HSBC to pay $1.9 billion U.S. fine in money-laundering case

(Reuters) – HSBC Holdings Plc agreed to pay a record $ 1.92 billion in fines to U.S. authorities for allowing itself to be used to launder a river of drug money flowing out of Mexico and other banking lapses.

Mexico‘s Sinaloa cartel and Colombia’s Norte del Valle cartel between them laundered $ 881 million through HSBC and a Mexican unit, the U.S. Justice Department said on Tuesday.

In a deferred prosecution agreement with the Justice Department, the bank acknowledged it failed to maintain an effective program against money laundering and failed to conduct basic due diligence on some of its account holders.

Under the agreement, which was reported by Reuters last week, the bank agreed to take steps to fix the problems, forfeit $ 1.256 billion, and retain a compliance monitor. The bank also agreed to pay $ 665 million in civil penalties to regulators including to the Office of the Comptroller of the Currency, the Federal Reserve, and the Treasury Department.

“We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organization from the one that made those mistakes,” HSBC Chief Executive Stuart Gulliver said.

THE PLACE TO LAUNDER MONEY

HSBC‘s money-laundering lapses in Mexico and elsewhere were cited in an extensive Senate report earlier this year, but the documents filed in court on Tuesday provided new details.

Despite the known risks of doing business in Mexico, the bank put the country in its lowest risk category, which excluded $ 670 billion in transactions from the monitoring systems, according to the documents.

Bank officials repeatedly ignored internal warnings that HSBC‘s monitoring systems were inadequate, the Justice Department said. In 2008, for example, the CEO of HSBC Mexico was told that Mexican law enforcement had a recording of a Mexican drug lord saying that HSBC Mexico was the place to launder money.

Mexican traffickers used boxes specifically designed to the dimensions of an HSBC Mexico teller’s window to deposit cash on a daily basis.

The agreement also described a vastly understaffed compliance department. At times, only one to four employees were responsible for reviewing alerts identifying suspicious wire transactions. When HSBC processed bulk cash, a business it calls Banknotes, only one or two compliance officials oversaw transactions for 500 to 600 customers, the Justice Department said.

Compliance was “woefully inadequate,” Loretta Lynch, the U.S. Attorney in Brooklyn, said at a press conference.

SANCTIONS VIOLATIONS

In documents filed in federal court in Brooklyn, the Justice Department also charged the bank with violating sanctions laws by doing business with customers in Iran, Libya, Sudan, Burma and Cuba.

HSBC separately reached a settlement with British watchdog the Financial Services Authority.

“The HSBC settlement sends a powerful wakeup call to multinational banks about the consequences of disregarding their anti-money laundering obligations,” said Senator Carl Levin, who led the Senate inquiry.

U.S. and European banks have now agreed to settlements with U.S. regulators totaling some $ 5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.

No bank or bank executives have been indicted. Instead, prosecutors have used deferred prosecutions, under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing its behavior.

“In trying to reach a result that’s fair and just and powerful, you also have to look at the collateral consequences,” DOJ criminal chief Lanny Breuer said at the Brooklyn press conference.

The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to improve its monitoring of suspicious transactions. Previous directives by regulators to improve oversight came in 2003 and in 2010.

Last month, HSBC told investors it had set aside $ 1.5 billion to cover fines or penalties stemming from the inquiry and warned that costs could be significantly higher.

Analyst Jim Antos of Mizuho Securities said that while the fine was huge in cash terms, the settlement costs were “trivial” in terms of the company’s book value.

HSBC shares closed up 0.56 percent at 644.8 pence in London.

ANTI-MONEY LAUNDERING CONTROLS

HSBC said it had increased spending on anti-money laundering systems by around nine times between 2009 and 2011, exited business relationships and clawed back bonuses for senior executives. As evidence of its determination to change, it cited the hiring last January of Stuart Levey, a former top U.S. Treasury Department official, as chief legal officer.

Under a five-year agreement with the Justice Department, HSBC agreed to have an independent monitor evaluate its progress in improving its compliance.

It also said that as part of the overhaul of its controls, it has launched a global review of its “Know Your Customer” files, which will cost an estimated $ 700 million over five years. The files are designed to ensure that banks do not unwittingly act as conduits for criminal funds.

