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Eurozone approves new $173B bailout for Greece

Eurozone finance ministers sealed a deal Tuesday morning for a second bailout for Greece, including €130 billion ($173 billion) in new financing. The finance ministers from the 17 nations that use the euro, known as the Eurogroup, gave Greece funding it needs to avoid a potential default next month. While this new deal provides some short-term relief for Greece, difficult days lie ahead as the government tries to trim debt to 121% of the country's gross domestic product by 2020. Greece's debt now stands at about 160% of GDP. The announcement came at an early morning press conference in Brussels after a marathon meeting of more than 13 hours. "It's clear that the Greek economy cannot (continue to be) financed by cheap debt, but needs to lean on new investment both Greek and foreign," said Olli Rehn, vice president of the European Commission. "This should give Greece enough space to improve its competitiveness," added Christine Legarde, managing director of the International Monetary Fund, adding that the goal of the terms of the new bailout is to create growth for the Greek economy. "There are downside risks, that is clear." Greece is in its fifth year of recession, and the government reported last week that Greece's GDP, the broadest measure of a nation's economic output, fell 6.8% last year. That's much worse than the 6% contraction the government originally predicted. Fourth-quarter GDP also continued to decline, shrinking 7%, compared with a 5% decrease in the third quarter. An austerity pact was approved by the Greek parliament on February 12, leading to some of the worst riots in the country in recent years. The package, which included deep cuts in government spending, wages and pensions, helped pave the way for eurozone finance ministers to sign off on Tuesday's new bailout deal. "This certainly removes some near-term risk," said Frederick Neumann, senior economist for HSBC in Hong Kong. "I think it's clear that questions will emerge whether Greece can stomach these cuts." Greece has also hammered out a plan to write down €100 billion euros worth of Greek government bonds and swap existing debt for securities with lower interest rates, a deal that would result in losses of 53.5% for the private sector. "There are details to be worked out big work is done now, I think that will provide relief to financial markets," Neumann said. "But it's difficult to see this turning around the Greek economy coming anytime soon." While Greek economy is small compared to other eurozone countries -- "about the size of Connecticut compared to the rest of the United States," Neumann said -- the real threat is keeping the debt crisis and borrowing costs from spiraling to larger economies in the eurozone. A default by Greece could spark "a Lehman-like event," referring to the collapse of the investment bank that catalyzed the 2008 financial crisis. "I think we understand these issues much better than we did three years ago," Neumann said. "Kicking these issues down the road has been useful to some extent" because a default would be less likely to take the markets by surprise, he added. "The next hurdle is to create a firewall to put up sufficient money to know that Ireland and Portugal won't be next," Neumann said. "This today is really short-term relief, but we'll probably be looking at these issues (at) some point." There has been some speculation that Greece might exit the eurozone, but Eurogroup president Jean-Claude Juncker stressed ahead of Monday's meeting that Greece should remain a member of the euro currency union. "It is the intention of nobody to have Greece outside of the eurozone," he said. "That would be a bad solution for Greece and ... a bad solution for the euro area."

Published: Tue, 21 Feb 2012 04:54:48 GMT

Poll: Santorum lead expands nationwide

Rick Santorum's nationwide lead expanded Monday in Gallup's daily tracking poll, which showed the former Pennsylvania senator leading rival Mitt Romney by ten percentage points. Santorum had the backing of 36% of registered Republicans nationwide, while 26% supported Romney. Numbers from Sunday showed a slightly smaller lead for Santorum over Romney, 36% to 28%. Romney has been sinking in Gallup's daily tracking poll since last week, when the survey showed him statistically tied with Santorum, 33% to 31%. Since then, Romney has dropped seven percentage points, while Santorum has risen five points. Both candidates are currently engaged in bitterly negative campaigning in the next battleground states, Arizona and Michigan, hoping to nab wins in states with large delegate counts. Polls in both states show increasingly tight races between Romney and Santorum. The two other candidates in the running, former House Speaker Newt Gingrich and Texas Rep. Ron Paul, both polled well below the two frontrunners in Monday's Gallup tracking poll. Gingrich had the support of 13% of Republicans while 11% backed Paul. Those numbers were unchanged from Sunday. For the ongoing poll, Gallup surveys more than 1,000 registered Republican voters on a daily basis, and the poll drops the oldest of five days each day and adds results from the most recent day of polling. In the latest survey, Gallup questioned 1,194 Republicans and Republican-leaning independents by telephone February 15-19, with a sampling error of plus or minus three percentage points.

