Quinn, Emanuel assail court's concealed carry decision

Gov. Pat Quinn on Wednesday indicated he would like to see assault weapons banned in Illinois as lawmakers this spring revise state law to allow some form of concealed carry to comply with a court ruling that tossed aside a long-standing ban on allowing people to carry weapons.

Meanwhile, at City Hall, Mayor Rahm Emanuel blasted Tuesday's federal appellate court decision as "wrongheaded" as he offered legal help to Illinois Attorney General Lisa Madigan as she weighs an appeal.

Judges gave the General Assembly six months to make changes, and the Democratic governor suggested the new rules will have to restrict who can get a permit to carry a gun.

"We have to have reasonable limitations so people who have clear situations where they should not be carrying a gun, for example, those with mental health challenges, those who have records of domestic violence, we cannot have those sorts of people eligible to carry weapons, loaded weapons, on their person in public places" Quinn said.

National Rifle Association lobbyist Todd Vandermyde said the governor is "being very pragmatic in his approach" on concealed carry. Though Vandermyde expected gun rights groups to hold firm on a variety of points, he said his group wanted to "work for a reasonable solution and policy on right to carry."

Quinn also pressed for an assault weapons ban, saying Illinois residents "overwhelmingly support that."

"I want to say today, and I'll say every day, we need to ban assault weapons in our state of Illinois. We aren't going to have people marching along Michigan Avenue, or any other avenue in the state of Illinois, with military-style assault weapons, weapons that are designed to kill people."

An assault weapons ban has been elusive in Springfield because of geographical differences of opinion. Opponents point to the fact that Chicago had a gun ban for decades, even as criminals obtained guns and shot people.

For his part, Emanuel noted his efforts while working for former President Bill Clinton to require background checks for gun buyers and ban semi-automatic assault weapons.

"We fought against the National Rifle Association. They had not been beaten in 30 years in the United States Congress, and we beat 'em," Emanuel said.

"I think this opinion by the 7th Circuit Court is also wrongheaded," he added.

Emanuel said he has offered to make city Law and Police department resources available to the Illinois attorney general. Meanwhile, the city is reviewing its gun registration ordinance to see if it needs modification in light of the court ruling.

Tribune reporter Ray Long contributed.

mcgarcia@tribune.com

hdardick@tribune.com

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U.S. federal agency to test RIM’s BlackBerry 10

TORONTO (Reuters) – Research In Motion said a U.S. federal agency, which recently outlined plans to move away from BlackBerry in favor of Apple Inc’s iPhone, is now set to begin testing RIM‘s new BlackBerry 10 platform and devices.

The U.S. Immigration and Customs Enforcement agency (ICE), will early next year begin a pilot program on RIM’s new line of BlackBerry 10 smartphones and BlackBerry Enterprise Service 10 (BES 10), which allows corporations and government users to run the new devices on their networks, a RIM spokeswoman said late on Wednesday.

The news, which comes just as shares of the embattled company rallied to their highest close in seven months, signals that RIM’s BlackBerry 10 platform is gaining some traction ahead of its official launch next month.

RIM, a one-time pioneer in the smartphone industry, has lost market share in recent years to the iPhone and devices powered by Google Inc’s market-leading Android operating system, even among the business audience who once used BlackBerry devices exclusively.

Waterloo, Ontario-based RIM is now seeking to persuade both corporations and government users to stick with its smartphones, which have long been valued for their strong security features. It promises that its new line of devices, which will be powered by the BlackBerry 10 operating system, will be both smoother and faster than previous BlackBerry phones.

RIM is betting that these new devices – to be launched on January 30 – will revive its fortunes. But that may well depend to a large extent on the response from enterprise customers, many of whom have recently begun to flee to rival platforms.

ICE is one such example. The agency, in October, announced plans to end a long relationship with RIM, stating that its now aging line-up of BlackBerry devices could “no longer meet the mobile technology needs of the agency.

At the time, ICE outlined intentions to buy iPhones for more than 17,600 employees. It is not immediately clear whether the agency plans to revisit this plan or whether its intends to use RIM’s new BES 10 platform to manage both iPhones and BlackBerry devices. A spokeswoman for the agency was not immediately able to comment on the pilot program or the agency’s plans.

SHARES SURGE

The news comes soon after yet another rally in RIM shares on Wednesday, after Eric Jackson – a long-time bear on RIM’s stock – penned an opinion piece on his now bullish stance on the company.

