economist at PNC Financial Services Group in Pittsburgh.&lt;/p&gt;

&lt;p&gt;The Philadelphia Federal Reserve Bank said its business activity index suggested manufacturing activity in the Mid-Atlantic region was declining at a slower pace this month than in February.&lt;/p&gt;

&lt;p&gt;The Philly Fed's index came in at minus 35.0 for March from minus 41.3 a month earlier, but an employment gauge slumped to its lowest since the survey's launch in 1968, and new orders dropped to their lowest level in almost 29 years.&lt;/p&gt;

&lt;p&gt;&quot;I cannot draw comfort from that (headline figure). A lot of components underneath were weaker. Even if it's in the 30 rather than in the 40s, that kind of a negative sign is still a very weak sign for manufacturing activity,&quot; said Hoffman.&lt;/p&gt;

&lt;p&gt;In another report indicating that the economic downturn has yet to find a bottom, the Conference Board's Index of Leading Economic Indicators fell 0.4 percent in February after gaining 0.1 percent in January.&lt;/p&gt;

&lt;p&gt;&quot;The credit market freeze is relenting very slowly. The LEI suggests the recession will continue in the near term,&quot; said Ken Goldstein, an economist for the Conference Board, a private research group based in New York. &quot;A return to strong growth will not likely occur until 2010.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by Burton Frierson and Steven C. Johnson; Editing by Neil Stempleman and Jan Paschal)&lt;/p&gt;</media:text>
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<title>FedEx profit tumbles on global slump</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I3C820090319</link>
<pubDate>Thu, 19 Mar 2009 06:13:30 -0600</pubDate>
<description><![CDATA[DETROIT (Reuters) - Package delivery giant and economic bellwether FedEx Corp reported a 75 percent drop in profit due to the global recession, gave a low quarterly outlook and said it was taking fresh actions to cut costs.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Nick Carey&lt;/p&gt;

&lt;p&gt;DETROIT (Reuters) - Package delivery giant and economic bellwether FedEx Corp reported a 75 percent drop in profit due to the global recession, gave a low quarterly outlook and said it was taking fresh actions to cut costs.&lt;/p&gt;

&lt;p&gt;&quot;Our financial performance was sharply lower during the quarter due to the global recession,&quot; Chief Executive Fred Smith said in a statement on Thursday. &quot;While we are gaining market share in all of our transportation segments, the downturn in our industry and the severity and expected duration of the recession require that we take additional actions.&quot;&lt;/p&gt;

&lt;p&gt;The Memphis-based company reported net income for its fiscal third quarter, ended February 28, of $97 million, or 31 cents a share, down from $393 million, or $1.26 a share, a year earlier.&lt;/p&gt;

&lt;p&gt;Analysts had expected 46 cents a share, according to Reuters Estimates.&lt;/p&gt;

&lt;p&gt;&quot;FedEx's results are not much of a surprise given the current environment,&quot; said Dan Ortwerth, a research analyst at Edward Jones. &quot;But this is a wake-up call for us that things are not going to get better any time soon.&quot;&lt;/p&gt;

&lt;p&gt;&quot;It's a fairly clear indication that the recent stock market rally better have a strong foundation than merely a positive near-term outlook,&quot; he added.&lt;/p&gt;

&lt;p&gt;Like its main rival, Atlanta-based United Parcel Service Inc, FedEx is considered a bellwether of U.S. economic activity. When the economy does well, companies and consumers ship more goods; in a recession, package volumes drop.&lt;/p&gt;

&lt;p&gt;FedEx said third-quarter revenue fell 14 percent to $8.14 billion.&lt;/p&gt;

&lt;p&gt;For the current quarter FedEx said it expects to earn between 45 cents to 70 cents a share, below the average of 72 cents expected by analysts.&lt;/p&gt;

&lt;p&gt;The company said it was cutting capacity at its FedEx Express and FedEx Freight units, and reducing personnel and work hours.&lt;/p&gt;

&lt;p&gt;FedEx said the measures would result in fourth-quarter charges of roughly $100 million and lead to a reduction in expenses of about $1 billion in its 2010 fiscal year.&lt;/p&gt;

&lt;p&gt;In December, the company said it had suspended paying matching contributions to its 401 (k) retirement plan for a minimum of one year starting February 1 and would implement pay cuts for all salaried personnel. Smith took a 20 percent pay cut.&lt;/p&gt;

&lt;p&gt;&quot;Our goal when we implemented compensation reductions in January for U.S. salaried personnel was to both protect our business and minimize the loss of jobs,&quot; the CEO said. &quot;With industrial production and global trade trends worsening since last quarter, we are applying these additional measures to continue to secure as many of our jobs as possible during this downturn.&quot;&lt;/p&gt;

&lt;p&gt;Both FedEx and UPS have seen package volumes hit by the downturn. Deutsche Post unit DHL shut down its U.S. domestic service in January with the loss of 9,500 jobs, citing the economic slump and its inability to take market share in a market dominated by FedEx and UPS.&lt;/p&gt;

&lt;p&gt;Edward Jones analyst Ortwerth said while FedEx's results reflected the recession, one positive sign was that the company is still taking market share.&lt;/p&gt;

&lt;p&gt;&quot;In a sense these are good times for FedEx,&quot; he said. &quot;I'm not worried about them because they work well in downturns.&quot;&lt;/p&gt;

&lt;p&gt;In premarket trade FedEx shares were down more than 4 percent at $41.30. UPS shares were down more than 3 percent at $45.10.&lt;/p&gt;

&lt;p&gt;(Reporting by Nick Carey, editing by John Wallace, Dave Zimmerman)&lt;/p&gt;</media:text>
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<title>Microsoft releases Internet Explorer 8</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I0JX20090319</link>
<pubDate>Thu, 19 Mar 2009 06:12:12 -0600</pubDate>
<description><![CDATA[SEATTLE (Reuters) - Microsoft Corp is set to publicly launch Internet Explorer 8 early on Thursday, the latest version of its market-dominating Web browser.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;SEATTLE (Reuters) - Microsoft Corp is set to publicly launch Internet Explorer 8 early on Thursday, the latest version of its market-dominating Web browser.&lt;/p&gt;

&lt;p&gt;The application, an integral part of Microsoft's eagerly awaited Windows 7 operating system, can be downloaded from Microsoft's website from 9 a.m. Pacific time, free for people using licensed Microsoft operating systems.&lt;/p&gt;

&lt;p&gt;IE8, as it is commonly referred to, has been in public beta testing for about a year, but Thursday's launch marks its full public rollout.&lt;/p&gt;

&lt;p&gt;Microsoft, the world's largest software company, said IE8 will run with Windows Vista, its latest operating system, and also Windows XP, the previous version which some users still prefer over Vista.&lt;/p&gt;

&lt;p&gt;The application replaces IE7, which has a lock on the browser market. According to a recent survey by IT consultants Janco Associates Inc, Internet explorer has a 72.2 percent market share, ahead of the Mozilla Foundation's Firefox browser with 17.2 percent. Google Inc's new Chrome browser has only 2.8 percent of the market, while Apple Inc's Safari has less than 1 percent.&lt;/p&gt;

&lt;p&gt;Microsoft has run afoul of U.S. and European antitrust regulators for bundling its browser with its operating system, which competitors say is an attempt to drive them out of the market.&lt;/p&gt;

&lt;p&gt;Last month, Google joined Mozilla and Norway's Opera in protesting Microsoft's dominance in the browser market. In January, European regulators brought formal charges against Microsoft for abusing its dominant market position by bundling its Internet Explorer Web browser with its Windows operating system, which is used in 95 percent of the world's personal computers.&lt;/p&gt;

&lt;p&gt;Microsoft has already announced that users of Windows 7 -- expected later this year or early next year -- will be able to turn key programs like Internet Explorer off, making it easier to use other browsers.&lt;/p&gt;

&lt;p&gt;New features in IE8 include right-clicking on addresses or other Web features to go straight to a map or put into a blog or other website, which Microsoft calls an &quot;accelerator&quot;. Users will also be able to put in keywords in the address bar to recall sites visited related to that word.&lt;/p&gt;

&lt;p&gt;The new browser also has enhanced security protection, for example warning users if they are about to download something from a site known to be a source of malicious software, or &quot;malware&quot;.&lt;/p&gt;</media:text>
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<title>Austria's Fritzl says &quot;sorry&quot; for incest and murder</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1O220090319</link>
<pubDate>Thu, 19 Mar 2009 03:52:53 -0600</pubDate>
<description><![CDATA[ST POELTEN, Austria (Reuters) - Josef Fritzl said on Thursday he was sorry from the "bottom of my heart" for locking up and raping his daughter in a cellar for 24 years as prosecutors demanded he be jailed for life.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Sylvia Westall&lt;/p&gt;

&lt;p&gt;ST POELTEN, Austria (Reuters) - Josef Fritzl said on Thursday he was sorry from the &quot;bottom of my heart&quot; for locking up and raping his daughter in a cellar for 24 years as prosecutors demanded he be jailed for life.&lt;/p&gt;

&lt;p&gt;The 73-year-old Austrian, who fathered seven children with daughter Elisabeth, has pleaded guilty to incest, rape, enslavement and murder, by neglect, in the death of an infant son born underground in 1996.&lt;/p&gt;

&lt;p&gt;&quot;I cannot do anything more about (what happened) ... I regret this from the bottom of my heart,&quot; Fritzl said in his closing statement at his trial.&lt;/p&gt;

&lt;p&gt;Elisabeth's lawyer said Fritzl's remarks did not seem serious, suggesting he was only seeking a milder sentence.&lt;/p&gt;

&lt;p&gt;The judge and jury retired to deliberate the verdict and sentence, both expected on Thursday afternoon. Under Austrian law, a guilty plea is not sufficient to convict someone.&lt;/p&gt;

&lt;p&gt;Fritzl reversed his plea and admitted guilt on all charges on Wednesday after being overcome watching daughter Elisabeth, now 42, describe her ordeal in 11 hours of video testimony.&lt;/p&gt;

&lt;p&gt;Defense lawyer Rudolf Mayer confirmed reports Elisabeth had attended the trial on Tuesday and said Fritzl was &quot;devastated&quot; when he spotted her in the gallery as the video was being screened.&lt;/p&gt;

&lt;p&gt;Fritzl admitted enslaving Elisabeth in a purpose-built cellar under his house, and murder for the death of one of their babies by failing to seek help for his breathing problems.&lt;/p&gt;

&lt;p&gt;If found guilty of murder by the eight-person jury, the maximum sentence is life imprisonment, the minimum is 10 years.&lt;/p&gt;

&lt;p&gt;Under Austrian law, a confession can lead to a reduced sentence. The prosecution earlier asked that he be sent to a secure psychiatric hospital and the court could rule that he has to stay there indefinitely, regardless of his sentence.&lt;/p&gt;

&lt;p&gt;Mayer, who said he had nothing to do with the plea change, said Fritzl expected to spend the rest of his life incarcerated.&lt;/p&gt;

&lt;p&gt;In her closing argument, chief prosecutor Christiane Burkheiser said Fritzl had degraded Elisabeth to &quot;a condition of total dependence and treated her like his property.&quot;&lt;/p&gt;

&lt;p&gt;&quot;DEATH STRUGGLE&quot;&lt;/p&gt;

&lt;p&gt;She said Fritzl committed murder because he had 66 hours to seek medical care for the infant son, whose breathing problems were caused in part by his umbilical cord getting tangled around his neck, but did nothing and consciously let the boy die.&lt;/p&gt;

&lt;p&gt;&quot;He not only saw but listened to the death struggle of the infant -- for 66 hours,&quot; Burkheiser said.&lt;/p&gt;

&lt;p&gt;Mayer argued that Elisabeth did not describe the newborn's fight for life in the journal she kept in the cellar.&lt;/p&gt;

&lt;p&gt;Burkheiser also said Fritzl had demonstrated &quot;unbelievable manipulation skills,&quot; for example by luring his daughter into the cellar by pretending he needed help carrying a door.&lt;/p&gt;

&lt;p&gt;&quot;Do not let yourselves be deceived as Elisabeth was 24 years ago,&quot; Burkheiser said, referring to Wednesday's confession.&lt;/p&gt;

&lt;p&gt;Eva Plaz, Elisabeth's lawyer, said Fritzl's guilty plea should not be taken as a sign of remorse.&lt;/p&gt;

&lt;p&gt;&quot;Nobody knows the accused as well as my client (Elisabeth). I can say what you heard yesterday was no confession. Why did he only yesterday change his mind?&quot; she said.&lt;/p&gt;

&lt;p&gt;His expression grim, Fritzl entered court on Thursday ringed by a dozen policemen. He was wearing the same rumpled grey suit with a blue shirt and tie.&lt;/p&gt;

&lt;p&gt;Prosecutors said the children held captive had never seen daylight and had to watch Fritzl repeatedly rape their mother.&lt;/p&gt;

&lt;p&gt;&quot;The basic need was for power. It is about domination, about power, about control,&quot; psychiatrist Adelheid Kastner testified.&lt;/p&gt;

&lt;p&gt;Fritzl's abuses came to light last April when he took the eldest child to hospital after she became seriously ill.&lt;/p&gt;

&lt;p&gt;Elisabeth and her six children, aged 5 to 19 at their discovery, and three of whom were incarcerated from birth, are now living in an undisclosed location under new identities.&lt;/p&gt;

&lt;p&gt;Three of the children were raised above ground by Fritzl and his wife Rosemarie after he told people that Elisabeth had abandoned them and joined a sect.&lt;/p&gt;</media:text>
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<title>Bin Laden urges Somalis to topple new president</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I2GU20090319</link>
<pubDate>Thu, 19 Mar 2009 03:51:31 -0600</pubDate>
<description><![CDATA[DUBAI (Reuters) - Al Qaeda leader Osama bin Laden urged Somalis in a new audio tape on Thursday to topple the new President, Sheikh Sharif Ahmed.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;DUBAI (Reuters) - Al Qaeda leader Osama bin Laden urged Somalis in a new audio tape on Thursday to topple the new President, Sheikh Sharif Ahmed.&lt;/p&gt;

&lt;p&gt;&quot;The war which has been taking place on your soil these past years is a war between Islam and the international crusade,&quot; bin Laden said, according to the group's own English translation of the tape.&lt;/p&gt;

&lt;p&gt;&quot;These sorts of presidents are the surrogates of our enemies and their authority is null and void in the first place, and as Sheikh Sharif is one of them, he must be dethroned and fought,&quot;&lt;/p&gt;

&lt;p&gt;Reuters was not immediately able to verify the authenticity of the tape, titled &quot;Fight on, champions of Somalia&quot; but the voice sounded like that of bin Laden&lt;/p&gt;

&lt;p&gt;(Reporting by Firouz Sedarat, Editing by Lin Noueihed)&lt;/p&gt;</media:text>
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<title>Israeli missile kills 2 Gaza militants: Palestinians</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I29M20090319</link>
<pubDate>Thu, 19 Mar 2009 03:24:01 -0600</pubDate>
<description><![CDATA[GAZA (Reuters) - An Israeli air strike killed two Palestinian militants in the Gaza Strip on Thursday, their faction said, but Israel denied involvement.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;GAZA (Reuters) - An Israeli air strike killed two Palestinian militants in the Gaza Strip on Thursday, their faction said, but Israel denied involvement.&lt;/p&gt;

&lt;p&gt;Al-Aqsa Martyrs Brigades, an armed wing of Palestinian President Mahmoud Abbas's Fatah movement, said two of its men died in a missile strike in central Gaza, close to the border fence with Israel.&lt;/p&gt;

&lt;p&gt;But an Israeli military spokeswoman said: &quot;There was no attack of any kind from our side.&quot;&lt;/p&gt;

&lt;p&gt;Israel waged a three-week offensive in the Hamas-ruled territory in January, and sporadic cross-border violence has persisted since.&lt;/p&gt;

&lt;p&gt;(Reporting by Nidal al-Mughrabi, Writing by Ori Lewis)&lt;/p&gt;</media:text>
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<title>China says rejection of Coke-Huiyuan deal no blow to open trade</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I27120090319</link>
<pubDate>Thu, 19 Mar 2009 03:04:22 -0600</pubDate>
<description><![CDATA[BEIJING (Reuters) - China's rejection of Coca-Cola's bid to buy the country's top juice maker, Huiyuan, marked no retreat from government policies welcoming foreign investment, the government said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;BEIJING (Reuters) - China's rejection of Coca-Cola's bid to buy the country's top juice maker, Huiyuan, marked no retreat from government policies welcoming foreign investment, the government said on Thursday.&lt;/p&gt;

&lt;p&gt;Qin Gang, a spokesman for the Chinese Foreign Ministry, also told a regular news conference that Beijing rejected assertions that the quashing of the $2.4 billion bid for China Huiyuan Juice Group, announced on Wednesday, weakened the government's credibility as an avowed opponent of trade protectionism.&lt;/p&gt;

&lt;p&gt;&quot;This has nothing to do with trade protectionism....This decision was made for the sake of market competition,&quot; Qin said of the Ministry of Commerce's decision to block the purchase on the grounds that it would be damaging to consumers' interests and open competition.&lt;/p&gt;

&lt;p&gt;Qin's comments suggested that as Beijing prepares to join the G20 summit of rich and developing major economies in London next month, it will reject claims that the decision shows it is no adherent of open markets.&lt;/p&gt;

&lt;p&gt;A statement by the Ministry of Commerce also sought to deflect accusations of protectionism.&lt;/p&gt;

&lt;p&gt;&quot;The Ministry of Commerce's decision to block the acquisition was neither affected by disturbing external factors and nor was it protectionism,&quot; the ministry's spokesman, Yao Jian, was quoted by Xinhua as saying. &quot;The decision in the case has nothing to do with China's policies about foreign capital.&quot;&lt;/p&gt;

&lt;p&gt;Huiyuan controls more than a tenth of a Chinese fruit and vegetable juice market, which grew 15 percent last year to $2 billion. Coca-Cola has a 9.7 percent market share.&lt;/p&gt;

&lt;p&gt;The ruling has fanned comment among some industry analysts and trade lawyers that China will use its anti-monopoly law to fend off foreign attempts to buy promising domestic firms, even when the resulting market concentration would not be excessive.&lt;/p&gt;

&lt;p&gt;But Qin brandished bottled water on his podium from what he said was a Swiss-based company to argue that his country remains fully open to foreign brands and investors.&lt;/p&gt;

&lt;p&gt;&quot;We will continue a policy of opening up and welcoming foreign capital,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;Especially in the current financial crisis, China's leaders have said many times that all countries should oppose trade and investment protectionism and this stance has not changed.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Chris Buckley; editing by Ken Wills)&lt;/p&gt;</media:text>
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<title>Chinese city probes J&amp;J baby bath products</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I0TE20090319</link>
<pubDate>Thu, 19 Mar 2009 03:03:17 -0600</pubDate>
<description><![CDATA[BEIJING/NEW YORK (Reuters) - Chinese health authorities are investigating baby bath products made by Johnson &amp; Johnson in response to a U.S. consumer group's charges that some of the products' chemicals could cause cancer, the U.S. company said on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;BEIJING/NEW YORK (Reuters) - Chinese health authorities are investigating baby bath products made by Johnson &amp;amp; Johnson in response to a U.S. consumer group's charges that some of the products' chemicals could cause cancer, the U.S. company said on Thursday.&lt;/p&gt;

&lt;p&gt;Joannan Lu, the Johnson &amp;amp; Johnson spokeswoman in China, confirmed the company had handed in products to the Shanghai quality watchdogs for checks, but added it has no plan to pull its products from the Chinese market.&lt;/p&gt;

&lt;p&gt;The company has no information about when the results would be available from the quality checks by the Shanghai Municipal Bureau of Quality and Technical Supervision and the Shanghai Food and Drug Administration, Lu told Reuters in a telephone interview.&lt;/p&gt;

&lt;p&gt;Officials at both Shanghai agencies were not available for comment.&lt;/p&gt;

&lt;p&gt;Johnson &amp;amp; Johnson disputes the consumer group's charges, saying in a statement that the trace levels of the compounds in question result from processes that make the products gentle for babies and safe from bacteria growth.&lt;/p&gt;

&lt;p&gt;The U.S. Food and Drug Administration and other government agencies consider these trace levels safe, the company said in a statement.&lt;/p&gt;

&lt;p&gt;According to local media reports, a Shanghai-based regional supermarket chain, Nonggongshang Supermarket Group, has ordered its 3,500 chain outlets to remove baby bath products made by Johnson &amp;amp; Johnson from their shelves.&lt;/p&gt;

&lt;p&gt;&quot;It is an individual action of the company. We express our understanding,&quot; Lu said.&lt;/p&gt;

&lt;p&gt;Other major outlets in China, including the U.S. supermarket Wal-Mart Stores and its French rival Carrefour, still carry the products.&lt;/p&gt;

&lt;p&gt;(Reporting by Michael Wei in Beijing and Helen Chernikoff in New York; Editing by Ken Wills and Muralikumar Anantharaman)&lt;/p&gt;</media:text>
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<title>U.S. systemic risk watchdog not panacea: regulators</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I1B220090319</link>
<pubDate>Thu, 19 Mar 2009 00:04:16 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Two top U.S. bank regulators offered competing views on the value of creating a so-called systemic risk regulator to oversee broad threats to the financial system, with one saying the move would be only of "incremental benefit."]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By John Poirier&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - Two top U.S. bank regulators offered competing views on the value of creating a so-called systemic risk regulator to oversee broad threats to the financial system, with one saying the move would be only of &quot;incremental benefit.&quot;&lt;/p&gt;

&lt;p&gt;Federal Reserve Governor Daniel Tarullo said a systemic risk regulator should help cut the risk of big financial shocks, but Federal Deposit Insurance Corp Chairman Sheila Bair said regulators already had ample powers that they should employ more aggressively.&lt;/p&gt;

&lt;p&gt;In congressional testimony obtained by Reuters on Thursday, Bair urged U.S. lawmakers to move with caution in crafting new rules to regulate banks, insurance firms, broker-dealers and other financial firms.&lt;/p&gt;

&lt;p&gt;&quot;We need to recognize that simply creating a new systemic risk regulator is a not a panacea,&quot; Bair said in testimony prepared for delivery to the Senate Banking Committee. &quot;The most important challenge is to find ways to impose greater market discipline on systemically important institutions.&quot;&lt;/p&gt;

&lt;p&gt;Tarullo, in testimony prepared for the same panel, agreed such a regulatory approach would not prove a cure-all, but he said the United States needed a &quot;comprehensive strategy for containing systemic risk.&quot;&lt;/p&gt;

&lt;p&gt;And he said the Fed needed to play a role, even if it was not taking the lead.&lt;/p&gt;

&lt;p&gt;&quot;As the central bank of the United States, the Federal Reserve has a critical part to play in the government's responses to financial crises.&quot;&lt;/p&gt;

&lt;p&gt;U.S. lawmakers are crafting rules to overhaul financial regulation and many want to empower a regulatory agency to look across a broad variety of institutions to identify potential risks to the entire financial system.&lt;/p&gt;

&lt;p&gt;The Fed is widely seen as the leading candidate to be handed that power, but Senate Banking Committee Chairman Christopher Dodd has said the central bank might have too much on its plate and might possibly need to shed other responsibilities, such as consumer protection authority.&lt;/p&gt;

&lt;p&gt;Bair said regulators, who already have many broad powers that were not used effectively, will try to do a better job. She said giving rule-making authority to all banking regulatory agencies also would help protect consumers from engaging in financial products that could be unfair and deceptive.&lt;/p&gt;

&lt;p&gt;Tarullo said U.S. regulators need improved tools to allow for the orderly resolution of systemically important non-bank financial firms that fail and say the Federal Deposit Insurance Corp model is a good place to start.&lt;/p&gt;

&lt;p&gt;&quot;Any new resolution regime would need to be carefully crafted,&quot; Tarullo said.&lt;/p&gt;

&lt;p&gt;At the hearing the heads of the U.S. Office of the Comptroller of the Currency, which regulates some of the largest U.S. banks, and the Office of Thrift Supervision also are expected to testify.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Tim Ahmann; Editing by Jan Dahinten)&lt;/p&gt;</media:text>
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<title>Some AIG executives agree to return bonuses: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I18I20090319</link>
<pubDate>Wed, 18 Mar 2009 23:34:32 -0600</pubDate>
<description><![CDATA[(Reuters) - Some top employees of American International Group Inc's Financial Products group have agreed to return retention bonuses after mounting public outrage over the $165 million payout, the Wall Street Journal said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Some top employees of American International Group Inc's Financial Products group have agreed to return retention bonuses after mounting public outrage over the $165 million payout, the Wall Street Journal said.&lt;/p&gt;

&lt;p&gt;Among them was Douglas Poling, who received the richest payment of more than $6.4 million, the paper said, citing a person familiar with the matter.&lt;/p&gt;

&lt;p&gt;Poling is an executive vice-president with responsibility for energy and infrastructure investments, the paper said. Poling is one of the roughly 418 current and former employees from AIG's financial-products unit who received bonus payments, it said.&lt;/p&gt;

&lt;p&gt;AIG could not be immediately reached for comment by Reuters.&lt;/p&gt;

&lt;p&gt;AIG Chief Executive Edward Liddy said on Wednesday that he had asked employees receiving more than $100,000 in bonuses to repay at least half.&lt;/p&gt;

&lt;p&gt;(Reporting by Ajay Kamalakaran in Bangalore, editing by Muralikumar Anantharaman)&lt;/p&gt;</media:text>
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<title>Some AIG employees will pay back bonuses: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I1AR20090319</link>
<pubDate>Wed, 18 Mar 2009 23:34:28 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Some employees at American International Group Inc's Financial Products group will return their retention bonuses amid outrage over the $165 million in payouts to a unit that hobbled the insurer, the Wall Street Journal reported on Thursday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Some employees at American International Group Inc's Financial Products group will return their retention bonuses amid outrage over the $165 million in payouts to a unit that hobbled the insurer, the Wall Street Journal reported on Thursday.&lt;/p&gt;

&lt;p&gt;AIG has drawn intense fire from the public, politicians and President Barack Obama for accepting up to $180 billion in government aid and then handing out fat bonuses.&lt;/p&gt;

&lt;p&gt;In congressional testimony on Wednesday, AIG chairman Edward Liddy said he had asked employees receiving more than $100,000 in bonuses to repay at least half. He also said some employees had already given back their entire bonuses. Some had taken payouts and left the company, he said without providing details.&lt;/p&gt;

