DealBook: Former SAC Trader Is Indicted

A former SAC Capital Advisors portfolio manager was indicted on Friday on securities fraud and conspiracy charges in a case that federal prosecutors have called the most lucrative insider trading scheme ever uncovered.

A federal grand jury in Manhattan indicted the former portfolio manager, Mathew Martoma, a month after the government arrested on him charges that he used inside tips about a clinical drug trial to help SAC earn profits and avoided losses totaling $276 million.

While Stamford, Conn.-based SAC has been touched by several insider trading cases in recent years, there is heightened attention surrounding the Martoma prosecution. For the first time, the government has tied questionable trades to Steven A. Cohen, the billionaire owner of SAC.

“Though disappointing, today’s events come as no surprise,” Mr. Martoma’s lawyer, Charles A. Stillman, said in a statement. “The simple fact is that Mathew Martoma did not trade on inside information, is innocent of all these charges, and we look forward to his ultimate vindication.”

Before Friday’s indictment, there had been speculation that the government, before formally presenting evidence to a grand jury, was trying to gain Mr. Martoma’s cooperation in building a case against Mr. Cohen. Mr. Martoma has rebuffed several earlier efforts by the authorities to enter into plea talks and implicate his boss.

Mr. Cohen has not been charged with any wrongdoing, and a spokesman for SAC has said that he believes that he and SAC have at all times acted appropriately. The Securities and Exchange Commission, which brought a parallel civil action against Mr. Martoma, has warned SAC that it is likely to filed a fraud lawsuit against the firm related to the Martoma case.

Hedge Fund Inquiry

Mr. Martoma, 38, is set to appear in Federal District Court in Manhattan on Jan. 3 for his arraignment, at which time he will enter a plea. The case was assigned to Judge Paul Gardephe, a former federal prosecutor who assumed his seat on the bench in 2008 after an appointment by President George W. Bush.

The government says that Mr. Martoma obtained secret, negative information from a doctor about clinical trials of an Alzheimer’s drug being developed by the pharmaceutical companies Elan and Wyeth. He then, prosecutors say, had a 20-minute telephone conversation with Mr. Cohen.

A day after the phone call, SAC sold $700 million in Elan and Wyeth stock and made a large negative bet on the companies. The companies’ shares plummeted after they announced the disappointing trial results, and SAC booked big profits.

The doctor, Sidney Gilman, is cooperating with prosecutors and has agreed to testify against Mr. Martoma. The government gave Dr. Gilman a non-prosecution agreement, meaning they will not bring criminal charges against him. Such an agreement is highly unusual, legal experts say, and is being used as a pressure point on Mr. Martoma in an effort to get him to “flip” against Mr. Cohen.

Before coming to New York for his arraignment, Mr. Martoma will be spending the holidays with his wife and three young children at home, in Boca Raton, Fla.

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The Lede Blog: Awaiting the End in a Small Turkish Town

Telegraph TV video reports people have gathered in France and Turkey to await the end of days.

SIRINCE, TURKEY — Despite assurances from leading Islamic and Christian clerics and the global skepticism based on scientific facts, as many as 10,000 people are expected to descend on this small Turkish town in the Aegean region in hopes of being among the few to survive the Dec. 21, 2012, doomsday supposedly predicted by the Mayan calendar.

Said to be identified in ancient Mayan hieroglyphs, at least by those who cannot read them, as one of only three places on earth that would escape the predicted Apocalypse, Sirince has been flooded by visitors hoping to ride out the disaster.

At first, Sirince residents were pleasantly surprised, but also a bit uncomfortable in case there could be some possible truth to the myths, to learn that their village — along with Mount Rtanj in Serbia and Bugarach, in the Corbières Mountains of southern France — was pinpointed as the safe locations for humanity to survive.

Discussions of the end of times in Mexico and Serbia, on the eve of the expected apocolypse.

In France, as my colleague Ellen Barry reported, “the authorities plan to bar access to Bugarach mountain in the south to keep out a flood of visitors who believe it is a sacred place that will protect a lucky few from the end of the world.”

But, like hoteliers in Serbia, the merchants of Sirince have been finding ways to make the best out of the influx. The limited number of hotels in the township, which is normally home to fewer than 1,000 people, have been totally booked at record rates as high as $1,000 for a room, and extra security measures have been taken to maintain order as the predicted end neared.

The ancient Greek town, which is only 12 kilometers from Ephesus, a leading ancient historical site in Turkey and a biblical location where the Virgin Mary is said to have once stayed, offers an authentic Aegean experience with good local wine, fine olive oil and traditional handcrafts.