HSBC‘s settlement comes a day after rival British bank Standard Chartered Plc agreed to a $ 327 million settlement with U.S. law enforcement agencies for sanctions violations, a pact that follows a $ 340 million settlement the bank reached with the New York bank regulator in August.

Such settlements have become commonplace. In what had been the largest settlement until this week, ING Bank NV in June agreed to pay $ 619 million to settle U.S. government allegations that it violated sanctions against countries including Cuba and Iran.

In the United States, J.P. Morgan Chase & Co, Wachovia Corp and Citigroup Inc have been cited for anti-money laundering lapses or sanctions violations.

HSBC‘s failings date to 2003, when the Federal Reserve Bank of New York and New York state regulators ordered it to better monitor suspicious money flows. In 2010, a consent order from the Comptroller of the Currency (OCC) ordered HSBC to review suspicious transactions. At the time, the OCC called HSBC‘s compliance program “ineffective.”

In 2008, the federal prosecutor in Wheeling, West Virginia, began investigating allegations that a local doctor used the bank to launder money from Medicare fraud.

Ultimately, the prosecutor’s office came to believe the case was “the tip of the iceberg” in terms of suspicious transactions conducted through HSBC, according to documents reviewed by Reuters and reported earlier this year.

(Additional reporting by Lawrence White and Michael Flaherty in Hong Kong, Steve Slater in London, Jessica Dye in Brooklyn; Editing by Peter Graff, John Wallace and Alden Bentley)

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Corruption probe shrouds Quebec in new darkness

MONTREAL (Reuters) – Half a century ago, a new crop of Quebec leaders sparked the so-called Quiet Revolution to eradicate the “Great Darkness” – decades of corruption that kept Canada‘s French-speaking province under the dominance of one party and the Catholic church.

The revolution’s reforms, including cleaning up the way lawmakers were elected and secularizing the education system, seemed to work, paving the way for decades of growth, progress and prominence as Canada emerged as a model of democracy.

Fifty years later, a public inquiry into corruption and government bid-rigging suggests the province’s politics are not as clean as Quebecers had hoped or believed.

Since May, when the inquiry opened in Montreal, Canadians have been getting daily doses of revelations of fraud through live broadcasts on French-language television stations. Corruption involving the Mafia, construction bosses and politicians, the inquiry has shown, drove up the average building cost of municipal contracts by more than 30 percent in Montreal, Canada’s second-largest city.

Last month, Montreal Mayor Gerald Tremblay resigned as did the mayor of nearby Laval, Gilles Vaillancourt. Both denied doing anything wrong, but said they could not govern amid the accusations of corruption involving rigging of municipal contracts, kickbacks from the contracts and illegal financing of elections.

Tremblay has not been charged by police. Vaillancourt’s homes and offices have been raided several times by Quebec’s anti-corruption squad, which operates independently of the inquiry, but no charges have been filed against him either. Police said the raids were part of an investigation but they would not release further details.

“Quebecers lived for several years under the impression that they had found the right formula, that their parties were clean,” said Pierre Martin, political science professor at the University of Montreal. Now, he said, “people at all levels are fed up.”

The inquiry must submit its final report to the Quebec government by next October. It has exposed practices worthy of a Hollywood noir thriller – a mob boss stuffing his socks with money, rigged construction contracts, call girls offered as gifts, and a party fundraiser with so much cash he could not close the door of his safe.

“Even though we are in the early days, what is emerging is a pretty troubling portrait of the way public contracts were awarded,” said Antonia Maioni, director of the McGill Institute for the Study of Canada in Montreal.

Quebec’s Liberals, the force behind the Quiet Revolution, launched the inquiry as rumors of corruption swirled. The government then called an election for September, a year ahead of schedule, in what was seen as an attempt to stop damaging testimony hurting its popularity.

The tactic did not help. Jean Charest’s Liberals lost to the Parti Quebecois, whose ultimate aim is to take the French-speaking province, the size of Western Europe, out of Canada.

‘IT WASN’T COMPLICATED’

According to allegations at the inquiry, the corruption helped three main entities: the construction bosses who colluded to bid on contracts, the Montreal Mafia dons who swooped in for their share, and the municipal politicians who received kickbacks to finance campaigns.

