Kenya police: 28 people killed in clashes






NAIROBI, Kenya (AP) — A police official says 28 people have been killed in clashes between farmers and herders in south-eastern Kenya.


Anthony Kamitu, who is leading police operations to prevent the attacks, said Friday that the Pokomo tribe of farmers raided a village of the Orma herding community, called Kipao, at dawn in the Tana River Delta.






The latest deaths in a tit-for-tat cycle of killings may be related to a redrawing of political boundaries and next year’s general elections, according to the U.N.


At least 110 people were killed in clashes between the Pokomo and Orma in September and October.


Animosity between the two communities over land and water resources has existed for decades.


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Nokia to get payments in patent deal with RIM






HELSINKI (Reuters) – Struggling Finnish mobile phone maker Nokia has settled its patent dispute with BlackBerry maker Research in Motion in return for payments, as it tries to exploit its trove of technology patents to boost its finances.


Terms of the agreement were confidential, but Nokia said on Friday it included a one-time payment to be booked in the fourth quarter, as well as ongoing fees, all to be paid by RIM.






Nokia is one of the industry’s top patent holders, having invested 45 billion euros ($ 60 billion) in mobile research and development over the past two decades.


It has been trying to make use of that legacy to ensure its survival, amid a fall in sales as well as cash. The Finnish firm is battling to recover lost ground in the lucrative smartphone market to the likes of Apple and Samsung.


The agreement with RIM settles all existing patent litigation between the two companies, Nokia said, adding similar disputes with HTC Corp and ViewSonic still stood.


“This agreement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market,” said Paul Melin, Nokia’s chief intellectual property officer.


Nokia has earned around 500 million euros a year from patent royalties in key areas of mobile telephony.


Some analysts have said it could earn hundreds of millions more if it can negotiate with more companies successfully.


Analysts estimated its June 2011 settlement with Apple was worth hundreds of millions of euros.


($ 1 = 0.7555 euros)


(Reporting by Ritsuko Ando; Editing by Hans-Juergen Peters and Mark Potter)


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Thousands mourn U.S.-Mexican singer Jenni Rivera






LOS ANGELES (Reuters) – Thousands of mourners on Wednesday packed a Los Angeles theater to pay their final respects to Mexican-American singer Jenni Rivera more than a week after her death in a plane crash.


Rivera, 43, best known for her work in the Mexican folk Nortena and Banda genres, died after the small jet she was traveling in crashed in northern Mexico on December 9.






Rivera’s family, dressed in white, led the memorial service eulogizing the singer. A bank of white roses was displayed in front of Rivera’s bright red coffin and a brass band performed musical interludes.


More than 6,000 people crowded into the theater about 30 miles north of her childhood home in Long Beach, California. Tickets for the service at the Gibson Amphitheatre sold out within minutes, organizers said.


The daughter of Mexican immigrants, Rivera was called the “Diva de la Banda.” She sold about 15 million albums and earned a slew of Latin Grammy nominations during her 17-year career.


“Jenni made it OK for women to be who they are,” her manager Pete Salgado said at the service. “Jenni also made it OK to be from nothing, with the hopes of being something.”


Rivera had five children, the first at age 15, and was married three times. Her third husband was baseball pitcher Esteban Loaiza. Rivera’s private life influenced her songs, which often referenced living through hardship.


“She’s a fighter and she knows it’s in all of us,” Rivera’s son Michael said between video tributes.


In recent years, Rivera branched out into television, appearing on a reality television show and serving as a judge on the Mexican version of the singing competition “The Voice.” Television broadcaster ABC was reported to be developing a comedy pilot for the singer.


Rivera’s plane crashed in mountains south of Monterrey killing all seven on board.


The singer was to perform in the city of Toluca, 40 miles southwest of Mexico City, in central Mexico after a concert in Monterrey. It is not clear what caused the crash.


(Reporting by Eric Kelsey; Editing by Stacey Joyce)


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Texas governor asks cancer agency to halt grants






AUSTIN, Texas (AP) — A $ 3 billion cancer-fighting effort that’s already under criminal investigation received yet more humiliation Wednesday when Texas Gov. Rick Perry called for a moratorium on new grants until confidence is restored in a once-celebrated agency that has plunged into turmoil in just three years.