This month, however, doomsday predictions added a humorous and profitable twist to the tourist trade. Ozon Winery came up with the Doomsday wine that sells for around $11, local shops carry T-shirts reading “Doomsday 2012,” snack shops offer Doomsday Pancakes and clairvoyants offer coffee cup readings advertised as Doomsday Fortunetelling.

The Artemis restaurant prepared a Doomsday Menu for visitors, including Doomsday Soup as a starter, Hell Kebab With Fire Rice as the main dish and Forbidden Apple as the dessert, to be followed with the Final Brew Turkish Tea.

On Facebook, Turkish followers have developed a humorous doomsday itinerary to share online that starts with a breakfast at 10 a.m. on Dec. 21, followed by several events, including viewing the meteor at 8 p.m., a seminar at 11 p.m. to discuss why not everyone has come to Sirince and the actual doomsday at midnight — followed by “Meeting in the Afterlife” and a debate asking, “How Come Sirince Was Not Saved?”

Groups are then scheduled to prepare for divine questioning at 4 a.m. on Dec. 22, take a tour around the pearly gates at 5 a.m. and depart for Heaven and Hell as listed at 6 a.m.

“I haven’t met anyone here taking this seriously, and it’s all about having a fine weekend,” said Engin Vatan, owner of Mistik Konak, a small guesthouse, which was fully booked from weeks before. Having moved to Sirince three years ago after visiting the village for more than 20 years, Mr. Vatan said that he had never witnessed such frantic preparations for such a large crowd in all these years.

“Only 24 hours left, there are no signs of Apocalypse yet,” said Sevan Nisanyan, one of the best-known residents of Sirince, who introduced the village to international tourism 20 years ago with a 60-room hotel. “Our own doomsday house party took off with friends visiting from Toronto, Istanbul and all other world cities.”

Life sparkled in the village on Thursday, the coldest day of the month in years, when shops remained opened until late hours, young people filled the streets and residents enjoyed the company of people from all over the world, wishing such rumors would find them every year.

“Many religious experts bash people coming here, saying that only God would know the date of the doomsday,” Mr. Vatan said. “So how can they be so sure that it’s not Dec. 21 if it’s only the God that knows about it?”

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Huge Savings With MyBatua Season’s Sale






The online Islamic clothing store MyBatua.com brings more reasons to smile. The Store announces huge discounts and assured gifts on every purchase of women Abayas, kurtis and Jibabs.


(PRWEB) December 21, 2012






MyBatua.com has extended its seasonal sale on Islamic clothing range for a fortnight to appreciate the huge response of buyers. Being one of the most renowned stores for a vibrant range of Islamic clothing range, MyBatua has announced discounts up to 60% on modern, contemporary, fashionable and exclusive Islamic apparel for men and women.


The online store offers a huge collection of Jibabs, kurtis, abayas and Hijabs for customers, with the choice of customization. All the clothing items displayed at the sale are designed to reflect exclusive style statements of customers. Islamic outfits at MyBatua are available with contemporary and very stylish looks. Jilbabs and Abaya at the store are also made from natural fabric and with contemporary texture.


At http://www.mybatua.com visitors may choose from an extensive range of hijabs available in different styles, plain solid colors, fantastic design and attractive ones for joyful events. Like their name they are very simple to put on without any wrapp or Hijab pin. The store is well-known for its best quality beautiful hijabs and Abayas with an inexpensive price tag.


The best part of the season sale at the store is the availability of the finest range of ethnic clothing for a diverse array of women buyers who never compromise on quality and style. The store features a diverse variety of modest Women’s clothing items that range from conventional Abayas to custom Hijabs designed with finest craftsmanship.


Apart from a pretty good collection of regular and Plus sizes of Jibabs, Abayas and Hijab, customers also get an option to customize clothes without any additional cost. With every purchase at http://www.mybatua.com seasonal sale, customers find huge cash discounts and assured gifts to turn their shopping spree rewarding and a never before experience. MyBatua range comes with free shipping and hassle free delivery to the customers worldwide.    


MyBatua a leading online store for clothing and accessories has now become a one stop shopping place for Islamic fashion clothing. It is catering to all needs of online shoppers for Abayas, Jilbabs, Hijabs, Sherwanis and variety of accessories including brooches and unique handbags suitable for all occasions and weddings.


Amrish Goel
Mybatua.com
+918826009522
Email Information


Internet News Headlines – Yahoo! News





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Michael Phelps voted AP male athlete of year


Now that he's away from the pool, Michael Phelps can reflect — really reflect — on what he accomplished.


Pretty amazing stuff.


"It's kind of nuts to think about everything I've gone through," Phelps said. "I've finally had time to myself, to sit back and say, '... that really happened?' It's kind of shocking at times."


