State Department security chief leaves post over Benghazi






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


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






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


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


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


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


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


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


PANEL STOPS SHORT OF BLAMING CLINTON


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


The report concluded that there was no such protest.


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


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


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IntercontinentalExchange buys NYSE Euronext for $8 billion






NEW YORK/LONDON (Reuters) – IntercontinentalExchange struck an $ 8.2 billion deal to buy NYSE Euronext, a combination that will propel the commodities market powerhouse into European financial futures but threaten to further reduce the clout of the New York Stock Exchange.


The deal will create a new player in global derivatives trading and clearing that would take on CME Group Inc. While the New York Stock Exchange has stood for 200 years as an iconic symbol of U.S. capitalism, it is almost an afterthought in this deal.






Atlanta-based ICE said it will try to spin off the Euronext European stock market businesses in a public offering, generating speculation it may eventually shutter the NYSE‘s trading floor, as well. Profits from stock trading have been significantly eroded by new technology and the rise of private venues run by Wall Street banks and brokers.


Analysts said the deal will give ICE a strategic boost with control of Liffe, Europe’s second-largest derivatives market, helping it compete against U.S.-based CME Group, owner of the Chicago Board of Trade. Derivatives trading remains quite profitable for the exchanges and new rules coming into play next year will dramatically expand the demand for clearing over-the-counter contracts.


Regulatory concerns sank two deals to buy NYSE Euronext last year, including a joint bid by ICE and Nasdaq OMX Group and a separate bid from German exchange Deutsche Bourse. But ICE alone has far less overlapping business and should face easy approvals, antitrust attorneys said.


The deal values each NYSE Euronext share at $ 33.12, a 28 percent premium to the stock’s closing price on Wednesday. Shareholders will have the option of accepting $ 33.12 in cash per NYSE Euronext share or 0.2581 ICE share or a mix of $ 11.27 in cash and 0.1703 ICE share, subject to a maximum cash consideration of $ 2.7 billion..


NYSE Euronext stock rose 33 percent, to $ 31.88, after the deal was announced. ICE’s shares fell as much as 4 percent before clawing back some of the losses to trade down 0.6 percent, at $ 127.60, at 01:10 p.m. ET.


ICE said it would pay an annual dividend of $ 300 million once the deal closes.


NYSE Chief Executive Duncan Niederauer called the deal a “no brainer” on a call with analysts on Thursday. Further consolidation of exchanges was “inevitable” and ICE was a “great partner,” he said, so continuing on alone did not make sense.


“We can sit here and keep slugging away and keep working hard, but the bottom line is we had not delivered, in my mind, sufficient returns to shareholders,” Niederauer said.


Before the latest ICE offer emerged, NYSE Euronext‘s shares had fallen by nearly a third since ICE and Nasdaq launched their thwarted joint bid.


The newest offer first took shape in October when ICE Chairman and Chief Executive Jeff Sprecher, a consummate deal maker, called Niederauer to consider reviving their talks without the Nasdaq involved, said one person familiar with the situation who was not authorized to speak to the press.


ICE started out as an online marketplace for energy trading before Sprecher initiated a string of acquisitions from the London-based International Petroleum Exchange in 2001, to the New York Board of Trade and, most recently, a handful of smaller deals, including a climate exchange and a stake in a Brazilian clearing house.


A tie-up with Liffe would give Sprecher a boost to trade in to interest rates, one of the world’s biggest asset classes and a particular specialty of CME. Liffe and CME have a long-time rivalry in trading of short-term interest-rate contracts, with each launching – to little effect – look-alike versions of the other’s contracts. The CME declined to comment on the proposed deal.


“ICE is after Liffe, that is the crown jewel of NYSE Euronext,” said Peter Lenardos, analyst at RBC Capital Markets. NYSE bought Euronext, including Liffe, for 8 billion euros in 2007. “Strategically it makes sense for ICE to enter the European derivatives space in a meaningful way.”


ICE’s current main operations are in energy futures trading and, it has steered clear of stocks and stock-options trading, key businesses for NYSE Euronext. So there is not much business overlap between the two groups compared with last year’s proposed takeovers.