Published: Tue, 21 Feb 2012 03:27:12 GMT

The other foreclosure settlement: Millions eligible

Millions of borrowers who suffered financial losses because their mortgage lenders played fast and loose while processing their foreclosures now have two ways of getting a payback. They can tap the $26 billion settlement between the state attorneys general and the nation's five biggest banks that was inked two weeks ago. But there is also an earlier settlement that has been nearly forgotten -- and that could lead to an even bigger payoff, in some cases. As part of an enforcement action by federal authorities last April, 14 mortgage servicers, including Bank of America, Chase, Citibank, HSBC, MetLife Bank, PNC Mortgage and Wells Fargo, agreed to hire independent consultants to investigate foreclosure abuses and compensate those who suffered financial harm. As a result of the program, up to 4.3 million mortgage borrowers who were foreclosed on in 2009 and 2010 will have a chance to request an independent review of how their foreclosure was handled. So far, only 90,000 eligible homeowners have submitted claims, prompting the feds to extend the deadline for applications by three months to July 31. The exact amount of money borrowers will receive has yet to be determined. But if a review finds that "financial injury" occurred -- say a bank charged inappropriate fees or it went forward with a foreclosure without a valid claim to the property -- a homeowner could be repaid in full for joslosses. Borrowers who were improperly charged even just a single fee could be repaid for it, according to Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency, one of the federal regulatory agencies that negotiated the agreement. And borrowers who suffered much larger losses could be in line for much bigger repayments than promised by the AG's settlement, which will pay up to $2,000 to the estimated 750,000 who lost their homes to foreclosure between 2008 and 2011. The compensation could even repay the cost of regaining a wrongfully lost home if warranted by the facts of the case, according to Hubbard. The Independent Foreclosure Review was sparked by the robo-signing scandal that exposed the bank's treatment of borrowers in the foreclosure process. The lenders lost documents and recreated them, had low-level employees with no knowledge of what they were attesting to sign legal papers and bent the rules requiring them to halt foreclosures if borrowers sought mortgage modifications. Unlike the $26 billion settlement with the state attorneys general, borrowers didn't have to lose their homes in order to receive compensation, according to Hubbard. "It could be anyone who suffered financial loss because of errors made in the foreclosure process," he said. Since the settlements are completely independent of one another, claimants can double-dip, filing for compensation under both settlements. (To seek compensation under the state attorneys general settlement, contact your lender or servicer and ask them to review your case). To make a claim for the Independent Foreclosure Review, borrowers have to fill out a five-page form that identifies some examples of situations that may have led to financial injury. Borrowers do not have to provide documentation. That will be handled by an independent agency. No reviews have been completed yet, according to Hubbard. And individual cases may take months to come to decision. For more information on the forms, go to the website set up by the servicers. And for a full list of the mortgage services involved in the Independent Foreclosure Review, go to the Federal Reserve website

Published: Tue, 21 Feb 2012 03:26:13 GMT

Some Republicans whisper about a plan B

In a whispering campaign not ready to go public, some senior Republicans are so anxious about the state of the GOP race they are actually considering the unheard of: a scenario that would lead to another candidate entering the Republican primary race, and potentially an open convention. They are not unhappy enough, however, to go on the record calling for another candidate to enter the fray. In fact, when pressed, many Republicans say the chatter about another candidate is inevitable in this long and inconclusive primary process. They also say it's just not likely to happen. Why? "If you bring somebody new into the race, that person will lose," said a senior GOP strategist who admits a bias towards Romney. "The party -- especially conservatives -- will not respond to somebody who has not gone through the process.' That being said, it's clear Rick Santorum's recent rise in the polls -- and what some see as his electability problems -- have struck a nerve with Republicans. "There is something called agenda control," said one unaffiliated GOP strategist. "Santorum does not have it. Instead of talking about the economy, he's been going down rabbit holes for the last four or five days." Santorum's emphasis on cultural issues may intensify his conservative and evangelical support and help him win the nomination or at least differentiate himself from Newt Gingrich. The fear is he may also be narrowing his support in a general election population. And Santorum's surging candidacy is not the only concern for senior Republicans. Mitt Romney's inability to close the deal has also raised eyebrows -- and angst. And the anxiety will only intensify should Romney lose his home state of Michigan in the primary on Feb. 28, several senior Republicans told CNN. "Michigan is the whole shooting match," said one senior GOP strategist not aligned with a campaign. Said another: "If Romney loses Michigan, all hell breaks loose." Given that real possibility, one knowledgeable GOP source confirms that some Republicans are circulating the deadlines and the basic math that would allow another candidate to get into the nomination fight and take it all the way to the convention. More than a half dozen states' filing deadlines have yet to pass. A majority of the delegates to the national convention are still up for grabs. One more factor to be considered: many states are choosing their delegates proportionally, which makes it easier for a candidate pick up delegates without outright winning a state. Politico first reported the existence of a document circulating among Republicans. Santorum's highlighting of cultural issues could play well for him in the short-term. But the worry among Republicans is that his views will raise the question of his electability. "After a while, Republican voters will start asking whether this is the guy to take on Obama," says one GOP strategist. In addition to the fear of a potential loss to Obama, some Republicans worry about losing the House of Representatives if Santorum were at the top of the ticket. "Santorum would so alienate voters, especially women...he would be lucky to carry a dozen states," one senior Republican told CNN, referring to Santorum's disapproval of pre-natal screening. Santorum's campaign disagrees. It considers him a strong social conservative who is the best equipped to take on President Obama on the economic issues -- -particularly in the rustbelt states. "He won in Pennsylvania, which has both democrats and women the last time I checked," says a senior Santorum adviser, who calls his boss a "full spectrum conservative." One of the Republicans who has seen the memo said "no one is hoping that this will come to play," regarding a new candidate entering the fray. Yet some Republican partisans feel they need to make some contingency plans depending on the outcome in coming primaries. Other veteran Republicans contacted by CNN dismissed any possibility of another candidate entering the contest at this date. There are no names of possible candidates mentioned in the memo. Who would the Republicans possibly turn to? The usual suspects include Sarah Palin, Indiana Gov. Mitch Daniels, New Jersey Gov. Chris Christie or Former Florida Gov. Jeb Bush. They could still enter the race although they all have repeatedly said they will not mount a campaign despite new inquiries by some in the party. "I really would not be interested," Daniels told CNN affiliate WISH Monday. "If we get to that point, I would be interested in finding someone who can present a really credible and winning alternative to where the nation is going right now. I still think it's very unlikely. These things have a way of resolving themselves."

Published: Tue, 21 Feb 2012 03:25:36 GMT

Vehicle smashes into Maryland restaurant

A customer inside a Kentucky Fried Chicken restaurant in Landover, Maryland, was killed Monday night after a vehicle left the road and drove through the large glass windows of the business, a fire official told CNN. The accident happened about 6:30 p.m, said Mark E. Brady, chief spokesman of the Prince George's County Fire Department. Four other people were injured in the accident, but not seriously, Brady said. It was not immediately clear what happened to the driver of the vehicle, or where the four injured people had been at the time of the accident. Video of the scene from CNN affiliate WJLA showed the mangled remains of a black vehicle flipped onto its side, while firefighters and medics surveyed the scene. Crime-scene tape was wrapped across a corner of the building. Witnesses told WJLA a BMW was seen driving at speeds the witnesses estimated to be close to 100 mph before the vehicle lost control, hit a curb, and went airborne into the KFC.

