Case of Wall Street greed gone too far

Goldman Sachs CEO Lloyd Blankfein was one of the executives whose stock award was accelerated to beat higher tax rate.

STORY HIGHLIGHTS

• Goldman Sachs granted $65 million in stock to execs before new tax rates began


• Susan Antilla says the firm's CEO had endorsed higher rates, called for entitlement cuts


• She says Goldman benefits from the implicit promise that U.S. will bail it out


• Antilla: It was unseemly for Goldman to rush the payments to shield execs from new rates

Editor's note: Susan Antilla is a columnist at Bloomberg View and a contributor to TheStreet.com. She has written about finance for more than 30 years. She is author of "Tales From the Boom-Boom Room: The Landmark Legal Battles That Exposed Wall Street's Shocking Culture of Sexual Harassment." Follow her on Twitter @antillaview.

(CNN) -- Nobody likes to pay taxes, so can you blame the good folks at Goldman Sachs & Co. for doing what they could to avoid the higher rates that kicked in on January 1?

While the rest of us were donning our party clothes on New Year's Eve, the legal worker bees at Goldman were pushing the send button on 10 regulatory filings to the Securities and Exchange Commission.

By the time the ball dropped in Times Square, regulators had been notified that $65 million in Goldman stock had been granted a month early, helping a cluster of powerful multimillionaire executives trim their tax tab.

Among the 10 who shared that $65 million, Chief Executive Officer Lloyd Blankfein, Chief Operating Officer Gary Cohn and Chief Financial Officer David Viniar wound up with $8.4 million apiece in Goldman stock.

Susan Antilla

Blankfein's compensation in 2011 was $16.2 million. Cohn and Viniar that year made $15.8 million. Even Gordon Gekko would be impressed to see that bosses making that much money were able to catch a tax break for a couple hundred thousand.

The 10 executives who skirted 2013's higher rates were not the only Goldmanites who benefited from the "accelerated" vesting. Michael DuVally, a Goldman spokesman, acknowledged there was "a group larger than" the 10 but declined to say how many. DuVally would not comment on who made the decision to grant the shares early.

The shrewd Goldman move is hardly unique among rich business executives or even 99 percenters of more modest means. It was no secret that higher taxes were coming this year, and taxpayers of all shapes and sizes did what they could to ensure that "tax events" would occur in 2012.

Even environmental activist and Nobel Prize winner Al Gore tried, albeit without success, to unload his Current TV to Al Jazeera before the new year dawned.

What makes the Goldman move distasteful is that it wasn't even two months ago that CEO Blankfein was mouthing off in a Wall Street Journal op-ed that he endorsed tax increases "especially for the wealthiest" -- along with a plug to cut entitlements to all you freeloaders out there.

If you're pushing the position that the rich should pay more to help fix the deficit, it doesn't quite follow to employ a tax dodge, says Dennis Kelleher, president of the Washington-based public interest group Better Markets Inc.

"Goldman's quickie year-end tax shenanigans deprived the government of what it otherwise would get," he says. "So they either cause the debt to go up, or cause others to pay more by the taxes they are avoiding."

DuVally, the Goldman spokesman, declined to comment when I asked whether it was inconsistent for Goldman to make a move for its executives to avoid taxes after Blankfein endorsed increases for the wealthy.

I've got to hand it to Goldman. The firm is a master of the "have-your-cake-and-eat-it-too" brand of politics and public relations. One minute, Goldman is cranking out press releases about its devotion to women entrepreneurs in its philanthropic "10,000 women" program. The next, it is announcing its annual list of new partners that includes a paltry 10 women but 60 men.

Goldman was a victim on the defensive when Greg Smith, a former employee, wrote a New York Times op-ed on March 14, blasting the firm for having "morally bankrupt people" who needed to be weeded out. You could almost feel sorry for poor Goldman, which shipped out a memo reminding employees that their estimable employer had been named one of the best places to work in the United Kingdom only weeks before the London-based Smith's "Why I Am Leaving Goldman Sachs" essay.

By the time Smith published a book seven months later, the firm had turned ruthless revenge-seeker, even sharing parts of Smith's self-evaluations with the media. A "best place to work?" Really? Careful what you say in the press -- and in your HR file -- if you get your paycheck from a Goldman-style operation.

The brouhaha over Smith's op-ed and book stirred up debate of the "What did you expect of an investment bank operating in capitalistic society?" type.

Fair enough. Banks are not in the philanthropy business -- even if they spend as much time as Goldman does talking about its good deeds and famous "business principles." ("Our clients always come first" is famously No. 1 on the list.)