“This deal is probably not going to generate a lot of concern from an antitrust perspective,” said Warren Rosborough, a veteran of the U.S. Justice Department’s antitrust division who is now with the law firm McDermott Will & Emery.


A small amount of competing derivatives business could be addressed with straightforward divestitures, he said. “It’s an open question about whether it will generate questions,” he said. “If there is a fix, it will be relatively easy fix.”


Sprecher, who will be chairman and CEO of the combined company, said the deal had been “well received” by regulators after he and Niederauer completed a “whirlwind tour” in the United States and Europe ahead of Thursday’s announcement. Officials at the European Commission and the U.S. Securities and Exchange Commission declined to comment.


Last year, the Justice Department blocked a $ 11 billion joint hostile bid by ICE and Nasdaq OMX on concerns the tie-up would dominate U.S. stock listings. A rival $ 9.3 billion bid by Deutsche Boerse fell afoul of European regulators.


A combined ICE-NYSE Euronext would leap-frog Deutsche Boerse to become the world’s third-largest exchange group with a combined market value of $ 15.2 billion. CME Group has a market value of $ 17.5 billion, Thomson Reuters data shows.


Hong Kong Exchanges and Clearing is the world’s largest exchange group with a market cap of $ 19.5 billion.


ICE said it expected to achieve $ 450 million in cost savings from the takeover. In the first year after the deal closes, additional earnings of 15 percent are expected.


Long-time Wall Street traders saw the potential takeover of the venerable stock exchange by a 12-year-old derivatives upstart as weighted with symbolism.


“It’s the end of an era,” said a director on the board of a rival exchange who did not have clearance to speak to the press and asked not to be named. “I think ultimately the floor will be closed, because Jeff (Sprecher) has shut every floor he’s ever had,” the person said.


The exchange was prepared to shut down the floor temporarily during superstorm Sandy and trade completely electronically, Wall Street executives said.


But one former New York Stock Exchange executive was doubtful that ICE would completely shut down the NYSE floor. “It has too strong a marketing brand associated with it to close it,” said the executive, who declined to be identified because he is not permitted to speak to the press.


Morgan Stanley was the lead financial adviser to ICE, with assistance from BMO Capital Markets Corp, Broadhaven Capital Partners, JPMorgan Chase & Co, Lazard Group LLC, Societe Generale Corporate & Investment Banking, and Wells Fargo Securities LLC. ICE legal advisers are Sullivan & Cromwell LLP and Shearman & Sterling LLP.


The principal financial advisers to NYSE Euronext are Perella Weinberg Partners and BNP Paribas. Further financial advice to NYSE Euronext is being provided by Blackstone Advisory Partners, Citigroup, Goldman Sachs & Co. and Moelis & Co. Legal advisers to NYSE Euronext are Wachtell, Lipton, Rosen & Katz, Slaughter & May, and Stibbe NV.


(Additional reporting by Luke Jeffs and David Brough in London, Jessica Toonkel, Diane Bartz and Karen Brettell in New York, Sarah N. Lynch in Washington and Ann Saphir in Chicago; writing by Carmel Crimmins and Aaron Pressman; editing by Philippa Fletcher)


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Madonna leads Billboard’s top-grossing tours






LOS ANGELES (Reuters) – While this year’s pop charts have been dominated by young singers, it is veteran music stars, led by Madonna, who are commanding big money in tour ticket sales, according to a new Billboard list released on Tuesday.


Madonna, 54, topped Billboard‘s list of highest-grossing live tours, earning an estimated $ 228.4 million in ticket sales from her sold-out ninth worldwide tour in support of her 12th studio album “MDNA.” The singer will wrap her tour in South America this weekend, after performing more than 80 shows across the world starting in Israel in May.






Madonna came ahead of pop star Lady Gaga, who landed at No. 6, with ticket sales of $ 124.9 million from her worldwide “Born This Way Ball” tour. Gaga, 26, is currently midway through her tour, which kicked off in South Korea in April, and will wrap in Oklahoma in March 2013.


Music publication Billboard compiled its list through estimated gross ticket sales figures from Billboard box scores, which tracks concert tours, ticket prices and sales.


