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Mortgage rates at record low again

Written By empapat on Kamis, 20 September 2012 | 08.05

House construction

jmoconnor/SXC

NEW YORK (CNNMoney) -

Mortgage rates fell to record low levels once again last week, as the Federal Reserve's decision to buy billions in home loans for the foreseeable future helped bring lending costs down for home buyers and owners.

Mortgage finance backer Freddie Mac's weekly survey of mortgage rates showed the average 30-year fixed-rate mortgage fell to 3.49% from 3.55% the previous week. That matched the previous record low set in July. The fixed-rate 15-year mortgage reached a new record low of 2.77%.

The Fed announced last Thursday that it would be buying $40 billion in mortgage-backed securities each month for the foreseeable future. The idea of the purchases, popularly know as QE3, is to spur economic activity buy pumping more cash into the economy and driving down rates. Those taking out new home loans, either to purchase or refinance, will be among the first beneficiaries of the policy.

Frank Nothaft, chief economist, Freddie Mac, said the lower rates should help the ongoing housing recovery.

The low rates in recent months, coupled with tighter inventories, has helped both home values and sales.

On Wednesday, the National Association of Realtors reported a 7.8% gain in sales of previously owned homes compared to a year earlier, while the Census Bureau reported that housing starts and building permits rose substantially in August. Other readings have reported that home prices are finally turning higher after years of steady decline.

But while the housing market is showing signs of improvement, prices and sales are still hurt by an excess inventory of foreclosed homes and continued jobs market weakness.

20 Sep, 2012


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Madoff victims get another $2.5 billion

Bernard Madoff

Shannon Stapleton/Reuters

NEW YORK (CNNMoney) -

Victims of Bernard Madoff's Ponzi scheme will receive another $2.5 billion of their stolen funds, a court-appointed trustee said Thursday.

Irving Picard, the trustee in charge of recovering assets lost to the biggest Ponzi scheme in history, said that he mailed the checks Wednesday to 1,230 investors who were burned by Madoff.

The payments range from $1,784 to as much as $526.8 million, with the average payment being $2 million, according to Picard's office.

This is in addition to nearly $1.15 billion worth of payments that have already been sent out, bringing the total funds that have been recovered and distributed to victims up to more than $3.6 billion.

As a result of the latest payments, claims for another 182 victims have been fully satisfied, meaning that a total of 1,074 investor accounts have been fully reimbursed, according to the trustee's office. But the remaining 1,048 investors are still waiting to receive all of their stolen funds.

About $17.3 billion was lost to Madoff's long-running pyramid-style scheme, which came crashing down with his arrest on Dec. 11, 2008 in Manhattan, where his firm was headquartered and where he lived with his wife Ruth in a $7 million penthouse. Madoff pleaded guilty three months later to fraud and other charges in New York federal district court and is currently serving a 150-year sentence at a prison in North Carolina.

The trustee said that his office has recovered about $9.15 billion so far.

20 Sep, 2012


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DOJ inspector general testifies on 'Fast and Furious'

LIVE: Fast and Furious investigation hearing

WASHINGTON (CNN) -

The Inspector General of the Department of Justice, whose office published the report on the botched gun probe "Operation Fast and Furious," is testifying Thursday before a House oversight committee a day after the report's release.

More than a dozen officials at the Department of Justice and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are potentially facing punishment in the wake of the report.

Inspector General Michael E. Horowitz is in charge of identifying and preventing "waste, fraud, abuse and misconduct" at the Department of Justice, which oversees ATF.

While pinning the blame on officials in both Washington and Arizona for allowing guns traced in the operation to "walk" to drug cartels in Mexico, the report by the inspector's office also takes pressure off U.S. Attorney General Eric Holder, whom the House -- in a largely partisan vote -- had cited for contempt of Congress.

According to the report -- titled "A Review of ATF's Operation Fast and Furious and Related Matters" -- Holder's subordinates had not properly informed him in a timely manner.

Holder "did not learn about Operation Fast and Furious until late January or early February 2011," the report said.

It also said that the failure by officials to interdict the weapons, which later surfaced at crime scenes -- including at the site of the December 2010 shooting of U.S. Border Patrol agent Brian Terry -- was not the result of "improper motives" but of bad work.

"We concluded that the conduct and supervision of the investigations was significantly flawed," the report said.

The Fast and Furious probe and a previous operation were marked by "a series of misguided strategies, tactics, errors in judgment and management failures" that allowed hundreds of weapons to reach Mexican drug cartels, the independent inspector general found.

Within minutes of the report's release, Justice announced that former acting ATF chief Kenneth Melson was retiring and that another official, Deputy Assistant Attorney General Jason Weinstein, had resigned.

Weinstein and Melson were among 14 people who "bore a share of responsibility for ATF's knowing failure in both these operations to interdict firearms illegally destined for Mexico, and for doing so without adequately taking into account the danger to public safety that flowed from this risky strategy," the report states.

Weinstein failed to pass along key information about the flawed tactics being used in Fast and Furious, while Melson and other ATF officials didn't properly supervise the probe, the report states.

The report referred them and another 12 officials in Washington and the ATF and U.S. attorney's offices in Phoenix to Justice officials to determine "whether discipline or other administrative action" was required.

"Fast and Furious" became public after guns traced to the probe turned up at the scene of Terry's killing. The resulting investigations discovered similar tactics in a 2006-2007 operation dubbed "Wide Receiver," also run out of Phoenix.

Revelations that ATF agents watched suspected gun traffickers cross into Mexico with weapons purchased at U.S. gun shops outraged lawmakers. Larry Alt, one of the ATF agents who blew the whistle on the operation, told CNN that it was "egregious" that agents were watching people transfer guns to people who were handing them over to the cartels, "and we were not taking an enforcement action."

"I would say that the persons responsible for this case ... at the field level, the division level, and the headquarters level and as far as it went into the Department of Justice, should be held accountable for any decision that they made that allowed these guns to go out on the street unmonitored," Alt said.

Making matters worse, the Justice Department initially denied guns were being allowed to "walk" across the border, only to have to formally retract that statement in December 2011. The controversy forced Melson out at ATF, but he remained in another post at Justice until Wednesday.

Acting ATF Director B. Todd Jones, meanwhile, said his agency "accepts full responsibility" for failing to oversee the Arizona probes.