In Quebec, the Mafia has been dominated by the Rizzuto family, with tentacles to the rest of Canada and crime families in New York and abroad. But recently the syndicate has been facing challenges from other crime groups in Montreal, according to the Toronto-based Mafia analyst and author Antonio Nicaso.

The reputed godfather of the syndicate, Vito Rizzuto, has been subpoenaed to appear before the commission, but the date for his testimony has not been set.

The hearings have zeroed in on four construction bosses and how their companies worked with the Mafia, bribed municipal engineers and provided funds for mayoralty campaigns in Montreal, the business capital for Quebec’s 8 million people.

“It’s not good for the economy,” said Martin. “It’s not good for any kind of legitimate business that tries to enter into any kind of long-term relationship with the public sector.”

Quebec’s anti-corruption squad has arrested 35 people so far this year, staging well-publicized raids on mayoral offices and on construction and engineering companies. The squad has arrested civil servants and owners of construction companies, among others.

“I now must suffer an unbearable injustice,” Tremblay said in a somber resignation speech earlier this month after a decade as mayor of Montreal, saying he could not continue in office because the allegations of corruption were causing a paralysis at City Hall.

Some of the most explosive allegations at the inquiry, headed by Quebec Superior Court Justice France Charbonneau, came from Lino Zambito, owner of a now bankrupt construction company, and from a top worker for Tremblay’s political party, Union Montreal.

Zambito, who is seen as one of the smaller players and who also faces fraud charges, described a system of collusion between organized crime, business cartels and corrupt civil servants, with payments made according to a predetermined formula.

“The entrepreneurs made money, and there was an amount that was due to the Mafia,” Zambito told the inquiry. “It wasn’t complicated.”

Zambito said the Mafia got 2.5 percent of the value of a contract, 3 percent went to Union Montreal and 1 percent to the engineer tasked with inflating contract prices.

Tremblay did not respond to emails requesting comment on the allegations of corruption at city hall.

A former party organizer, Martin Dumont, alleged the mayor was aware of double bookkeeping used to hide illegal funding during a 2004 election.

Dumont said the mayor walked out of the room during a meeting that explained the double bookkeeping system, saying he did not want to know anything about it.

Dumont also described how he was called into the office of a fundraiser for Union Montreal to help close the door of a safe because it was too full of money.

“I think it was the largest amount I’d ever seen in my life,” Dumont said at the inquiry.

GOLF, HOCKEY, ESCORTS

The inquiry also saw videos linking construction company players with Mafia bosses. In one police surveillance video, a Mafia boss was seen stuffing cash into his socks.

A retired city of Montreal engineer, Gilles Surprenant, described how he first accepted a bribe in the late 1980s after being “intimidated” by a construction company owner. Over the years he said he accepted over $ 700,000 from the owners in return for inflating the price of the contracts.

Another retired engineer, Luc Leclerc, admitted to bagging half a million dollars for the same service. He said the system was well-known to many at city hall and simply part of the “business culture” in Montreal. He also got gifts and paid golf trips to the Caribbean with other businessmen and Mafia bosses.

Gilles Vezina, who is currently suspended from his job as a city engineer, concurred.

“It was part of our business relationships to get advantages like golf, hockey, Christmas gifts” from construction bosses, he told the inquiry in mid-November.

The gifts didn’t stop there. Vezina said he was twice offered the services of prostitutes from different construction bosses in the 1980s or early 1990s, which he said he refused.

The accusations are jarring for a country that prides itself on being one of the least corrupt places in the world, according to corruption watchdog Transparency International. But experts say corruption in Montreal was something of an open secret.

“The alarm signals have been going off here for 20 years and no one has done anything,” said Andre Cedilot, a former journalist who co-wrote a book on the Canadian Mafia.

Quebec’s new government has introduced legislation tasking the province’s securities regulator with vetting businesses vying for public contracts and allowing it to block companies that do not measure up.

Anti-corruption activist Jonathan Brun was not optimistic.

“You’ve got to use modern technology,” said Brun, a co-founder of Quebec Ouvert, a group that wants to make all information about contracts freely available rather than asking regulators to oversee individual companies. “You’ve got to change the entire system if you really want to fight corruption.”