Not that his career needed a capper, but Phelps added one more honor to his staggering list of accomplishments Thursday — The Associated Press male athlete of the year.


Phelps edged out LeBron James to win the award for the second time, not only a fitting payoff for another brilliant Olympics (four gold medals and two silvers in swimming at the London Games) but recognition for one of the greatest careers in any sport.


Phelps finished with 40 votes in balloting by U.S. editors and broadcasters, while James was next with 37. Track star Usain Bolt, who won three gold medals in London, was third with 23.


Carl Lewis is the only other Olympic-related star to be named AP male athlete of the year more than once, taking the award for his track and field exploits in 1983 and '84. The only men honored more than twice are golf's Tiger Woods and cyclist Lance Armstrong (four times each), and basketball's Michael Jordan (three times).


"Obviously, it's a big accomplishment," Phelps said. "There's so many amazing male athletes all over the world and all over our country. To be able to win this is something that just sort of tops off my career."


Phelps retired at age 27 as soon as he finished his final race in London, having won more gold medals (18) and overall medals (22) than any other Olympian.


No one else is even close.


"That's what I wanted to do," Phelps said. "Now that it's over, it's something I can look back on and say, 'That was a pretty amazing ride.'"


The current ride isn't so bad either.


Set for life financially, he has turned his fierce competitive drive to golf, working on his links game with renowned coach Hank Haney as part of a television series on the Golf Channel. In fact, after being informed of winning the AP award, Phelps called in from the famed El Dorado Golf & Beach Club in Los Cabos, Mexico, where he was heading out with Haney to play a few more holes before nightfall.


"I can't really complain," Phelps quipped over the phone.


Certainly, he has no complaints about his swimming career, which helped turn a sport that most Americans only paid attention to every four years into more of a mainstream pursuit.


More kids took up swimming. More advertisers jumped on board. More viewers tuned in to watch.


While swimming is unlikely to ever match the appeal of football or baseball, it has carved out a nice little niche for itself amid all the other athletic options in the United States — largely due to Phelps' amazing accomplishments and aw-shucks appeal.


Just the fact that he won over James shows just how much pull Phelps still has. James had an amazing year by any measure: The league MVP won his first NBA title with the Miami Heat, picking up finals MVP honors along the way, and then starred on the gold medal-winning U.S. basketball team in London.


Phelps already had won the AP award in 2008 after his eight gold medals in Beijing, which broke Mark Spitz's record. Phelps got it again with a performance that didn't quite match up to the Great Haul of China, but was amazing in its own right.


After the embarrassment of being photographed taking a hit from a marijuana pipe and questioning whether he still had the desire to go on, Phelps returned with a vengeance as the London Games approached. Never mind that he was already the winningest Olympian ever. Never mind that he could've eclipsed the record for overall medals just by swimming on the relays.


He wanted to be one of those rare athletes who went out on top.


"That's just who he is," said Bob Bowman, his longtime coach. "He just couldn't live with himself if knew he didn't go out there and give it good shot and really know he's competitive. He doesn't know anything else but to give that kind of effort and have those kind of expectations."


Phelps got off to a rocky start in London, finishing fourth in the 400-meter individual medley, blown out of the water by his friend and rival, Ryan Lochte. It was only the second time that Phelps had not at least finished in the top three of an Olympic race, the first coming way back in 2000 when he was fifth in his only event of the Sydney Games as a 15-year-old.


To everyone looking in, Lochte seemed poised to become the new Phelps — while the real Phelps appeared all washed up.


But he wasn't going out like that.


No way.


Phelps rebounded to become the biggest star at the pool, edging Lochte in the 200 IM, contributing to a pair of relay victories, and winning his final individual race, the 100 butterfly. There were two silvers, as well, leaving Phelps with a staggering resume that will be awfully difficult for anyone to eclipse.


His 18 golds are twice as many as anyone else in Olympic history. His 22 medals are four clear of Larisa Latynina, a Soviet-era gymnast, and seven more than the next athlete on the list. Heck, if Phelps was a nation, he'd be 58th in the medal standings, just one behind India (population: 1.2 billion).


"When I'm flying all over the place, I write a lot in my journal," Phelps said. "I kind of relive all the memories, all the moments I had throughout my career. That's pretty special. I've never done that before. It's amazing when you see it all on paper."


Four months into retirement, Phelps has no desire to get back in the pool. Oh, he'll swim every now and then for relaxation, using the water to unwind rather than putting in one of his famously grueling practices. Golf is his passion at the moment, but he's also found time to cheer on his hometown NFL team, the Baltimore Ravens, and start looking around for a racehorse that he and Bowman can buy together.