"This hurts. This hurts people here," Jones told reporters. But he added that the ATF has been tightening up its procedures and won't shy away from tough operations.

"All we can do is get off the mat again and keep swinging," he said.

The controversy fueled Republican accusations of a cover-up by the Obama administration, which led to the unprecedented vote to hold Holder in contempt.

In a written statement on the findings, Holder said the inspector-general's report upholds "what I, and other Justice Department officials, have said for many months now" -- that the tactics used pre-dated the Obama administration and that Justice Department leaders didn't try to hide the facts from lawmakers.

"It is unfortunate that some were so quick to make baseless accusations before they possessed the facts about these operations -- accusations that turned out to be without foundation and that have caused a great deal of unnecessary harm and confusion," Holder said. "I hope today's report acts as a reminder of the dangers of adopting as fact unsubstantiated conclusions before an investigation of the circumstances is completed."

But Iowa Republican Sen. Chuck Grassley, who brought ATF whistle blower complaints to the department's attention in early 2011, said the report "reaffirms virtually everything" that congressional investigators turned up.

"It's clear that both the ATF and the Justice Department failed to provide meaningful oversight of Operation Fast and Furious," Grassley said in a written statement. Those agencies "ignored warnings from employees" and refused to acknowledge how bad the problem was until after months of congressional pressure, he said.


20 Sep, 2012


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Source: http://www.clickondetroit.com/news/DOJ-inspector-general-testifies-on-Fast-and-Furious/-/1719418/16672448/-/loweeo/-/index.html
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Official testifies on 'Fast and Furious'

LIVE: Fast and Furious investigation hearing

WASHINGTON (CNN) -

The Inspector General of the Department of Justice, whose office published the report on the botched gun probe "Operation Fast and Furious," is testifying Thursday before a House oversight committee a day after the report's release.

More than a dozen officials at the Department of Justice and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are potentially facing punishment in the wake of the report.

Inspector General Michael E. Horowitz is in charge of identifying and preventing "waste, fraud, abuse and misconduct" at the Department of Justice, which oversees ATF.

While pinning the blame on officials in both Washington and Arizona for allowing guns traced in the operation to "walk" to drug cartels in Mexico, the report by the inspector's office also takes pressure off U.S. Attorney General Eric Holder, whom the House -- in a largely partisan vote -- had cited for contempt of Congress.

According to the report -- titled "A Review of ATF's Operation Fast and Furious and Related Matters" -- Holder's subordinates had not properly informed him in a timely manner.

Holder "did not learn about Operation Fast and Furious until late January or early February 2011," the report said.

It also said that the failure by officials to interdict the weapons, which later surfaced at crime scenes -- including at the site of the December 2010 shooting of U.S. Border Patrol agent Brian Terry -- was not the result of "improper motives" but of bad work.

"We concluded that the conduct and supervision of the investigations was significantly flawed," the report said.

The Fast and Furious probe and a previous operation were marked by "a series of misguided strategies, tactics, errors in judgment and management failures" that allowed hundreds of weapons to reach Mexican drug cartels, the independent inspector general found.

Within minutes of the report's release, Justice announced that former acting ATF chief Kenneth Melson was retiring and that another official, Deputy Assistant Attorney General Jason Weinstein, had resigned.

Weinstein and Melson were among 14 people who "bore a share of responsibility for ATF's knowing failure in both these operations to interdict firearms illegally destined for Mexico, and for doing so without adequately taking into account the danger to public safety that flowed from this risky strategy," the report states.

Weinstein failed to pass along key information about the flawed tactics being used in Fast and Furious, while Melson and other ATF officials didn't properly supervise the probe, the report states.

The report referred them and another 12 officials in Washington and the ATF and U.S. attorney's offices in Phoenix to Justice officials to determine "whether discipline or other administrative action" was required.

"Fast and Furious" became public after guns traced to the probe turned up at the scene of Terry's killing. The resulting investigations discovered similar tactics in a 2006-2007 operation dubbed "Wide Receiver," also run out of Phoenix.

Revelations that ATF agents watched suspected gun traffickers cross into Mexico with weapons purchased at U.S. gun shops outraged lawmakers. Larry Alt, one of the ATF agents who blew the whistle on the operation, told CNN that it was "egregious" that agents were watching people transfer guns to people who were handing them over to the cartels, "and we were not taking an enforcement action."

"I would say that the persons responsible for this case ... at the field level, the division level, and the headquarters level and as far as it went into the Department of Justice, should be held accountable for any decision that they made that allowed these guns to go out on the street unmonitored," Alt said.

Making matters worse, the Justice Department initially denied guns were being allowed to "walk" across the border, only to have to formally retract that statement in December 2011. The controversy forced Melson out at ATF, but he remained in another post at Justice until Wednesday.

Acting ATF Director B. Todd Jones, meanwhile, said his agency "accepts full responsibility" for failing to oversee the Arizona probes.

"This hurts. This hurts people here," Jones told reporters. But he added that the ATF has been tightening up its procedures and won't shy away from tough operations.

"All we can do is get off the mat again and keep swinging," he said.

The controversy fueled Republican accusations of a cover-up by the Obama administration, which led to the unprecedented vote to hold Holder in contempt.

In a written statement on the findings, Holder said the inspector-general's report upholds "what I, and other Justice Department officials, have said for many months now" -- that the tactics used pre-dated the Obama administration and that Justice Department leaders didn't try to hide the facts from lawmakers.

"It is unfortunate that some were so quick to make baseless accusations before they possessed the facts about these operations -- accusations that turned out to be without foundation and that have caused a great deal of unnecessary harm and confusion," Holder said. "I hope today's report acts as a reminder of the dangers of adopting as fact unsubstantiated conclusions before an investigation of the circumstances is completed."

But Iowa Republican Sen. Chuck Grassley, who brought ATF whistle blower complaints to the department's attention in early 2011, said the report "reaffirms virtually everything" that congressional investigators turned up.

"It's clear that both the ATF and the Justice Department failed to provide meaningful oversight of Operation Fast and Furious," Grassley said in a written statement. Those agencies "ignored warnings from employees" and refused to acknowledge how bad the problem was until after months of congressional pressure, he said.