Jackson, the founder of Ironfire Capital, in his piece, said parallels drawn by some analysts between RIM and its now-defunct rival Palm are flawed, as Palm never had the kind of installed subscriber base that RIM enjoys.

In his article, published on Wednesday on the TheStreet.com, Jackson contends that RIM’s new BlackBerry 10 devices have much better odds of success than Palm’s Pre device, which failed to capture a following despite positive reviews on the device and its operating system.

Jackson, who was short RIM’s stock for an extended period, argues that the positive sentiment building in RIM’s stock ahead of the launch of the make-or-break line of devices is unlikely to dissipate in a hurry, as a large portion of RIM’s 80 million subscribers are likely to upgrade to BB10 when the new devices are launched. Jackson said he now has a long position in RIM.

Shares in the company rose 5.6 percent to close at $ 13.31 on the Nasdaq – their highest close since May 1. Its Toronto-listed shares rose 5.8 percent to close at C$ 13.14.

The stock has more than doubled in price since September 24, when the shares were trading slightly above the $ 6 level in both New York and Toronto. The wave of optimism around BB10 has in recent weeks been bolstered by a number of analyst upgrades on the stock.

(Editing by Dan Grebler and Muralikumar Anantharaman)

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McAfee arrives in U.S. from Guatemala

MIAMI (Reuters) – Computer software pioneer John McAfee, who is wanted for questioning in Belize over the murder of a fellow American, arrived in Miami on Wednesday evening after he was deported by Guatemala, according to fellow passengers on an American Airlines flight.

After landing, McAfee, 67, was escorted from the plane by airport security officers, passengers said. Shortly afterward, he tweeted, “I am in South Beach,” referring to the popular tourist area on Miami Beach.

“Some people felt uncomfortable that he was on our flight. … We all knew the story,” said Maria Claridge, 36, a South Florida photographer who was on the Silicon Valley entrepreneur’s flight to Miami.

McAfee, who was seated in the coach section and had a whole row to himself, was wearing a suit and was “very calm” during the flight, she added.

“He looked very tired, he looked like a man who hadn’t slept in days. I’d say he even looked depressed,” said another passenger, Roberto Gilbert, a Guatemalan who lives in Miami.

McAfee had been held for a week in Guatemala, where he surfaced after evading police in Belize for nearly a month following the killing of American Gregory Faull, his neighbor on the Caribbean island of Ambergris Caye.

Police in Belize want to quiz McAfee as a “person of interest” in Faull’s death, although the technology guru’s lawyers blocked an attempt by Guatemala to send him back there.

Authorities in Belize say he is not a prime suspect in the investigation. McAfee has denied any role in Faull’s killing.

The goateed McAfee has led the world’s media on a game of online hide-and-seek in Belize and Guatemala since he fled after Faull’s death, peppering the Internet with pithy quotes and colorful revelations about his unpredictable life.

“I’m happy to be going home,” McAfee, dressed in a black suit, told reporters shortly before his departure from Guatemala City airport on Wednesday afternoon. “I’ve been running through jungles and rivers and oceans and I think I need to rest for a while. And I’ve been in jail for seven days.”

Guatemala’s immigration authorities had been holding McAfee since he was arrested last Wednesday for illegally entering the country with his 20-year-old Belizean girlfriend.

The eccentric tech pioneer, who made his fortune from the anti-virus software bearing his name, has been chronicling life on the run in a blog, www.whoismcafee.com.

He said he had no immediate plans after reaching Florida.

“I’m just going to hang in Miami for a while. I like Miami,” he told Reuters by telephone just before his plane left. “There is a great sushi place there and I really like sushi.”

BELIZE STILL WAITING

Residents of the Belizean island of Ambergris Caye, where McAfee has lived for about four years, said McAfee and Faull, 52, had quarreled at times, including over McAfee’s unruly dogs.

McAfee says Belize authorities will kill him if he turns himself in for questioning. He has said he was being persecuted by Belize’s ruling party for refusing to pay some $ 2 million in bribes.

Belize’s prime minister has rejected the allegations, calling McAfee paranoid and “bonkers.

Belize police spokesman Raphael Martinez said the country still wanted to question McAfee about the Faull case.

