Strauss-Kahn pimp charges weighed

By Laura Smith-Spark, CNN

updated 3:46 AM EST, Wed December 19, 2012

STORY HIGHLIGHTS

• Strauss-Kahn does not deny he attended sex parties


• But, his lawyers say, he didn't know the girls were paid for sex


• Earlier this month, he settled a civil suit with a New York hotel maid


• He also deflected two other scandals

(CNN) -- In one case after another, Dominique Strauss-Kahn has managed to put behind him the allegations of sexual misconduct that sidelined his prospects of becoming France's next president.

On Wednesday, the former chief of the International Monetary Fund -- and one time French finance minister -- will find out if he has managed a clean sweep.

A French appeals court will decide whether prosecutors should drop charges against Strauss-Kahn for his alleged participation in a prostitution ring, in what is known in France as the "Carlton affair."

Strauss-Kahn does not deny that he attended sex parties at Hotel Carlton in the northern city of Lille. But, his lawyers claim, he did not know that the young women at the parties were being paid for sex.

So, to charge Strauss-Kahn with aggravated pimping, is "unhealthy, sensationalist and not without a political agenda," his lawyers said.

Strauss-Khan, a 63-year-old economist, was widely expected to become the Socialist presidential candidate -- until his professional career imploded with an arrest in New York in May 2011.

A New York hotel housekeeper, Nafissatou Diallo, told police that a naked Strauss-Kahn emerged from a room of his spacious luxury hotel suite and tried to force himself on her, at one point dragging her into the bathroom and trying to remove her underwear.

Strauss-Kahn alleged the encounter was consensual, but stepped down from his $500,000 job at the IMF.

A grand jury indicted him on seven counts, including sexual abuse and attempted rape, but prosecutors later dropped the charges after concluding Diallo had lied about some details of the alleged attack -- despite forensic evidence that showed a sexual encounter had occurred.

Diallo then filed a civil suit against Strauss-Kahn. The two sides reached a settlement last week, the details of which have not been disclosed.

Earlier in October, a French prosecutor dropped an investigation connecting Strauss-Kahn to a possible gang rape in Washington.

The young Belgian woman whose testimony was the basis for the inquiry withdrew her previous statement and said she would not press charges -- leaving the investigation with no grounds to continue, officials said.

Strauss-Kahn also faced allegations of attempted rape from a young French writer.

Tristane Banon filed a complaint, alleging a 2003 attack. But prosecutors said the case could not be pursued because of a statute of limitations.

Strauss-Kahn denied the allegations and has since filed a countersuit in France, alleging slander.

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UBS to pay $1.5B in fines for rate manipulation

Updated 3:30 a.m. EST

GENEVA Swiss banking giant UBS AG said Wednesday it has admitted to fraud and agreed to pay some $1.5 billion to U.S., British and Swiss authorities in a probe into the rigging of global benchmark interest rates.

The settlement caps a tough year for Switzerland's biggest bank, which is one of several leading banks that has been under investigation over allegations of manipulating the benchmark LIBOR interest rate, short for London interbank offered rate. It is used to set the interest rates on trillions of dollars in contracts around the world, including mortgages and credit cards.

The rate is a self-policing system and relies on information global banks submit to a British banking authority. American and British regulators have already fined Britain's Barclays $453 million for submitting false information between 2005 and 2009 to keep the interest rate low.

UBS said some of its employees tried to rig the LIBOR rate in several currencies, but that its Japan unit, where much of the manipulation took place, entered a plea to one count of wire fraud in a proposed agreement with the U.S. Justice Department.

The statement from the UBS board of directors said some of its personnel had "engaged in efforts to manipulate submissions for certain benchmark rates to benefit trading positions."

The bank also said some of its employees had "colluded with employees at other banks and cash brokers to influence certain benchmark rates to benefit their trading positions" or had given "inappropriate directions to UBS submitters that were in part motivated by a desire to avoid unfair and negative market and media perceptions during the financial crisis."

Sergio Ermotti, who was appointed CEO of UBS AG in November 2012 in the wake of a major trading scandal, said in the statement that the misconduct does not reflect the bank's values or standards.