Leaders of the Cancer Prevention and Research Institute of Texas quickly embraced the request from Perry, who unveiled the unprecedented state-run cancer fight in 2009 with promises of medical breakthroughs. But the effort has unraveled into one of Texas‘ biggest tempests involving a state agency in Perry’s 12 years as governor.






A key Republican lawmaker who filed the original bill creating CPRIT piled on Wednesday by introducing new legislation, this time calling for new polices to bolster agency oversight and accountability. The agency also faces another round of scrutiny Thursday in front of a key state budget-writing committee.


“The mission of defeating cancer is too important to be derailed by inadequate processes and a lack of oversight,” Perry said in a letter to CPRIT’s oversight committee. That panel includes members appointed by Perry and some of his top political donors.


The governor added, “It is important that we restore the confidence of the Texas taxpayers who approved this important initiative before new funds are dispersed.”


The letter was co-signed by Lt. Gov. David Dewhurst and state House Speaker Joe Straus, who also appoints members of the agency’s governing board.


CPRIT controls the nation’s second-largest pot of cancer research dollars, behind the National Institutes of Health. That federal department’s cancer-research arm, the National Cancer Institute, also has said it is reviewing the troubles surrounding the Texas agency.


NCI confers on CPRIT prestigious status as an approved funding entity and losing that designation would be another blow for the beleaguered agency. It’s already under a criminal investigation, is the target of widespread rebuke from scientists and has seen its leadership purged by resignations, including its executive director last week.


In a statement, oversight committee Chairman Jimmy Mansour and Vice Chairman Joseph Bailes said they agreed with Perry’s call to cooperate with current reviews, implement recommended changes, enact reforms and fill key positions.


“These issues need to be resolved to restore public confidence in CPRIT,” they said in a joint statement.


The reviews began after CPRIT disclosed that an $ 11 million grant to a private company had bypassed review.


The award to Dallas-based Peloton Therapeutics, a biomedical startup, marked the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight.


The first involved a $ 20 million grant to M.D. Anderson Cancer Center in Houston that CPRIT’s former chief science officer, Nobel laureate Dr. Alfred Gilman, described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency’s rules.


Dozens of the nation’s top scientists agreed. They resigned en masse from the agency’s peer-review panels along with Gilman. Some accused the agency of “hucksterism” and charting a politically-driven path that was putting commercial product-development above science.


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Wall Street ticks lower on “fiscal cliff” stalemate






NEW YORK (Reuters) – Stocks edged slightly lower on Thursday as investors fretted that a deal on the U.S. budget wouldn’t come as soon as they had hoped after President Barack Obama threatened to veto a controversial Republican plan.


The market barely reacted to a round of strong data, including on gross domestic product growth and housing, suggesting talks to avert the “fiscal cliff,” steep tax hikes and spending cuts due to take effect in 2013, remain the primary focus for markets.






Republican Speaker of the House John Boehner said Wednesday his chamber would pass a proposal that spares many wealthy Americans from tax hikes needed to balance the budget. Obama has threatened to veto the plan if it passes, while some Republicans oppose any deal featuring tax increases.


“The closer we get to the end of the year without a deal, the more optimism is going to evaporate,” said Todd Schoenberger, managing partner at LandColt Capital in New York. “Volatility is going to be extreme until there’s a deal, and the probability of being caught on the downside is much greater than being on the upside.”


While investors have hoped for an agreement soon between policy makers over the fiscal cliff, this seems unlikely as wrangling continues over the details.


The Dow Jones industrial average <.dji> was down 18.74 points, or 0.14 percent, at 13,233.23. The Standard & Poor’s 500 Index <.spx> was down 0.84 points, or 0.06 percent, at 1,434.97. The Nasdaq Composite Index <.ixic> was down 4.18 points, or 0.14 percent, at 3,040.18.</.ixic></.spx></.dji>


NYSE Euronext was the S&P 500′s top percentage gainer, surging 35 percent to $ 32.56 after IntercontinentalExchange Inc said it would buy the operator of the New York Stock Exchange for $ 8.2 billion. ICE shares rose 1.3 percent to $ 130.06.


