Scott Derrickson to direct feature adaptation of hit video game “Deus Ex: Human Revolution”
















LOS ANGELES (TheWrap.com) – Scott Derrickson (“Sinister,” “The Exorcism of Emily Rose“) has signed on to direct the big screen adaptation of the hit Square Enix video game, “Deus Ex: Human Revolution,” for CBS Films, the company announced on Thursday.


Derrickson will also write the screenplay for the film with C. Robert Cargill (“Sinister.”)













Roy Lee and Adrian Askarieh are attached to produce the film, with John P. Middleton serving as the executive producer.


Set in the near future, when dramatic advances in science, specifically human augmentation, have triggered a technological renaissance, “Deus Ex: Human Revolution” follows Adam Jensen, an ex-SWAT security specialist who must embrace mechanical augments in order to unravel a global conspiracy.


“‘Deus Ex’ is a phenomenal cyberpunk game with soul and intelligence,” said Derrickson. “By combining amazing action and tension with big, philosophical ideas, ‘Deus Ex‘ is smart, ballsy, and will make one hell of a movie. Cargill and I can’t wait to bring it to the big screen.”


The “Deus Ex” franchise was originally introduced in June 2000. Its latest entry, “Deus Ex: Human Revolution,” launched in 2011, ranked number one across global sales charts and earned over 100 industry awards.


Developed by Eidos-Montréal and published by Square Enix, “Deus Ex: Human Revolution” will serve as the primary template for the film.


Derrickson and Cargill, pictured above, are represented by WME and managed by Brillstein Entertainment Partners.


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“Hitchcock” trains lens on the love story of Alfred and Alma
















NEW YORK (Reuters) – She won Oscar gold for her uncanny performance as Britain’s Queen Elizabeth, but Helen Mirren‘s latest portrayal finds her as the power behind the throne — or, more precisely, the director’s chair.


In “Hitchcock,” Mirren stars opposite Anthony Hopkins as legendary director Alfred Hitchcock’s devoted wife Alma Reville, and early buzz has her a contender for another Oscar nomination.













The film, which opens in limited release on Friday, explores the domestic life of one of Hollywood‘s most iconic and revered directors, set during the days of his struggle to put the ground-breaking 1960 classic, “Psycho” on the silver screen.


Toggling back and forth between his on-set battles with censors and his cast including Janet Leigh (Scarlett Johansson), Vera Miles (Jessica Biel) and Tony Perkins (James D’Arcy), and his strained relationship with Alma as she copes with his well-documented obsession with his ravishing leading ladies, “Hitchcock” treats film fans to a glimpse of bygone Hollywood.


But it paints a more nuanced and sympathetic portrait of the director Hopkins called “a damaged man” than the recent television film “The Girl,” which dramatized the hell Hitchcock put Tippi Hedren through during filming of “The Birds.”


“It’s a great role,” Mirren said of Alma, a film editor and assistant director in her own right who ceded the spotlight to her husband, but as the film makes clear was involved in virtually every aspect of his films and even re-cut “Psycho” into the masterpiece it is known as today.


“So, you don’t turn that down,” she told Reuters.


Having won her Oscar as one of the world’s most famous women, Mirren said she finds herself drawn to “the ones I don’t know anything about, like Alma. Those are the most fun.”


With little to go on, Mirren said she turned to the 2003 book “Alma Hitchcock: The Woman Behind the Man,” by the couple’s daughter Patricia, who also acted in several Hitchcock films.


“I’m not that much of a film buff that I knew about Alma, and I had no idea about Hitchcock‘s private life,” she said, adding the book aimed “to bring her mother out of the shadows.”


HITCH THE BRAND


By all accounts making the movie about the movies was a joy, with Mirren and Hopkins co-starring in their first film together under first-time director Sacha Gervasi (“Anvil: The Story of Anvil”), who fixed a script that had made the rounds.


Hopkins described it as the “most fun” since his Oscar-winning role in the thriller “Silence of the Lambs.”


Mirren recalled rushing off to work each day: “I couldn’t wait.” And it helped that the actors have the same approach.


“There’s no mystery to it … They talk about chemistry, and Helen agrees with me, there’s no such thing. You know your part, she knows hers, and off you go, hope it works,” Hopkins said.


