Shaping a security team, Obama's challenge deepens

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Shaping a security team, Obama's challenge deepens

WASHINGTON (AP) — Barely a week after winning re-election, President Barack Obama suddenly confronts a deepening challenge in assembling a new national security team, his task complicated by a scandal that has cost him a CIA chief and raised doubts about his Afghanistan war commander.

Hard questions from Congress, potentially bitter confirmation hearings and a scandal of infidelity and inappropriate emails are suddenly shaping the fight ahead. The White House portrayed a president focused on the economy and confident in his military and intelligence leadership, but clearly not thrilled.

When asked if the personnel troubles were an unwelcome distraction, presidential spokesman Jay Carney said: "I certainly wouldn't call it welcome." World Hot Topics Blog

Obama was already expecting to have to replace his chief diplomat, Secretary of State Hillary Rodham Clinton, and perhaps his defense secretary, Leon Panetta. Those two alone — plus Treasury Secretary Timothy Geithner, who is also leaving — help shape Obama's thinking and represent him before the world.

Now Obama is without his CIA director, David Petraeus, the once acclaimed military general in Iraq and Afghanistan who resigned in disgrace last week over an extramarital affair.

The details of that scandal keep expanding Tuesday, including the revelation that the top U.S. commander in Afghanistan, Gen. John Allen, is under investigation by the Pentagon for potentially inappropriate communications with another woman in the case. That, in turn, has frozen Allen's nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe, which casts more doubt about a military leadership in which each move affects another.

"It's a hard moment for the administration," said Joshua Rovner, an associate professor of strategy and policy at the U.S. Naval War College in Rhode Island. "It certainly wasn't expected, but if anything good comes out of it, they do have a chance to take a long, hard look at strategy."

He noted that Petraeus had taken on such revered status for his military career that he won confirmation as CIA chief with little scrutiny. World Hot Topics Blog
World Hot Topics Blog

Even beyond the surprise difficulties, Obama could have trouble with the rest of his high-stakes turnover.

When Clinton leaves, a favorite to replace her is Susan Rice, an Obama loyalist who serves as U.S. ambassador to the United Nations. She could face a bruising confirmation hearing given that she was the first face of the administration's maligned explanation of the fatal attack on the U.S. consulate in Benghazi, Libya.

"She's clearly going to have a little more difficult time than she would have if she hadn't gone out on all those talk shows," said Sen. Jon Kyl, R-Ariz., the second-ranking Senate Republican. Kyl is retiring at year's end and likely would not get a vote on Rice, but he said: "As of right now, I wouldn't support her."

Sen. Marco Rubio, R-Fla., said Rice could have a difficult time winning confirmation, although he didn't take a position.

"I'm concerned about the fact that she went on Sunday shows and said it was the product of a spontaneous uprising as opposed to a terrorist attack. Why did they wait so long to publicly ...change their position on it? I think she'd have to answer questions about that, no doubt about it." World Hot Topics Blog

Some of Rice's key advocates predict Republican lawmakers would not have the inclination or the votes to try to block Obama from appointing the State Department chief he wants. Yet others expect her confirmation hearing to be contentious and are wary of picking that fight at the start of the second term.

The other top candidate for the State job is Sen. John Kerry of Massachusetts, who is expected to be confirmed easily by his chamber colleagues. His departure from the Senate, though, could potentially cost Obama's party a seat by creating an opening for the man who just lost the other Senate seat, Scott Brown.
The idea of Kerry as defense secretary, which has also been floated, is not one that he has expressed an interest in, according to people close to him.

For Obama, the post-election period was intended to focus on starting to enact the economic agenda at the core of his re-election bid. He and Congress are in the hunt for elusive compromise before Jan. 1 if they are to avoid a huge package of tax increases and spending cuts that could derail the economic recovery.
Obama is, in fact, pursuing that course. But a story involving sex, resignations, national security and congressional oversight has a way of grabbing attention. World Hot Topics Blog

Carney, the president's spokesman, characterized the cases of Petraeus and Allen as individual matters that reflected no broader theme or challenge.