Published: Tue, 21 Feb 2012 03:14:35 GMT

Police charge man in machete robbery of Supreme Court Justice Breyer

Police on the Caribbean island of Nevis said Monday a local man has been arrested and charged in the recent armed robbery of vacationing Supreme Court Justice Stephen Breyer. The suspect, 28-year-old Vedel Browne, turned himself in Sunday after officials declared him "a person of interest," and released his photo to the media, according to Sgt. Cledwyn Jeffers of the Royal St. Christopher and Nevis Police Force. Browne was formally charged with robbery Monday afternoon, said Sgt. Stephen Hector of the police force. Hector said the offense is a felony and carries a maximum sentence of 20 years upon conviction. Breyer, his wife, her sister, and another guest were in the justice's vacation home February 9 when an intruder armed with a machete broke in and robbed the occupants of about $1,000. Officials said no one was hurt in the incident. The male assailant fled the scene, according to court spokeswoman Kathy Arberg. The robbery was reported to local authorities shortly after it happened. Breyer and his family have since returned home. The justice attended a dinner last week in Washington with Vice President Joe Biden and the visiting Chinese vice president. Police officials in a news release said Browne has worked as a gardener, and Jeffers described him as a "Rastafarian." Law enforcement learned of his identity from informants, but it is unclear why Browne was suspected for investigation. A local law enforcement official had said the evidence indicated the incident was "a crime of opportunity," and that police have seen nothing so far to indicate Breyer was targeted for robbery. There was no immediate reaction to the arrest from Breyer's office or U.S. federal law enforcement. The U.S. Marshals Service provides protection for members of the high court when they are traveling domestically, and agency spokesman Jeff Carter said last week the agency was "aware of the incident involving Justice Breyer on the Caribbean island of Nevis and is assisting the Supreme Court Police and local law enforcement authorities with the investigation as needed." He did not elaborate. FBI spokesman Paul Bresson said after the robbery, "We are assisting the local police with their investigation." Commissioner C.G. Walwyn of the Royal St. Christopher and Nevis Police Force had said, "Our American-trained crime scene investigators and the members of our Criminal Investigators (unit) are working closely with the FBI on this case." Breyer has had no comment on the matter. The high court resumes public sessions Tuesday, after a month-long recess. Nevis is part of the West Indies chain known as the Leeward Islands, located about 350 miles southeast of Puerto Rico. The court does not talk publicly about specific security arrangements for the justices, either when they are at home or on their frequent travels. During the court's break, Justice Ruth Bader Ginsburg traveled to Egypt and Tunisia last month as part of an outreach program sponsored by the State Department, which provided her security in the volatile region. Justice Sonia Sotomayor traveled to Guam and Hawaii, and Justice Antonin Scalia gave a speech in Chicago. Attacks on members of the federal judiciary are rare, but not new. Then-Justice David Souter was assaulted by a group of young males in 2004 while jogging alone in the evening near his Washington home. Souter suffered some minor bruises and was briefly treated then released from a local hospital. Justice Byron White was attacked in July 1982 while giving a speech in Utah. That incident led to regular protection by U.S. marshals for members of the court when they travel. The 73-year-old Breyer was nominated to the high court in 1994, and is known as one of the most active and engaging members of the court. His wife is Dr. Joanna Breyer, a renowned pediatric psychologist.

Published: Tue, 21 Feb 2012 02:28:24 GMT

Santorum denies Hitler-Obama comparison

Rick Santorum on Monday denied he was comparing President Barack Obama to Adolf Hitler while using a World War II analogy the previous day. During a speech at a Georgia church on Sunday, Santorum paralleled the election to America's slow response to the swelling Nazi presence during the late 1930s. He urged his audience to get involved and not sit on the sidelines like "the greatest generation" did for a year and a half while "Europe was under darkness." The former Pennsylvania senator described Americans as a "hopeful people," easily susceptible to ignoring a growing problem. "We think, well, you know, it'll get better. Yeah, he's a nice guy. I mean, it won't be near as bad as what we think. This will be okay. I mean, yeah, maybe he's not the best guy after a while. After a while you find out some things about this guy over in Europe who's not so good of a guy after all, but ya know what, why do we need to be involved? We'll just take care of our own problems," he said. Asked Monday if he was likening the president to Hitler, he responded, "No, of course not." He added: "It's a War World II metaphor. It's one I've used a hundred times." His comments came after an Ohio speech, in which he continued to sharpen his attacks against Obama over what he sees as the president's growing affront against religious liberties. The former senator said the Obama administration no longer subscribes to principles of religious freedom, but instead uses the term "freedom to worship." The difference? Santorum said Obama and his cabinet members are "narrowing the view" of the First Amendment. "So now you have the freedom to go into that church and do whatever you want, but once you walk out, you're ours," Santorum said, describing what he sees as the administration's perspective. "You will do what we tell you, not what they tell you." The candidate has been hammering Obama in recent days while he rides the momentum of his newly-minted frontrunner status, catapulting slam after slam at the president for abusing standards surrounding the separation of church and state. Along with the recent contraception coverage controversy, Santorum points to a U.S. Supreme Court decision, known as Hosanna Tabor, in which the court held that ministers cannot sue their churches for employment discrimination. Santorum called the January ruling a victory against the Obama administration, whose solicitor general filed a briefing supporting the right to sue churches over discriminatory policies that fall in line with their institution's religious teachings. Labeling the unanimous Supreme Court decision a "smack down" against the president, Santorum argued the case was just one example of Obama's outlook on government. "He has this ideology of government-centralized control," he said. "Not worried about the interest of people, he's worried about the interest of power, so he can dictate to people what he believes is best." Painting the president as a dictatorial leader has been a mounting theme in Santorum's stump speeches, especially when it comes to the president's social agenda. "It is saying government knows better. It is imposing his ideology on a group of people expressing their theology -- their moral code -- and saying government will force you to do what your faith says is gravely wrong," Santorum said. The candidate also made headlines on Saturday when he said Obama had a "phony theology," leaving some to speculate whether Santorum was questioning the president's Christian faith. But the former senator on Sunday morning said he was referring to the president's position on what he called "radical" environmentalism and did not mean to imply religious tones when he used the word "theology."

