03/31/2011 (2:16 am)

New York Fed Declines AIG’s Offer for Maiden Lane II Mortgage-Bond Assets - Bloomberg

Filed under: Mortgage, Uncategorized |

American International Group Inc. (AIG), the bailed-out insurer, was rebuffed by the Federal Reserve Bank of New York in its bid to repurchase a portfolio of mortgage- backed securities for $15.7 billion.

The New York Fed will instead sell the assets individually and in blocks, the regulator said today in a statement posted on its website. BlackRock Inc. (BLK), the New York Fed’s investment manager, will issue the first bid list next week, according to the statement.

AIG handed the mortgage bonds, known as Maiden Lane II, to the New York Fed in 2008 in exchange for a cash injection that helped save the company from collapse. The insurer, which sold non-U.S. businesses and swung to profit last year, said it was bidding for the securities to boost investment returns.

The New York Fed and the Board of Governors “judged that the public interest in maximizing returns from any sale and promoting financial stability would be better served by an alternate approach,” according to the statement

AIG, which is 92 percent-owned by the U.S. government, made public on March 10 a bid for the pool of mortgage bonds. The U.S. government’s rescue of AIG, initiated in 2008, is valued at $182.3 billion.

Maiden Lane II holds assets that AIG had purchased with collateral turned over by Wall Street banks through securities- lending deals. When the housing market collapsed, AIG was unable to reimburse banks that wanted their collateral back, prompting the Fed to make about $22.5 billion available to Maiden Lane II to take the assets off the company’s balance sheet.

Value Bounces Back

The value of some of the securities subsequently rebounded and the bonds have paid coupons, reducing the Fed’s investment in the facility. At the same time, AIG has lowered its obligations under the bailout by selling units including non- U.S. life insurers and a consumer lender.

Barclays Plc (BARC) is among investors considering making a counter offer for the assets, a person briefed on the matter said last week, asking not to be identified because the deliberations are private. Seth Martin, a Barclays spokesman in New York, declined to comment.

“We have been told that someone else was putting together a bid,” AIG Chief Executive Officer Robert Benmosche, 66, said in an interview with the Financial Times, which reported Barclays’s deliberations earlier this month. “I think we can offer a little more, but the price we offered is about it. Until I see a competing bid, I’d have to wait and see.”

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03/29/2011 (12:36 pm)

Home Prices, Consumer Confidence in U.S. Probably Decreased - Bloomberg

Filed under: Loans, News |

Residential real estate prices probably dropped in January by the most in more than a year, raising the risk that home sales will keep slowing, economists said before a report today.

The S&P/Case-Shiller index of property values in 20 cities fell 3.2 percent from January 2010, the biggest 12-month decrease since November 2009, according to the median forecast of 29 economists surveyed by Bloomberg News. Another report may show consumer confidence declined in March as gasoline prices climbed.

Rising foreclosures are swelling the number of houses on the market, which may lower prices further in coming months. Falling home values, in turn, may keep potential buyers on the sidelines waiting for better deals, hurting construction and consumer spending as owners’ equity evaporates.

“The more home prices fall, the easier it is for people to wait to buy, and that can reinforce the downward cycle,” said Steven Blitz, a senior economist at ITG Investment Research, Inc. in New York. “The flip side is people still need to sell because you’ve got a lot of people who have stressed budgets.”

The S&P/Case-Shiller index, based on a three-month average, is due at 9 a.m. New York time. Survey estimates ranged from declines of 3.7 percent to 2.4 percent, after a 2.4 percent drop in December.

The New York-based Conference Board’s consumer confidence gauge, due at 10 a.m., fell to 65 from 70.4 in March, according to the survey median. Estimates ranged from 59 to 72.

Confidence Wanes

The projected drop compares with similar surveys in which consumers’ economic outlook dimmed. The Bloomberg Consumer Comfort Index last week dropped to the lowest level since August, and the Thomson Reuters/University of Michigan sentiment index fell to a 16-month low.