&lt;p&gt;One of the people who agreed to return his bonus was Douglas Poling, who received the largest payment of more than $6.4 million, the Journal said, quoting a person familiar with the matter. Poling, 48, is an executive vice president responsible for energy and infrastructure investments, the Journal reported on its website. When contacted by the paper, Poling declined comment.&lt;/p&gt;

&lt;p&gt;Poling and about 400 other current and former employees from AIG's financial products unit received bonus payments, according to the paper.&lt;/p&gt;

&lt;p&gt;AIG told the Journal that James Haas, 47, and Jon Liebergall, 43, the co-heads of North American marketing for AIG's financial products unit, would also return their bonuses.&lt;/p&gt;

&lt;p&gt;In a statement, AIG said they are both &quot;willing to do what Mr. Liddy has determined is appropriate.&quot;&lt;/p&gt;</media:text>
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<title>U.S. mulls counter-insurgency push in Afghanistan</title>
<link>http://www.reuters.com/article/topNews/idUSN1839090020090319</link>
<pubDate>Wed, 18 Mar 2009 21:34:23 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. President Barack Obama's aides are weighing a range of options to shift policy in Afghanistan, including a full-scale counter-insurgency push to protect civilians nationwide, officials said on Wednesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Arshad Mohammed&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - U.S. President Barack Obama's aides are weighing a range of options to shift policy in Afghanistan, including a full-scale counter-insurgency push to protect civilians nationwide, officials said on Wednesday.&lt;/p&gt;

&lt;p&gt;Among the ideas are scaling back the U.S. mission to focus on counterterrorism and the training of Afghan forces; making a focused counter-insurgency push in the violent south and east; and pursuing a wider campaign to protect civilians across the country, said a U.S. official who asked not to be named.&lt;/p&gt;

&lt;p&gt;Hundreds of civilian officials from across the U.S. government would be deployed to Afghanistan as part of the new strategy in a sort of &quot;civilian surge,&quot; said another official, including veteran U.S. diplomat Peter Galbraith, who would be a deputy to the top U.N. official on the ground.&lt;/p&gt;

&lt;p&gt;The officials requested anonymity because they were not authorized to discuss a White House review of policy toward Afghanistan expected to be released in the next week or so.&lt;/p&gt;

&lt;p&gt;One option under consideration is a vast expansion of Afghanistan's security force to help stabilize the country, The New York Times reported on Wednesday.&lt;/p&gt;

&lt;p&gt;A plan awaiting final approval by the president would set a goal of about 400,000 troops and national police officers, more than twice the forces' current size, the newspaper said, adding the cost projections of the program range from $10 billion to $20 billion over the next six or seven years. White House, Pentagon and State Department officials declined comment on the report.&lt;/p&gt;

&lt;p&gt;One official said each option would require different levels of U.S. troops, suggesting they presented a sort of sliding scale with the most resources needed for a national program of population security and counter-insurgency.&lt;/p&gt;

&lt;p&gt;Such an effort would be costly at a time when the U.S. government is already borrowing heavily to try to contain the global financial crisis and revive world growth.&lt;/p&gt;

&lt;p&gt;While declining to discuss the policy review in detail, U.S. Defense Secretary Robert Gates said he was reluctant to get drawn into an open-ended commitment in Afghanistan.&lt;/p&gt;

&lt;p&gt;&quot;I've been very concerned about an open-ended commitment of increasing numbers of troops for a variety of reasons, including the size of our footprint in Afghanistan and my worry that the Afghans come to see us as not their partners and allies, but as part of their problem,&quot; he told reporters.&lt;/p&gt;

&lt;p&gt;More than seven years after U.S.-led troops toppled the Taliban for harboring al Qaeda leaders behind the September 11 attacks, U.S. officials admit the United States and its allies are not winning the war in Afghanistan.&lt;/p&gt;

&lt;p&gt;The country has seen a steady increase in violence as well as in deaths among Afghan civilians and U.S. troops.&lt;/p&gt;

&lt;p&gt;U.S. MISSILE STRIKES IN BALUCHISTAN?&lt;/p&gt;

&lt;p&gt;Some of the options under discussion were first described by The New York Times, which reported some U.S. officials were advocating the use of missile strikes inside Pakistan beyond tribal areas to the province of Baluchistan.&lt;/p&gt;

&lt;p&gt;The province borders southern Afghanistan, where some of the heaviest fighting has taken place, and is believed to be a safe haven for members of the Taliban leadership ousted from Afghanistan in 2001.&lt;/p&gt;

&lt;p&gt;The White House has declined comment on the Afghan policy review or on possible wider missile strikes inside Pakistan.&lt;/p&gt;

&lt;p&gt;One U.S. official played down the idea, saying it was not being &quot;put forward seriously&quot; and it did not make sense to use the same tactics in Baluchistan as in the tribal areas, where the Pakistani government has limited presence and influence.&lt;/p&gt;

&lt;p&gt;&quot;You can't use the same tactics in a settled, populous area ... where the government has a great deal of penetration and control as you would in a sparsely populated area where the government has limited presence,&quot; this official said.&lt;/p&gt;

&lt;p&gt;While declining to discuss specifics, Gates said dealing with the Taliban in Baluchistan was &quot;principally a problem and a challenge for the Pakistanis to take on.&quot;&lt;/p&gt;

&lt;p&gt;CIVILIAN SURGE&lt;/p&gt;

&lt;p&gt;Officials said a regional approach -- code for trying to find a way to shut down Taliban safe havens in Pakistan -- was part of each option in the policy review, which is expected to be presented before Obama and Secretary of State Hillary Clinton fly to Europe at the end of the month.&lt;/p&gt;

&lt;p&gt;Other threads that run through them all are building up Afghan military and civilian capabilities and finding the resources to support whatever strategy is adopted.&lt;/p&gt;

&lt;p&gt;Officials said two other elements under discussion were making a significant &quot;civilian surge&quot; of U.S. experts to address Afghanistan's development needs as well as a strategic communications campaign to try to persuade the U.S., Afghan, Pakistani and European publics to support the war effort.&lt;/p&gt;

&lt;p&gt;The Washington Post, which first reported the plan to send more U.S. civilians to Afghanistan, said U.S. diplomat Francis Ricciardone would serve at the U.S. Embassy in Kabul with the rare title of &quot;deputy ambassador&quot; to Lieutenant General Karl Eikenberry, Obama's choice for ambassador to Afghanistan.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Andrew Gray; Editing by Peter Cooney)&lt;/p&gt;</media:text>
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<title>Obama considers expanding Afghan security force: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I0ZJ20090319</link>
<pubDate>Wed, 18 Mar 2009 21:33:56 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. President Barack Obama is considering a plan that would double the size of Afghanistan's security force to about 400,000 troops and police officer to stabilize the nation, The New York Times reported on Wednesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. President Barack Obama is considering a plan that would double the size of Afghanistan's security force to about 400,000 troops and police officer to stabilize the nation, The New York Times reported on Wednesday.&lt;/p&gt;

&lt;p&gt;Obama was expected to approve a version of the plan in coming days as part of a broader Afghanistan-Pakistan strategy, the report said, citing senior administration and Pentagon officials.&lt;/p&gt;

&lt;p&gt;Afghanistan now has about 90,000 troops and the Afghan National Police numbers about 80,000 officers, the newspaper said.&lt;/p&gt;

&lt;p&gt;The relatively small size of the security forces has frustrated Afghan officials and American commanders who wanted to turn security over to legitimate Afghan security forces, and not local warlords, at a faster pace, the Times reported.&lt;/p&gt;

&lt;p&gt;The White House declined comment on the report.&lt;/p&gt;

&lt;p&gt;The administration's goal of a 400,000-strong Afghan security force is more than three times the size that U.S. officials believed would be adequate for Afghanistan in 2002, when the Taliban and Al Qaeda appeared to have been routed, the report said.&lt;/p&gt;

&lt;p&gt;According to the newspaper, cost projections for the program range from $10 billion to $20 billion over the next six or seven years. The annual budget for the entire Afghan government is largely provided by the United States and other international donors.&lt;/p&gt;

&lt;p&gt;Earlier on Wednesday, U.S. Defense Secretary Robert Gates was asked whether a Pentagon estimate puts the cost of expanding the Afghan forces to 134,000 at $17 billion.&lt;/p&gt;

&lt;p&gt;Gates told reporters at a briefing that estimate sounds too high.&lt;/p&gt;

&lt;p&gt;&quot;That's higher than any figure I've heard,&quot; Gates said. &quot;And we certainly hope that our allies and partners and others around the world will contribute to the Afghan trust fund at NATO to help sustain these forces over time.&quot;&lt;/p&gt;

&lt;p&gt;(Editing by Sandra Maler)&lt;/p&gt;</media:text>
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<title>New Mexico Gov. Bill Richardson bans death penalty</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I0I820090319</link>
<pubDate>Wed, 18 Mar 2009 19:39:40 -0600</pubDate>
<description><![CDATA[PHOENIX (Reuters) - New Mexico Governor Bill Richardson signed a bill to repeal the death penalty in the state and replace it with a sentence of life imprisonment without parole, his office said on Wednesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;PHOENIX (Reuters) - New Mexico Governor Bill Richardson signed a bill to repeal the death penalty in the state and replace it with a sentence of life imprisonment without parole, his office said on Wednesday.&lt;/p&gt;

&lt;p&gt;Last week, the state's Democratic-controlled Senate voted 24-18 for a bill to revoke the death penalty. It had already been passed by New Mexico's House of Representatives.&lt;/p&gt;

&lt;p&gt;Richardson, a Democrat, previously supported the death penalty. The decision to repeal it marked the &quot;end of a long personal journey on the issue,&quot; he said in a news release.&lt;/p&gt;

&lt;p&gt;There are two prisoners currently on death row in the state.&lt;/p&gt;

&lt;p&gt;New Mexico is the 15th state to abandon capital punishment, according to the Death Penalty Information Center. New York and New Jersey repealed capital punishment in 2007 and bills to abolish it are pending in several states, the center said.&lt;/p&gt;

&lt;p&gt;New Mexico has carried out only one execution since the death penalty was reinstated by the U.S. Supreme Court in 1976. Neighboring Texas is America's most active death penalty state.&lt;/p&gt;

&lt;p&gt;There have been  more than 1,130 executions in the United States since the 1970s.&lt;/p&gt;

&lt;p&gt;(Reporting by Tim Gaynor; Editing by Peter Cooney)&lt;/p&gt;</media:text>
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<title>FACTBOX: Facts on ski fatalities and helmet use</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I0FZ20090319</link>
<pubDate>Wed, 18 Mar 2009 19:21:10 -0600</pubDate>
<description><![CDATA[(Reuters) - Actress Natasha Richardson died on Wednesday after suffering severe injuries in a skiing accident in Canada. Her death has reignited a public discussion about the use of helmets in the sport.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Actress Natasha Richardson died on Wednesday after suffering severe injuries in a skiing accident in Canada. Her death has reignited a public discussion about the use of helmets in the sport.&lt;/p&gt;

&lt;p&gt;Following are other famous people who died due to skiing accidents as well as statistics on skiing and helmet use.&lt;/p&gt;

&lt;p&gt;* Michael LeMoyne Kennedy, son of the late U.S. presidential candidate Robert F. Kennedy, died in 1997 after striking a tree while skiing in Aspen, Colorado. He was 39.&lt;/p&gt;

&lt;p&gt;* Sonny Bono, a singer and entertainer who entered politics and was elected to the U.S. House of Representatives, died after hitting a tree in 1998 while skiing near South Lake Tahoe, California. He was 62.&lt;/p&gt;

&lt;p&gt;* Michel Trudeau, son of the late Canadian Prime Minister Pierre Trudeau, was swept into a lake by an avalanche in 1998 while skiing at British Columbia's Kokanee Glacier Provincial Park. His body was never found. He was 23.&lt;/p&gt;

&lt;p&gt;* John McWethy, a longtime national security correspondent for U.S. network ABC, died in 2008 after striking a tree in Keystone, Colorado. He was 60.&lt;/p&gt;

&lt;p&gt;* An average of 39 people have died in skiing accidents each year over the past decade, according to the website of the U.S.-based National Ski Areas Association.&lt;/p&gt;

&lt;p&gt;* Statistics cited by the NSAA indicate helmet use is up, with 43 percent of skiers and snowboarders wearing helmets last winter, compared to 25 percent five years earlier.&lt;/p&gt;

&lt;p&gt;* Increased helmet usage, however, has not reduced fatalities. Most helmets are not built to guard against impacts at speeds skiers and snowboarders easily reach.&lt;/p&gt;

&lt;p&gt;* Helmet use increases with ability. Only 26 percent of beginner skiers wear them compared to 55 percent of advanced skiers.&lt;/p&gt;

&lt;p&gt;(Source on Helmets and deaths is the National Ski Areas Association, http://www.nsaa.org/nsaa/home/)&lt;/p&gt;

&lt;p&gt;(Reporting by Alex Dobuzinskis: Editing by Bob Tourtellotte)&lt;/p&gt;</media:text>
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<title>FACTBOX: Actress Natasha Richardson dies after ski fall</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I0B620090319</link>
<pubDate>Wed, 18 Mar 2009 18:49:00 -0600</pubDate>
<description><![CDATA[(Reuters) - Award-winning actress Natasha Richardson died in New York on Wednesday after suffering a severe injury in a skiing accident in Canada, according to a family spokesman.]]></description>
<guid isPermaLink="false" >USTRE52I0B620090319</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Award-winning actress Natasha Richardson died in New York on Wednesday after suffering a severe injury in a skiing accident in Canada, according to a family spokesman.&lt;/p&gt;

&lt;p&gt;Following are some facts about Richardson.&lt;/p&gt;

&lt;p&gt;* She was born in London on May 11, 1963, into the Redgrave acting dynasty. She is the eldest daughter of renowned stage and film actress Vanessa Redgrave and her then-husband, the late director Tony Richardson.&lt;/p&gt;

&lt;p&gt;* She is the granddaughter of the late British actor Sir Michael Redgrave and niece of actors Lynn and Corin Redgrave. Her sister, Joely Richardson, appears on the U.S. television show &quot;Nip/Tuck.&quot;&lt;/p&gt;

&lt;p&gt;* Richardson had been married to Irish actor Liam Neeson, 56, since 1994. They met on the set of the 1994 Jodie Foster film, &quot;Nell.&quot; The couple have two sons Michael, 13, and Daniel Jack, 12. Prior to marrying Neeson, Richardson was married for two years to British producer-director Robert Fox.&lt;/p&gt;

&lt;p&gt;* She trained at London's prestigious Central School of Speech and Drama. Richardson has acted extensively in London's West End and on Broadway.&lt;/p&gt;

&lt;p&gt;* She won a U.S. Tony Award in 1998 for her performance in the musical &quot;Cabaret,&quot; and she was named most promising newcomer in 1986 for her London performance in &quot;The Seagull.&quot;&lt;/p&gt;

&lt;p&gt;* Her film credits include &quot;Gothic&quot; (1986), &quot;A Month in the Country&quot; (1987), &quot;Nell&quot; (1994), in which she appeared with Neeson, and &quot;The Parent Trap&quot; (1998).&lt;/p&gt;

&lt;p&gt;(Reporting by Mike Collett-White in London; Editing by Bob Tourtellotte and Sandra Maler)&lt;/p&gt;</media:text>
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<title>Sen. Dodd acknowledges role in bonus loophole</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52I08X20090319</link>
<pubDate>Wed, 18 Mar 2009 18:42:06 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - Senate Banking Committee Chairman Chris Dodd said on Wednesday he was responsible for a legislative loophole that let AIG pay executives $165 million in bonuses, but that he acted at the behest of the Obama administration.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - Senate Banking Committee Chairman Chris Dodd said on Wednesday he was responsible for a legislative loophole that let AIG pay executives $165 million in bonuses, but that he acted at the behest of the Obama administration.&lt;/p&gt;

&lt;p&gt;&quot;We wrote the language in the bill to deal with bonuses, golden parachutes, excessive compensation -- executive compensation, that was adopted unanimously by the United States Senate in the stimulus bill,&quot; Dodd, a Connecticut Democrat, told CNN.&lt;/p&gt;

&lt;p&gt;He said the administration sought changes in the amendment that aimed to curb executive compensation at AIG and other firms accepting government bailout funds.&lt;/p&gt;

&lt;p&gt;CNN, citing a Treasury official who spoke on condition of anonymity, said the Treasury Department had raised concerns the government would be sued if it prohibited companies like AIG from honoring bonus contracts.&lt;/p&gt;

&lt;p&gt;&quot;I didn't negotiate with myself,&quot; Dodd said. &quot;I didn't write at my own behest. I was being sought out and asked to modify this, with the alternative, candidly, being losing the amendment itself.&quot;&lt;/p&gt;

&lt;p&gt;(Editing by Peter Cooney)&lt;/p&gt;</media:text>
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<title>Natasha Richardson dies after ski fall</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52G2P220090319</link>
<pubDate>Wed, 18 Mar 2009 18:04:10 -0600</pubDate>
<description><![CDATA[LOS ANGELES (Reuters) - Award-winning actress Natasha Richardson, a member of Britain's Redgrave acting dynasty, died on Wednesday at age 45 after a suffering a severe brain injury in a skiing accident in Canada earlier this week.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Bob Tourtellotte&lt;/p&gt;

&lt;p&gt;LOS ANGELES (Reuters) - Award-winning actress Natasha Richardson, a member of Britain's Redgrave acting dynasty, died on Wednesday at age 45 after a suffering a severe brain injury in a skiing accident in Canada earlier this week.&lt;/p&gt;

&lt;p&gt;Richardson had been hospitalized in New York since Tuesday, surrounded by her husband, actor Liam Neeson, her two sons Michael, 13, and Daniel Jack, 12, and members of her immediate family including her mother, actress Vanessa Redgrave.&lt;/p&gt;

&lt;p&gt;&quot;Liam Neeson, his sons, and the entire family are shocked and devastated by the tragic death of their beloved Natasha. They are profoundly grateful for the support, love and prayers of everyone, and ask for privacy during this very difficult time,&quot; family spokesman Alan Nierob said in a statement.&lt;/p&gt;

&lt;p&gt;Richardson followed her Oscar-winning mother and her father, the late film director Tony Richardson, into a career on stage and screen in England and the United States. She won Broadway's Tony Award in the 1998 musical revival, &quot;Cabaret.&quot;&lt;/p&gt;

&lt;p&gt;Richardson was injured on Monday when she fell on a beginners slope during a private ski lesson at the Mont Tremblant resort, about 75 miles north of Montreal.&lt;/p&gt;

&lt;p&gt;A spokeswoman for the resort said she appeared to be in good condition after the fall, but her instructor called a ski patrol to take her to the bottom of the hill.&lt;/p&gt;

&lt;p&gt;About an hour later, she complained of severe headaches and was admitted to a local medical facility before eventually being transferred to a Montreal hospital where she was diagnosed with severe brain trauma.&lt;/p&gt;

&lt;p&gt;Tuesday afternoon with Neeson by her side she was flown to New York and admitted to the Lenox Hill Hospital where her family rushed to her bedside in her final hours.&lt;/p&gt;

&lt;p&gt;THEATER CAME FIRST&lt;/p&gt;

&lt;p&gt;Richardson was born in London in May 1963, and she trained at the city's prestigious Central School of Speech and Drama.&lt;/p&gt;

&lt;p&gt;She was perhaps best known worldwide for film roles that included playing a young Lindsay Lohan's mother in the 1998 remake of &quot;The Parent Trap&quot; and for her role in the Jennifer Lopez romantic comedy &quot;Maid in Manhattan.&quot;&lt;/p&gt;

&lt;p&gt;But first and foremost she was a theater actress, equally at home on the stages of London's West End and New York's Broadway. She won a most promising newcomer award in 1986 for her London performance in &quot;The Seagull,&quot; opposite her mother, and later won a Tony as songstress Sally Bowles in &quot;Cabaret.&quot;&lt;/p&gt;

&lt;p&gt;Tony voters also nominated Richardson for her 1993 Broadway debut in a revival of Eugene O'Neill's &quot;Anna Christie.&quot; She competed against her aunt, Lynn Redgrave, for the best actress award, but both lost to Madeline Kahn.&lt;/p&gt;

&lt;p&gt;Richardson also enjoyed a prolific television career with starring roles in the BBC production of Henrik Ibsen's &quot;Ghosts&quot; and the 2001 CBS mini-series &quot;Haven.&quot;&lt;/p&gt;

&lt;p&gt;Her latest movie role was as a strict English boarding school headmistress in the 2008 teen comedy &quot;Wild Child.&quot;&lt;/p&gt;

&lt;p&gt;Richardson Neeson, 56, worked together on 1994 Jodie Foster drama &quot;Nell.&quot; The couple married in July 1994 and had Michael and Daniel Jack. Her first marriage, to filmmaker Robert Fox, lasted two years.&lt;/p&gt;

&lt;p&gt;Richardson's sister is the &quot;Nip/Tuck&quot; star, Joely Richardson. She is the granddaughter of late British actor Sir Michael Redgrave and niece of actors Lynn and Corin Redgrave.&lt;/p&gt;

&lt;p&gt;(Additional Reporting by Michelle Nichols in New York; Writing by Jill Serjeant and Bob Tourtellotte; Editing by Sandra Maler)&lt;/p&gt;</media:text>
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<title>U.S. plans soon to ease ban on contacts with Iran</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H7RC20090318</link>
<pubDate>Wed, 18 Mar 2009 17:02:32 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The Obama administration, in a sign of thawing ties with Iran, is likely soon to relax restrictions on contacts between U.S. diplomats and Iranian officials, said a source close to the matter.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Sue Pleming&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The Obama administration, in a sign of thawing ties with Iran, is likely soon to relax restrictions on contacts between U.S. diplomats and Iranian officials, said a source close to the matter.&lt;/p&gt;

&lt;p&gt;But the source, who asked not to be named because a review of U.S. policy on Iran is not complete, said the Bush administration's idea to open a low-level diplomatic outpost in Tehran was for now &quot;off the table.&quot;&lt;/p&gt;

&lt;p&gt;The plan is to make small but significant gestures to Tehran, including an invitation to a conference on Afghanistan this month, and to allow U.S. diplomats to see Iranian officials without first seeking approval, as has been the case for nearly 30 years.&lt;/p&gt;

&lt;p&gt;&quot;These contacts could be across the board,&quot; said the source, adding that the review was not final and that President Barack Obama still had to sign off on it.&lt;/p&gt;

&lt;p&gt;Diplomatic sources and analysts said the idea of low to mid-level contacts without first being authorized had been discussed for a while and that this was broadly seen as a first step toward higher-level engagement.&lt;/p&gt;

&lt;p&gt;The United States cut off diplomatic ties with Tehran during the 1979-1981 hostage crisis, in which a group of militant Iranian students held 52 U.S. diplomats hostage at the American Embassy for 444 days.&lt;/p&gt;

&lt;p&gt;Last year, the State Department's point person on Iran met with his counterpart as part of multilateral talks with Tehran over its nuclear program. That meeting was approved after much debate within the Bush administration.&lt;/p&gt;

&lt;p&gt;There were also contacts between the U.S. ambassador to Iraq and his Iranian counterpart and discussions with Iran over Afghanistan.&lt;/p&gt;

&lt;p&gt;NO DIPLOMATIC OUTPOST YET&lt;/p&gt;

&lt;p&gt;The Bush administration had been considering opening up a U.S. interests section in Tehran, much as it has in Cuba, but decided to leave this decision up to the next administration.&lt;/p&gt;

&lt;p&gt;Having an interest section would stop well short of full diplomatic relations but it would involve sending U.S. diplomats to Tehran for the first time in 30 years.&lt;/p&gt;

&lt;p&gt;Diplomats and the source close to the discussions on the issue, said the Obama administration's policy review on Iran, which is expected to be complete in the coming weeks, no longer had this option on the table.&lt;/p&gt;

&lt;p&gt;The Obama administration would like to lay the groundwork for such a move first and any decision on that was unlikely at least until after Iran's June elections.&lt;/p&gt;

&lt;p&gt;U.S. Secretary of State Hillary Clinton made her first public overture to Iran earlier this month by inviting Tehran to attend an international conference in the Hague on future strategy toward Afghanistan.&lt;/p&gt;

&lt;p&gt;State Department spokesman Robert Wood said no bilateral talks were planned between Clinton and her counterpart from Tehran if he was at the conference.&lt;/p&gt;

&lt;p&gt;&quot;I will not rule out the fact that there could be some kind of a, you know, a greeting of some type, but there's no plan, as far as I know, for there to be a meeting between the two delegations,&quot; Wood told reporters.&lt;/p&gt;

&lt;p&gt;Former U.S. Secretary of State Condoleezza Rice attended several conferences aimed at stabilizing Iraq, where Iran was also invited. Rice exchanged pleasantries with Iran's foreign minister at those events but never had substantive talks.&lt;/p&gt;

&lt;p&gt;Wood said the Obama administration was in the midst of a full review of its strategy toward Iran and he could not give details of how engagement with Iran might ultimately unfold.&lt;/p&gt;

&lt;p&gt;&quot;Before we engage in a real dialogue with Iran on a number of these issues, we need to finish our review. And I think that's only fair,&quot; said Wood.&lt;/p&gt;

&lt;p&gt;(Editing by Cynthia Osterman)&lt;/p&gt;</media:text>
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<title>U.S. House to vote Thursday to recoup AIG bonuses</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H6AJ20090318</link>
<pubDate>Wed, 18 Mar 2009 16:56:44 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. House of Representatives, reacting to public furor, will vote on Thursday on a bill to recoup most of the bonuses paid to AIG executives after the insurer got billions of dollars in government aid, Democratic leaders said on Wednesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Donna Smith and Richard Cowan&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The U.S. House of Representatives, reacting to public furor, will vote on Thursday on a bill to recoup most of the bonuses paid to AIG executives after the insurer got billions of dollars in government aid, Democratic leaders said on Wednesday.&lt;/p&gt;

&lt;p&gt;The bill would impose a 90 percent tax on bonuses for executives whose incomes exceed $250,000. The tax would apply to executives of any company that received at least $5 billion in government bailout money.&lt;/p&gt;

&lt;p&gt;American International Group Inc has received up to $180 billion in emergency aid and is now about 80 percent owned by the U.S. government.&lt;/p&gt;

&lt;p&gt;The $165 million in bonuses paid to AIG executives, many of them in the high-flying unit whose risky investments would have toppled the insurance giant if not for federal intervention, sparked outrage and calls for action to recoup taxpayer money.&lt;/p&gt;