At Goldman and other "too big to fail" banks, though, employees walk through the doors each morning knowing that the rest of us will be forced to bail them out again should another crisis ensue. We taxpayers provide the insurance policy that they enjoy without ever sending us premiums. In October of 2008, Goldman got $10 billion in taxpayer money from the Troubled Asset Relief Program, which it ultimately paid back.

Blankfein, like other bank CEOs, would later make the case that Goldman wasn't "relying on" that government help.

But leaf through the tomes of some of the regulators who lived through the crisis, and you start to wonder whether our tax-dodging heroes might be out of jobs today if the public hadn't fronted a bailout.

From "Bull by the Horns," by former Federal Deposit Insurance Corp. chairman Sheila Bair: Goldman and Morgan Stanley were "teetering on the edge" in the fall of 2008.

From "Bailout: An Inside Account of how Washington Abandoned Main Street While Rescuing Wall Street," by Neil Barofsky, former special inspector general to oversee the Troubled Assets Relief Program: Federal Reserve chairman Ben Bernanke "confided that he believed that Goldman Sachs would have been the next to go" after Morgan Stanley.

We need to change the conversation here.

Goldman and its too-big-to-fail brethren are banks that accepted welfare and are in debt to U.S. taxpayers for averting disaster. This hasn't been about hard-nosed capitalism since those first TARP wire transfers made their way into Goldman Sachs' coffers.

As for the bank's recent tax-reduction maneuver, it's another reminder that Goldman's management is either clueless about how bad it looks or doesn't care. Sometimes bad PR is a just a cost of doing business.

Follow @CNNOpinion on Twitter

Join us at Facebook/CNNOpinion

The opinions expressed in this commentary are solely those of Susan Antilla.

Read More..

China economy to overtake US by 2019: state research

BEIJING: China will overtake the United States economically within six years, an official research institute predicts, and go on to become the world's most important country in three decades more, state media said Wednesday.

The findings came from the Nation's Health Report issued by the Chinese Academy of Sciences, the Global Times said, without giving details of the criteria used for the prediction.

China's economy would be larger than that of the US by 2019, it cited the document as saying, and China's "international status" would exceed that of the US by 2049, the 100th anniversary of the founding of the People's Republic.

"National health" was defined as a country's "overall conditions... using resource sufficiency and wealth distribution as the major criteria", the Global Times said, but did not go into specifics.

China ranked as the 11th "healthiest" country out of some 100 nations, it said, just behind Costa Rica, with Sweden in top position.

The official Xinhua news agency said China was given a national health status of "up to standard", though the US, Japan and Britain were deemed "health deficient".

The report could not immediately be independently obtained from the Chinese Academy of Sciences.

China's stunning economic growth rates, increases in military spending and overlapping security interests in the Asia-Pacific region with the US have sparked concerns the countries could find themselves increasingly at odds in coming decades as they jockey for global influence.

But the Global Times, which has close ties to China's ruling Communist Party, said the document's findings were seen by some as overly nationalistic.

"The report is indicative of an anti-US sentiment in Chinese society," Fang Zhouzi, described as a prominent whistleblower on academic fraud, told the paper.

"It casts the US as a potential threat and links the goals of China's national revival to surpassing the US," he added.

Decades of economic reform and openness to foreign investment have propelled China from a poor, overwhelmingly agricultural country to become the world's second-largest economy behind the US.

International analysts widely expect China's economy, given its high growth rates, to overtake the US in terms of gross domestic product, or total size, sometime in the first half of this century, though differ on exact timing and criteria.

But they also see the US as likely to remain wealthier on a per capita basis given China's huge population of 1.3 billion, with that of the US currently at about 315 million.

-AFP/fl

Read More..

Aurora audio: 30 shots in 27 seconds

STORY HIGHLIGHTS

• NEW: Shooter used steel-core rounds in attack, police officer says


• Detective: Holmes used paper bags for puppets as police tried to interview him


• The lead detective says he didn't need to order toxicology tests


• Police also play 911 calls from the July 20 shooting rampage

Centennial, Colorado (CNN) -- James Holmes sat in the interrogation room in his T-shirt, white socks and boxers.

Gone was the body armor that police found him wearing when they encountered him outside a movie theater where scores of people had been shot. Police had cut it off.

Craig Appel -- the lead detective in the investigation into the 12 killings at the Century Aurora 16 Multiplex Theater in Aurora, Colorado -- testified Tuesday that paper bags had been placed over Holmes' hands to potentially preserve evidence. As Holmes was being interviewed, he used the paper bags as puppets.

