Citing Internet Standoff, U.S. Rejects International Telecommunications Treaty





DUBAI — Talks on a proposed treaty governing international telecommunications collapsed in acrimony on Thursday when the United States rejected the agreement on the eve of its scheduled signing, citing an inability to resolve an impasse over the Internet.







Kamran Jebreili/Associated Press

Participants at the Dubai conference listened on Dec. 3 to Hamdoun Touré of the International Telecommunication Union.







“It is with a heavy heart that I have to announce that the United States must communicate that it is unable to sign the agreement in its current form,” Terry Kramer, head of the American delegation, announced moments after a final draft appeared to have been approved by a majority of nations.


The United States announcement was seconded by Canada and several European countries after nearly two weeks of talks that had often pitted Western governments against Russia, China and developing countries. The East-West and North-South divisions harked back to the cold war, even though that conflict did not stop previous agreements to connect telephone calls across the Iron Curtain.


While the proposed agreement was not set to take effect until 2015 and was not legally binding, Mr. Kramer insisted that the United States and its supporters had headed off a significant threat to the “open Internet.”


The messy end to the proceedings highlighted intractable differences of opinion over the ever-growing importance of digital communications networks as tools for personal communications, global commerce, political proselytization and even unconventional warfare.


“The word ‘Internet’ was repeated throughout this conference and I believe this is simply a recognition of the current reality — the two worlds of telecommunications and Internet are inextricably linked,” said Hamadoun Touré, secretary general of the International Telecommunication Union.


The United States has consistently maintained that the Internet should not have been mentioned in the proposed treaty, which dealt with technical matters like connecting international telephone calls, because doing so could lead to curbs on free speech and replace the existing, bottom-up form of Internet oversight with a government-led model.


“We cannot support a treaty that is not supportive of the multistakeholder model of Internet governance,” Mr. Kramer said. His announcement came moments after the telecommunication union, the United Nations agency that convened the talks here, announced that a final version of the text had been formulated.


A bloc of countries led by Russia that included China and the host nation, the United Arab Emirates, argued throughout the negotiations that the Internet was within the scope of the talks because Internet traffic traveled through telecommunications networks.


The goal of the talks, which were led by Mohamed Nasser al-Ghanim, director general of the Telecommunications Regulatory Authority of the United Arab Emirates, was to revise a document that was last updated in 1988, when the Internet was in its early stages of development.


Agreement was never going to be easy. Like most U.N. agencies, the International Telecommunication Union tries to operate by consensus, resorting to majority vote only when this fails.


The United States delegation was apparently angered by developments early Wednesday, when Russia and its allies succeeded in winning, by a mere show of hands, approval of a resolution that mentioned the Internet. The informal vote followed an attempt by Mr. Ghanim to gauge, as he put it, “the temperature of the room.”


The United States and its supporters interpreted the wording of the resolution as supporting a shift in the governance of the Internet to bring it under the regulatory framework of the telecommunication union.


The Internet is currently overseen by a loose grouping of organizations, mostly in the private sector, rather than by governments. But at least one, the Internet Corporation for Assigned Names and Numbers, operates under a contract from the United States government.


Resolutions are not officially part of the treaty wording, and Russia and its allies previously tried to include a similar clause in the actual treaty. But under a compromise, it agreed this week to withdraw that proposal and settle for the lesser measure. Even that, however, was insufficient to address the concerns of the United States and its supporters.


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Top Sichuan Official Removed in Corruption Inquiry





BEIJING — A high-ranking Communist Party leader who was the second most powerful official in China’s southwest Sichuan Province was removed from his posts on Thursday amid corruption allegations that may hint of a wider crackdown on graft.




The case of Li Chuncheng, 56, who last month was named an alternate member of the party’s Central Committee, is the most significant of the flurry of vice-and-sex scandals that have claimed a half dozen officials in recent weeks. Most of those, however, were first exposed on the Internet by journalists or anonymous citizens who forced the authorities to act.


The investigation of Li was initiated by the party’s main anticorruption body, the Central Commission for Discipline Inspection, which summoned him for questioning on Dec. 2.


China’s new leaders have vowed to tackle the bribery, embezzlement and influence-peddling that has shaken public confidence in the ruling Communist Party. Although the probe into Mr. Li likely began some time ago, analysts say the timing of his downfall could be designed to telegraph a message about the new leadership’s commitment to rooting out official corruption.


The brief announcement by the state-run Xinhua news agency said only that Mr. Li was suspected of “grave violations of discipline.” Earlier media reports have made vague references to a career replete with malfeasance. One report suggested Mr. Li had engaged in buying and selling official posts as well as bribe-taking related to real-estate deals in Chengdu, the provincial capital where he served as mayor before his promotion to provincial deputy party chief.


Mr. Li’s dismissal came less than a month after the one-in-a-decade party congress that anointed Xi Jinping as general secretary. In his inaugural speech, Mr. Xi vowed to fight the rampant corruption he said was fueling public distrust and that could one day bring down the party.