20 Sep, 2012


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Madoff victims get another $2.5 billion

Bernard Madoff

Shannon Stapleton/Reuters

NEW YORK (CNNMoney) -

Victims of Bernard Madoff's Ponzi scheme will receive another $2.5 billion of their stolen funds, said the court-appointed trustee on Thursday.

Irving Picard, the trustee in charge of recovering assets lost to the biggest Ponzi scheme in history, said that he mailed the checks on Wednesday to 1,230 investors who were burned by Madoff.

The payments range from $1,784 to as much as $526.8 million, with the average payment being $2 million, according to Picard's office.

This is in addition to nearly $1.15 billion worth of payments that have already been sent out, bringing the total funds that have been recovered and distributed to victims up to more than $3.6 billion.

As a result of these payments, claims for 182 victims have been fully satisfied, according to the trustee's office. But the remaining 1,048 investors are still waiting to receive all of their stolen funds.

About $17.3 billion was lost to Madoff's long-running pyramid-style scheme, which came crashing down with his arrest on Dec. 11, 2008 in Manhattan, where his firm was headquartered and where he lived with his wife Ruth in a $7 million penthouse. Madoff pleaded guilty three months later to fraud and other charges in New York federal district court and is currently serving a 150-year sentence at a prison in North Carolina.

The trustee said that his office has recovered about $9.15 billion so far.

20 Sep, 2012


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Source: http://www.clickondetroit.com/money/Madoff-victims-get-another-2-5-billion/-/1719116/16675014/-/rfw5q9z/-/index.html
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Focus on Florida as campaign rolls on

Obama in Florida

Brian Yaklyvich/CNN

(CNN) -

Florida takes center stage in the presidential campaign Thursday, with President Barack Obama heading to Miami for Spanish-language network Univision's "Meet the Candidates" town hall meeting. Republican challenger Mitt Romney campaigns in Sarasota.

With 29 electoral votes, Florida is always a key state in presidential elections. Obama carried the state in 2008 after President George W. Bush narrowly won Florida twice.

Both candidates are also battling for the Latino vote, a particularly strong bloc in Florida. In the latest Gallup poll, registered Hispanic voters favor Obama over Romney 66 percent to 26 percent.

Romney, who will attend private fundraisers in Palm Beach after his Sarasota rally, took his turn at the Univision forum Wednesday.

He tackled the secretly taped video of remarks at a private fund-raising event during which he said 47 percent of the country was unlikely to support him and also took on the issue of illegal immigration.

Romney said he would not support a mass deportation of illegal immigrants.

"I believe people make their own choices as to whether they want to go home and that's what I mean by self-deportation," Romney said. "People decide if they want to go back to the country of their origin and get in line legally to be able to come to this country."

The audience seemed largely supportive, cheering his immigration remarks.

Romney also said he had "demonstrated my capacity to help the 100 percent" -- a clear reference to the videotaped comments that have dominated discussion of his campaign in recent days.

During that secretly recorded May 17 fundraiser, Romney said nearly half of the population believes they are entitled to government aid and will support Obama regardless of what he does or says.

"There are 47 percent who are with him, who are dependent on government, who believe that, that they are victims, who believe that government has the responsibility to care for them. Who believe that they are entitled to health care, to food, to housing."

He also said he would "never convince" the 47 percent of Americans who pay no federal income tax "that they should take personal responsibility and care for their lives."

Throughout the day Wednesday, Romney and running mate Rep. Paul Ryan also sought to reshape the campaign narrative less than seven weeks before the November vote by accusing Obama of favoring wealth redistribution -- code for socialism among conservatives -- based on a 1998 video of the president as a state Senate candidate in Illinois.

"I think the trick is figuring out how do we structure government systems that pool resources and hence facilitate some redistribution -- because I actually believe in some redistribution, at least at a certain level to make sure that everybody's got a shot," Obama says in the clip, posted Tuesday on the Drudge Report.

America does not work by government making people dependent on government, Romney told a fund-raising event Wednesday in Atlanta, adding "that will kill the American entrepreneurship that's lifted our economy over the years."

"The question of this campaign is not who cares about the poor and the middle class? I do. He does," the former Massachusetts governor said to rising cheers. "The question is who can help the poor and the middle class? I can! He can't!"

The White House on Wednesday characterized the GOP attacks as an effort to divert attention from Romney's controversial remarks.

A flurry of polls this week showed Romney unable to make up ground on Obama and slipping behind in some key battleground states, including Virginia. A new CNN/ORC International survey on Wednesday showed Obama also holding a 52 percent to 44 percent lead in Romney's birth state of Michigan.

Another new poll showed the secretly recorded Romney comments had a moderately negative impact on registered voters so far.

The Gallup survey taken Tuesday showed 36 percent of registered voters indicated they would be less likely to vote for Romney after the videotapes were released, while 20 percent said they were more likely to vote for Romney and 43 percent said the comments made no difference.


20 Sep, 2012


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Baby's arrival surprises base in Afghanistan

Baby

iStock Image

(CNN) -

A huge British military base in one of the most dangerous parts of Afghanistan got a surprise arrival this week as a soldier gave birth to a baby boy.

Britain's Ministry of Defence does not allow troops to deploy on operations if they are pregnant, but the ministry didn't know the woman was expecting.

It refused to confirm reports in the British media that the soldier didn't know she was pregnant.

The mother and baby at Camp Bastion are both in stable condition in a field hospital, the ministry said.

That's the same camp where Britain's Prince Harry is stationed as an Apache helicopter pilot in the Taliban heartland of Helmand province.

The ministry said the baby was born Tuesday -- four days after a dramatic raid on the base by well-trained Afghan insurgents dressed in U.S. military uniforms.

The insurgents, working in three teams of five, infiltrated the base, killed two U.S. Marines, destroyed six jets and damaged others before most of them were killed. One attacker was wounded and captured, NATO's International Security Assistance Force said.

A medical team from John Radcliffe Hospital in Oxford, England, is preparing to go to Afghanistan to care for the mother, the hospital said Thursday.

The mother and baby will be brought back to the United Kingdom for treatment and care, the ministry said.

It could not confirm reports that the baby born at Camp Bastion was named Sebastian. It did not name the mother, whom British newspapers are saying is a gunner.

The ministry could not immediately say whether babies had ever been born to British military personnel before in Afghanistan.


20 Sep, 2012


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Jobless claims dip slightly

NEW YORK (CNNMoney) -

The number of people filing for their first week of unemployment benefits fell slightly last week, the government said Thursday.