But Mirren and Hopkins, who is also being touted for an Oscar nomination, parted ways when speculating on how the auteur director, who never won an Oscar during five decades of work, would have fared in the Hollywood of today.


“He would have despaired,” Hopkins said. “It would have been anathema to him. That kind of artistry is gone.”


Corporate control means “you have eight or nine producers on the set, everyone’s got a say in the scripts, and even craft services!”


But Mirren differed, imagining “he’d do brilliantly well.”


“He was a great salesman, and the Hollywood of today is so much about being a salesman and being able to sell yourself as a brand,” she explained. “He did that brilliantly. I think the two of them sold Hitch. Hitch was the faceman, he was the brand.”


“Also,” she added, “his filmmaking techniques would be incredibly successful,” given the technological advances since Hitchcock’s death in 1980.


Hitchcock was on a roll in his early 60s, with his “Psycho” follow-up, the shocking thriller “The Birds” becoming a hit and a much-loved classic. But none of the handful of films he made afterward attained their iconic status.


Mirren, 67, by contrast, truly hit her stride during her 40s, despite a steady two-decade career by that point.


Starting with the TV show “Prime Suspect” to the films “Gosford Park,” “The Queen” and “The Last Station,” she racked up four Oscar nominations and a mantel full of Emmys, which raises a question about the validity of complaints that Hollywood has no use for actresses over 40.


“I think what has changed is, the world around has changed,” Mirren said when reflecting on her success and acclaim.


“I was lucky that I hit my 40s just as the world around me was changing. Twenty years before I never would have been cast in ‘Prime Suspect’ because there were no women inspectors.”


And so, she looks forward.


“As I’ve carried on, my God, 20 years ago it was inconceivable that you’d have a female president of the United States,” she said.


“Now, the next president of America may well be a woman, and if there is a female president, that means that if a movie comes along, and there’s the president of America …” She laughs.


“You know what I mean?”


(Editing by Christine Kearney)


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Xoma’s drug combo lowers high blood pressure in late-stage study
















(Reuters) – Xoma Corp said its experimental combination of two drugs met the main goal of lowering hypertension better than a treatment based on either of the drugs alone in a late-stage study, sending the biotechnology company‘s shares up 6 percent.


The combination of perindopril arginine and amlodipine besylate showed statistically significant reduction in sitting systolic and diastolic blood pressure after six weeks of treatment, compared with either drugs alone, Xoma said.













The company is likely to file a new drug application for the combination in 2013, said RBC Capital Markets analyst Adnan Butt.


Xoma said it does not plan to market the product directly but intends to sublicense it to a third party.


“The next thing we expect is for the company to get a partnership for this drug. The terms could include an upfront payment and possible royalties on product sales,” Butt said.


He added that the result would be a modest positive but the key driver is the company’s experimental anti-inflammatory drug gevokizumab. The drug is being tested in a late-stage study for treatment of non-infectious uveitis, an inflammation of the middle layer of the eye.


Xoma’s partner, French pharmaceutical company Les Laboratoires Servier, already markets the combination under the trade name Coveram in 91 countries outside the United States.


Perindopril and amlodipine each target different cardiovascular functions and are, therefore, used in combination to treat high blood pressure, Xoma said. The company bought the rights to Servier’s perindopril franchise in January.


The combination was well tolerated in the trial, and there were no serious adverse events, Xoma said.


Shares of the company rose to $ 2.84 in extended trade. They closed nearly 3 percent higher at $ 2.68 on Tuesday on the Nasdaq.


(Reporting By Vrinda Manocha in Bangalore; Editing by Sriraj Kalluvila)


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Asia stocks fall after Greece aid delayed
















BANGKOK (AP) — Asian stock markets were mostly lower Wednesday, shedding morning gains after European Union officials failed to release a loan payment to debt-mired Greece and postposed further action until next week.


European finance ministers adjourned a meeting in Brussels without granting Greece the next installment of an emergency bailout loan that has been on hold for months. The €31.5 billion ($ 40 billion) loan is needed so that Athens can pay its bills and avoid running out of cash.













The aid is being delayed until officials can resolve a dispute over whether to give Greece an extra two years to get to a point where it can independently raise funds on bond markets. Greece has been locked out of the international long-term debt market since 2010 and thus relies on rescue loans.