&lt;p&gt;&quot;The American people are very upset about what they have heard about bonuses being paid by institutions which received taxpayer funds,&quot; House Speaker Nancy Pelosi told reporters.&lt;/p&gt;

&lt;p&gt;House Democratic Leader Steny Hoyer said he expected the bill to pass overwhelmingly. It is being rushed to the House floor under an expedited procedure and will need a two-thirds majority to pass.&lt;/p&gt;

&lt;p&gt;House Republicans, whose support will be needed for passage, have not yet commented on the bill.&lt;/p&gt;

&lt;p&gt;The Senate is working on a somewhat different approach. A bill unveiled on Tuesday would impose a 70 percent tax on the bonuses, with the tax bill split equally between the company and the bonus recipient.&lt;/p&gt;

&lt;p&gt;AIG's chief executive, Edward Liddy, told a congressional panel on Wednesday he asked employees receiving more than $100,000 in bonuses to repay at least half.&lt;/p&gt;

&lt;p&gt;Liddy, who took over as head of AIG in September when the government stepped in with the first of a series of rescues, said he was trying to prevent the insurance behemoth from collapsing when he allowed the bonuses.&lt;/p&gt;

&lt;p&gt;'UNINTENDED CONSEQUENCES'&lt;/p&gt;

&lt;p&gt;Hoyer said the House was working on other measures to ensure the government recouped the bonus money.&lt;/p&gt;

&lt;p&gt;The House Judiciary Committee on Wednesday approved a bill that would authorize the U.S. attorney general to seek repayment of excessive compensation from employees of companies that have received more than $10 billion in federal aid.&lt;/p&gt;

&lt;p&gt;The measure, approved by voice vote by the Judiciary Committee, also would allow the attorney general to restrict future payments to executives to 10 times the average non-management wages at companies getting federal aid.&lt;/p&gt;

&lt;p&gt;&quot;The legislation before us represents an effort to safeguard taxpayer funds and rein in out-of-control compensation and bonus abuses by companies that have used federal financial assistance to avoid bankruptcy,&quot; said Representative John Conyers, the panel chairman.&lt;/p&gt;

&lt;p&gt;Some Republicans praised the concept of trying to recoup the bonuses but questioned the method, expressing concern it runs afoul of U.S. law and potentially the U.S. Constitution.&lt;/p&gt;

&lt;p&gt;&quot;Congress has let expediency override common sense,&quot; said Representative Lamar Smith, the top Republican on the Judiciary Committee.&lt;/p&gt;

&lt;p&gt;&quot;Congress already has learned the hard way the unintended consequences of rushing to legislate without adequate expert testimony and debate but that's exactly what we are doing now.&quot;&lt;/p&gt;

&lt;p&gt;Some Democrats also questioned the constitutionality of the legislation.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Jeremy Pelofsky; Editing by John O'Callaghan)&lt;/p&gt;</media:text>
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<title>AIG weighing sale of Manhattan headquarters</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H5D220090318</link>
<pubDate>Wed, 18 Mar 2009 15:53:13 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - American International Group Inc, being kept afloat by a $180 billion government bailout, may sell its downtown Manhattan headquarters.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - American International Group Inc, being kept afloat by a $180 billion government bailout, may sell its downtown Manhattan headquarters.&lt;/p&gt;

&lt;p&gt;&quot;AIG is evaluating the potential sale of its headquarters building at 70 Pine Street and the 72 Wall Street building,&quot; said spokesman Mark Herr in a statement. &quot;This is part of AIG's divestiture strategy and effort to maximize operating efficiency.&quot;&lt;/p&gt;

&lt;p&gt;AIG has been the focus of an irate U.S. Congress this week, fuming over $165 million in bonus payments to executives after the massive bailout.&lt;/p&gt;

&lt;p&gt;Both buildings were constructed in 1932 and have been owned and operated by AIG since the 1970s. The insurer's roots date back to China in 1919.&lt;/p&gt;

&lt;p&gt;The 66-story 70 Pine Street building is topped with a Gothic-like spire, and was the tallest building in downtown Manhattan prior to the building of the World Trade Center.&lt;/p&gt;

&lt;p&gt;Herr said &quot;market interest&quot; would help AIG decide the best way to proceed with the sale.&lt;/p&gt;

&lt;p&gt;He declined to say what price tag AIG was seeking for the properties. CB Richard Ellis is representing AIG.&lt;/p&gt;

&lt;p&gt;It has also put the prized Otemach building in Tokyo that overlooks the Imperial Palace up for sale and is in talks to sell other real estate assets around the world.&lt;/p&gt;

&lt;p&gt;Merrill Lynch is running the auction for the Tokyo building.&lt;/p&gt;

&lt;p&gt;AIG has been trying to dispose of assets and businesses since last year in an effort to pay back debt to the U.S. government.&lt;/p&gt;

&lt;p&gt;AIG, once the world's biggest insurer by market value, averted bankruptcy in September with an $85 billion federal bailout. The rescue later swelled to as much as $180 billion.&lt;/p&gt;

&lt;p&gt;AIG shares closed 42 cents higher at $1.38 on the New York Stock Exchange.&lt;/p&gt;

&lt;p&gt;(Reporting by Lilla Zuill; editing by Jeffrey Benkoe)&lt;/p&gt;</media:text>
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<title>Geithner gets Obama's backing amid AIG, staff woes</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H7HX20090318</link>
<pubDate>Wed, 18 Mar 2009 15:38:45 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama voiced confidence in U.S. Treasury Secretary Timothy Geithner for the second day in a row on Wednesday amid criticism over the government's handling of American International Group's bonuses and lingering delays in filling key Treasury jobs.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By David Lawder&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama voiced confidence in U.S. Treasury Secretary Timothy Geithner for the second day in a row on Wednesday amid criticism over the government's handling of American International Group's bonuses and lingering delays in filling key Treasury jobs.&lt;/p&gt;

&lt;p&gt;&quot;I have complete confidence in Tim Geithner and my entire economic team,&quot; Obama said with Geithner at his side on the White House South Lawn.&lt;/p&gt;

&lt;p&gt;&quot;Nobody's working harder than this guy. You know, he is making all the right moves in terms of playing a bad hand,&quot; Obama said before boarding his Marine One helicopter to start a trip to California.&lt;/p&gt;

&lt;p&gt;The show of support came as Geithner absorbed some of the lawmaker and public outrage over AIG's payment of $165 million in retention bonuses on Sunday to employees of the unit that made bad bets on toxic mortgages and credit default swaps, triggering multiple U.S. bailouts now totaling $180 billion.&lt;/p&gt;

&lt;p&gt;On Tuesday, White House spokesman Robert Gibbs also said Obama was confident in Geithner.&lt;/p&gt;

&lt;p&gt;U.S. lawmakers, particularly Republicans, were not so supportive. Rep. Darrell Issa of California, the top Republican on the House Oversight and Government Reform Committee, called for his resignation.&lt;/p&gt;

&lt;p&gt;&quot;Secretary Geithner either didn't know about the bonuses and was grossly negligent, or he did know and failed to bring this to the president's attention,&quot; Issa said. &quot;Either way, the end result has been a significant waste of taxpayer dollars and he should take immediate responsibility and resign.&quot;&lt;/p&gt;

&lt;p&gt;At a U.S. House of Representatives hearing on the AIG bonuses on Wednesday, protesters waved signs reading &quot;Fire Geithner.&quot;&lt;/p&gt;

&lt;p&gt;AIG Chief Executive Edward Liddy told lawmakers that Geithner knew about the bonus problem two weeks ago, but a U.S. Treasury spokesman contradicted this, saying Geithner did not learn of the problem until March 10.&lt;/p&gt;

&lt;p&gt;Geithner also has faced criticism over his methodical approach to developing plans to clear problem assets off of bank balance sheets.&lt;/p&gt;

&lt;p&gt;Lack of detail in an initial outline in February caused a major drop in financial stocks. Now, the controversy over AIG has some private investors rethinking their willingness to participate in a public-private investment fund to buy troubled assets.&lt;/p&gt;

&lt;p&gt;Other Republicans were not ready to jettison the Treasury secretary, but gave him low marks for his work in his less than two months on the job.&lt;/p&gt;

&lt;p&gt;&quot;I don't have a lot of confidence in what Treasury's doing up to now in dealing with our banking system,&quot; said Sen. Richard Shelby of Alabama, the ranking Republican on the Senate Bnaking Committee.&lt;/p&gt;

&lt;p&gt;But Geithner, who faces a major test in coming days when he reveals more details about the bank asset plan, drew support from other lawmakers on Wednesday.&lt;/p&gt;

&lt;p&gt;&quot;I think he's been doing a very good job. I think things like, for instance, the foreclosure issue, he's handled very well,&quot; said Rep. Barney Frank, the Democratic chairman of the influential House Financial Services Committee. &quot;He inherited a tough situation.&quot;&lt;/p&gt;

&lt;p&gt;STAFF DEFICIT&lt;/p&gt;

&lt;p&gt;The bank asset plan has been hampered by delays in filling key positions at the Treasury, including deputy secretary and undersecretaries for domestic finance and international affairs. Geithner himself remains the only Treasury nominee to be confirmed by the U.S. Senate.&lt;/p&gt;

&lt;p&gt;He has been developing policy with a close circle of advisers and is bringing on additional help. On Wednesday, people familiar with the matter said Citigroup chief economist Lewis Alexander will join the Treasury as another counselor to Geithner. Alexander was an economist at the Federal Reserve and the U.S. Commerce Department in the 1990s.&lt;/p&gt;

&lt;p&gt;These people also said that Lael Brainard, a former White House economic adviser in the Clinton administration who is now director of global economy and development at the Brookings Institution, in Washington, is being vetted for nomination as undersecretary for international affairs.&lt;/p&gt;

&lt;p&gt;As if he needed more on his plate, Geithner also is working on a package of financial regulatory changes aimed at reducing systemic risk and giving the government new powers to unwind failing non-bank financial institutions. Obama administration officials said the plan, called for closing gaps in oversight and stronger investor protections.&lt;/p&gt;

&lt;p&gt;(Additional reporting by John Poirier, Kevin Drawbaugh, Corbett Daly, Thomas Ferraro and Caren Bohan, writing by David Lawder; Editing by Leslie Adler)&lt;/p&gt;</media:text>
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<title>AIG chief: &quot;I need all the help I can get&quot;</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H7BW20090318</link>
<pubDate>Wed, 18 Mar 2009 15:07:27 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The head of the nation's most vilified corporation sat before irate lawmakers at a U.S. congressional hearing on Wednesday and was assured, "We don't intend to harass you."]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Thomas Ferraro&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The head of the nation's most vilified corporation sat before irate lawmakers at a U.S. congressional hearing on Wednesday and was assured, &quot;We don't intend to harass you.&quot;&lt;/p&gt;

&lt;p&gt;Then the harassment began.&lt;/p&gt;

&lt;p&gt;Edward Liddy, chairman and chief executive of insurer American International Group Inc, had the unenviable job of batting back questions from a congressional panel eager to express outrage at the company for paying $165 million in employee bonuses after getting up to $180 billion in government aid.&lt;/p&gt;

&lt;p&gt;&quot;There's a tidal wave of rage throughout America right now and it's building up and it's expressing itself at this latest outrage, which is really just the tip of the iceberg,&quot; said Representative Gary Ackerman, a New York Democrat, mixing his metaphors.&lt;/p&gt;

&lt;p&gt;Democrat Paul Hodes of New Hampshire, chimed in, &quot;You know, as far as the American people are concerned, I think AIG now stands for arrogance, incompetence and greed.&quot;&lt;/p&gt;

&lt;p&gt;The flap over the bonuses has lawmakers and President Barack Obama on the defensive for not including better safeguards in the bailout that saved AIG, and while Liddy found himself in the hot seat, there seemed to be plenty of blame to go around.&lt;/p&gt;

&lt;p&gt;Liddy -- being paid $1 a year to rescue the once mighty AIG -- took pains to appear neither arrogant, incompetent nor greedy, politely shaking hands with protesters before taking his seat and calmly answering lawmakers' questions.&lt;/p&gt;

&lt;p&gt;&quot;Six months ago, I came out of retirement to help my country,&quot; said the 63-year-old Liddy.&lt;/p&gt;

&lt;p&gt;&quot;At the federal government's request, I have had the duty, honor and extraordinary challenge of serving as chairman and chief executive officer,&quot; Liddy said.&lt;/p&gt;

&lt;p&gt;PATIENCE RUNNING THIN&lt;/p&gt;

&lt;p&gt;Liddy said the &quot;cold realities of competition&quot; compelled the insurer to pay $165 million in bonuses. But he also made it clear he understood AIG must clean up its act -- setting off a wave of nods from the assembled lawmakers.&lt;/p&gt;

&lt;p&gt;&quot;We are acutely aware not only that we must be good stewards of the public funds ... but that the patience of America's taxpayers is wearing thin,&quot; Liddy said.&lt;/p&gt;

&lt;p&gt;Liddy announced he had asked employees who received more than $100,000 in bonuses to repay at least half and he said some had already offered to give back their entire bonus.&lt;/p&gt;

&lt;p&gt;The hearing lasted several hours with Liddy fending off and fielding a variety of often hostile questions.&lt;/p&gt;

&lt;p&gt;Liddy said he was confident AIG could be rescued, but that the company had been &quot;disgraced&quot; and its name so muddied it would eventually have to be changed.&lt;/p&gt;

&lt;p&gt;Shortly before Liddy arrived, Republican Representative Ed Royce said Congress itself should have known better.&lt;/p&gt;

&lt;p&gt;&quot;I voted against the bailout of AIG, and I wrote an editorial at the time, 'Bailout Plan could Mutate Into a Gravy Train of Tax Money,'&quot; Royce said. &quot;Well it has.&quot;&lt;/p&gt;

&lt;p&gt;Ackerman, who said future congressional inquiries into the AIG mess could resemble the &quot;waterboarding&quot; interrogation techniques recently disavowed by the Obama administration, urged Liddy to cooperate and said he was there to help the beleaguered executive.&lt;/p&gt;

&lt;p&gt;&quot;I need all the help I can get,&quot; Liddy conceded.&lt;/p&gt;

&lt;p&gt;Ackerman then gave a helpful tip: &quot;Pay the $165 million (in bonuses) back.&quot;&lt;/p&gt;</media:text>
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<title>France condemns Pope's remarks on condoms in Africa</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H71V20090318</link>
<pubDate>Wed, 18 Mar 2009 14:28:02 -0600</pubDate>
<description><![CDATA[PARIS (Reuters) - Senior French politicians of all colors roundly criticized Pope Benedict Wednesday for saying the use of condoms was complicating the fight against AIDS.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;PARIS (Reuters) - Senior French politicians of all colors roundly criticized Pope Benedict Wednesday for saying the use of condoms was complicating the fight against AIDS.&lt;/p&gt;

&lt;p&gt;Benedict made the comment Tuesday as he was traveling to Africa, re-affirming the Roman Catholic Church's opposition to condoms. But French leaders said he had gone too far.&lt;/p&gt;

&lt;p&gt;&quot;I am very worried by what has happened. I think this is opposite of tolerance and understanding and I am very sorry about it,&quot; French Foreign Minister Bernard Kouchner said.&lt;/p&gt;

&lt;p&gt;Human Rights Minister Rama Yade said she was &quot;dumbfounded&quot; by the Pope's comments, saying it risked undermining the fight against AIDS. Other politicians went further, questioning whether the Pope's ability to run the Church.&lt;/p&gt;

&lt;p&gt;&quot;This Pope is beginning to pose a real problem,&quot; former Prime Minister Alain Juppe was quoted as saying by French television.&lt;/p&gt;

&lt;p&gt;Pope Benedict seemed to be &quot;living in a situation of total autism,&quot; Juppe said.&lt;/p&gt;

&lt;p&gt;Veteran Greens politician Daniel Cohn-Bendit told France Info radio: &quot;I've had enough of this Pope now.&quot;&lt;/p&gt;

&lt;p&gt;More than 25 million people have died from AIDS since the early 1980's, mostly in sub-Saharan Africa, and some 22.5 million Africans are living with HIV, the virus that causes AIDS.&lt;/p&gt;

&lt;p&gt;The Pope's statement when he arrived on a visit to the Cameroon capital Yaounde Tuesday was one of his most explicit on the issue of condom distribution since his election in 2005.&lt;/p&gt;

&lt;p&gt;&quot;It (AIDS) cannot be overcome by the distribution of condoms. On the contrary, they increase the problem,&quot; he said.&lt;/p&gt;

&lt;p&gt;The comment caused a storm of criticism around the world. Papal officials said the Pope was reiterating established Church policy.&lt;/p&gt;

&lt;p&gt;The Church teaches that fidelity within heterosexual marriage, chastity and abstinence are the best ways to stop AIDS and does not approve condoms.&lt;/p&gt;

&lt;p&gt;However, French Foreign Ministry Spokesman Eric Chevallier said condoms played a vital role in AIDS prevention.&lt;/p&gt;

&lt;p&gt;&quot;Along with education and screening, condoms are a fundamental part of actions to prevent the transmission of the AIDS virus,&quot; he said.&lt;/p&gt;

&lt;p&gt;France is traditionally a Catholic country, although less than 10 percent of the population still attend Sunday mass. However, about 200,000 people turned out for an open-air service in Paris last year when the Pope visited the country and an opinion poll at the time showed a majority of French people had a positive view of the German-born Pontiff.&lt;/p&gt;

&lt;p&gt;(Writing by James Mackenzie; Editing by Angus MacSwan)&lt;/p&gt;</media:text>
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<title>U.S. judge denies bail to former &quot;enemy combatant&quot;</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H70420090318</link>
<pubDate>Wed, 18 Mar 2009 14:16:13 -0600</pubDate>
<description><![CDATA[CHARLESTON, South Carolina (Reuters) - A U.S. judge denied bond on Wednesday for an accused al Qaeda sleeper agent after prosecutors said he used his time in America to research information on toxins and was a colleague of suspected September 11 mastermind Khalid Sheikh Mohammed.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By James Scott&lt;/p&gt;

&lt;p&gt;CHARLESTON, South Carolina (Reuters) - A U.S. judge denied bond on Wednesday for an accused al Qaeda sleeper agent after prosecutors said he used his time in America to research information on toxins and was a colleague of suspected September 11 mastermind Khalid Sheikh Mohammed.&lt;/p&gt;

&lt;p&gt;Ali al-Marri, a 43-year-old with dual citizenship in Qatar and Saudi Arabia, was arrested in Illinois in December 2001 in an investigation of the September 11 hijacked plane attacks.&lt;/p&gt;

&lt;p&gt;Michael Mullaney, chief of the U.S. Justice Department's Counterterrorism Section, told the judge that Marri had entered the country on a student visa on September 10, 2001, but never attended college classes, a violation of his visa.&lt;/p&gt;

&lt;p&gt;Mullaney also said Marri failed to disclose on his application he had visited the United States in 2000 using a Saudi Arabian passport and had been arrested during a visit in the 1990s.&lt;/p&gt;

&lt;p&gt;He did not elaborate on the arrest, but Marri's attorney said afterward it was for driving under the influence of alcohol. He said there was no information in the file on the disposition of that case.&lt;/p&gt;

&lt;p&gt;&quot;He was here at al Qaeda's request,&quot; the Justice Department official told the court. &quot;While here, he continued to maintain contact with al Qaeda contacts back in Afghanistan.&quot;&lt;/p&gt;

&lt;p&gt;The current indictment against Marri was void of detail and Mullaney did not elaborate on his assertion that Marri knew the accused al Qaeda operations leader, Mohammed, or that he studied toxins.&lt;/p&gt;

&lt;p&gt;Marri was charged initially with credit card fraud and lying to the FBI, and pleaded not guilty. The charges were dropped in 2003 when then-President George W. Bush declared him an &quot;enemy combatant&quot; and sent him to the Consolidated Naval Brig in South Carolina. He was held in the military prison without charge and in extreme isolation for nearly six years.&lt;/p&gt;

&lt;p&gt;Following a review ordered by President Barack Obama, Marri's case was transferred to the U.S. court system. A federal grand jury in Illinois indicted Marri last month on charges of conspiring with al Qaeda and providing material support for terrorism.&lt;/p&gt;

&lt;p&gt;U.S. Magistrate Judge Robert Carr ordered U.S. marshals to take custody of Marri so he could be transferred to Illinois, where he is scheduled for arraignment on the charges on Monday in Peoria.&lt;/p&gt;

&lt;p&gt;Assistant U.S. Attorney Kevin McDonald said after the hearing that Marri was a danger to the community and a flight risk but that he could offer no further information.&lt;/p&gt;

&lt;p&gt;&quot;I'll save the details for the trial team,&quot; he said.&lt;/p&gt;

&lt;p&gt;Andrew Savage, Marri's attorney, criticized prosecutors for not sharing any of their evidence against his client. &quot;If he is who they say he is, why can't we evaluate it?&quot; he said.&lt;/p&gt;

&lt;p&gt;NO THREAT TO AMERICAN VALUES&lt;/p&gt;

&lt;p&gt;Savage said afterward the decision to deny bail for Marri was not a surprise, but &quot;I stand by my statement that he is not in any way shape or form a threat to America or American values.&quot;&lt;/p&gt;

&lt;p&gt;He argued in the bond hearing his client had been a model prisoner. He called as witnesses the brig's senior civilian leader and a military policeman who often guarded Marri, both of whom testified that Marri followed brig regulations and never tried to escape or espoused anti-American views.&lt;/p&gt;

&lt;p&gt;Savage's wife and legal assistant, Cheryl Savage, described her contacts with Marri over the years.&lt;/p&gt;

&lt;p&gt;&quot;He is very devout. His religion is very important to him,&quot; she said. &quot;It is the essence of who he is.&quot;&lt;/p&gt;

&lt;p&gt;Cheryl Savage described a trip she and her husband made to visit Marri's family in Qatar and Saudi Arabia, and her husband showed the court video clips of Marri's brothers and children, whom he had not seen in more than seven years.&lt;/p&gt;

&lt;p&gt;Marri, dressed in a dark blue hooded sweatshirt, sweat pants and wearing leg shackles and handcuffs, watched the video on a laptop computer screen.&lt;/p&gt;

&lt;p&gt;Cheryl Savage offered to put up her family's commercial real estate as collateral if Marri was granted bond. The law firm's private investigator, a former FBI agent with 30 years of experience, said he had prepared a security plan to ensure the community's safety if Marri was released.&lt;/p&gt;

&lt;p&gt;The judge said that illustrated why Marri should not be released.&lt;/p&gt;

&lt;p&gt;(Editing by Jane Sutton; Editing by Peter Cooney)&lt;/p&gt;</media:text>
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<title>AIG chief worried about safety after death threats</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H6ME20090318</link>
<pubDate>Wed, 18 Mar 2009 13:29:07 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The head of AIG told the U.S. Congress on Wednesday he was reluctant to reveal the names of employees who took home bonuses because the troubled insurer has been receiving death threats.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The head of AIG told the U.S. Congress on Wednesday he was reluctant to reveal the names of employees who took home bonuses because the troubled insurer has been receiving death threats.&lt;/p&gt;

&lt;p&gt;&quot;All the executives and their families should be executed with piano wire around their necks,&quot; Edward Liddy, chief executive of American International Group Inc, read from one note.&lt;/p&gt;

&lt;p&gt;&quot;I'm looking for all the CEOs' names, kids, where they live, etc.,&quot; he read from another.&lt;/p&gt;

&lt;p&gt;Liddy, who took over at AIG in September, was testifying before a congressional subcommittee investigating why the giant insurer paid out $165 million in bonuses after getting billions of dollars in a federal bailout.&lt;/p&gt;

&lt;p&gt;&quot;I'm just really concerned about the safety of our people,&quot; Liddy said of his willingness to release the names of the bonus recipients.&lt;/p&gt;

&lt;p&gt;Barney Frank, chairman of the House of Representatives Financial Services Committee, said their identities should be made public anyway.&lt;/p&gt;

&lt;p&gt;&quot;If we give in to these kind of threats we would never get information made public about a lot of things,&quot; he said, adding he would talk with law enforcement officials to determine the severity of the threats.&lt;/p&gt;

&lt;p&gt;Frank called the threats &quot;despicable&quot; and said law enforcement officials should track down those who make them.&lt;/p&gt;

&lt;p&gt;But he said the committee would move to issue a subpoena to find out who got the bonuses if AIG does not provide the names voluntarily.&lt;/p&gt;

&lt;p&gt;AIG has drawn intense fire from the public, politicians and President Barack Obama for accepting up to $180 billion in government aid and then handing out the bonuses.&lt;/p&gt;

&lt;p&gt;The rhetoric in Congress took on a macabre tone on Monday when Chuck Grassley, the top Republican on the Senate Finance Committee, he would feel better if AIG's top managers were to &quot;take that deep bow and say 'I'm sorry' and then either do one of two things: resign or go commit suicide.&quot;&lt;/p&gt;

&lt;p&gt;On Tuesday, he pulled back.&lt;/p&gt;

&lt;p&gt;&quot;What I'm expressing here obviously is not that I want people to commit suicide,&quot; Grassley said. &quot;But I do feel very strongly that we have not had statements of apology.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Andy Sullivan; Editing by John O'Callaghan)&lt;/p&gt;</media:text>
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<title>Rise in U.S. auto prices baffles analysts, revisions seen</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H6KX20090318</link>
<pubDate>Wed, 18 Mar 2009 13:23:38 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The reported rise in new U.S. vehicle and apparel prices during the past two months was out of sync with the economic situation and was distorting consumer inflation figures, analysts said on Wednesday.]]></description>
<guid isPermaLink="false" >USTRE52H6KX20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The reported rise in new U.S. vehicle and apparel prices during the past two months was out of sync with the economic situation and was distorting consumer inflation figures, analysts said on Wednesday.&lt;/p&gt;

&lt;p&gt;The Labor Department said on Wednesday prices for new vehicles increased 0.8 percent in February after rising 0.3 percent the prior month. Apparel prices jumped 1.3 percent after a 0.3 percent gain in January.&lt;/p&gt;

&lt;p&gt;Those increases contributed to the core Consumer Price Index rising by 0.2 percent in February after climbing by the same margin in January.&lt;/p&gt;

&lt;p&gt;Analysts said these figures were likely to be revised lower to reflect the loss of pricing power in an economy that is reeling from a recession now in its 15th month.&lt;/p&gt;