The Labor Department said 382,000 people filed first-time jobless claims in the week ended Sept. 15. That was worse than the forecast of 375,000 people from economists surveyed by Briefing.com, although it was down 3,000 from the revised reading from the previous week.

The previous week's reading had itself been inflated by an estimated 9,000 filing for claims during that period due to Tropical Storm Isaac earlier in the month.

The report follows last week's closely watched August jobs report, which showed employers added only 96,000 to payrolls in the month, less than needed to keep up with population growth. While the unemployment rate fell to 8.1 percent in that report, that was only because nearly 400,000 of those without jobs, mostly young adults, stopped looking for work and were no longer counted as unemployed.

About 3.3 million received their second week or more of unemployment benefits last week, which was down 32,000 from those who were getting ongoing help during the previous period.

The continued weakness in the jobs market is a major reason that the Federal Reserve announced last week that it would be pumping more money into the economy through buying mortgage bonds, a third round of quantitative easing popularly known as QE3.

The four-week moving average for initial jobless claims increased by 2,000 to 377,750. That average is used by economists to eliminate any week-to-week volatility in the reading.

20 Sep, 2012


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Mississippi has highest poverty, lowest income

NEW YORK (CNNMoney) -

Mississippi once again leads the nation in poverty and lags in median household income.

According to U.S. Census Bureau figures released Thursday. Mississippi had a poverty rate of 22.6 percent in 2011, while its median household income came in at $36,919. Both were roughly the same as the year before.

Median household income declined in 18 states between 2010 and 2011, with Nevada registering the largest drop of 6 percent. In the remaining states, it stayed statistically the same. Maryland once again had the highest median household income, coming in at $70,004.

Meanwhile, the percentage of people in poverty increased in 17 states.

Vermont was the only state where median household income increased and the number and share of people in poverty fell.

The District of Columbia had the highest income inequality, while Wyoming had the most equal incomes.

Nationally, Census figures showed that median household income was $50,054 in 2011, down 1.5 percent from a year earlier. Income inequality widened, as the highest income echelon experienced a jump, while those in the middle saw income shrink.

The national poverty rate eased to 15 percent in 2011, down slightly from 15.1 percent the year before. Some 46.2 million people fell below the poverty line last year, and one in five children were poor.

20 Sep, 2012


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Source: http://www.clickondetroit.com/money/Mississippi-has-highest-poverty-lowest-income/-/1719116/16673604/-/e4wkqk/-/index.html
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Two girls beat up Iran cleric over dress code

Iran map

yorkfoto/iStock

TEHRAN, Iran (CNN) -

They may be a far cry from their Western counterparts fighting for the acceptance to breast-feed -- or go topless -- in public, but two girls clobbered a cleric recently in a small town in Iran, when he admonished one of them to cover herself more completely.

The cleric said he asked "politely," but the girl's angry reaction and some pugilistic double-teaming with her friend landed the holy man in the hospital, according to an account in the semiofficial Mehr News Agency on Monday.

Hojatoleslam Ali Beheshti says he encountered the girls on his way to the mosque in the village of Shahmirzad for noon prayers in late August.

He told one of the girls to cover up, the report said.

"She responded by telling me to cover my eyes, which was very insulting to me," Beheshti said. So he asked her a second time to cover up and also to put a lid on what he felt was verbal abuse.

She hit the man of the cloth, and he hit the ground.

"I don't remember what happened after that," he said. "I just felt her kicks and heard her insults."

Beheshti, who emerged from the infirmary three days later, said he did not file a complaint against the girls.

But he doesn't mind the local prosecutor's investigation into the matter either, "as long as the case helps the cause of Islamic hijab."

Fighting with morality police or private individuals telling women to cover up is rare in small towns. It's more common in larger cities, where women are more likely to take a stand.


20 Sep, 2012


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Source: Stevens worried about Libya security

J Christopher Stevens, US ambassador to Libya

Esam Al-Fetori/Reuters

(CNN) -

In the months leading up to his death, U.S. Ambassador to Libya, Chris Stevens, worried about what he called the never-ending security threats in Benghazi and mentioned his name was on an al-Qaida hit list, a source familiar with his thinking told CNN.

Stevens specifically mentioned a rise in Islamic extremism and al-Qaida's growing presence in Libya, the source said.

American intelligence officials are investigating, but Matthew Olsen, the National Counterterrorism Center director, said Wednesday that it was unlikely that Stevens and his security team were killed by random protesters.

"I would say, yes, they were killed in course of terrorist attack on our embassy," Olsen said at a Senate Homeland Security hearing.

Stevens and three other Americans were killed when protesters, angry over a film made in the United States that mocked the Muslim prophet Mohammed, attacked the U.S. Consulate in Benghazi.

Washington tried to distance itself from the uproar, making it clear that it did not sanction the film. But more than a week of protests have rippled from Morocco to Malaysia, spurring U.S. officials to increase security at diplomatic missions and demand other governments to take action.

On Thursday, Libyan and U.S. officials will attend a memorial service in Tripoli for the slain Americans.

Here are the latest key developments in the fallout from the anti-Islam film, and cartoons published in a French satirical magazine featuring a figure resembling Mohammed:

French magazine runs cartoons of Mohammed

The French satirical magazine Charlie Hebdo added to the fiery debate between freedom of expression and offensive provocation on Wednesday.

The magazine, which is known for outrageous humor, published cartoons featuring a figure resembling the Prophet Mohammed.

Iranian students demonstrated in front of the French embassy in Tehran on Thursday, the semiofficial FARS news agency reported.

But so far, there has been no violence reported as a result of the Charlie Hebdo cartoons.

Still, France will close embassies and schools in about 20 countries on Friday, the main Muslim day of prayer, as a precaution, the French foreign ministry said Wednesday.

It is already boosting security in some locations, including its embassies, and police vehicles were parked outside the Paris offices of Charlie Hebdo late Tuesday.

In the past, Muslims in many countries have taken to the streets after Friday prayers.

Any depiction of Islam's prophet is considered blasphemy by many Muslims. France has the largest Muslim population in Western Europe, with an estimated 4.7 million followers of the faith.

The Charlie Hebdo cartoons are not labeled Mohammed, but several, including one that appears to show a man's naked rear end, could easily be interpreted as being depictions of Islam's prophet.