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Climate Change Threatens Ski Industry’s Livelihood


Caleb Kenna for The New York Times


A ski lift at Mount Sunapee in Newbury, N.H., where cold weather in late November allowed the resort to open. But higher temperatures quickly returned, melting the resort’s manufactured snow.







NEWBURY, N.H. — Helena Williams had a great day of skiing here at Mount Sunapee shortly after the resort opened at the end of November, but when she came back the next day, the temperatures had warmed and turned patches of the trails from white to brown.




“It’s worrisome for the start of the season,” said Ms. Williams, 18, a member of the ski team at nearby Colby-Sawyer College. “The winter is obviously having issues deciding whether it wants to be cold or warm.”


Her angst is well founded. Memories linger of last winter, when meager snowfall and unseasonably warm weather kept many skiers off the slopes. It was the fourth-warmest winter on record since 1896, forcing half the nation’s ski areas to open late and almost half to close early.


Whether this winter turns out to be warm or cold, scientists say that climate change means the long-term outlook for skiers everywhere is bleak. The threat of global warming hangs over almost every resort, from Sugarloaf in Maine to Squaw Valley in California. As temperatures rise, analysts predict that scores of the nation’s ski centers, especially those at lower elevations and latitudes, will eventually vanish.


Under certain warming forecasts, more than half of the 103 ski resorts in the Northeast will not be able to maintain a 100-day season by 2039, according to a study to be published next year by Daniel Scott, director of the Interdisciplinary Center on Climate Change at the University of Waterloo in Ontario.


By then, no ski area in Connecticut or Massachusetts is likely to be economically viable, Mr. Scott said. Only 7 of 18 resorts in New Hampshire and 8 of 14 in Maine will be. New York’s 36 ski areas, most of them in the western part of the state, will have shrunk to 9.


In the Rockies, where early conditions have also been spotty, average winter temperatures are expected to rise as much as 7 degrees by the end of the century. Park City, Utah, could lose all of its snowpack by then. In Aspen, Colo., the snowpack could be confined to the top quarter of the mountain. So far this season, several ski resorts in Colorado have been forced to push back their opening dates.


“We need another six or eight inches to get open,” said Ross Terry, the assistant general manager of Sunlight Mountain, near Aspen, which has delayed its opening a week, until Friday.


The warming trend “spells economic devastation for a winter sports industry deeply dependent upon predictable, heavy snowfall,” said another report, released last week by the Natural Resources Defense Council and Protect Our Winters, an organization founded to spur action against climate change.


Between 2000 and 2010, the report said, the $10.7 billion ski and snowboarding industry, with centers in 38 states and employing 187,000 people directly or indirectly, lost $1.07 billion in revenue when comparing each state’s best snowfall years with its worst snowfall years.


Even in the face of such dire long-range predictions, many in the industry remain optimistic. Karl Stone, the marketing director for Ski New Hampshire, a trade group, said that good winters tended to come after bad ones — the winter of 2010-11 was one of the snowiest in recent memory — and that a blizzard could balance out a warm spell. The basic dynamic he lives with is unpredictability; some areas that were warm last week have snow this week and vice versa.


“Things can change quickly, thanks to one storm, and that’s usually how it works this time of year,” he said, noting the current on-again, off-again snow pattern.


On a warm day last week, when the thermometer reached 51, Bruce McCloy, director of marketing and sales here at Mount Sunapee, was generally upbeat about the coming season, but he could not ignore the brown slopes outside his office window.


“The real problem with a day like this is that you can’t make more snow,” he said. “There are only so many days until Christmas, and we need so many days at certain temperatures to get the whole mountain done.”


Even in the Rockies, it is difficult to find enough water to make snow. After last year’s dry winter and a parched, sweltering summer, reservoirs are depleted, streams are low, and snowpack levels stand at 41 percent of their historical average.


At Sunlight in Colorado, the creek that supplies the pond that, in turn, provides water for snow guns has slowed to a near-trickle.


Jack Healy contributed reporting from Denver.



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Another Look at a Drink Ingredient, Brominated Vegetable Oil


James Edward Bates for The New York Times


Sarah Kavanagh, 15, of Hattiesburg, Miss., started an online petition asking PepsiCo to change Gatorade’s formula.







Sarah Kavanagh and her little brother were looking forward to the bottles of Gatorade they had put in the refrigerator after playing outdoors one hot, humid afternoon last month in Hattiesburg, Miss.




But before she took a sip, Sarah, a dedicated vegetarian, did what she often does and checked the label to make sure no animal products were in the drink. One ingredient, brominated vegetable oil, caught her eye.


“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” Ms. Kavanagh said. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”


She threw the product away and started a petition on Change.org, a nonprofit Web site, that has almost 200,000 signatures. Ms. Kavanagh, 15, hopes her campaign will persuade PepsiCo, Gatorade’s maker, to consider changing the drink’s formulation.


