Marxist Group Claims Attack on Embassy in Turkey





ISTANBUL — A Marxist group with a history of political violence in Turkey claimed responsibility on Saturday for a suicide bombing at the American Embassy in Ankara the day before, releasing a statement calling the United States “the murderer of the peoples of the world.”




The statement, which also denounced American foreign policy, was released by the Revolutionary People’s Liberation Party-Front, and a translation was distributed by the SITE Intelligence Group, which monitors the communications of extremist groups. The message, which was posted on a Web site that has previously carried statements from the group, condemned Turkey’s policy of supporting Syrian rebels fighting the government of President Bashar al-Assad and cooperation with the United States.


After conducting DNA tests, the Turkish authorities on Saturday identified the man who detonated himself at the embassy, killing himself and a Turkish embassy guard, as Ecevit Sanli, 40, also known as Alisan Sanli. Mr. Sanli was a convicted terrorist who had twice attacked government facilities in Istanbul but was released from prison under an amnesty program. Earlier Saturday, officials in the Black Sea town of Ordu said he was a resident.


The Ankara police said they had detained three people thought to have helped Mr. Sanli and had found a handgun linked to the militant group. They also released security footage from the embassy in which Mr. Sanli was shown pretending to be a courier.


The statement by the group included two photographs of Mr. Sanli. In one, he is holding an assault rifle, and a banner bearing the hammer-and-sickle symbol of communism is behind him.


The attack, coming in the wake of the attack on an American diplomatic mission y in Benghazi, Libya, by Islamic extremists in September, initially raised fears that it was the work of jihadists. That the bomber has ties to a relatively minor Marxist group is likely to challenge assumptions about the nature of international terrorism and the risks to American interests abroad. American officials, however, have not confirmed the identity of the attacker or a motive, and the United States plans to investigate.


In a statement on Saturday, Ordu officials said Mr. Sanli spent four years in prison after being arrested in 1997 for attacking a military hostel and police station in Istanbul. He was released in 2001 under an amnesty program for inmates with medical conditions, Muammer Guler, the interior minister, said. Mr. Sanli reportedly had Wernicke-Korsakoff syndrome, a brain disorder caused by malnutrition that he acquired during a jailhouse hunger strike.


The authorities said Mr. Sanli lobbed a hand grenade during Friday’s attack just before detonating his explosives-packed vest, suggesting that there were actually two explosions.


The Turkish newspaper Hurriyet reported that Mr. Sanli had fled to Germany after being released from prison, and according to the semiofficial Anatolian News Agency, returned to Turkey illegally only a few days before the attack by taking a boat from a Greek island across the Aegean.


The group has struck American and other Western targets in Turkey before, including during the gulf war, and in its statement, the group condemned NATO’s recent deployment of Patriot missile batteries in southern Turkey to protect against cross-border strikes from Syria.


In a report published several days before the bombing, Soner Cagaptay, director of the Turkish research program at the Washington Institute for Near East Policy, warned that the country’s support of Syrian rebels was rallying Turkey’s extreme left.


“The country’s political landscape still bears vestiges of violent leftist movements from the 1970s, as well as deeply anti-American ultranationalism,” he wrote.


This article has been revised to reflect the following correction:

Correction: February 2, 2013

An earlier version of this article misstated, based on information supplied by the authorities, the year when Ecevit Sanli was released from prison. It was 2001, not 2002.



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The Next PlayStation: 5 Lessons I Hope Sony’s Learned






From wishful thinking to shockingly sudden all-but-certainty, Sony‘s next game system may be here at last (I’ll try to avoid calling it things Sony hasn’t, like “PlayStation 4″ or “Orbis”), apparently head-faking Microsoft to debut earlier than expected at what’ll no doubt be a media circus in New York (and online) come Feb. 20.


The event invite cleared my inbox last night accompanied by, well, see for yourself in Sony’s slick dubstep tease above. Sony labeled the event “PlayStation Meeting,” which is sort of like calling E3 “L.A. Occurrence,” but, well, marketing.






(MORE: How to Watch the Super Bowl Live Online)


At this point, your guess would have been as good as mine: probably the next PlayThing, because what else is Sony going to hype for three weeks and drag folks to from all corners of the earth? Still, I could have flown around the room on a broomstick: a PlayStation VitaPad, a PlayStation Phone (pPhone!), or heck, even Sony’s answer to Google‘s Project Glass (Sony GlassStation!).