On Thursday, the Paris prosecutor's office said a group called the Syrian Association of Freedom filed a complaint against the magazine for inciting hatred. The magazine itself turned to the prosecutor's office, asking for an inquiry after its website was hacked.

Meanwhile, the German satirical magazine, "Titanic," will publish an issue lampooning Islamaphobia next week, with a depiction on its cover that could be interpreted as being the prophet Mohammed.

Staffer Martina Werner said the Titanic issue will take on film and politicians making political capital on Islamaphobia, with a cover from an old movie poster.

Asked if it is supposed to depict the prophet Mohammed, Werner answered: "Well, that lies in the eye of the beholder."

Capitol Hill briefings

The White House will roll out some of its top officials Thursday to brief members of the House and Senate about the past week's violent developments across the Middle East and Afghanistan.

Secretary of State Hillary Clinton, intelligence chief James Clapper and members of the Joint Chiefs of Staff will be on hand for the briefing.


20 Sep, 2012


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Topless Kate photos hit stands in Denmark

Prince William, Kate Middleton at citizenship ceremony

Blair Gable/Reuters

(CNN) -

Topless photos of Catherine, Duchess of Cambridge, hit newsstands in yet another country Thursday, as a magazine in Denmark became at least the fifth outlet to run the pictures causing headaches for Britain's likely future queen.

The Danish gossip magazine Se och Hoer ran the photos a day after its sister publication in Sweden did.

They're the same photos first seen last week in the French magazine Closer, then in an Italian magazine and an Irish newspaper, Se Og Hor Danish editor Kim Henningsen said.

"It's a set of unique photos from an A-class celebrity. We are a leading gossip magazine in Denmark, and it is my job to publish them," Henningsen said. "If the British royal family want to sue us, then it will happen then and we'll deal with it."

Closer was fined Tuesday for publishing the topless photographs, and ordered not to distribute the magazine in print or online.

A French court ordered the magazine to hand over the original photos to the royal family within 24 hours of the ruling and to pay them 2,000 euros (about $2,600).

The magazine must pay a further 10,000 euros a day if it is late in handing over the photos.

The magazine declined to say whether it has complied with the order.

A French prosecutor opened a preliminary criminal investigation into the incident Tuesday, separate from the royal family's civil suit, the Nanterre prosecutor's office said.

The royal family filed a criminal complaint seeking invasion of privacy charges against Closer and possibly the photographer, a palace spokeswoman said.

Se och Hoer's editor in Sweden, Carina Loefkvist, would not discuss the identity of the photographer, but she did say her magazine bought the images Friday.

The criminal and civil legal battle over the photographs would not deter the magazine, she said.

"We don't treat royalties different to other celebrities, so we would have published the photos anyway," she said. "We valued the news value."

A spokesman for the royal family declined to comment on the Danish and Swedish magazines' decisions "save to say that all proportionate responses will be kept under review."

Catherine and her husband, Prince William, the second in line to the throne, "welcome the injunction that's been granted. They always believed the law was broken and that they were entitled to their privacy," the palace said.

French law provides for "draconian sanctions" to protect against invasions of privacy, British lawyer Charlotte Harris said, including orders to take magazines off shelves and the imposition of serious fines.

Chi and Closer are owned by the Mondadori publishing company, which is headed by Marina Berlusconi, daughter of former Italian Prime Minister Silvio Berlusconi.


20 Sep, 2012


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Romney to ramp up campaign schedule with bus tour

Romney speaks to reporters in LA

Jim Young / Reuters

(CNN) -

Republican presidential candidate Mitt Romney will pick up the pace of his campaign next week with a bus tour of Ohio, his campaign announced Thursday.

He and vice presidential candidate Paul Ryan will make a series of stops across the state between Monday and Wednesday.

Ryan will campaign in Lima, Ohio on Monday, and continue on to Cincinnati on Tuesday, according to the campaign

Romney will hold an event in Dayton on Tuesday, then three events -- Columbus, Cleveland and Toledo -- on Wednesday.

Romney has kept a light schedule, holding just two public rallies in the past five days.

Some Republicans, including Sen. Lindsey Graham, have called on Romney to campaign more aggressively in swing states.

"I think what Romney needs to do is get into Virginia and run for sheriff. This is not rocket science," Graham said Wednesday.


20 Sep, 2012


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Colorado shooting suspect to appear in court

James Holmes before judge

CNN

(CNN) -

The man accused of spraying bullets in a crowded Colorado movie theater, leaving 12 dead and 58 wounded, is scheduled to attend a court hearing Thursday as prosecutors seek additional charges.

Authorities charged James Holmes with murder and attempted murder.

He also faces weapons charges in the July 20 shooting during the midnight premiere of the latest Batman movie, "The Dark Knight Rises," in Aurora.

At Thursday's hearing, lawyers are expected to discuss a new prosecution request to add 10 charges to the more than 140 he already faces, according to a state court official.

Prosecutors are also seeking to amend 17 of the original charges, said Rob McCallum, a spokesman with the Office of the State Court Administrator.

If added, the new charges would bring to 152 the counts against Holmes.

Lawyers are also expected to argue whether a notebook Holmes allegedly mailed to his psychiatrist before the mass shooting can be used at his upcoming trial.

A judge has issued a gag order on the case to protect the suspect's right to a fair trial.

But several documents released give a timeline of events leading up to the theater shooting.

Holmes, who was a doctoral candidate in neuroscience at the University of Colorado's Anschutz campus in Aurora, failed his graduate school oral boards a month before the shooting.

Soon after, he was "denied access to the school after June 12, 2012, after he made threats to a professor," according to court documents.

Holmes then "started the process to voluntarily withdraw from his graduate studies program," the documents said.

The shooting unfolded inside a darkened theater packed with Batman fans, some in costume, for the premiere of the movie.

The suspect went to the rear door of Century 16 theater and propped it open, then tossed in a canister of irritant before unleashing a hail of gunfire, federal authorities said.

Along with the gas mask, the suspect wore a ballistic helmet, protective gear for his legs, throat and groin, and black gloves.

Police officers rushing to the theater encountered bloody victims streaming out as others remained inside suffering from gruesome injuries.

Holmes surrendered without resistance, and authorities quickly learned that the suspect's Aurora apartment had been rigged with explosive booby traps.