The Case-Shiller report may show home prices fell 0.4 percent in January from the prior month, the seventh straight decline, according to the Bloomberg survey.

The year-over-year gauges provide better indications of trends in prices, the group has said. The panel includes Karl Case and Robert Shiller, the economists who created the index.

Unemployment at 8.9 percent indicates the number of distressed properties may increase, leading to more price declines as homeowners struggle to make mortgage payments. About 8.2 percent of loans outstanding were delinquent in the fourth quarter of 2010, according to Mortgage Bankers Association data.

Hurting Recovery

Bank of America Corp. Chief Executive Officer Brian T. Moynihan said the housing slump is the biggest challenge limiting the U.S. economic recovery.

“The problem of delinquent mortgages and falling home values is the most stubborn, entrenched and damaging economic problem our country faces today,” Moynihan said March 23 in Detroit, at a meeting of the city’s Economic Club.

Faced with declining home prices and the growing glut of unsold homes, residential real estate developers are reluctant to boost construction. Housing starts in the U.S. dropped more than forecast in February to the slowest pace since April 2009, and building permits slumped to a record low, the Commerce Department reported March 16.

Homebuilder shares have underperformed the broader stock market since the middle of last year. The Standard & Poor’s Supercomposite Homebuilder Index of 12 companies has declined 10 percent in the 12 months ended yesterday, compared with a 12 percent increase for the broader S&P 500 Index.

Bloomberg Survey ===================================================== Case Shil Case Shil Consumer Monthly Monthly Conf MOM% YOY% Index ===================================================== Date of Release 03/29 03/29 03/29 Observation Period Jan. Jan. March —————————————————- Median -0.4% -3.2% 65.0 Average -0.5% -3.2% 64.6 High Forecast -0.1% -2.4% 72.0 Low Forecast -0.9% -3.7% 59.0 Number of Participants 18 29 68 Previous -0.4% -2.4% 70.4 —————————————————- 4CAST Ltd. — -3.3% 62.0 ABN Amro -0.4% — 65.0 Action Economics — — 62.0 Aletti Gestielle SGR — — 66.5 Ameriprise Financial — — 68.5 Banesto — -3.2% 64.8 Bank of Tokyo- Mitsubishi — — 65.4 Bantleon Bank AG — — 62.0 Barclays Capital -0.4% -3.2% 66.0 Bayerische Landesbank — — 65.0 BBVA -0.8% -3.7% 64.0 BMO Capital Markets — -2.4% 68.0 BofA Merrill Lynch — -3.4% 62.0 Briefing.com — -3.5% 64.0 Capital Economics — — 65.0 Citi — — 63.0 ClearView Economics -0.5% — 68.0 Commerzbank AG — -3.4% 65.0 Credit Agricole CIB — — 65.0 Credit Suisse — — 70.0 DekaBank — — 66.0 Desjardins Group — -3.1% 64.6 Deutsche Bank Securities — — 62.0 Deutsche Postbank AG — — 62.0 Exane — — 64.0 First Trust Advisors — — 59.8 Goldman, Sachs & Co. -0.2% — 60.0 Helaba — — 65.0 HSBC Markets -0.4% -3.2% 62.5 Hugh Johnson Advisors — — 67.3 IDEAglobal — -3.2% 68.0 IHS Global Insight — — 60.0 Informa Global Markets — — 66.0 ING Financial Markets -0.6% -3.4% 66.0 Intesa-SanPaulo — — 65.0 ITG Investment Research — -3.7% — J.P. Morgan Chase -0.3% -3.2% 66.0 Janney Montgomery Scott -0.7% -3.3% 66.5 Jefferies & Co. — — 65.0 Landesbank Berlin — — 67.4 Landesbank BW — -2.9% 64.5 MF Global -0.4% -3.3% 61.5 Mizuho Securities — -3.3% 63.0 Moody’s Analytics — — 63.0 National Bank Financial — — 72.0 Natixis — -3.0% 67.0 Newedge — — 65.0 Nomura Securities Intl. — -3.2% — Nord/LB — — 64.5 Parthenon Group -0.5% -3.3% 66.4 Pierpont Securities — — 64.5 PineBridge Investments -0.1% — 68.0 PNC Bank — — 66.0 Raiffeisenbank International — — 63.0 Raymond James — — 65.0 RBC Capital Markets — — 59.0 RBS Securities Inc. — — 64.0 Scotia Capital — -3.0% — Societe Generale — — 63.0 Standard Chartered -0.9% -3.1% 62.0 State Street Global Markets -0.5% -3.3% 64.1 Stone & McCarthy Research — — 64.0 TD Securities -0.6% -3.4% 65.0 UBS -0.7% -3.6% 62.0 UniCredit Research — -3.0% 64.0 Union Investment — — 66.0 University of Maryland -0.2% -3.2% 67.0 Wells Fargo & Co. — — 63.5 WestLB AG — -3.0% 65.0 Westpac Banking Co. — — 65.0 Wrightson ICAP -0.4% — 62.0 ====================================================