He played with his polystyrene drinking cup as if it were a piece in a game. Appel said

He removed a staple from the table and tried to stick it in an electrical outlet, the detective testified.

Asked by a defense attorney whether he had ordered a blood test for Holmes, Appel said he had not.

"There were no indications that he was under the influence of anything," he said.

Appel testified that investigators found 76 shell casings at the auditorium where Holmes is accused of killing 12 people and wounding 58 more on July 20, at a midnight movie showing. Most of the spent rounds -- 65 -- were .223 caliber, while six were shotgun shells and five were .40 caliber.

Aurora police Sgt. Matthew Fyles testified the .223 cartridges were steel-core rounds, which are more likely to pass through a body intact and can cause multiple wounds.

The details came on the second day of Holmes' preliminary hearing, which could last all week. It is meant to prove to Arapahoe County District Judge William Sylvester that prosecutors have enough evidence to proceed to trial.

Attorneys for Holmes, a 25-year-old former neuroscience graduate student at a nearby university, are expected to seek a "diminished capacity" defense that could prevent the case from getting that far. Some of their questions during cross-examination have also suggested they are trying to make it appear Holmes might have been under the influence of something the night be was arrested.

The term "diminished capacity," according to the Colorado Bar Association, relates to a person's ability or inability "to make adequately considered decisions" regarding his or her legal representation because of "mental impairment or for some other reason."

The day wrapped up with Fyles, who detailed what happened to each of the victims, including a dozen people who were injured as people tried to flee.

Fyles will testify again Wednesday morning as the last prosecution witness. The defense is allowed to call two witnesses.

Chilling 911 calls played

Also Tuesday, prosecutors played the first 911 calls from the movie theater shooting as they continued building their case at a preliminary hearing.

The recording was loud, chaotic and difficult to understand. There was too much sound to make out what the caller was saying.

Just one thing is unmistakable: the sound of gunshots. At least 30 of them. In 27 seconds.

Detective Randy Hansen testified that the first call to authorities came 18 minutes after the film started. More trickled in until the torrent was complete: 41 calls in all, he said.

Because the movie was still playing and, in at least one, the gunman was still stalking the theater, the calls are difficult to make out. In one, a 13-year-old girl called to say her cousins had been shot. A 911 operator tried to lead the sobbing girl through performing CPR on one who was still breathing.

Family members of victims attending the hearing held each other and choked back tears as the calls were played.

Police describe elaborate setup in apartment

After detailing the calls, prosecutors turned to the intricate explosive web authorities say Holmes left in his apartment, including jars of homemade napalm with bullets suspended inside and topped with thermite, a material that burns so hot it is nearly impossible to put out.

In photos displayed in court, the mixture looked like amber-colored gelatin.

Elsewhere in the sparsely decorated apartment, a container of glycerin hung connected to a tripwire, ready to tip into a frying pan that held a homemade substance that would have sent sparks flying onto carpets soaked in oil and gas, setting them aflame, FBI bomb technician Garrett Gumbinner testified. A robot sent inside discovered the tripwire.

He said Holmes also told him that he had left a boombox by a trash container outside his apartment rigged to start playing loud music 40 minutes after he turned it on.

Next to it, Holmes said, he left a remote-control toy car and a control device that would set off the explosives inside his apartment, Gumbinner testified.

Appel said someone took the boombox into an apartment where police recovered it and found Holmes' prints on it. They never located the toy car, he said.

Also, Steve Beggs, a supervisory agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives, testified that Holmes had purchased 6,295 rounds of ammunition and four firearms beginning in May. Ten weeks before the attack, on May 10, he bought two canisters of tear gas over the Internet, Beggs said.

He was still buying materials into July, Beggs said, testifying that authorities have video of Holmes buying an accessory at a Colorado gun store on July 1. In the video, he said, Holmes' hair is bright orange.

Court room packed with family, spectators

In Monday's first day of testimony, police officers recounted arriving at the movie theater to find a detached, sweaty Holmes outside and a horrific scene inside the theater, where the floor had become slippery with blood and cell phones rang unanswered.

Aurora survivors: How they're doing

Holmes was a doctoral student in Aurora, in the neuroscience program at the Anschutz Medical Campus of the University of Colorado, Denver, until he withdrew a month before being arrested outside the bullet-riddled movie theater. He had been a patient of a University of Colorado psychiatrist, according to a court document filed by his lawyers.

Holmes did not speak during Monday's hearing. His bushy hair and long beard contrasted with the bright red hair and close-cropped facial hair he sported during previous appearances.