"We deeply regret this inappropriate and unethical behavior. No amount of profit is more important than the reputation of the firm, and we are committed to doing business with integrity," he said.

With more than $2.4 trillion in invested assets, Zurich-based UBS is one of the world's largest managers of private wealth assets. At last count, the bank had 63,745 employees in 57 countries. It has said it aims for a headcount of 54,000 in 2015.

Along with Credit Suisse, the second-largest Swiss bank, UBS is on the list of the 29 "global systemically important banks" that the Basel, Switzerland-based Bank for International Settlements, the central bank for central banks, considers too big to fail.

In 2008, UBS was forced to seek a bailout from the Swiss government when it was hard hit by the financial crisis and its fixed-income unit had more than $50 billion in losses. U.S. authorities fined UBS $780 million in 2009 for helping U.S. citizens avoid paying taxes. The U.S. government has since been pushing Switzerland to loosen its rules on banking secrecy and has been trying to shed its image as a tax haven, signing deals with the United States, Germany and Britain to provide greater assistance to foreign tax authorities seeking information on their citizens' accounts.

In April, Ermotti called Switzerland's tax disputes with the United States and some European nations "an economic war" putting thousands of jobs at risk.

In September 2011, the bank announced more than $2 billion in losses and blamed a 32-year-old rogue trader, Kweku Adoboli, at its London office for Britain's biggest-ever fraud at a bank.

Britain's financial regulator fined UBS, saying its internal controls were inadequate to prevent Adoboli, a relatively inexperienced trader, from making vast and risky bets. Adoboli has been sentenced to seven years in prison.

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Newtown Settles In for Prayerful, Somber Christmas

Residents of Sandy Hook, Conn., gather every year under an enormous tree in the middle of town to sing carols and light the tree. The tree is lit this year, too, but the scene beneath it is starkly different.

The tree looms over hundreds of teddy bears and toys, but they are for children who will never receive them. The ornaments are adorned with names and jarringly recent birth dates.

Wreaths with pine cones and white ribbons hang near the tree, one each for a life lost. A small statue of an angel child sleeps among a sea of candles.

A steady flow of well-wishers, young and old, tearfully comes to cry, pray, light candles, leave gifts and share hugs and stories.

CLICK HERE for complete coverage of the massacre at Sandy Hook.

The Christmas season is a normally joyful time for this tight-knit village, but in the wake of a shooting rampage, holiday decorations have given way this year to memorial signs. And instead of cars with Christmas trees on top, there are media vans with satellites.

Connie Koch has lived in Newtown for nine years. She lives directly behind Sandy Hook Elementary School, where Adam Lanza, 20, killed 20 children and six adults before turning the gun on himself. Earlier that Friday morning, he had also killed his mother at home.

President Obama on Newtown Shooting: 'We Must Change' Watch Video

Koch said the shocked town, which includes the Village of Sandy Hook, is experiencing a notably different Christmas this year.

"It's more somber, much more time spent in prayer for our victims' families and our friends that have lost loved ones," she said as she stood near the base of the tree.

CLICK HERE for a tribute to the shooting victims.

Her family has been touched by the tragedy is multiple ways.

"My daughter, she lost her child that she babysat for for six years," she said, holding back tears. "And for her friend who lost her mother. And for my dear friend who lost one of her friends in the school, one of the aides.

"It's hard. And there will be much prayer on Christmas morning for these people, for our community."

Koch said her community always rallies in the face of tragedy, but the term "hits close to home" resonates this time more than ever before. She says the only way to make it through is one day at a time.

"It's all you can do, one hour at a time," Koch said. "For me, I don't even want to wake up in the morning because I don't want to have to face it again. You feel like it's still just a dream and with the funerals starting, it's becoming more real. It's becoming more final."

Another Newtown parent, Adam Zuckerman, stood by the makeshift memorial with a roll of red heart stickers with the words, "In Our" above a drawing of the Sandy Hook Elementary School welcome sign. He was selling the stickers to collect money for a Sandy Hook victims' fund.

"It's a lot," he said of the events of the past few days. "We don't know how it's going to affect our community, but I feel very strongly that I needed to do something to keep it positive, to keep this community positive."