To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net

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03/22/2011 (6:18 pm)

Missouri gets $26.9 million for small business loans

Filed under: News, Uncategorized |

Missouri’s small businesses will be able to access $26.9 million in additional funding as part of the federal Small Business Jobs Act approved last fall.

Nationwide, $1.5 billion federal funding is being made available through the State Small Business Credit Initiative.

The federal funds are designed for state-run programs to partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate that at least $10 in new private lending will result from every $1 in federal funding.

Missouri economic development officials said the $26.9 million in new funds will spur more than $269 million in additional small business lending statewide.

Gov. Jay Nixon is visiting the Center for Emerging Technologies in St. Louis this morning to provide details on the funding and he’ll be in Kansas City this afternoon.

“These new resources will help Missouri entrepreneurs grow their operations and turn their dreams into bricks and mortar,” Nixon said in a statement low interest rate personal loans.

In Missouri, $16.9 million of the funds will go toward establishing the Missouri IDEA Seed and Venture Capital Funds for science and technology firms. The funds will provide pre-seed capital stage financing, seed capital stage financing, venture capital stage financing and expansion stage debt.

The remaining $10 million will fund the Grow Missouri Loan Participation Fund for industrial, commercial, agricultural and recreational firms. Businesses with fewer than 500 employees will be eligible to apply for up to $3 million in loans to attract new enterprises and expand existing companies.

Applications for the funding, which will be available on the MO.gov website, will be accepted beginning April 8. 

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03/21/2011 (3:24 am)

Food contamination worries Japan after disasters

Filed under: UK, marketing |

Repercussions of Japan’s triple disaster came into clearer focus Monday after the World Bank said the earthquake and tsunami caused up to $235 billion in damage and health officials reported more cases of radiation-tainted vegetables and tap water.

Japanese officials reported progress over the weekend in their battle to gain control over a nuclear complex that began leaking radiation after suffering quake and tsunami damage, though the crisis was far from over, with a dangerous new surge in pressure reported in one of the plant’s six reactors.

The announcement by Japan’s Health Ministry late Sunday that tests had detected excess amounts of radioactive elements on canola and chrysanthemum greens marked a low moment in a day that had been peppered with bits of positive news: First, a teenager and his grandmother were found alive nine days after being trapped in their earthquake-shattered home. Then, the operator of the overheated nuclear plant said two of the six reactor units were safely cooled down.

“We consider that now we have come to a situation where we are very close to getting the situation under control,” Deputy Cabinet Secretary Tetsuro Fukuyama said.

