State Department security chief leaves post over Benghazi






WASHINGTON (Reuters) – The U.S. State Department said on Wednesday its security chief had resigned from his post and three other officials had been relieved of their duties following a scathing official inquiry into the September 11 attack on the U.S. mission in Benghazi.


Eric Boswell has resigned effective immediately as assistant secretary of state for diplomatic security, State Department spokeswoman Victoria Nuland said in a terse statement. A second official, speaking on condition of anonymity, said Boswell had not left the department entirely and remained a career official.






Nuland said that Boswell, and the three other officials, had all been put on administrative leave “pending further action.”


An official panel that investigated the incident concluded that the Benghazi mission was completely unprepared to deal with the attack, which killed U.S. Ambassador Christopher Stevens and three other Americans.


The unclassified version of the report, which was released on Tuesday, cited “leadership and management” deficiencies, poor coordination among officials and “real confusion” in Washington and in the field over who had the authority to make decisions on policy and security concerns.


“The ARB identified the performance of four officials, three in the Bureau of the Diplomatic Security and one in the Bureau of (Near Eastern) Affairs,” Nuland said in her statement, referring to the panel known as an Accountability Review Board.


Secretary of State Hillary Clinton accepted Boswell’s decision to resign effective immediately, the spokeswoman said.


Earlier, a U.S. official who spoke on condition of anonymity said Boswell, one of his deputies, Charlene Lamb, and a third unnamed official has been asked to resign. The Associated Press first reported that three officials had resigned.


PANEL STOPS SHORT OF BLAMING CLINTON


The Benghazi incident appeared likely to tarnish Clinton’s four-year tenure as secretary of state but the report did not fault her specifically and the officials who led the review stopped short of blaming her.


“We did conclude that certain State Department bureau-level senior officials in critical positions of authority and responsibility in Washington demonstrated a lack of leadership and management ability appropriate for senior ranks,” retired Admiral Michael Mullen, one of the leaders of the inquiry, told reporters on Wednesday.


The panel’s chair, retired Ambassador Thomas Pickering, said it had determined that responsibility for security shortcomings in Benghazi belonged at levels lower than Clinton’s office.


“We fixed (responsibility) at the assistant secretary level, which is, in our view, the appropriate place to look for where the decision-making in fact takes place, where – if you like – the rubber hits the road,” Pickering said after closed-door meetings with congressional committees.


The panel’s report and the comments by its two lead authors suggested that Clinton, who accepted responsibility for the incident in a television interview about a month after the Benghazi attack, would not be held personally culpable.


Pickering and Mullen spoke to the media after briefing members of the House of Representatives Foreign Affairs Committee and Senate Foreign Relations Committee behind closed doors on classified elements of their report.


Clinton had been expected to appear at an open hearing on Benghazi on Thursday, but is recuperating after suffering a concussion, dehydration and a stomach bug last week. She will instead be represented by her two top deputies.


Clinton, who intends to step down in January, said in a letter accompanying the review that she would adopt all of its recommendations, which include stepping up security staffing and requesting more money to fortify U.S. facilities.


The National Defense Authorization Act for 2013, which is expected to go to Congress for final approval this week, includes a measure directing the Pentagon to increase the Marine Corps presence at diplomatic facilities by up to 1,000 Marines.


Some Capitol Hill Republicans who had criticized the Obama administration’s handling of the Benghazi attacks said they were impressed by the report.


“It was very thorough,” said Senator Johnny Isakson. Senator John Barrasso said: “It was very, very critical of major failures at the State Department at very high levels.” Both spoke after the closed-door briefing.


Others, however, took a harsher line and called for Clinton to testify as soon as she is able.


“The report makes clear the massive failure of the State Department at all levels, including senior leadership, to take action to protect our government employees abroad,” Representative Mike Rogers, the Republican chairman of the House Intelligence Committee, said in a statement.


Senator Bob Corker, who will be the top Republican on the Senate Foreign Relations Committee when the new Congress is seated early next year, said Clinton should testify about Benghazi before her replacement is confirmed by the Senate.