Jeff Dahncke, a spokesman for PepsiCo, noted that brominated vegetable oil had been deemed safe for consumption by federal regulators. “As standard practice, we constantly evaluate our formulas and ingredients to ensure they comply with federal regulations and meet the high quality standards our consumers and athletes expect — from functionality to great taste,” he said in an e-mail.


In fact, about 10 percent of drinks sold in the United States contain brominated vegetable oil, including Mountain Dew, also made by PepsiCo; Powerade, Fanta Orange and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.


The ingredient is added often to citrus drinks to help keep the fruit flavoring evenly distributed; without it, the flavoring would separate.


Use of the substance in the United States has been debated for more than three decades, so Ms. Kavanagh’s campaign most likely is quixotic. But the European Union has long banned the substance from foods, requiring use of other ingredients. Japan recently moved to do the same.


“B.V.O. is banned other places in the world, so these companies already have a replacement for it,” Ms. Kavanagh said. “I don’t see why they don’t just make the switch.” To that, companies say the switch would be too costly.


The renewed debate, which has brought attention to the arcane world of additive regulation, comes as consumers show increasing interest in food ingredients and have new tools to learn about them. Walmart’s app, for instance, allows access to lists of ingredients in foods in its stores.


Brominated vegetable oil contains bromine, the element found in brominated flame retardants, used in things like upholstered furniture and children’s products. Research has found brominate flame retardants building up in the body and breast milk, and animal and some human studies have linked them to neurological impairment, reduced fertility, changes in thyroid hormones and puberty at an earlier age.


Limited studies of the effects of brominated vegetable oil in animals and in humans found buildups of bromine in fatty tissues. Rats that ingested large quantities of the substance in their diets developed heart lesions.


Its use in foods dates to the 1930s, well before Congress amended the Food, Drug and Cosmetic Act to add regulation of new food additives to the responsibilities of the Food and Drug Administration. But Congress exempted two groups of additives, those already sanctioned by the F.D.A. or the Department of Agriculture, or those experts deemed “generally recognized as safe.”


The second exemption created what Tom Neltner, director of the Pew Charitable Trusts’ food additives project, a three-year investigation into how food additives are regulated, calls “the loophole that swallowed the law.” A company can create a new additive, publish safety data about it on its Web site and pay a law firm or consulting firm to vet it to establish it as “generally recognized as safe” — without ever notifying the F.D.A., Mr. Neltner said.


About 10,000 chemicals are allowed to be added to foods, about 3,000 of which have never been reviewed for safety by the F.D.A., according to Pew’s research. Of those, about 1,000 never come before the F.D.A. unless someone has a problem with them; they are declared safe by a company and its handpicked advisers.


“I worked on the industrial and consumer products side of things in the past, and if you take a new chemical and put it into, say, a tennis racket, you have to notify the E.P.A. before you put it in,” Mr. Neltner said, referring to the Environmental Protection Agency. “But if you put it into food and can document it as recognized as safe by someone expert, you don’t have to tell the F.D.A.”


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Another Look at a Drink Ingredient, Brominated Vegetable Oil


James Edward Bates for The New York Times


Sarah Kavanagh, 15, of Hattiesburg, Miss., started an online petition asking PepsiCo to change Gatorade’s formula.







Sarah Kavanagh and her little brother were looking forward to the bottles of Gatorade they had put in the refrigerator after playing outdoors one hot, humid afternoon last month in Hattiesburg, Miss.




But before she took a sip, Sarah, a dedicated vegetarian, did what she often does and checked the label to make sure no animal products were in the drink. One ingredient, brominated vegetable oil, caught her eye.


“I knew it probably wasn’t from an animal because it had vegetable in the name, but I still wanted to know what it was, so I Googled it,” Ms. Kavanagh said. “A page popped up with a long list of possible side effects, including neurological disorders and altered thyroid hormones. I didn’t expect that.”


She threw the product away and started a petition on Change.org, a nonprofit Web site, that has almost 200,000 signatures. Ms. Kavanagh, 15, hopes her campaign will persuade PepsiCo, Gatorade’s maker, to consider changing the drink’s formulation.


Jeff Dahncke, a spokesman for PepsiCo, noted that brominated vegetable oil had been deemed safe for consumption by federal regulators. “As standard practice, we constantly evaluate our formulas and ingredients to ensure they comply with federal regulations and meet the high quality standards our consumers and athletes expect — from functionality to great taste,” he said in an e-mail.


In fact, about 10 percent of drinks sold in the United States contain brominated vegetable oil, including Mountain Dew, also made by PepsiCo; Powerade, Fanta Orange and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.


The ingredient is added often to citrus drinks to help keep the fruit flavoring evenly distributed; without it, the flavoring would separate.


Use of the substance in the United States has been debated for more than three decades, so Ms. Kavanagh’s campaign most likely is quixotic. But the European Union has long banned the substance from foods, requiring use of other ingredients. Japan recently moved to do the same.