Still, serious problems remained at the Fukushima Dai-ichi nuclear complex. Pressure unexpectedly rose in a third unit’s reactor, meaning plant operators may need to deliberately release radioactive steam. That has only added to public anxiety over radiation that began leaking from the plant after a monstrous earthquake and tsunami devastated northeastern Japan on March 11 and left the plant unstable. As day broke Monday, Japan’s military resumed dousing of the complex’s troubled Unit 4.

The World Bank said in report Monday that Japan may need five years to rebuild from the catastrophic disasters, which caused up to $235 billion in damage, saying the cost to private insurers will be up to $33 billion and that the government will spend $12 billion on reconstruction in the current national budget and much more later.

The safety of food and water was of particular concern. The government halted shipments of spinach from one area and raw milk from another near the nuclear plant after tests found iodine exceeded safety limits. Tokyo’s tap water, where iodine turned up Friday, now has cesium. Rain and dust are also tainted.

Early Monday , the Health Ministry advised Iitate, a village of 6,000 people about 30 kilometers (19 miles) northwest of the Fukushima plant, not to drink tap water due to elevated levels of iodine. Ministry spokesman Takayuki Matsuda said iodine three times the normal level was detected there _ about one twenty-sixth of the level of a chest X-ray.

In all cases, the government said the radiation levels were too small to pose an immediate health risk.

But Tsugumi Hasegawa was skeptical as she cared for her 4-year-old daughter at a shelter in a gymnasium crammed with 1,400 people about 80 kilometers (50 miles) from the plant.

“I still have no idea what the numbers they are giving about radiation levels mean. It’s all so confusing,” said Hasegawa, 29, from the small town of Futuba in the shadow of the nuclear complex. “And I wonder if they aren’t playing down the dangers to keep us from panicking. I don’t know who to trust.”

All six of the nuclear complex’s reactor units saw trouble after the disasters knocked out cooling systems. In a small advance, the plant’s operator declared Units 5 and 6 _ the least troublesome _ under control after their nuclear fuel storage pools cooled to safe levels. Progress was made to reconnect two other units to the electric grid and in pumping seawater to cool another reactor and replenish it and a sixth reactor’s storage pools.

But the buildup in pressure inside the vessel holding Unit 3’s reactor presented some danger, forcing officials to consider venting. The tactic produced explosions of radioactive gas during the early days of the crisis.

“Even if certain things go smoothly, there would be twists and turns,” Chief Cabinet Secretary Yukio Edano told reporters. “At the moment, we are not so optimistic that there will be a breakthrough.”

Growing concerns about radiation add to the overwhelming chain of disasters Japan has struggled with since the 9.0-magnitude quake. It spawned a tsunami that ravaged the northeastern coast, killing 8,600 people, leaving more than 12,800 people missing, and displacing another 452,000, who are living in shelters.

Fuel, food and water remain scarce. The government in recent days acknowledged being caught ill-prepared by an enormous disaster that the prime minister has called the worst crisis since World War II.

Bodies are piling up in some of the devastated communities and badly decomposing even amid chilly rain and snow.

“The recent bodies _ we can’t show them to the families. The faces have been purple, which means they are starting to decompose,” says Shuji Horaguchi, a disaster relief official setting up a center to process the dead in Natori, on the outskirts of the tsunami-flattened city of Sendai. “Some we’re finding now have been in the water for a long time, they’re not in good shape. Crabs and fish have eaten parts.”

Contamination of food and water compounds the government’s difficulties, heightening the broader public’s sense of dread about safety. Consumers in markets snapped up bottled water, shunned spinach from Ibaraki _ the prefecture where the tainted spinach was found _ and overall expressed concern about food safety.

Experts have said the amounts of iodine detected in milk, spinach and water pose no discernible risks to public health unless consumed in enormous quantities over a long time. Iodine breaks down quickly, after eight days, minimizing its harmfulness, unlike other radioactive isotopes such as cesium-137 or uranium-238, which remain in the environment for decades or longer.