(Writing by Russ Blinch; Editing by Janet Guttsman, Mary Milliken and Prudence Crowther)

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The Wii U uses less than half the power of the Xbox 360 and the PS3

Nintendo’s (NTDOY) Wii prided itself for being a super energy-efficient console that ran nearly silent and sipped very little electricity. And although Microsoft’s (MSFT) Xbox 360 was originally a loud monster with a penchant for Red-Ring-of-Death-ing itself, the amount of power it consumed was never as much as Sony’s (SNE) launch PlayStation 3, which used more power than a refrigerator. Eurogamer took it upon itself to pit the Wii U against the Xbox 360 S and new super slim PS3 and concluded that Nintendo’s new console “draws so little power in comparison to its rivals that its tiny casing still feels cool to the touch during intense gaming.” Most impressive is that the Wii U maintains its low-wattage while fitting in a chassis that’s smaller than both the Xbox 360 and PS3.

According to Eurogamer’s tests, the Wii U draws only 32 watts of power during gameplay of games that are as graphically intensive as the 360 and PS3, with both consoles using 118% and 139$ % more power, respectively.

To achieve such “green” levels, Nintendo clocks the Wii U’s CPU to 1.24GHz and “uses far fewer transistors than the competition.” While there are still some mysteries as to how the hardware remains cool, Eurogamer also discovered that the AMD-built GPU increases performance by “40 per cent per square millimetre of silicon – another big leap in efficiency.”

Most disappointing in Eurogamer’s analysis is that they weren’t able to get the Wii U’s wattage to spike more than 33 watts, suggesting that the console can’t be over-clocked in the future to pump out more polygons.

If you’re still on the fence on which console you should buy or play games on, the Wii U looks to be the one that’ll keep your electric bill nice and low.

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Who’s living past 100 in the U.S.? Mostly white women

WASHINGTON (Reuters) – Women have long been known to live longer than men, but when it comes to hitting the century mark the difference is stark: just 2 out of 10 Americans who live to 100 or longer are male.

Of the 53,364 Americans age 100 and older, more than 80 percent are women, a U.S. Census Bureau report released on Monday showed.

The agency’s findings, based on data collected from its 2010 census, also found those who make it past 100 are also more likely to be white city-dwellers in the Northeast and Midwest.

“Due to sex differences in mortality over the lifespan, the proportion of females in the population increases with age. This is especially true in the oldest ages, where the percentage female increases sharply,” Census researchers wrote.

“For every 100 centenarian females, there were only 20.7 centenarian males,” they added.

While reaching 100 years of age may not attract as much fanfare as it did a few decades ago, the public still marvels at those who reach “super centenarian,” status.

Guiness World Records, which certifies the oldest living person, said the title was held by Besse Cooper, an American woman who died last week at age 116 in a Georgia nursing home soon after having her hair done.

Guiness announced on its website that the new person to certified to be the oldest anywhere on the globe is 115-year-old Dina Manfredini, an immigrant from Pievepelago, Italy, who has lived in Des Moines, Iowa, since 1920. She is just 15 days older than Japan’s Jiroemon Kimura, Guiness World Records said.

Although still rare, the number of people living past 100 can have an impact as policymakers consider and plan services and programs that affect older adults, Census said in its report.

The findings are not necessarily all rosy for women.

Living longer can mean greater medical and retirement expenses, among other issues.

And the number of those living past 100 continues to grow. Just 32,194 Americans reached 100 or older in 1980, far below the current level, according to the Census Bureau.

Still, centenarians in the United States remain relatively rare compared to those in other developed countries.

There were 1.73 centenarians per 10,000 people in the United States in 2010 compared to 1.92 per 10,000 people in Sweden, 2.70 per 10,000 in France and 3.43 per 10,000 people in Japan, Census said.

(Reporting By Susan Heavey; Editing by Cynthia Osterman)

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A Kinder, Gentler Lexus Christmas Commercial

Maybe there’s hope for mankind after all.

Much has been written (and satirized) about the disconnect between the world where most of us live and the one portrayed in the Lexus (TM) “December to Remember” car ads. In Lexus World, some lucky person of wealthy extraction is given a new car with a fancy red bow. The cutesy tricks employed to surprise the wife/husband/girlfriend/boyfriend only makes it more painful for those who know the best they can hope for is the Bad 25th anniversary box set.