“He will be just under the goodwill of the United States of America. He is still a person of interest, but a U.S. national has been killed and he has been somewhat implicated in that murder. People want him to answer some questions,” he said.

Martinez noted that Belize’s extradition treaty with the United States extended only to suspected criminals, a designation that did not currently apply to McAfee.

“Right now, we don’t have enough information to change his status from person of interest to suspect,” he said.

Residents and neighbors on Ambergris Caye said McAfee was unusual and at times unstable. He was seen to travel with armed bodyguards, sporting a pistol tucked into his belt.

The predicament of McAfee, a former Lockheed systems consultant, is a far cry from his heyday in the late 1980s, when he started McAfee Associates. McAfee has no relationship now with the company, which was sold to Intel Corp.

McAfee was previously charged in Belize with possession of illegal firearms, and police had raided his property on suspicions that he was running a lab to produce illegal synthetic narcotics. He said he had not taken drugs since 1983.

“I took drugs constantly, 24 hours of the day. I took them for years and years. I was the worst drug abuser on the planet,” he told Reuters before his arrest in Guatemala. “Then I finally went to Alcoholics Anonymous, and that was the end of it.”

(Writing by Dave Graham, Michael O’Boyle and David Adams. Reporting by Sofia Menchu and Mike McDonald.; Editing by Peter Cooney)

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Recipes for Health: Cabbage, Carrot and Purple Kale Latkes — Recipes for Health

Andrew Scrivani for The New York Times

These latkes are nutrient-dense, packed with health promoting sulfur compounds as well as vitamins K, A, C, and manganese, tryptophan, calcium, copper, vitamin B6, iron, and potassium. In order for this mix to hold together it requires a little more egg and flour; I use a combination of cornmeal, all-purpose and buckwheat.

5 cups finely shredded cabbage (about 1 1/4 pounds, or half of a small cabbage)

2 cups finely chopped purple kale or curly green kale

7 to 8 ounces carrots, peeled and grated (about 1 1/2 cups)

1/2 cup chopped cilantro

1 serrano chili, seeded and minced

1 teaspoon baking powder

Salt to taste

2 teaspoons cumin seeds, lightly toasted and coarsely ground or crushed

3 tablespoons oat bran

3 tablespoons all-purpose flour

3 tablespoons cornmeal

2 tablespoons buckwheat flour

3 eggs, beaten

About 1/4 cup canola, grape seed or rice bran oil

1. Heat the oven to 300 degrees. Line a sheet pan with parchment. Place a rack over another sheet pan.

2. In a large bowl mix together the cabbage, kale, cilantro, chili, baking powder, salt, cumin, oat bran, flour, cornmeal and buckwheat flour. Taste and adjust salt. Add the eggs and stir together. Let the mixture sit for 10 to 15 minutes, then stir again.

3. Begin heating a large heavy skillet over medium heat. Take a 1/4 cup measuring cup and fill with 3 tablespoons of the mixture. Reverse onto the parchment-lined baking sheet. Repeat with the remaining latke mix. You should have enough to make about 20 latkes.

4. Add the oil to the pan and when it is hot (hold your hand a few inches above – you should feel the heat), slide a spatula under one portion of the latke mixture and transfer it to the pan. Press down with the spatula to flatten. Repeat with more mounds. In my 10-inch pan I can cook four at a time without crowding; my 12-inch pan will accommodate four or five. Cook on one side until golden brown, about three to four minutes. Slide the spatula underneath and flip the latkes over. Cook on the other side until golden brown, another three minutes. Transfer to the rack set over a baking sheet and place in the oven to keep warm.

5. Serve hot topped with low-fat sour cream, Greek style yogurt or crème fraîche.

Yield: About 30 latkes, serving 6

Advance preparation: You can prep the ingredients and combine everything except the eggs and salt several hour ahead. Refrigerate in a large bowl. Do not add salt until you are ready to cook, or the mixture will become too watery as salt draws the water out of the vegetables.

Nutritional information per serving (6 servings): 206 calories; 13 grams fat; 2 grams saturated fat; 3 grams polyunsaturated fat; 7 grams monounsaturated fat; 93 milligrams cholesterol; 20 grams carbohydrates; 4 grams dietary fiber; 148 milligrams sodium (does not include salt to taste); 7 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Snow-making at ski resorts goes high tech

Mother Nature has been a fickle manager of snowfall lately, sending an avalanche of powder to ski resorts across the country two years ago, followed by the least amount of snowfall in decades last winter.