Zuckerman's 20-year-old stepdaughter came home from college for winter break the night before the shooting. As a high school student, she worked in one of the town's popular toy stores.

"She knew a lot of the kids," he said of his daughter. "Their parents brought them in over the years. We have other friends who have lost family here and good friends who are dear friends with the principal of the school. … It's pretty rough."

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Twin attack could deliver universal flu vaccine

A UNIVERSAL vaccine. It is the stuff of dreams for flu scientists, but it could be within reach if a new type of vaccine that elicits an immune response from white blood cells is combined with traditional vaccines.

Every year, between 250,000 and 500,000 people of all ages die worldwide after getting seasonal flu, partly because few people are vaccinated for it. When a novel human flu evolves in pigs or poultry and becomes pandemic, the numbers can be even higher. The solution is better vaccines for people and animals.

Flu comes back every year because when you catch it or are vaccinated, your immune system is only trained to identify the flu's large surface proteins. These proteins change from year to year, allowing flu to strike again if you haven't had an updated vaccine.

To end the need for continually updated shots, researchers have tried to create a vaccine for all flu, with varied success.

Most attempts have been vaccines designed to make us produce antibodies, aimed not at flu's surface proteins, but at internal proteins that are the same in all flu viruses. Success has been mixed. But there is another arm to the immune system. White blood cells called T-cells tend to attack a wider range of invaders than antibodies. If a vaccine sensitises them to internal flu proteins, they could potentially kill all types of flu.

Earlier this year, Sarah Gilbert and colleagues at the University of Oxford equipped the virus used in the smallpox vaccine, which stimulates this cell-mediated immunity, with two proteins common to all flu viruses. They reported that this vaccine prevented symptoms in some people experimentally infected with flu, and those that did get sick had milder symptoms.

Now Colin Butter and colleagues at the Institute for Animal Health in Compton, UK, have tested that vaccine, and a similar one made of a different live virus, in chickens (Vaccine, doi.org/jz6). Just as in people, it did not prevent infection, but the birds' T-cells responded strongly, and less of the virus was passed on.

Neither result sounds very impressive. But, says Butter, the key will be combining these vaccines with the classic kind that elicits antibodies. Gilbert reports that her team has tested such a combination in people, and has seen cell-mediated immunity to the universal proteins, as well as antibodies to specific surface proteins.

Such a combination could be more than the sum of its parts. In chickens, for example, antibodies could knock out the main virus, while T-cells mop up the variants that evade the antibodies and allow the virus to keep spreading - and evolving. "We could finally get vaccines that stop viral spread completely," says Butter.

The "universal" proteins would also give chickens and humans some protection against novel flu viruses. And because they work against all flu, such vaccines can be stockpiled to prepare for pandemics. "I'd love to have a stockpile of vaccine with both antibody and cell-mediated capabilities," says Thomas Reichert of the Entropy Research Institute in Lincoln, Massachusetts. This gives us a chance to beat an adversary we've been defeated by time and again. Or as Reichert puts it: "Now that might bring flu to the negotiating table."

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Report details extensive Walmart bribery in Mexico

NEW YORK: Retail giant Walmart aggressively bribed Mexican officials to get the necessary permits to open more than a dozen supermarkets across the country, the New York Times reported on Tuesday.

The newspaper said its own investigation had identified 19 store sites that were the target of bribery, and detailed one case in which more than $200,000 in bribes was paid to build a supermarket near famed Aztec ruins.

"The Times' examination reveals that Wal-Mart de Mexico was not the reluctant victim of a corrupt culture that insisted on bribes as the cost of doing business. Nor did it pay bribes merely to speed up routine approvals.

"Rather, Wal-Mart de Mexico was an aggressive and creative corrupter, offering large payoffs to get what the law otherwise prohibited," it said.

Wal-Mart "used bribes to subvert democratic governance -- public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction. It used bribes to outflank rivals."

The Times said Walmart officials themselves did not pay bribes, but arranged for outside lawyers and other middlemen to deliver envelopes of cash that could not be traced back to the company.