“B.V.O. is banned other places in the world, so these companies already have a replacement for it,” Ms. Kavanagh said. “I don’t see why they don’t just make the switch.” To that, companies say the switch would be too costly.


The renewed debate, which has brought attention to the arcane world of additive regulation, comes as consumers show increasing interest in food ingredients and have new tools to learn about them. Walmart’s app, for instance, allows access to lists of ingredients in foods in its stores.


Brominated vegetable oil contains bromine, the element found in brominated flame retardants, used in things like upholstered furniture and children’s products. Research has found brominate flame retardants building up in the body and breast milk, and animal and some human studies have linked them to neurological impairment, reduced fertility, changes in thyroid hormones and puberty at an earlier age.


Limited studies of the effects of brominated vegetable oil in animals and in humans found buildups of bromine in fatty tissues. Rats that ingested large quantities of the substance in their diets developed heart lesions.


Its use in foods dates to the 1930s, well before Congress amended the Food, Drug and Cosmetic Act to add regulation of new food additives to the responsibilities of the Food and Drug Administration. But Congress exempted two groups of additives, those already sanctioned by the F.D.A. or the Department of Agriculture, or those experts deemed “generally recognized as safe.”


The second exemption created what Tom Neltner, director of the Pew Charitable Trusts’ food additives project, a three-year investigation into how food additives are regulated, calls “the loophole that swallowed the law.” A company can create a new additive, publish safety data about it on its Web site and pay a law firm or consulting firm to vet it to establish it as “generally recognized as safe” — without ever notifying the F.D.A., Mr. Neltner said.


About 10,000 chemicals are allowed to be added to foods, about 3,000 of which have never been reviewed for safety by the F.D.A., according to Pew’s research. Of those, about 1,000 never come before the F.D.A. unless someone has a problem with them; they are declared safe by a company and its handpicked advisers.


“I worked on the industrial and consumer products side of things in the past, and if you take a new chemical and put it into, say, a tennis racket, you have to notify the E.P.A. before you put it in,” Mr. Neltner said, referring to the Environmental Protection Agency. “But if you put it into food and can document it as recognized as safe by someone expert, you don’t have to tell the F.D.A.”


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‘Dear Friends’: Pope Takes to Twitter, With an Assist


Vincenzo Pinto/Agence France-Presse — Getty Images


Pope Benedict XVI using an iPad to post his first message on Twitter during his weekly audience at the Vatican on Wednesday.







ROME — After struggling with the touch screen of an iPad, Pope Benedict XVI dispatched his first Twitter message on Wednesday. “Dear friends,” it read, “I am pleased to get in touch with you through Twitter. Thank you for your generous response. I bless all of you from my heart.”




Sitting at a desk in the Vatican hall where he holds his weekly audience, the pontiff, 85, touched the iPad with a wavering hand adorned with a large gold ring, as the audience applauded.


Video footage showed that the pope seemed confused and had trouble hitting “send,” forcing Archbishop Claudio Maria Celli, the president of the Pontifical Council for Social Communications, to step in and touch the screen to send the first papal message.


Last week, the Vatican announced that Benedict, who writes in longhand, would begin posting messages on Twitter in eight languages under the handle @pontifex, a Latin term for pope that means “bridge builder.” Claire Díaz-Ortiz, the director of social innovation at Twitter, was at the ceremony.


Later on Wednesday, the pope responded to questions that included the hashtag #askpontifex. “How can faith in Jesus be lived in a world without hope?” the pope wrote in one post. “By speaking with Jesus in prayer, listening to what he tells you in the Gospel and looking for him in those in need.”


In another, Benedict said: “We can be certain that a believer is never alone. God is the solid rock upon which we build our lives and his love is always faithful.”


The Vatican has said that the pope will be using Twitter to engage with the Roman Catholic Church’s 1.2 billion followers.


The pope gained more than 200,000 followers on Wednesday alone, pushing him above 800,000 in English, more than Cardinal Timothy M. Dolan of New York, with 65,800 followers, but less than Justin Bieber, who has 31 million.


The Twitterati had a field day with the pope’s postings. “@Pontifex tweets from a tablet? Big deal: Moses had two,” wrote Jared Keller, the director of social media at Bloomberg L.P. Another user wrote, “If someone gets blocked by @Pontifex on Twitter ... does that mean they’re automatically excommunicated?”


Earlier this year, the satirical newspaper The Onion published an article that said, “Pope tweets picture of self with God.”


The Vatican has said that the pope will not follow anyone on Twitter, or retweet messages. A Vatican official has said that papal Twitter messages, as with everything written by the pope, will be part of the church’s teachings, but that they will not be infallible.


Others used Twitter to send messages to the pope criticizing the Catholic Church for the sexual abuse scandal and the church’s ban on condom use. In Italy, many sent complaints that the church does not have to pay most property taxes.