Stocks rallied earlier in the week on signs of progress in the negotiations, led by banking and energy shares, which tend to outperform in times of economic expansion. On signs of complications, however, many have turned to hedging their bets through options and exchange-traded funds.


The U.S. economy grew 3.1 percent in the third quarter, faster than previously estimated, while the number of Americans filing new claims for jobless benefits rose more than expected in the latest week.


“It is great to see this kind of growth, but investors know it could all disappear if there’s no deal on the cliff,” Schoenberger said. “Macro data may be on the back burner for a while.”


Existing home sales jumped 5.9 percent in November, more than expected, and by the fastest monthly place in three years. And the Federal Reserve Bank of Philadelphia’s December index of business conditions in the U.S. Mid-Atlantic region rose to 8.1 from -10.7 in November. Analysts were looking for a read of -3.


Google Inc agreed to sell set-top TV box maker Motorola Home to Arris Group Inc for $ 2.35 billion in cash and stock. Arris rose 6.6 percent to $ 15.51 while Google was little changed.


(Editing by Bernadette Baum)


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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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Best Practice Institute Introduces New Social Network that Promises ‘Future of 360′






A new social network, skillrater.com launched today, makes it easy for members to request work performance ratings from overseers, co-workers and direct reports across a domestic and global workforce.


West Palm Beach, Fla. (PRWEB) December 20, 2012






Skillrater.com, an online social network that launched today, makes it easy for members to request work performance ratings from overseers, co-workers and direct reports across a domestic and global workforce.


“This is the future of 360-degree assessment and social learning,” said the network’s creator, Louis Carter, CEO of Best Practice Institute.


“Get rated. Get better. Get noticed,” says Skillrater.com’s website, which describes the new social network as “the world’s first rating, networking and feedback tool on a social platform.”


Executives, employees and entrepreneurs who have already been friended, linked and tweeted can now get feedback and rating on their skill sets and work at Skillrater.com. Individuals may join the Skillrater social network at no cost; corporations may purchase a premium or enterprise membership to use Skillrater as an in-house platform for feedback, talent management and social networking.


The Next Thing in 360 Assessment and Corporate Social Networking


“I want to bring a revolution to 360 so that organizations become more open and transparent, and driven by the desire for employees to request feedback on their competencies/skills and activities they execute on a daily basis” said Carter, BPI’s founder and a social-organizational psychologist.


The world of work is becoming more open and transparent. “A new IBM study of 1709 Chief Executive Officers from 64 countries and 18 industries worldwide reveals that CEOs are changing the nature of work by adding a powerful dose of openness, transparency and employee empowerment to the command-and-control ethos that has characterized the modern corporation for more than a century.”


Employees using skillrater engage in conversations and threaded discussions around improving their activities at work. Instead of hiding feedback from employees, employees may receive immediate correction of negatively reinforcing workplace habits directly from their bosses, peers, and customers. Employees may continue the feedback process in a threaded discussion to receive deeper advice and help from executive coaches or other members of the team. Repeating this process will show measurable changes in behavior and actions over time for your organization, as well as show patterns for the changes that need to me made on an individual, team, and organization level. The employee requests feedback of others directly, so that a culture of accountability and feedback is encouraged. Instead of “big brother/sister” HR forcing feedback of competencies and workplace performance, employees take ownership for creating their own culture of transparency so they may show their progress toward growth.


One study found that as many as 90 percent of all Fortune 500 companies use 360-degree feedback with their employees. In a 360 assessment, feedback is sought from all directions of an employee’s circle: overseers, peers, direct reports, and sometimes even external sources, such as customers and suppliers.


Skillrater brings several innovations to the 360-degree process to make the technique easier to use and to increase the tool’s beneficial results. Features include:


“Skillrater is a great tool. Leaders and managers are going to fall in love with it,” said the world’s leading executive coach and bestselling author Marshall Goldsmith. “There is no better way for organizational leaders to track talent data. Skillrater gives you a simple way to request receive feedback on what you are doing, while building an in-house social network to discuss the feedback. The ability to customize Skillrater around the desired competencies of your organization is brilliant.”"