During portions of the hearing, family members of victims held one another, sobbing.

Security was tight. Spectators had to pass through a metal detector and then were searched again before entering the courtroom. At least nine armed officers stood guard inside, some of them scanning the audience packed with reporters and victims' family members.

University releases e-mails related to Holmes

CNN's Casey Wian and Jim Spellman reported from Colorado; Michael Pearson wrote from Atlanta. CNN's Michael Cary and Greg Botelho also contributed to this report.

Read More..

AP: Gov. Richardson pressing N. Korea to open Internet

Former New Mexico Gov. Bill Richardson is interviewed by journalists after arriving at Pyongyang International Airport in Pyongyang, North Korea, Monday, Jan. 7, 2013. Richardson arrived in the North Korean capital with Executive Chairman of Google Eric Schmidt, and called the trip a private humanitarian visit. / AP Photo/Kim Kwang Hyon

PYONGYANG, North Korea Former New Mexico Gov. Bill Richardson said Wednesday that his delegation is pressing North Korea to put a moratorium on missile launches and nuclear tests and to allow more cell phones and an open Internet for its citizens.

12 Photos

Google exec. visits North Korea

Play Video

Bill Richardson, Eric Schmidt arrive in North Korea

Richardson told The Associated Press in an exclusive interview in Pyongyang that the group is also asking for fair and humane treatment for an American citizen detained in North Korea.

"The citizens of the DPRK (North Korea) will be better off with more cell phones and an active Internet. Those are the three messages we've given to a variety of foreign policy officials, scientists" and government officials, Richardson said.

He is accompanied by Google Executive Chairman Eric Schmidt and Google Ideas think tank Director Jared Cohen on what Richardson has called a private, humanitarian trip. Schmidt, who is the highest-profile U.S. business executive to visit North Korea since leader Kim Jong Un took power a year ago, has not spoken publicly about the reasons behind the journey to North Korea.

The high-profile visit comes just weeks after North Korea launched a long-range rocket to send a satellite into space. Washington has condemned the launch as a banned test of missile technology.

Schmidt, who oversaw Google's expansion into a global Internet giant, speaks frequently about the importance of providing people around the world with Internet access and technology. Google now has offices in more than 40 countries, including all three of North Korea's neighbors: Russia, South Korea and China, another country criticized for systematic Internet censorship.

He and Cohen have collaborated on a book about the Internet's role in shaping society called "The New Digital Age" that comes out in April.

Using science and technology to build North Korea's beleaguered economy was the highlight of a New Year's Day speech by leader Kim Jong Un.

New red banners promoting slogans drawn from Kim's speech line Pyongyang's snowy streets, and North Koreans are still cramming to study the lengthy speech. It was the first time in 19 years for North Koreans to hear their leader give a New Year's Day speech. During the rule of late leader Kim Jong Il, state policy was distributed through North Korea's three main newspapers.

Read More..

Dead Lotto Winner's Wife Seeks 'Truth'

The wife of a $1 million Chicago lottery winner who died of cyanide poisoning told ABC News that she was shocked to learn the true cause of his death and is cooperating with an ongoing homicide investigation.

"I want the truth to come out in the investigation, the sooner the better," said Shabana Ansari, 32, the wife of Urooj Khan, 46. "Who could be that person who hurt him?

"It has been incredibly hard time," she added. "We went from being the happiest the day we got the check. It was the best sleep I've had. And then the next day, everything was gone."

Ansari, Khan's second wife, told the Chicago Sun-Times that she prepared what would be her husband's last meal the night before Khan died unexpectedly on July 20. It was a traditional beef-curry dinner attended by the married couple and their family, including Khan's 17-year-old daughter from a prior marriage, Jasmeen, and Ansari's father. Not feeling well, Khan retired early, Ansari told the paper, falling asleep in a chair, waking up in agony, then collapsing in the middle of the night. She called 911.

Khan, an immigrant from India who owned three dry-cleaning businesses in Chicago, won $1 million in a scratch-off Illinois Lottery game in June and said he planned to use the money to pay off his bills and mortgage, and make a contribution to St. Jude Children's Research Center.

"Him winning the lottery was just his luck," Ansari told ABC News. "He had already worked hard to be a millionaire before it."

Illinois Lottery/AP Photo

Chicago Lottery Winner Died From Cyanide Poisoning Watch Video

Lottery Murder Suspect Dee Dee Moore Found Guilty Watch Video

Lottery Winner Murder Trial: Opening Statements Begin Watch Video

Jimmy Goreel, who worked at the 7-Eleven store where Khan bought the winning ticket, described him to The Associated Press as a "regular customer ... very friendly, good sense of humor, working type of guy."