The top five highest-grossing tour acts of 2012 included Bruce Springsteen, 63, and the E Street band at No. 2 with $ 199 million from 72 shows and Pink Floyd’s Roger Waters, 69, at No. 3 with $ 186 million.


Cirque Du Soleil‘s homage to late singer Michael Jackson in “The Immortal World Tour” ranked No. 4 with $ 147.3 million over 183 shows, and British rock band Coldplay was fifth with $ 147.2 million over 67 shows.


The only other young stars in the list of 25 top-grossing tours was Canadian pop star Justin Bieber, 18, at No. 20 with $ 30 million from 29 shows as part of his ongoing “Believe” tour, and country-pop darling Taylor Swift, 23, who raked in $ 26 million from 21 shows from her “Speak Now World Tour.”


Last year, Swift ranked No. 5 on Billboard‘s list with an estimated $ 97 million in ticket sales from her “Speak Now World Tour,” while Bieber came in at No. 15 with $ 44 million.


Swift will embark on her third worldwide concert tour in support of her studio album “Red” in March 2013.


(Reporting By Piya Sinha-Roy; Editing by Patricia Reaney and Eric Walsh)


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Drugs group Lundbeck’s shares hit by profit warning






COPENHAGEN (Reuters) – Shares in Danish drugs firm Lundbeck fell to their lowest level in over 12 years on Wednesday after it cut its profits forecast for the next two years as European sales slow and spending on new products rise to combat generic competition.


The company has already warned that earnings would stall until 2015 due to cheap generic competition for its existing drugs, meaning new products will be vital for future earnings.






But Chief Executive Ulf Wiinberg said on Wednesday that the negative impact on revenue from healthcare reforms in Europe had also been bigger than expected in the last two years and that slowing European sales and generic competition were hurting.


As a result the company said operating profits would fall further than previously forecast in 2014 as it increases investments in its late-stage drugs development pipeline and product launches.


Lundbeck is working to find new drugs to replace lost revenue from products coming off patent protection such as its antidepressant Cipralex, which is sold as Lexapro in the United States and Japan, and Alzheimer’s drug Ebixa.


Wiinberg said 2014 would be the company’s peak investment year for the new products pipeline, offering it a solid foundation for growth starting in 2015.


“You only get one chance to launch a product and we have to do it well,” Wiinberg said at a briefing for investors.


He was commenting after the company warned in a statement that it now expects revenue in 2014 of about 14 billion Danish crowns ($ 2.5 billion) and an operating profit of between just 0.5 billion and 1 billion crowns.


Analysts have on average been forecasting a profit of over 2.5 billion crowns for 2014 on turnover of over 14.7 billion crowns, according to Thomson Reuters I/B/E/S Estimates.


Two years ago Lundbeck predicted its annual revenues over the period 2012-2014 would exceed 14 billion crowns a year while earnings before interest and tax (EBIT) would exceed 2 billion crowns a year.


Next years’ revenue is now forecast to be in the range of 14.1 billion and 14.7 billion crowns to produce an operating profit of 1.6 billion to 2.1 billion crowns, with no change to the company’s forecast for 2012.


Analysts’ forecasts for this year are for operating profit to drop 41 percent to 1.99 billion crowns on revenue down 8 percent at 14.7 billion crowns, while for 2013 they predict a profit of 2.26 billion crowns on revenue of 14.5 billion crowns.


Lundbeck’s shares were trading down 17 percent at 79.90 crowns at 12.44 p.m. British time, dropping below 80 crowns for the first time since April 2000.


“In the short term, earnings are under pressure,” Sydbank analyst Soren Hansen said.


Lundbeck said that it expects a dividend payout ratio of about 35 percent of net profits in the 2012-14 period. Last year it paid 3.49 crowns on basic earnings per share of 11.64 crowns, a payout ratio of 30 percent.


Analysts have been predicting a 27-30 percent cut this year to 2.53-2.28 crowns, according to Thomson Reuters StarMine data.


But a number of analysts doubt that revenue from new products will be enough to secure revenue growth in 2015, compensating for lost revenue from Cipralex, Lexapro and Ebixa which together accounted for about 70 percent of group revenue in 2011.