High levels of iodine are linked to thyroid cancer, one of the least deadly cancers if treated. Cesium is a longer-lasting element that affects the whole body and raises cancer risk.

Rain forecast for the Fukushima area also could further localize the contamination, bringing the radiation to the ground closer to the plant.

Edano tried to reassure the public for a second day in a row. “If you eat it once, or twice, or even for several days, it’s not just that it’s not an immediate threat to health, it’s that even in the future it is not a risk,” Edano said. “Experts say there is no threat to human health.”

No contamination has been reported in Japan’s main food export _ seafood _ worth about $1.6 billion a year and less than 0.3 percent of its total exports.

Amid the anxiety, there were moments of joy on Sunday. An 80-year-old woman and her teenage grandson were rescued from their flattened two-story house after nine days, when the teen pulled himself to the roof and shouted to police for help.

Other survivors enjoyed smaller victories. Kiyoshi Hiratsuka and his family managed to pull his beloved Harley Davidson motorcycle from the rubble in their hometown of Onagawa. The 37-year-old mechanic said he knows it will never work anymore. “But I want to keep it as a memorial.”

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03/19/2011 (7:44 am)

World leaders gather in critical Libya talks

Filed under: Business, term |

U.S. Secretary of State Hillary Clinton and British Prime Minister David Cameron have arrived for talks with France’s president ahead of a multi-nation summit over the crisis in Moammar Gadhafi’s Libya.

Clinton and Cameron were meeting with French President Nicolas Sarkozy as Gadhafi’s forces swarmed into the one-time rebel stronghold of Benghazi _ apparently ignoring an announced cease-fire by Gadhafi’s regime.

The Saturday meeting took shape further shortly before it was to begin: The African Union was not attending, as had previously been expected, while the Iraqi foreign minister was among those announced as late participants.

French officials have said that they expect military action could begin within hours after the meeting _ but the outcome remained uncertain and it was not clear what effect developments on the ground might have.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

PARIS (AP) _ Leaders from the Arab world, the United States and other Western powers are holding urgent talks in Paris Saturday over possible military action against Libyan leader Moammar Gadhafi’s forces.

France’s ambassador to the United Nations, Gerard Araud, told BBC Newsnight that he expected military action to begin within hours of the meeting, which follows a U.N. Security Council resolution that authorizes the international community to act to defend civilians in Libya.

France is hosting the hastily organized summit in response to the onslaught by Gadhafi’s artillery, warplanes and tanks against rebel-controlled areas. France, with Britain, was among the leading voices behind a muscular U.N. Security Council resolution against Libya adopted Thursday.

Meanwhile NATO’s top decision-making body was meeting in emergency session to review military plans for a no-fly zone over Libya.

The North Atlantic Council is expected to issue the order to launch the operation in coming days. Officials said the military staff was putting the final touches on plans to deploy dozens of fighter-bombers, tankers, helicopters and surveillance planes to several air bases along Europe’s southern rim.

The consultations were adjourned soon after they started to await the results of the summit in Paris.

Moammar Gadhafi’s government declared a cease-fire Friday in an attempt to outmaneuver Western military intervention, but witnesses said shells were raining down well after the announcement. Early Saturday, a plane was shot down over the rebel stronghold of Benghazi.

French President Nicolas Sarkozy is expected to host leaders including Angela Merkel of Germany and Britain’s David Cameron, as well as U.S. Secretary of State Hillary Clinton. Arab League Secretary-General Amr Moussa and U.N. Secretary-General Ban Ki-Moon are also expected, along with the Qatari emir, Sheikh Hamad Bin Khalifa Al Thani, and the Saudi and Emirates foreign ministers.

Sarkozy, Clinton and Cameron were scheduled to hold trilateral talks before and after the summit.

On Friday, Britain and France took the lead in plans to enforce a no-fly zone over Libya. Paris said it was ready for possible military action, without specifying, while Britain ordered warplanes to the Mediterranean.