Benedict will be posting messages in Arabic, English, French, German, Italian, Polish, Portuguese and Spanish. Other languages are expected to be added in the future.


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DealBook: HSBC to Pay $1.92 Billion Fine to Settle Charges Over Laundering

2:07 a.m. | Updated

State and federal authorities decided against indicting HSBC in a money-laundering case over concerns that criminal charges could jeopardize one of the world’s largest banks and ultimately destabilize the global financial system.

Instead, authorities on Tuesday announced a record $1.92 billion settlement with HSBC. The bank, which is based in Britain, faces accusations that it transferred billions of dollars for nations like Iran and enabled Mexican drug cartels to move money illegally through its American subsidiaries.

HSBC said on Tuesday that it had “reached agreement with United States authorities in relation to investigations regarding inadequate compliance with anti-money laundering and sanctions laws.” The bank also expected to reach an agreement “shortly” with the Financial Services Authority, the British regulator.

“We accept responsibility for our past mistakes,’’ HSBC’s chief executive, Stuart Gulliver, said in the statement. “We are committed to protecting the integrity of the global financial system. To this end, we will continue to work closely with governments and regulators around the world.”

While the settlement with HSBC is a major victory for the government, the case raises questions about whether certain financial institutions, having grown so large and so interconnected, are too big to indict. Four years after the failure of Lehman Brothers nearly toppled the financial system, regulators are still wary that a single institution could undermine the recovery of the industry and the economy.

But the threat of criminal prosecution acts as a powerful deterrent. If authorities signal such actions are remote for big banks, the threat could lose its sting.

Behind the scenes, authorities debated for months the advantages and perils of a criminal indictment against HSBC.

Some prosecutors at the Justice Department’s criminal division and the Manhattan district attorney’s office wanted the bank to plead guilty to violations of the federal Bank Secrecy Act, according to the officials with direct knowledge of the matter, who spoke on the condition of anonymity. The law forces financial institutions to report any cash transaction of $10,000 or more and requires banks to bring any dubious activity to the attention of regulators.

Given the extent of the evidence against HSBC, some prosecutors saw the charge as a healthy compromise between a settlement and a harsher money-laundering indictment. While the charge would most likely tarnish the bank’s reputation, some officials argued that it would not set off a series of devastating consequences.

A money-laundering indictment, or a guilty plea over such charges, would essentially be a death sentence for the bank. Such actions could cut off the bank from certain investors like pension funds and ultimately cost it its charter to operate in the United States, officials said.

Despite the Justice Department’s proposed compromise, Treasury Department officials and bank regulators at the Federal Reserve and the Office of the Comptroller of the Currency pointed to potential issues with the aggressive stance, according to the officials briefed on the matter. When approached by the Justice Department for their thoughts, the regulators cautioned about the impact on the broader economy.

“The Justice Department asked Treasury for our view about the potential implications of prosecuting a large financial institution,” David S. Cohen, the Treasury’s under secretary for terrorism and financial intelligence, said in a statement. “We did not believe we were in a position to offer any meaningful assessment. The decision of how the Justice Department exercises its prosecutorial discretion is solely theirs and Treasury had no role.”

Still, some prosecutors proposed that Attorney General Eric H. Holder Jr. meet with Treasury Secretary Timothy F. Geithner, people briefed on the matter said. The meeting never took place.

After months of discussions, prosecutors decided against a criminal indictment, but only after securing record penalties and wide-ranging sanctions.

The HSBC deal includes a deferred prosecution agreement with the Manhattan district attorney’s office and the Justice Department. The deferred prosecution agreement, a notch below a criminal indictment, requires the bank to forfeit more than $1.2 billion and pay about $700 million in fines, according to the officials briefed on the matter. The case, officials say, will claim violations of the Bank Secrecy Act and Trading with the Enemy Act.

As part of the deal, one of the officials briefed on the matter said, HSBC must also strengthen its internal controls and stay out of trouble for the next five years. If the bank again runs afoul of the federal rules, the Justice Department can resume its case and file a criminal indictment. An independent auditor also will monitor the bank’s progress to strengthen its internal controls, and will make regular assessments on the firm’s progress.

The HSBC case is part of a sweeping investigation into the movement of tainted money through the American financial system. In 2010, Lanny A. Breuer, the head of the Justice Department’s criminal division, created a money-laundering task force that has collected more than $2 billion in fines from banks, a number that is set to double with the HSBC case.

The inquiry — led by the Justice Department, the Treasury and the Manhattan prosecutors — has ensnared six foreign banks in recent years, including Credit Suisse and Barclays. In June, ING Bank reached a $619 million settlement to resolve claims that it had transferred billions of dollars in the United States for countries like Cuba and Iran that are under United States sanctions.