In Photos: Biggest Lotto Jackpot Winners

Khan's unexpected death the month after his lottery win raised the suspicions of the Cook County medical examiner. There were no signs of foul play or trauma so the death initially was attributed to arteriosclerotic cardiovascular disease, which covers heart attacks, stroke or ruptured aneurysms. The medical examiner based the conclusion on an external exam -- not an autopsy -- and toxicology reports that indicated no presence of drugs or carbon monoxide.

Khan was buried at Rosehill Cemetery in Chicago.

However, several days after a death certificate was issued, a family member requested that the medical examiner's office look further into Khan's death, Cook County Medical Examiner Stephen Cina said. The office did so by retesting fluid samples that had been taken from Khan's body, including tests for cyanide and strychnine.

When the final toxicology results came back in late November, they showed a lethal level of cyanide, which led to the homicide investigation, Cina said. His office planned to exhume Khan's body within the next two weeks as part of the investigation.

Melissa Stratton, a spokeswoman for the Chicago Police Department, confirmed it has been working closely with the medical examiner's office. The police have not said whether or not they believe Khan's lottery winnings played a part in the homicide.

Khan had elected to receive the lump sum payout of $425,000, but had not yet received it when he died, Ansari told the AP, adding that the winnings now are tied up as a probate matter.

"I am cooperating with the investigation," Ansari told ABC News. "I want the truth to come out."

Authorities also have not revealed the identity of the relative who suggested the deeper look into Khan's death. Ansari said it was not her, though she told the AP she has subsequently spoken with investigators.

"This is been a shock for me," she told ABC News. "This has been an utter shock for me, and my husband was such a goodhearted person who would do anything for anyone. Who would do something like this to him?

"We were married 12 years [and] he treated me like a princess," she said. "He showered his love on me and now it's gone."

Read More..

Why Al Jazeera deal doesn't seem right

STORY HIGHLIGHTS

• Al Gore sold Current to al Jazeera and could net an estimated $70 million


• Howard Kurtz: Gore's Current network failed to gain an identity or viewers


• He says it's odd that the former vice president is selling to an oil-rich potentate


• Kurtz: Al Jazeera may have a tough time getting traction with U.S. viewers

Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.

(CNN) -- So Al Gore starts a liberal cable network, which turns into a complete and utter flop, then sells it to a Middle East potentate in a deal that will bring him an estimated $70 million.

Is America a great country or what?

There is something highly unusual -- OK, just plain weird -- about a former vice president of the United States doing this deal with the emir of Qatar, Sheikh Hamad bin Khalifa al-Thani.

Howard Kurtz

Al Jazeera, owned by said emir's government, is trying to buy its way into the American television market by purchasing Current TV for a half billion dollars. The only thing stranger would be if Gore had sold Current to Glenn Beck -- oh wait, Beck did try to buy it and was told no way within 15 minutes.

So the sale was in part about ideology, which opens the door to examining why Gore believes Al Jazeera gives "voice to those who are not typically heard" and speaks "truth to power."

Bill O'Reilly, on Fox News, calls the network "anti-American." Fox pundit Dick Morris says Gore has sold to a fount of "anti-Israel propaganda." Such labels are rooted in the network's role during the height of the war on terror, when it aired smuggled videos of Osama bin Laden and was denounced by Bush administration officials.

Watch: How Lance Armstrong lied to me about doping

But Al Jazeera English, the spinoff channel launched in 2006, doesn't have the same reputation. In fact, no less a figure than Secretary of State Hillary Clinton has praised it as "real news," and the channel has won journalism awards for its reporting on the Arab Spring and other global events.

To be sure, the main Al Jazeera network gives a platform to such figures as Yusuf al-Qaradawi. He's the Muslim cleric in Egypt who, The Washington Post gas reported, frequently appears on air to castigate Jews and America and has praised suicide bombings. But when I went to the home page of Al Jazeera English the other day, there was video of David Frost, the acclaimed British journalist who now works for the main network, interviewing Israeli President Shimon Peres.

That's not to say Al Jazeera America, the working name for the new channel, won't have its own biases. Al Jazeera English is sometimes determined to paint the U.S. in a negative light.

During a report on President Barack Obama signing a renewal of the Foreign Intelligence Surveillance Act, which entails a legitimate controversy over civil liberties, the reporter said flatly that the law "violate(s) U.S. constitutional rights in the name of national security."