&lt;p&gt;&quot;None of these increases gel particularly well with the current economic situation,&quot; said Harm Bandholz, an economist at Unicredit Markets and Investment Banking.&lt;/p&gt;

&lt;p&gt;Retailers across the board are resorting to deep price discounts to attract buyers amid a slump in demand that is being worsened by escalating unemployment.&lt;/p&gt;

&lt;p&gt;&quot;The increase in auto prices almost defies a rational explanation. I just don't see anything out there which acts as a catalyst for a rise in the price of automobiles,&quot; said Joseph Brusuelas, an economist at Moody's Economy.com in West Chester, Pennsylvania.&lt;/p&gt;

&lt;p&gt;&quot;We will see that particular number revised going forward. How did prices for sweaters and automobiles go up when we can observe significant discounting across both the apparel and auto sector?&quot;&lt;/p&gt;

&lt;p&gt;U.S. auto sales dropped to 9.3 million units on an annualized basis in January and February, the lowest level since 1982.&lt;/p&gt;

&lt;p&gt;But speculation is rife that lower gas prices may have encouraged U.S. consumers to buy relatively more pickup trucks and SUVs, so-called light trucks that tend to carry higher prices than passenger cars.&lt;/p&gt;

&lt;p&gt;According to industry data, the light truck sales mix was 52.5 percent in January. It ticked slightly higher to 52.8 percent in February.&lt;/p&gt;

&lt;p&gt;However, analysts are unconvinced, citing the drop in overall volumes of auto sales and argue the rise in light truck sales mix was insignificant.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Kevin Krolicki in Detroit)&lt;/p&gt;

&lt;p&gt;(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)&lt;/p&gt;</media:text>
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<title>Fed to buy long-term U.S. government debt</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H5YE20090318</link>
<pubDate>Wed, 18 Mar 2009 12:34:32 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The Federal Reserve on Wednesday said it would pump an additional $1 trillion into the U.S. economy to try to pull it out of a deep recession, partly by buying longer-term government debt for the first time in more than 40 years.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Mark Felsenthal and Alister Bull&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The Federal Reserve on Wednesday said it would pump an additional $1 trillion into the U.S. economy to try to pull it out of a deep recession, partly by buying longer-term government debt for the first time in more than 40 years.&lt;/p&gt;

&lt;p&gt;In a statement at the end of a regular two-day policy meeting, the central bank's panel said it would buy up to $300 billion in longer-term Treasuries.&lt;/p&gt;

&lt;p&gt;The decision caught many off guard. While the Fed has said it was considering such a move, it had seemed to be backing away from it recent weeks. As recently as March 6, New York Fed President William Dudley had said such a move would not be the most efficient way to ease market conditions.&lt;/p&gt;

&lt;p&gt;The surprise announcement jolted markets. U.S. stocks shot higher and yields on U.S. government bonds took their biggest one-day tumbled since 1987, while the dollar plunged to a two-month low against the euro.&lt;/p&gt;

&lt;p&gt;&quot;When the Fed said it would 'employ all available means' to jump-start the recovery and prevent deflation it wasn't kidding,&quot; said Sal Guatieri of BMO Capital Markets in Toronto.&lt;/p&gt;

&lt;p&gt;In addition to purchasing Treasury debt, the Fed said it would expand by $850 billion to $1.45 trillion an existing program to buy debt and securities issued by mortgage finance agencies.&lt;/p&gt;

&lt;p&gt;The expansion of the program, which already had lowered mortgage rates, immediately pushed borrowing costs down further. Quicken Loans said rates on 30-year mortgages fell as much as 0.375 percentage point to 5 percent.&lt;/p&gt;

&lt;p&gt;RATES NEAR ZERO&lt;/p&gt;

&lt;p&gt;The Bank of England's recent success in driving interest rates down by buying government debt may have been a factor in the U.S. central bank's decision to buy longer-term Treasuries -- a strategy it last deployed in the 1960s.&lt;/p&gt;

&lt;p&gt;By driving down yields on benchmark government debt, the Fed hopes to lower a wide array of borrowing costs for consumers and businesses.&lt;/p&gt;

&lt;p&gt;&quot;This is a pretty dramatic move ... They are trying to bring down all consumer rates,&quot; said James Caron, head of global rates research at Morgan Stanley in New York.&lt;/p&gt;

&lt;p&gt;In addition to ramping up its efforts to pump money into the recession-struck economy, the Fed unanimously decided to hold its target for overnight interest rates in a zero to 0.25 percent range -- the level reached in December. One Fed official, Richmond Federal Reserve Bank President Jeffrey Lacker, returned to the fold after dissenting in January.&lt;/p&gt;

&lt;p&gt;The Fed said rates would stay low for &quot;an extended period,&quot; a more explicit vow to stay on hold with rates for a prolonged time than it had offered in recent months.&lt;/p&gt;

&lt;p&gt;CREDIT EASING II&lt;/p&gt;

&lt;p&gt;With benchmark interest rates virtually at zero for months, the Fed has turned its focus to flooding stressed credit markets with cash in the hope of restarting lending and restoring growth -- a policy Fed chief Ben Bernanke has dubbed &quot;credit easing.&quot;&lt;/p&gt;

&lt;p&gt;&quot;Bottom line is the Fed is adding a trillion dollars to their balance sheet and that's a lot of taxpayer money,&quot; said Greg Salvaggio, vice president for trading at Tempus Consulting in Washington.&lt;/p&gt;

&lt;p&gt;Bernanke on Sunday said repairing the tattered financial system was necessary to secure a recovery for the U.S. economy, which has been stuck in recession for more than a year.&lt;/p&gt;

&lt;p&gt;The Fed this week began taking bids for a program designed to spur student, auto, credit card and small business lending, and it said on Wednesday it would consider expanding that program to cover a wider array of assets.&lt;/p&gt;

&lt;p&gt;The consumer and small business credit program will initially aim to inject $200 billion into the market for securities backed by these loans, but the Fed has already said that program could be ramped up to $1 trillion.&lt;/p&gt;

&lt;p&gt;While the Fed has gone to extraordinary lengths to try to get credit flowing, the economy is still in a nose dive.&lt;/p&gt;

&lt;p&gt;U.S. gross domestic product shrank at a 6.2 percent annual rate in the fourth quarter, the deepest contraction since early 1982, and economists expect a decline of 5 percent or more in the first quarter. The unemployment rate, which has already hit a 25-year high of 8.1 percent, is expected to climb through the year.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Glen Somerville; editing by Tim Ahmann and Chizu Nomiyama)&lt;/p&gt;</media:text>
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<title>INSTANT VIEW: U.S. Fed says to buy long-dated Treasuries</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H61H20090318</link>
<pubDate>Wed, 18 Mar 2009 12:34:28 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.]]></description>
<guid isPermaLink="false" >USTRE52H61H20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.&lt;/p&gt;

&lt;p&gt;KEY POINTS: * In a statement at the end of a two-day meeting, the central bank's policy panel also said it had decided to hold its target for overnight interest rates in a zero to 0.25 percent range -- the level reached in December -- and repeated that borrowing costs would likely stay unusually low for some time. * &quot;In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability,&quot; the Fed said.&lt;/p&gt;

&lt;p&gt;COMMENTS:&lt;/p&gt;

&lt;p&gt;GREG SALVAGGIO, VICE PRESIDENT FOR TRADING, TEMPUS CONSULTING,  WASHINGTON:&lt;/p&gt;

&lt;p&gt;&quot;Bottom line is the Fed is adding a trillion dollars to their balance sheet and that's a lot of taxpayer money. Interest rates now are effectively negative across the board. The dollar is selling off because this may contribute to long-term weakness in the currency and investors are very wary of that scenario.&quot;&lt;/p&gt;

&lt;p&gt;JAMES CARON, HEAD OF GLOBAL RATES RESEARCH, MORGAN STANLEY, NEW YORK:&lt;/p&gt;

&lt;p&gt;&quot;This is a pretty dramatic move. We think they are buying maturities over seven years. They are trying to bring down all consumer rates.&quot;&lt;/p&gt;

&lt;p&gt;MARKET REACTION: STOCKS: U.S. stock indexes rise more than 1 percent. BONDS: U.S. Treasury debt prices add to gains . DOLLAR: U.S. dollar falls sharply .&lt;/p&gt;

&lt;p&gt;EARLIER DATA FROM MARCH 18:&lt;/p&gt;

&lt;p&gt;U.S. consumer prices rise&lt;/p&gt;

&lt;p&gt;U.S. current account narrows&lt;/p&gt;</media:text>
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<title>IBM in talks to buy Sun Microsystems: sources</title>
<link>http://www.reuters.com/article/topNews/idUSBNG47936420090318</link>
<pubDate>Wed, 18 Mar 2009 11:35:30 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - IBM is in talks to buy Sun Microsystems Inc, sources with knowledge of the matter said, a move that could bolster the technology giant against rivals in the high-end computer server and software markets.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Ritsuko Ando and Anupreeta Das&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - IBM is in talks to buy Sun Microsystems Inc, sources with knowledge of the matter said, a move that could bolster the technology giant against rivals in the high-end computer server and software markets.&lt;/p&gt;

&lt;p&gt;International Business Machines Corp is offering to pay over $6.5 billion, between $10 and $11 a share, The Wall Street Journal reported in its online edition. That would be double Sun's Tuesday closing price of $4.97.&lt;/p&gt;

&lt;p&gt;Shares of Sun jumped 81 percent to $9.01, while IBM shares fell 2 percent to $90.89 after the Journal reported that a deal was expected to be announced this week.&lt;/p&gt;

&lt;p&gt;Such a deal would be IBM's largest-ever acquisition, and lead to the creation of a massive technology firm offering both computer hardware, software and services.&lt;/p&gt;

&lt;p&gt;Analysts saw the move as part of a consolidation trend, as Hewlett-Packard Co, IBM and Cisco Systems Inc jostle for control of corporate data centers and compete to supply the high-end computers that power complex corporate transactions and networks.&lt;/p&gt;

&lt;p&gt;&quot;They need to make sure that they have a suite of products, to be on the leading edge, so they have dominant share,&quot; said Zach Rosenstock, analyst at Wayne Hummer Wealth Management.&lt;/p&gt;

&lt;p&gt;&quot;My feeling is that the good players with good technology and products will eventually get taken out by the bigger guys who have the means to do it and understand that it's easier to buy them than to mimic them through internal development.&quot;&lt;/p&gt;

&lt;p&gt;Sun, which declined to comment, has long been cited as a takeover target for IBM, HP, Dell Inc or Cisco, which introduced a comprehensive set of data center products earlier this week.&lt;/p&gt;

&lt;p&gt;IBM, which had nearly $13 billion in cash at the end of $2008, declined comment. Its largest acquisition to date is the $5 billion purchase of Canadian software maker Cognos in 2008.&lt;/p&gt;

&lt;p&gt;IBM's move, as well as Cisco's announcement on Monday, could signal a new wave of partnerships and acquisitions in the data center market as companies strive to provide more comprehensive products and services to their customers.&lt;/p&gt;

&lt;p&gt;Analysts have cited data equipment maker Brocade Communications Systems Inc, infrastructure software maker Citrix Systems Inc and niche network optimization companies, such as Blue Coat Systems Inc and Riverbed Technology Inc, as possible acquisition targets ahead.&lt;/p&gt;

&lt;p&gt;HARDWARE, SOFTWARE FIT&lt;/p&gt;

&lt;p&gt;Bankers have said Sun has been searching for a buyer in recent months. Sun has never fully recovered from the dotcom bubble burst in the early 2000s, when demand for its servers cratered.&lt;/p&gt;

&lt;p&gt;Some analysts had said the challenge of valuing Sun's intertwined software, hardware and services businesses could put off potential buyers, but many said that even with the reported premium, it could be a good buy for IBM.&lt;/p&gt;

&lt;p&gt;&quot;The market hasn't been kind to Sun Microsystems in the last 12 months. So it's not an expensive acquisition in my view,&quot; said Jyske Bank analyst Robert Jakobsen, speaking from Denmark.&lt;/p&gt;

&lt;p&gt;Analysts said the move would bolster IBM's efforts to gain market share in data centers, seen as a key area of growth as companies grapple with growing Internet traffic and energy costs. It would certainly up the ante in its rivalry with HP.&lt;/p&gt;

&lt;p&gt;IBM was the top supplier of servers in the fourth quarter, with a market share of 36.3 percent, according to market researcher IDC. HP has 29.0 percent, followed by Dell with 10.6 percent, Sun with 9.3 percent, and Fujitsu with 4.2 percent.&lt;/p&gt;

&lt;p&gt;These five server vendors all posted declines in their fourth-quarter server revenue, hurt by pullbacks in corporate spending on technology due to the weak global economy. The Wall Street Journal said HP had declined to buy Sun, citing a person briefed on the matter. HP declined to comment.&lt;/p&gt;

&lt;p&gt;Analysts also said IBM and Sun may be compatible as both had spent the past several years reinventing themselves by shifting their focus away from hardware to software and services.&lt;/p&gt;

&lt;p&gt;Sun has been expanding production of Linux-based computers, although that endeavor has failed to revive its stock price and the company has been shedding up to 6,000 jobs, or 18 percent of its workforce.&lt;/p&gt;

&lt;p&gt;Sun, whose name stands for Stanford University Network, rose to prominence in the 1990s when start-ups flocked to its high-end computers, which run on its Solaris operating system and have been widely used in the financial services industry.&lt;/p&gt;

&lt;p&gt;When the Internet bubble burst in 2000-01, funding for start-ups dried up along with much of the demand for Sun's computers.&lt;/p&gt;

&lt;p&gt;As of Dec 31, Sun had $1.63 bln in cash and $1.01 bln in short-term investments.&lt;/p&gt;

&lt;p&gt;(Additional reporting by S. John Tilak, Ajay Kamalakaran and Sumeet Chatterjee in Bangalore, Jim Finkle in Boston; Writing by Tiffany Wu; Editing by Lisa Von Ahn and Derek Caney)&lt;/p&gt;</media:text>
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<title>Let Christians adopt, Egypt baby trial lawyer says</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H46520090318</link>
<pubDate>Wed, 18 Mar 2009 09:29:07 -0600</pubDate>
<description><![CDATA[* Lawyer calls for law allowing Christians to adopt in Egypt]]></description>
<guid isPermaLink="false" >USTRE52H46520090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;* Lawyer calls for law allowing Christians to adopt in Egypt&lt;/p&gt;

&lt;p&gt;* Lawyer says his clients may not face a fair trial&lt;/p&gt;

&lt;p&gt;By Cynthia Johnston&lt;/p&gt;

&lt;p&gt;CAIRO (Reuters) - A lawyer for a U.S. couple jailed in Egypt in an adoption case said Egypt should pass a law allowing Christian families to adopt, because a legal gap that disallows the practice is pushing them to do so in secret.&lt;/p&gt;

&lt;p&gt;The lawyer, whose clients are in jail on fraud charges as their trial proceeds, also said he believed Egyptian authorities were seeking to warn the country's Christian minority that they could not adopt in Egypt, even through informal channels.&lt;/p&gt;

&lt;p&gt;&quot;I think that the first criminal in this case is the state,&quot; lawyer Nagiub Gobraiel told Reuters in an interview.&lt;/p&gt;

&lt;p&gt;He said Islamic restrictions on adoption were preventing Christians from adopting children born to Christian parents in Egypt, and urged authorities to put a law in place &quot;for Christians to adopt.&quot;&lt;/p&gt;

&lt;p&gt;&quot;The wife is Christian, the husband is Christian and the child or the children are Christians,&quot; he said. &quot;I think that the state is pushing us to commit a crime.&quot;&lt;/p&gt;

&lt;p&gt;There is no legal mechanism for families -- Christian or Muslim -- to adopt children in Egypt, and Egyptians rarely gain legal guardianship of children not born to their families because of social, religious and legal strictures.&lt;/p&gt;

&lt;p&gt;Islamic law restricts adoption, barring families from giving their name to children they take into their homes. Egyptian law allows fostering but it is generally not culturally acceptable for families to take in unrelated children.&lt;/p&gt;

&lt;p&gt;MORE SERIOUS CHARGES&lt;/p&gt;

&lt;p&gt;Gobraiel's clients, Egyptian Medhat Besada and his American wife Susan Haglof, are charged with fraud over accusations they obtained a birth certificate and passport for a child who was not born to them, listing them as his biological parents.&lt;/p&gt;

&lt;p&gt;Two other couples are also facing trial in the same case on more serious charges of buying babies for illegal adoption, highlighting a practice which experts say can easily go undetected in Egypt.&lt;/p&gt;

&lt;p&gt;Besada and Haglof were arrested after they tried to get a U.S. visa for the child, and the embassy requested genetic testing to confirm the baby's parentage, Gobraiel said. He said the embassy turned them in when they did not comply. U.S. officials could not be reached for comment.&lt;/p&gt;

&lt;p&gt;Two of the couples pleaded not guilty at the start of the trial Saturday, while the third is being tried in absentia.&lt;/p&gt;

&lt;p&gt;&quot;When I was in the court, I said to the judge ... Susan is Christian, Medhat is Christian, Mark (the child) is Christian, and their religion allows adopting. Why are you obliged to follow the Islamic law?&quot; Gobraiel said.&lt;/p&gt;

&lt;p&gt;Gobraiel said he did not believe his clients, who have been denied bail, could get a fair trial. Egypt says its courts are impartial and independent.&lt;/p&gt;

&lt;p&gt;&quot;The government is afraid of some child, who may be Muslim, (being) given to a Christian family and after that may be Christian in the future. I think this is the strong motive for the government to make this case,&quot; Gobraiel said.&lt;/p&gt;

&lt;p&gt;(Writing by Cynthia Johnston)&lt;/p&gt;</media:text>
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<title>U.S. charges Madoff accountant over phony audits</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H4KD20090318</link>
<pubDate>Wed, 18 Mar 2009 09:26:30 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - An accountant for Bernard Madoff "pretended" to conduct audits of the confessed swindler's investment firm, authorities said on Wednesday in charging him with fraud going back 17 years in the biggest investment scheme on Wall Street.]]></description>
<guid isPermaLink="false" >USTRE52H4KD20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Grant McCool and Martha Graybow&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - An accountant for Bernard Madoff &quot;pretended&quot; to conduct audits of the confessed swindler's investment firm, authorities said on Wednesday in charging him with fraud going back 17 years in the biggest investment scheme on Wall Street.&lt;/p&gt;

&lt;p&gt;The accountant, David Friehling, 49, who ran a small storefront firm in a New York suburb, is the first person besides Madoff to be arrested on criminal charges in the long-running fraud. The U.S. Securities and Exchange Commission (SEC) filed civil charges against Friehling.&lt;/p&gt;

&lt;p&gt;Madoff, 70, pleaded guilty on March 12 in a dramatic courtroom admission to running a worldwide fraud that prosecutors said went back at least 20 years, drawing in as much as $65 billion from big and small investors and charities.&lt;/p&gt;

&lt;p&gt;Madoff, a former Nasdaq stock market chairman, was jailed after pleading guilty to 11 criminal counts and could spend the rest of his life in prison when he is sentenced in June.&lt;/p&gt;

&lt;p&gt;The SEC said in its complaint that Friehling and his firm &quot;did not perform anything remotely resembling an audit&quot; of Madoff's money management firm or try to confirm that stocks that Madoff had purportedly bought for customers even existed.&lt;/p&gt;

&lt;p&gt;His attorney could not be reached immediately for comment.&lt;/p&gt;

&lt;p&gt;Friehling faces a maximum of 105 years in prison on the charges, including securities fraud, aiding and abetting investment adviser fraud and false audit reports.&lt;/p&gt;

&lt;p&gt;Friehling surrendered to the FBI on Wednesday and was expected to appear in court later in the day.&lt;/p&gt;

&lt;p&gt;The SEC said Friehling &quot;merely pretended&quot; to conduct minimal audit procedures to make it seem as if he was auditing. Even then, he failed to adequately document his purported findings.&lt;/p&gt;

&lt;p&gt;Friehling and his firm were paid from Madoff's ill-gotten gains, and he and his family improperly held accounts at the Madoff firm in violation of accounting rules, the SEC said. Authorities said there were millions of dollars of withdrawals from the accounts over the years.&lt;/p&gt;

&lt;p&gt;Friehling is the only certified public accountant at his firm, and the firm's sole shareholder. He formed the firm around 1988, when he partnered with his father-in-law, Jeremy Horowitz. Horowitz died of cancer at the age of 80 last Thursday, the same day that Madoff pleaded guilty.&lt;/p&gt;

&lt;p&gt;The criminal complaint in Manhattan federal court said Friehling falsely stated that audits of Bernard L. Madoff Investment Securities LLC were conducted according to standards generally accepted in the United States.&lt;/p&gt;

&lt;p&gt;&quot;Friehling also falsely stated that the audit 'included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements' when in fact, no such examination ever took place,&quot; the complaint said.&lt;/p&gt;

&lt;p&gt;Authorities said Friehling's fraud ran from 1991 to 2008, and according to the SEC, he &quot;essentially sold his license to Madoff for more than 17 years while Madoff's Ponzi scheme went undetected.&quot; In a Ponzi scheme, early investors are paid with money from new clients.&lt;/p&gt;</media:text>
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<title>AIG debacle chills investor interest in bailout plans</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H4F320090318</link>
<pubDate>Wed, 18 Mar 2009 09:03:19 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - The American International Group bonus payment debacle could not have come at a worse time for a U.S. government that desperately needs to attract up to $2 trillion of private capital for its latest efforts to repair a crippled financial system.]]></description>
<guid isPermaLink="false" >USTRE52H4F320090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Kristina Cooke and Jennifer Ablan - Analysis&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - The American International Group bonus payment debacle could not have come at a worse time for a U.S. government that desperately needs to attract up to $2 trillion of private capital for its latest efforts to repair a crippled financial system.&lt;/p&gt;

&lt;p&gt;Many big private investors see the public uproar over the ailing insurer's retention bonuses as significantly raising the risks associated with partnering with the U.S. Treasury in its proposed plan to buy toxic assets from ailing banks.&lt;/p&gt;

&lt;p&gt;And investors are now also questioning whether the returns from investing in the Federal Reserve's and U.S. Treasury's new consumer debt and distressed asset facilities will be worth the hassle of intense public scrutiny, potentially onerous restrictions, and political criticism.&lt;/p&gt;

&lt;p&gt;An irate U.S. Congress, fuming over AIG's bonus payments to executives after the insurer was bailed out three times using taxpayers money, are more likely than ever to change the rules of engagement -- possibly retroactively -- and that is unnerving money managers at hedge funds, private equity firms and banks on the eve of the long-delayed launch of the government's newest rescue efforts.&lt;/p&gt;

&lt;p&gt;&quot;The government has changed the rules several times already and therefore there's a certain 'boy who cried wolf mentality' at this juncture on the part of investors relative to preliminary ideas that are generated by the government,&quot; said Jeffrey Gundlach, chief investment officer at Trust Company of the West with $110 billion in assets under management.&lt;/p&gt;

&lt;p&gt;On Thursday, applications are due to participate in the Fed's and Treasury's $1 trillion program to revive consumer and small business lending -- known as the Term Asset-Backed Securities Loan Facility, or TALF.&lt;/p&gt;

&lt;p&gt;The U.S. Treasury also this week is expected to reveal more details of a public-private partnership to buy up to $1 trillion in toxic assets from banks, freeing their balance sheets for increased lending.&lt;/p&gt;

&lt;p&gt;The asset plan represents a critical test for Geithner, whose credibility was dented by personal tax issues during his confirmation and by widespread market disappointment with the lack of detail in his initial asset plan announcement in February.&lt;/p&gt;

&lt;p&gt;And this week, Geithner's handling of the AIG situation was called into question when it emerged that he did not know about the bonuses when he arranged a $30 billion extension of AIG's bailout, then delayed notifying the White House for two days.&lt;/p&gt;

&lt;p&gt;POLITICAL OUTRAGE&lt;/p&gt;

&lt;p&gt;The political heat surrounding AIG, which agreed to the retention bonuses before the insurer's $173 billion government bailout was initiated last September, is adding another layer of anxiety on the part of hedge funds and other big money managers.&lt;/p&gt;

&lt;p&gt;On Tuesday, outraged U.S. lawmakers proposed a special surtax on millions of dollars in executive bonuses at AIG amid howls of protest over the payouts. A House of Representatives hearing on the issue got underway on Wednesday.&lt;/p&gt;

&lt;p&gt;&quot;What happens is that the Treasury and Fed design a reasonably good process or program, but politicians get involved and write onerous restrictions to legislation that results in private capital saying, &quot;This is far too difficult. Is this worth it?'&quot; said James Kochan, fixed-income strategist at Wells Fargo Funds Management, in Menomonee Falls, Wisconsin.&lt;/p&gt;

&lt;p&gt;&quot;There is a risk that investors could pull out of these government programs,&quot; he added.&lt;/p&gt;

&lt;p&gt;CHANGING RULES MID-GAME?&lt;/p&gt;

&lt;p&gt;The government's plan to restart consumer and business lending or TALF was first announced in November last year and originally scheduled to start in February.&lt;/p&gt;

&lt;p&gt;In a typical TALF deal, a fund would use $1 million of its own money combined with a $9 million loan from the Fed to buy a $10 million security. The security must be new and be triple-A rated and the Fed's loan is payable after three years.&lt;/p&gt;

&lt;p&gt;The Fed and Treasury have made a number of concessions to issuers and investors to try to ensure the TALF program is successful, as it is seen as the central bank's premier program to boost consumer and business lending and the economy.&lt;/p&gt;

&lt;p&gt;These include limiting auditors' ability to comb through investors' books and dropping executive compensation requirements for firms participating in TALF.&lt;/p&gt;

&lt;p&gt;The Fed is desperate to attract new investors, such as hedge funds, to the asset-backed securities market in an effort to thaw consumer and small business lending markets. Before the crisis, ABS markets accounted for about 40 percent of all consumer lending.&lt;/p&gt;

&lt;p&gt;But TALF also follows months of investor resentment over the other main government program for shoring up the banking system -- the Troubled Asset Relief Program or TARP.&lt;/p&gt;

&lt;p&gt;Hedge funds and other big money managers including TCW's Gundlach have not shaken off the government's track record during the credit crisis of the past 18 months.&lt;/p&gt;