On Monday, federal and state authorities also won a $327 million settlement from Standard Chartered, a British bank. Standard, which in September agreed to a larger settlement with New York’s top banking regulator, admitted processing thousands of transactions for Iranian and Sudanese clients through its American subsidiaries. To avoid having Iranian transactions detected by Treasury Department computer filters, Standard Chartered deliberately removed names and other identifying information, according to the authorities.

“You can’t do it. It’s against the law, and today Standard Chartered is being held to account,” Mr. Breuer said in an interview.

HSBC’s actions stand out among the foreign banks caught up in the investigation, according to several law enforcement officials with knowledge of the inquiry. Unlike those of institutions that have previously settled, HSBC’s activities are said to have gone beyond claims that the bank flouted United States sanctions to transfer money on behalf of nations like Iran. Prosecutors also found that the bank had facilitated money laundering by Mexican drug cartels and had moved tainted money for Saudi banks tied to terrorist groups.

HSBC was thrust into the spotlight in July after a Congressional committee outlined how the bank, between 2001 and 2010, “exposed the U.S. financial system to money laundering and terrorist financing risks.” The Permanent Subcommittee on Investigations held a subsequent hearing at which the bank’s compliance chief resigned amid mounting concerns that senior bank officials were complicit in the illegal activity. For example, an HSBC executive at one point argued that the bank should continue working with the Saudi Al Rajhi bank, which has supported Al Qaeda, according to the Congressional report.

Despite repeated urgings from federal officials to strengthen protections in its vast Mexican business, HSBC instead viewed the country from 2000 to 2009 as low-risk for money laundering, the Senate report found. Even after HSBC’s Mexican operation transferred more than $7 billion to the United States — a volume that law enforcement officials said had to be “illegal drug proceeds” — lax controls remained.

HSBC has since moved to bolster its safeguards. The bank doubled its spending on compliance functions and revamped its oversight, according to a spokesman. In January, HSBC hired Stuart A. Levey as chief legal officer to come up with stricter internal standards to thwart the illegal flow of cash. Mr. Levey was formerly an under secretary at the Treasury Department who focused on terrorism and financial intelligence.

On Monday, the bank said it was promoting Robert Werner, who oversaw the group at the Treasury Department that enforces sanctions, to run a specially created division focused on anti-money laundering efforts.

Regulators have also vowed to improve. The Congressional hearings exposed weaknesses at the Office of the Comptroller of the Currency, the national bank regulator. In 2010, the regulator found that HSBC had severe deficiencies in its anti-money laundering controls, including $60 trillion in transactions and 17,000 accounts flagged as potentially suspicious, activities that were not reviewed. Despite the findings, the regulator did not fine the bank.

During the hearings this summer, lawmakers blasted the regulator. At one point, Senator Tom Coburn, Republican of Oklahoma, called the comptroller “a lapdog not a watchdog.”

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Personal Health: When Daily Stress Gets in the Way of Life

I was about to give an hourlong talk to hundreds of people when one of the organizers of the event asked, “Do you get nervous when you give speeches?” My response: Who, me? No. Of course not.

But this was a half-truth. I am a bit of a worrier, and one thing that makes me anxious is getting ready for these events: fretting over whether I’ve prepared the right talk, packed the right clothes or forgotten anything important, like my glasses.

Anxiety is a fact of life. I’ve yet to meet anyone, no matter how upbeat, who has escaped anxious moments, days, even weeks. Recently I succumbed when, rushed for time just before a Thanksgiving trip, I was told the tires on my car were too worn to be driven on safely and had to be replaced.

“But I have no time to do this now,” I whined.

“Do you have time for an accident?” my car-savvy neighbor asked.

So, with a pounding pulse and no idea how I’d make up the lost time, I went off to get new tires. I left the car at the shop and managed to calm down during the walk home, which helped me get back to the work I needed to finish before the trip.

It seems like such a small thing now. But everyday stresses add up, according to Tamar E. Chansky, a psychologist in Plymouth Meeting, Pa., who treats people with anxiety disorders.

You’ll be much better able to deal with a serious, unexpected challenge if you lower your daily stress levels, she said. When worry is a constant, “it takes less to tip the scales to make you feel agitated or plagued by physical symptoms, even in minor situations,” she wrote in her very practical book, “Freeing Yourself From Anxiety.”

When Calamities Are Real

Of course, there are often good reasons for anxiety. Certainly, people who lost their homes and life’s treasures — and sometimes loved ones — in Hurricane Sandy can hardly be faulted for worrying about their futures.

But for some people, anxiety is a way of life, chronic and life-crippling, constantly leaving them awash in fears that prevent them from making moves that could enrich their lives.

In an interview, Dr. Chansky said that when real calamities occur, “you will be in much better shape to cope with them if you don’t entertain extraneous catastrophes.”

By “extraneous,” she means the many stresses that pile up in the course of daily living that don’t really deserve so much of our emotional capital — the worrying and fretting we spend on things that won’t change or simply don’t matter much.