Watch: Can Al Jazeera make it in the American market?

Dave Marash, the ABC News veteran who once worked for Al Jazeera English, told me the network has a "post-colonial" view of America and its stories can be infused with that attitude.

And there are real questions about how independent these channels are from the Qatar government that helps bankroll them. The director-general of Al Jazeera, Sheikh Ahmed bin Jassim al-Thani, is a member of the country's royal family and has no background in journalism.

Such details add to the odd spectacle of the ex-veep, who would have been running Mideast policy had he won a few more votes in Florida, selling -- and some say selling out -- to the emir. Not to mention that the crusader against climate change is taking petrodollars from an empire built on oil, the bete noire of environmentalists.

Watch: Hey Fox, Hillary Clinton was sick after all

But what is Al Jazeera buying? The network is going to have a tough time cracking the American market.

Its earlier reputation makes the company highly controversial, and other cable carriers might follow the lead of Time Warner Cable (which is no longer owned by CNN's parent company, Time Warner) in refusing to carry it. These carriers agreed to air Current TV, after all, and contracts generally require them to approve a major change in programming.

Global politics aside, it may just be bad business. There's a reason Al Jazeera English, which will supply 40% of the content to the new channel, has barely gotten a foothold in the United States. Most Americans aren't lusting for a steady diet of international news.

Watch: Did Nancy Pelosi go too far in photoshopping picture of congresswomen?

There's no denying that Gore, a onetime newspaper reporter who had testy relations with the press during his 2000 campaign, presided over a lousy cable channel. No one quite knew what Current was during the years when it aired mostly low-rent entertainment fare and was famous mainly for North Korea taking two of its correspondents, including Lisa Ling's sister Laura, into custody.

Then Gore tried to relaunch it as a talking head channel to the left of MSNBC, hiring Keith Olbermann -- a relationship that ended with his firing and mutual lawsuits -- along with the likes of Eliot Spitzer and Jennifer Granholm, former Michigan governor. Gore himself offered commentary during major political events.

It was the utter failure of that incarnation of Current that prompted Gore and co-founder Joel Hyatt to put the thing up for sale.

Some detractors have slammed Gore for hypocrisy because, while he has advocated higher taxes on the rich, he tried to get the Al Jazeera deal done by December 31 to avoid the Obama tax hike. (The sale didn't close until January 2.) I don't see a problem trying to legally take advantage of changes in the tax code, no matter what your political stance.

Nor do I want to prejudge Al Jazeera America. The marketplace will decide its fate.

But there is something unsettling about Gore making off with such a big payday from a government-subsidized channel after making such bad television. Nice work if you can get it.

Follow @CNNOpinion on Twitter

Join us at Facebook/CNNOpinion

The opinions expressed in this commentary are solely those of Howard Kurtz.

Read More..

Indian guru blames Delhi rape victim, sparks outrage

NEW DELHI: A popular Indian spiritual guru sparked a backlash Tuesday after saying a 23-year-old student could have averted a murderous gang-rape by begging for mercy from her attackers.

Self-styled godman Asharam, known to his followers as "Bapu" or father, told his devotees that blame for the assault on a moving bus in New Delhi on December 16 should not just rest with her attackers.

"This tragedy would not have happened if she had chanted God's name and fallen at the feet of the attackers. The error was not committed by just one side," he said in video footage which has been widely circulated on the Internet.

The 71-year-old's remarks -- the latest in a series of gaffes by public figures blaming women for the country's rape epidemic -- drew a chorus of condemnation.

Ravi Shankar Prasad, spokesman for the Hindu nationalist Bharatiya Janata Party (BJP), said the statement was "deeply disturbing and painful".

"For him to make the statement in relation to a crime which has shocked the conscience of the country is not only unfortunate but deeply regrettable," he told reporters.

The Hindu newspaper said it was "a disgrace when a man of religion stoops so low".

"Asharam deserves to be condemned in the strongest words," the daily added in an editorial.

The editorial also criticised politicians from the ruling Congress party as well as the BJP for their sexist commentary on the Delhi rape and the need for Indian women to stay home and make traditional choices.

"Their notions of... an ideal society appear rooted in the very prejudices that have engendered a culture of violence against women, the Delhi incident being its most recent and horrific manifestation," the newspaper said.

Abhijit Mukherjee, the son of India's president who is a Congress lawmaker, landed himself in hot water last month after comparing women who took part in protests over the gang-rape to patched up second-hand cars.

Five men have been charged with rape and murder in the December 16 attack on the young student. A sixth accused, who is 17, is to be tried in a separate court for juveniles.