Published: Tue, 21 Feb 2012 01:51:15 GMT

Apple settles class-action suit over iPhone 4

Nearly two years after tech blogs screamed "Antennagate!" over problems with the iPhone 4's reception, owners will be getting a little pocket change for their troubles. Apple over the weekend settled a class-action lawsuit filed about the issue, promising to pay $15 or give a free case to everyone in the United States who bought one of the wildly popular phones. Released in June 2010, the slimmer reworking of Apple's smartphone became a huge seller. But soon after it went on sale, some owners began complaining that their phone frequently dropped voice calls. The culprit, it was ultimately determined, was the antenna, which is wrapped in a band around the phone's edge to help create its slim form. Using what became known as the "death grip," (i.e. holding the phone at a certain spot) caused reception to suffer or cut out entirely. "This settlement relates to a small number of customers who indicated that they experienced antenna or reception issues with their iPhone 4, and didn't want to take advantage of a free case from Apple when it was being offered in 2010," Apple told CNET in a written statement. However, Ira Rothken, a lead attorney in the case, said more than 21 million iPhone 4 owners were eligible for the payout. The free case offer lasted for three months. Apple had initially ignored the complaints, then dismissed them, then called a rare press conference at which then-CEO Steve Jobs announced the offer, while claiming the problem was just as bad on other companies' phones. A bumper or other protective case on the phone eliminates, or at least greatly reduces, the problem. Apple's new iPhone 4S, released in October, has not shown a similar problem. "We believe that the Apple iPhone 4 settlement is fair, adequate, and reasonable," Rothken told CNET. "We believe that it allows members of the class to choose, and they can get $15 of cash or a bumper, so we believe that type of choice is proportional to the circumstances." Apple did not immediately respond to a request for comment. Multiple lawsuits had been merged into one in the case. Plaintiffs claimed that Apple had been misleading in its communication with customers about the problem. Rothken first noted "preliminary approval" of the settlement late Friday on Twitter. Under the settlement, eligible customers should get an e-mail from Apple some time in April. They'll then have 120 days to apply for the $15. A website, iPhone4Settlement.com, has been set up but had not yet been activated as of Monday morning.