Republicans have focused much of their firepower on U.S. Ambassador to the United Nations Susan Rice, who appeared on TV talk shows after the attack and suggested it was the result of a spontaneous protest rather than a premeditated attack.


The report concluded that there was no such protest.


Rice, widely seen as President Barack Obama’s top pick to succeed Clinton, withdrew her name from consideration last week.


(Additional reporting by Tabassum Zakaria and Susan Cornwell; Editing by Christopher Wilson)


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Facebook CEO Mark Zuckerberg donating $500 million in stock to Silicon Valley charity






SAN FRANCISCO – Facebook CEO Mark Zuckerberg said Tuesday he is donating nearly $ 500 million in stock to a Silicon Valley charity with the aim of funding health and education issues.


Zuckerberg donated 18 million Facebook shares, valued at $ 498.8 million based on their Tuesday closing price. The beneficiary is the Silicon Valley Community Foundation, a non-profit that works with donors to allocate their gifts.






This is Zuckerberg’s largest donation to date. He pledged $ 100 million in Facebook stock to Newark, New Jersey, public schools in 2010, before his company went public earlier this year. Later in 2010, he joined Giving Pledge, an effort led by Microsoft Corp. founder Bill Gates and Berkshire Hathaway Inc. CEO Warren Buffett to get the country’s richest people to donate most of their wealth. His wife, Priscilla Chan, joined with him.


In a Facebook post Tuesday, Zuckerberg, 28, said he’s “proud of the work” done by the foundation that his Newark donation launched, called Startup: Education, which has helped open charter schools, high schools and others.


With the latest contribution, he added, “we will look for areas in education and health to focus on next.” He did not give further details on what plans there may be for funds.


“Mark’s generous gift will change lives and inspire others in Silicon Valley and around the globe to give back and make the world a better place,” said Emmett D. Carson, CEO of the foundation.


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Tom Hooper, Mychael Danna join crowded slate of Palm Springs honorees






LOS ANGELES (TheWrap.com) – “Les Miserables” director Tom Hooper and “Life of Pi” composer Mychael Danna are the latest awards-season hopefuls to be added to the slate of honorees at the Palm Springs International Film Festival, PSIFF organizers announced on Tuesday.


The two will join a list of honorees that in recent days has expanded to include Helen Mirren, Richard Gere, Bradley Cooper and Sally Field. Other awards will go to Helen Hunt, Naomi Watts, Robert Zemeckis and the cast of “Argo.”






Hooper will receive the Sonny Bono Visionary Award, named in honor of the singer/producer/actor and Palm Springs mayor who launched the festival. Past recipients include Danny Boyle, Quentin Tarantino, Baz Luhrmann and last year’s winner, “The Artist” director Michel Hazanavicius.


Tom Hooper brilliantly transforms the classic stage musical ‘Les Misérables’ into a cinema marvel,” said festival chairman Harold Matzner in a press release announcing the awards. “By asking his amazing cast of actors to sing live on film, Hooper allows them to connect even further with their characters, resulting in emotional powerhouse performances that are enthralling audiences worldwide.”


Danna, who has won acclaim for his score to Ang Lee’s “Life of Pi,” will receive the Frederick Loewe Award for Film Composing, a PSIFF honor that in the past has gone to T Bone Burnett, Alexandre Desplat, Danny Elfman, Randy Newman and Diane Warren.


Danna previously wrote music for Lee’s films “The Ice Storm” and “Ride With the Devil.” “Mychael Danna is a pioneer in creating original compositions that are as dramatic and innovative as the films in which they are featured,” said Matzner in the release.


PSIFF’s Awards Gala will take place on Saturday, January 5, and the festival will run from January 3 through January 14.


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Oncothyreon lung cancer drug fails in late-stage trial






(Reuters) – Biopharmaceutical company Oncothyreon Inc said a late-stage trial of its experimental lung cancer drug did not meet the main study goal of improving overall survival.


The drug, codenamed L-BLP25, is being tested in patients with unresectable, locally advanced stage IIIA or stage IIIB, non-small cell lung cancer (NSCLC).






The trial was conducted by Merck Serono, a division of Germany’s Merck KGaA, under a license agreement with Oncothyreon.