But this year’s batch of Lexus ads appear to have lost a bit of their Masters of the Universe edge. The 2012 message seems to be: We know you probably won’t rig your luxury apartment elevator to play the Lexus jingle as part of an elaborate gift-giving ritual. But should you tear yourself away from Facebook (FB) for a few moments to go experience the good life, we hope it will be in a Lexus.

Whether that makes anyone actually buy a Lexus is another question. Some of the commenters on the Lexus Enthusiast blog are underwhelmed and think the ads are skewed too much toward young viewers. And after losing its U.S. luxury car crown to BMW (BMW) and Mercedes (DAI) last year, Lexus needs all the help it can get.

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Egypt army given temporary power to arrest civilians

CAIRO (Reuters) – Egypt’s Islamist president has given the army temporary power to arrest civilians during a constitutional referendum he is determined to push through despite the risk of bloodshed between his supporters and opponents accusing him of a power grab.

Seven people were killed and hundreds wounded last week in clashes between the Islamist Muslim Brotherhood and their critics besieging Mohamed Mursi’s graffiti-daubed presidential palace. Both sides plan mass rallies on Tuesday.

The elite Republican Guard has yet to use force to keep protesters away from the palace, which it ringed with tanks, barbed wire and concrete barricades after last week’s violence.

Mursi, bruised by calls for his downfall, has rescinded a November 22 decree giving him wide powers but is going ahead with a referendum on Saturday on a constitution seen by his supporters as a triumph for democracy and by many liberals as a betrayal.

A decree issued by Mursi late on Sunday gives the armed forces the power to arrest civilians and refer them to prosecutors until the announcement of the results of the referendum, which the protesters want cancelled.

Despite its limited nature, the edict will revive memories of Hosni Mubarak’s emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure introduced by a civilian government would have a short shelf-life.

“The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only,” the military source said.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army’s assistance.

“The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over,” Ali said.

Protests and violence have racked Egypt since Mursi decreed himself extraordinary powers he said were needed to speed up a troubled transition since Mubarak’s fall 22 months ago.

The Muslim Brotherhood has voiced anger at the Interior Ministry’s failure to prevent protesters setting fire to its headquarters in Cairo and 28 of its offices elsewhere.

Critics say the draft law puts Egypt in a religious straitjacket. Whatever the outcome of the referendum, the crisis has polarized the country and presages more instability at a time when Mursi is trying to steady a fragile economy.

On Monday, he suspended planned tax increases only hours after the measures had been formally decreed, casting doubts on the government’s ability to push through tough economic reforms that form part of a proposed $ 4.8 billion IMF loan agreement.

“VIOLENT CONFRONTATION”

Rejecting the referendum plan, opposition groups have called for mass protests on Tuesday, saying Mursi’s eagerness to push the constitution through could lead to “violent confrontation”.

Islamists have urged their followers to turn out “in millions” the same day in a show of support for the president and for a referendum they feel sure of winning with their loyal base and perhaps with the votes of Egyptians weary of turmoil.

The opposition National Salvation Front, led by liberals such as Mohamed ElBaradei and Amr Moussa, as well as leftist firebrand Hamdeen Sabahy, has yet to call directly for a boycott of the referendum or to urge their supporters to vote “no”.

Instead it is contesting the legitimacy of the vote and of the whole process by which the constitution was drafted in an Islamist-led assembly from which their representatives withdrew.

The opposition says the document fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.

But debate over the details has largely given way to noisy street protests and megaphone politics, keeping Egypt off balance and ill-equipped to deal with a looming economic crisis.

“Inevitability of referendum deepens divisions,” was the headline in Al-Gomhuriya newspaper on Monday. Al Ahram daily wrote: “Political forces split over referendum and new decree.”

Mursi issued another decree on Saturday to supersede his November 22 measure putting his own decisions beyond legal challenge until a new constitution and parliament are in place.

While he gave up extra powers as a sop to his opponents, the decisions already taken under them, such as the dismissal of a prosecutor-general appointed by Mubarak, remain intact.

“UNWELCOME” CHOICE

Lamia Kamel, a spokeswoman for former Arab League chief Moussa, said the opposition factions were still discussing whether to boycott the referendum or call for a “no” vote.