Focus on Leadership Development in Globally Dispersed Workforces


Most importantly, Carter said, Skillrater provides a social network through which members can springboard from quantitative ratings to qualitative discussions that make the feedback truly transformative. This is especially beneficial for dispersed workforces where consistent face-to-face communication is costly to accomplish.”


“Our goal is to create a social network within an organization that is focused on helping employees improve their skills and improve performance,” Carter said. “Skillrater is not primarily about promotion and pay decisions, it’s about leadership development and positive behavioral change throughout a national or global workforce.”


Studies have shown 360-degree feedback is an effective way to help workers identify their strengths and weaknesses, including blind spots in which they need further development. Skillrater’s convenient online platform, along with the addition of a social networking dimension, makes Skillrater a powerful leadership development for dispersed or collective learning environments.


After corporate clients learn their way around all the bells and whistles of Skillrater’s multi-rater feedback tool, Carter said, they will move on to appreciate the richness of the in-house social network, creating a dispersed learning environment in which ongoing leadership development and action learning is cultivated within domestic or global workforces.


Skillrater Benefits for Individual Users


Individuals may join Skillrater.com for free and choose up to five skills upon which to be rated. Top executives, mid-level rising stars and lower-level workers with an eye on advancement may all use Skillrater to request feedback and map their own course of development. Requesting a Skillrater rating is an excellent way for an individual to confirm satisfaction with a completed project or identify additional steps needed to achieve satisfaction. Using Skillrater, a worker can demonstrate to higher-ups one’s desire to perform well and also document tangible improvement.


An individual who has acquired several ratings on one’s Skillrater profile and has made those ratings public may catch the attention of employers on the search for talent. Skillrater will become a go-to destination for talent recruitment. Other social networks provide an individual’s name, personal background and employment history, but Skillrater provides rubber-meets-the-road details of how an individual has been evaluated by co-workers, clients and customers on actual projects.


Skillrater Benefits for Corporate Users


Companies may purchase an enterprise membership, giving executives an unparalleled tool for talent management and leadership development. Enterprise membership enables companies to enroll 1,000 users and place them in 20 groups or divisions.


For senior talent management executives, Skillrater provides a remarkable way to track the job performance, skill sets and leadership development of dozens, hundreds or even thousands of employees spread out across a national or global workforce. For years, connecting the right employees with the right tasks has been the elusive aim of talent management. With Skillrater, when a particular skill set is needed for a particular task, a manager can search on those specific skills, and then read fresh feedback on recent projects, including not only numerical ratings but subsequent comments and discussion. That is rich, valuable talent data, which Skillrater puts at executives’ fingertips.


Managers from different divisions may customize their own groups to have specific skills or competencies that are important for success on-the-job. Users can select these group skills when requesting ratings to get targeted feedback that meets the need of the department head or head of leadership development. The ability to customize skills is critical to an organization’s success, making this a key feature of Skillrater’s enterprise membership level.


VPs of leadership development have the ability to set up action learning groups with specific action items. Group members work together online to achieve goals and get ratings on the skills that will make them most successful on the action learning project. Changes in behavior and actual project results may be tracked over time, proving the ROI of the leadership development program.


How Does Skillrater Work?


Joining Skillrater is easy and painless. An individual can create a Skillrater profile in a few moments or import one’s profile and skill set from LinkedIn.


A Skillrater member may request a rating from anybody on anything. It really is that simple. The user simply clicks the “Request Rating” button, specifies the task or activity for which one seeks a rating and the specific skills on which feedback is desired.


Then the member sends off the rating requests. If the desired rater is already a Skillrater.com member, requesting a rating is just one additional click. If not, the user enters the desired rater’s email address, and a message is sent requesting the rating and providing the necessary link.


After feedback has been received, Skillrater notifies the user. Results include a spider chart, an easy-to-understand graphical interpretation of how the feedback lines up with one’s self-assessment. Users continue to share advice and further clarification via a discussion thread to continue the social learning and coaching experience online.