“If you worry about everything, it will get in the way of what you really need to address,” she explained. “The best decisions are not made when your mind is spinning out of control, racing ahead with predictions about how things are never going to get any better. Precious energy is wasted when you’re always thinking about the worst-case scenarios.”

When faced with serious challenges, it helps to narrow them down to specific things you can do now. To my mind, Dr. Chansky’s most valuable suggestion for emerging from paralyzing anxiety when faced with a monumental task is to “stay in the present — it doesn’t help to be in the future.

“Take some small step today, and value each step you take. You never know which step will make a difference. This is much better than not trying to do anything.”

Dr. Chansky told me, “If you’re worrying about your work all the time, you won’t get your work done.” She suggested instead that people “compartmentalize.” Those prone to worry should set aside a little time each day simply to fret, she said — and then put aside anxieties and spend the rest of the time getting things done. This advice could not have come at a better time for me, as I faced holiday chores, two trips in December, and five columns to write before leaving mid-month. Rather than focusing on what seemed like an impossible challenge, I took on one task at a time. Somehow it all got done.

Possible Thinking

Many worriers think the solution is positive thinking. Dr. Chansky recommends something else: think “possible.”

“When we are stuck with negative thinking, we feel out of options, so to exit out of that we need to be reminded of all the options we do have,” she writes in her book.

If this is not something you can do easily on your own, consult others for suggestions. During my morning walk with friends, we often discuss problems, and inevitably someone comes up with a practical solution. But even if none of their suggestions work, at least they narrow down possible courses of action and make the problem seem less forbidding. “If other people are not caught in the spin that you’re in, they may have ideas for you that you wouldn’t think of,” Dr. Chansky said. “We often do this about small things, but when something big is going on, we hesitate to ask for advice. Yet that’s when we need it most.”

Dr. Chansky calls this “a community cleanup effort,” and it can bring more than advice. During an especially challenging time, like dealing with a spouse’s serious illness or loss of one’s home, friends and family members can help with practical matters like shopping for groceries, providing meals, cleaning out the refrigerator or paying bills.

“People want to help others in need — it’s how the world goes around,” she said. Witness the many thousands of volunteers, including students from other states on their Thanksgiving break, who prepared food and delivered clothing and equipment to the victims of Hurricane Sandy. Even the smallest favor can help buffer stress and enable people to focus productively on what they can do to improve their situation.

Another of Dr. Chansky’s invaluable tips is to “let go of the rope.” When feeling pressured to figure out how to fix things now, “walk away for a few minutes, but promise to come back.” As with a computer that suddenly misbehaves, Dr. Chansky suggests that you “unplug and refresh,” perhaps by “taking a breathing break,” inhaling and exhaling calmly and intentionally.

“The more you practice calm breathing, the more it will be there for you when you need it,” she wrote.

She also suggests taking a break to do something physical: “Movement shifts the moment.” Take a walk or bike ride, call a friend, look through a photo album, or do some small cleaning task like clearing off your night table.

When you have a clear head and are feeling less overwhelmed, you’ll be better able to figure out the next step.


This is the first of two columns about anxiety.

Read More..

Personal Health: When Daily Stress Gets in the Way of Life

I was about to give an hourlong talk to hundreds of people when one of the organizers of the event asked, “Do you get nervous when you give speeches?” My response: Who, me? No. Of course not.

But this was a half-truth. I am a bit of a worrier, and one thing that makes me anxious is getting ready for these events: fretting over whether I’ve prepared the right talk, packed the right clothes or forgotten anything important, like my glasses.

Anxiety is a fact of life. I’ve yet to meet anyone, no matter how upbeat, who has escaped anxious moments, days, even weeks. Recently I succumbed when, rushed for time just before a Thanksgiving trip, I was told the tires on my car were too worn to be driven on safely and had to be replaced.

“But I have no time to do this now,” I whined.

“Do you have time for an accident?” my car-savvy neighbor asked.

So, with a pounding pulse and no idea how I’d make up the lost time, I went off to get new tires. I left the car at the shop and managed to calm down during the walk home, which helped me get back to the work I needed to finish before the trip.

It seems like such a small thing now. But everyday stresses add up, according to Tamar E. Chansky, a psychologist in Plymouth Meeting, Pa., who treats people with anxiety disorders.

You’ll be much better able to deal with a serious, unexpected challenge if you lower your daily stress levels, she said. When worry is a constant, “it takes less to tip the scales to make you feel agitated or plagued by physical symptoms, even in minor situations,” she wrote in her very practical book, “Freeing Yourself From Anxiety.”

When Calamities Are Real

Of course, there are often good reasons for anxiety. Certainly, people who lost their homes and life’s treasures — and sometimes loved ones — in Hurricane Sandy can hardly be faulted for worrying about their futures.

But for some people, anxiety is a way of life, chronic and life-crippling, constantly leaving them awash in fears that prevent them from making moves that could enrich their lives.

In an interview, Dr. Chansky said that when real calamities occur, “you will be in much better shape to cope with them if you don’t entertain extraneous catastrophes.”