“The clock is ticking and we must be ready to act quickly,” Cameron said Friday, adding that Gadhafi must prove he was serious about a cease-fire to avoid military strikes.

With Libya insisting it is holding to the cease-fire, and the United States keeping quiet about its own military role, questions remain about when any action will come _ and what its consequences would be.

In a joint statement to Gadhafi late Friday, the United States, Britain and France _ backed by unspecified Arab countries _ said a cease-fire must begin “immediately” in Libya, the French presidential palace said.

The statement called on Gadhafi to end his troops’ advance toward Benghazi, and pull them out of Misrata, Adjadbiya and Zawiya, and called for the restoration of water, electricity and gas services in all areas. It said Libya’s population must be able to receive humanitarian aid.

NATO leaders met Friday to work out the details of a flight ban over Libya, after the U.N. Security Council gave the international community the surprisingly wide mandate to defend civilians under attack by loyalist forces.

The United States has a host of forces and ships in the area, including submarines, destroyers, amphibious assault and landing ships. U.S. officials have not specified the possible American role _ although Obama said Friday that no U.S. ground troops would be involved.

NATO surveillance AWACS planes flying off the Libyan coast are already providing 24-hour coverage of the situation in the air and on the battlefields. Analysts said no-fly zone aircraft would be flying from NATO bases such as in Sigonella, Sicily, Aviano in northern Italy, Istres in southern France, and Ventiseri-Solenzara in Corsica.

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03/17/2011 (7:16 pm)

Balancing the books a delicate act for ballet

Filed under: Business, technology |

When ballet lovers take their seats on Thursday night for the opening of Onegin, they probably don

03/16/2011 (8:56 am)

UN supporters introduce no-fly resolution at UN

Filed under: marketing, technology |

Security Council supporters of a no-fly zone over Libya were working Wednesday to persuade the group’s more reluctant members to back a U.N. resolution aimed at stopping Moammar Gadhafi’s planes from bombing civilians.

While Russia and Germany were expressing doubts, France was pushing for rapid action with Foreign Minister Alain Juppe saying in Paris that several Arab countries have pledged to participate in possible military action in the North African country.

Juppe wrote on his blog Wednesday that France and Britain have sought targeted air strikes for two weeks and said two conditions are necessary: a Security Council mandate for such force and “effective” participation by Arab states. “Several Arab countries assured us that they will participate,” Juppe wrote, without elaborating.

Lingering doubts among some members over a no-fly zone were immediately apparent after a proposed resolution was introduced Tuesday afternoon in the 15-member U.N. Security Council. Britain’s U.N. Ambassador Mark Lyall Grant said council members will discuss the proposed resolution “paragraph by paragraph” when they meet Wednesday because members had “a number of questions about the text.”

Chinese Ambassador Li Baodong said issues to be clarified include whether the ban would apply to all flights countrywide. Indian Ambassador Hardeep Singh Puri said he and other members need to know what countries would contribute the assets for enforcing a no-fly zone.

Lebanon, the Security Council’s only Arab member, introduced the no-fly provisions of the draft resolution _ strongly endorsed by the Arab League _ to council members at a closed meeting Tuesday afternoon. The Arabs are strongly backed by France and Britain, which drafted elements of a no-fly resolution last week.

“We are deeply distressed by the fact that things are worsening on the ground, that the Gadhafi forces are moving forward extremely quickly, and that this council has not yet reacted,” France’s U.N. Ambassador Gerard Araud told reporters as he headed into the council’s Tuesday meeting.

France and Britain failed to win support for a no-fly zone during a two-day meeting of Group of Eight foreign ministers in Paris earlier Tuesday and the G-8’s final communique did not mention a flight ban. It instead warned of unspecified “dire consequences” if Gadhafi did not honor the Libyan people’s claim to basic rights, freedom of expression, and representative government.