&lt;p&gt;&quot;Look at the TARP -- $700 billion legislated for the expressed purpose of buying mortgage-backed securities,&quot; Gundlach said. &quot;How many dollars actually used by TARP to buy mortgage-backed securities? Zero!&quot; he said.&lt;/p&gt;

&lt;p&gt;TARP was set up by the U.S. Treasury to buy toxic assets from banks but which ended up mostly being used to recapitalize banks with fresh equity.&lt;/p&gt;

&lt;p&gt;Investors have seen the price chief executives have paid for taking government money.&lt;/p&gt;

&lt;p&gt;Wells Fargo took $25 billion of capital last year from the government's TARP at the behest of regulators including then-Treasury Secretary Henry Paulson, but has said it did not need the money. It was one of nine original TARP recipients.&lt;/p&gt;

&lt;p&gt;Monday, Wells' chairman Richard Kovacevich criticized the U.S. for retroactively adding curbs to TARP, which he said forced the bank to cut its dividend, and called the administration's plan for stress-testing banks &quot;asinine.&quot;&lt;/p&gt;

&lt;p&gt;&quot;There's some concern that the government, being the government, can change the rules that they want, for example impose executive compensation restrictions ex-post,&quot; said Michael Feroli, economist at JPMorgan Chase in New York.&lt;/p&gt;

&lt;p&gt;&quot;Similarly on inspection rights, and a lot of hedge funds get almost paranoid about their privacy.&quot;&lt;/p&gt;

&lt;p&gt;Chris Low, chief economist at FTN Financial, added: &quot;You'd have to be crazy as a big investor to go into a partnership with the government right now, because as we've seen with TARP and AIG the government changes terms when they don't like how things work out.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Kristina Cooke and Jennifer Ablan, additional reporting by David Lawder and Megan Davies)&lt;/p&gt;</media:text>
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<title>Vatican defends pope's stand on condoms as criticism mounts</title>
<link>http://www.reuters.com/article/topNews/idUSLI43220920090318</link>
<pubDate>Wed, 18 Mar 2009 08:59:39 -0600</pubDate>
<description><![CDATA[YAOUNDE (Reuters) - The Vatican on Wednesday defended Pope Benedict's opposition to the use of condoms to stop the spread of AIDS as scientists and countries including his native Germany criticized it as unrealistic and dangerous.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090318&amp;t=2&amp;i=9077703&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Philip Pullella&lt;/p&gt;

&lt;p&gt;YAOUNDE (Reuters) - The Vatican on Wednesday defended Pope Benedict's opposition to the use of condoms to stop the spread of AIDS as scientists and countries including his native Germany criticized it as unrealistic and dangerous.&lt;/p&gt;

&lt;p&gt;Benedict, arriving in Africa, said on Tuesday that condoms &quot;increase the problem&quot; of AIDS. The comment, made to reporters aboard his plane, caused a worldwide storm of criticism.&lt;/p&gt;

&lt;p&gt;&quot;My reaction is that this represents a major step backwards in terms of global health education, is entirely counter-productive, and is likely to lead to increases in HIV infection in Africa and elsewhere,&quot; said Prof Quentin Sattentau, Professor of Immunology at Britain's Oxford University.&lt;/p&gt;

&lt;p&gt;&quot;There is a large body of published evidence demonstrating that condom use reduces the risk of acquiring HIV infection, but does not lead to increased sexual activity,&quot; he said.&lt;/p&gt;

&lt;p&gt;The Church teaches that fidelity within heterosexual marriage and abstinence are the best ways to stop AIDS.&lt;/p&gt;

&lt;p&gt;Asked about the criticism, Vatican spokesman Father Federico Lombardi said the pope was &quot;maintaining the position of his predecessors&quot;.&lt;/p&gt;

&lt;p&gt;European governments weighed in with their criticism.&lt;/p&gt;

&lt;p&gt;His native Germany, which had criticized him last month over his decision to lift the excommunication of a Holocaust-denying bishop, argued that condoms played a decisive role in saving lives in the fight against AIDS.&lt;/p&gt;

&lt;p&gt;&quot;Modern development cooperation must give access to the means for family planning to the poorest of the poor. And the use of condoms is especially part of that,&quot; Germany's health and development ministers said in a joint statement.&lt;/p&gt;

&lt;p&gt;&quot;Anything else would be irresponsible,&quot; they added.&lt;/p&gt;

&lt;p&gt;France expressed &quot;very strong concern&quot;, saying the remarks &quot;put in danger public health policy&quot;. Meanwhile, Belgium called the pope's comments &quot;dangerous doctrinaire vision&quot;.&lt;/p&gt;

&lt;p&gt;&quot;CREDENCE DISTORTED&quot;&lt;/p&gt;

&lt;p&gt;A New York Times editorial said the pope &quot;deserves no credence when he distorts scientific findings&quot; about condoms.&lt;/p&gt;

&lt;p&gt;The Vatican also says condoms can also lead to risky behavior but many contest that view.&lt;/p&gt;

&lt;p&gt;Kevin De Cock, director of the World Health Organization's HIV/AIDS department, said there is no scientific evidence showing that condom use spurs people to take more sexual risks.&lt;/p&gt;

&lt;p&gt;&quot;The guidance we give is that condoms are highly (effective) to prevent the transmission of HIV if they are used correctly and consistently,&quot; he said in a telephone interview.&lt;/p&gt;

&lt;p&gt;De Cock said abstinence and reducing the number of partners were also needed and praised faith-based groups, noting that many Catholic charities provide treatment for people with the virus in some of the poorest and most remote parts of the world.&lt;/p&gt;

&lt;p&gt;HIV, the virus that can lead to AIDS, infects 33 million people globally and has killed 25 million.&lt;/p&gt;

&lt;p&gt;Two-thirds of those infected are in Africa, analysts say.&lt;/p&gt;

&lt;p&gt;&quot;Anything that reduces AIDS on a depressed continent like Africa should be welcomed,&quot; said Adeleke Agbola, a lawyer in Nigeria, the continent's most populous nation.&lt;/p&gt;

&lt;p&gt;There were also some signs of dissent within the Church.&lt;/p&gt;

&lt;p&gt;&quot;Anyone who has AIDS and is sexually active, anyone who seeks multiple partners, must protect others and themselves,&quot; said Hans-Jochen Jaschke, Roman Catholic auxiliary bishop of Hamburg in the pope's native Germany.&lt;/p&gt;

&lt;p&gt;&quot;So, no taboo on the condom issue, but also no myths and trivialization as if these put the world in order. Condoms can protect, but men often reject them,&quot; the bishop added.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Michael Kahn in London, David Lewis in Yaounde, Tom Heneghan in Paris, Phil Stewart in Rome, Paul Carrel and Noah Barkin in Berlin, and Tume Ahemba and Kingsley Igwe in Lagos; editing by Philippa Fletcher)&lt;/p&gt;</media:text>
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<item>
<title>FACTBOX: AIG in crosshairs over bonus payments</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H46K20090318</link>
<pubDate>Wed, 18 Mar 2009 08:21:56 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Irate lawmakers are demanding the return of millions of dollars in bonus payments to employees at bailed-out insurer American International Group Inc.]]></description>
<guid isPermaLink="false" >USTRE52H46K20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - Irate lawmakers are demanding the return of millions of dollars in bonus payments to employees at bailed-out insurer American International Group Inc.&lt;/p&gt;

&lt;p&gt;Here are details on the payouts from New York Attorney General Andrew Cuomo in a letter sent to U.S. Rep. Barney Frank, chairman of the House Committee on Financial Services:&lt;/p&gt;

&lt;p&gt;* AIG distributed more than $160 million in retention payments to employees at its Financial Products unit, the subsidiary Cuomo says was &quot;principally responsible for the firm's meltdown&quot;&lt;/p&gt;

&lt;p&gt;* Cuomo's office has subpoenaed AIG for the names of bonus recipients, and provided the following figures:&lt;/p&gt;

&lt;p&gt;* Top AIG bonus recipient received more than  $6.4 million&lt;/p&gt;

&lt;p&gt;* Top seven bonus recipients received more than $4 million each&lt;/p&gt;

&lt;p&gt;* Top 10 bonus recipients received a combined $42 million&lt;/p&gt;

&lt;p&gt;* 22 individuals received bonuses of $2 million or more, and combined they received more than $72 million&lt;/p&gt;

&lt;p&gt;* 73 people received bonuses of $1 million or more&lt;/p&gt;

&lt;p&gt;* 11 recipients of &quot;retention&quot; bonuses of $1 million or more are no longer working at AIG, including one who received $4.6 million&lt;/p&gt;

&lt;p&gt;* Employment contracts with AIG bonus recipients had required most individuals' bonuses to be 100 percent of their 2007 bonuses &quot;despite obvious signs that 2008 performance would be disastrous in comparison to the year before.&quot;&lt;/p&gt;

&lt;p&gt;(Reporting by Martha Graybow, editing by Dave Zimmerman)&lt;/p&gt;</media:text>
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<title>Fed resumes meeting, focus seen on existing plans</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H3KP20090318</link>
<pubDate>Wed, 18 Mar 2009 08:12:09 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The Federal Reserve resumed a two-day meeting on Wednesday that was expected to end with a vow to do whatever it takes to turn back the U.S. economy's deep recession but no new concrete steps to do so.]]></description>
<guid isPermaLink="false" >USTRE52H3KP20090318</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090318&amp;t=2&amp;i=9073535&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Mark Felsenthal&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The Federal Reserve resumed a two-day meeting on Wednesday that was expected to end with a vow to do whatever it takes to turn back the U.S. economy's deep recession but no new concrete steps to do so.&lt;/p&gt;

&lt;p&gt;A Fed spokeswoman said the central bank's policy-setting panel resumed its meeting at 9 a.m. EDT, as scheduled. The committee was expected to outline its views on the economy and monetary policy in a statement at around 2:15 p.m.  EDT.&lt;/p&gt;

&lt;p&gt;The central bank seems certain to keep its target range for the overnight federal funds rate at zero to 0.25 percent, the level reached in December.&lt;/p&gt;

&lt;p&gt;With benchmark rates virtually at zero, the Fed has turned its focus to pumping money into stressed credit markets to try to get money flowing through the economy -- a policy Fed chief Ben Bernanke has dubbed &quot;credit easing.&quot;&lt;/p&gt;

&lt;p&gt;&quot;We've seen some progress in the financial markets,&quot; Bernanke said in an interview on CBS that aired on Sunday. &quot;But until we get that stabilized and working normally, we're not going to see recovery.&quot;&lt;/p&gt;

&lt;p&gt;Financial markets will eye the Fed's statement closely for any clues on further steps officials might take to restart credit flows.&lt;/p&gt;

&lt;p&gt;After its last meeting in January, the Fed said it was prepared to buy longer-term U.S. government debt if it believed that would help unjam private credit markets.&lt;/p&gt;

&lt;p&gt;But with yields on U.S. Treasuries still extremely low, most analysts think the Fed will bide its time to see if other steps it is taking are effective.&lt;/p&gt;

&lt;p&gt;&quot;The Fed is not going to push the notion of buying U.S. Treasuries despite some expectations in the markets for that. If they were to do such thing, they would have done so already,&quot; said Dustin Reid, director of foreign exchange strategy at RBS Greenwich Capital Markets in Chicago.&lt;/p&gt;

&lt;p&gt;&quot;If they do announce a significant quantitative easing program and using Treasuries instead of mortgage-backed securities, that would take the market by surprise.&quot;&lt;/p&gt;

&lt;p&gt;Instead, Fed officials are expected to focus on two marquee programs they have unveiled to spur the economy.&lt;/p&gt;

&lt;p&gt;In one program that could grow to $1 trillion, the Fed will begin lending next week against securities backed by auto, credit card, student and small business loans.&lt;/p&gt;

&lt;p&gt;In the other, the central bank has committed to buy $600 billion in debt and securities issued by the government-backed mortgage finance agencies, a program officials have already credited for driving down mortgage rates.&lt;/p&gt;

&lt;p&gt;The U.S. economy shrank at a 6.2 percent annual rate in the fourth quarter, the deepest contraction since early 1982, and the unemployment rate has shot to a 25-year high of 8.1 percent.&lt;/p&gt;

&lt;p&gt;However, there have been some signs recently that consumer spending is stabilizing after a big drop and that the battered housing sector is beginning to heal.&lt;/p&gt;

&lt;p&gt;(Reporting by Mark Felsenthal; Editing by Neil Stempleman)&lt;/p&gt;</media:text>
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<title>U.S. inflation rises, trade gap shrinks sharply</title>
<link>http://www.reuters.com/article/topNews/idUSN1834211720090318</link>
<pubDate>Wed, 18 Mar 2009 07:28:10 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. inflation rose in February on higher gasoline and apparel prices, government data showed on Wednesday, indicating some pricing power in the recession-hit economy and easing fears of deflation for now.]]></description>
<guid isPermaLink="false" >USN1834211720090318</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090318&amp;t=2&amp;i=9073900&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Lucia Mutikani&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - U.S. inflation rose in February on higher gasoline and apparel prices, government data showed on Wednesday, indicating some pricing power in the recession-hit economy and easing fears of deflation for now.&lt;/p&gt;

&lt;p&gt;In another snapshot of the U.S. economy, the country's current account deficit for the fourth quarter contracted sharply as imports fell more rapidly than exports.&lt;/p&gt;

&lt;p&gt;But it was the Labor Department's Consumer Price Index that attracted the most attention. Analysts said that while the CPI data showed the risk of a persistent, broad decline in prices was fading, it did not indicate a resurgence of inflation, given the deep slump the economy is in.&lt;/p&gt;

&lt;p&gt;In February, the overall CPI rose 0.4 percent, the biggest monthly gain since last July, and above January's gain of 0.3 percent.&lt;/p&gt;

&lt;p&gt;&quot;Kiss the idea of deflation goodbye. The brief foray into declining consumer prices over the winter seems to be over and done with,&quot; said Howard Simons, strategist at Bianco Research in Chicago.&lt;/p&gt;

&lt;p&gt;About two-thirds of the rise in February's inflation rate came from the 8.3 percent jump in gasoline prices.&lt;/p&gt;

&lt;p&gt;Compared with a year ago, consumer prices rose 0.2 percent after being flat in January. Core CPI, which excludes volatile food and energy prices, gained 0.2 percent in February, after rising at the same rate the prior month.&lt;/p&gt;

&lt;p&gt;The Federal Reserve's announcement that it would buy up to $300 billion worth of long-term U.S. Treasuries to keep interest rates low and help revive an economy now in its 15th month of recession ignited a brisk rally in U.S. stocks and the prices of government bonds. Major U.S. stock indexes ended the session with gains of about 1 percent to 2 percent.&lt;/p&gt;

&lt;p&gt;This will be the first time since the period from 1961 to 1965 that the Fed has bought longer-term U.S. Treasury securities.&lt;/p&gt;

&lt;p&gt;The yield on the benchmark 10-year U.S. Treasury note had its biggest one-day drop since the stock market crash in October 1987. In late afternoon, the 10-year note's price was up 14/32, while its yield had tumbled to 2.51 percent from 3.01 percent at Tuesday's close.&lt;/p&gt;

&lt;p&gt;But the U.S. dollar sank to a two-year low versus the euro.&lt;/p&gt;

&lt;p&gt;Analysts said the Fed's latest move effectively left real interest rates negative across the board. The Fed kept the target for its benchmark overnight fed funds rate unchanged in a zero to 0.25 percent range.&lt;/p&gt;

&lt;p&gt;APPAREL AND NEW VEHICLE PRICES JUMP&lt;/p&gt;

&lt;p&gt;The February CPI data showed apparel prices up 1.3 percent, the biggest rise since a 1.5 percent gain in March 1990. Also contributing to the increase in the core inflation rate were new vehicle prices, up 0.8 percent, the largest advance since November 2004.&lt;/p&gt;

&lt;p&gt;Compared with a year ago, core CPI rose 1.8 percent, creeping up from 1.7 percent in January, but still below the Fed's comfort zone of 2 percent.&lt;/p&gt;

&lt;p&gt;Some analysts believe these gains in inflation were unlikely to be sustained, considering the economic slump and the accompanying surge in unemployment that is undermining consumer demand. They still see deflation as a risk.&lt;/p&gt;

&lt;p&gt;&quot;Even with energy prices having flattened out, the deflation risk is real,&quot; said David Greenlaw, an economist at Morgan Stanley in New York.&lt;/p&gt;

&lt;p&gt;&quot;Unless there is a powerful V-shaped recovery, which we deem highly unlikely, it is going to be several years before there is any legitimate reason to be concerned about a resumption of inflation risk.&quot;&lt;/p&gt;

&lt;p&gt;Deflation is a broad-based decline in prices that can undercut an economy by leading consumers to hold off purchases in the hopes of even lower prices.&lt;/p&gt;

&lt;p&gt;But some economists argue that the Fed's liquidity injections are expanding the money supply base and may ignite inflation going forward if the central bank does not deploy adequate measures to withdraw that money from the system once the economy recovers.&lt;/p&gt;

&lt;p&gt;&quot;The shoveling of money into the system eventually can start to push prices higher,&quot; said Bianco Research's Simons.&lt;/p&gt;

&lt;p&gt;&quot;Once the economy recovers, we will have some real problems because at that point, the banking system will start to turn this monetary base into credit and will lead to an explosion of money supply.&quot;&lt;/p&gt;

&lt;p&gt;IMPORTS AND MORTGAGE RATES FALL&lt;/p&gt;

&lt;p&gt;The anemic U.S. economy is causing a slump in domestic demand, which is crimping the appetite for imports.&lt;/p&gt;

&lt;p&gt;Data from the Commerce Department showed the U.S. current account deficit for the fourth quarter contracted sharply to $132.8 billion -- the smallest since 2003's final quarter -- from $181.3 billion in the third quarter of 2008.&lt;/p&gt;

&lt;p&gt;The current account, which covers goods, services and income transfers, is the broadest measure of total U.S. trade with the rest of the world.&lt;/p&gt;

&lt;p&gt;The fourth-quarter current account deficit equaled 3.7 percent of gross domestic product, down from 5.0 percent in the third quarter, and the lowest since 3.4 percent in 2001's fourth quarter.&lt;/p&gt;

&lt;p&gt;Earlier on Wednesday, the Mortgage Bankers Association reported that U.S. mortgage applications surged in the latest week, driven by a spike in demand for refinancing as the average rate on a 30-year fixed-rate home loan fell to 4.89 percent, matching a record low.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Doug Palmer in Washington and Lynn Adler in New York; Editing by Jan Paschal)&lt;/p&gt;</media:text>
</item>
<item>
<title>U.S. mortgage applications spike on refinance demand</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H2O220090318</link>
<pubDate>Wed, 18 Mar 2009 07:20:35 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - U.S. mortgage applications surged in the latest week, driven by a spike in demand for refinancing as the average rate on 30-year fixed-rate home loans fell, the Mortgage Bankers Association said on Wednesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;NEW YORK (Reuters) - U.S. mortgage applications surged in the latest week, driven by a spike in demand for refinancing as the average rate on 30-year fixed-rate home loans fell, the Mortgage Bankers Association said on Wednesday.&lt;/p&gt;

&lt;p&gt;Refinancing applications jumped 30 percent in the week ended March 13 as the borrowing rate dipped 0.07 percentage point to 4.89 percent, tying the record low reached in early January in a survey that dates to 1990.&lt;/p&gt;

&lt;p&gt;The MBA's market index, which includes both purchase and refinance loans, jumped 21.2 percent to 876.9, the highest since mid-January.&lt;/p&gt;

&lt;p&gt;But purchase applications rose just 1.5 percent last week to 257.1, a one-month high.&lt;/p&gt;

&lt;p&gt;The Mortgage Bankers Association said its seasonally adjusted refinancing applications index jumped 29.6 percent in the week ended March 13 to 4,497.6, also the highest level since mid-January.&lt;/p&gt;

&lt;p&gt;Home loan rates have fallen as the government has purchased more than $250 billion of mortgage-related assets and announced unprecedented steps to stabilize the deepest housing slump since the Great Depression.&lt;/p&gt;

&lt;p&gt;A year ago, the average rate on a 30-year mortgage was closer to 6 percent.&lt;/p&gt;

&lt;p&gt;The Federal Reserve purchases of mortgage-related assets is nearing the half-way mark targeted by the end of June to help cut mortgage costs and revive housing. The programs are widely expected to be expanded to bring borrowing costs down, stimulate purchases and help struggling homeowners to refinance and avert foreclosure.&lt;/p&gt;

&lt;p&gt;Demand for purchases has been lagging refinancing applications. While homeowners are often compelled to cut current costs, worries about job loss or hopes that prices will cheapen further have keep many potential buyers at bay.&lt;/p&gt;

&lt;p&gt;Refinancings requests represented about 73 percent of all mortgage applications last week.&lt;/p&gt;

&lt;p&gt;(Reporting by Lynn Adler; Editing by Leslie Adler)&lt;/p&gt;</media:text>
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<item>
<title>Higher gas, clothing prices push up CPI</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H3BC20090318</link>
<pubDate>Wed, 18 Mar 2009 07:13:38 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. consumer prices rose in February on higher gasoline and apparel prices, government data showed on Wednesday, calming fears of deflation for now.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. consumer prices rose in February on higher gasoline and apparel prices, government data showed on Wednesday, calming fears of deflation for now.&lt;/p&gt;

&lt;p&gt;The Labor Department said its closely watched Consumer Price Index rose 0.4 percent, the biggest monthly gain since last July, after increasing 0.3 percent in January. Analysts polled by Reuters had forecast headline CPI rising 0.3 percent.&lt;/p&gt;

&lt;p&gt;Core prices, which exclude food and energy items, increased 0.2 percent in February after rising by the same margin the prior month. That compared to analysts' prediction for a 0.1 percent increase.&lt;/p&gt;

&lt;p&gt;On a year-over-year basis, consumer prices were up 0.2 percent after being flat in January. Energy prices surged 3.3 percent in February, also the largest monthly increase since July last year, while gasoline was up 8.3 percent.&lt;/p&gt;

&lt;p&gt;However, compared to the same period last year, energy prices were down 18.5 percent, the department said.&lt;/p&gt;

&lt;p&gt;Apparel prices jumped 1.3 percent, the biggest rise since a 1.5 percent gain in March 1990.&lt;/p&gt;

&lt;p&gt;(Reporting by Lucia Mutikani, Editing by Andrea Ricci)&lt;/p&gt;</media:text>
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<title>U.S. orders non-emergency workers out of Madagascar</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H34P20090318</link>
<pubDate>Wed, 18 Mar 2009 06:12:15 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The U.S. State Department has ordered non-emergency personnel at the U.S. Embassy in Madagascar and all family members to leave because of escalating civil unrest.]]></description>
<guid isPermaLink="false" >USTRE52H34P20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - The U.S. State Department has ordered non-emergency personnel at the U.S. Embassy in Madagascar and all family members to leave because of escalating civil unrest.&lt;/p&gt;

&lt;p&gt;In a warning issued late on Tuesday, the department also warned U.S. citizens of the risks of traveling to the Indian Ocean nation and recommended against going there.&lt;/p&gt;

&lt;p&gt;&quot;While American citizens have not been targeted to date, the Department of State has ordered the departure of non-emergency personnel and family members at the U.S. Embassy in Antananarivo due to the ongoing unrest and security concerns,&quot; the department said in a statement.&lt;/p&gt;

&lt;p&gt;The statement told U.S. citizens already in Madagascar to consider the dangers of staying and &quot;maintain a high level of vigilance and a low profile.&quot;&lt;/p&gt;

&lt;p&gt;The worst unrest in years in Madagascar has killed at least 135 people, devastated a $390 million-a-year tourism sector and worried multinationals with investments in mining and oil industries.&lt;/p&gt;

&lt;p&gt;(Editing by Bill Trott)&lt;/p&gt;</media:text>
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<title>Syria's Assad praises Obama, wants meeting</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H2RK20090318</link>
<pubDate>Wed, 18 Mar 2009 05:28:42 -0600</pubDate>
<description><![CDATA[ROME (Reuters) - Syrian President Bashar al-Assad said he hoped to meet U.S. President Barack Obama and expressed his willingness to help mediate between the West and Iran.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;ROME (Reuters) - Syrian President Bashar al-Assad said he hoped to meet U.S. President Barack Obama and expressed his willingness to help mediate between the West and Iran.&lt;/p&gt;

&lt;p&gt;Assad, in an interview with Italian newspaper La Repubblica published on Wednesday, also confirmed he was ready to resume peace negotiations with Israel but expressed concern about the political climate there.&lt;/p&gt;

&lt;p&gt;&quot;With the pullout in Iraq, the will for peace, the closing of Guantanamo, (Obama) has shown himself to be a man of his word,&quot; he said, referring to the U.S. naval base in Cuba where hundreds of suspected Islamist militants have been held, most for years without trial.&lt;/p&gt;

&lt;p&gt;But Assad said it was too soon to speak of a &quot;historic shift&quot; in U.S. foreign policy.&lt;/p&gt;

&lt;p&gt;Asked about meeting Obama, Assad said: &quot;Yes, in principle. It would be a very positive sign. But I'm not looking for a photo opportunity. I want to see him, to talk.&quot;&lt;/p&gt;

&lt;p&gt;Obama has been reviewing U.S. policy toward Syria, including whether to return an ambassador to Damascus. Earlier this month he sent two envoys to Damascus earlier this month, where in a change of tone after years of animosity with Syria, one of the officials said they had found &quot;a lot of common ground.&quot;&lt;/p&gt;

&lt;p&gt;Washington pulled its ambassador out of Syria after the 2005 assassination of former Lebanese Prime Minister Rafik al-Hariri.&lt;/p&gt;

&lt;p&gt;Syria, which is on the U.S. list of state sponsors of terrorism, denies any involvement in Hariri's murder but the United States pointed fingers at Damascus.&lt;/p&gt;

&lt;p&gt;Assad said the United States under Obama could play an important role bringing peace to the region. Although he voiced confidence about the growing diplomatic roles of countries like Turkey and France in the area, he said &quot;only Washington can press Israel.&quot;&lt;/p&gt;

&lt;p&gt;PEACE TALKS&lt;/p&gt;

&lt;p&gt;Assad said he was willing to resume negotiations with Israel but expressed concerned about the ascent of Benjamin Netanyahu and his right-wing Likud party after last months' election.&lt;/p&gt;

&lt;p&gt;&quot;I'm not concerned about Netanyahu's thinking, but of the return of the right-wing of Israeli society, which Netanyahu's rise reflects. This is the biggest obstacle to peace.&quot;&lt;/p&gt;