Lundbeck is working on new products such as antidepressant Brintellix in Europe and the United States for launch at the end of next year or start of 2014, as well as alcohol dependency treatment Selincro in Europe in mid 2013.


“It is difficult to see revenue from the smaller products compensating for the large products,” said Hansen.


“They have a lot of new products in the portfolio and a lot of products in the pipeline, but revenue growth in 2015 is not very likely,” he said. ($ 1=5.6458 Danish crowns)


(Editing by Greg Mahlich)


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Bank chief house costs to be paid







Mark Carney, the next head of the Bank of England, will be paid £250,000 in housing costs in addition to his salary and pension costs.






He will receive the money on top of his annual £480,000 salary and a yearly pension allowance of £144,000.


The housing allowance will be taxed at the new top rate of tax of 45%, which will be in place by the time he takes up his post next July,


Mr Carney is currently the head of the Bank of Canada.


A housing allowance was agreed as part of the package to tempt Mr Carney, who lives with his wife and four children, from his current post in Canada, but has only just been signed off by the non-executive directors of the Bank of England.


The allowance is designed to help him maintain a similar lifestyle to his current one in Ottawa, where he has a spacious family house near the Bank of Canada’s headquarters.


Continue reading the main story

What may stir controversy is that Mr Carney’s package protects him from the kind of gyrations in the economy that it will be his role to temper”



End Quote



Mr Carney’s salary itself is well above the £305,000 paid to the current governor of the Bank of England, Sir Mervyn King.


The Bank says this reflects in part the increased role the next governor will be faced with, as the Bank is taking over most of the UK’s bank regulation from the Financial Services Authority next year.


The Chancellor, George Osborne, spent months trying to court Mr Carney to take the post as Bank chief.


Mr Carney had gone on record as saying he was not interested in the post, but was persuaded to change his mind by Mr Osborne.


Part of the deal included allowing Mr Carney to serve just five years as Bank governor, rather than the eight-year term normally served in that position.


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EU’s Almunia sets deadline for Google antitrust plan






BRUSSELS (Reuters) – The European Union set Google an ultimatum on Tuesday, giving it a month to come up with detailed proposals to resolve a two-year investigation into complaints that it used its power to block rivals, including Microsoft.


The EU’s antitrust chief, Joaquin Almunia, delivered the deadline in a meeting with Google Executive Chairman Eric Schmidt in Brussels.






If it fails to address the complaints, the world’s most popular search engine could face a lengthy battle with what is arguably the world’s most powerful antitrust authority. If found guilty, it could mean a fine of up to 10 percent of its revenue, or $ 4 billion.


“Since our preliminary talks with Google started in July, we have substantially reduced our differences regarding possible ways to address each of the four competition concerns expressed by the Commission,” Almunia said in a statement.


“On the basis of the progress made, I now expect Google to come forward with a detailed commitment text in January 2013.”


Almunia said he would seek feedback from rivals and users once he has received Google’s proposal.


Google said it continues to work co-operatively with the Commission.


The European Commission has been examining informal settlement proposals from Google since July but has not sought feedback from the complainants, suggesting it is not convinced by what Google has put on the table so far.


The EU watchdog’s two-year investigation has centered on complaints that Google unfairly favored its services over its rivals in search results, and that it may have copied material from travel and restaurant websites without permission.


The Commission is also looking into whether Google restricted advertisers from transferring their data to rivals.


The Commission’s decision to press Google to offer more far-reaching concessions comes in sharp contrast to the case U.S. regulators have against the company.


Sources told Reuters the U.S. Federal Trade Commission could drop their investigation into Google without requiring any major change in how the company does business.


(Reporting by Foo Yun Chee; Editing by Robin Emmott, Louise Heavens and Nick Zieminski)


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Ben Stiller’s Red Hour sells two more comedies to ABC Studios






LOS ANGELES (TheWrap.com) – Ben Stiller‘s Red Hour Television is continuing to pump out comedies for ABC Studios.


Following the sale of “Complikated” in October, the production company has sold network’s production division two new series – “You’re Not Doing It Right” and “Between Two Kings” – a rep for Red Hour told TheWrap on Monday.