-AFP/fl

Read More..

Cyanide poisoning kills lottery winner

Urooj Khan, 46, won $1 million before taxes on an Illinois lottery scratch ticket in June.

STORY HIGHLIGHTS

• Urooj Khan, 46, won $1 million before taxes on an Illinois lottery scratch ticket


• He died suddenly weeks later; authorities first ruled his death "natural"


• Revisiting the case, they found he died of "cyanide toxicity," a medical examiner says


• Chicago police are investigating, but haven't made any arrests

(CNN) -- One day, Urooj Khan literally jumped for joy after scoring a $1 million winner on an Illinois lottery scratch ticket.

The next month, he was dead.

The Cook County medical examiner's office initially ruled Khan's manner of death natural. But after being prompted by a relative, the office revisited the case and eventually determined there was a lethal amount of cyanide in Khan's system.

"That ... led us to issue an amended death certificate that (established) cyanide toxicity as the cause of death, and the manner of death as homicide," Chief Medical Examiner Dr. Steve Cina said Monday.

Why did Khan, an Indian immigrant who was described as a well-liked, hardworking and successful businessman, die? And who is responsible?

Finding that out is now up to the Chicago police. No arrests have been made.

"We are investigating it as a murder, and we're working closely with the medical examiner's office," Chicago police spokeswoman Melissa Stratton said Monday.

On June 26, Khan was all smiles at a 7-Eleven in the Rogers Park section of Chicago. Surrounded by his wife, daughter and friends, he held an oversized $1 million check and recalled his joy upon playing the "$3 million Cash Jackpot!" game, where tickets sell for $30 apiece.

"I scratched the ticket, then I kept saying, 'I hit a million!' over and over again," the 46-year-old Khan said, according to a press release from the Illinois Lottery.

"I jumped two feet in the air, then ran back into the store and tipped the clerk $100."

The plan, he explained, was to use the money for his mortgage, paying off bills, a donation to St. Jude Children's Research Hospital and investing more in his dry cleaning businesses.

"Winning the lottery means everything to me," Khan said.

He would have to wait a few weeks to collect his actual winnings, which amounted after taxes to about $425,000. According to CNN affiliate WGN, that check was issued July 19, but Khan never got to spend it.

The next night, Khan came home, ate dinner and went to bed, according to an internal police department document obtained by the Chicago Tribune. His family later heard him screaming and took him to a local hospital, where he was later pronounced dead, the paper reported, citing the document.

That's where the Cook County medical examiner's office came in, investigating Khan's death because it was "sudden and unexpected," Cina said.

At the time, there were no allegations of foul play or evidence of trauma. So, following the office's policy, Khan's body underwent what Cina described as an "external examination (and) basic toxicology testing," neither of which turned up anything abnormal.

So the medical examiner ruled Khan had died of arterial sclerotic cardiovascular disease -- which encompasses incidents like heart attacks, strokes and aortic ruptures -- and that his manner of death was natural, according to Cina.

A few days later, a family member approached the doctor who had examined the body "and said they felt uncomfortable that it was being ruled a natural and they suggested that we look into it further," the chief medical examiner said.

"So we did that," he added. "Forensics is not a static field. If new evidence comes to light, we'll revisit cases."

That meant more in-depth toxicology tests. In early September, new screening results came back indicating cyanide in Khan's blood. With that, the official manner of death was changed from natural to pending, Cina said, and Chicago police got involved.

In late November, a more detailed blood analysis came back showing "a lethal level of cyanide" and Khan's death became a murder case.

Chicago police haven't offered details, including a possible motive, about what they call an "ongoing investigation." Talking briefly with CNN affiliate WBBM and the Tribune, Khan's widow described her husband as kind and exemplary.

Jimmy Goreel, who runs the 7-Eleven where the winning lottery ticket was sold, offered similarly glowing comments about Khan.

"I would never think that anybody ... would hurt him," Goreel told WGN. "(He was a) nice person, very hopeful and gentle (and) very hardworking."

Read More..

Pakistan: U.S. drones kill 8 suspected militants

Updated 1:10 a.m. EST

DERA ISMAIL KHAN, Pakistan Several missiles fired from American drones slammed into a compound near the Afghan border in Pakistan early Tuesday, killing eight suspected militants, Pakistan officials said.

The two intelligence officials said the compound was located near the town of Mir Ali, in the North Waziristan tribal area.

One of the officials said an al Qaeda operative was believed to have been killed in the strike.