&lt;p&gt;Israel and Syria last held direct peace talks in 2000 in the United States, failing to reach a deal on the future of the Israeli-occupied Golan Heights, which Damascus wants returned.&lt;/p&gt;

&lt;p&gt;Since mid-2008, Israel and Syria have held off-and-on indirect negotiations in Turkey.&lt;/p&gt;

&lt;p&gt;On Iran, which Washington believes wants to build nuclear weapons, Assad said: &quot; ... with Iran, I'm ready to mediate.&quot;&lt;/p&gt;

&lt;p&gt;He urged the West to come up with concrete proposals for Tehran, which he said was &quot;an important country, like it or not.&quot; Iran says its nuclear program is for peaceful purposes.&lt;/p&gt;

&lt;p&gt;Of Iran's role in Iraq, he said Tehran's influence should not be seen as negative if based on &quot;reciprocal respect&quot; and drew distinction between influence and interference.&lt;/p&gt;

&lt;p&gt;&quot;If instead we're talking about facilitating dialogue with Tehran, a concrete proposal is needed to give to that government. Until now, I've only received an invitation to play a role. Agreed, but that's not enough,&quot; Assad said.&lt;/p&gt;

&lt;p&gt;&quot;What's lacking is a plan, rules and specific mechanisms to put forward to Tehran.&quot;&lt;/p&gt;

&lt;p&gt;(Writing by Phil Stewart; Editing by Matthew Jones)&lt;/p&gt;</media:text>
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<title>Rio expects no problems from new Madagascar government</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H2SZ20090318</link>
<pubDate>Wed, 18 Mar 2009 05:26:49 -0600</pubDate>
<description><![CDATA[LONDON (Reuters) - Mining group Rio Tinto, Madagascar's biggest foreign investor, said it foresaw no problems for its titanium mining operation and license after the opposition took power through the military.]]></description>
<guid isPermaLink="false" >USTRE52H2SZ20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Eric Onstad&lt;/p&gt;

&lt;p&gt;LONDON (Reuters) - Mining group Rio Tinto, Madagascar's biggest foreign investor, said it foresaw no problems for its titanium mining operation and license after the opposition took power through the military.&lt;/p&gt;

&lt;p&gt;&quot;We have no reason to believe that the change of regime will have an adverse influence on our operation,&quot; spokesman Nick Cobban said in an e-mail in response to an enquiry.&lt;/p&gt;

&lt;p&gt;&quot;We believe the mine already has and will continue to bring positive benefits to the country and that the terms of the mining concession are equitable to all parties.&quot;&lt;/p&gt;

&lt;p&gt;Rio, the world's third biggest mining group by market value, was locked in a dispute with the former government in Guinea, which withdrew Rio's rights to about half of its huge Simandou iron ore project.&lt;/p&gt;

&lt;p&gt;A new military government in Guinea has said it wants to revise the mining code and clean up corruption, but no details have emerged.&lt;/p&gt;

&lt;p&gt;Rio's mining operation in the south of Madagascar which cost $1.2 billion to build, was the largest ever foreign investment in Madagascar.&lt;/p&gt;

&lt;p&gt;Cobban said the World Bank, which helped provide finance for a port near the mine, has said it does not support renegotiation of Rio's mining concession.&lt;/p&gt;

&lt;p&gt;Operations have been normal at the mine, which is far from the capital, the main focus of anti-government strikes and protests that killed at least 135 people on the Indian Ocean island.&lt;/p&gt;

&lt;p&gt;Rio launched production in January at the mine, of which it owns 80 percent and the government the rest. Its main product is titanium, a white pigment used in paint and other coatings, paper, plastics and cosmetics.&lt;/p&gt;

&lt;p&gt;There was no immediate comment from oil companies operating in the country, which are involved in the exploration and appraisal stages in their investments. None is producing commercial quantities of oil.&lt;/p&gt;

&lt;p&gt;Oil companies present in Madagascar include Total and Tullow Oil, which both operate onshore oil blocks, and Sterling Energy co-owns offshore blocks with Exxon Mobil.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Tom Bergin; Editing by David Cowell)&lt;/p&gt;</media:text>
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<title>IBM in talks to buy Sun Microsystems: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1GS20090318</link>
<pubDate>Wed, 18 Mar 2009 05:23:10 -0600</pubDate>
<description><![CDATA[BANGALORE (Reuters) - IBM is in talks to buy Sun Microsystems Inc for at least $6.5 billion, The Wall Street Journal reported, in a deal that could bolster their computer server products against rivals such as Hewlett-Packard Co.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By S. John Tilak&lt;/p&gt;

&lt;p&gt;BANGALORE (Reuters) - IBM is in talks to buy Sun Microsystems Inc for at least $6.5 billion, The Wall Street Journal reported, in a deal that could bolster their computer server products against rivals such as Hewlett-Packard Co.&lt;/p&gt;

&lt;p&gt;That would translate into a premium of about 100 percent over Sun's Nasdaq closing price Tuesday of $4.97 a share, the paper said, citing people familiar with the matter.&lt;/p&gt;

&lt;p&gt;Sun, which was not immediately available for comment, has long been cited as a takeover target for International Business Machines Corp, HP, Dell Inc or Cisco Systems Inc, which this week unveiled its plan to start making blade servers that power corporate computer networks.&lt;/p&gt;

&lt;p&gt;But bankers and analysts have also said the challenge of valuing Sun's intertwined software, hardware and services businesses could put off potential buyers. The company has never fully recovered from the dot-com bubble burst in the early 2000s, when demand for its high-end servers cratered.&lt;/p&gt;

&lt;p&gt;&quot;It makes sense in an industry consolidation view, but looking at Sun's performance over the last couple of years, it's not one of my top picks for IBM to buy,&quot; said Jyske Bank analyst Robert Jakobsen, speaking from Denmark.&lt;/p&gt;

&lt;p&gt;&quot;Having said that, there's clearly a huge synergy combining these two companies,&quot; he said.&lt;/p&gt;

&lt;p&gt;&quot;It will lessen the competitive pressure within the data center,&quot; he said, adding, &quot;The market hasn't been kind to Sun Microsystems in the last 12 months. So it's not an expensive acquisition in my view.&quot;&lt;/p&gt;

&lt;p&gt;An IBM spokesman in Bangalore declined to comment. The U.S. representatives of the company, which had nearly $13 billion in cash at the end of 2008, were not immediately available.&lt;/p&gt;

&lt;p&gt;The Frankfurt shares of Sun rose 54 percent after The Wall Street Journal's online report, which said the company had approached a number of large tech companies in the hopes of being acquired. HP declined the offer, the paper said, citing a person briefed on the matter.&lt;/p&gt;

&lt;p&gt;The paper said a deal with IBM could happen as early as this week, but that talks could also fall apart. If IBM buys Sun, it would be the company's largest acquisition since it bought Canadian software maker Cognos for about $5 billion in January 2008.&lt;/p&gt;

&lt;p&gt;GLOBAL IT SPENDING CUTS&lt;/p&gt;

&lt;p&gt;IBM was the world's largest maker of servers in the fourth quarter, with a market share of 36.3 percent, according to market researcher IDC. HP came next with 29.0 percent, followed by Dell, 10.6 percent; Sun, 9.3 percent; and Fujitsu, 4.2 percent.&lt;/p&gt;

&lt;p&gt;The top five server vendors all posted declines in their fourth-quarter server revenue, hurt by pullbacks in corporate spending on technology due to the weak global economy.&lt;/p&gt;

&lt;p&gt;Cisco's new foray into the server market could trigger a wave of mergers and acquisitions, analysts have said, citing data equipment maker Brocade Communications Systems Inc, infrastructure software maker Citrix Systems Inc and niche network optimization companies, such as Blue Coat Systems Inc and Riverbed Technology Inc, as possible targets.&lt;/p&gt;

&lt;p&gt;&quot;This is about the fact that IBM wants to become a one-stop shop for all IT related offerings, whether it is hardware, software services or solutions,&quot; Avinash Vashistha, chief executive at IT consultancy Tholons Inc, said of IBM's reported interest in Sun. &quot;They have been executing this strategy for the last few years and with the Sun deal, they will only accelerate that move.&quot;&lt;/p&gt;

&lt;p&gt;Sun, whose name stands for Stanford University Network, rose to prominence in the 1990s when start-ups flocked to its high-end computers, which run on its Solaris operating system and have been widely used in the financial services industry.&lt;/p&gt;

&lt;p&gt;When the Internet bubble burst in 2000-01, funding for start-ups dried up along with much of the demand for Sun's computers. Sun tried to reinvent itself by acquiring companies and expanding production of Linux-based computers, which tend to be cheaper. But that failed to revive its stock price.&lt;/p&gt;

&lt;p&gt;Sun stock is down 71 percent in the last 52 weeks, a far cry from an all-time high of $258.75 that it touched during the dot-com boom.&lt;/p&gt;

&lt;p&gt;The company -- which is shedding up to 6,000 jobs, or 18 percent of its workforce -- reported a net loss of $209 million for its second quarter ended December 28, compared with year-earlier net profit of $260 million. Revenue fell 11 percent to $3.22 billion.&lt;/p&gt;

&lt;p&gt;Analysts said technology companies were looking to acquisitions as organic growth was difficult given the poor economy.&lt;/p&gt;

&lt;p&gt;&quot;Plus, valuations are also very cheap now,&quot; said Tarun Sisodia, a technology sector analyst with Indian brokerage Anand Rathi Financial Services. &quot;It's a good time to pick up the companies that can contribute to your growth in these difficult times.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by Ajay Kamalakaran and Sumeet Chatterjee; Writing by Tiffany Wu and Hans Peters; Editing by Lisa Von Ahn)&lt;/p&gt;</media:text>
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<title>Exiled Madagascar politician urges new elections</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H2C520090318</link>
<pubDate>Wed, 18 Mar 2009 04:22:12 -0600</pubDate>
<description><![CDATA[PARIS (Reuters) - Madagascar's new leader Andry Rajoelina must move more quickly to hold elections and restore legitimate government in the huge Indian Ocean island, a senior exiled opposition politician said.]]></description>
<guid isPermaLink="false" >USTRE52H2C520090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By James Mackenzie&lt;/p&gt;

&lt;p&gt;PARIS (Reuters) - Madagascar's new leader Andry Rajoelina must move more quickly to hold elections and restore legitimate government in the huge Indian Ocean island, a senior exiled opposition politician said.&lt;/p&gt;

&lt;p&gt;Pierrot Rajaonarivelo, a former deputy prime minister and head of one of Madagascar's main opposition parties, said he had supported Rajoelina and welcomed the removal of President Marc Ravalomanana.&lt;/p&gt;

&lt;p&gt;But he criticized as a coup the way in which the former mayor of the capital Antananarivo took power with the army's backing on Tuesday.&lt;/p&gt;

&lt;p&gt;&quot;In my opinion, what has happened has not always respected the legality of things, so what we have today is an insurrectional government, a coup d'etat,&quot; he told Reuters late on Tuesday.&lt;/p&gt;

&lt;p&gt;Rajaonarivelo is an ally of former president Didier Ratsiraka, and both have lived in exile in Paris since a 2002 crisis that brought Ravalomanana to power. Rajaonarivelo was prevented from running in the 2006 election after his return to Madagascar was blocked by the former government.&lt;/p&gt;

&lt;p&gt;He said he had been in contact with Rajoelina during the months-long stand-off that led to the ousting of the president.&lt;/p&gt;

&lt;p&gt;&quot;I'm with Rajoelina, we've met,&quot; he said. &quot;We have a sort of deal and I'm among the people behind him but I think as far as his approach is concerned, there's a bit of amateurism there.&quot;&lt;/p&gt;

&lt;p&gt;Rajaonarivelo said that any solution would have to include opposition politicians exiled after 2002.&lt;/p&gt;

&lt;p&gt;Rajoelina, 34, has promised to hold elections within two years but Rajaonarivelo said he should move much more quickly.&lt;/p&gt;

&lt;p&gt;&quot;That's too long! Why and for what reason is he taking 24 months as his starting point?&quot; he said, adding that the constitutional court should have been involved by declaring the presidency vacant and regulating a handover of power.&lt;/p&gt;

&lt;p&gt;Under the constitution, the head of the upper house of parliament should have taken over and held elections within two months and Rajaonarivelo said that by flouting the law, Rajoelina risked creating further turmoil.&lt;/p&gt;

&lt;p&gt;&quot;If we do this kind of thing every time the government is removed, that country will never have any stability,&quot; he said.&lt;/p&gt;

&lt;p&gt;The African Union has already called for the constitution to be respected and there has been criticism from both the European Union and the United States over Ravalomanana's ouster.&lt;/p&gt;

&lt;p&gt;&quot;The international community has to intervene to ensure legitimacy in the transfer of power,&quot; Rajaonarivelo said.&lt;/p&gt;

&lt;p&gt;(Editing by Francois Murphy and Mark Trevelyan)&lt;/p&gt;</media:text>
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<title>Q+A: New start for Madagascar under Rajoelina</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H2CA20090318</link>
<pubDate>Wed, 18 Mar 2009 04:22:12 -0600</pubDate>
<description><![CDATA[ANTANANARIVO (Reuters) - Madagascar's new president, Andry Rajoelina, began his first day in power on Wednesday seeking to shore up support at home and answer some disquiet abroad over the manner of his rise.]]></description>
<guid isPermaLink="false" >USTRE52H2CA20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Richard Lough&lt;/p&gt;

&lt;p&gt;ANTANANARIVO (Reuters) - Madagascar's new president, Andry Rajoelina, began his first day in power on Wednesday seeking to shore up support at home and answer some disquiet abroad over the manner of his rise.&lt;/p&gt;

&lt;p&gt;Below are some questions and answers on the situation:&lt;/p&gt;

&lt;p&gt;WHAT'S THE LATEST?&lt;/p&gt;

&lt;p&gt;* Rajoelina, 34, was meeting ministers to kick-start his transitional administration. His priorities are to raise locals' standards of living, ensure legitimacy in the eyes of the world, and control some pockets of dissent in the military.&lt;/p&gt;

&lt;p&gt;* The whereabouts of his predecessor, Marc Ravalomanana, 59, remained a secret. He has sent some family abroad.&lt;/p&gt;

&lt;p&gt;* There were some looting at the palace where Ravalomanana resigned on Tuesday.&lt;/p&gt;

&lt;p&gt;* The opposition was planning a major celebration on Wednesday in the capital's May 13 square, the focus of weeks of anti-government demonstrations by Rajoelina supporters.&lt;/p&gt;

&lt;p&gt;* South Africa joined the African Union (AU) in denouncing what it called the un-constitutional transfer of power.&lt;/p&gt;

&lt;p&gt;WHO ARE THE MAJOR PLAYERS?&lt;/p&gt;

&lt;p&gt;* Rajoelina had accused Ravalomanana of graft and demanded he step down. To his fans, Rajoelina represents a youthful and charismatic new breed of politician on the world's fourth largest island. His critics accuse the ex-disc jockey of being a maverick and a front man for more seasoned opposition figures.&lt;/p&gt;

&lt;p&gt;* Rajoelina, a former mayor of the capital, dismisses that and say he is only acting on the people's call for change.&lt;/p&gt;

&lt;p&gt;* Ravalomanana is a self-made millionaire who started off hawking yoghurt from a bicycle in the city's backstreets. He came to power in 2002 after disputed election results triggered eight months of civil unrest that hammered the economy. The incumbent, Didier Ratsiraka, fled into exile in France.&lt;/p&gt;

&lt;p&gt;* Many locals say Ravalomanana had since seemed to lose touch with his roots and most of the island's 20 million people.&lt;/p&gt;

&lt;p&gt;HOW DID THIS START?&lt;/p&gt;

&lt;p&gt;* Political tensions began rising in December after the government closed down Rajoelina's privately-owned TV station, Viva. It aired an interview with former President Ratsiraka.&lt;/p&gt;

&lt;p&gt;* A strong groundswell of resentment toward Ravalomanana already existed after he bought a new $60 million jet last year -- while 70 percent of locals live on less than $2 a day.&lt;/p&gt;

&lt;p&gt;* Dissatisfaction mounted when South Korean industrial giant Daewoo said it would lease 1.3 million hectares of prime land to meet its own food security needs. Rajoelina was a lead critic.&lt;/p&gt;

&lt;p&gt;* Since the opposition leader launched a campaign of strikes and demonstrations in late January, at least 135 people have been killed, many of them looters who died in a burning shop.&lt;/p&gt;

&lt;p&gt;HOW HAS THIS AFFECTED THE ECONOMY?&lt;/p&gt;

&lt;p&gt;* The violence has battered the $390 million-a-year tourism sector. Private operators reported close to 100 percent cancellation rates for early 2009 and warned the whole year would be a write-off without a quick political solution.&lt;/p&gt;

&lt;p&gt;* Madagascar's major foreign investors -- including Total, Rio Tinto and Sherritt International -- have kept quiet during the crisis. The troubles were localized enough not to affect most mining operations, which are well outside the capital.&lt;/p&gt;

&lt;p&gt;* Madagascar has enjoyed steady growth in recent years thanks to booming oil and mineral exploration sectors. Companies are looking to extract cobalt, nickel, gold, uranium, coal and limonite.&lt;/p&gt;

&lt;p&gt;WHAT HAPPENS NEXT?&lt;/p&gt;

&lt;p&gt;* Rajoelina may have to face some opposition within the military, most of which backed him in the power struggle. The risk of civil war seems to have passed, and the top brass in the armed forces appear to be quashing any dissent for now.&lt;/p&gt;

&lt;p&gt;* Rajoelina will also have to contend with big challenges at home and abroad. His supporters want to see quick action to address widespread poverty, while he will have to soothe some in the international community who question his route to power.&lt;/p&gt;

&lt;p&gt;* International groups like the European Union and African Union routinely condemn non-democratic transfers of power and can impose sanctions or cut aid to offenders. Some analysts say this would only be likely to be short-term, given Madagascar's high poverty levels, and that Ravalomanana's resignation gives donors a legal footing for relations with the new government.&lt;/p&gt;

&lt;p&gt;* Rajoelina also needs to change the law. At 34, he is six years too young to be president under the current constitution.&lt;/p&gt;</media:text>
</item>
<item>
<title>NATO says 4,000 extra troops needed for Afghan poll</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1XW20090318</link>
<pubDate>Wed, 18 Mar 2009 04:06:30 -0600</pubDate>
<description><![CDATA[KABUL (Reuters) - NATO's secretary-general said on Wednesday 4,000 more soldiers were needed to secure Afghanistan's presidential election in August and to make sure the vote was credible and fair.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Jonathon Burch and Sayed Salahuddin&lt;/p&gt;

&lt;p&gt;KABUL (Reuters) - NATO's secretary-general said on Wednesday 4,000 more soldiers were needed to secure Afghanistan's presidential election in August and to make sure the vote was credible and fair.&lt;/p&gt;

&lt;p&gt;Violence is at its highest level in Afghanistan since the U.S.-led invasion in late 2001 toppled the Taliban. Around 5,000 people, including more than 2,000 civilians, were killed in fighting last year alone, the United Nations has said.&lt;/p&gt;

&lt;p&gt;NATO chief Jaap de Hoop Scheffer said he wanted four more battalions in place for the August 20 election. A NATO battalion is just under 1,000 troops. There are around 70,000 foreign soldiers now in Afghanistan.&lt;/p&gt;

&lt;p&gt;The election is seen as the key test of progress in Afghanistan and the success or failure of the polls, diplomats say, will override any other events this year.&lt;/p&gt;

&lt;p&gt;The United States will send an additional 17,000 soldiers to the country over the next year and NATO commanders have also demanded member states send temporary deployments to secure the election but had not previously given numbers.&lt;/p&gt;

&lt;p&gt;Resurgent Taliban militants have managed to extend the size and scope of their attacks in recent years, prompting a stalemate and discouraging some NATO contributors from sending soldiers in areas where militants are most active.&lt;/p&gt;

&lt;p&gt;Germany, the third largest troop contributing nation in Afghanistan with around 3,500 soldiers, has already committed an extra 600 troops for the election.&lt;/p&gt;

&lt;p&gt;At an earlier news conference with Afghan President Hamid Karzai, de Hoop Scheffer said 2009 would be vital for Afghanistan and emphasized the importance of holding a fair election.&lt;/p&gt;

&lt;p&gt;&quot;Of course, these elections in a certain way ... will be a challenge, but we are there to meet this challenge,&quot; the NATO chief said.&lt;/p&gt;

&lt;p&gt;&quot;Every Afghan citizen should have the right where he or she lives, to go to the polls. If you say free, fair and credible, free means of course, free to vote for whoever you would like to vote for.&quot;&lt;/p&gt;

&lt;p&gt;According to the constitution, the election is to be held in spring but the date was postponed until August due to the Afghan winter and to give foreign troops enough time to ensure security.&lt;/p&gt;

&lt;p&gt;Karzai's term is meant to end on May 21, in line with the constitution, although he has yet to officially announce his plans for candidacy. He has led Afghanistan since the Taliban's ouster and won elections in 2004.&lt;/p&gt;

&lt;p&gt;Afghanistan had achieved a lot under his leadership, Karzai said, adding much more needed to be done, including reconciliation with Taliban-led insurgents.&lt;/p&gt;

&lt;p&gt;Karzai said he hoped to bring over those insurgents who were not allied with al Qaeda, but he did not elaborate on the process or who was involved from the government or the Taliban.&lt;/p&gt;

&lt;p&gt;U.S. President Barack Obama said recently he was open to the idea of talks with &quot;moderate&quot; Taliban but the austere Islamic movement, overthrown after the September 11 attacks for sheltering al Qaeda leaders, has shunned Obama's call and said they would continue to fight to drive out foreign forces.&lt;/p&gt;

&lt;p&gt;(Editing by Golnar Motevalli and Dean Yates)&lt;/p&gt;</media:text>
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<title>Japan to ready defense against North Korea rocket: Kyodo</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H17W20090318</link>
<pubDate>Wed, 18 Mar 2009 03:40:44 -0600</pubDate>
<description><![CDATA[SEOUL (Reuters) - Japan will clear the way for the deployment of ballistic missile interceptors as it prepares for the possibility a North Korean rocket could fall toward its territory, Kyodo news agency reported on Wednesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Jack Kim&lt;/p&gt;

&lt;p&gt;SEOUL (Reuters) - Japan will clear the way for the deployment of ballistic missile interceptors as it prepares for the possibility a North Korean rocket could fall toward its territory, Kyodo news agency reported on Wednesday.&lt;/p&gt;

&lt;p&gt;North Korea has said it intends to launch a satellite between April 4 and 8, presenting a challenge to U.S. President Barack Obama and allies in Asia who see the plan as a disguised long-range missile test.&lt;/p&gt;

&lt;p&gt;The plan has alarmed the region and prompted some airlines to say they will alter flight routes during the test period. The reclusive state stunned Tokyo with the launch of a rocket in 1998 that flew over Japan before dropping into the Pacific Ocean.&lt;/p&gt;

&lt;p&gt;Japanese law allows the shooting down of dangerous objects falling toward the country, excluding aircraft. The cabinet plans to approve preparatory steps to destroy the rocket if it falls onto Japanese territory, Kyodo said, citing government sources.&lt;/p&gt;

&lt;p&gt;South Korea's defense minister said there was a possibility the North would use the intense attention being focused on the missile launch to mount a limited attack across the border to further escalate tension on the Korean peninsula.&lt;/p&gt;

&lt;p&gt;The attack could be a naval, air or land strike anywhere along the armed border that divides the Korean peninsula, Defense Minister Lee Sang-hee told parliament in Seoul.&lt;/p&gt;

&lt;p&gt;North Korea has said it is putting a communications satellite into orbit, and has the right to do so under its space program. It has said the first stage of the rocket would splash down in the Sea of Japan, while the second would land in the Pacific.&lt;/p&gt;

&lt;p&gt;Japanese cabinet approval, which may come by the end of March, would clear the way for the deployment of ground-based Patriot Advanced Capability-3 interceptors, Kyodo said.&lt;/p&gt;

&lt;p&gt;Cabinet approval is required in Japan, where military activity is strictly limited under its pacifist constitution. A defense ministry spokesman declined to comment.&lt;/p&gt;

&lt;p&gt;Japan is also considering deploying two high-tech Aegis-equipped destroyers carrying Standard Missile-3 ballistic missile interceptors, Kyodo added.&lt;/p&gt;

&lt;p&gt;The United States, South Korea and Japan have said they see no difference between a satellite launch and a missile test because they use the same rocket, the North's Taepodong-2 with a range that could take it to Alaska.&lt;/p&gt;

&lt;p&gt;The only time the North tested the Taepodong-2 in 2006, it blew apart a few seconds after being fired. Analysts said the North appears to have made technological advances to fix flight problems and is confident of a successful launch.&lt;/p&gt;

&lt;p&gt;But analysts do not expect the United States to intercept the rocket because the launch poses no major security threat while destroying it would infuriate Pyongyang. The North has said it would consider any interception an act of war.&lt;/p&gt;

&lt;p&gt;TENSIONS OVER FACTORY&lt;/p&gt;

&lt;p&gt;Tensions have also festered between North and South Korea over a joint factory park in the North, which has blocked entry to the facility in recent days.&lt;/p&gt;

&lt;p&gt;South Korea warned it would respond with decisive action if Pyongyang again blocked access to the factory, but said it was too early to consider shutting the project.&lt;/p&gt;

&lt;p&gt;In the past week, the North has blocked movement across the heavily defended border to an industrial park run by South Korean firms in the city of Kaesong out of anger over joint military drills by South Korean and U.S. troops.&lt;/p&gt;

&lt;p&gt;&quot;If the North repeats the border traffic suspension after the end of the drills, the government will consider it a very grave situation and will take appropriate measures,&quot; Unification Minister Hyun In-taek said in Seoul without elaborating.&lt;/p&gt;

&lt;p&gt;The four-day blockade, which was lifted on Tuesday, stranded more than 400 South Korean managers in the Kaesong industrial park and nearly dried up supplies and materials for factories there, casting doubt on the prospects for a project that had been a lucrative source of income for the cash-strapped North.&lt;/p&gt;

&lt;p&gt;North Korean anger against the government in Seoul, which ended a decade of no-questions-asked aid to the North a year ago, intensified last week when South Korea and the United States began annual military drills scheduled to end on Friday.&lt;/p&gt;