ABOUT BEST PRACTICE INSTITUTE


Best Practice Institute is an award-winning leadership development center, think tank, peer network, research institute and online learning portal with more than 10,000 corporate and individual members around the world. Corporate members include Walmart, Bank of America, Pfizer, Hilton Hotels Worldwide, Scripps and many more of the world’s top corporations. BPI is based in West Palm Beach, FL, and is on the web at http://www.bestpracticeinstitute.org. BPI is ranked as one of the top ten “Best in Leadership Development” by Leadership Excellence Magazine.


Louis Carter is the founder and CEO of Best Practice Institute. Carter is a social-organizational psychologist, concept innovator, entrepreneur and a highly regarded authority on learning, talent, leadership development and change. He is the author or co-author of 11 books and a regular contributor to Fast Company, Chief Learning Officer, Talent Management, and Training Magazine.


For More Information or to schedule an interview, please contact Louis Carter: 800-718-4274; lou(at)bestpracticeinstitute.org


Louis Carter
Best Practice Institute
800-718-4274
Email Information


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“Best Funeral Ever” premiere delayed after Newtown school shootings






LOS ANGELES (TheWrap.com) – Fans of death-centric reality TV will have to wait a little longer to dig into TLC‘s “Best Funeral Ever.”


TLC has pushed back the premiere of the special to January 6 at 10/9c in light of the school shootings in Newtown, Conn. last week.






“Best Funeral Ever” was initially scheduled to premiere on December 26 at 8/7c.


“Best Funeral Ever” centers around the Golden Gate Funeral Home in Dallas, which specializes in elaborate specialty funerals catering to the deceased’s interest. In the special, a doo-wop singer famous for his rib-sauce jingle receives a barbecue-themed sendoff, while a disabled man who was unable to ride roller coasters in mortal life receives a State Fair-themed funeral.


Since last Friday’s horrific shootings, a number of programs and other entertainment-related events have been moved out of sensitivity. Syfy, for one, decided not to air its scheduled episode of “Haven” on Friday night, because it contained elements of fictionalized school violence.


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Russia fund in consortium to back U.S. pharma firms






MOSCOW (Reuters) – Russian state technology firm Rusnano, alongside a group of investors, is investing $ 93 million in three U.S.-based pharmaceutical firms to develop drugs to treat illnesses such as epilepsy, the investors said on Wednesday.


Rusnano is making the investment with U.S. venture capital fund Domain Associates and other investors. Rusnano partnered with Domain in March with plans to invest around $ 760 million in U.S. healthcare and pharmaceutical firms to bring new drugs to the Russian market.






The three companies receiving investments – Marinus Pharmaceuticals, Lithera and Regado Biosciences – are portfolio companies of Domain and the investments will be used to register medications and undertake further clinical trials in the U.S. and Russia, the companies said.


Marinus is developing a drug for the treatment of epilepsy, Lithera works on products for aesthetic medicine and ophthalmology and Regado is developing antithrombotic products.


(Reporting by Megan Davies; Editing by Douglas Busvine)


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UBS in $1.5bn Libor rigging fine







Swiss banking giant UBS has agreed to pay $ 1.5bn (£940m) to US, UK and Swiss regulators for attempting to manipulate the Libor inter-bank lending rate.






It becomes the second major bank to be fined over Libor after Barclays was ordered to pay $ 450m to UK and US authorities in the summer.


Regulators worldwide are investigating a number of banks for rigging Libor.


Libor tracks the average rate at which the major international banks based in London lend money to each other.


The bank also admitted to manipulating Euribor and Tibor – the equivalent interest rates set by lenders in the eurozone and in Tokyo.


UBS said it had agreed to pay fines to regulators in three different countries:


It is the second-largest set of fines imposed on a bank to date, after the $ 1.9bn that HSBC agreed to pay US authorities earlier this month to settle allegations of money-laundering.


Continue reading the main story

Start Quote



The potential costs to [the banks] could be eye-watering if clients can prove they are out of pocket as a result of market rigging”



End Quote



The fine “demonstrates the co-ordinated approach regulators are now taking to serious conduct issues that affect jurisdictions internationally,” said Nick Matthews, a forensic accountant at consultancy Kinetic Partners.