The halting efforts to raise pressure against Gadhafi’s 42-year regime came as his forces used tanks, warships and artillery Tuesday to gain ground near the rebels’ base in eastern Libya.

Lebanon’s U.N. Ambassador Nawaf Salam said the section on the no-fly zone was drafted in consultation with Libya’s U payday loans in one hour.N. diplomats, who have denounced Gadhafi and back opposition forces. Salam said another section on “the strengthening and widening of sanctions” on Libya was introduced by Britain.

The Arab League called Saturday on the U.N. “to shoulder its responsibility … to impose a no-fly zone over the movement of Libyan military planes and to create safe zones in the places vulnerable to airstrikes.”

Salam said Lebanon has asked Libya’s U.N. Mission to identify specific areas where civilians would need protection and safe passage corridors.

The Security Council on Feb. 26 imposed an arms embargo on Libya and ordered all countries to freeze assets and ban travel for Gadhafi and some close associates. It also referred the regime’s deadly crackdown on protesters to the International Criminal Court, for an investigation of possible crimes against humanity.

U.N. diplomats said the proposed new resolution would call for more muscular enforcement of the arms embargo, add names of individuals, companies and other entities to the list of those subject to travel bans and asset freezes, and ban commercial flights bringing arms or mercenaries into Libya.

The draft resolution would also authorize states to work together to provide humanitarian assistance and take necessary measures to protect civilians. It also would establish a panel of experts to monitor implementation, the diplomats said, speaking on condition of anonymity because the text has not been released.

Russia’s Foreign Minister Sergey Lavrov said at the G-8 that his country wants more details and clarity from the Arab League about its proposals for Libya before approving any military intervention, and German Foreign Minister Guido Westerwelle said his country was “very skeptical” about military action.

Lebanon’s Salam insisted that a no-fly zone “in no way could qualify as a foreign intervention.”

“I would hope that the establishment of a no-fly zone would have a deterrent effect on the Gadhafi regime, not to fly its airplanes to attack civilian areas,” he said.

The White House said President Barack Obama on Tuesday instructed his national security team to “fully engage” in discussions at the United Nations, NATO and with countries and organizations in the region when reviewing options to increase pressure on Gadhafi.

Obama and his top national security aides have been cautious with calls for a no-fly zone, which the Pentagon has described as a step tantamount to war. The U.S. fears it could further strain its already stretched military and entangle the country in an expensive and messy conflict.

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03/14/2011 (1:32 pm)

France, Britain pushing for action on Libya

Filed under: Loans, Uncategorized |

France and Britain stepped up calls Monday for other world powers to isolate Libya’s Moammar Gadhafi with a no-fly zone, amid diplomatic differences over how much backing to give Libyan rebels.

The accelerated push came as U.S. Secretary of State Hillary Clinton and other top diplomats from the Group of Eight prominent world economies were gathering in Paris for a previously planned foreign ministers meeting.

France, which has angered some allies by offering diplomatic recognition to Libya’s opposition, said it is urgent to act against “barbarity” by Gadhafi’s forces.

French President Nicolas Sarkozy and British Prime Minister David Cameron, in an letter to the EU president last week, said they supported “continued planning to be ready for all possible contingencies” in the Libyan situation _ “including a no-fly zone or other options against air attacks.”

On Monday, Cameron said that time was of essence in responding to the situation in Libya, and NATO was drawing up contingency plans for a no-fly zone.

“Every day Gadhafi is brutalizing his own people. Time is of the essence,” Cameron told the parliament in London. “There should be no let up in the pressure we put on this regime.”

He added: “No one is talking about invasion or boots on the ground.”

Insurgents who control much of eastern Libya have called for a no-fly zone, as forces loyal to Gadhafi strike back with tanks and planes _ pressing eastward against the rebels Monday.

British Foreign Secretary William Hague said Libyans will face a “nightmare” if Gadhafi regains control, insisting that the world is “reaching a point of decision” on whether foreign forces will impose a no-fly zone.