The reform program attached to the bailout was to steadily reduce Greece’s debt to 120 percent of its annual gross domestic product by a 2020 deadline. But some officials say the deadline may have been too ambitious and that Greece needs two more years.


South Korea’s Kospi fell 0.4 percent to 1,882.62 after a higher open. Meanwhile, Australia’s S&P/ASX 200 fell further into negative territory, down 0.3 percent at 4,371.10. Benchmarks in Thailand, New Zealand and Taiwan also were lower.


But Japan’s Nikkei 225 index rose 0.4 percent to 9,178.05, with export shares enjoying the benefits of a weakened yen. Hong Kong‘s Hang Seng added 0.2 percent to 21,272.48. Benchmarks in India and the Philippines also rose.


Mainland China‘s Shanghai Composite Index briefly dipped below 2,000, an important psychological mark. The benchmark hasn’t gone above 2,100 since July 6.


The benchmark “has been hovering around 2,000 for such a long time that investors have lost interest,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong. “The weakness in China‘s market is dragging down the Hong Kong market.”


The losses reflected disappointment among investors hoping to see changes in how the stock market is run now that China has new leaders. But reforms have so far not materialized.


“There has been too much resistance to cleaning up the malpractice” in mainland Chinese markets, Lun said. “Investors have lost confidence.”


Among individual stocks, Japanese snack food maker Calbee dropped 3.7 percent after announcing the recall of millions of bags of potato chips due to possible contamination with glass fragments.


Wall Street stocks finished roughly flat Tuesday after a warning from the Federal Reserve chairman about the “fiscal cliff” of tax increases and government spending cuts set to take effect Jan. 1.


The Dow Jones industrial average fell 0.1 percent to 12,788.51. The Standard & Poor’s 500 index rose 0.1 percent to 1,387.81. The Nasdaq composite index inched up to 2,916.68.


In a speech in New York on Tuesday, Bernanke urged Congress and the Obama administration to strike a budget deal to avert the combination of tax increases and spending cuts that will automatically take effect in January if nothing is done.


“This overshadowed some positive economic data which came in the form of better-than-expected housing starts,” said Stan Shamu of IG Markets in Melbourne in a market commentary.


Benchmark oil for January delivery was down 1 cent at $ 86.74 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $ 2.53 to close at $ 86.75 a barrel on Tuesday, falling sharply after signs that Israel and Hamas are close to putting a halt to fighting that has lasted nearly a week.


In currencies, the dollar rose to 81.79 yen from 81.71 yen late Tuesday in New York. The euro fell to $ 1.2747 from $ 1.2807.


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AP Exclusive: Syrian rebels seize base, arms trove
















BASE OF THE 46TH REGIMENT, Syria (AP) — After a nearly two-month siege, Syrian rebels overwhelmed a large military base in the north of the country and made off with tanks, armored vehicles and truckloads of munitions that rebel leaders say will give them a boost in the fight against President Bashar Assad‘s army.


The rebel capture of the base of the Syrian army’s 46th Regiment is a sharp blow to the government’s efforts to roll back rebels gains and shows a rising level of organization among opposition forces.













More important than the base’s fall, however, are the weapons the rebels found inside.


At a rebel base where the much of the haul was taken after the weekend victory, rebel fighters unloaded half a dozen large trucks piled high with green boxes full of mortars, artillery shells, rockets and rifles taken from the base. Parked nearby were five tanks, two armored vehicles, two rocket launchers and two heavy-caliber artillery cannons.


Around 20 Syrian soldiers captured in the battle were put to work carrying munitions boxes, barefoot and stripped to the waist. Rebels refused to let reporters talk to them or see where they were being held.


“There has never been a battle before with this much booty,” said Gen. Ahmad al-Faj of the rebels Joint Command, a grouping of rebel brigades that was involved in the siege. Speaking on Monday at the rebel base, set up in a former customs office at Syria’s Bab al-Hawa border crossing with Turkey, he said the haul would be distributed among the brigades.


For months, Syria’s rebels have gradually been destroying government checkpoints and taking over towns in the northern provinces of Idlib and Aleppo along the Turkish border.


Rebel fighters say that weapons seized in such battles have been essential to their transformation from ragtag brigades into forces capable of challenging Assad’s professional army. Cross-border arms smuggling from Turkey and Iraq has also played a role, although the most common complaint among rebel fighters is that they lack ammunition and heavy weapons, munitions and anti-aircraft weapons to fight Assad’s air force.