A scattering of storms has already swept through the West this winter, but it's too early to tell if this season will be a snowy success or another dry disappointment.

But ski resort managers are losing less sleep over erratic weather conditions after making a flurry of investments over the last few years in ultra-efficient, computerized snow-making equipment.

Once powered by diesel air compressors and monitored by workers on snowmobiles, today's snow-making systems rely on computers, fiber-optic cables and low-energy fans that can be controlled by smartphone or programmed to automatically make snow when conditions are prime.

The good news for powder hounds is that the frozen spray generated by modern snow-making equipment is so close to real snow that even veteran skiers can't tell the difference.

"If I'm going down a run, I can't tell you if I just skied on natural or man-made snow," said Bruce Lee, a Redondo Beach resident who has been skiing for 30 years in Vermont, Pennsylvania, Utah, Colorado and California. "I'll bet no one can tell the difference."

Video chat: Tahoe ski resorts get a makeover

Investments in snow making have been especially crucial in California, where snowfall has always been particularly unreliable. The state is home to 29 resorts that generate an estimated $1.3 billion in spending a year.

Last year's ultra-dry season only reinforced the value of artificial snow-making systems. The 2011-12 season marked the lowest national average snowfall in 20 years, forcing half of the nation's resorts to either open late or close early.

The National Resources Defense Council estimates that ski resorts lost $1 billion in revenue because of meager snowfall over the last decade.

Resort operators that had already invested heavily -n snow-making equipment said man-made snow helped them avoid a complete bust.

"For us, the reaction to last year was 'Thank God we've done what we did in the past,'" said Pete Sonntag, general manager at Lake Tahoe's Heavenly ski resort, where 155 snow-making machines can cover 65% of the resort's skiable terrain.

Heavenly's snow-making system — the largest on the West Coast — can be controlled from a desktop computer at a pump house on the mountain or a smartphone carried by Barrett Burghard, the resort's senior manager for snow surfaces.

"I'm not going to lie and say we can make snow as good as Mother Nature," Burghard said as he glanced at a computer screen to check the water levels in the resort's storage tanks. "But it's close."

The best man-made snow, he said, is light and can be pressed into a snowball without oozing water.

He has another, very unscientific method for testing his machine-spewed snow: He tosses it against his arm to see how it bounces off his sleeve. "There's an art to making snow," Burghard said.

In the past, snow-making was a labor-intensive task that involved teams of workers taking temperature and humidity readings throughout the night.

If the conditions were right for snow-making, workers would ride snowmobiles up the mountains to switch on snow guns, which were often powered by diesel air compressors and connected to high-pressure air and water hoses bordering ski runs.

But temperatures at different spots on a mountain can vary by several degrees, making it difficult for resort operators to gauge when and where to activate the snow guns.

Modern snow-making guns use less energy than older systems, relying on a combination of portable compressors and energy-efficient fans.

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Cardinal George: Doctors 'couldn't find any evidence of cancer'

Medical tests have shown that Chicago's Cardinal Francis George appears to be free of cancer, he said in a wide-ranging interview, though doctors have advised the Roman Catholic archbishop to skip two Christmas Day traditions dear to him.

Because months of treatment have taken a toll on his immune system, George will miss celebrating Mass with inmates at the Cook County Jail and visiting Lurie Children's Hospital to comfort young patients who can't be home on Christmas Day. Instead he will celebrate midnight Mass at Holy Name Cathedral downtown, followed by a quiet day at home with family.

“The first tests they did halfway through were quite successful,” George, 75, said during an interview this week at his residence. He has been undergoing chemotherapy since September, shortly after doctors discovered cancerous cells on his liver and a kidney. He expects to be finished with chemotherapy in early January.

“They were quite surprised. It looked good,” he said. “But then they always say there are always things we can't see. But otherwise, they were very encouraged that they couldn't find any evidence of cancer where they found it before.”

With rosy cheeks and a broad smile, George, who battled bladder cancer six years ago, praised the steroids that doctors had prescribed to reduce inflammation during his treatment, joking that he now understands why athletes succumb to the temptation. But he also expressed disappointment that fatigue has kept him from composing a pastoral letter about the customs he believes bind Catholics together despite polarization in the pews about issues such as gay marriage.