(Reporting by Esha Dey in Bangalore; Editing by Roshni Menon)


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UBS fined $1.5 billion in growing Libor scandal






ZURICH (Reuters) – Swiss bank UBS admitted fraud and accepted a $ 1.5 billion fine on Wednesday for its role in manipulating global benchmark interest rates.


Dozens of UBS staff rigged the Libor rate, which is used to price trillions of dollars worth of loans, in collusion with brokers and traders at other banks, according to an investigation by authorities in multiple countries.






The controversy is expected to ensnare other big lenders and spark criminal and civil lawsuits against individuals involved. The penalty UBS agreed with U.S., UK and Swiss authorities far exceeds the $ 450 million levied on Britain‘s Barclays in June, also for rigging Libor, and the second largest ever imposed on a bank.


“This is an endemic banking industry problem and shows how far the industry has fallen, failing itself and its customers,” said Neil Dwane, chief investment officer for Allianz Global Investors.


“For the future it shows that without strong regulation and strong and new management throughout most of the biggest banks, there can be no reasonable expectation that they will improve their behavior substantially – at least UBS now has strong new management.”


Shares in the Swiss lender rose 1.6 percent to hit a 17-month high of 15.5 francs ($ 16.97) in early trade as investors judged the worst was over.


“You can see from the stock movement that the fine is already baked in,” said Markus Jordi, principal at Zurich-based investment manager Cosmos Capital.


“The bank has already kicked out some traders, apologized, said it will shut down parts of the investment bank and overhauled management.”


The UBS fine comes a week after Britain’s HSBC agreed to pay a record $ 1.92 billion to settle a probe in the United States into laundering money for drug cartels.


UBS’s unit in Japan pleaded guilty to one count of fraud relating to manipulation of benchmark rates, including the yen Libor.


The Libor benchmarks are used for trillions of dollars worth of loans around the world, ranging from home loans to credit cards to complex derivatives.


Tiny shifts in the rate, compiled from daily polls of bankers, could benefit banks by millions of dollars. But every dollar a bank benefited meant an equal loss by a bank, hedge fund or other investor on the other side of the trade – raising the threat of a raft of civil lawsuits.


REPUTATIONAL HIT


The Libor settlement caps a torrid 18 months for UBS during which it lost $ 2.3 billion in a rogue trading scandal, underwent a management upheaval and made thousands of job cuts.


“We deeply regret this inappropriate and unethical behavior. No amount of profit is more important than the reputation of this firm,” UBS Chief Executive Sergio Ermotti said in a statement.


The reputational impact of the controversy may only emerge next year.


“The only thing shareholders can do is keep a very close eye on the money flows on the wealth management side,” said Neil Wilkinson, portfolio manager at Royal London Asset Management.


“We may not see until the first quarter of next year whether they have lost any clients as a result of this.”


Ermotti said around 40 people had left UBS or had been asked to leave as a result of the investigation.


The bank will pay $ 1.2 billion to the U.S. Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC), 160 million pounds to the UK’s Financial Services Authority (FSA) and 59 million Swiss francs from its estimated profit to Swiss regulator Finma.


The UK penalty is the largest in the history of the FSA and more than double the 59 million pounds paid by Barclays.


UBS said the fines would widen its fourth quarter net loss but it would not need to raise new capital.


BE A HERO


Britain’s FSA said attempts to manipulate Libor and Euribor, its European equivalent, were so widespread that every submission UBS made over a six-year period from 2005 to 2010 was suspect.


At least 45 people at UBS were involved in the rigging, which was discussed in internal chat forums and group emails but never detected by compliance staff, despite five audits.


The FSA said the manipulation was considered to be “normal business practice” by a wide pool of people within UBS.


In addition to traders trying to move the Libor rate up or down to make money for themselves, senior managers at the Swiss bank directed dealers to keep Libor submissions low during the financial crisis to make the bank look stronger.


The extent of the wrongdoing was highlighted in a series of emails released by the FSA which showed how traders and brokers conspired to rig the rate and referred to each other in congratulatory terms such as “superman” and “be a hero today”.


In one email, a trader wrote :”I need you to keep it as low as possible … if you do that …. I’ll pay you, you know, 50,000 dollars, 100,000 dollars… whatever you want … I’m a man of my word”.