Authorities evacuated five buildings in the neighborhood and it took days to disarm all the makeshift bombs left inside Holmes' apartment.

In an initial interview with police, Holmes identified himself as the "the Joker," authorities said.


20 Sep, 2012


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Report: 'Worrisome' levels of arsenic in rice

Brown rice

bxd/SXC

(CNN) -

Eating rice once a day can increase arsenic levels in the body by at least 44%, according to a new study from Consumer Reports.

The study surveyed more than 60 different rice products ranging from infant cereals to rice pasta and rice drinks and found "worrisome" levels of inorganic arsenic in most of the products. Others suggest, however, the levels are not cause for concern.

According to the Centers for Disease Control, inorganic arsenic has been linked to liver, bladder, and lung cancer.

Urvashi Rangan, Consumer Reports lead scientist on the study, said the study isn't meant to scare people from eating rice, rather "our investigation of arsenic in rice is supposed to inform consumers."

Rangan said, "We wanted to help consumers at least be able to take action for themselves in terms of moderating themselves. We asked the government to set standards."

The Consumer Reports study found that white rice had lower levels of arsenic compared to brown rice, and that rice grown in Arkansas, Louisiana, Missouri, and Texas, generally had higher levels of arsenic.

Currently, there are no federal standards for arsenic levels in food, but the Environmental Protection Agency has a federal standard for arsenic in drinking water. New Jersey has even more stringent standards, allowing just half the amount of arsenic allowed by the EPA.

Almost 40% of the products tested exceeded the New Jersey limits, but all were in line with federal limits for drinking water.

But "the levels are low," said Jim Coughlin, an independent toxicologist who has consulted for the USA Rice Federation in the past. "If we're going to eat, there's going to be arsenic in all our foods. It's found in fruits, vegetables and grains, and rice falls in the category. You've got to eat, and I think rice is a safe and nutritious food."

"Rice has always been considered a nutritious food and an important part of a healthy diet," the USA Rice Federation said in a statement. "We've been made aware of concerns about the level of arsenic in rice, but are not aware of any established studies directly connecting rice consumption and adverse health effects."

The Food and Drug Administration on Wednesday released preliminary results of arsenic levels in more than 200 rice and rice sample products. The agency said it expects to finish collecting and analyzing more than 1,200 samples by the end of the year. Once the samples are analyzed and completed, the FDA will determine if additional recommendations are needed.

Currently, the sample levels of arsenic the FDA found are in line with what the Consumer Reports study found.

"Based on the currently available data and scientific literature, the FDA does not have an adequate scientific basis to recommend changes by consumers regarding their consumption of rice and rice products," the agency said in a statement.

However, the Consumer Reports study recommended people eat no more than two servings of a quarter-cup of dry rice a week.

For children under 5, the group advised against drinking rice drinks as part of their daily diet. They also recommended no more than one serving of infant rice cereal a day for babies.

Dr. Frank Greer, a pediatrician and former chair of the American Academy of Pediatrics nutrition committee, said that the data on arsenic in food is limited. "Yes, the numbers are concerning. But we don't really know what arsenic means when it's in food ... it's present in all foods. This includes organic fruits and vegetables."

However, he suggested that concerned parents follow the Consumer Reports suggestions. "No mother wants to take any chance with an infant. So if she feels that way about it, and Consumer Reports is all we have, I think that's what she should follow."


20 Sep, 2012


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Official to testify on 'Fast and Furious'

Eric Holder

White House

WASHINGTON (CNN) -

The Inspector General of the Department of Justice, whose office published the report on the botched gun probe "Operation Fast and Furious," will testify Thursday before a House oversight committee a day after the report's release.

More than a dozen officials at the Department of Justice and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are potentially facing punishment in the wake of the report.

Inspector General Michael E. Horowitz is in charge of identifying and preventing "waste, fraud, abuse and misconduct" at the Department of Justice, which oversees ATF.

While pinning the blame on officials in both Washington and Arizona for allowing guns traced in the operation to "walk" to drug cartels in Mexico, the report by the inspector's office also takes pressure off U.S. Attorney General Eric Holder, whom the House -- in a largely partisan vote -- had cited for contempt of Congress.

According to the report -- titled "A Review of ATF's Operation Fast and Furious and Related Matters" -- Holder's subordinates had not properly informed him in a timely manner.

Holder "did not learn about Operation Fast and Furious until late January or early February 2011," the report said.

It also said that the failure by officials to interdict the weapons, which later surfaced at crime scenes -- including at the site of the December 2010 shooting of U.S. Border Patrol agent Brian Terry -- was not the result of "improper motives" but of bad work.

"We concluded that the conduct and supervision of the investigations was significantly flawed," the report said.

The Fast and Furious probe and a previous operation were marked by "a series of misguided strategies, tactics, errors in judgment and management failures" that allowed hundreds of weapons to reach Mexican drug cartels, the independent inspector general found.

Within minutes of the report's release, Justice announced that former acting ATF chief Kenneth Melson was retiring and that another official, Deputy Assistant Attorney General Jason Weinstein, had resigned.

Weinstein and Melson were among 14 people who "bore a share of responsibility for ATF's knowing failure in both these operations to interdict firearms illegally destined for Mexico, and for doing so without adequately taking into account the danger to public safety that flowed from this risky strategy," the report states.

Weinstein failed to pass along key information about the flawed tactics being used in Fast and Furious, while Melson and other ATF officials didn't properly supervise the probe, the report states.

The report referred them and another 12 officials in Washington and the ATF and U.S. attorney's offices in Phoenix to Justice officials to determine "whether discipline or other administrative action" was required.

"Fast and Furious" became public after guns traced to the probe turned up at the scene of Terry's killing. The resulting investigations discovered similar tactics in a 2006-2007 operation dubbed "Wide Receiver," also run out of Phoenix.

Revelations that ATF agents watched suspected gun traffickers cross into Mexico with weapons purchased at U.S. gun shops outraged lawmakers. Larry Alt, one of the ATF agents who blew the whistle on the operation, told CNN that it was "egregious" that agents were watching people transfer guns to people who were handing them over to the cartels, "and we were not taking an enforcement action."

"I would say that the persons responsible for this case ... at the field level, the division level, and the headquarters level and as far as it went into the Department of Justice, should be held accountable for any decision that they made that allowed these guns to go out on the street unmonitored," Alt said.