They spoke on condition of anonymity because they were not authorized to speak to the media.

North Waziristan, the area where the strike occurred, is considered a stronghold for insurgent groups operating in both Afghanistan and Pakistan. It is one of the few parts of the tribal areas that border Afghanistan in which the Pakistani military has not conducted a military operation to root out militants, despite repeated pushes to do so from the American government.

Tuesday's strike was the fourth since the new year began.

On Sunday, nine Pakistani Taliban fighters were killed when American missiles fired from several drones flying overhead slammed into three militant hideouts in another tribal area, South Waziristan.

The militant in charge of training suicide bombers for the Pakistani Taliban was believed by Pakistan intelligence officials to have died in Sunday's strike.

On Jan. 2, a drone strike killed a top Pakistani militant commander, Maulvi Nazir. He was accused of carrying out deadly attacks against American and other targets across the border in Afghanistan. But unlike most members of the Taliban in Pakistan, he negotiated a truce with the Pakistani military in 2009 and did not attack Pakistani troops or domestic targets.

The covert U.S. drone program is extremely controversial in Pakistan, where many in the country look at it as an infringement on their sovereignty. Many Pakistanis complain that innocent civilians have also been killed, something the U.S. rejects.

Islamabad officially opposes the use of U.S. drones on its territory, but is believed to have tacitly approved some strikes in past.

Read More..

Meet Obama's Defense Secretary Nominee

President Obama nominated former Senator Chuck Hagel as the next U.S. secretary of defense. To those who haven't followed the Senate closely in the past decade, he's probably not a household name.

Hagel is a former GOP senator from Nebraska and Purple-Heart-decorated Vietnam veteran, but he wouldn't necessarily be a popular pick with Republicans in Congress.

At age 21, Hagel and his brother Tom became the next in the family to serve in the United States Army. They joined the masses of Americans fighting an unfamiliar enemy in Vietnam.

In his book, he describes finding himself "pinned down by Viet Cong rifle fire, badly burned, with my wounded brother in my arms."

"Mr. President, I'm grateful for this opportunity to serve our country again," Hagel said after Obama announced his nomination Monday.

In 1971, Hagel took his first job in politics as chief of staff to Congressman John Y. McCollister, a position he held for six years. After that, he moved to Washington for the first time, where he went on to work for a tire company's government affairs office, the 1982 World's Fair and in 1981, as Ronald Reagan's Deputy Administrator of the Veterans Administration.

Obama Taps Sen. Chuck Hagel for Defense Secretary Watch Video

Sen. Chuck Hagel's Defense Nomination Draws Criticism Watch Video

Obama's Defense Nominee Chuck Hagel Stirs Washington Lawmakers Watch Video

He worked in the private sector for most of the 80s and 90s before his first election to the Senate in 1997.
Since the turn of the century, Hagel has followed a curvy path of political alliances that puts his endorsements all over the map. Hagel's record of picking politically unpopular positions could be a large part of why Obama is naming him for the job, as Slate's Fred Kaplan surmises the next Defense secretary will be faced with tough choices.

In 2000, he was one of few Republican senators to back Sen. John McCain over then-presidential-candidate George W. Bush.

After that election, Hagel fiercely criticized Bush for adding 30,000 surge troops to Iraq, in place of the bipartisan Iraq Study Group's proposal of a draw-down and regional diplomacy, which Hagel preferred. When Bush instead announced that more troops would go to Iraq, Hagel co-sponsored a nonbinding resolution to oppose it, along with then-Sen. Joe Biden, D-Del.

"The president says, 'I don't care.' He's not accountable anymore," Hagel told Esquire in June 2007. "He's not accountable anymore, which isn't totally true. You can impeach him, and before this is over, you might see calls for his impeachment. I don't know. It depends how this goes."

Hagel's fierce opposition to America's involvement in Iraq – he called it one of the five monumental blunders of history, on par with the Trojan War – will be of substantial importance as the Obama administration charts our course out of Afghanistan, deciding how to withdraw the last of the troops in 2014 and how much of a presence to leave behind.

Hagel's support for McCain, which was substantial in his competition against Bush, disappeared in the 2008 election. Hagel toured Iraq and Afghanistan with Obama during his first campaign for the presidency.

In October 2008, Hagel's wife, Lillibet, announced her support for the Obama team, after the Washington Post reported on her donations to his campaign. She donated again in 2012.

Before the 2008 election, Hagel wrote: "The next president of the United States will face one of the most difficult national security decisions of modern times: what to do about an Iran that may be at the threshold of acquiring nuclear weapons."

Read More..