“Both paths are unwelcome because they really don’t want the referendum at all,” she said, but predicted a clearer opposition line if the plebiscite went ahead as planned.

A spokeswoman for ElBaradei, former head of the U.N. nuclear watchdog, said: “We do not acknowledge the referendum. The aim is to change the decision and postpone it.”

Mahmoud Ghozlan, the Muslim Brotherhood’s spokesman, said the opposition could stage protests, but should keep the peace.

“They are free to boycott, participate or say no, they can do what they want. The important thing is that it remains in a peaceful context to preserve the country’s safety and security.”

The army stepped into the conflict on Saturday, telling all sides to resolve their disputes via dialogue and warning that it would not allow Egypt to enter a “dark tunnel”.

A military source said the declaration read on state media did not herald a move by the army to retake control of Egypt, which it relinquished in June after managing the transition from Mubarak’s 30 years of military-backed one-man rule.

The draft constitution sets up a national defense council, in which generals will form a majority, and gives civilians some scrutiny over the army – although not enough for critics.

In August Mursi stripped the generals of sweeping powers they had grabbed when he was elected two months earlier, but has since repeatedly paid tribute to the military in public.

So far the army and police have taken a relatively passive role in the protests roiling the most populous Arab nation.

(Additional reporting by Edmund Blair and Yasmine Saleh; editing by Philippa Fletcher)

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Apple, Samsung face off in court again

SAN JOSE (Reuters) – Apple Inc and Samsung Electronics squared off again in court on Thursday, as the iPhone maker prepares to convince a U.S. district judge to ban sales of a number of the Korean company’s devices and defend a $ 1.05 billion jury award.

Apple scored a sweeping legal victory in August at the conclusion of its landmark case against its arch-foe, when a U.S. jury found Samsung had copied critical features of the iPhone and iPad and awarded it $ 1.05 billion in damages.

U.S. District Judge Lucy Koh is expected to address a range of issues at the hearing, which began Thursday afternoon. They include setting aside any of the jury’s findings on liability, juror misconduct, and the requested injunction.

Twenty four of Samsung’s smartphones were found to have infringed on Apple’s patents, while two of Samsung’s tablets were cleared of similar allegations.

Koh began by questioning the basis for some of the damages awarded by the jury, putting Apple’s lawyers on the defensive.

“I don’t see how you can evaluate the aggregate verdict without looking at the pieces,” Koh said.

Samsung’s lawyers argued the ruling against it should be “reverse engineered” to be sure the $ 1.05 billion was legally arrived at by the jury, while Apple said the ruling should stand as is.

FIERCEST RIVAL

Samsung is Apple’s fiercest global business rival, and their battle for consumers’ allegiance is shaping the landscape of the smartphone and tablet industry, and has claimed several high-profile victims including Nokia.

While most of the devices facing injunction are older and, in some cases, out of the market, such injunctions have been key for companies trying to increase their leverage in courtroom patent fights.

In October, a U.S. appeals court overturned a pretrial sales ban against Samsung’s Galaxy Nexus smartphone, dealing a setback to Apple’s battle against Google Inc’s increasingly popular mobile software.

Some analysts say Apple’s willingness to license patents to HTC could convince Koh it does not need the injunction, as the two companies could arrive at a licensing deal.

Apple is also attempting to add more than $ 500 million to the $ 1 billion judgment because the jury found Samsung willfully infringed on its patents.

Samsung, for its part, wants the verdict overturned, saying the foreman of the jury in the trial did not disclose that he was once embroiled in litigation with Seagate Technology, a company that Samsung invested in.

Both Apple and Samsung have filed separate lawsuits covering newer products, including the Samsung Galaxy Note II. That case is pending in U.S. District Court in San Jose and is set for trial in 2014.

(Reporting By Poornima Gupta)

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Health workers march in Spain’s capital against cuts, reforms

MADRID (Reuters) – Thousands of health workers, on strike since last month, marched on Sunday in Madrid to protest against budget cuts and plans from the Spanish capital’s regional government to privatize the management of public hospitals and medical centers.

It was the third time doctors, nurses and health workers have rallied since the local authorities put forward a plan in October to place six hospitals and dozens of medical practices under private management. The plan also calls for patients to be charged a fee of 1 euro for prescriptions.