It is the first time that brokers have been accused of taking payments to aid manipulation. ICAP, the world’s largest inter-dealer broker, and rival RP Martin have suspended employees in connection with the probe.


In a memo to staff on Wednesday, Ermotti said it was too early to determine whether or how clients were affected, pending further regulatory probing of the rate fixing.


Last week, British police arrested three men, including former UBS and Citigroup trader Thomas Hayes, in connection with the Libor probe, the first such arrests. The two others were Terry Farr and James Gilmour, who both worked at interdealer broker RP Martin.


Until the rate-rigging scandal broke, Libor had been ignored by regulators and left to the banks to police. From next year, Britain’s FSA will have oversight of it as part of a major overhaul.


The steep fine for UBS is despite the bank, since 2011, cooperating with law-enforcement agencies in their probes. The bank said it received conditional immunity from some regulators.


A similar admission by Barclays in June touched off a political firestorm that forced its chairman and chief executive to quit.


(Additional reporting by the Zurich bureau and London bureau; Writing by Carmel Crimmins and Alex Smith. Editing by Anna Willard and Janet McBride)


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Canada serial killer inquiry finds “systemic bias” by police






(Reuters) – Police made critical errors in pursuing Canadian serial killer Robert Pickton partly because of “systemic bias” against his victims, sex trade workers from a rough Vancouver neighborhood, according to the final report from a public inquiry released on Monday.


Commissioner Wally Oppal was asked by the British Columbia government to investigate, in effect, why Pickton was not caught sooner. Women disappeared from the Downtown Eastside neighborhood for more than a decade before the pig farmer’s 2002 arrest.






“The investigations of missing and murdered women were characterized by blatant police failures, and by public indifference,” Oppal said at a press conference in Vancouver that was frequently interrupted by protesters.


Pickton was convicted of six murders, but prosecutors believe he killed many more – 20 other charges were stayed after he received the maximum possible sentence.


Oppal outlined a string of police errors, from failing to take proper reports when women went missing and communicate adequately with families, to ineffective coordination across jurisdictions. He called his more than 1,200-page report, which is based on eight months of hearings, “Forsaken”.


“After reviewing the evidence of the investigations, I have come to the conclusion that there was systemic bias by the police,” he said.


Oppal recommended that the provincial government establish a compensation fund for the children of the victims and consider creating a regional police force for Vancouver, instead of the patchwork of jurisdictions currently in place.


After Oppal’s announcement, B.C. Minister of Justice Shirley Bond wiped away tears as she spoke to victims’ families.


“I want you to know that, however inadequate these words sound, we are sorry for your loss,” she said. “We will work hard to prevent these circumstances from being repeated in our province.”


She announced the appointment of a former lieutenant governor, Steven Point, to serve as the report’s “champion”, guiding implementation. Bond said the government would immediately give new funding to WISH, a drop-in center for women who work in the Downtown Eastside’s sex trade.


POLICE RESPOND


The Vancouver Police Department said in a short statement that it is committed to learning from its mistakes and will study the report.


“We know that nothing can ever truly heal the wounds of grief and loss but if we can, we want to assure the families that the Vancouver Police Department deeply regrets anything we did that may have delayed the eventual solving of these murders,” it said.


Deputy Commissioner Craig Callens, who commands the Royal Canadian Mounted Police in British Columbia, said in a statement that his force will review the report.


Oppal said many individual police officers were diligent, and he commended several by name. But he said that as a system, the authorities failed because of bias against Pickton’s victims, many of whom were poor and addicted to drugs.


“Would the reaction of the police and the public have been any different if the missing women had come from Vancouver’s (more affluent) west side? The answer is obvious,” he said.


Aboriginal women were overrepresented among the victims, and Oppal repeatedly referred to the broader “marginalization” of aboriginal people in Canada.


“There has to be community responsibility for what has taken place,” he said, highlighting poverty and the conditions on the Downtown Eastside. “The social reality is that racism and gender bias are prevalent within Canadian society, and we must do something to eradicate those.”


Victims’ families and activists were on hand for Oppal’s press conference, and he stopped speaking several times as audience members shouted criticism, chanted and played drums.