Phelps hasn't turned his back on swimming, either. He's got his name attached to a line of schools that he wants to take worldwide. He's also devoting more time to his foundation, which is dedicated to teaching kids to swim and funding programs that will grow the sport even more.


He's already done so much.


"His contribution to the way the world thinks about swimming is so powerful," Bowman said. "I don't think any other athlete has transformed his sport the way he's transformed swimming."


Phelps still receives regular texts from old friends and teammates, asking when he's going to give up on this retirement thing and come back the pool as a competitor.


He scoffs at the notion, sounding more sure of himself now than he did in London.


And if there's anything we've learned: Don't doubt Michael Phelps when he sets his mind on something.


"Sure, I could come back in another four years. But why?" he asked, not waiting for an answer. "I've done everything I wanted to do. There's no point in coming back."


___


Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963


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The Consumer: Grapefruit and Drugs Often Don't Mix

The patient didn’t overdose on medication. She overdosed on grapefruit juice.

The 42-year-old was barely responding when her husband brought her to the emergency room. Her heart rate was slowing, and her blood pressure was falling. Doctors had to insert a breathing tube, and then a pacemaker, to revive her.

They were mystified: The patient’s husband said she suffered from migraines and was taking a blood pressure drug called verapamil to help prevent the headaches. But blood tests showed she had an alarming amount of the drug in her system, five times the safe level.

Did she overdose? Was she trying to commit suicide? It was only after she recovered that doctors were able to piece the story together.

“The culprit was grapefruit juice,” said Dr. Unni Pillai, a nephrologist in St. Louis, Mo., who treated the woman several years ago and later published a case report. “She loved grapefruit juice, and she had such a bad migraine, with nausea and vomiting, that she could not tolerate anything else.”

The previous week, she had been subsisting mainly on grapefruit juice. Then she took verapamil, one of dozens of drugs whose potency is dramatically increased if taken with grapefruit. In her case, the interaction was life-threatening.

Last month, Dr. David Bailey, a Canadian researcher who first described this interaction more than two decades ago, released an updated list of medications affected by grapefruit. There are now 85 such drugs on the market, he noted, including common cholesterol-lowering drugs, new anticancer agents, and some synthetic opiates and psychiatric drugs, as well as certain immunosuppressant medications taken by organ transplant patients, some AIDS medications, and some birth control pills and estrogen treatments. (The full list is online; your browser must be configured to handle PDF files.)

“What drove us to write this paper was the number of new drugs that have come out in the last four years,” said Dr. Bailey, a clinical pharmacologist at the Lawson Health Research Institute, who first discovered the interaction by accident in the 1990s.

How often such reactions occur, however, and how often they are triggered in people consuming regular amounts of juice is debated by scientists. Dr. Bailey believes many cases are missed because doctors don’t think to ask if patients are consuming grapefruit or grapefruit juice.

Even if such incidents are rare, Dr. Bailey argued, they are predictable and entirely avoidable. Many hospitals no longer serve juice, and some prescriptions carry stickers warning patients to avoid grapefruit.

“The bottom line is that even if the frequency is low, the consequences can be dire,” he said. “Why do we have to have a body count before we make changes?”

For 43 of the 85 drugs now on the list, consumption with grapefruit can be life-threatening, Dr. Bailey said. Many are linked to an increase in heart rhythm, known as torsade de pointes, that can lead to death. It can occur even without underlying heart disease and has been seen in patients taking certain anticancer agents, erythromycin and other anti-infective drugs, some cardiovascular drugs like quinidine, the antipsychotics lurasidone and ziprasidone, gastrointestinal agents cisapride and domperidone, and solifenacin, used to treat overactive bladders.

Taken with grapefruit, other drugs like fentanyl, oxycodone and methadone can cause fatal respiratory depression. The interaction also can be caused by other citrus fruits, including Seville oranges, limes and pomelos; one published case report has suggested that pomegranate may increase the potency of certain drugs.

Older people may be more vulnerable, because they are more likely to be both taking medications and drinking more grapefruit juice. The body’s ability to cope with drugs also weakens with age, experts say.

Under normal circumstances, the drugs are metabolized in the gastrointestinal tract, and relatively little is absorbed, because an enzyme in the gut called CYP3A4 deactivates them. But grapefruit contains natural chemicals called furanocoumarins, that inhibit the enzyme, and without it the gut absorbs much more of a drug and blood levels rise dramatically.

For example, someone taking simvastatin (brand name Zocor) who also drinks a small 200-milliliter, or 6.7 ounces, glass of grapefruit juice once a day for three days could see blood levels of the drug triple, increasing the risk for rhabdomyolysis, a breakdown of muscle that can cause kidney damage.