The Times said Walmart managed to build a Sam's Club in one of Mexico City's most densely populated neighbourhoods without a construction, environmental or even traffic permit after paying bribes totalling $341,000.

It paid $765,000 in bribes to build a large refrigerated distribution centre in an environmentally fragile flood basin north of the city, the Times said.

And in the case it detailed, Walmart paid more than $200,000 in bribes to build a supermarket in the ancient city of Teotihuacan, near the town's famed step pyramids.

The Times said it used a $52,000 bribe to alter a zoning map that had been approved by the town's elected leaders, and bribed other officials to help it circumvent laws on protecting antiquities, sparking protests in 2004.

Walmart said in response to the story that it had launched an investigation a year ago into potential violations of the US Foreign Corrupt Practices Act -- which prohibits bribery -- but had not yet reached any final conclusions.

"We are committed to having a strong and effective global anti-corruption programme everywhere we operate and taking appropriate action for any instance of non-compliance," spokesman David Tovar said in the statement.

Walmart is the largest private employer in Mexico, with 221,000 people working in 2,275 stores across the country, according to the Times.

- AFP/al

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Obama moves on taxes in latest "cliff" counter-proposal

President Obama gave up Monday on his demand for higher taxes on households earning $250,000 and upped it to $400,000 while embracing smaller cost-of-living Social Security raises in a counter-proposal to House Speaker John Boehner meant to narrow differences and forge a pre-Christmas "fiscal cliff" deal.

Mr. Obama and Boehner met for nearly an hour in the Oval Office on Monday and sources familiar with the talks released specific details of the White House proposal.

Boehner aides said it brought the two sides closer but said a deal was not at hand.

"Any movement away from the unrealistic offers the President has made previously is a step in the right direction, but a proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced," said Brendan Buck, a Boehner spokesman.

Other senior Republican aides told reporters on Capitol Hill they are not rejecting the latest White House offer, but they also said that there is not parity or balance in the White House plan and substantive issues remain unresolved. One senior aide said the issues that they are talking about are not technically difficult to resolve, but they were wary the differences might be fundamental issues that are difficult to resolve.

But the depth, specificity and fine-grain nature of discussions over policy, tax revenue and spending cuts belied the tough rhetoric from the two sides in the negotiation. Signs point to a deal before the New Year's fiscal cliff deadline -- and possibly an announcement as early as Wednesday.

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Boehner's "fiscal cliff" offer brings optimism to Capitol Hill

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Boehner's "fiscal cliff" concessions come with a price

Talks picked up genuine momentum on Friday when Boehner agreed to higher income tax rates on households earning $1 million and above. Previously, Boehner opposed all income tax increases. He also gave in on raising the debt ceiling, a vote some Republicans wanted to use as leverage against Obama in 2013. Both gestures, top White House aides said, broke the logjam.

Mr. Obama responded with big concessions of his own on Monday. He offered a $400,000 income threshold for a Clinton-era top tax bracket of 39.6 percent. Boehner had proposed that tax rate for millionaires and a total 10-year tax revenue figure of $1 trillion. Obama wants $1.2 trillion in new revenue. Both sides look for hundreds of billions in new revenue in 2013 through a tax reform process that eliminates some tax deduction and closes loopholes.

The president also wants a two-year ceasefire on raising the debt ceiling. Boehner offered one year.

In addition to disagreement on income levels for tax rates or some other way to get more revenue, the two sides have not set in stone an actual tax reform process. It sounds like they are talking about creating a new sequester-like mechanism in 2014 as incentive for both tax reform and entitlement reforms.

Speaking of entitlements, Boehner also asked the White House to increase the eligibility age for Medicare but Mr. Obama again refused. This difference could loom large as Republicans want structural cost-saving changes in Medicare in exchange for raising income tax rates.

Mr. Obama has given ground on cost-of-living adjustments to Social Security and other federal benefits, but is trying to shield Medicare. Democrats have warned Obama they might bolt if he folds on raising Medicare's eligibility age. They have been less emphatic about cost-of-living adjustments.