Comedian Michael Ian Black writes, stars and produces in the former, a half-hour single-camera comedy based on his book of the same name that explores his childhood, marriage, children and career. Set “in the wilds of Connecticut,” the show takes a hard look at what happens when you wake up, look around and don’t recognize the life you’re living as your own, Red Hour said.


“Between Two Kings” is written and executive-produced by Jeff Kahn, who has written for series like “Drawn Together” and “The Ben Stiller Show.” It follows the hardships of a divorced father raising an 11-year-old son while living in his elderly father’s home.


Both are being executive-produced by Stiller, along with Red Hour’s Debbie Liebling and Stuart Cornfeld.


Since signing an overall deal with ABC Studios at the end of 2011, Red Hour also has sold “Please Knock,” written by Kevin Napier, and “The Notorious Mollie Flowers,” written by Adam Resnick.


The sale of “You’re Not Doing It Right” and “Between Two Kings” were first reported by Deadline.


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Merck, GE to collaborate on Alzheimer’s drug development






(Reuters) – Merck & Co and General Electric Co‘s healthcare unit have agreed to collaborate on an experimental drug for Alzheimer’s disease, the companies said on Tuesday.


GE Healthcare will supply Flutemetamol, an investigational imaging agent, to Merck for use with its experimental Alzheimer’s disease drug MK-8931.






The companies hope GE’s imaging agent will help identify patients who might benefit from a therapy such as Merck’s, which targets beta amyloid, a protein that can clump together and form plaques in the brain. Such plaques have been found in the brains of patients with Alzheimer’s disease.


MK-8931 is Merck’s lead Alzheimer’s drug candidate and is designed to modify progression of the disease as well as improve symptoms. Alzheimer’s robs patients of their memory and can cause other cognitive disturbances.


Based on promising results from an early-stage clinical trial of MK-8931, Merck plans to move forward with a larger trial, called EPOCH, at multiple sites around the world.


Flutemetamol is a positron emission tomography (PET) imaging agent that has been able, in clinical trials, to detect beta amyloid in the brain.


GE Healthcare will supply Flutemetamol to help select patients for clinical trials and evaluate the agent as a companion diagnostic tool. Financial and other terms of the agreement between the companies were not disclosed.


(Reporting By Toni Clarke; editing by John Wallace)


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Syrian rebels take control of Damascus Palestinian camp






BEIRUT (Reuters) – Syrian rebels took full control of the Yarmouk Palestinian refugee camp on Monday after fighting raged for days in the district on the southern edge of President Bashar al-Assad‘s Damascus powerbase, rebel and Palestinian sources said.


The battle had pitted rebels, backed by some Palestinians, against Palestinian fighters of the pro-Assad Popular Front for the Liberation of Palestine-General Command (PFLP-GC). Many PFLP-GC fighters defected to the rebel side and their leader Ahmed Jibril left the camp two days ago, rebel sources said.






“All of the camp is under the control of the (rebel) Free Syrian Army,” said a Palestinian activist in Yarmouk. He said clashes had stopped and the remaining PFLP fighters retreated to join Assad‘s forces massed on the northern edge of the camp.


The battle in Yarmouk is one of a series of conflicts on the southern fringes of Assad’s capital, as rebels try to choke the power of the 47-year-old leader after a 21-month-old uprising in which 40,000 people have been killed.


Government forces have used jets and artillery to try to dislodge the fighters but the violence has crept into the heart of the city and activists say rebels overran three army stations in a new offensive in the central province of Hama on Monday.


On the border with Lebanon, hundreds of Palestinian families fled across the frontier following the weekend violence in Yarmouk, a Reuters witness said.


Syria hosts half a million Palestinian refugees, most living in Yarmouk, descendants of those admitted after the creation of Israel in 1948, and has always cast itself as a champion of the Palestinian struggle, sponsoring several guerrilla factions.


Both Assad’s government and the mainly Sunni Muslim Syrian rebels have enlisted and armed divided Palestinian factions as the uprising has developed into a civil war.


“NEITHER SIDE CAN WIN”


Syrian Vice President Farouq al-Sharaa said in a newspaper interview published on Monday that neither Assad’s forces nor rebels seeking to overthrow him can win the war.