Estradiol and ethinyl estradiol, forms of estrogen used in oral contraceptives and hormone replacement, also interact with grapefruit juice. In one case in the journal Lancet, a 42-year-old woman taking the birth control pill Yaz developed a very serious clot that threatened her leg several days after she started eating just one grapefruit a day, said Dr. Lucinda Grande, a physician in Lacey, Wash., and an author of the case report.

But Dr. Grande also noted that the patient had other risk factors and the circumstances were unusual. “The reason we published it as a case report was because it was so uncommon,” she said. “We need to be careful not to exaggerate this.”

Some drugs that have a narrow “therapeutic range” — where having a bit too much or too little can have serious consequences — require vigilance with regard to grapefruit, said Patrick McDonnell, clinical professor of pharmacy practice at Temple University. These include immunosuppressant agents like cyclosporine that are taken by transplant patients to prevent rejection of a donor organ, he said.

Still, Dr. McDonnell added, most patients suffering adverse reactions are consuming large amounts of grapefruit. “There’s a difference between an occasional section of grapefruit and someone drinking 16 ounces of grapefruit juice a day,” he said.

And, he cautioned, “Not all drugs in the same class respond the same way.” While some statins are affected by grapefruit, for instance, others are not.

Here is some advice from experts for grapefruit lovers:

¶ If you take oral medication of any kind, check the list to see if it interacts with grapefruit. Make sure you understand the potential side effects of an interaction; if they are life-threatening or could cause permanent injury, avoid grapefruit altogether. Some drugs, such as clopidogrel, may be less effective when taken with grapefruit.

¶ If you take one of the listed drugs a regular basis, keep in mind that you may want to avoid grapefruit, as well as pomelo, lime and marmalade. Be on the lookout for symptoms that could be side effects of the drug. If you are on statins, this could be unusual muscle soreness.

¶It is not enough to avoid taking your medicine at the same time as grapefruit. You must avoid consuming grapefruit the whole period that you are on the medication.

¶In general, it is a good idea to avoid sudden dramatic changes in diet and extreme diets that rely on a narrow group of foods. If you can’t live without grapefruit, ask your doctor if there’s an alternative drug for you.


Readers may submit comments or questions for The Consumer by e-mail to consumer@nytimes.com.

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Madoff's Younger Brother Sentenced to 10 Years







NEW YORK (Reuters) - Peter Madoff will serve 10 years in prison for his role in his older brother's multibillion-dollar Ponzi scheme, a U.S. judge said on Thursday.




Peter Madoff, 67, pleaded guilty in June to criminal charges including conspiracy to commit securities fraud for falsifying the books and records of the investment advisory company founded by his brother, Bernard Madoff.


He agreed at the time not to oppose a request by prosecutors for a maximum 10-year prison sentence and agreed to an order requiring him to forfeit a symbolic $143.1 billion. U.S. District Court Judge Laura Taylor Swain approved the sentence on Thursday.


"I am deeply ashamed of my conduct," Peter Madoff said at the sentencing. "I accept full responsibility for my actions."


Of 13 individuals charged criminally in connection with the fraud, Peter Madoff is the only one, other than his brother, who was a member of the Madoff family. Bernard Madoff, 74, was sentenced in 2009 to a 150-year prison term and was ordered to forfeit $170.8 billion.


Customers lost about $20 billion, according to the trustee charged with recovering money for the victims.


Peter Madoff, a lawyer, had been chief compliance officer and a senior managing director at the firm, Bernard L. Madoff Investment Securities.


Prosecutors say Peter Madoff helped create false and misleading documents designed to make it appear that the firm had an effective compliance program. If the firm had such a program, prosecutors said it would have shown that no real trades were taking place.


Peter Madoff also transferred millions of dollars within the Madoff family to avoid tax payments to the Internal Revenue Service and also put his wife on the firm's payroll in a no-show job.


In court papers filed on Monday, John Wing, a lawyer for Peter Madoff, said his client only learned Bernard Madoff had participated in a Ponzi scheme days before it became public.


He argued his client had accepted responsibility and, as a result of the forfeiture, will be "penniless for the rest of his life."


"Peter's life has been shattered by his brother's Ponzi scheme as well as his own conduct and guilty plea, and he will almost certainly live out his remaining days as a jobless pariah, in or out of prison," Wing wrote.


Letters from dozens of friends, family members and business acquaintances in support of Peter Madoff were included in a 190-page filing to the judge. The letters and filing by his lawyers depict him as a younger sibling who looked up to his older brother.


Peter Madoff "idolized his brother more like a father figure" and "never really seemed to be able to stand up to his brother," Karen Binder-Brynes, Peter Madoff's psychologist of nine years, wrote.