It is unclear how many government bases the rebels have overrun during the 20-month conflict, mostly because they rarely try to hold captured facilities. Staying in the captured bases would make them sitting ducks for regime airstrikes.


“Their strategy is to hit and run,” said Elias Hanna, a retired Lebanese army general and Beirut-based strategic analyst. “They’re trying to hurt the regime where it hurts by bisecting and compartmentalizing Syria in order to dilute the regime’s power.”


The 46th Regiment was a major pillar of the government’s force near the northern city of Aleppo, Syria’s economic hub, and its fall cuts a major supply line to the regime’s army, Hanna said. Government forces have been battling rebels for months over control of Aleppo.


“It’s a tactical turning point that may lead to a strategic shift,” he said.


At the 46th Regiment’s base, about 25 kilometers (15 miles) west of Aleppo, the main three-story command building showed signs of the battle — its walls punctured apparently from rebel rocket attacks. The smaller barracks buildings scattered around the compound, about 2.6 square kilometers (1 square mile) in size, had been looted, with mattresses overturned. A number of buildings had been torched.


Reporters from The Associated Press who visited the base late Monday saw no trace of the government troops who had been defending it — other than the dead bodies of seven soldiers.


Two of them, in camouflage uniforms, lay outside the command building. One of them was missing his head, apparently blown off in an explosion.


The rest were in a nearby clinic. Four dead soldiers were on stretchers set on the floor, one with a large gash in his arm, another with what appeared to be a large shrapnel hole in the back of his head. The last lay on a gurney in another room, his arms and legs bandaged, a bullet hole in his cheek and a splatter of blood on the wall and ceiling behind him as if he had been shot where he lay.


It could not be determined how or when the soldiers had been killed.


The final assault that took the base came after more than 50 days of siege that left the soldiers inside demoralized, according to fighters who took part.


Working together and communicating by radio, a number of different rebels groups divided up the area surrounding the base and each cut the regime’s supply lines, said Abdullah Qadi, a rebel field commander. Over the course of the siege, dozens of soldiers defected, some telling the rebels that those inside were short of food, Qadi said.


The rebels decided to attack Saturday afternoon when they felt the soldiers inside were weak and the rebels had enough ammunition to finish the battle, Qadi said. The battle was over by nightfall on Sunday. Seven rebel fighters were killed in the battle, said al-Faj of the rebels’ Joint Command. Other rebel leaders gave similar numbers.


It remains unclear how many soldiers remained in the base when the rebels launched their attack and what happened to them.


Al-Faj said all soldiers inside were either killed or captured. He said he didn’t know how many were killed, but that the rebels had taken about 50 prisoners, all of whom would be tried in a rebel court. Aside from the 20 prisoners seen at the rebel’s Bab al-Hawa base, the AP was unable to see any other captured soldiers.


The Syrian government does not respond to requests for comment on military affairs and said nothing about the base’s capture. It says the rebels are terrorists backed by foreign powers that seek to destroy the country.


Disorganization has plagued the Syrian opposition since the start of the anti-Assad uprising in March 2011, with exile groups pleading for international help even when they have no control over those fighting inside of Syria.


A newly formed Syrian opposition coalition received a boost Tuesday, when Britain officially recognized it as the sole representative of the Syrian people.


The National Coalition of the Syrian Revolutionary and Opposition Forces was formed in the Gulf nation of Qatar on Oct. 11 under pressure from the United States for a stronger, more united opposition body to serve as a counterweight to more extremist forces.


British Foreign Secretary William Hague said Tuesday the body’s members gave assurances to be a “moderate political force committed to democracy” and that the West must “support them and deny space to extremist groups.”


The United States and the European Union have both spoken well of the body but stopped short of offering it full recognition.


Key to the body’s success will be its ability to build ties with the disparate rebel groups fighting inside Syria. Many rebel leaders say they don’t recognize the new body, and a group of extremist Islamist factions on Monday rejected it, announcing that they had formed an “Islamic state” in Aleppo.


Anti-regime activists say nearly 40,000 people have been killed since Syria’s crisis started 20 months ago.


___


Associated Press write Elizabeth Kennedy contributed reporting from Beirut, Lebanon.