"I really would ask you to not extrapolate broadly," Carney told reporters. "The president has great confidence in the military, great confidence in his commanders, and will continue to have that confidence."
That expression of confidence extends to Allen, which is significant given the state of America's longest war. Allen is due soon to give Panetta a recommendation on the pace of U.S. troop withdrawals in 2013; about 68,000 U.S. troops are still serving in a war that is on pace to continue until the end of 2014.

How long Panetta himself will lead the defense agency is yet another unknown for Obama. The Pentagon chief Panetta recently has indicated a willingness to stay on for at least some of Obama's second-term.

When asked whether he would rule out staying for all of Obama's second term, Panetta said: "Who the hell knows?"

Associated Press writers Donna Cassata, Julie Pace and Bradley Klapper contributed to this story.

This World Hot Topics Blog is Originally from here :

http:// news.yahoo.com/shaping-security-team-obamas-challenge-deepens-223316772--politics.html

Man arrested after leading deputies on 100 mph chase

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Man arrested after leading deputies on 100 mph chase along U.S. 41

Sheriff’s deputies say a 39-year-old North Naples man led them on a chase at speeds of more than 100 mph along U.S. 41.

Timothy J. Varble, of the 3300 block of Bermuda Isle Circle, was arrested early Saturday and charged with high-speed reckless fleeing and eluding a law enforcement officer with its lights and sirens active.

A Collier County sheriff’s deputy said he pulled over a pickup Varble was driving after the man made an improper U-turn at U.S. 41 and Immokalee Road about 11 p.m. Friday, reports stated. The deputy said Varble exited the truck and began walking toward him, saying his mother was in the hospital and wanted to leave.World Hot Topics Blog

The deputy, who had asked Varble to return to his pickup, said he found arrest warrants sought Varble on charges of failing to pay child support and driving with a suspended license. When the deputy said he was placing Varble under arrest, Varble fled in the truck north on U.S. 41.

The deputy said he pursued Varble, who was driving at speeds of more than 100 mph along U.S. 41. Varble eventually turned left onto Bonita Beach Road, heading west at speeds approaching 100 mph. Varble crashed his truck just west of Barefoot Beach Road and was treated and released from a hospital for injuries before being booked into the Naples Jail Center.

This World Hot Topics Blog is Originally from here :

http://www.naplesnews.com/news/2012/nov/11/report-man-arrested-after-leading-deputies-100-mph/?partner=popular

 

N.J. earthquake causes stir in midst of Sandy recovery

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N.J. earthquake causes stir in midst of Sandy recovery

N.J. earthquake update: Early Monday morning, an earthquake in New Jersey rocked residents in the small town of Ringwood. The temblor measured only 2.0 on the Richter scale, but in the wake of Hurricane "Superstorm" Sandy and widespread power outages, the rare shaking was unsettling.

Monday, the Christian Science Monitor reported that many residents of the town -- less than an hour's drive north from New York, heard a boom at the time of the N.J. earthquake.World Hot Topics Blog

The National Earthquake Information Center reported that shaking was felt in Wanaque, Mahwah, Franklin Lakes, Oakland, West Milford and Paterson. The good news is there are no reports of injuries.
The New Jersey earthquake Monday was the second since February of 2010. Again, this was a mild seismic event, measuring only 2.2 magnitude.

Hurricane "Superstorm" Sandy tore through the East Coast last week and left a path of destruction through several states, mainly in New York and New Jersey. NBCNews reports that as of Monday, 1,389,000 million people in the Mid-Atlantic are without power, down from two million from the day before.

With Election Day Tuesday, round-the-clock efforts are underway to get power restored to residents and businesses.

Did the N.J. earthquake affect your area? Share your shaking experiences.