Published: Tue, 21 Feb 2012 00:20:27 GMT

Red Cross: Syrian cease-fire needed to deliver aid

The International Committee of the Red Cross is trying to negotiate a cease-fire between Syrian authorities and the opposition so the humanitarian agency can deliver food and medical supplies to the besieged city of Homs and other locations, a spokesman said Monday. Negotiations are "happening now," said Bijan Farnoudi, a spokesman for the ICRC in Geneva, Switzerland. "We have been in Syria for a while now, based in Damascus, so we want to reach some of the hardest-hit areas," he said. "We have been to some places like Homs and so on from time to time, but it is very crucial to have a cessation of fire to provide humanitarian services." Meanwhile, President Barack Obama's top military adviser said it is premature to aid in arming the Syrian opposition, reinforcing the belief of a rebel commander that the uprising is an "orphan revolution" without the international support prevalent in other Arab Spring revolts. The claim follows opposition reports Monday that Syrian forces began a 17th day of shelling of opposition strongholds in Homs. The opposition Local Coordination Committees of Syria said at least 18 people had been killed across the country Monday, including 13 in Homs -- among them a whole family made up of three women and a young man. The group also said security forces fired tear gas at demonstrators around the university in the city of Aleppo. The opposition network estimates almost 9,000 people have been killed since the start of the uprising. Elsewhere in the country, hundreds of protesters marched through the heart of Damascus on Monday, just steps from security buildings in a bold show of strength, the LCC said. Thirty people were detained in the central Damascus neighborhood of Kafarsouseh, it said. Demonstrators in the capital blocked a main road with burning ties, said Ahmed, a protester, who characterized the action as "a big thing." "This is part of our resentment against the regime," he said. In Hama, government forces stormed various neighborhoods and erected checkpoints, according to the Syrian Observatory for Human Rights, another opposition group. Snipers took up positions inside a building under construction to monitor movements in the neighborhood of Hamidiya, it said. Meanwhile, state media reported two soldiers were killed and one was wounded in a clash with "armed terrorists" near Hama. Funeral services were held Monday for 12 security workers killed throughout the country, the state-run Syrian Arab News Agency said. CNN cannot independently verify opposition or government reports of casualties. Diplomatic efforts have all but failed to end the brutal crackdown, with two powerful nations -- China and Russia -- vetoing a U.N. Security Council resolution calling on President Bashar al-Assad's to relinquish power, and the Arab League suspending an observer mission amid escalating violence. Representatives from various countries are expected to meet in Tunisia this week to discuss the conflict. "The goal of this conference is to increase pressure on the Syrian regime. There are indications coming especially from China, and to some extent from Russia that there may be a change in position," Arab League Secretary General Nabil Elaraby told reporters Monday. In one rural village in the north, farmers, carpenters and university students are among the face of the opposition, according to CNN's Ivan Watson, one of the few reporters in Syria, whose government has placed strict restrictions on international journalists and refused many of them entry. Watson said the men of village of Binnish describe themselves as members of the rebel Free Syria Army, "but it would be much more accurate to call them an impromptu village guard. Many of them are defending the olive groves that surround their community, with little more than hunting shotguns." The rebel commander in Binnish -- who defected from the Syrian army six months ago -- said the men don't have enough guns or ammunition. He called the Syrian uprising an "orphan revolution" because unlike the revolt in Libya, the Syrian rebels have not received foreign support. Like many members of the opposition, the commander covered his face during the interview to hide his identity out of fear of reprisals by Syrian forces. There has been a growing call among some in the international community to arm the opposition, best described as a network of faceless activist and opposition groups that include a loosely organized rebel army and militias. But not everyone, including the United States, is in agreement. "I think it's premature to make a decision to arm the opposition movement in Syria, because I would challenge anyone to clearly identify for me the opposition movement in Syria at this point," Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, said Sunday on CNN's "Fareed Zakaria GPS." Dempsey, an Army general who served two tours of duty in Iraq, warned that Syria is "an arena right now for all of the various interests to play out." Those interests include neighbors such as NATO ally Turkey; the region's Sunni and Shiite Muslim powers, Saudi Arabia and Iran, which is Syria's leading ally; and al Qaeda, the terrorist network that has shown signs of interest in the conflict, he said. "There's a number of players, all of whom are trying to reinforce their particular side of this issue. And until we're a lot clearer about, you know, who they are and what they are, I think it would be premature to talk about arming them," Dempsey said. Sen. John McCain of Arizona said Monday he believes "there should be no option left off the table." "The massacre goes on," McCain said. "There's risk of stalemate. ... There's lots of ways of getting weapons and assistance to the resistance there besides U.S. direct shipment of arms. There's a contact group that the U.S. is joining with in Tunisia this Friday. And I believe they need medical, technical, all kinds of assistance, and every option should be on the table, including a way to get weapons to them." He noted the United States previously intervened in Bosnia-Herzegovina and in Kosovo because "massacres were taking place." Sen. Lindsey Graham of South Carolina, who is with McCain in Cairo, said Monday he believes it's in Americans' best interest to break Syria away from Iran. "I do believe that al Qaeda tries to fill vacuums wherever they exist, but I don't buy the narrative that the Syrian people are risking their lives ... to become a branch of al Qaeda," he said. Graham said he believes "the idea of trying to arm the opposition forces needs to be considered, very much considered, and at the end of the day, what happens in Syria really can change the course of the Mideast." Syria's uprising began in March amid the "Arab Spring" demonstrations, when longtime autocrats fell in Tunisia and Egypt and other nations found themselves battling popular revolts. Syria's government responded by unleashing police and troops on anti-government protesters calling for more political freedoms, a movement that quickly spiraled into the opposition calling for al-Assad's ouster. The president has blamed "terrorists" and foreigners for threatening the stability of Syria. Nearly all other reports from within the country, however, tell a different story. Amateur video and opposition reports released via social media and telephone calls from Homs have documented 17 days of bombardment, with explosions from mortars and tank shells launched by Syrian forces every few minutes, people bleeding to death in the streets for lack of medical attention, and snipers picking off civilians running for cover.

Published: Tue, 21 Feb 2012 00:18:24 GMT

Governor: 30 escaped after Mexican prison riot

Dozens died and 30 inmates escaped during a weekend prison riot in northern Mexico, an official said Monday. The prison's director and 18 guards have been removed from their positions and are under investigation, Nuevo Leon Gov. Rodrigo Medina told reporters. "There is no doubt that without the help of prison officials, it would have been very hard to make this escape. ... For us, it is difficult to confirm that the betrayal, corruption and complicity of a few can hinder the work of good police, soldiers and sailors who risk their lives daily for the security of Nuevo Leon's residents," he said. Authorities are offering a reward of 10 million pesos (about $788,000) for information leading to the escapees' capture, Medina said. Preliminary reports indicate the escapees were members of the Zetas drug cartel, he said. A fierce rivalry between drug cartels likely fueled the fighting that killed 44 people Sunday inside the prison in Apodaca, Nuevo Leon, state security spokesman Jorge Domene told reporters. At least two Zetas leaders, including the suspected head of the cartel in the nearby industrial city of Monterrey, were among the prisoners who escaped, according to Mexican military records. Prisoners could have used the riot to engineer their breakout, Domene said Sunday. He did not say how prisoners inside acquired the clubs, stones and sharp objects they used in the fighting. Earlier Sunday, Domene said inmates had taken a guard hostage as clashes broke out at the prison. Some prisoners also set mattresses ablaze, sending smoke rising above the facility, he said. Federal and state police surrounded the prison as anxious family members awaited information outside its gates. The clashes, which occurred in a part of the prison where most inmates were serving time for federal drug trafficking offenses, might have begun as a fight between the Zetas and Gulf cartels, Domene said. The Zetas started with deserters from the Mexican Army and quickly gained a reputation for ruthless violence as the armed branch of Mexico's Gulf cartel. The partnership ended in 2010, and turf battles between the rival cartels are common in northern Mexico. State officials have asked Mexico's interior ministry to transfer inmates connected with federal offenses out of the prison, which has become significantly overcrowded as authorities crack down on organized crime, Medina said Monday. The Apodaca prison was housing about 3,000 prisoners at the time of Sunday's riot, Domene said Sunday. Last year, 14 inmates were killed and 35 people were injured in a fire in the prison's psychiatric ward. Nearly half of Mexico's 428 penitentiary centers are overcrowded, according to federal police statistics. After more than 350 people died in a fire in a Honduran prison last week, a United Nations official said widespread overcrowding was one factor behind a recent wave of violence in Latin American prisons. "These events reflect an alarming pattern of prison violence in the region, which is a direct consequence of -- or aggravated by -- a range of endemic problems including chronic prison overcrowding, the lack of access to basic services such as adequate floor space, potable water, food, health care and lack of basic sanitary and hygienic standards," Rupert Colville, a spokesman for the high commissioner for human rights, said in a statement. In Mexico, prison expert Jose Luis Musi said conditions remain ripe for more violence. "There are many factors," he said. "There is overpopulation, there is complicity and there is a lack of security."