Binder-Brynes said her client was "traumatized" by the revelation of the Ponzi scheme after the news became public.


The case is U.S. v. O'Hara et al, U.S. District Court, Southern District of New York, No. 10-cr-00228.


(Reporting by Nate Raymond; Additional reporting by Nick Brown; Editing by Eddie Evans and Tim Dobbyn)


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France Details Plan to Shrink Banking Risk








PARIS — François Hollande began his campaign for the French presidency in January with the declaration that he and his Socialist party were prepared to break from policies that they said had contributed to the financial crisis, notably promising a separation of investment banking from consumer banks.




“My real adversary has no name, no face, no party; it will never be a candidate, even though it governs,” he told supporters at Le Bourget, near Paris. “It is the world of finance.”


Of course, 11 months is a long time in politics. The banking overhaul bill rolled out Wednesday by Mr. Hollande’s finance minister, Pierre Moscovici, was a far cry from the tough talk of January. Les Échos, a French financial daily, summed up the general reaction in a Page One headline: “Hollande’s signature bank law project is on the rails.”


Gone is the strict separation of investment banking from the consumer, or retail, business and its insured deposit base, with banks required simply to “ring-fence” trading for their own books in separately capitalized subsidiaries that remain within the organization. And loopholes in proposed bans on high-frequency trading and agricultural commodity speculation have left those measures essentially toothless.


The banking bill fell well short of a proposal put forth by Erkki Liikanen, the governor of the Bank of Finland, that all banks on the European Union quarantine their risky trading activities. It also fell short of the strictest version of the so-called Volcker plan in the United States, which would prohibit lenders from engaging in proprietary trading altogether.


But French bankers and officials including the Bank of France governor, Christian Noyer, had argued forcefully that Mr. Hollande’s original plans would have put the country’s financial firms at a competitive disadvantage to foreign rivals. Expectations for the bill had been ratcheted down in recent months.


“This isn’t reform for the sake of the banking lobby,” Mr. Moscovici said after he presented the proposal to the cabinet. “It preserves the French universal banking model that has stood the test of time.” The bill represents, he said, a campaign promise Mr. Hollande has kept.


The French Banking Federation said in a statement that the bill would “create new constraints and additional charges at an inopportune moment, when the banks must make considerable efforts to adapt to the Basel III capital rules.”


But analysts played down the significance of the measures, and shares of the biggest French banks — BNP Paribas, Crédit Agricole and Société Générale — rose in Paris on Wednesday.


“It’s all mirrors and smoke,” Christophe Nijdam, a banking analyst at AlphaValue in Paris, said. “In blunt terms, this is not banking reform.”


As evidence, Mr. Nijdam estimated the proposal would require BNP, the largest French lender, to segregate activities that represented just 0.5 percent of its net banking income. In contrast, he said, the Liikanen proposal would require BNP to segregate activities that represented an estimated 13 percent of that income. The difference is important, because if the riskier activities were separated, their financing costs would rise, reducing profitability.


The bill also calls for the creation of a guarantee fund, paid for by a levy on financial institutions, that could be called on to help pay for any banking disaster.


It also gives the government greater reach. The existing Prudential Supervisory Authority would be given the power to wind up any faltering banks. A new agency, the Financial Stability Council, would be charged with anticipating systemic risks to the banking sector, and have the power to order banks to raise capital or take other measures when they encountered difficulties.


Nicolas Véron, a senior fellow at Bruegel, a research institute in Brussels, said the new resolution authority might turn out to be the most important element in the bill. “France has long had a tradition that banks don’t fail,” he said, “and this represents a significant step away from that.”


The banking bill was adopted by the cabinet but must still obtain parliamentary approval. It must also be brought into conformity with emerging European Union rules.


“I was always skeptical that France could do it alone,” Mr. Véron said, adding that it was “not suitable” for the government to be pushing for integration at the E.U. level through a banking union while pushing for a different policy at the domestic level.


On a day when Mr. Hollande was making headlines on a state visit to Algeria, it also fell to Mr. Moscovici to warn that further pension overhauls might be necessary — a revelation that carries political risk for the government.


Mr. Moscovici told RTL radio that changes to the retirement system would have to be considered, despite fixes made in 2010 by Nicolas Sarkozy, Mr. Hollande’s conservative predecessor. Mr. Sarkozy’s changes, including an increase in the retirement age by two years, to 62, were to have kept the system solvent until 2018. But a new study by a government body, the Conseil d’Orientation des Retraites, estimates the retirement plans would have a combined deficit of €18.8 billion, or $23.8 billion, in 2017, up from €15 billion last year.


The study, first reported this week in Le Monde, proposed several means of addressing the gap, including an increase in payroll deductions, a reduction in the average pension, or adding six months to the retirement age.