Sharaa, a Sunni Muslim in a power structure dominated by Assad’s Alawite minority, has rarely been seen since the revolt erupted in March 2011 and is not part of the president’s inner circle directing the fight against Sunni rebels. But he is the most prominent figure to say in public that Assad will not win.


Sharaa said the situation in Syria was deteriorating and a “historic settlement” was needed to end the conflict, involving regional powers and the U.N. Security Council and the formation of a national unity government “with broad powers”.


“With every passing day the political and military solutions are becoming more distant. We should be in a position defending the existence of Syria. We are not in a battle for an individual or a regime,” Sharaa was quoted as telling Al-Akhbar newspaper.


“The opposition cannot decisively settle the battle and what the security forces and army units are doing will not achieve a decisive settlement,” he said, adding that insurgents fighting to topple Syria’s leadership could plunge it into “anarchy and an unending spiral of violence”.


Sources close to the Syrian government say Sharaa had pushed for dialogue with the opposition and objected to the military response to an uprising that began peacefully.


In a veiled criticism of the crackdown, he said there was a difference between the state’s duty to provide security to its citizens, and “pursuing a security solution to the crisis”.


He said even Assad could not be certain where events in Syria were leading, but that anyone who met him would hear that “this is a long struggle…and he does not hide his desire to settle matters militarily to reach a final solution.”


In Hama province, rebels and the army clashed in a new campaign launched on Sunday by rebels to block off the country’s north, activists said.


The Syrian Observatory for Human Rights, an opposition-linked violence monitor, said fighting raged through the provincial towns of Karnaz, Kafar Weeta, Halfayeh and Mahardeh.


It said there were no clashes reported in Hama city, which lies on the main north-south highway connecting the capital with Aleppo, Syria’s second city.


Qassem Saadeddine, a member of the newly established rebel military command, said on Sunday fighters had been ordered to surround and attack army positions across the province. He said Assad’s forces were given 48 hours to surrender or be killed.


In 1982 Hafez al-Assad, father of the current ruler, crushed an uprising in Hama city, killing up to 30,000 civilians.


Qatiba al-Naasan, a rebel from Hama, said the offensive would bring retaliatory air strikes from the government but that the situation is “already getting miserable”.


(Additional reporting by Oliver Holmes, Erika Solomon and Dominic Evans in Beirut, Afif Diab at Masnaa, Lebanon; editing by Philippa Fletcher)


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Massachusetts fines Morgan Stanley over Facebook research






BOSTON (Reuters) – Morgan Stanley, the lead underwriter for Facebook Inc’s initial public offering, will pay a $ 5 million fine to Massachusetts to settle charges that its bankers improperly influenced its research analysts when the Internet company went public.


Massachusetts’ top securities regulator, William Galvin, charged that Morgan Stanley improperly helped Facebook disclose sensitive financial information selectively, perpetuating what he calls “an unlevel playing field” between Wall Street and Main Street.






Morgan Stanley has been under criticism since the social media company went public in May for having revealed revised earnings and revenue forecasts to select clients on conference calls before the media company’s $ 16 billion initial public offering. A Morgan Stanley spokeswoman did not immediately return a call seeking comment.


Galvin, who has been aggressive in policing how research is distributed on Wall Street ever since investment banks reached a global settlement in 2003, said the bank violated that settlement. He fined Citigroup $ 2 million over similar charges in late October.


Massachusetts says that a senior Morgan Stanley banker helped a Facebook executive release new information and then guided the executive on how to speak with Wall Street analysts about it. The banker, Galvin’s office said, rehearsed with Facebook’s Treasurer and wrote the bulk of the script Facebook’s Treasurer used when calling the research analysts.


The banker “was not allowed to call research analysts himself, so he did everything he could to ensure research analysts received new revenue numbers which they then provided to institutional investors,” Galvin said in a statement.


Retail investors were not given any similar information, Galvin said, saying this case illustrates how institutional investors often have an edge over retail investors.


(Reporting By Svea Herbst-Bayliss with additional reporting by Suzanne Barlyn in New York; Editing by Theodore d’Afflisio)


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Title Post: Massachusetts fines Morgan Stanley over Facebook research
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