By “extraneous,” she means the many stresses that pile up in the course of daily living that don’t really deserve so much of our emotional capital — the worrying and fretting we spend on things that won’t change or simply don’t matter much.

“If you worry about everything, it will get in the way of what you really need to address,” she explained. “The best decisions are not made when your mind is spinning out of control, racing ahead with predictions about how things are never going to get any better. Precious energy is wasted when you’re always thinking about the worst-case scenarios.”

When faced with serious challenges, it helps to narrow them down to specific things you can do now. To my mind, Dr. Chansky’s most valuable suggestion for emerging from paralyzing anxiety when faced with a monumental task is to “stay in the present — it doesn’t help to be in the future.

“Take some small step today, and value each step you take. You never know which step will make a difference. This is much better than not trying to do anything.”

Dr. Chansky told me, “If you’re worrying about your work all the time, you won’t get your work done.” She suggested instead that people “compartmentalize.” Those prone to worry should set aside a little time each day simply to fret, she said — and then put aside anxieties and spend the rest of the time getting things done. This advice could not have come at a better time for me, as I faced holiday chores, two trips in December, and five columns to write before leaving mid-month. Rather than focusing on what seemed like an impossible challenge, I took on one task at a time. Somehow it all got done.

Possible Thinking

Many worriers think the solution is positive thinking. Dr. Chansky recommends something else: think “possible.”

“When we are stuck with negative thinking, we feel out of options, so to exit out of that we need to be reminded of all the options we do have,” she writes in her book.

If this is not something you can do easily on your own, consult others for suggestions. During my morning walk with friends, we often discuss problems, and inevitably someone comes up with a practical solution. But even if none of their suggestions work, at least they narrow down possible courses of action and make the problem seem less forbidding. “If other people are not caught in the spin that you’re in, they may have ideas for you that you wouldn’t think of,” Dr. Chansky said. “We often do this about small things, but when something big is going on, we hesitate to ask for advice. Yet that’s when we need it most.”

Dr. Chansky calls this “a community cleanup effort,” and it can bring more than advice. During an especially challenging time, like dealing with a spouse’s serious illness or loss of one’s home, friends and family members can help with practical matters like shopping for groceries, providing meals, cleaning out the refrigerator or paying bills.

“People want to help others in need — it’s how the world goes around,” she said. Witness the many thousands of volunteers, including students from other states on their Thanksgiving break, who prepared food and delivered clothing and equipment to the victims of Hurricane Sandy. Even the smallest favor can help buffer stress and enable people to focus productively on what they can do to improve their situation.

Another of Dr. Chansky’s invaluable tips is to “let go of the rope.” When feeling pressured to figure out how to fix things now, “walk away for a few minutes, but promise to come back.” As with a computer that suddenly misbehaves, Dr. Chansky suggests that you “unplug and refresh,” perhaps by “taking a breathing break,” inhaling and exhaling calmly and intentionally.

“The more you practice calm breathing, the more it will be there for you when you need it,” she wrote.

She also suggests taking a break to do something physical: “Movement shifts the moment.” Take a walk or bike ride, call a friend, look through a photo album, or do some small cleaning task like clearing off your night table.

When you have a clear head and are feeling less overwhelmed, you’ll be better able to figure out the next step.


This is the first of two columns about anxiety.

Read More..

Huawei to Open Research Center in Finland





PARIS — Huawei Technologies, a Chinese maker of telecommunications equipment, said on Monday that it planned to open a research and development center in Helsinki next year, accelerating its investments in Europe, where its business is expanding rapidly.


The move illustrates a trans-Atlantic difference in attitudes toward Huawei. The company has been largely shut out of the United States market for network gear because of Congressional concerns about possible security threats — fears the company insists are unfounded.


While Huawei has faced difficulties in some European markets, like France, it has done better elsewhere. Huawei employs more than 7,000 people in the region, and it says that total could double in the next three to five years. Huawei already has a research center in Italy and is studying the possibility of opening one in Spain. It also recently announced a $2 billion investment in Britain.


The planned center in Helsinki, involving an investment of 70 million euros, or about $90 million, will work on smartphone development, including features like user interfaces and power management, the company said. When the center opens next year, it will employ 30 people, but this could grow to 100 over the next five years, the company said.


The announcement is a plus for the Finnish technology industry, which has been suffering from the woes at Nokia. The company was once the world’s biggest cellphone maker, but its market share has fallen sharply in recent years.


“The open and innovative environment in Finland,” Huawei said, “is an ideal place for Huawei to strengthen our global R.& D. capabilities for devices, creating opportunities for both Huawei and the Finnish telecommunications industry.”


Huawei has been known mostly for its network equipment, but the company is pushing to make a name for itself with its handsets.


Mobile devices accounted for 22 percent of its revenue last year, an increase of 37 percent. That compares with growth of 12 percent for the overall business.


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