But no, the Wall Street Journal went and spoiled the fun by claiming that, yes indeed, Sony’s going to give us a peek at its next games console and ship the thing later this year, probably around the holidays. I consider that slightly more plausible than hearsay since it’s the Journal, but bear in mind it’s still a claim based on unidentified sources (the Journal pulls the phrase “people familiar with the matter” off the shelf at least four times).


No surprise, the story’s taken off like a guy air-riding a horse, prompting a bunch of people to throw odd notions at the wall based on even sketchier sourcing. Instead of regaling you with tales of mystical multi-core processors pulling contextually meaningless speeds, why don’t we look back at some of the things I suspect we’d all agree Sony needs to do better the next time around.


Don’t launch at $ 500-$ 600. I still can’t imagine what Sony was thinking in 2006 (well, beyond “we can barely afford to build this franken-thing!”). Yes, everyone loved the PlayStation 2, and no, not enough to spend that kind of money on the PlayStation 3. No, I don’t know what the company ought to sell a new game console for, but I’ll refer you down the aisle to the Wii U: currently struggling at $ 300-$ 350. If Sony launches higher (and doesn’t include something like a free iPad), especially in a weak economy, it may find it’s looking for dance partners all over again.


(MORE: Are Weak Wii U Sales a Bellwether of Shifting Game Demographics?)


The new PlayStation Network (or whatever Sony rebrands it) needs to be seamless. None of this irritating “synchronizing trophies” business, waiting ages for features like background downloads or “cross-voice game chat is really coming!” except it’s really not. Also, while my lizard brain still sort of responds to the nerdy elegance of the PlayStation 3′s XrossMediaBar, after all these years there’s just something warmer and friendlier about Xbox LIVE. I have a roughly equal number of friends in both ecosystems, so it’s not that; I’ve just come to prefer navigating TV environments that feel a little less clinical. (The Journal says Sony’s new system is more social media-driven, so unless Sony’s launching a standalone answer to Facebook, I expect we’ll see the interface sporting newfangled riffs on Twitter/Facebook/Instagram/Google+/etc. integration.)


Resist the urge to go all three-ring-circus on us. Sitting through Sony/Microsoft pressers sometimes feels like watching Tim Robinson and Will Ferrell squeeze bottles of Cookie Dough Sport over their heads. Spare us the strobe lights and sizzle reels and maybe just level with us like we’re adults and not a bunch of Red Bull-amped teenage boys at a Lady Gaga concert.


Don’t make it all about the graphics. I mean sure, we all like pretty games, but 5x, 10x, 100x the PS3′s oomph…it’s now all kind of abstract and pointless given how sophisticated games already look today. I want to know what those extra cycles are going to do for me gameplay-wise, and I don’t mean visually, e.g. better “god-rays” or “subsurface scattering” or a gazillion bendable blades of grass. Can this thing sustain an artificially intelligent being that’d pass a Turing Test? And can you work that into a game that’s actually fun to play?


Don’t be the last kid to the party. Hello, stuff like Grand Theft Auto IV and Skyrim DLC. Microsoft scored coup after coup this round in terms of timed exclusive or outright exclusive content. And yes, I’m sure it cost the company a pretty penny, but gamers are going to go where the games they want to play live. If their sense is that’s not Sony, well, it’s not rocket science. And some of the dropped balls this round were doozies: Skyrim‘s one of the bestselling games of all time and it’s been out since November 2011. Bethesda just announced today that PS3 users can finally get their hands on the downloadable content in a few weeks, whereas Xbox 360 users have had at it for months.


MORE: 3 Things That Still Worry Me About BlackBerry


Gaming News Headlines – Yahoo! News





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Culliver to have sensitivity training, help youth


NEW ORLEANS (AP) — San Francisco 49ers cornerback Chris Culliver will begin sensitivity training and education immediately after the Super Bowl following his anti-gay remarks this week, then likely start volunteer work with at-risk homosexual youth nationwide.


Culliver is scheduled to begin working with "The Trevor Project," an organization that provides crisis and suicide intervention to lesbian, gay, bisexual and transgender youth, according to his public relations representative, Theodore Palmer.