Published: Mon, 20 Feb 2012 23:16:05 GMT

FedEx deliveryman predicted Jeremy Lin's fame

Far from the glamour of Madison Square Garden, aboard a FedEx delivery truck in this small Oregon town, sits the one man who saw Jeremy Lin coming. "I've always had a mind for numbers, the statistical side of sports," Ed Weiland explained. He spends his days as a driver for FedEx, but once he punches out, he goes to work at his true passion: finding the best college basketball players in the country. He publishes his assessments on the sports blog hoopsanalyst.com. In 2010, he chose Harvard senior Lin as his top point guard prospect, when no one else was paying much attention to the Ivy Leaguer. Weiland never even saw Lin play, basing his assessment solely on stats. He breaks out every possible statistic when analyzing a player. He keeps all the information in an elaborate spreadsheet on an old Toshiba laptop in his modest apartment. Weiland said Lin caught his eye because of his high two-point field goal percentage and his ability to rebound, steal and block. "If you can do that at a high level in college, it probably means you are a dominant player," he said. "How often your team wins depends on putting it in [the basket] the most efficiently, and that's what the two-point percentage is a measure of." Weiland found it intriguing that no one else seemed to be paying attention to Lin. "I look for underdogs, but the player has to be good. I won't specifically say I'm going to find myself an underdog, because Jeremy Lins don't happen every year," Weiland explained. "But when they do, you want to be ready to say, 'This is a guy we should look at.' " Outside of the online world of "stat heads," as amateur analysts call themselves, no one paid much attention to Weiland's 2010 assessment. Lin wasn't even picked in the NBA draft. He played briefly for the Golden State Warriors and Houston Rockets, but he was cut from both teams without making much of an impact before being picked up by the New York Knicks in late 2011. As Lin bounced around the league, Weiland monitored his progress. "I kind of kept an eye on him. That's what I do with players like that," he said. Then one morning in early February, he went online to check some NBA scores and he saw a headline that read "Linsanity." He knew his prospect was taking off. A victory over Kobe Bryant and the LA Lakers kicked Linsanity into high gear. "After the Lakers game, the original article I wrote went viral," he said. Articles in The Wall Street Journal and The New York Times have fueled interest in Weiland. His phone hasn't stopped ringing with reporters from across the country. FedEx is giving him time off to handle news requests. "When I led the 2010 preview off with Jeremy Lin, the idea was that if and when he broke out, there might be some notoriety there," he said. "I obviously never expected anything like this for him or for me." It's all a bit much for a 51-year-old vegan who tries to live a simple small-town life. "I'm having fun with it. I'm trying to be careful to be the same guy I've always been, because I did like that guy, and I want to continue to be that guy," he said. Weiland sees himself as an underdog in the world of sports analysis, just like Lin is an underdog in the NBA. He has never been in contact with Lin but would like to meet him one day. Until then, he has a message for the young basketball star as he makes his way through the "Linsanity" that surrounds him: "Just keep playing the way you've been playing."

Published: Mon, 20 Feb 2012 22:51:36 GMT

Ex-ESPN writer says slur was 'honest mistake'

Former ESPN writer Anthony Federico apologized Monday for writing an offensive headline about basketball sensation Jeremy Lin, calling it "an honest mistake." The controversial headline read "Chink in the Armor: Jeremy Lin's 9 Turnovers Cost Knicks in Streak-stopping Loss to Hornets." The phrase -- Chink in the Armor -- contains a word that has two meanings; one is an ethnic slur. "I'd love to tell Jeremy what happened and explain that this was an honest mistake," Federico told the New York Daily News in an interview published Monday. ESPN fired Federico and suspended Max Bretos, an anchor who used the same phrase, the sports network said Sunday. Federico told the paper, "ESPN did what they had to do." The ESPN headline Saturday morning was up for 35 minutes before being removed, but the damage was done. ESPN apologized Saturday stating, "We again apologize, especially to Mr. Lin. His accomplishments are a source of great pride to the Asian-American community, including the Asian-American employees at ESPN." Federico offered a similar apology in the interview with the Daily News. "I'm so sorry that I offended people. I'm so sorry if I offended Jeremy," he said. Lin, 23, came off the bench earlier this month to guide the New York Knicks to win after improbable win. The unlikely star of Taiwanese descent quickly turned into a global brand and "Linsanity" became the phrase of the times. Lin addressed the controversy during a news conference Sunday following the Knicks' 104-97 win over the Dallas Mavericks, the defending national champions. He said he did not think the headline was intentional. "I don't think it was on purpose," Lin said. "At the same time, they've apologized. I don't care anymore." In reflecting on his time at ESPN, Federico told the New York Daily News, "I had a career that I was proud of."