Other components of the president's counter-proposal include:

• $1.2 trillion in new income tax revenue with a 39.6 percent (up from 35 percent) on income of $400,000 or more.
• $1.2 trillion in spending cuts divided this way: $800 billion in cuts; $290 billion in interest savings due to lower deficits; $130 billion in cost-of-living adjustments - - with specific protections to preserve increases for economically disadvantaged beneficiaries. Because changing cost-of-living adjustments would also affect where people fell in various tax brackets, this move would raise $90 billion
• The $800 billion in cuts would come from $400 billion in savings to health care entitlements like Medicare and Medicaid; $200 billion in better tax revenue collection, increased financial transaction fees and reduced federal employee benefits.
• $200 billion in domestic discretionary -- annual spending on basic government functions - divided equally between defense and non-defense programs.
• At least $50 billion devoted next year to infrastructure spending and more in latter years - figures still subject to negotiation.
• A one-year extension of unemployment insurance benefits.

Both sides have already agreed to create long-term solutions for the annual ritual of adjusting the Alternative Minimum Tax, the reimbursement formulas for Medicare physicians and a grab-bag of pro-business tax breaks.

Obama also did not ask for an extension of the temporary 2 percent payroll tax - a priority for some Democrats.

Funding for Superstorm Sandy will be handled separately from the emerging fiscal cliff package. The Senate is considering the administration's $60.4 billion request and the White House expects swift, bipartisan approval.

CBS News Capitol Hill producer Jill Jackson contributed to this report.

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Conn. Kids Laid to Rest: 'Our Hearts Are With You'

Visibly shaken attendees exiting the funeral today for 6-year-old Noah Pozner, one of 20 children killed in the Connecticut school massacre last week, said they were touched by a story that summed up the first-grader best.

His mother, Veronique, would often tell him how much she loved him and he'd respond: "Not as much as I [love] you," said a New York man who attended the funeral but was not a member of the family.

Noah's family had been scheduled to greet the public before the funeral service began at 1 p.m. at the Abraham L. Green & Son Funeral Home in Fairfield, Conn. The burial was to follow at the B'nai Israel Cemetery in Monroe, Conn. Those present said they were in awe at the composure of Noah's mother.

Rabbi Edgar Gluck, who attended the service, said the first person to speak was Noah's mother, who told mourners that her son's ambition when he grew up was to be either a director of a plant that makes tacos -- because that was his favorite food -- or to be a doctor.

Outside the funeral home, a small memorial lay with a sign reading: "Our hearts are with you, Noah." A red rose was also left behind along with two teddy bears with white flowers and a blue toy car with a note saying "Noah, rest in peace."

CLICK HERE for complete coverage of the tragedy at Sandy Hook.

Don Emmert/AFP/Getty Images

President Obama on Newtown Shooting: 'We Must Change' Watch Video

The funeral home was adorned with white balloons as members of the surrounding communities came also to pay their respects, which included a rabbi from Bridgeport. More than a dozen police officers were at the front of the funeral home, and an ambulance was on standby at a gas station at the corner.

U.S. Sen. Richard Blumenthal, U.S. Rep. and Sen.-Elect Chris Murphy and Gov. Dannel P. Malloy, all of Connecticut, were in attendance, the Connecticut Post reported.

Noah was an inquisitive boy who liked to figure out how things worked mechanically, The Associated Press reported. His twin sister, Arielle, was one of the students who survived when her teacher hid her class in the bathroom during the attack.

CLICK HERE for a tribute to the shooting victims.

The twins celebrated their sixth birthday last month. Noah's uncle Alexis Haller told the AP that he was "smart as a whip," gentle but with a rambunctious streak. He called his twin sister his best friend.

"They were always playing together, they loved to do things together," Haller said.

The funeral for Jack Pinto, 6, was also held today, at the Honan Funeral Home in Newtown. He was to be buried at Newtown Village Cemetery.

Jack's family said he loved football, skiing, wrestling and reading, and he also loved his school. Friends from his wrestling team attended his funeral today in their uniforms. One mourner said the message during the service was: "You're secure now. The worst is over."

Family members say they are not dwelling on his death, but instead on the gift of his life that they will cherish.

The family released a statement, saying, Jack was an "inspiration to all those who knew him."