"He's so passionate about youth and people being comfortable with who they are and accepted by all," Palmer said in a phone interview Saturday. "He's excited to learn. The plan is with The Trevor Project, and their concerns are that he is genuine about his words."


Palmer said once the education process is done, Culliver could eventually spend time volunteering at a crisis center and in other formats.


"It's just an opportunity for him to learn about his comments and educate himself about the LGBT community, and grow," Palmer said. "It's the first step in learning about his words."


During Tuesday's Super Bowl media day at the Superdome, the second-year defender responded to questions from comedian Artie Lange by saying he wouldn't welcome a gay player in the locker room. He also said the 49ers didn't have any homosexual players and, if they did, those players should leave. He later apologized, facing a large group of media members for nearly an hour Thursday.


He realizes some will still question his sincerity.


"I hope people understand because it's coming directly from me and I'm talking to the whole world," Culliver said. "It is not (how I feel) in my heart."


The 49ers — who play the Baltimore Ravens on Sunday — released a statement saying they rejected Culliver's comments, and CEO Jed York vowed to take a leadership role with the LGBT community and groups back home in the Bay Area — including taking Culliver around himself, he said.


The interview Tuesday began with Lange asking Culliver about his sexual plans with women during Super Bowl week. Lange followed up with a question about whether Culliver would consider pursuing a gay man.


"I don't do the gay guys, man. I don't do that," Culliver said during the 1-minute taped interview. "Ain't got no gay people on the team. They gotta get up outta here if they do. Can't be with that sweet stuff."


Lange asked Culliver to reiterate his thoughts, to which the player said, "It's true." He added he wouldn't welcome a gay teammate — no matter how talented.


"Nah. Can't be ... in the locker room, nah," he said. "You've gotta come out 10 years later after that."


When the interview became big news Wednesday, Culliver said he met for more than an hour with general manager Trent Baalke and coach Jim Harbaugh, and also spoke with teammates like veteran safety Donte Whitner — who has a gay family member and has been outspoken in his support for the community.


"You've got to be very careful what you say," Hall of Fame receiver Jerry Rice said of Super Bowl week. "I'm sure he regrets making those remarks."


The 24-year-old Culliver, a third-round draft pick in 2011 out of South Carolina, made 47 tackles with two interceptions and a forced fumble this season while starting six games for the NFC champion Niners.


He had his first career postseason interception in San Francisco's 28-24 win at Atlanta for the NFC title.


___


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


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Ferrol Sams, Doctor Turned Novelist, Dies at 90


Ferrol Sams, a country doctor who started writing fiction in his late 50s and went on to win critical praise and a devoted readership for his humorous and perceptive novels and stories that drew on his medical practice and his rural Southern roots, died on Tuesday at his home in Fayetteville, Ga. He was 90.


The cause, said his son Ferrol Sams III, also a doctor, was that he was “slap wore out.”


“He lived a full life,” his son said. “He didn’t leave anything in the tank.”


Dr. Sams grew up on a farm in the rural Piedmont area of Georgia, seven mud-road miles from the nearest town. He was a boy during the Depression; books meant escape and discovery. He read “Robinson Crusoe,” then Mark Twain and Charles Dickens. One of his English professors at Mercer University, in Macon, suggested he consider a career in writing, but he chose another route to examining the human condition: medical school.


When he was 58 — after he had served in World War II, started a medical practice with his wife, raised his four children and stopped devoting so much of his mornings to preparing lessons for Sunday school at the Methodist church — he began writing “Run With the Horsemen,” a novel based on his youth. It was published in 1982.


“In the beginning was the land,” the book begins. “Shortly thereafter was the father.”


In The New York Times Book Review, the novelist Robert Miner wrote, “Mr. Sams’s approach to his hero’s experiences is nicely signaled in these two opening sentences.”


He added: “I couldn’t help associating the gentility, good-humored common sense and pace of this novel with my image of a country doctor spinning yarns. The writing is elegant, reflective and amused. Mr. Sams is a storyteller sure of his audience, in no particular hurry, and gifted with perfect timing.”