The provincial government did not offer funding to a number of community organizations that said they needed support to participate in the lengthy and complex inquiry. In protest, other groups boycotted the process.


In November, several organizations, including the B.C. Civil Liberties Association, released their own report, criticizing the inquiry for, among other things, excluding too many aboriginal women, sex trade workers and drug users.


Bond, the justice minister, said she did not regret the decision not to fund those groups, but said she saw them participating in the future. “I think going forward this is room for us to include other voices.” (Reporting by Allison Martell; Editing by Eric Beech)


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Iran leader gets the clicks with Facebook rumor






DUBAI, United Arab Emirates (AP) — A Facebook page purportedly created by Iran‘s Supreme Leader Ayatollah Ali Khamenei attracted nearly 10,000 followers on Tuesday although the site’s content and style raise serious questions about its authenticity.


Iranian authorities had no immediate comment on the site, which apparently went online last week but only recently gained prominence among social media watchers. Despite the possibility that it is a hoax, the page has generated at least 170 comments — laudatory and derogatory, and nearly all in Farsi — that highlight the deep political divisions in Iran and possibly opposition fervor from expatriate Iranians.






One post compared Khamenei to a celebrated ruler of ancient Persia, Cyrus the Great, who significantly expanded the Persian empire 2,500 years ago.


Another wrote: “Mr. Khamenei, how are you visiting this page? With proxy?”


It was a reference to Iran’s blocking of Facebook and many other Western social media sites, and the efforts to bypass the restrictions using proxy server links from outside Iran.


The U.S. State Department said Monday it will keep tabs on the page, but had no comment on whether it was genuine or not. Spokeswoman Victoria Nuland joked that Washington is curious how many “likes” the Khamenei page receives.


But much about the page — including an informal photo of Khamenei riding in a car — suggested it was not sanctioned by Iran’s top leader. It is also highly unlikely that Khamenei would endorse a banned outlet such as Facebook.


The Net is not unknown territory for Iranian leaders, however. Khamenei, President Mahmoud Ahmadinejad and others have official websites. Also, some senior Iranian clerics issue religious opinions by email.


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“The Office” head Greg Daniels sells tennis comedy to Fox






LOS ANGELES (TheWrap.com) – “The Office” might be preparing to close up shop, but the series’ creator is most definitely still open for business.


Greg Daniels, who birthed the American version of “The Office” – which is preparing to wrap up its run at the end of this season – has sold a half-hour comedy to Fox via Universal Television and his own Deedle-Dee Productions.






The project was sold through Daniels by Tom Gormican (“Are We Officially Dating?”) and Richie Keen (“It’s Always Sunny in Philadelphia”), who are also writing.


The as-yet-untitled project will revolve around Richie, a so-so tennis pro who returns to his college town to get a fresh start on life. There, Richie finds himself torn between living the carefree life with his bar-owning brother and growing up to pursue Kristen, the love of his life.


Daniels will executive-produce the project via his Deedle-Dee Production, along with Gormican and Keen.


Deedle-Dee’s Howard Klein and Tracy Katsky are also executive-producing, along with Oly Obst.


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Saudi Arabia bans Brazil beef imports on mad cow doubts






SAO PAULO (Reuters) – Saudi Arabia has suspended imports of Brazilian beef, Brazil‘s agriculture ministry said on Tuesday, and became the largest country to stop purchases after confirmation of a 2010 case of atypical mad cow disease.


The decision, confirmed by a ministry press official in Brasilia, follows Egypt‘s ban of beef on Monday from Parana state, where a cow that died two years ago had developed atypical bovine spongiform encephalopathy (BSE), or mad cow disease. Egypt will continue to import from other states.






Between January and October, Saudi Arabia imported 31,300 metric tons of beef, putting it among the top 10 largest importers from Brazil, the world’s largest beef exporter.


But top buyers Russia, Hong Kong and Egypt – which took more than half of the 896,000 metric tons of beef that Brazil has exported this year through September – continue to import its beef, suggesting the impact could be limited.