Published: Mon, 20 Feb 2012 22:50:50 GMT

New French Quarter curfew leads to arrests

New Orleans' infamous French Quarter is awash in memorable sights and sounds, especially during the busiest and most colorful weekend of the year -- the one just before Mardi Gras Day. However, a strict tightening of the city's curfew policy means revelers under the age of 16 must now be accompanied by a guardian if they're going to visit the French Quarter after 8 p.m. Proponents of the new curfew include New Orleans Police Cmdr. Jeffrey Walls, who's quick to cite an ever-present mix of booze, nudity and violence as the reason for the change. "We were having kids that were being victims and perpetrators of crimes," argued Walls, who said prevention is his primary focus in the crackdown. The newly strengthened curfew regulations apply seven days a week, but only in the French Quarter and the nearby Faubourg Marigny neighborhood. Other areas of the city will continue to enforce an 11 p.m. curfew for those under 16, which was already on the books. New Orleans City Council members unanimously passed the curfew change in January. Like many things in New Orleans, the change did not come without controversy. Critics have called the new curfew racist, arguing the new law specifically targets African-American neighborhoods where, they say, the presence of poor, black youth is too often considered a blight on the city's treasured tourism and revenue. Walls, tasked with leading the nightly curfew enforcement in the raucous French Quarter district, maintains it's strictly "a public safety issue." "It keeps the kids safe," Walls said. "This is an adult entertainment area. It's not like Disney World. ... There's really no reason for kids to be out after 8 o'clock unsupervised." French Quarter vendor Henry Stapleton agrees. He runs a popular hot dog stand on legendary Bourbon Street. He has a unique nightly vantage point on some of the world's most famous nightly debauchery. After too often watching 17- and 18-year-olds "chaperoning" 12- and 13-year-olds, Stapleton said a tightening of the curfew is in order. "You've got children watching children. ... That's not a good combo," Stapleton said. A concern often repeated in opposition to the recent curfew change was its unintended impact on young African-American talent, specifically those seen tap-dancing and playing musical instruments for tips throughout the French Quarter's evening hours. Walls contended such an argument is a nonstarter. "We want to keep these kids safe. We don't want them to be victims of crime," Walls said. Another disagreement came from parents whose teenage children hold paying jobs in the French Quarter's hundreds of restaurants and small souvenir stores. Police say exceptions are made for any curfew violators who can show proof of employment and provide confirmation of their late work schedules. So far, that has not been difficult to enforce, Walls said. While critics initially argued the new curfew is likely to be ineffective and rarely enforced, initial 2012 Mardi Gras statistics may suggest otherwise. Out of 816 total Mardi Gras-related arrests so far this year, 170 have been curfew-related. Violators are arrested and taken to the city's "Curfew Center" where a call is made home to parents. Walls said feedback so far from parents has actually been positive. Charles Dorsey was visiting the French Quarter with his wife and four young children. He's an African-American military veteran, originally from New Orleans, who now lives in Oklahoma. Dorsey said he spent a lot of time in the French Quarter as a kid, although most visits were supervised by his parents. He echoed some of the policy's critics in wondering about the motivation for a curfew change, but as a parent of two teenagers, he believes the curfew is a good idea overall. "I think it's good to keep kids off the street late at night. There's probably a lot down here they shouldn't be exposed to." "I think it's going to help the city business-wise in the end," he added. Along Saturday night's packed Endymion Parade route, the Fitzgerald family from Atlanta was decked out in colored plastic beads, smiling from ear to ear at the passing floats. The public debate over the curfew has largely stayed off the Fitzgeralds' radar, as they were in compliance celebrating the Mardi Gras season as a family. Both Matthew and Michelle Fitzgerald insist their visit to the notorious Big Easy has been a fantastic family experience, and they're not worried at all about the party atmosphere having a bad influence on their children, a teenager and three kids who looked to be between 6 and 12. "I felt safe and everyone was very friendly. ... It's been a great time," Matthew said. If the Fitzgeralds are a good measure, it seems the new restrictions have gone largely unnoticed by those in compliance. For 170 other families that have received a late-night call from police at the Curfew Center this Mardi Gras, one thing seems clear: Police are taking the new curfew's enforcement seriously.