Making matters worse, the Justice Department initially denied guns were being allowed to "walk" across the border, only to have to formally retract that statement in December 2011. The controversy forced Melson out at ATF, but he remained in another post at Justice until Wednesday.

Acting ATF Director B. Todd Jones, meanwhile, said his agency "accepts full responsibility" for failing to oversee the Arizona probes.

"This hurts. This hurts people here," Jones told reporters. But he added that the ATF has been tightening up its procedures and won't shy away from tough operations.

"All we can do is get off the mat again and keep swinging," he said.

The controversy fueled Republican accusations of a cover-up by the Obama administration, which led to the unprecedented vote to hold Holder in contempt.

In a written statement on the findings, Holder said the inspector-general's report upholds "what I, and other Justice Department officials, have said for many months now" -- that the tactics used pre-dated the Obama administration and that Justice Department leaders didn't try to hide the facts from lawmakers.

"It is unfortunate that some were so quick to make baseless accusations before they possessed the facts about these operations -- accusations that turned out to be without foundation and that have caused a great deal of unnecessary harm and confusion," Holder said. "I hope today's report acts as a reminder of the dangers of adopting as fact unsubstantiated conclusions before an investigation of the circumstances is completed."

But Iowa Republican Sen. Chuck Grassley, who brought ATF whistle blower complaints to the department's attention in early 2011, said the report "reaffirms virtually everything" that congressional investigators turned up.

"It's clear that both the ATF and the Justice Department failed to provide meaningful oversight of Operation Fast and Furious," Grassley said in a written statement. Those agencies "ignored warnings from employees" and refused to acknowledge how bad the problem was until after months of congressional pressure, he said.


20 Sep, 2012


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Defending Romney, McCain cites '08 campaign trail misspeak

(CNN) -

Sen. John McCain on Wednesday compared a comment he made during his 2008 presidential bid to one made by his party's 2012 nominee, Mitt Romney, which is similarly drawing heavy Democratic flak.

At the time, McCain later pedaled back on his comment.

Clips recorded secretly at a May fundraiser and released Monday showed Romney saying 47% of the electorate are dependent on government. He said they see themselves as victims, and would "vote for the president no matter what."

Criticism from Democrats piled on. At a news conference Monday evening, Romney said the comments were "not elegantly stated." His campaign has said the comments were aimed at criticizing expanding entitlement programs.

McCain, a high-profile supporter of Romney and a senator from Arizona, defended the candidate Wednesday on CNN's "AC360," saying the comments were being misunderstood.

"I don't think that's what he meant any more than Barack Obama meant when he said that people cling to guns and Bibles," McCain said. "There is things that people say - millions of statements every day.

"I don't know if you remember when I said the fundamentals of the economy are strong even though we're in a fiscal crisis - oh my god!" he continued, referencing comments that drew heavy criticism from Democrats four years ago.

"You know, there's been tremendous turmoil in our financial markets and Wall Street," McCain said. "And it is, people are frightened by these events. Our economy, I think, still, the fundamentals of our economy are strong, but these are very, very difficult times."

He made the remarks as the volatility on Wall Street consumed the campaign trail, and just hours after banking giants Lehman Brothers filed for bankruptcy and Merrill Lynch was sold to Bank of America.

McCain made his comments on September 15, 2008, meaning both his and Romney's 2012 comments hit the political cycle in mid-September.

Some might point to a difference in venue: McCain's comments were made at a campaign rally in Florida, while Romney's were made behind closed doors at a fundraiser.

The senator dialed back his comments in the face of heavy criticism, saying the "fundamental strength" was American workers and that the economic troubles were a result of excessive government spending as well as "greed, excess and corruption on Wall Street."

In his Wednesday interview on CNN, he defended Romney.

"I am confident that Mitt Romney cares about every American and ... is obviously concerned about the growth of the welfare state," McCain said.


20 Sep, 2012


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Fewer people have terrible credit scores

NEW YORK (CNNMoney) -

As more people cut back on taking on new debt and others ditch credit altogether, fewer are ending up with rock-bottom credit scores.

Compared to last year, about 1.4 million fewer people are now in the lowest FICO scoring range, according to new data from FICO, the most widely-used credit scoring metric. This year, just 14.2% of consumers fall into the 300 to 549 score range.

The number of people in this bottom range has also dropped since 2005, when FICO began tracking annual score distribution data. Back then 800,000 more consumers received scores in the lowest range.

There are likely a couple reasons for this decline, said Rachel Bell, a senior director at FICO. Many people who had high debt loads and bad credit before the recession have buckled down and have become more cautious since the financial crisis hit, so their scores have actually improved.

Others had such low scores that, when the recession came, creditors became even less likely to lend to them and they gave up trying to maintain and access credit. Since the financial crisis, they have either been cut off from existing credit lines, denied new credit or they simply chose to stay away from credit. And when there's no new credit data on file, FICO stops generating new scores for them -- so they basically fall off the credit map.

Many of the people who were in this bottom range had major credit problems in the past, like bankruptcies, defaults and high levels of debt, said Bell.

And after dropping out of the credit market, many often use debit cards, and some resort to payday lenders and other untraditional ways of getting credit that aren't reflected in FICO scores, said Bell.

On the other side of the spectrum, a growing number of people are boasting nearly-perfect or perfect scores. The number of consumers with FICO scores between 800 and 850 has increased by about 1.4 million people since 2010, with 18.6% of consumers now receiving scores in this range.

During the recession, many consumers pulled in the reins on spending and borrowing instead of returning to their pre-recession habits, said Bell. This group has remained very cautious in recent years and many have shied away from taking out new credit.

"The economy is still uncertain ... so these people are not overextending themselves, and they're continuing to increase their scores," said Bell.

For the consumers with poor credit, Bell said it's important to realize that they can eventually get to this highest credit score rung, too.

"Even if you have a low score, all hope is not lost -- you can correct it by being very careful with credit," she said. Start by paying your bills on time and keeping your balances low by only taking out credit you absolutely need, she said.

20 Sep, 2012


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Actress in anti-Islamic video sues Youtube, filmmaker

LOS ANGELES (CNN) -

One of the actresses in "Innocence of Muslims" -- the anti-Islam film that ignited a firestorm in the Muslim world -- is suing the producer of the film, Nakoula Basseley Nakoula, claiming she is a victim of fraud, invasion of privacy and misappropriation of her likeness.