“The important thing is to keep us together as much as we possibly can so that people aren't hurt and that we have a just society,” he said. “And not just a just society but a society that's loving in some fashion. … It's not as if we're falling apart, but the challenges keep shifting.”

`It's poison'

Though he has encountered extreme exhaustion and relied on steroids to help boost his strength, George said he has managed to escape many of the side effects commonly associated with chemotherapy.

“I have some bad days, but most days are pretty good,” he said. “It's poison. They tell you that `we're poisoning you.’ But it's controlled. A lot of people have gone through this. I hear from them.”

By eating a balanced diet of meat, cooked or peeled vegetables, antioxidants and peanut butter (his favorite comfort food), he has followed doctors' orders to put on weight. He also drinks asparagus juice three times a day, served by the Polish nuns who prepare his meals and insist on the gloppy green potion's healing powers.

“It can't harm me,” George said.

He's not sure he can say the same about one letter writer's recommendation to eat live Brazilian bugs -- a suggestion he appreciated but didn't try. He also expressed gratitude for the prayers and letters from the community and cancer patients who have shared stories and encouragement.

“I am truly grateful for people who have prayed for me. I'm really humbled by that,” George said. “People have written to me to share their own stories of chemotherapy. It's a big club. It makes it easier to know that a lot of people are facing difficulties certainly far worse than mine. … When you're in difficulty, people's kindness comes through.”

Though he prays the rosary daily, he said he has prayed it with greater fervor since his diagnosis in August. Every declaration of “Hail Mary,” which ends with “Pray for us sinners now and at the hour of our death,” has taken on new weight, he said. Since recovering from polio as a young boy, George has believed in the intercession of the Virgin Mary in his life.

“I say it with new meaning now, more slowly, with more emotion,” he said. “I have a potentially lethal disease, so that prayer takes on new meaning when I say it. There's a greater depth of feeling along with the prayer, proximity to God and therefore trust -- like a child trusting in his mother.”

“There's a moment in everybody's life that we're going to die,” George said. “That's part of God's providence, too. I'd at least like to prepare for that, so I can finish a few things.”

Life of church `more fragile'

George said he had hoped a lighter public schedule during his treatment would allow him to finish at least one personal project -- a pastoral letter about Catholic customs such as celebrating Mass on Sundays, fasting from meat on Fridays and performing other public devotions. The letter would be based on an ongoing conversation with the Archdiocesan Pastoral Council about struggles parishioners encounter when trying to embody their faith.

“The sense of our way of life as a set of customs is something we should think about because when we disagree about ideas or about rules, the customs keep you together,” he said. “If the customs aren't there any longer, then it becomes a very contentious place, which it often is now.”

The need for the letter has become more urgent in recent years, George said, as debates about gay marriage and contraception have become more heated and society has become more secularized, leading the faithful to make their religious practice a more private affair.

“What does it mean when you're no longer considered the glue that holds society together but rather a source of discord in society?” he said. “We have to rethink a lot of things. It's a different situation for us. But one response is saying this is how Christians live. This is our customary way of life. … I don't know that life is any more problematic or contentious than it has been for the last 50 years … but it certainly does seem the life of the church is more fragile.”

mbrachear@tribune.com

Twitter @TribSeeker

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Proper jailbreak for iOS 6 reportedly coming December 22nd

The speed at which a jailbreak for a new iOS device is released has slowed down considerably over the last few years. A tethered jailbreak  for devices running iOS 6 has been out September, but most people have been holding out for the untethered version – a hack that doesn’t erase everything upon reboot. A new jailbreak developer called “Dream JB” claims he will release a proper untethered jailbreak for devices running iOS 6 or 6.0.1 including the iPhone 5, iPad mini and iPad 4 on December 22nd. Dream JB also promises to release a video on Wednesday as proof. According to his website’s FAQ page, the jailbreak will be a one-click process and will differ from previous jailbreak methods in the past by using a prepared “Webkit exploit” and “userland exploit.” After it’s all done, Cydia, the App Store’s alternative for jailbroken smartphones, can be installed on the device. Unfortunately, the jailbreak won’t support Apple TV boxes.

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Legendary Indian sitarist, composer Ravi Shankar dead at 92

LOS ANGELES (Reuters) – Sitarist and composer Ravi Shankar, who helped introduce the sitar to the Western world through his collaborations with The Beatles, died in Southern California on Tuesday, his family said. He was 92.