Workers launched an indefinite strike last month against the plan, which has not been endorsed by the centre-right government of Prime Minister Mariano Rajoy. Health workers in the capital are striking Monday-Thursday each week and seeing patients only on Fridays, while also responding to emergencies.

Spain’s 17 autonomous regions control health and education policies and spending. They have all had to implement steep cuts this year as the country struggles to meet tough European Union-agreed deficit targets.

Dressed in white scrubs, the protesters shouted slogans such as “Health is not for sale” and “Health 100 percent public, no to privatizations”.

“Of course, privatization can be reversed. Actually the question is not if it can be reversed, because privatization should never have a future,” said Luis Alvarez, an unemployed man from Madrid attending the demonstration.

Belen Padilla, a doctor at Madrid’s hospital Gregorio Maranon, said one million citizens had already signed a petition rejecting the plan.

(Reporting by Reuters Television; Writing by Julien Toyer; Editing by Peter Graff)

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India’s Strange Obsession With Hitler

All that remains of the sign above the Hitler clothing store in Ahmedabad, India, is the swastika that used to dot its “i.” Citing cultural insensitivity, the municipality tore it down on Oct. 30 after the store’s owners refused to change it. Rajesh Shah, a co-owner of the shop, which opened in August, is flummoxed. “We are popular because of the name,” he says. “Our customers were not upset about the name. They said, ‘Don’t change it.’ Ahmedabadis like the name because they know Hitler [has not done] anything harmful to India.”

Lacking the sting of anti-Semitism but troubling nonetheless, the Hitler brand is gaining strength in India. Mein Kampf is a bestseller, and bossy people are often nicknamed Hitler on television and in movies.

In 2006 a cafe called Hitler’s Cross opened in Mumbai; in 2011 a pool hall named Hitler’s Den opened nearby in Nagpur. Owners of both say Hitler was a draw; the names were changed in the face of criticism from Jewish groups. (In Ahmedabad, store owner Shah says that only foreigners complained.)

Hero Hitler in Love, a Punjabi comedy about a man with an explosive temper, and the Hindi film Gandhi to Hitler, a sympathetic portrait of the dictator’s last days (Gandhi once wrote to the Führer), came out last year. A soap opera, Hitler Didi—or “big sister Hitler”—is a hit. Bal Thackeray, the leader of a far-right Hindu party who recently died, professed admiration for Hitler.

Unlike in some parts of Europe such as Russia and Austria, where Mein Kampf has been embraced by the extreme right, Hitler’s popularity in India is not the result of anti-Semitism, says Navras Jaat Aafreedi, a professor of social sciences at Gautam Buddha University in New Delhi. He says it stems from a dearth of European history classes in schools. To the extent that German history is taught, he says, it’s in the context of “the view that had Hitler not weakened the British Empire by the Second World War, the British would have never voluntarily left India.” The country’s Jewish community—some 5,300 people—is one of a few in the world to have never been persecuted by their countrymen, he says.

Solomon Sopher, president of the Baghdadi Jewish community in Mumbai, agrees: “We have never been persecuted by any caste or creed. Not even by the Muslims.” He adds that Indians are prone to “hero worship” of strong military leaders. “Lack of examples of strong leadership in India leads the Indian youth to admire Hitler,” explains Aafreedi.

That may explain why Mein Kampf, the dictator’s memoir, sells briskly in Mumbai and is printed by at least 13 publishers in India, according to Economic & Political Weekly. Mein Kampf is also becoming a must-read for some business schools applicants. “Each year, when I sit for admission interviews, there [are] books that are mentioned as favorite reads” by applicants, says Uma Narain, a professor at S.P. Jain Institute of Management & Research. “This year, many referred to Mein Kampf.” While Narain says she wouldn’t dream of teaching Mein Kampf, she can understand the lure of “the autobiographical account and political ideology of a charismatic man who supposedly got things done.”

Although Shah says the Hitler clothing store’s name was apolitical, he says the controversy has been good for business. He is petitioning the courts to reverse the decision to take the name down. “We’re going to fight for the name ‘Hitler,’ ” he says.

The bottom line: The popularity of Hitler is rising in India, reflecting the national attraction to strong leaders.