Published: Mon, 20 Feb 2012 20:48:25 GMT

Senator 'optimistic' Egypt NGO standoff near end

A key U.S. senator said Monday he has high hopes for a positive resolution soon to the growing diplomatic crisis revolving around 19 American overseas aid workers facing charges as part of an Egyptian crackdown on nongovernmental organizations. "Quite frankly, I'm very optimistic we're going to get this episode behind us," GOP Sen. Lindsey Graham of South Carolina told CNN. "It's my hope (this will happen) sooner rather than later." Graham spoke from Cairo after meeting with top Egyptian military and political leaders. He's joined on the trip by Arizona Sen. John McCain, chairman of the board of the International Republican Institute, one of the organizations affected by the Egyptian crackdown. McCain said he had an "excellent conversation" with several accused American workers now receiving shelter and protection at the U.S. Embassy. But there is naturally a "certain amount of concern," he added. He stressed that he's not personally negotiating the workers' release, instead leaving those discussions to diplomats in the Obama administration. The Americans are among 43 people accused in a case involving foreign funding. They are scheduled to appear in a criminal court next Sunday, a spokesman for the Egyptian general prosecutor's office said. Among the Americans is Sam LaHood, director of Egypt operations for the International Republican Institute and the son of U.S. Transportation Secretary Ray LaHood. Sam LaHood is doing "fine," but "he's grown a full beard and he's not nearly as good looking as he used to be," McCain joked after meeting with the American workers. In December, authorities carried out 17 raids on the offices of 10 organizations, including the U.S.-based Freedom House, National Democratic Institute and the International Republican Institute. The latter group describes itself on its website as a nonprofit and nonpartisan organization that "advances freedom and democracy worldwide by developing political parties, civic institutions, open elections, democratic governance and the rule of law." Freedom House's website says it "supports democratic change, monitors freedom and advocates for democracy and human rights around the world," supporting nonviolent civic initiatives in societies where freedom is threatened. The National Democratic Institute says it works to support and strengthen democratic institutions worldwide "through citizen participation, openness and accountability in government." Adel Saeed, a spokesman with the Egyptian general prosecutor's office, said the raids were part of an investigation into allegations that the groups had received illegal foreign financing and were operating without a proper license. The groups have denied any wrongdoing. The International Republican Institute has said the prosecution is a "politically motivated assault" that "reflects escalating attacks against international and Egyptian democracy organizations." While Egypt may call the situation "a legitimate judicial process ... the continued assault on American, German and Egyptian civil society is not a 'legitimate judicial process,' " the group said. "We're being accused of things we've never done," institute President Lorne Craner said last month. "We are told we have operated without registration, and that is true because we filed our registration papers 5½ years ago. We were told the papers are complete, and we're still waiting." Similarly, the National Democratic Institute said it applied for registration in 2005 through the Egyptian Ministry of Foreign Affairs, "and has fulfilled all of the registration requirements for the past six years, including a number of updates provided in January." The group said it will "vigorously defend the accused personnel." "Despite promises made by Egyptian authorities to the highest levels of the U.S. government, we remain closed, our computers, files and cash still in the possession of the Ministry of Justice, and our staffs face hostile interrogations by investigating judges, and now the prospect of arrest and imprisonment," Freedom House President David Kramer testified last week before the House Committee on Foreign Affairs. "Nowhere else in the world has any of our offices been treated as they are in Egypt," Kramer said. The U.S. State Department said last week it had received a 24-page document from Egyptian authorities that lays out the specific charges against the staff of U.S. and international democracy-building groups. The employees of the American and European NGOs have been charged with operating in Egypt without licenses. An investigation by authorities revealed that the organizations received millions of pounds from abroad under the names of NGO employees and not through their official bank accounts. Ashraf El-Ashmawi and Sameh Abu Zeid, the two judges handling the cases, said the charges could lead to five-year prison sentences. "These organizations conducted unlicensed and illegal activities without the knowledge of the Egyptian government," said El-Ashmawi. "Documents confiscated during the raids on the NGOs offices confirm illegal foreign funding." Documents also showed that foreign workers employed by the NGOs deliberately had tourist -- not work -- visas and did not pay taxes, prosecutors said. Egyptian officials have blamed continuing unrest in their country on foreign interference they attribute, in part, to the organizations. The crisis has jeopardized U.S. aid to Egypt and strained relations between the two nations. In a February 2 letter to Secretary of State Hillary Clinton and Defense Secretary Leon Panetta, 41 members of Congress urged the Obama administration to withhold further aid to Egypt until the country's leadership lets the organizations reopen and returns seized property. The situation may have been fueled by a sense of nationalism on the part of Egypt's military-led government, which assumed control following the ouster of longtime President Hosni Mubarak a year ago, said Isobel Coleman, a senior fellow at the Council on Foreign Relations. "It's better in the short term to be seen as standing up to the Americans," she said this month. "... As the situation continues to be very unsettled in Egypt, the powers that be will look for a scapegoat. Blame your problems on outside powers. That's how it has been throughout history." But both sides have "painted themselves into a corner," said Marina Ottaway, a senior associate at the Middle East program of the Carnegie Endowment for International Peace. The Egyptians have made a legal case, she said, and the Americans will find it difficult to tell them to interfere with the work of the judiciary when they are trying to push democracy. Briefing reporters Friday, State Department spokeswoman Victoria Nuland said the agency's legal team has held a number of meetings on the situation. "We continue to work very hard on these issues. So we need to let that work go forward and hope we can solve this," she said. Nuland has said no speedy resolution of the case was expected.

Published: Mon, 20 Feb 2012 20:11:25 GMT

Oil prices spike on Iran export halt. Is $4 gas next?

Oil prices rose Monday after Iran cut exports to Britain and France, raising worries that higher gas prices may follow suit. Iran's oil ministry said Sunday that it would stop exporting oil to French and British companies. The announcement came just days after Iran threatened to cut supplies to some European Union countries in retaliation for sanctions put in place by the EU and United States. U.S. crude for April delivery jumped nearly 2% to $105.08 per barrel. Brent crude, Europe's benchmark, rose about 0.5% to $120.18 per barrel. Prices for Brent haven't been above $120 for more than a year, and that could prove worrisome for U.S. drivers since many U.S. refineries use imported oil to produce gas, especially on the East Coast. Prices are already up nearly 9% from the start of the year. According to motorist group AAA, the national average price of $3.56 a gallon marks the 13th consecutive increase. The price of unleaded gasoline in the U.S. will likely hit a nationwide average of $4 by this summer, said Dan Dicker, oil trader and author of "Oil's Endless Bid." The last time prices topped $4 was 2008 and Dicker said there's a one in three chance that gas could reach $5 a gallon. If gas prices do head to those lofty levels, that could put a crimp in the economic recovery as consumers will likely cut down on spending if they have to pay more to fill up their cars. Just last month, higher gas prices were to blame for an uptick in inflation. And it's not just consumers who will suffer. Companies facing higher shipping costs may reel in their hiring plans, slowing job growth and putting a crimp into the overall economic recovery. "This price juggernaut has taken on a life of its own since the Iran/Israeli threat flinging began and [the] boycott/sanctions war continues to ratchet upwards, and it's been made worse by the big run in stocks since the start of the year," said Dicker. Capital Economics analyst Julian Jessop said the stock market rebound has contributed at least $5 worth of gains to the price of oil. Israel has contributed to the market mayhem by openly considering an attack on Tehran's nuclear infrastructure. Iran exports 2.2 million barrels of oil per day, a sliver of the 89 million barrels that is consumed worldwide on a daily basis. Less than one-fifth of Iran's exports are sent to Europe. The move by Iran is "essentially an empty gesture, as the UK and France buy hardly any oil," said Jessop in a client note. But it doesn't take much to trigger a fluctuation in prices, and even a bit player like Iran can wreck havoc on international markets. "The supply is tethered so tightly to demand, that if you do lose even a small percentage of supply, it could have a big effect on the price," said Dicker. -- CNNWires staff contributed to this report

Published: Mon, 20 Feb 2012 19:40:50 GMT

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