The bank has also agreed to admit to committing wire fraud through its Tokyo office in the case of manipulating Libor rates for loans denominated in Japanese yen, among others.


It said it would seek a non-prosecution agreement with the DoJ covering the rest of the bank’s misbehaviour.


The fine is the latest blow for UBS, following the conviction of rogue trader Kweku Adoboli earlier this year for losing £1.4bn for the bank, a £500m settlement with US authorities for helping US citizens evade taxes.


UBS also suffered the worst losses of any bank from US sub-prime mortgages during the financial crisis, totalling 38bn, and necessitating a bailout from the Swiss authorities.


The bank still faces lawsuits in the US for mis-selling mortgage debt to other investors, including a $ 6.4bn claim by the US government-sponsored mortgage finance agencies Freddie Mac and Fannie Mae.


Trader collusion


UBS said the fines – along with other payouts for mis-selling mortgage debts in the US – were likely to result in the bank recording a loss of 2bn-2.5bn Swiss francs in its financial accounts for the last three months of the year, although it still expects to make a profit for the year as a whole.


Continue reading the main story

What is Libor?


  • Libor is the “London Inter-Bank Offered Rate”

  • It tracks the average interest rate at which the big international banks based in London are willing to lend to each other

  • The Libor rate is used to calculate payments under hundreds of trillions of dollars-worth of financial contracts, including mortgages and loans

  • Libor is set every day by the British Bankers’ Association, based on estimates submitted by a panel of a dozen or so banks of their borrowing costs

  • Banks are accused of lying about their real borrowing costs, in order to manipulate Libor for profit, and to make themselves look stronger during the financial crisis


The Swiss lender acknowledged its staff had manipulated the borrowing rates it submitted, which were then used to calculate the Libor rate – a benchmark interest rate that is used to calculate the payments on hundreds of trillions of dollars-worth of financial contracts – in order to make money on their trades.


According to the FSA, UBS had even gone so far as to give its traders formal responsibility for handling the bank’s submissions to the Libor-setting committee at the British Bankers’ Association – creating a direct conflict of interest, as the traders could profit depending on what they submitted.


Significantly, UBS also said its traders had colluded with their counterparts at other banks and brokerages.


The FSA said that UBS’s Tokyo office had made corrupt payments to brokerages – which helped to bring borrowers and lenders together anonymously in the inter-bank lending market – in order to enlist their support in manipulating Libor.


Besides UBS and Barclays, about a dozen other major banks are involved in setting Libor rates each day across a range of currencies, and most of them are understood to be still under investigation.


UBS chairman Axel Weber said: “The authorities have recognized UBS for the thoroughness of our investigation and our exceptional co-operation.”


According to the FSA, it would have fined UBS £200m, but gave the bank a 20% discount because it co-operated. Nonetheless, the £160m fine was still the largest ever imposed by the UK authority.


Barclays – which was the first bank to come clean over the scandal – has previously indicated that its fine of $ 450m would be overshadowed by the fines to be imposed on other culpable banks.


‘Not pretty reading’


Like Barclays, UBS also accepted that management had also told staff to submit inappropriately low estimated borrowing costs for the bank during the financial crisis, in order to give a false impression of the bank’s ability to borrow cheaply and maintain market confidence in the bank.


“We deeply regret this inappropriate and unethical behaviour,” said UBS chief executive Sergio Ermotti.


“No amount of profit is more important than the reputation of this firm, and we are committed to doing business with integrity.”




Former Schroders group managing director Philip Augar told BBC News that disadvantaged customers could take action against banks



The FSA said that the misconduct at UBS was extensive and widespread and involved at least 45 individuals.


“At least 2,000 requests for inappropriate submissions were documented – an unquantifiable number of oral requests, which by their nature would not be documented, were also made,” the FSA said.


“Manipulation was also discussed in internal open chat forums and group emails, and was widely known.”


It was so common that the FSA said every single Libor submission by UBS during the period it examined, from 2005 to 2010, may have been tainted.


“The findings we have set out in our notice today do not make for pretty reading,” said the FSA’s head of enforcement, Tracy McDermott.


Despite this, five separate internal audits by the bank’s compliance department failed to pick up on the misbehaviour.


BBC News – Business





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