Shaftel is a Bloomberg Businessweek contributor.

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EU leaders in Norway to pick up Nobel Peace Prize

OSLO, Norway (AP) — European Union leaders on Sunday hailed the achievements of the 27-nation bloc, but acknowledged they need more integration and authority to solve problems, including its worst financial crisis, as they arrived in Norway to pick up this year’s Nobel Peace Prize.

Conceding that the EU lacked sufficient powers to stop the devastating 1992-95 Bosnia war, European Commission President Jose Manuel Barroso said that the absence of such authority at the time is “one of the most powerful arguments for a stronger European Union.”

Barroso spoke to reporters with EU Council President Herman Van Rompuy and the president of the EU Parliament, Martin Schulz, in Oslo, where the three leaders were to receive this year’s award, granted to the European Union for fostering peace on a continent ravaged by war.

Nobel committee chairman Thorbjoern Jagland will present the prize, worth $ 1.2 million, at a ceremony in Oslo City Hall, followed by a banquet at the Grand Hotel, against a backdrop of demonstrations in this EU-skeptic country that has twice rejected joining the union.

About 20 European government leaders, including German Chancellor Angela Merkel, French President Francois Hollande and British Deputy Prime Minister Nick Clegg, will be joining the ceremonies. They will be celebrating far away from the EU’s financial woes in a prosperous, oil-rich nation of 5 million on the outskirts of Europe that voted in 1972 and 1994 in referendums to stay out of the union.

The decision to award the prize to the EU has sparked harsh criticism, including from three peace laureates — South African Archbishop Desmond Tutu, Mairead Maguire of Northern Ireland and Adolfo Perez Esquivel from Argentina — who have demanded the prize money not be paid out this year. They say the bloc contradicts the values associated with the prize because it relies on military force to ensure security.

The leader of Britain’s Independence Party, Nigel Farage, in a statement described rewarding the EU as “a ridiculous act which blows the reputation of the Nobel prize committee to smithereens.”

Hundreds of people demonstrated against this year’s prize winners in a peaceful torch-lit protest that meandered through the dark city streets to Parliament, including Tomas Magnusson from the International Peace Bureau, the 1910 prize winner.

“This is totally against the idea of Alfred Nobel who wanted disarmament,” he said, accusing the Nobel committee of being “too close to the power” elite.

Dimitris Kodelas, a Greek lawmaker from the main opposition Radical Left party, or Syriza, said a humanitarian crisis in his country and EU policies could cause major rifts in Europe. He thought it was a joke when he heard the peace prize was awarded to the EU. “It challenges even our logic and it is also insulting,” he said.

The EU is being granted the prize as it grapples with a debt crisis that has stirred deep tensions between north and south, caused soaring unemployment and sent hundreds of thousands into the streets to protest austerity measures.

It is also threatening the euro — the common currency used by 17 of its members — and even the structure of the union itself, and is fuelling extremist movements such as Golden Dawn in Greece, which opponents brand as neo-Nazi.

Barroso acknowledged that the current crisis showed the union was “not fully equipped to deal with a crisis of this magnitude.”

“We do not have all the instruments for a true and genuine economic union … so we need to complete our economic and monetary union,” he said, adding that the new measures, including on a banking and fiscal union, would be agreed on in coming weeks.

He stressed that despite the crisis all steps taken had been toward “more, not less integration.”

Van Rompuy was optimistic saying that EU would come out of the crisis stronger than before. “We want Europe to become again a symbol of hope,” he said.

The EU says it will donate the prize money to projects that help children in conflict zones and will double it with EU funds.

The European Union grew from the conviction that ever-closer economic ties would ensure century-old enemies like Germany and France never turned on each other again, starting with the creation in 1951 of the European Coal and Steel Community, declared as “a first step in the federation of Europe.”

In 60 years it has grown into a 27-nation bloc with a population of 500 million, with other nations eagerly waiting to join, even as its unity is being threatened by the financial woes.

While there have never been wars inside EU territory, the confederation has not been able to prevent European wars outside its borders. When the deadly Balkans wars erupted in the 1990s, the EU was unable by itself to stop them. It was only with the help of the United States and after over 100,000 lives were lost in Bosnia was peace eventually restored there, and several years later, to Kosovo.

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