Mr. Moscovici also sought to play down suggestions of policy differences among members of Mr. Hollande’s government, saying it was natural that ministers would express themselves differently even though they agreed on overall direction.


Referring to the recent dispute with ArcelorMittal, in which Mr. Hollande’s governmentthreatened to take over one of the company’s steel plants, Mr. Moscovici said that temporary nationalization could be “useful” when strategic interests were in play, but could not be an end in itself. He spoke after the industry minister, Arnaud Montebourg, told Le Monde that “temporary nationalization is the solution of the future.”


“Temporary nationalization is a part of the future, not the entire future,” Mr. Moscovici said.


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Google launches ‘scan and match’ music service






LOS ANGELES (AP) — Google is turning on a “scan and match” service for Google Music users to store copies of their songs online, offering for free what Apple charges $ 25 a year for.


The service, which launched Tuesday, cuts uploading time for those who want to save their music libraries online. It scans a user’s computer and gives them online access to the songs it finds, as long as they match the songs on its servers. Otherwise, it will upload songs to a user’s online locker.






The service is similar to Apple Inc.‘s iTunes Match, which includes online storage for 25,000 songs. Google Inc. allows storage for 20,000 songs and allows users to re-download the songs only at the same quality as they were at previously. Apple upgrades songs to iTunes quality.


Amazon runs a similar matching and uploading service called Cloud Player. It costs $ 25 a year for 250,000 songs. A free version is limited to 250 songs.


Google is still a fledgling entrant into music sales since debuting its store in November 2011, though it expects to benefit from the hundreds of millions of devices that use its Android operating system on mobile devices.


According to the NPD Group, Apple accounted for 64 percent of U.S. music sales online, followed by Amazon at 16 percent. Google has no more than 5 percent, according to NPD. Other services make up the rest.


Google had sold songs at a discount at the start, but that is less so the case now. For example, it was selling the top-ranked Bruno Mars song “Locked Out of Heaven” for $ 1.29 on Wednesday, the same as iTunes, and above the 99 cents on Amazon. But its album price was lower at $ 10.49 versus $ 10.99 at both iTunes and Amazon.


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Cruz: Meeting Pinto family was "toughest by far"


EAST RUTHERFORD, N.J. (AP) — For much of his hour-long visit with the family of a 6-year-old boy killed in the Connecticut school shootings, Victor Cruz talked about football, life and young Jack, the child who idolized him.


Tears were shed. Feelings were shared. Cleats and gloves worn by Cruz to honor Jack Pinto at Sunday's game against Atlanta were given to his family.


The New York Giants wide receiver somberly recounted Wednesday his meeting with Pinto's parents and brother in Newtown, Conn.


He struggled in his retelling only when asked about the family's decision to bury the child in the receiver's No. 80 Giants jersey. The father of an infant girl, Cruz stopped for a moment, and his eyes became watery.


"You never go through some circumstances like this and circumstances where a kid faces or a family faces something of this magnitude at their school," Cruz said. "This definitely was the toughest by far."


Jack Pinto was buried on Monday and Cruz telephoned the family to ask whether he could visit them Tuesday.


The family disclosed after Friday's massacre that Cruz was Jack's favorite player. The boy was one of 20 first-graders and six adults killed in the shootings at the Sandy Hook Elementary School.


Cruz drove to Newtown with his girlfriend, Elaina Watley, and their daughter, Kennedy.


"I had no expectations. I was a little nervous," Cruz said. "I just didn't know how I was going to be received. You never know when they are going through something like that. You never know how it is going to go down."


Seeing the family outside the home along with some local children made Cruz feel better.


"They were still pretty emotional, crying and stuff like that," Cruz said. "I saw how affected they were by just my presence alone. I got out and gave them the cleats and the gloves and they appreciated it. The older brother (Ben) was still emotional, so I gave them to him."


Cruz had written "Jack Pinto, My Hero" and "R.I.P. Jack Pinto" on his cleats before the Giants' loss to the Falcons Sunday in Atlanta.


The 26-year-old player best known for his salsa dances after touchdowns, signed autographs for the children before heading inside.


"I didn't want to go in there and make a speech," Cruz said. "I just wanted to go and spend some time with them and be someone they could talk to, and be someone they can vent to, talk about how much of a fans they are of the team, or different times they watched the Super Bowl."


Cruz spent that part of the visit sitting in the chair where Jack's father, Dean, sat when he watched the Giants' Super Bowl win over the New England Patriots in February.


It was a day Jack got to see his favorite team win a championship.