Dr. Sams modeled the lead character in “Run With the Horsemen,” Porter Osborne Jr., on himself, and featured him in two more novels, “The Whisper of the River” and “When All the World Was Young,” which followed him into World War II.


Dr. Sams also wrote thinly disguised stories about his life as a physician. In “Epiphany,” he captures the friendship that develops between a literary-minded doctor frustrated by bureaucracy and a patient angry over past racism and injustice.


Ferrol Sams Jr. was born Sept. 26, 1922, in Woolsey, Ga. He received a bachelor’s degree from Mercer in 1942 and his medical degree from Emory University in 1949. In his addition to his namesake, survivors include his wife, Dr. Helen Fletcher Sams; his sons Jim and Fletcher; a daughter, Ellen Nichol; eight grandchildren; and nine great-grandchildren.


Some critics tired of what they called the “folksiness” in Dr. Sams’s books. But he did not write for the critics, he said. In an interview with the Georgia Writers Hall of Fame, Dr. Sams was asked what audience he wrote for. Himself, he said.


“If you lose your sense of awe, or if you lose your sense of the ridiculous, you’ve fallen into a terrible pit,” he added. “The only thing that’s worse is never to have had either.”


This article has been revised to reflect the following correction:

Correction: February 2, 2013

An earlier version of this obituary misstated the town in which Mr. Sams died. It was Fayetteville, Ga., not Lafayette, Ga.



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Americans Closest to Retirement Were Hardest Hit by Recession


David Maxwell for The New York Times


Susan Zimmerman, 62, has three part-time jobs.









Michael Stravato for The New York Times

Arynita Armstrong, 60, at her home in Willis, Tex. She last worked five years ago. “When you’re older, they just see gray hair and they write you off,” she says.






In the current listless economy, every generation has a claim to having been most injured. But the Labor Department’s latest jobs snapshot and other recent data reports present a strong case for crowning baby boomers as the greatest victims of the recession and its grim aftermath.


These Americans in their 50s and early 60s — those near retirement age who do not yet have access to Medicare and Social Security — have lost the most earnings power of any age group, with their household incomes 10 percent below what they made when the recovery began three years ago, according to Sentier Research, a data analysis company.


Their retirement savings and home values fell sharply at the worst possible time: just before they needed to cash out. They are supporting both aged parents and unemployed young-adult children, earning them the inauspicious nickname “Generation Squeeze.”


New research suggests that they may die sooner, because their health, income security and mental well-being were battered by recession at a crucial time in their lives. A recent study by economists at Wellesley College found that people who lost their jobs in the few years before becoming eligible for Social Security lost up to three years from their life expectancy, largely because they no longer had access to affordable health care.


“If I break my wrist, I lose my house,” said Susan Zimmerman, 62, a freelance writer in Cleveland, of the distress that a medical emergency would wreak upon her finances and her quality of life. None of the three part-time jobs she has cobbled together pay benefits, and she says she is counting the days until she becomes eligible for Medicare.


In the meantime, Ms. Zimmerman has fashioned her own regimen of home remedies — including eating blue cheese instead of taking penicillin and consuming plenty of orange juice, red wine, coffee and whatever else the latest longevity studies recommend — to maintain her health, which she must do if she wants to continue paying the bills.


“I will probably be working until I’m 100,” she said.


As common as that sentiment is, the job market has been especially unkind to older workers.


Unemployment rates for Americans nearing retirement are far lower than those for young people, who are recently out of school, with fewer skills and a shorter work history. But once out of a job, older workers have a much harder time finding another one. Over the last year, the average duration of unemployment for older people was 53 weeks, compared with 19 weeks for teenagers, according to the Labor Department’s jobs report released on Friday.


The lengthy process is partly because older workers are more likely to have been laid off from industries that are downsizing, like manufacturing. Compared with the rest of the population, older people are also more likely to own their own homes and be less mobile than renters, who can move to new job markets.


Older workers are more likely to have a disability of some sort, perhaps limiting the range of jobs that offer realistic choices. They may also be less inclined, at least initially, to take jobs that pay far less than their old positions.


Displaced boomers also believe they are victims of age discrimination, because employers can easily find a young, energetic worker who will accept lower pay and who can potentially stick around for decades rather than a few years.