Middle East News Headlines – Yahoo! News



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Yahoo shares reach 18-month high as investors warm to new CEO
















SAN FRANCISCO (Reuters) – Yahoo Inc shares reached their highest level in a year and a half, as investor confidence grows that new Chief Executive Marissa Mayer can pull off a comeback that eluded three of her predecessors.


The Internet pioneer has yet to actually provide Wall Street with any hard evidence that its business is turning a corner – and she has warned that it will be a lengthy job – but investor faith in the ex-Google executive is running high.













Hedge funds Tiger Global Management and Greenlight Capital Management recently disclosed large stakes in Yahoo, accumulated during the third quarter.


“Money managers are staring to want to own this name again,” said Colin Gillis, an analyst with BGC Partners.


“For the amount of traffic they have, and the assets they have, they should be able to squeeze some value out of that,” Gillis said, referring to Yahoo. With Mayer at the helm, he said, Yahoo has “finally got somebody who the market believes can do that.”


Gravity Capital Management’s Adam Seessel said that Mayer’s recruitment of various Google Inc employees, including recently hired Yahoo Chief Operating Officer Henrique de Castro, has also helped burnish Yahoo‘s image.


“What the market is seeing is not (financial) numbers so much as they’re seeing people voting with their feet, people moving from Google to Yahoo,” said Seessel, whose firm owns Yahoo shares.


“All these people from Google wouldn’t be following her if they didn’t think that she didn’t have some good cards to play,” he said.


Shares of Yahoo finished Monday’s regular trading session up 2.8 percent at $ 18.36, amid a broad market rally. The last time Yahoo traded above $ 18.30 was in May 2011.


Yahoo ranks among the world’s most popular websites, with roughly 700 million monthly visitors. But the company’s revenue has eroded, amid competition from Google and Facebook and an industry-wide change in the online advertising market that has compressed prices for the online display ads that are key to its business.


The company has been rocked by internal turmoil: CEO Carol Bartz was fired over the phone and CEO Scott Thompson left after less than six months on the job due to questions about his academic credentials. Mayer, Google‘s first female engineer, took the top job at Yahoo in July.


In a conference call with investors last month, Mayer said that making Yahoo‘s online products more smartphone-friendly was her top priority.


Investors and analysts on Monday dismissed a weekend report in The Telegraph that said Yahoo was in discussions with Facebook about a search deal, particularly after Facebook issued a statement denying any such talks.


“People expect a better search experience on Facebook. We are working on improvements to better meet those expectations but are not in talks to enter into a new search partnership,” Facebook said in a statement on Monday.


Still, analysts say that search represents one of the key opportunities that Mayer will focus on as she moves to revive Yahoo‘s fortunes. A 2010 deal struck by former CEO Bartz outsourced the back-end technology of Yahoo‘s search to Microsoft Corp, but deal has failed to deliver an expected boost to Yahoo‘s search advertising revenue.


“Certainly search could be resuscitated,” said Gabelli & Company analyst Brett Harriss, who said Yahoo should be worth $ 26 a share based on a six-times multiple of its earnings before interest, taxes, depreciation and amortization.


“It was a disaster for a year and a half,” said Harris. “Everybody hated the board, you had a while of transition where you went through three or four CEOs quickly.”


Now, he said, there’s finally a CEO “that investors can believe in.”


(Reporting By Alexei Oreskovic; Editing by Steve Orlofsky)


Tech News Headlines – Yahoo! News



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International Emmys honor Lear, Alda, South American shows
















NEW YORK (Reuters) – Television legend Norman Lear and veteran actor Alan Alda received special honors at the International Emmy Awards on Monday, while programming from South America dominated the competition, with Argentina and Brazil each winning two Emmys.


Lear, best known as creator of the ground-breaking 1970s hit comedy “All in the Family,” which premiered during a time of social upheaval and tackled issues such as race and women’s rights, said “the world will, and needs to, come together through the arts” as he accepted the honor.













The producer and writer received a special 40th anniversary Founders Award from the International Academy of Television Arts & Sciences, as did Alda, star of the long-running Korean-war set comedy, M*A*S*H* about doctors on the front lines.


Alda paid tribute to “the men and women in the hospital tents,” referring to real-life medical personnel who struggle to treat war injured, who he noted usually go unmentioned at award shows.


“Glee” creator Ryan Murphy received the annual International Founders Award, which was presented by Oscar-winner Jessica Lange, a star of his current series “American Horror Story.”