&lt;p&gt;North Korea has also rejected future food aid from the United States, the State Department said on Tuesday.&lt;/p&gt;

&lt;p&gt;It said the North had informed Washington in the past few days of the decision not to accept more U.S. assistance, which would have amounted to about 330,000 tonnes before the end of May. No reason was given for the North's decision.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Chisa Fujioka in Seoul and Sue Pleming in Washington; Editing by Dean Yates)&lt;/p&gt;</media:text>
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<title>Q+A: Why is hungry North Korea refusing U.S. food aid?</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1R420090318</link>
<pubDate>Wed, 18 Mar 2009 03:40:33 -0600</pubDate>
<description><![CDATA[SEOUL (Reuters) - North Korea, which suffers from chronic food shortages and where some people are believed to be on the brink of starvation, has rejected food aid from the United States, the U.S. State Department said.]]></description>
<guid isPermaLink="false" >USTRE52H1R420090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Jack Kim&lt;/p&gt;

&lt;p&gt;SEOUL (Reuters) - North Korea, which suffers from chronic food shortages and where some people are believed to be on the brink of starvation, has rejected food aid from the United States, the U.S. State Department said.&lt;/p&gt;

&lt;p&gt;Following are some questions and answers on why Pyongyang might be doing this.&lt;/p&gt;

&lt;p&gt;WHY REFUSE FOOD?&lt;/p&gt;

&lt;p&gt;The secretive and impoverished state is deeply uncomfortable with foreign aid workers heading deep into its countryside, seeing them as potential spies or troublemakers. It has long sought to have the aid brought to central points and do the distribution itself. The United States and the U.N. World Food Program want full control over distribution to make sure the food reaches the most vulnerable and is not, as some suspect, diverted to the military.&lt;/p&gt;

&lt;p&gt;The current timing is especially sensitive, coming during joint military exercises by U.S. and South Korean troops which the North says are preparations for invasion. And early next month, Pyongyang plans to launch a long-range rocket it says is for communications purposes but which the United States says is to test a weapon that can reach its territory.&lt;/p&gt;

&lt;p&gt;Refusal of aid by the government, under a policy of self-reliance, could play well at home for leader Kim Jong-il. Kim may feel the need to demonstrate his leadership after reportedly suffering a stroke last August and is thought to be laying the groundwork for succession by one of his sons.&lt;/p&gt;

&lt;p&gt;HOW SERIOUS IS THE FOOD SHORTAGE?&lt;/p&gt;

&lt;p&gt;Even the best harvests fall 20 percent short of the basic food needs of the population of 23 million. During the 1990s, up to a million people are thought to have died from famine and even then the North spurned some food aid.&lt;/p&gt;

&lt;p&gt;South Korea's Unification Ministry estimates that the food shortage there this year will be about 1.2 million tonnes.&lt;/p&gt;

&lt;p&gt;The United Nations said in a report in December that the shortage for the year ending October 2009 will be about 836,000 tonnes, putting 8.7 million people or nearly 40 percent of the population in urgent need of food assistance.&lt;/p&gt;

&lt;p&gt;WHO ELSE COULD PROVIDE AID?&lt;/p&gt;

&lt;p&gt;South Korea was for years a major source of food, providing up to half a million tonnes of rice a year and about 300,000 tonnes of fertilizer for spring planting. But that has dried up under the year-old conservative government in Seoul, which has demanded the North mend its ways in return for aid.&lt;/p&gt;

&lt;p&gt;And Pyongyang has so far recoiled from the offer by the South's President Lee Myung-bak to discuss aid if the North makes a formal request. That, say analysts, would be a step too far for a government which paints itself as the legitimate leader of all Korea and could not be seen to beg for help from a government in the South it publicly describes as traitorous.&lt;/p&gt;

&lt;p&gt;WHAT CAN THE NORTH DO ABOUT THE PROBLEM?&lt;/p&gt;

&lt;p&gt;North Korea periodically pledges to rebuild its faltering economy and improve the quality of life for its people. It has set a 2012 target to make itself a &quot;great, prosperous and powerful nation&quot; that is self-sufficient in feeding, clothing and housing its people.&lt;/p&gt;

&lt;p&gt;In an editorial at the start of the New Year on the persistent food shortages, state media suggested &quot;improving the seed, doing double cropping and boosting potato and soya bean output and promot(ing) material and technological assistance to the rural community.&quot;&lt;/p&gt;

&lt;p&gt;Experts in the South said the isolated state, which has seen its economy decline into dire poverty, simply does not have the means to boost production significantly and cannot but rely on aid to avert mass starvation.&lt;/p&gt;

&lt;p&gt;It will have to open up to international agencies and South Korean farm experts to help set up a sustainable agricultural production base, they say.&lt;/p&gt;

&lt;p&gt;Neighboring China, the one major country the North considers an ally, does provide aid but does not publicize any details.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Kim Junghyun; Editing by Jonathan Thatcher and Paul Tait)&lt;/p&gt;</media:text>
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<title>Austria's Fritzl admits murder and enslavement</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1O220090318</link>
<pubDate>Wed, 18 Mar 2009 02:51:32 -0600</pubDate>
<description><![CDATA[ST POELTEN, Austria (Reuters) - Josef Fritzl, who fathered seven children with a daughter he imprisoned and raped in a cellar for 24 years, pleaded guilty on Wednesday to enslavement and murder, reversing his denial of the charges.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Sylvia Westall&lt;/p&gt;

&lt;p&gt;ST POELTEN, Austria (Reuters) - Josef Fritzl, who fathered seven children with a daughter he imprisoned and raped in a cellar for 24 years, pleaded guilty on Wednesday to enslavement and murder, reversing his denial of the charges.&lt;/p&gt;

&lt;p&gt;The 73-year-old Austrian, who now faces life in prison, told the court he decided he was culpable after watching his daughter Elisabeth give 11 hours of videotaped testimony about her ordeal at a closed-door hearing on Tuesday.&lt;/p&gt;

&lt;p&gt;&quot;I plead guilty to (all) the charges in the indictment,&quot; he said, including murder of a newborn son, through neglect, in the purpose-built, soundproofed cellar under his small-town home.&lt;/p&gt;

&lt;p&gt;His turnabout also altered his plea from &quot;partial&quot; to full guilt on the charge of rape. Fritzl had earlier admitted incest but denied murder and enslavement, the two gravest charges, at Monday's outset of the trial in St Poelten, west of Vienna.&lt;/p&gt;

&lt;p&gt;Defense lawyer Rudolf Mayer told reporters he was &quot;completely surprised&quot; by Fritzl's plea change but said his client may have been moved by Elisabeth's detailed statement.&lt;/p&gt;

&lt;p&gt;The trial was expected to be completed on Thursday, with sentencing the same day. The retired engineer faces life behind bars for the murder of the baby son, a twin, who died shortly after being born in the cellar in 1996.&lt;/p&gt;

&lt;p&gt;ILL INFANT NEGLECTED&lt;/p&gt;

&lt;p&gt;Responding to questions from Judge Andrea Humer, Fritzl said he should have taken seriously the fact that the infant was breathing poorly and tried to get the boy to a hospital quickly.&lt;/p&gt;

&lt;p&gt;&quot;I was hoping the little one would survive but I should have done something. I don't know why I didn't help. I just lost sight (of the issue),&quot; he said.&lt;/p&gt;

&lt;p&gt;Prosecutors said Fritzl repeatedly raped his daughter before the eyes of their children, trapped under his house in the small central town of Amstetten, using her as if she were his own property. The captive children had never seen daylight.&lt;/p&gt;

&lt;p&gt;Entering court on Wednesday, Fritzl did not hide his face behind a blue file folder, unlike on the previous two days, and again wore a mismatched, rumpled grey suit.&lt;/p&gt;

&lt;p&gt;Fritzl kept his eyes downcast or gazed straight ahead during the proceeding, as if disregarding what was going on around him. He has consulted regularly with a psychiatrist during the trial.&lt;/p&gt;

&lt;p&gt;Austrian daily Kurier reported Elisabeth had attended the trial unnoticed on Tuesday, when the media was barred from proceedings. Mayer declined to comment but said there were people in the viewing gallery whom he did not identify.&lt;/p&gt;

&lt;p&gt;Mayer testified earlier that his client cared for the daughter and children he incarcerated &quot;like a second family,&quot; providing them with schoolbooks, toys and even a Christmas tree. But Mayer also described Fritzl's crimes as &quot;monstrous.&quot;&lt;/p&gt;

&lt;p&gt;His abuses came to light last April when he took 19-year-old Kerstin, the eldest child born below ground, to hospital after she became seriously ill.&lt;/p&gt;

&lt;p&gt;Elisabeth and her six children, three of whom were incarcerated from birth, are now living in an undisclosed location under new identities.&lt;/p&gt;

&lt;p&gt;Three of the children were raised above ground by Fritzl and his wife Rosemarie after he told people that Elisabeth had abandoned them and joined a sect. Police say Rosemarie had no knowledge of her husband's actions.&lt;/p&gt;

&lt;p&gt;(Writing by Mark Heinrich; editing by Andrew Roche)&lt;/p&gt;</media:text>
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<title>FACTBOX: Madagascar's new president Rajoelina</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1K420090318</link>
<pubDate>Wed, 18 Mar 2009 01:53:00 -0600</pubDate>
<description><![CDATA[(Reuters) - Opposition leader Andry Rajoelina has taken the presidency of Madagascar after President Marc Ravalomanana stepped down following a power struggle.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Opposition leader Andry Rajoelina has taken the presidency of Madagascar after President Marc Ravalomanana stepped down following a power struggle.&lt;/p&gt;

&lt;p&gt;Here are key facts about him:&lt;/p&gt;

&lt;p&gt;* Rajoelina presents himself as the champion of a new generation of reformists. However, at just 34 and having effectively strong-armed Ravalomanana out of power, critics say his behavior resembles one of Africa's old &quot;Big Men.&quot;&lt;/p&gt;

&lt;p&gt;* A former disc jockey and nicknamed &quot;TGV&quot; after the fast French train for his rapid-fire rhetoric and charismatic personality, Rajoelina has led demonstrations against the president since the turn of the year. The protests, triggered by the closure of his Viva TV station at the end of 2008 for airing an interview with former president Didier Ratsiraka, quickly became a mass movement bent on toppling Ravalomanana.&lt;/p&gt;

&lt;p&gt;* Viewed as something of a maverick given to sweeping statements and grand claims, Rajoelina won municipal elections in 2007 as an independent, running against Ravalomanana's party. As mayor, he became one of the most ardent critics of the government, labeling it a dictatorship, but was fired on February 3 of this year by Ravalomanana at the height of the protests.&lt;/p&gt;

&lt;p&gt;* Army backing was the clinching factor in bringing Rajoelina to power this week. Analysts say, however, that he has close links with the exiled Ratsiraka's camp and may also have enjoyed the tacit support of the French government.&lt;/p&gt;

&lt;p&gt;* Rajoelina says his first and biggest challenge is to improve standards of living for the Malagasy, many of whom live on less than $2 a day. On the international stage, he will have to convince doubters of his legitimacy given his unconstitutional rise to power several years before the next presidential election was due.&lt;/p&gt;

&lt;p&gt;* Rajoelina will also have to control some dissent in the military, where diplomats say some officers opposed his rise but were quashed by more powerful voices.&lt;/p&gt;

&lt;p&gt;* He is expected to continue his predecessor's free market economic policies, welcoming foreign investors in the key mining and oil exploration sectors, while also trying to cut down on waste and put more emphasis on social policies.&lt;/p&gt;

&lt;p&gt;* Rajoelina has displayed supreme confidence throughout the months-long crisis, only disappearing into hiding once when Ravalomanana's security forces came to arrest him. At rallies, he exuded certainty that he was on the verge of power. During Tuesday's extraordinary turn of events, he actually walked into Ravalomanana's office and announced his plans as president before the military formally conferred power on him.&lt;/p&gt;

&lt;p&gt;(Reporting by Richard Lough; Writing by Andrew Cawthorne; Editing by Louise Ireland)&lt;/p&gt;</media:text>
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<title>House committee scrutinizes Merrill bonuses</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1DO20090318</link>
<pubDate>Wed, 18 Mar 2009 01:12:11 -0600</pubDate>
<description><![CDATA[(Reuters) - The chairman of the House Committee on Oversight and Government Reform has asked for records on the $3.62 billion of year-end bonuses at Merrill Lynch, to see if the panel was misled about the payments, the Wall Street Journal said.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - The chairman of the House Committee on Oversight and Government Reform has asked for records on the $3.62 billion of year-end bonuses at Merrill Lynch, to see if the panel was misled about the payments, the Wall Street Journal said.&lt;/p&gt;

&lt;p&gt;The move comes against the backdrop of widespread outrage that insurer AIG, kept alive on a U.S. government bailout of up to $180 billion, was paying its employees bonuses of $165 million.&lt;/p&gt;

&lt;p&gt;Representative Edolphus Towns made the request in letters sent Tuesday to Bank of America Corp CEO Kenneth Lewis and Raymond Calamaro, who served as outside counsel for Merrill, the paper said. Bank of America acquired Merrill on January 1.&lt;/p&gt;

&lt;p&gt;In a November 24 letter, Calamaro wrote to the committee that &quot;incentive compensation decisions for 2008 have not yet been made,&quot; and said directors would do so at year-end, the paper said.&lt;/p&gt;

&lt;p&gt;But Merrill's compensation committee had approved the 2008 bonuses in a November 11 vote, according to testimony later given to New York Attorney General Andrew Cuomo, who is conducting his own probe, the paper said.&lt;/p&gt;

&lt;p&gt;Merrill could not immediately be reached for comment by Reuters.&lt;/p&gt;

&lt;p&gt;(Reporting by S. John Tilak in Bangalore, editing by Will Waterman)&lt;/p&gt;</media:text>
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<title>Army-backed leader cements grip in Madagascar</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52F3ZT20090318</link>
<pubDate>Wed, 18 Mar 2009 00:55:33 -0600</pubDate>
<description><![CDATA[ANTANANARIVO (Reuters) - Madagascar's new president, Andry Rajoelina, celebrated and consolidated power on Wednesday after being appointed by the Indian Ocean island's military in a move which drew international disapproval.]]></description>
<guid isPermaLink="false" >USTRE52F3ZT20090318</guid>
<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090318&amp;t=2&amp;i=9074196&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Richard Lough&lt;/p&gt;

&lt;p&gt;ANTANANARIVO (Reuters) - Madagascar's new president, Andry Rajoelina, celebrated and consolidated power on Wednesday after being appointed by the Indian Ocean island's military in a move which drew international disapproval.&lt;/p&gt;

&lt;p&gt;Rajoelina, a 34-year-old former disc jockey who is now the youngest and newest president in Africa, partied with supporters in the street after meeting his ministers to plan strategy.&lt;/p&gt;

&lt;p&gt;His priorities are anti-poverty programs expected by locals, handling international concern at his ascent to power and controlling some dissent in the armed forces.&lt;/p&gt;

&lt;p&gt;&quot;We will bring about the return to a normal life, to security and above all national reconciliation, which is at the heart of democracy,&quot; he told several thousand supporters celebrating in the capital Antananarivo's May 13 square.&lt;/p&gt;

&lt;p&gt;In a boost to Rajoelina's legitimacy, Madagascar's Constitutional Court issued a statement endorsing the takeover.&lt;/p&gt;

&lt;p&gt;He is to be formally sworn in on Saturday.&lt;/p&gt;

&lt;p&gt;President Marc Ravalomanana, 59, resigned on Tuesday after most of the military backed his rival, who had led weeks of anti-government strikes and protests.&lt;/p&gt;

&lt;p&gt;The unrest killed at least 135 people, devastated the $390 million-a-year tourism sector and worried multinationals with investments in the mining and oil industries.&lt;/p&gt;

&lt;p&gt;The outcome was also a slap in the face for the African Union (AU), which has censured recent violent transfers of power that have damaged the continent's reputation with investors.&lt;/p&gt;

&lt;p&gt;Nervous of more turmoil, the U.S. embassy ordered non-essential staff and their families to leave Madagascar.&lt;/p&gt;

&lt;p&gt;Experts said Western donors' disquiet at the manner of Rajoelina's rise would probably be short-term.&lt;/p&gt;

&lt;p&gt;&quot;With so many people below the poverty line I can't see the international community abandoning Madagascar in the long run, and (Rajoelina) knows this,&quot; Lydie Boka, of Paris-based risk group StrategiCo, told Reuters.&lt;/p&gt;

&lt;p&gt;While the military was crucial in installing the opposition leader, analysts say he also has the backing of exiled former president Didier Ratsiraka and his allies. Some analysts said former colonial ruler France gave him tacit support too.&lt;/p&gt;

&lt;p&gt;Ravalomanana's whereabouts were unclear. The opposition had accused him of corruption and of losing touch with the majority of the population who live on less than $2 a day.&lt;/p&gt;

&lt;p&gt;Some of his ministers were prevented from leaving the country until the matter of money missing from central bank was settled, Rajoelina told reporters.&lt;/p&gt;

&lt;p&gt;There was a heavy military presence at the palace where Ravalomanana capitulated. A Reuters TV witness saw broken windows and furniture, as well as a crowbar lodged in the door of a safe. It was not clear whether departing presidential guards, the army or the public had ransacked the building.&lt;/p&gt;

&lt;p&gt;FRENCH CONCERN&lt;/p&gt;

&lt;p&gt;Rajoelina -- who is six years too young to be president under the constitution -- now heads a transitional government which has pledged to hold a poll within two years on the island of 20 million off Africa's southeastern coast.&lt;/p&gt;

&lt;p&gt;Pierrot Rajaonarivelo, a former deputy premier and close ally of the exiled Ratsiraka, said that was much too long.&lt;/p&gt;

&lt;p&gt;&quot;Why and for what reason is he taking 24 months as his starting point?&quot; Rajaonarivelo told Reuters in Paris. &quot;I'm among the people behind him (Rajoelina) but I think as far as his approach is concerned, there's a bit of amateurism there.&quot;&lt;/p&gt;

&lt;p&gt;France echoed that concern.&lt;/p&gt;

&lt;p&gt;&quot;The waiting period of 24 months that has been announced for the organization of new elections is too long. In this type of exceptional situation, the international community wishes to see that democracy can be expressed as rapidly as possible,&quot; the Foreign Ministry said, adding that aid flows would continue.&lt;/p&gt;

&lt;p&gt;The AU had demanded the constitution be respected scrupulously. But the fact the army refused to take over on Tuesday, as Ravalomanana had requested, means the AU may not brand it a coup, which would have meant suspending Madagascar.&lt;/p&gt;

&lt;p&gt;&quot;The fact the president let go of power offers the international community a legal footing (for relations with the new government) if it is looking for one,&quot; local constitutional law expert Jean-Erik Rakotoarisoa told Reuters.&lt;/p&gt;

&lt;p&gt;South Africa and Zambia have denounced the change of power.&lt;/p&gt;

&lt;p&gt;&quot;(Zambia) calls for the immediate suspension of the membership of Madagascar in SADC and the African Union for the return to constitutional order within the shortest possible period,&quot; Foreign Minister Kabinga Pande said.&lt;/p&gt;

&lt;p&gt;The SADC regional bloc is scheduled to meet in Swaziland on Thursday to discuss how to handle the situation.&lt;/p&gt;</media:text>
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<title>Mexico hits U.S. with tariffs over truck ban</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H1BQ20090318</link>
<pubDate>Wed, 18 Mar 2009 00:52:12 -0600</pubDate>
<description><![CDATA[MEXICO CITY (Reuters) - Mexico said on Wednesday it was imposing tariffs on U.S. imports of fruits, vegetables and household products after Washington banned Mexican trucks from U.S. roads.]]></description>
<guid isPermaLink="false" >USTRE52H1BQ20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;MEXICO CITY (Reuters) - Mexico said on Wednesday it was imposing tariffs on U.S. imports of fruits, vegetables and household products after Washington banned Mexican trucks from U.S. roads.&lt;/p&gt;

&lt;p&gt;Mexico, which says the ban violates the North American Free Trade Agreement, published a list of dozens of products subject to tariffs, including Christmas trees, sunglasses, toilet paper, pet food, ornaments and soy sauce.&lt;/p&gt;

&lt;p&gt;The Mexican government declined to give details about the tariffs, but said this week it would avoid raising prices for local consumers by excluding staples like rice, corn, wheat and beans.&lt;/p&gt;

&lt;p&gt;The economy ministry said the goods facing higher tariffs were chosen to affect as many U.S. states as possible without hurting Mexican manufacturers. Trade experts said only about 1.5 percent of U.S. exports to Mexico would be affected.&lt;/p&gt;

&lt;p&gt;Mexico is the United States' No. 3 trade partner. It is angry the U.S. Congress scrapped a pilot program this month that allowed Mexican trucks deep into the United States.&lt;/p&gt;

&lt;p&gt;Some U.S. lawmakers and truck driver unions say Mexican trucks do not meet U.S. safety standards, a charge Mexico denies.&lt;/p&gt;

&lt;p&gt;(For details of the full list of U.S. goods facing tariffs, please see pages 50 and 51 of the following document: http:/dof.gob.mx/PDF/180309-MAT.pdf)&lt;/p&gt;

&lt;p&gt;(Reporting by Mica Rosenberg)&lt;/p&gt;</media:text>
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<title>Hedge funds may benefit from government cash to AIG: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H11Y20090318</link>
<pubDate>Tue, 17 Mar 2009 23:36:28 -0600</pubDate>
<description><![CDATA[(Reuters) - Some of the billions of dollars the U.S. government paid to bail out American International Group Inc stand to benefit hedge funds that bet on a falling housing market, the Wall Street Journal said, citing people familiar with the matter and reviewed documents.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - Some of the billions of dollars the U.S. government paid to bail out American International Group Inc stand to benefit hedge funds that bet on a falling housing market, the Wall Street Journal said, citing people familiar with the matter and reviewed documents.&lt;/p&gt;

&lt;p&gt;The documents showed how Wall Street banks were middlemen in trades with hedge funds and AIG that left the insurer holding the bag on billions of dollars of assets tied to souring mortgages, the paper said.&lt;/p&gt;

&lt;p&gt;AIG has put in escrow some money for at least one major bank, Deutsche Bank AG, whose hedge fund clients bet against the housing market, the paper said, citing a person familiar with the matter.&lt;/p&gt;

&lt;p&gt;The money will be released to the bank if mortgage defaults rise above a certain level, it said.&lt;/p&gt;

&lt;p&gt;Investment banks such as Goldman Sachs Group Inc and Deutsche Bank sold financial instruments to hedge funds letting them bet that mortgage defaults would rise, the paper said, adding that the instruments were credit default swaps -- a form of insurance that pays out in the event of a debt default.&lt;/p&gt;

&lt;p&gt;From mid-September to the end of last year, AIG and the government paid $5.4 billion to Deutsche and $8.1 billion to Goldman under credit default swap contracts the insurer had written, the paper said.&lt;/p&gt;

&lt;p&gt;It is not known which hedge funds made those bets with specific banks, the paper said, adding several large funds made big, ultimately profitable, wagers that mortgage defaults would increase.&lt;/p&gt;

&lt;p&gt;An AIG spokeswoman declined to comment to the paper.&lt;/p&gt;

&lt;p&gt;A spokesman for Deutsche Bank told the paper that the bank's &quot;exposure to AIG was well-collateralized and hedged.&quot;&lt;/p&gt;

&lt;p&gt;A Goldman spokesman also told the paper that the firm's exposure was collateralized and hedged.&lt;/p&gt;

&lt;p&gt;AIG, Deutsche Bank and Goldman Sachs could not be immediately reached for comment by Reuters.&lt;/p&gt;

&lt;p&gt;AIG, an embattled insurance giant that has received federal bailouts totaling $173 billion and is now paying $165 million in employee bonuses, is at the heart of a global financial crisis that U.S. President Barack Obama is trying to address with plans for trillions of dollars in spending.&lt;/p&gt;

&lt;p&gt;(Reporting by Ajay Kamalakaran in Bangalore, Editing by Ian Geoghegan)&lt;/p&gt;</media:text>
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<title>U.S. weighs expanded covert war in Pakistan: report</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H0QT20090318</link>
<pubDate>Tue, 17 Mar 2009 22:08:00 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - President Barack Obama and his national security advisers are considering expanding the covert U.S. war in Pakistan far beyond the tribal areas near the border with Afghanistan, the New York Times reported on Tuesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - President Barack Obama and his national security advisers are considering expanding the covert U.S. war in Pakistan far beyond the tribal areas near the border with Afghanistan, the New York Times reported on Tuesday.&lt;/p&gt;

&lt;p&gt;Two high-level reports on Pakistan and Afghanistan that have been forwarded to the White House in recent weeks have called for broadening the target area to reach the Taliban and other insurgent groups to a major sanctuary in and around the city of Quetta, the newspaper said on its website, citing senior administration officials.&lt;/p&gt;

&lt;p&gt;Missile strikes by Central Intelligence Agency-operated drones have until now been limited to the tribal areas, and never been extended into Baluchistan, a sprawling province under the authority of Pakistan's central government, and which is next to parts of Afghanistan where recent fighting has been fiercest, the newspaper website said.&lt;/p&gt;

&lt;p&gt;Some American officials say the missile strikes in the tribal areas have forced some leaders of the Taliban and al Qaeda to flee toward Quetta, making them more vulnerable, the Times said.&lt;/p&gt;

&lt;p&gt;Pakistan objects to the missile strikes, saying they are not only a violation of its sovereignty but complicate its efforts to tackle militants.&lt;/p&gt;

&lt;p&gt;Pakistan Foreign Office spokesman Abdul Basit said on Wednesday he was aware of the New York Times report.&lt;/p&gt;

&lt;p&gt;&quot;As we have been saying all along, we believe such attacks are counter-productive,&quot; he said. &quot;They involve collateral damage and they are not helpful in our efforts to win hearts and minds.&quot;&lt;/p&gt;

&lt;p&gt;Many of Obama's advisers are also urging him to sustain orders issued last summer by former President George W. Bush to continue Predator drone attacks against a wider range of targets in the tribal areas, and to conduct cross-border ground actions, using CIA and Special Operations commandos.&lt;/p&gt;

&lt;p&gt;The Times said a spokesman for the National Security Council had declined to provide details, saying only: &quot;We're still working hard to finalize the review on Afghanistan and Pakistan that the president requested.&quot;&lt;/p&gt;

&lt;p&gt;No other official would talk on the record on the issue, citing the administration's deliberations and the politically volatile nature of strikes into Pakistan's territory, the report said.&lt;/p&gt;