“When you’re older, they just see gray hair and they write you off,” said Arynita Armstrong, 60, of Willis, Tex. She has been looking for work for five years since losing her job at a mortgage company. “They’re afraid to hire you, because they think you’re a health risk. You know, you might make their premiums go up. They think it’ll cost more money to invest in training you than it’s worth it because you might retire in five years.


“Not that they say any of this to your face,” she added.


When older workers do find re-employment, the compensation is usually not up to the level of their previous jobs, according to data from the Heldrich Center for Workforce Development at Rutgers University.


In a survey by the center of older workers who were laid off during the recession, just one in six had found another job, and half of that group had accepted pay cuts. Fourteen percent of the re-employed said the pay in their new job was less than half what they earned in their previous job.


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The Lede Blog: Video and Images of New Clashes in Cairo

Last Updated, 6:04 p.m. As our colleagues Kareem Fahim and David Kirkpatrick report, Egyptian protesters clashed with riot police officers outside the presidential palace in Cairo on Friday night.

Protesters hurled rocks and launched fireworks over the building’s outer wall, setting fire to a guard tower and drawing a robust response from security forces, who protesters said fired tear gas, rubber bullets and birdshot, causing many to flee through the streets of an upper-class Cairo neighborhood.

Video, photographs and text reports uploaded by activist bloggers and journalists on the scene showed the clashes, as protesters hurled rocks and launched fireworks over the palace walls, setting fire to a guard tower, and officers fired tear gas, rubber bullets and birdshot, causing many to flee through the streets of the upper-class Cairo neighborhood. In one instantly notorious incident that unfolded on live television, officers stripped and beat a protester outside the palace. Graphic images of the beating were recorded from at least two angles, and broadcast on both Egypt’s ONTV and Al Hayat, a satellite news channel.

A well-known rights lawyer, Ragia Omran, reported on Twitter that one protester died after being shot in the head and neck outside the palace.

Earlier on Friday, video posted online by Tahrir News, an independent news organization, appeared to show officers setting fire to a small tent city that protesters had erected outside the walls of the palace.

Members of the Egyptian security forces set fire on Friday to a tent city erected by protesters outside the presidential palace

Video posted online by Magdy Samaan, an Egyptian journalist, appeared to show protesters hurling Molotov cocktails and setting a guard tower alight, as the crowd chanted for President Mohamed Morsi to “Leave!” Off camera, protesters could also be heard chanting “The People Want the Fall of the Regime,” another signature chant of the Egyptian revolution.

Video shot by an Egyptian journalist outside the presidential palace in Cairo on Friday showed protesters setting fire to a guard tower.

After the protests against Egypt’s new Islamist president turned violent, the Muslim Brotherhood’s official English-language Twitter feed, @Ikhwanweb, drew attention to video of protesters throwing rocks and launching fireworks over the walls of the palace from Al-Hayat, a satellite news channel. Mr. Morsi, long a senior leader of the Brotherhood, was the movement’s candidate for the presidency.

Video aired by Al-Hayat TV station showed protesters throwing rocks and launching fireworks over the walls of the presidential palace in Cairo.

Mr. Morsi’s office posted condemned the protesters in updates on Twitter, and even tried to reclaim the mantle of the 2011 revolution.

Until Mr. Morsi was sworn into office last summer, protests outside the presidential palace were all but unheard of and clashes with the hated security forces typically took place outside police stations or the downtown headquarters of the Interior Ministry. As the activist blogger Wael Eskandar noted, that changed in early December.

After Islamist supporters of the president attacked protesters outside the palace in December, the Muslim Brotherhood was blamed for provoking the violence. On Friday, a note posted on Ikhwanweb said that the Brotherhood would not call on rank-and-file members to defend the presidential palace.

As the clashes between the security forces and protesters escalated on Friday night, Bel Trew, a British journalist for the state news site Ahram Online, reported from the scene that officers of the Central Security Forces were shooting at protesters, or those they believed to be protesters, at close range.

She also reported seeing the police shoot one man with birdshot at close range outside a Costa Cafe. He was not a protester, but a cafe employee leaving work, she said.

Protesters also gathered in Tahrir Square in downtown Cairo on Friday, where witnesses said the scene was much more subdued.