Argentina won both acting categories, with honors going to actress Cristina Banegas for the dramatic series “Television x La Inclusion,” in which she plays the mother of an ailing child waging battle with health insurers; while Dario Grandinetti picked up the best actor award for his performance as a racist taxi driver in the same series.


It marked the first time both honors were won by actors from the same program.


Brazil scored wins for comedy series for “The Invisible Woman,” while “The Illusionist” was named outstanding telenovela.


In bestowing its prizes, the Emmys, which honor television produced outside the United States, extended their reach after years of domination and even sweeps by the United Kingdom, which this year won two, for best TV movie or miniseries “Black Mirror” and best documentary “Terry Pratchett: Choosing to Die.”


France, Germany and Australia each won one Emmy.


France took the best drama series prize for “Braquo season 2,” while Germany’s “Song of War” won for outstanding arts programming. The Australian franchise of the adventure competition “The Amazing Race” won the award for non-scripted, or reality, television.


The International Emmy directorate award went to Korean Broadcasting System president and CEO Dr. Kim In-Kyu.


Presenters at the ceremony, hosted by recently retired talk show host Regis Philbin, also included Victor Garber, Donnie Wahlberg, Cheyenne Jackson, Telenovela actress Edith González, German TV personalities Joko and Klaas and Indian actress Prerna Wanvari.


(Editing by Chris Michaud and Todd Eastham)


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Advisory panel moves to make HIV testing routine
















CHICAGO (Reuters) – An influential U.S. panel has called for routine HIV screening for all Americans aged 15 to 65, a change that could help reduce some of the stigma about getting tested for the sexually transmitted infection that causes AIDS.


The draft recommendations, released on Monday by the U.S. Preventive Services Task Force, a government-backed group of doctors and scientists, also called for routine HIV testing for all pregnant women.













“The prior recommendations were for screening high-risk adults and adolescents,” said task force member Dr Douglas Owens who is a medical professor at Stanford University.


“The current recommendation is for screening everyone, regardless of their risk,” said Owens, who is also affiliated with the Veterans Affairs Palo Alto Health Care System in California.


Nearly 1.2 million people in the United States are infected with HIV, yet 20 to 25 percent of them do not know it.


“This marks a monumental shift in how HIV in the United States can be prevented, diagnosed and treated,” said Carl Schmid, deputy executive director of The AIDS Institute, an AIDS advocacy group.


The new guidelines by the task force are expected to affect the reimbursement of HIV testing, removing one of the barriers to the tests, Schmid’s group said in a statement.


Under the Affordable Care Act, insurers are required to cover preventive services that are recommended by the task force. The change brings the group more in line with the U.S. Centers for Disease Control and Prevention, which in 2006 recommended HIV testing for everyone between 13 and 64.


The recommendations, which had been expected, are based on the latest evidence showing the benefits of early HIV testing and treatment. Recent studies have shown that HIV treatment can reduce transmission of the virus to an uninfected partner by as much as 96 percent.


“Treatment has two benefits. One is to the person who has HIV, and also treatment helps prevent transmission and protects a person’s partner,” Owens said.


Dr. Jeffrey Lennox, a professor of medicine at Emory University School of Medicine and chief of infectious disease at Grady Memorial Hospital, an inner-city hospital in Atlanta, said under the current recommendations, many doctors simply fail to offer the tests.


“In our practice, we see patients every week who are newly diagnosed with HIV – people who have seen many physicians in the past 10 years and none of them had ever offered testing,” Lennox said.


Many of these patients have far advanced disease, that could have been caught earlier and successfully treated.


Owens said he hopes the change will make it easier for doctors to offer testing.


“You are offering this to adolescents and adults and everyone. The conversation you have with people is likely to be easier,” he said.


The draft recommendations are based on a study of the most recent evidence on the risks and benefits of HIV testing published in the Annals of Internal Medicine.


The guidelines will be available for a 30-day public comment period before final recommendations are released, likely sometime next year.


(Reporting by Julie Steenhuysen; Editing by Jackie Frank)


Sexual Health News Headlines – Yahoo! News



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Five Steps to Fix Shadow Banking
















International regulators did the world a service by reporting that shadow banking remains an enormous force in the global financial system. Firms in the sector had $ 67 trillion in assets last year, the Financial Stability Board has just reported. But given the importance of the lightly monitored companies, the regulators’ prescriptions seem cautious.