"He had a wide smile that would simply light up the room and while we are all uncertain as to how we will ever cope without him, we choose to remember and celebrate his life," the statement said. "Not dwelling on the loss but instead on the gift that we were given and will forever cherish in our hearts forever."

Jack and Noah were two of 20 children killed Friday morning at Sandy Hook Elementary School in Newtown, Conn., when 20-year-old Adam Lanza sprayed two first-grade classrooms with bullets that also killed six adults.

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'The idea we live in a simulation isn't science fiction'

If the universe is just a Matrix-like simulation, how could we ever know? Physicist Silas Beane thinks he has the answer

The idea that we live in a simulation is just science fiction, isn't it?
There is a famous argument that we probably do live in a simulation. The idea is that in future, humans will be able to simulate entire universes quite easily. And given the vastness of time ahead, the number of these simulations is likely to be huge. So if you ask the question: 'do we live in the one true reality or in one of the many simulations?', the answer, statistically speaking, is that we're more likely to be living in a simulation.

How did you end up working on this issue?
My day job is to do high performance computing simulations of the forces of nature, particularly the strong nuclear force. My colleagues and I use a grid-like lattice to represent a small chunk of space and time. We put all the forces into that little cube and calculate what happens. In effect, we're simulating a very tiny corner of the universe.

How accurate are your simulations?
We're able to calculate some of the properties of real things like the simplest nuclei. But the process also generates artefacts that don't appear in the real world and that we have to remove. So we started to think about what sort of artefacts might appear if we lived in a simulation.

What did you discover?
In our universe the laws of physics are the same in every direction. But in a grid, this changes since you no longer have a spacetime continuum, and the laws of physics would depend on direction. Simulators would be able to hide this effect but they wouldn't be able to get rid of it completely.

How might we gather evidence that we're in a simulation?
Using very high energy particles. The highest energy particles that we know of are cosmic rays and there is a well-known natural cut off in their energy at about 10²⁰ electron volts. We calculated that if the simulators used a grid size of about 10^-27 metres, then the cut off energy would vary in different directions.

Do cosmic rays vary in this way?
We don't know. The highest energy cosmic rays are very rare. A square kilometre on Earth is hit by one only about once per century so we're not going to be able map out their distribution any time soon. And even if we do, it'll be hard to show that this is conclusive proof that we're in a simulation.

But can we improve our own simulations?
The size of the universe we simulate is a just fermi, that's a box with sides 10^-15 metres long. But we can use Moore's Law to imagine what we might be able to simulate in future. If the current trends in computing continue, we should be simulating a universe the size of a human within a century and within five centuries, we could manage a box 10²⁶ metres big. That's the size of the observable universe.

How have people reacted to your work?
I gave a lecture on this topic the other week and the turnout was amazing. Half of the people looked at me as if I was disturbed and the other half were very enthusiastic.

Profile

Silas Beane is a physicist at the University of Bonn, Germany. His paper "Constraints on the Universe as a Numerical Simulation" has been submitted to the journal Physical Review D

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Royal Thai Air Force Air Chief Marshal Prajin Juntong visits S'pore

SINGAPORE: Commander-in-Chief of the Royal Thai Air Force (RTAF) Air Chief Marshal (ACM) Prajin Juntong is in Singapore on a three-day introductory visit.

He called on Senior Minister of State for Defence Mr Chan Chun Sing at the Ministry of Defence (MINDEF) on Monday afternoon.

ACM Prajin had earlier called on Chief of Air Force Major-General Ng Chee Meng after inspecting a Guard of Honour.

ACM Prajin will co-officiate the opening ceremony of Exercise Cope Tiger on Tuesday. Exercise Cope Tiger is an annual trilateral exercise conducted by the air forces of Singapore, Thailand and the United States.

MINDEF said ACM Prajin's visit underscores the close and long-standing defence ties shared between Singapore and Thailand.

The Republic of Singapore Air Force and the RTAF interact regularly through exercises, professional exchanges, and courses. These interactions have bolstered the friendship and mutual understanding among the personnel of the two air forces, said MINDEF.

- CNA/jc

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