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Apple edges out Samsung for mobile phone sales lead in fourth quarter






SAN FRANCISCO (Reuters) – Apple Inc became the top mobile phone seller for the first time in the lucrative U.S. market during the fourth quarter of 2012, outshining arch rival Samsung Electronics Co Ltd, a report by Strategy Analytics showed.


Apple‘s share of the U.S. mobile phone market, including feature phones and smartphones, jumped to 34 percent from 26 percent, while Samsung’s share grew to 32.3 percent from 31.8 percent, the research firm said.






Samsung had been the top mobile phone vendor in the US since 2008, the firm said. Indeed, for the full year, Samsung still held the crown for mobile phone sales; it had a 31.8 percent share of the U.S. market in 2012, against Apple’s 26.2 percent.


Apple investors have recently been anxious about the future growth prospects for the company amid intense competition from Samsung’s cheaper phones, powered by Google’s Android software, and signs the premium smartphone market may be close to saturation in developed markets.


Overall, mobile phone shipments rose 4 percent to 52 million units in the U.S. during the fourth quarter of 2012, driven by strong demand for 4G smartphones and 3G feature phones.


But in all of 2012, U.S. mobile phone shipments fell 11 percent to 166.9 million, Strategy Analytics said.


Apple sold 17.7 million iPhones in the U.S. in the fourth quarter, up 38 percent from the previous year, driven by aggressive marketing of its new iPhone 5 and steep carrier subsidies, the firm said. Samsung shipped 16.8 million phones during the same period.


In the international arena, Samsung Electronics, with a range of handsets, has overtaken Apple as the world’s top smartphone seller.


(Reporting by Poornima Gupta; Editing by Bernadette Baum)


Tech News Headlines – Yahoo! News





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NFL's Goodell: Proper tackling, HGH key issues


NEW ORLEANS (AP) — NFL Commissioner Roger Goodell says the league needs to make football safer by doing more to eliminate blows to the head and knees and by suspending players for illegal hits.


During his annual news conference two days before the Super Bowl, Goodell also said Friday he wants a "new generation" of the Rooney Rule because "we didn't have the outcomes we wanted" when none of 15 recent coach and general manager jobs were given to a minority candidate.


Goodell hopes and expects testing for human growth hormone to start next season, even though the league and the players' union are still at an impasse after 18 months of back-and-forth.


He vowed to be "relentless" about keeping pay-for-pain bounties out of the game.


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Well: Gluten-Free Muffin Recipes

For people who need to eliminate gluten from their diet, baking becomes a challenge. Beginners often find gluten-free baked goods too dense. Even the Recipes for Health columnist Martha Rose Shulman didn’t like the flavor of a commercial gluten-free flour mix, which left her gluten-free cookies and tart-shells with a strong taste of bean flour. As a result, she created her own gluten-free mix for baking muffins. She writes:

My son Liam still doesn’t know that the muffins he has been devouring all week are gluten-free.

I put together my own gluten-free flour mix, one without bean flour, and turned to America’s favorite Gluten-Free Girl, Shauna James Ahem, for guidance. I was already thinking about making muffins, and I wanted a mix that could replace the whole wheat flour I usually use in conjunction with other grains or flours. Her formula for a whole-grain flour mix is simple – 70 percent ground gluten-free grain like rice flour, millet flour, buckwheat flour or teff (the list on her site is a long one) and 30 percent starch like potato starch, cornstarch or arrowroot.

For this week’s recipes, I used what I had, which was brown rice flour, potato starch and cornstarch – 20 percent potato starch and 10 percent cornstarch — and that’s the basis for the nutritional analyses of this week’s recipes. I used this mix in conjunction with a gluten-free meal or flour, so the amount of pure starch in the batters is much less than 30 percent.

When you bake anything it is much simpler and results are more consistent if you use grams and scale your ingredients. This is especially true with gluten-free baking, since you are working with grain and starch formulas. Digital scales are not expensive and I urge you to switch over to this method if you like to bake. I have given approximate cup measures so the recipes will work both ways, but scaling is more accurate.

Here are five ways to bake gluten-free muffins:

Gluten-Free Banana Chocolate Muffins: These dark chocolate muffins taste more extravagant than they are.


Gluten-Free Cornmeal, Fig and Orange Muffins: A sweet and grainy cornmeal mixture makes for a delicious muffin.