Shadow banking is lending outside the conventional banking system, done by firms such as money market mutual funds, hedge funds, and securities dealers. It’s far less regulated than lending by normal banks, which take insured deposits. Many economists and financial experts say shadow banking was responsible for triggering the global financial crisis of 2008-09.













Regulating it isn’t easy, for two very different reasons. One is that shadow banking can’t be shut down entirely because it does some real good. “Non-bank financial entities can … be sources of long-term and short-term credit to businesses and households,” the Financial Stability Board wrote in a report released on Nov. 18 (PDF). The second reason is that the sector has political muscle. “We’re already seeing a contest of wills” over attempts to tighten regulation, says Erik Gerding, a law professor at the University of Colorado, Boulder who specializes in banking regulation.


The board’s five-step plan to fix shadow banking, which was released in conjunction with the report on the sector’s size, didn’t exactly stick its neck out. The board is seeking comment on the plan and plans to publish final recommendations in September 2013. Here’s a boiled-down version:


1. Keep banks from being infected by problems in shadow banking. On this point, the board mostly just endorsed existing plans from the Basel Committee on Banking Supervision, which wants banks to keep thicker buffers of capital against potential losses on loans they make to shadow banking organizations.


2. Make money market mutual funds less vulnerable to runs. In the U.S., the new Financial Stability Oversight Council is continuing to press for making the funds let per-share values float in line with the value of the underlying securities, making them less rigid and breakable. The Financial Stability Board said funds should switch to floating net asset values “where workable”—a phrase that leaves room for funds to keep things as they are.


3. Put some teeth into the rules for other shadow banking organizations. The board lays out a long-term agenda for reducing risks, other than those posed by money market mutual funds. To make sure countries can’t simply ignore regulations they don’t like, the board said tougher policies should “eventually” become a “membership commitment subject to peer reviews.”


4. Regulate securitization. When it comes to bonds backed by assets such as credit-card receivables or mortgages, the board advocated greater disclosure and said countries should “converge” on the amount of risk that a securitizer must retain to make sure it has an incentive to sell only high-quality securities. But it didn’t give numerical targets.


5. Regulate securities lending and repo lending. Most of the recommendations on the businesses of loans backed by stock or bonds are standard-issue, such as making sure that the collateral posted is adequate. On the most controversial issue—the preferential treatment of repurchase agreements and securities loans in bankruptcy court, which has contributed to their explosive growth—the board said changes “may be viable theoretical options” but concluded, “they will not be pursued for now due to practical difficulties.”


Lena Komileva, chief economist of London-based G+ Economics, an investment advisory firm, described the balancing act regulators face. “Bringing shadow banking out of the shadows recognizes the systemic importance of non-bank finance for the health of the global economy,” she wrote in an e-mail. “But regulators need to apply a surgical scalpel not an ax, so that the benefit of avoiding another Lehman, AIG (AIG), or Reserve Primary Fund does not come at the cost of the long-term efficiency and productivity of the financial system.”


Businessweek.com — Top News



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Turbulence on Cuba-Italy flight leaves 30 bruised
















ROME (AP) — An airliner flying from Havana to Milan abruptly plunged some 1,000 meters (3,300 feet) when it hit unusually strong turbulence over the Atlantic on Monday, terrifying passengers and leaving some 30 people aboard with bruises and scrapes, airline officials said.


The flight continued to Milan’s Malpensa airport after the plane’s captain determined that it suffered no structural damage and two passengers who are physicians found no serious injuries, Giulio Buzzi, head of the pilots division at Neos Air, told Sky TG24 TV.













The ANSA news agency quoted bruised passenger Edoardo De Lucchi as saying meals were being served when suddenly there was “10 seconds of terror.” He recounted how plates went flying and some passengers not wearing seatbelts bounced about.


Buzzi had said that the drop measured some 3,000 meters (10,000 feet) in a cloudless sky. But Milan daily’s Corriere della Sera’s web site, quoting Neos official Davide Martini, later reported that the plane first bounced up some 500 meters (1,650 feet), then dropped some 1,000 meters (3,300 feet) to some 500 meters (1,650 feet) below the original altitude.


Europe News Headlines – Yahoo! News



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