Prior to Saudi Arabia, only Japan, China and South Africa had halted imports of all Brazilian beef since Brazil announced on December 7 that a 13-year-old cow that died in 2010 in Parana tested positive for the protein linked to the development of BSE.


The countries are all minor importers of Brazilian beef.


The cow, which was kept for breeding purposes, never developed BSE and died of other causes. But it tested positive for the causal agent for BSE, a protein called a prion, which can arise spontaneously in elderly cattle.


A similar case of atypical BSE occurred in the United States in April. Like the Brazilian cow, that animal never entered the food chain and there was no major effect on U.S. beef exports.


Brazilian companies like JBS SA,, the world’s biggest meats producer, as well as rival Minerva SA and food processor Marfrig Alimentos SA have played down the impact of the case on their operations.


After it confirmed the case of atypical BSE, the World Animal Health Organization issued a statement maintaining Brazil’s status as a low-risk country for mad cow disease.


“This classification has been followed by important countries, blocks and consumers,” Minerva said in a statement on Tuesday, adding that sales to Saudi Arabia accounted for approximately 2.5 percent of gross sales so far this year.


(Reporting by Patricia Monteiro and Roberto Samora; Writing by Caroline Stauffer; Editing by Jeffrey Benkoe)


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TSX may open higher on “fiscal cliff” hopes






(Reuters) – Toronto’s main stock index looked set to open higher on Tuesday, tracking global markets, fueled by expectation that U.S. lawmakers might reach an agreement to avoid looming tax increases and spending cuts that threaten to hurt the world’s biggest economy.


TOP STORIES






* The differences over how to resolve the “fiscal cliff” narrowed significantly Monday night as President Barack Obama made a counter-offer to Republicans that included a major change in position on tax hikes for the wealthy, according to a source familiar with the talks.


* Knight Capital Group’s board was split between two competing offers for the firm after a meeting on Monday where suitors Getco Holding Company LLC and Virtu Financial LLC presented their sweetened bids to Knight’s directors, sources involved in the talks said.


* British inflation defied forecasts in November to hold at its highest rate since May, reducing the scope for the Bank of England to inject more cash into the struggling economy.


* Germany’s government is considering cutting its forecast for growth in Europe’s largest economy next year from its current estimate of 1 percent due to a weak half year over the winter, Deputy Economy Minister Bernhard Heitzer told Reuters.


MARKET SNAPSHOT


* Canada stock futures traded up 0.26 percent


* U.S. stock futures,, were up around 0.40 percent <.n></.n>


* European shares <.fteu3>, <.stoxx> were up <.eu></.eu></.stoxx></.fteu3>


COMMODITY PRICE MOVES


* Thomson Reuters-Jefferies CRB Index <.trjcrbtr>: 295.92; was up 0.13 percent</.trjcrbtr>


* Gold Futures: $ 1,699.3; up 0.06 percent


* US Crude: $ 87.70; up 0.54 percent


* Brent Crude: $ 108.23; up 0.55 percent


* LME 3-month Copper: $ 8,028.25; fell -0.43 percent


ANALYST RECOMMENDATIONS


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


* AuRico Gold Inc. : BMO resumes coverage with market perform rating, raises price target to C$ 9.50 from C$ 9, after the company completed the sale of its Ocampo project and announced a share buyback program


* First Majestic Silver : Raymond James cuts target price to C$ 26 from C$ 26.75 after the company said it would acquire Orko Silver Corp in a share and cash deal worth C$ 345 million


* Kirkland Lake Gold Inc. : CIBC cuts target to C$ 9 from C$ 15 citing the challenges at the company’s Macassa operations and its greater-than-expected outlook cuts


* Primero Mining Corp.


: RBC cuts target to $ 8.50 from $ 9 after the company said it would acquire Cerro Resources, giving it an element of growth in 2015


* Sun Life Financial Inc. : Canaccord Genuity cuts to sell rating on valuation while CIBC ups target to C$ 26 from C$ 25 after the company said it would sell its U.S. annuities business for $ 1.35 billion


ON THE CALENDAR


* No Major Canadian economic data scheduled for release


* Major U.S. events and data includes Redbook, NAHB index and SEMI book/bill


(Reporting by Kishan Nair)


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