Gluten-Free Whole Grain Cheese and Mustard Muffins: A savory muffin with a delicious strong flavor.


Gluten-Free Buckwheat, Poppy Seed and Blueberry Muffins: The buckwheat flour is high-fiber and makes a dark, richly-flavored muffin.


Gluten-Free Cornmeal Molasses Muffins: Strong molasses provides a good source of iron in an easy-to-make muffin.


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DealBook: Dutch Government Takes Control of SNS Reaal

The Dutch government on Friday nationalized one of the country’s biggest financial institutions, SNS Reaal, after the troubled company failed to find a private sector buyer.

The Dutch finance minister, Jeroen Dijsselbloem, said that the government would spend 3.7 billion euros ($5 billion) in taxpayer money to clean up the bank, which has struggled for years with unprofitable real estate loans. Mr. Dijsselbloem said in a statement that the takeover “was made necessary by the extreme situation” of the bank and the “serious and immediate threat posed by that situation to the stability of the financial system.”

Shareholders and subordinated bondholders of SNS Reaal will be wiped out, effective immediately, Mr. Dijsselbloem said. The holders of senior debt will be repaid and depositors will not lose their money.

The move comes as Europe continues to deal with sluggish economies and debt problems. Last year, Spain took over Bankia, a mortgage lender also hurt by property deals.

Problems at SNS Reaal, which is based in Utrecht, had intensified in the last two weeks as depositors began losing faith, fearing talks with potential buyers would fail. The company had been reportedly negotiating possible investments from the private equity firm CVC Capital Partners and other funds in the hope of averting disaster.

Three top executives of SNS Reaal said in a statement that they were stepping down, as “they do not want to and cannot take responsibility for the nationalization scenario.” The three — Ronald R. Latenstein, the bank’s chief executive; Rob Zwartendijk, the chairman; and Ference Lamp, the chief financial officer — said they had done “everything in their power” to avoid a bailout.

“The persons in question do not advocate the chosen solution, but respect the choice of the Ministry of Finance,” according to a statement.

The announcement is the latest in a spate of recent bad news from European banks. On Thursday, Deutsche Bank posted a surprise fourth-quarter loss of $3 billion, and problems continue at Monti dei Paschi di Siena, which received a bailout from the Italian government last year.

The case of SNS Reaal also adds urgency to efforts to set up procedures to identify and wind down troubled banks in a way that does not burden taxpayers. European leaders and regulators agree that they need a way to dispose of bad banks but have not been able to agree on a way to do so. Despite a law last year giving authorities in the Netherlands more power to intervene in troubled banks, Dutch citizens will still wind up picking up the bill for SNS.

In fact, some of the impetus for the Dutch government’s action might have come from the planned transfer of bank supervisory responsibility away from national regulators to the European Central Bank, as well as the pressure of new bank regulations. Regulators and industry executives may have decided that it is best to act now rather than let the central bank dictate their actions.

The move also signaled the transfer of another of the Netherlands’ biggest financial institutions into state hands. The Dutch business of ABN Amro was nationalized in October 2008 after the collapse of Lehman Brothers sent the world financial system into shock.

ABN Amro had been taken over and split up by Royal Bank of Scotland, Fortis and Santander in a 2007 deal that has since come to epitomize the worst excesses of the credit bubble. Both Royal Bank of Scotland and Fortis, once the biggest Belgian financial house, were laid low by the debt burdens they took on for the ABN Amro deal when the credit crisis struck.

The ABN Amro deal also marred SNS Reaal, which needed a bailout in 2008 after it acquired the broken-up lender’s property business. That bailout has not been fully repaid.

As part of the deal announced Friday, the state will forgive 800 million euros of the unpaid bailout loans, inject 2.2 billion euros into SNS and write off 700 million euros from the bank’s property portfolio.

The government will also require the country’s top three banks — ING, ABN Amro and Rabobank — to contribute 1 billion euros next year in a onetime payment. ING estimated that its share of the cost of bailing out SNS Reaal would come to 300 million to 350 million euros, but said the impact on its finances would be limited.


This post has been revised to reflect the following correction:

Correction: February 1, 2013

An earlier version of the article incorrectly spelled the name of the nationalized company. It is SNS Reaal, not SNS Reall.

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