Hague also said he “wouldn’t exclude” amending a ban on arms exports to Libya so that weapons could be shipped to the rebels _ but that talks with allies on that are needed.

The Arab League has backed a no-fly zone, and Hague told BBC Radio Monday that “in cases of great, overwhelming humanitarian need” one could be enforced without a U.N. Security Council resolution.

French Foreign Ministry spokesman Bernard Valero, speaking to The Associated Press, pointed to an “urgency” to act because violence against civilians was increasing in Libya. He said France also was working on a list of sanctions against Gadhafi’s regime at the U.N. Security Council.

Other countries, including the United States, have been more cautious.

Germany’s foreign minister, Guido Westerwelle, acknowledged that the Arab League supported a U.N.-approved no-fly zone, “but at the same time, it rejected any form of foreign, international intervention.”

“These are questions that have to be discussed, these are not clear signals being sent, because a no-fly zone would be a military intervention,” he said in Berlin.

Westerwelle said the Arab League would need to “not just support but also participate” in any action beyond targeted sanctions. He also stressed that Germany and other European countries don’t want to be drawn into a long-lasting war in north Africa.

Italy, a G-8 member that has close economic ties to Libya, has said it would support a no-fly zone, but is against unilateral actions by its allies. Before flying to Paris, Foreign Minister Franco Frattini said Italy believes the Libyan crisis requires “an immediate cease-fire accompanied by international measures.”

He echoed the sense of urgency.

“If these decisions come too late, they nullify the goal of preventing Gadhafi from carrying out a massacre,” Frattini said. A no-fly zone could be a deterrent, he said.

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03/13/2011 (3:04 am)

FDA’s fast-track approval of Makena could backfire on KV

Filed under: Loans, management |

In approving local drug maker KV Pharmaceutical Co.’s new prenatal drug, Makena, the Food and Drug Administration took a calculated risk

03/11/2011 (7:28 am)

UN: Ouattara’s return to Ivory Coast ‘complex’

Filed under: marketing, online |

The top U.N. envoy in Ivory Coast said Friday that getting internationally recognized president Alassane Ouattara back home will be “more complex than you can imagine” after the man clinging to power imposed a no-fly zone for U.N. aircraft.

Choi Young-jin made the comment to reporters Friday as he also expressed alarm about a growing number of attacks against U.N. personnel in the volatile West African country that was plunged into political chaos after the disputed Nov. 28 election.

More than 400 people have been killed in violence, most of them supporters of the internationally recognized winner Ouattara. He left the country this week for the first time since the crisis began, and sitting president Laurent Gbagbo subsequently ordered U.N. aircraft out of Ivorian air space.

The decision was ignored by the U.N., which continued to patrol the city from the air, but the timing of the announcement appeared to indicate that Gbagbo may try to prevent Ouattara from returning.

Ouattara met with African leaders Thursday in Ethiopia, where the African Union reaffirmed him as the legal president of Ivory Coast and said the country’s highest court now must swear him in.

It’s unclear how the AU plans to force Gbagbo to step down. He has refused similar calls from other world and regional bodies, including the U.N. Security Council and the regional bloc ECOWAS, which had warned that it would use all the means necessary, including an armed intervention to force Gbagbo out.

On Friday, Choi said that Ivorians have been directly shooting at U.N. peacekeepers, while other U.N. personnel have been kidnapped and hijacked. He blamed the attacks on propaganda from Gbagbo supporters. Gbagbo unsuccessfully ordered thousands of peacekeepers to leave after the U.N. certified results showing Ouattara won the election.

“I strongly warn those who invent and propagate those hate stories: Do not have illusion that you can do it with impunity,” Choi said. “UNOCI is currently gathering information documenting your acts, which constitute war crimes. We will have all the evidence allowing the judge to make you accountable.”

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