In a 17-page complaint filed Wednesday in Los Angeles Superior Court, the lawsuit from Cindy Lee Garcia also names YouTube LLC, the video-sharing website on which the video is posted, and its parent company, Google Inc., as causing irreparable harm to Ms. Garcia for refusing to remove the content from their site.

""The lawsuit is not an attack on the First Amendment or the right of Americans to say what they think," but it demands the content be pulled off because "Ms. Garcia in no way consented to the use of her performance, image or likeness in such an offensive and file film," Garcia's attorney, M. Cris Armenta, said in a statement.

In an interview with CNN, Garcia said she spoke with the producer after the unrest began.

"He said he wrote the script because he wants the Muslims to quit killing," Garcia said. "I had no idea he was doing all this."

Last week, Garcia told CNN she had been unaware that her voice was dubbed but the lawsuit alleges even further voice-over alternations of her on-camera dialogue."

The producers' representations that he "intended to make an 'adventure film' and that plaintiff would be depicted as a concerned mother, were false," the suit claims. "Defendant ... made an anti-Islam propaganda film, in which plaintiff is falsely made to appear to accuse the founder of the Islamic religion of being a sexual deviant and child molester," the suit says.

On Wednesday, 79 cast and crew members released a statement saying they were "extremely upset and feel taken advantage of by the producer."

They said they were "shocked by the drastic rewrites of the script and lies that were told to all involved. We are deeply saddened by the tragedies that have occurred."

The lawsuit seeks compensatory and punitive damages against Nakoula for invasion of privacy, fraud, negligence, and the intentional infliction of emotional distress. "Ms. Garcia has lost her job, her privacy, and has suffered extreme distress over Nakoula's acts," according to the lawsuit.

According to the complaint, YouTube privately informed Ms. Garcia that it will not voluntarily remove the content of the video. Attorney Armenta said that on Thursday, she will seek an emergency temporary restraining order against Nakoula and YouTube, asking that the content be removed permanently.

Garcia claims since the film's backlash, she has received death threats and unable to visit her grandchildren out of fear that they will be harmed.

Calls to representatives of Mr. Nakoula were not immediately returned.

YouTube responded to e-mail inquiries from CNN with an e-mail stating: "We are reviewing the complaint and will be in court tomorrow."


20 Sep, 2012


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Riot at 'New Folsom' prison leaves 13 wounded

(CNN) -

Guards at the California state prison known as "New Folsom" put down a brief riot Wednesday that left 13 inmates hospitalized, including one shot by a correctional officer, prison officials said.

About 60 to 70 inmates were involved in the disturbance at California State Prison-Sacramento, said Lt. Tony Quinn, a penitentiary spokesman. Eight of those taken to the hospital had stab wounds, while a guard shot one inmate in the "hip or flank area," Quinn said.

The disturbance broke out in an exercise yard for maximum-security inmates Wednesday morning, the state Department of Corrections said. No staff members were injured, and Quinn said order was restored within 10 minutes.

Guards found four inmate-made weapons in the yard after the riot, he said.

The facility opened in 1986 and now holds more than 2,600 prisoners, Quinn said.

It's next door to the Folsom State Prison made famous by singer Johnny Cash, and it was designated New Folsom Prison until 1992.


20 Sep, 2012


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Amusement park riders stuck 300 feet up

(CNN) -

An amusement park ride in California broke down Wednesday afternoon, stranding its passengers 300 feet in the air, a police spokesman said.

The riders were lowered to the ground after being trapped for more than two hours.

About 20 people were on the ride at Knotts Berry Farm, Cpl. Andy Luong of the Buena Park Police Department said. First reports of the situation came in to authorities about 4:45 p.m. (7:45 p.m. ET).

The WindSeeker also malfunctioned on September 7, CNN affiliate KABC reported.

According to the amusement park's website, the ride has 32 two-person gondolas attached to metal arms, which spread out once the riders gets to 301 feet.

Passengers, who can dangle their legs, travel eight times in a circle for one minute.

"Due to the long airtime, riders will experience a spectacular sense of weightlessness," the website claims.

KABC reported that when the ride broke nearly two weeks ago park crews manually lowered the gondolas over the course of a couple hours.

The WindSeeker was designed and built by a Dutch company, Mondial.


20 Sep, 2012


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Wyclef discusses romance with Lauryn Hill in memoir

Written By empapat on Rabu, 19 September 2012 | 22.15

Wyclef Jean

CNN Image

(CNN) -

Wyclef Jean's memoir, "Purpose: An Immigrant's Story," delves into a number of events in his life, but one of the buzziest bits is his admission that he loved both his wife and his then-friend and collaborator Lauryn Hill at the same time.

On "Starting Point" Wednesday, Wyclef tried to explain how that could be, starting off with the reality that he was quite young at the time.

"I was 20-something ... Basically, we were in the studio everyday, recording everyday and around each other everyday," he said of his work with Lauryn, who, like Pras, was a part of the hip-hop group The Fugees with Wyclef.

In an excerpt from his memoir on Salon, Wyclef offers more details, saying that his relationship with Lauryn evolved from a platonic friendship to a passionate romance, even as he was also seeing the woman who eventually became his wife. After he married, Wyclef writes, he continued his relationship with Lauryn.

It all apparently came to a head with the allegation that Lauryn lied to Wyclef about her first pregnancy, leading him to believe that the child was his. The event, Wyclef says, contributed to The Fugees' eventual breakup.

Writing about their relationship was necessary, Wyclef said on "Starting Point" Wednesday, because "through the course of history, someone will document it and say, this is what happened ... [T]he doctor that was in the hospital, he saw me in the hospital ... someone is going to end up writing it in history, so I have to make sure I write the truth."

Despite the outcome, he wouldn't take the experience back, the musician added.

"The people that are blaming me for the breakup," Wyclef said, "if you all have [the album] 'The Score' that y'all love so much, 'The Score' wouldn't have happened without the love triangle of everything that you're hearing. Inside of the mystery of 'The Score,' there's always a passionate undertone in it, and I don't think that the music actually would've came out like that if we [weren't] going through what we [were] going through."


20 Sep, 2012


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