&lt;p&gt;(Additional reporting by Robert Birsel in Islamabad; Writing by Patricia Zengerle; Editing by Sandra Maler and Jerry Norton)&lt;/p&gt;</media:text>
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<title>AIG CEO asks employees to repay some bonus money</title>
<link>http://www.reuters.com/article/topNews/idUSN1731687320090318</link>
<pubDate>Tue, 17 Mar 2009 21:26:17 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - The head of AIG said on Wednesday he was trying desperately to prevent the company from collapsing when he allowed the payment of $165 million in bonuses that have stoked outrage stretching from the White House to Main Street.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;By Emily Kaiser and Corbett B. Daly&lt;/p&gt;

&lt;p&gt;WASHINGTON (Reuters) - The head of AIG said on Wednesday he was trying desperately to prevent the company from collapsing when he allowed the payment of $165 million in bonuses that have stoked outrage stretching from the White House to Main Street.&lt;/p&gt;

&lt;p&gt;Edward Liddy, who took over as chairman and chief executive of American International Group Inc in September when the government stepped in with the first of a series of rescues, said he had asked employees receiving more than $100,000 in bonuses to repay at least half.&lt;/p&gt;

&lt;p&gt;&quot;Americans are asking quite simply, Why pay these people anything at all?&quot; Liddy told a House of Representatives subcommittee. &quot;Here's why: I am trying desperately to prevent an uncontrolled collapse of that business.&quot;&lt;/p&gt;

&lt;p&gt;Liddy said some employees had already given back their entire bonuses. Some had taken payouts and left the company.&lt;/p&gt;

&lt;p&gt;AIG has drawn intense fire from the public, politicians and President Barack Obama for accepting up to $180 billion in government aid and then handing out fat bonuses -- including some worth $1 million or more paid out to 73 people.&lt;/p&gt;

&lt;p&gt;Liddy said the payouts were necessary to retain top employees with the specialized knowledge to dispose of $2.7 trillion in complex securities that ended up dragging the insurer to the brink of collapse last year.&lt;/p&gt;

&lt;p&gt;He said the company had whittled down that amount to $1.6 trillion, and he was worried that employees responsible for winding down the rest would return their bonuses &quot;with their letters of resignation,&quot; which would make the task tougher.&lt;/p&gt;

&lt;p&gt;&quot;It just got harder by many, many multiples,&quot; he said.&lt;/p&gt;

&lt;p&gt;Fury over the bonuses threatens to undermine Obama's efforts to solve the credit crisis and pull the economy out of a deep recession. He has said he might have to ask Congress for money beyond a $700 billion bailout fund approved in October.&lt;/p&gt;

&lt;p&gt;&quot;People are right to be angry. I'm angry,&quot; Obama said on Wednesday.&lt;/p&gt;

&lt;p&gt;Many voters view the financial rescues as free handouts to wealthy executives who made bad decisions, and the big bonuses have fueled that anger.&lt;/p&gt;

&lt;p&gt;&quot;It is morally reprehensible and fiscally irresponsible to expect bonus money for bringing a corporate giant to its knees,&quot; Democratic Representative Carolyn Maloney said.&lt;/p&gt;

&lt;p&gt;Another Democrat, Representative Paul Hodes, quipped that AIG stood for &quot;arrogance, incompetence and greed.&quot;&lt;/p&gt;

&lt;p&gt;But there was some concern that the firestorm in Washington would turn off the big private investors, such as hedge funds, the government needs to help stabilize the financial system.&lt;/p&gt;

&lt;p&gt;LIDDY SAYS EMPLOYEES THREATENED&lt;/p&gt;

&lt;p&gt;Channeling the populist sentiment, several Democrats and Republicans in Congress sought to force AIG to disclose details about the bonuses, and proposed taxing them so heavily that the recipients could wind up with nothing.&lt;/p&gt;

&lt;p&gt;Representative Barney Frank, the Democrat who chairs the House Financial Services Committee, pressed Liddy to release the names of those who received bonuses and said he intended to subpoena the information.&lt;/p&gt;

&lt;p&gt;Liddy refused, citing concerns for the safety of his employees, and read aloud what he said were examples of death threats that had been received.&lt;/p&gt;

&lt;p&gt;Separately, three Republicans asked the Senate Banking Committee to subpoena for documents related to the bonuses, and the House Judiciary Committee approved legislation aimed at recovering the money.&lt;/p&gt;

&lt;p&gt;New York Attorney General Andrew Cuomo, who has subpoenaed AIG for a list of those who received bonuses, said asking employees to give back half the money was &quot;too little too late&quot; and would cover only 298 of 418 bonus recipients.&lt;/p&gt;

&lt;p&gt;&quot;If AIG has nothing to hide and is not embarrassed about these payments, they should turn over the list now. The era of shrouding huge bonuses in secrecy must end,&quot; he said in a statement. &quot;We prefer not to go to court on this matter, but AIG is leaving us little choice.&quot;&lt;/p&gt;

&lt;p&gt;In addition, the U.S. Justice Department is working with the Treasury to determine how it might go about recovering the bonuses, Attorney General Eric Holder said.&lt;/p&gt;

&lt;p&gt;The House hearing room was packed with more than 80 people inside and dozens more waiting outside. The line to get in was already 40 deep more than an hour before the hearing began.&lt;/p&gt;

&lt;p&gt;When Liddy entered, he stopped briefly to talk with a handful of protesters, many of whom were dressed in bright pink clothing and carrying signs.&lt;/p&gt;

&lt;p&gt;Representative Paul Kanjorski, a Democrat who chairs the subcommittee, grew increasingly frustrated with the disruption and told the protesters not to &quot;try my patience.&quot; He shouted &quot;Signs down!&quot; and later had the signs confiscated.&lt;/p&gt;

&lt;p&gt;One of them read, &quot;Fire Geithner,&quot; referring to Treasury Secretary Timothy Geithner, who has been a key architect of the bailouts.&lt;/p&gt;

&lt;p&gt;Obama said he had complete confidence in Geithner, and said he was &quot;making all the right moves&quot; in fixing the economy.&lt;/p&gt;

&lt;p&gt;For the AIG retention bonus contracts, see www.house.gov/apps/list/press/financialsvcs_dem/press031809.shtl (Additional reporting by Kristin Roberts, Karey Wutkowski and Jeremy Pelofsky; Writing by Emily Kaiser; Editing by Andrea Ricci and Leslie Adler)&lt;/p&gt;</media:text>
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<title>FACTBOX: Geithner knew of AIG bonuses last Tuesday</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H0MU20090318</link>
<pubDate>Tue, 17 Mar 2009 20:55:43 -0600</pubDate>
<description><![CDATA[(Reuters) - U.S. Treasury Secretary Timothy Geithner found out about the impending bonuses to executives at insurer AIG last Tuesday and alerted the White House on Thursday.]]></description>
<guid isPermaLink="false" >USTRE52H0MU20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - U.S. Treasury Secretary Timothy Geithner found out about the impending bonuses to executives at insurer AIG last Tuesday and alerted the White House on Thursday.&lt;/p&gt;

&lt;p&gt;The furor over $165 million in bonuses paid out to staff at AIG even as the company was accepting up to $180 billion in taxpayer funds has focused attention on who in the administration knew what about the bonuses and when they knew it. And it has raised questions about Geithner's handling of the affair.&lt;/p&gt;

&lt;p&gt;Here is a timeline of events, according to an administration official:&lt;/p&gt;

&lt;p&gt;March 10 Geithner finds out about impending bonuses.&lt;/p&gt;

&lt;p&gt;March 11 After 6 p.m., Geithner calls AIG CEO Edward Liddy to express outrage and says the bonus payments are unacceptable and Liddy must go back and renegotiate. Geithner and Treasury lawyers look for legal solutions to avoid paying the bonuses.&lt;/p&gt;

&lt;p&gt;March 12 Geithner informs the White House about the bonuses. Later in the day, senior aides tell President Barack Obama. Geithner and Treasury lawyers keep looking for legal avenues to avoid paying the bonuses.&lt;/p&gt;

&lt;p&gt;March 13 Geithner and Treasury lawyers still seeking a legal way out. Geithner speaks with Liddy again and after some back and forth, AIG agrees to modify the bonuses and recoup the money in $30 billion AIG restructuring agreement. Geithner then asks Liddy for a letter to codify the changes.&lt;/p&gt;

&lt;p&gt;March 14-15 Following the March 13 deadline, Treasury attorneys look for a legal way to recoup the bonus payouts. On the evening of March 15, Obama asks the economic and legal team to intensify efforts to find ways to recoup the bonuses.&lt;/p&gt;

&lt;p&gt;(Reporting by Jeff Mason in Washington)&lt;/p&gt;</media:text>
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<title>S.Korea warns of action if North blocks border again</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H0AQ20090318</link>
<pubDate>Tue, 17 Mar 2009 20:53:53 -0600</pubDate>
<description><![CDATA[SEOUL (Reuters) - South Korea warned Wednesday that it would respond with decisive action if Pyongyang again blocked access to a joint factory park in North Korea, but said it was too early to consider shutting the project down.]]></description>
<guid isPermaLink="false" >USTRE52H0AQ20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Jack Kim&lt;/p&gt;

&lt;p&gt;SEOUL (Reuters) - South Korea warned Wednesday that it would respond with decisive action if Pyongyang again blocked access to a joint factory park in North Korea, but said it was too early to consider shutting the project down.&lt;/p&gt;

&lt;p&gt;In the past week, the North has blocked movement across the heavily defended border to an industrial park run by South Korean companies in the city of Kaesong out of anger over joint military drills by South Korean and U.S. troops.&lt;/p&gt;

&lt;p&gt;&quot;We are at this point not considering shutting down the Kaesong industrial zone,&quot; Unification Minister Hyun In-taek told a forum of journalists.&lt;/p&gt;

&lt;p&gt;&quot;But if the North repeats the border traffic suspension after the end of the drills, the government will consider it a very grave situation and will take appropriate measures,&quot; Hyun said, without elaborating on possible steps.&lt;/p&gt;

&lt;p&gt;The four-day blockade, which was lifted Tuesday, stranded more than 400 South Korean managers in the Kaesong industrial park and nearly dried up supplies and materials for factories there, casting doubt on the prospects for a project that had been a lucrative source of income for the cash-strapped North.&lt;/p&gt;

&lt;p&gt;The project was born under a policy of engagement by a previous South Korean government that saw it as a way to ease tensions with the North and allow firms from the South to use cheap labor there to make goods like pots, watches and apparel.&lt;/p&gt;

&lt;p&gt;&quot;If North Korea breaks the agreements with the South and causes enormous losses to the companies there, creating a situation where it is difficult to make investments in Kaesong a success, Kaesong will not be able to develop in a stable way,&quot; Hyun said.&lt;/p&gt;

&lt;p&gt;North Korea has directed increasingly acrimonious rhetoric against the conservative government in the wealthy South and its President Lee Myung-bak, who ended a decade of no-questions-asked aid to the North.&lt;/p&gt;

&lt;p&gt;The anger intensified last week when South Korea and the United States began annual military drills scheduled to end on Friday.&lt;/p&gt;

&lt;p&gt;Hyun said much more was at stake in the Kaesong project than the 700 billion won ($494.4 million) invested by the 101 companies operating there.&lt;/p&gt;

&lt;p&gt;&quot;I believe the Kaesong situation has dashed the hopes that the North and the South would embrace each other despite the grave military and security conditions between the two,&quot; Hyun said.&lt;/p&gt;

&lt;p&gt;The blockade comes as North Korea has raised tension on the Korean peninsula by announcing plans to launch a satellite between April 4 and 8, which officials in Seoul and Washington believe is a long-range missile test in disguise.&lt;/p&gt;

&lt;p&gt;Hyun repeated the warning that going ahead with the launch would violate a Security Council resolution.&lt;/p&gt;

&lt;p&gt;North Korean Premier Kim Yong-il is visiting China, one of the communist state's last remaining allies. China has avoided even muted threats against the North's missile plans.&lt;/p&gt;

&lt;p&gt;($1=1415.7 Won)&lt;/p&gt;

&lt;p&gt;(Editing by Jonathan Hopfner)&lt;/p&gt;</media:text>
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<title>Japan to ready defense against N.Korea rocket: Kyodo</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H0MG20090318</link>
<pubDate>Tue, 17 Mar 2009 20:53:49 -0600</pubDate>
<description><![CDATA[TOKYO (Reuters) - Japan will clear the way for the deployment of ballistic missile interceptors as it prepares for the possibility of a planned North Korean rocket launch falling onto its territory, Kyodo news agency reported on Wednesday.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;TOKYO (Reuters) - Japan will clear the way for the deployment of ballistic missile interceptors as it prepares for the possibility of a planned North Korean rocket launch falling onto its territory, Kyodo news agency reported on Wednesday.&lt;/p&gt;

&lt;p&gt;Japanese law allows it to shoot down any dangerous object falling toward the country, excluding aircraft, although the planned North Korean rocket would not hit Japanese territory if it follows its expected path.&lt;/p&gt;

&lt;p&gt;North Korea has given notice to global agencies of its plans to launch a satellite between April 4 and 8, presenting a challenge to U.S. President Barack Obama and allies who see the launch as a disguised missile test.&lt;/p&gt;

&lt;p&gt;Japan's cabinet plans to approve preparatory steps to destroy the rocket if it falls onto Japanese territory, Kyodo said, citing government sources.&lt;/p&gt;

&lt;p&gt;Cabinet approval, which may come by the end of the month, would clear the way for Defense Minister Yasukazu Hamada to order the deployment of ground-based Patriot Advanced Capability-3 interceptors, Kyodo said.&lt;/p&gt;

&lt;p&gt;Cabinet approval is required in Japan, where military activity is strictly limited under its pacifist constitution.&lt;/p&gt;

&lt;p&gt;A defense ministry spokesman declined comment.&lt;/p&gt;

&lt;p&gt;Japan is also considering deploying two high-tech Aegis-equipped destroyers carrying Standard Missile-3 ballistic missile interceptors, one to the Sea of Japan and the other to the Pacific Ocean, Kyodo added.&lt;/p&gt;

&lt;p&gt;Pyongyang has said the first stage of the rocket would splash down in the Sea of Japan, while the second stage would splash down in the Pacific Ocean.&lt;/p&gt;

&lt;p&gt;(Reporting by Chisa Fujioka; Editing by Jeremy Laurence)&lt;/p&gt;</media:text>
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<title>Natasha Richardson seriously hurt in ski fall</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52G2P220090318</link>
<pubDate>Tue, 17 Mar 2009 19:43:26 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - Actress Natasha Richardson, a member of Britain's Redgrave theatrical dynasty, was severely injured while skiing at a Canadian resort and returned to New York on Tuesday with her husband, actor Liam Neeson, according to media reports.]]></description>
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<media:content url="http://www.reuters.com/resources/r/?m=02&amp;d=20090317&amp;t=2&amp;i=9061510&amp;w="  type="video/x-flv"  expression="full"  medium="video" ></media:content>
<media:text type="html"  lang="en" >&lt;p&gt;By Michelle Nichols&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - Actress Natasha Richardson, a member of Britain's Redgrave theatrical dynasty, was severely injured while skiing at a Canadian resort and returned to New York on Tuesday with her husband, actor Liam Neeson, according to media reports.&lt;/p&gt;

&lt;p&gt;Newspapers in New York and London said Richardson, 45, the daughter of actress and activist Vanessa Redgrave, suffered a life-threatening brain injury. But the severity of her condition could not be confirmed as her British and U.S. representatives repeatedly declined comment.&lt;/p&gt;

&lt;p&gt;Neeson, who was filming in Toronto, flew to be with his wife in Montreal immediately after hearing of the accident, according to reports.&lt;/p&gt;

&lt;p&gt;The Toronto Star said one of its reporters saw Richardson, wrapped in blankets and lying on a stretcher with Neeson nearby as she was placed in an ambulance outside Montreal's Hopital du Sacre-Coeur where she had been taken.&lt;/p&gt;

&lt;p&gt;A hospital spokeswoman said an agent for the family told her the actress had left Canada, but she did not know Richardson's whereabouts or condition at the time.&lt;/p&gt;

&lt;p&gt;Celebrity TV show &quot;Entertainment Tonight&quot; said Richardson and Neeson arrived in New York City as family members gathered.&lt;/p&gt;

&lt;p&gt;The couple own homes in Manhattan and Millbrook, New York, north of the city. They have two sons, Daniel Jack, 12, and Michael, 13.&lt;/p&gt;

&lt;p&gt;The actress was skiing Monday at the Mont Tremblant resort, about 75 miles north of Montreal, when she fell during a private lesson. The resort said the actress appeared to be in good condition after the fall, but her instructor called a ski patrol to take her to the bottom of the hill.&lt;/p&gt;

&lt;p&gt;&quot;She seemed to be fine and had no obvious injuries,&quot; resort spokeswoman Lyne Lortie told French-language public broadcaster Radio-Canada. Patrol members escorted her back to the hotel and later called an ambulance after noticing she was not well.&lt;/p&gt;

&lt;p&gt;Richardson, whose father was the director Tony Richardson, followed her family's footsteps into a career on stage and screen.&lt;/p&gt;

&lt;p&gt;Perhaps best known for playing Lindsay Lohan's mother in the 1998 remake of the Disney movie &quot;The Parent Trap,&quot; Richardson has been equally at home on New York's Broadway and London's West End. She won a Tony award, Broadway's highest honor, in 1998 for her role in the musical &quot;Cabaret.&quot;&lt;/p&gt;

&lt;p&gt;Richardson met Neeson on the set of the Jodie Foster film drama &quot;Nell&quot; and they married in July 1994.&lt;/p&gt;

&lt;p&gt;In Corin Redgrave, Richardson's uncle, told the Evening Standard in London: &quot;I have heard this morning from a family representative about Natasha's accident and am very saddened.&quot;&lt;/p&gt;

&lt;p&gt;(Additional reporting by David Ljunggren in Ottawa, Kate Kelland in London and Jill Serjeant in Los Angeles, editing by Chris Wilson)&lt;/p&gt;</media:text>
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<title>AIG timeline: Geithner knew of AIG bonuses Tuesday</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H0BO20090318</link>
<pubDate>Tue, 17 Mar 2009 19:26:30 -0600</pubDate>
<description><![CDATA[WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner found out about the impending bonuses to executives at insurer AIG last Tuesday and alerted the White House on Thursday, an administration official said.]]></description>
<guid isPermaLink="false" >USTRE52H0BO20090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner found out about the impending bonuses to executives at insurer AIG last Tuesday and alerted the White House on Thursday, an administration official said.&lt;/p&gt;

&lt;p&gt;The official said Geithner called AIG Chief Executive Edward Liddy on Wednesday evening to express outrage about the bonuses and demand that he renegotiate them. Geithner and Treasury lawyers also started then to look for &quot;legal solutions&quot; to the issue.&lt;/p&gt;

&lt;p&gt;On Thursday, the official said, Geithner told the White House about the AIG payments and senior aides passed on the news to the president.&lt;/p&gt;

&lt;p&gt;On Friday, Geithner spoke to Liddy again and AIG agreed to modifications to the bonus payments.&lt;/p&gt;

&lt;p&gt;(Editing by Sandra Maler)&lt;/p&gt;</media:text>
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<title>Goldman's share of AIG bailout money draws fire</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52H0B520090318</link>
<pubDate>Tue, 17 Mar 2009 19:25:37 -0600</pubDate>
<description><![CDATA[NEW YORK (Reuters) - American International Group funneled over $90 billion of taxpayer bailout funds to various U.S. and European banks, but the biggest beneficiary was politically connected Goldman Sachs Group Inc.]]></description>
<guid isPermaLink="false" >USTRE52H0B520090318</guid>
<media:text type="html"  lang="en" >&lt;p&gt;By Paritosh Bansal - Analysis&lt;/p&gt;

&lt;p&gt;NEW YORK (Reuters) - American International Group funneled over $90 billion of taxpayer bailout funds to various U.S. and European banks, but the biggest beneficiary was politically connected Goldman Sachs Group Inc.&lt;/p&gt;

&lt;p&gt;Suspicions of potential conflicts of interest and favoritism have been fueled by $12.9 billion AIG paid to Goldman Sachs -- where then-Treasury Secretary Henry Paulson had previously worked as chief executive -- in the months after the insurer was rescued by the government last September.&lt;/p&gt;

&lt;p&gt;Goldman, for its part, has insisted it did not need the bailout money because it was &quot;always fully collateralized and hedged.&quot;&lt;/p&gt;

&lt;p&gt;Long Wall Street's largest investment bank before it recently became a bank holding company, Goldman answered a series of questions from Reuters about the bailout funds.&lt;/p&gt;

&lt;p&gt;&quot;We can say that our notional exposure to AIG is a fraction of what it was at the time of the September bailout,&quot; Goldman spokesman Michael DuVally said.&lt;/p&gt;

&lt;p&gt;Asked why Goldman Sachs took $12.9 billion of taxpayer money if it was collateralized and hedged on its AIG positions, DuVally said it was because AIG was not allowed to fail, so Goldman did not get money from hedges that would have paid out if the insurer had collapsed. And, he said, under the terms of its contracts with AIG, Goldman was entitled to collateral.&lt;/p&gt;

&lt;p&gt;DuVally also said the bank does extensive due diligence on all its counterparties.&lt;/p&gt;

&lt;p&gt;How much Goldman and other counterparties received from AIG has been just one of several flashpoints over the taxpayer rescue of what was once the world's largest insurer.&lt;/p&gt;

&lt;p&gt;AIG has also infuriated politicians -- including U.S. President Barack Obama -- with its plan to pay $165 million in bonuses to employees at the unit at the heart of its problems.&lt;/p&gt;

&lt;p&gt;Still, the payments to counterparties like Goldman Sachs dwarfed the bonuses, and some experts contend that these companies should have been made to share some of the losses resulting from the giant insurance firm's near collapse.&lt;/p&gt;

&lt;p&gt;&quot;People see that the guys that ruined AIG are getting paid more money, and that creates outrage,&quot; said Porter Stansberry, managing director of Stansberry &amp;amp; Associates Investment Research. &quot;If you want to be outraged, be outraged that the counterparties got paid out full value.&quot;&lt;/p&gt;

&lt;p&gt;Goldman was not the only large bank with exposure to AIG. The list of counterparties that AIG disclosed on Sunday included others that got large sums. Goldman was followed by Societe Generale with $11.9 billion, Deutsche Bank with $11.8 billion and Barclays PLC with $8.5 billion.&lt;/p&gt;

&lt;p&gt;Moreover, the AIG disclosures are still incomplete in that they do not include payments to the banks since December 31.&lt;/p&gt;

&lt;p&gt;&quot;We are looking at a small piece of it right here. So what is the total exposure? That's the question. And then the issue is, well, if that was wiped out what would it do to Goldman's capital?&quot; said Campbell Harvey, a finance professor at Duke University.&lt;/p&gt;

&lt;p&gt;&quot;It is obvious that firms underestimated the counterparty risk. That was their mistake,&quot; Harvey said. &quot;Yet they are getting bailouts of U.S. taxpayer money. Why should we pay for their mistake?&quot;&lt;/p&gt;

&lt;p&gt;In an editorial on Tuesday, the Wall Street Journal pointed to Goldman's claim that &quot;all of its AIG bets were adequately hedged and that it needed no 'bailout.'&quot;&lt;/p&gt;

&lt;p&gt;&quot;Why take $13 billion then? This needless cover-up is one reason Americans are getting angrier as they wonder if Washington is lying to them about these bailouts,&quot; the Journal said.&lt;/p&gt;

&lt;p&gt;The bailout has stirred resentment not just in the U.S. Congress, but on Wall Street, where investors have speculated that Goldman and its connections helped it get a better deal.&lt;/p&gt;

&lt;p&gt;In recent years, many former Goldman executives have moved into government. Paulson left Goldman in 2006 as chief executive. The chairman of the New York Federal Reserve is former Goldman Chairman Steve Friedman.&lt;/p&gt;

&lt;p&gt;&quot;The person that should be subpoenaed is Hank Paulson. How do you go from running Goldman Sachs in '05 and '06 and making all of these bets with AIG's financial products unit and then end up in the government guaranteeing those bets and not have a conflict of interest?&quot; Stansberry asked.&lt;/p&gt;

&lt;p&gt;DuVally said Goldman Sachs was not party to any discussions about the bailout of AIG.&lt;/p&gt;

&lt;p&gt;(Reporting by Paritosh Bansal; Additional reporting by Lilla Zuill and Kevin Drawbaugh; Editing by Gary Hill)&lt;/p&gt;</media:text>
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<title>SCENARIOS: Congress weighing ways to recoup AIG bonuses</title>
<link>http://www.reuters.com/article/topNews/idUSTRE52G7MH20090317</link>
<pubDate>Tue, 17 Mar 2009 17:47:41 -0600</pubDate>
<description><![CDATA[(Reuters) - U.S. lawmakers are proposing various options to try to recoup millions of dollars in bonuses paid to executives of insurer American International Group Inc after it got billions of dollars in government aid.]]></description>
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<media:text type="html"  lang="en" >&lt;p&gt;(Reuters) - U.S. lawmakers are proposing various options to try to recoup millions of dollars in bonuses paid to executives of insurer American International Group Inc after it got billions of dollars in government aid.&lt;/p&gt;

&lt;p&gt;Here are a few ideas that lawmakers have floated, some of which could be considered by the U.S. Congress as early as this week:&lt;/p&gt;

&lt;p&gt;* The leading candidate among lawmakers for recouping the money is adopting a tax specifically focused on the AIG bonuses because the insurer received taxpayer money from the $700 billion financial bailout. Leaders of the Senate Finance Committee proposed a 70 percent excise tax on bonuses paid to executives at companies that received bailout money.&lt;/p&gt;

&lt;p&gt;* Another option would be to use the U.S. government's position as the majority shareholder in AIG, some 80 percent, to sue the company to recoup the money.&lt;/p&gt;

&lt;p&gt;* House of Representatives Speaker Nancy Pelosi said one option being considered is authorizing the U.S. attorney general to recover excessive compensation payments made by companies that have received government aid.&lt;/p&gt;

&lt;p&gt;* Lawmakers have also called for the recipients of the bonuses to voluntarily give up the money.&lt;/p&gt;

&lt;p&gt;(Compiled by Jeremy Pelofsky, editing by Cynthia Osterman)&lt;/p&gt;</media:text>
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