This World Hot Topics Blog is Originally from here :

http:// www.examiner.com/article/n-j-earthquake-causes-stir-midst-of-sandy-recovery

Blizzard warning issued in West Virginia

World Hot Topics Blog

Blizzard warning issued in West Virginia

ELKINS, W.Va. (AP) — Wet snow and high winds spinning off the edge of superstorm Sandy spread blizzard conditions over parts of West Virginia and neighboring Appalachian states Tuesday, shutting one interstate as trucks and cars bogged down and knocking out power to many.

The National Weather Service said a foot and more of snow was reported in lower elevations of West Virginia, where most towns and roads are. High elevations in the mountains were getting more than two feet and a blizzard warning for more than a dozen counties was in effect until Wednesday afternoon.

At least 236,000 customers were without power in West Virginia early Tuesday. In Elkins, a city of about 7,000 people, power went out across town before dawn and the only lights were from passing snow plows as heavy, wet flakes piled up to about 8 inches.World Hot Topics Blog

The roofs of at least three homes collapsed under the weight of heavy snow, Gov. Earl Ray Tomblin said. No injuries were reported in the Tuesday accidents in Nicholas County. West Virginia National Guard troops helped the residents of the homes get to local shelters.

Tomblin says there's been no word of additional deaths or any serious injuries. Officials earlier reported a woman was killed Monday in a storm-related traffic accident in an area where about 5 inches of snow had fallen.

The governor is urging residents to stay off the roads. That will prevent mishaps and allow National Guard, Division of Highways and Division of Forestry crews to clear felled trees for utility repair workers.

Tomblin says forecasters estimate that the storm's brunt should clear the state by nightfall.

Authorities closed nearly 50 miles of Interstate 68 on either side of the West Virginia-Maryland state line for hours early Tuesday because of blizzard conditions and stuck vehicles.

More than 30 other highways and roads were closed in West Virginia by snow, ice, high water, and downed trees and power lines. Department of Transportation spokeswoman Leslie Fitzwater said. Schools were closed in at least 39 counties. Police rescued several stranded motorists on the interstate in West Virginia.

"It's a mess out there and people should stay home if they can until our first responders can get out there, clear the roads and get to those who need the most assistance," Fitzwater said. World Hot Topics Blog

On the Maryland side of I-68, a foot of snow triggered closures along a 40-mile stretch between LaVale and the West Virginia line.

Several westbound tractor-trailers jackknifed on Big Savage Mountain. Maryland State Police Sgt. Brian Broadwater said about 200 vehicles backed up behind the trucks. Travelers were turned around or detoured onto two-lane state highways that were also treacherous, prompting many to check into motels.

The depth of the early snow surprised some Appalachian residents in eastern Kentucky.

A tree heavy with snow fell on Claude Collier's truck Monday night in Jenkins, Ky. Collier, 50, says he has "never seen this much snow this early in the year." He said he and other residents lost power in the storm.

The storm also covered parts of the Virginia highlands, northeast Tennessee and northwest North Carolina.

At Great Smoky Mountains National Park on the border of Tennessee and North Carolina, park spokeswoman Dana Soehn reported 22 inches of snow at the highest elevations, with strong winds blowing drifts up to 4 feet deep. World Hot Topics Blog

Roads were closed throughout the park and a handful of hikers coming off sections of the Appalachian Trial on Tuesday morning reporting tangles of fallen trees and waist-deep drifts.

"We don't know exactly how many people are still up there, but we've not received any distress calls," Soehn said. "It's that heavy, wet snow, so it is difficult to plow."

Associated Press writer Bruce Schreiner in in Jenkins, Ky., contributed to this report.

This World Hot Topics Blog is Originally from here :

http:// news.yahoo.com/w-va-blizzard-warning-appalachia-storm-blows-123224169.html

Stock markets closed as storm hobbles New York

World Hot Topics Blog

Stock markets closed as storm hobbles New York

NEW YORK (Reuters) - U.S. stock and options markets will be closed on Monday, and possibly Tuesday, as regulators, exchanges and brokers worry about the integrity of markets and the safety of employees in the face of Hurricane Sandy.