"It was just an emotional time," Cruz said. "I spent a little bit of time with them. We got to smile a little bit, which was good for them. It was a time where I just wanted to be a positive voice, a positive light in the tunnel where it can really be negative, so it was a good time. They are a great family and they're really united at this time and it was good to see."


Cruz said it was strange thinking about a child being buried in his jersey. He did not know how to react. Should he thank the family?


"It leaves you kind of blank," Cruz said. "I am definitely honored by it. I am definitely humbled by it, and it's definitely an unfortunate but humbling experience for me."


The visit also gave Cruz time to reflect, especially looking at his daughter.


"Ever since it happened I've kind of been spending more time with her, just cherishing the little moments, the little time you get with her because you never know when that can be taken from you," he said.


Giants coach Tom Coughlin said he was incredibly proud of Cruz for visiting with the Pinto family.


"Hopefully some of their grief might at least temporarily be suspended in being able to embrace Victor Cruz," Coughlin said, adding what he did speaking volumes of what he has inside.


Baltimore Ravens running back Ray Rice said what Cruz did took heart.


"You've got to be able to put yourself in that family's situation to understand at least what they're going through," Rice said in a conference call with the New York media about Sunday's game against the Giants. "That's what it's about. That's something that you don't just say, 'I'm going to do it.' You do it from the heart, from within and what he did was amazing."


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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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F.D.A. and States Meet About Regulation of Drug Compounders


Mary Calvert/Reuters


Margaret Hamburg, the F.D.A. commissioner, testified on the fungal meningitis outbreak before Congress in November. Dr. Hamburg addressed the need for greater federal oversight of large compounding pharmacies, which mix up batches of drugs on their own, often for much lower prices than major manufacturers charge.







SILVER SPRING, Md. – The Food and Drug Administration conferred with public health officials from 50 states on Wednesday about how best to strengthen rules governing compounding pharmacies in the wake of a national meningitis outbreak caused by a tainted pain medication produced by a Massachusetts pharmacy.




It was the first public discussion of what should be done about the practice of compounding, or tailor-making medicine for individual patients, since the F.D.A. commissioner, Dr. Margaret Hamburg, last month testified in Congress about the need for greater federal oversight of large compounding pharmacies. So far, 620 people in 19 states have been sickened in the outbreak, and 39 of them have died.


Pharmacies fall primarily under state law, and the F.D.A. convened the meeting to get specifics from states on gaps in the regulatory net and how they see the federal role. Large-scale compounding has expanded dramatically since the early 1990s, driven by changes in the health care system, including the rise of hospital outsourcing.


“It is very clear that the health care system has evolved and the role of the compounding pharmacies has really shifted,” Dr. Hamburg said in a telephone interview on Tuesday. She said the laws have not kept pace. “We need legislation that reflects the current environment and the known gaps in our state and federal oversight systems.”


Under current law, compounders are not required to give the F.D.A. access to their books, and about half of all the court orders the agency obtained over the past decade were for pharmacy compounders, though compounders are only a small part of the agency’s regulatory responsibilities.


The F.D.A.'s critics argue that the agency already has all the legal authority it needs to police compounders. They say many compounders have been operating as major manufacturers, shipping to states across the country, and that the F.D.A. should be using its jurisdiction over manufacturers to regulate those companies’ activities.


“There should be one uniform federal standard that is enforced by one agency – the F.D.A.,” said Michael Carome, deputy director of Public Citizen’s Health Research Group, a nonprofit consumer organization, who has been a critic of the agency’s approach. “They have been lax in enforcing that standard.”


But Dr. Hamburg contends that the distinction is not so simple. Lumping large compounders in with manufacturers would mean they would have to file new drug applications for every product they make, a costly and time-consuming process that is not always necessary for the products they make, which may include IV feeding tube bags. Dr. Hamburg has proposed creating a new federal oversight category for large-scale compounders, separate from manufacturers.


“What concerns me is the idea that we could assert full authority over some of these facilities as though they were manufacturers, as though there were an on-off, black-white option,” Dr. Hamburg said. “That is a heavy-handed way to regulate a set of activities that can make a huge positive difference in providing necessary health care to people.”


Large-scale compounders play an important role in the health care supply chain when they produce quality products, F.D.A. officials say. They fill gaps during shortages and supply hospitals with products that can be made more safely and cost-effectively in bulk than in individual hospitals. Officials said they wanted to make sure the products made by such suppliers were safe, but were also concerned about disrupting that supply.


Carmen Catizone, head of the National Association of Boards of Pharmacy, said states are not equipped to regulate the large-scale compounders and that the F.D.A. needs to find a middle path for regulating them.


“Either hospitals are not going to like the solution, or the manufacturers aren’t going to like the fact that these guys get a shorter path,” he said. “But something’s got to give.”


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