Market participants and regulators decided late on Sunday to shut the market, reversing a plan to keep electronic trading going on Monday. Bond markets will remain open, but will close at noon, a trade group said. World Hot Topics Blog

The decision to close stock and options markets came after regulators, exchanges, and dealers discussed the unknowns that would have been tested if the markets opened on Monday, three sources familiar with the situation said.

For example, NYSE Euronext's New York Stock Exchange had initially planned to shut its physical trading floor, which would have meant operating as an all-electronic exchange for the first time.

The decision to shut down the stock markets came after Wall Street had prepared to open for business on Monday with limited staffing after a mass transit shut-down in New York, booking hotel rooms for key employees and leaning on offices in other cities.

Wall Street banks, including Goldman Sachs Group Inc and Citigroup Inc, activated their emergency plans, which many firms put in place after the September 11, 2001, attacks. It was not immediately clear if those plans had also changed. World Hot Topics Blog

Some bank offices in lower Manhattan's Financial District are in evacuation zones and most non-critical staff and employees who don't rely on high-speed systems, including some investment bankers, were asked to work from home.

"SUPER STORM"
The storm is expected to slam into the U.S. East Coast on Monday night, bringing torrential rain, high wind, severe flooding and power outages. The rare "super storm" - created by an Arctic jet stream wrapping itself around a tropical storm - could be the biggest to hit the U.S. mainland, forecasters said.

The scramble started early as the threat of the storm forced the New York mass transit system to shut down on Sunday evening, leaving tens of thousands of employees stuck at home.

About 8.5 million commuters use the Metropolitan Transit Authority's transit lines daily, meaning most Wall Street employees would be unable to get to work. New York City Mayor Michael Bloomberg also closed public schools and ordered an evacuation of 375,000 people in coastal areas, including downtown offices of banks such as Citigroup. World Hot Topics Blog

The major exchanges and most big trading firms have alternate trading facilities if downtown Manhattan is inaccessible, but the storm's wide path may affect a number of sites in the New York metropolitan area. Authorities have warned of possible widespread power outages that could last for days.

Wall Street was spared the worst of Hurricane Irene in August last year. Officials had feared Hurricane Irene would flood lower Manhattan and cripple business in the world's financial capital, but the flooding was minor and there were no major disruptions at the exchanges.

All of the U.S. exchanges, as well as major broker-dealers, and regulators were involved in the decision to close the markets, according to several executives at exchanges and financial firms.

The U.S. markets have seen three high-profile snafus this year, beginning with the failed IPO of BATS Global Markets, the No. 3 U.S. equities exchange, on its own exchange; Facebook Inc's botched markets debut on Nasdaq's exchange; and a software glitch that cost trading firm Knight Capital well over $400 million, nearly forcing it into bankruptcy. World Hot Topics Blog

BOND MARKETS
The Securities Industry and Financial Markets Association said earlier on Sunday it is recommending an early close of noon EDT on Monday for the trading of U.S. dollar-denominated, fixed-income securities. It said its member firms should decide for themselves whether their fixed-income departments remain open for trading.

The foreign exchange market's activity generally follows the fixed income markets.
The New York Federal Reserve has calls scheduled for early Monday morning with dealers to see what each dealer is doing to cope with the storm, and will modify its market activities accordingly.

In Washington, the Commerce Department said it would post its report on personal income and spending for September on its website at 8:30 a.m. as scheduled, even though the federal government was closed.
The Federal Reserve said it would postpone its regularly scheduled releases, including its weekly report on selected interest rates and daily commercial paper data. The Fed said it would release the data when federal offices in the Washington area reopened. World Hot Topics Blog

CME Group Inc said it will be closing its U.S. equity index futures and equity index options on futures markets on the trading floor and on CME Globex at 8:15 a.m., Central Time, on Monday. All other CME Group futures and options on futures markets will remain open.

IntercontinentalExchange Inc said trading in the ICE Futures Russell equity index futures and options will close early, at 9:15 a.m. Eastern Time on Monday. It said ICE Clear Credit will close at noon Eastern Time on Monday, with the U.S. fixed income markets. It said all other ICE markets and clearing houses will remain open and follow regular market hours.

WORK FROM HOME
Goldman, whose office in lower Manhattan is in one of the areas to be evacuated, told employees earlier on Sunday that it would open for business, with some staff working from offices in Greenwich, Connecticut, and in Princeton, New Jersey. It also plans to use teams in London and other locations around the world for support.

Citigroup, which has three buildings in the evacuation zone, said "non-critical personnel should invoke their work-from-home strategies." World Hot Topics Blog

JPMorgan Chase & Co said its buildings were still open Monday and the bank was planning to be fully operational, using resources in the United States, Europe and Asia.

For many investment bankers and private equity executives, working from home will make the most sense. Blackstone Group planned to close its office on Monday.

Hurricane Sandy also led to some events being canceled or postponed. Citigroup Prime Brokerage postponed a hedge fund event that had been scheduled for Tuesday.

(Reporting by John McCrank, David Gaffen, Caroline Humer, David Henry, Charles Mikolajczak, Richard Leong, Edward Krudy, Lauren LaCapra, Dan Wilchins and Rick Rothacker; Editing by Paritosh Bansal, Jennifer Merritt, Tiffany Wu, Maureen Bavdek, Dale Hudson, Gary Crosse and Robert Birsel)

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Stock markets closed as storm hobbles New York

http:// news.yahoo.com/stock-markets-closed-monday-storm-hobbles-york-042724131--sector.html

US govt sues Bank of America on allegations of mortgage fraud

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US govt sues Bank of America on allegations of mortgage fraud

WASHINGTON: The US government has sued Bank of America for $1 billion on allegations of a multi-year mortgage fraud.

In a complaint filed in a New York court, the department of justice alleged that from 2007 through 2009, Countrywide, and later Bank of America after it acquired Countrywide, implemented a new loan origination process called the Hustle, which was intentionally designed to process loans at high speed and without quality checkpoints.

This generated thousands of fraudulent and otherwise defective residential mortgage loans sold to Fannie Mae and Freddie Mac that later defaulted, causing over $1 billion in losses and countless foreclosures.

This is the first civil fraud suit brought by the department of justice concerning mortgage loans sold to Fannie Mae or Freddie Mac. World Hot Topics Blog

"For the sixth time in less than 18 months, this office has been compelled to sue a major US bank for reckless mortgage practices in the lead-up to the financial crisis," said US attorney Preet Bharara.

"Countrywide and Bank of America systematically removed every check in favour of its own balance - they cast aside underwriters, eliminated quality controls, incentivised unqualified personnel to cut corners and concealed the resulting defects.

"These toxic products were then sold to the government sponsored enterprises as good loans.

"This lawsuit should send another clear message that reckless lending practices will not be tolerated," Bharara said in a statement. World Hot Topics Blog
World Hot Topics Blog
This is an act of tiny margins relative to the size of the organisations and relative to the fraud committed, William K Black, a former bank regulator who teaches economics and law at the University of Missouri, told The Washington Post.

"Prosecutors can't argue that these cases will serve as a deterrence when there have been no criminal indictments of senior executives," he said.

"At some point, Bank of America can't be expected to compensate every entity that claims losses that actually were caused by the economic downturn," said the Bank of America spokesman, Lawrence Grayson.

Bank of America "acted responsibly to resolve legacy mortgage matters", Grayson said.

"The claim that we failed to repurchase loans from Fannie Mae is simply false," he added.

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US govt sues Bank of America on allegations of mortgage fraud

http:// timesofindia.indiatimes.com/world/us/US-govt-sues-Bank-of-America-on-allegations-of-mortgage-fraud/articleshow/16949362.cms