Shankar, a three-time Grammy winner with legendary appearances at the 1967 Monterey Festival and at Woodstock, had been in fragile health for several years and last Thursday underwent surgery, his family said in a statement.

“Although it is a time for sorrow and sadness, it is also a time for all of us to give thanks and to be grateful that we were able to have him as a part of our lives,” the family said. “He will live forever in our hearts and in his music.”

In India, Prime Minister Manmohan Singh‘s office posted a Twitter message calling Shankar a “national treasure and global ambassador of India‘s cultural heritage.”

“An era has passed away with … Ravi Shankar. The nation joins me to pay tributes to his unsurpassable genius, his art and his humility,” the Indian premier added.

Shankar had suffered from upper respiratory and heart issues over the past year and underwent heart-valve replacement surgery last week at a hospital in San Diego, south of Los Angeles.

The surgery was successful but he was unable to recover.

“Unfortunately, despite the best efforts of the surgeons and doctors taking care of him, his body was not able to withstand the strain of the surgery. We were at his side when he passed away,” his wife Sukanya and daughter Anoushka said.

Shankar lived in both India and the United States. He is also survived by his daughter, Grammy-winning singer Norah Jones, three grandchildren, and four great-grandchildren.

Shankar performed his last concert with his daughter Anoushka on November 4 in Long Beach, California, the statement said. The night before he underwent surgery, he was nominated for a Grammy for his latest album “The Living Room Sessions, Part 1.”

‘NORWEGIAN WOOD’ TO ‘WEST MEETS EAST’

His family said that memorial plans will be announced at a later date and requested that donations be made to the Ravi Shankar Foundation.

Shankar is credited with popularizing Indian music through his work with violinist Yehudi Menuhin and The Beatles in the late 1960s, inspiring George Harrison to learn the sitar and the British band to record songs like “Norwegian Wood” (1965) and “Within You, Without You” (1967).

His friendship with Harrison led him to appearances at the Monterey and Woodstock pop festivals in the late 1960s, and the 1972 Concert for Bangladesh, becoming one of the first Indian musicians to become a household name in the West.

His influence in classical music, including on composer Philip Glass, was just as large. His work with Menuhin on their “West Meets East” albums in the 1960s and 1970s earned them a Grammy, and he wrote concertos for sitar and orchestra for both the London Symphony Orchestra and the New York Philharmonic.

Shankar served as a member of the upper chamber of the Parliament of India, from 1986 to 1992, after being nominated by then Indian Prime Minister Rajiv Gandhi.

A man of many talents, he also wrote the Oscar-nominated score for 1982 film “Gandhi,” several books, and mounted theatrical productions.

He also built an ashram-style home and music center in India where students could live and learn, and later the Ravi Shankar Center in Delhi in 2001, which hosts an annual music festival.

Yet his first brush with the arts was through dance.

Born Robindra Shankar in 1920 in India‘s holiest city, Varanasi, he spent his first few years in relative poverty before his eldest brother took the family to Paris.

For about eight years, Shankar danced in his brother’s Indian classical and folk dance troupe, which toured the world. But by the late 1930s he had turned his back on show business to learn the sitar and other classical Indian instruments.

Shankar earned multiple honors in his long career, including an Order of the British Empire (OBE) from Britain’s Queen Elizabeth for services to music, the Bharat Ratna, India‘s highest civilian award, and the French Legion d’Honneur.

(Editing by Eric Walsh)

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HSBC to pay record $1.9B fine

British-owned bank HSBC is paying $1.9B to settle a US money-laundering probe. The bank was investigated for involvement in the transfer of funds from Mexican drug cartels and sanctioned nations like Iran. (Dec. 11)

HSBC has agreed to pay a record $1.92 billion fine to settle a multi-year probe by U.S. prosecutors, who accused Europe's biggest bank of failing to enforce rules designed to prevent the laundering of criminal cash.

The U.S. Justice Department on Tuesday charged the bank with failing to maintain an effective program against money laundering and conduct due diligence on certain accounts.

In documents filed in federal court in Brooklyn, it also charged the bank with violating sanctions laws by doing business with Iran, Libya, Sudan, Burma and Cuba.

HSBC Holdings Plc admitted to a breakdown of controls and apologised for its conduct.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes," said Chief Executive Stuart Gulliver.

"Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

The bank agreed to forfeit $1.256 billion and retain a compliance monitor to resolve the charges through a deferred-prosecution agreement.

The settlement offers new information about failures at HSBC to police transactions linked to Mexico, details of which were reported this summer in a sweeping U.S. Senate probe.

The Senate panel alleged that HSBC failed to maintain controls designed to prevent money laundering by drug cartels, terrorists and tax cheats, when acting as a financier to clients routing funds from places including Mexico, Iran and Syria.

The bank was unable to properly monitor $15 billion in bulk cash transactions between mid-2006 and mid-2009, and had inadequate staffing and high turnover in its compliance units, the Senate panel's July report said.

HSBC on Tuesday said it expected to also reach a settlement with British watchdog the Financial Services Authority. The FSA declined to comment.

U.S. and European banks have now agreed to settlements with U.S. regulators totalling some $5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.

No bank or bank executives, however, have been indicted, as prosecutors have instead used deferred prosecutions - under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing behaviour.

HSBC's settlement also includes agreements or consent orders with the Manhattan district attorney, the Federal Reserve and three U.S. Treasury Department units: the Office of Foreign Assets Control, the Comptroller of the Currency and the Financial Crimes Enforcement Network.

HSBC said it would pay $1.921 billion, continue to cooperate fully with regulatory and law enforcement authorities, and take further action to strengthen its compliance policies and procedures. U.S. prosecutors have agreed to defer or forego prosecution.

The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to better monitor suspicious transactions. Directives by regulators to improve oversight came in 2003 and again in 2010.

Last month, HSBC told investors it had set aside $1.5 billion to cover fines or penalties stemming from the inquiry and warned that costs could be significantly higher.

Analyst Jim Antos of Mizuho Securities said the settlement costs were "trivial" in terms of the company's book value.

"But in terms of real cash terms, that's a huge fine to pay," said Antos, who rates HSBC a "buy".

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Fare hikes, elimination of bus routes focus of CTA budget hearing

The second CTA fare hike in five years and a controversial plan that eliminates at least a dozen bus routes to free up money to add service on more crowded buses and trains were the focus of a public hearing Monday night on the CTA’s proposed 2013 budget.

The overwhelming majority of the 191 people who attended, amid tighter than usual security at CTA headquarters, wore yellow T-shirts calling on the CTA board to reverse its earlier decision to shorten the No. 11 Lincoln/Sedgwick bus route.

Pleas and demands to save the No. 11 bus route dominated the testimony. The  No. 11 route is being cut between Western and Fullerton avenues as part of a $16 million crowding-reduction plan that is slated to take effect Sunday.

Allan Mellis, a community activist in Lincoln Square, asked the CTA board to amend next year’s budget to find funds to restore the No. 11, which provides 5,800 rides on an average weekday, according to the CTA.

Ald. Ameya Pawar, whose 47th ward would lose a chunk of the No. 11 route, asked for time to work out a solution, including the possibility of using excess TIF funds from his ward. The CTA should not “fix a fiscal issue only to create a social problem” in terms of the toll the loss of No. 11 service would have on senior citizens and people living on fixed incomes, Pawar said.

The $1.39 billion CTA budget for next year erases a projected deficit by raising fares a total of $56 million and introducing $60 million in savings from labor unions and more than $50 million in management cuts and reforms, officials said.

But the price of one-day, three-day, seven-day and 30-day passes will increase effective Jan. 14 under the plan, while the full base fare will be frozen at $2.25 on the rail system and $2 on buses if transit cards are used to pay fares, or $2.25 for cash bus fares.

Reduced fares and passes for senior citizens and disabled people will also increase, and reduced fares for students will decline by 10 cents.

In addition, it will cost $5 instead of $2.25 to ride the Blue Line from O'Hare International Airport if a pass is not used.

No major service cuts or CTA employee layoffs will be needed to balance the budget, officials said.

CTA President Forrest Claypool said the changes in next year’s budget deliver fiscal stability to the agency’s operating budget and prevent the need for more fare increases over perhaps a decade.

The CTA, however, faces an estimated $15.9 billion backlog in major capital improvements to bring stations, tracks, viaducts and other infrastructure as well as buses and trains to a state of good repair over the next 10 years, according to a study commissioned by the Regional Transportation Authority.

A crowding-reduction initiative that is scheduled to begin Sunday  will cancel 12 bus routes and shorten two others. In addition, nine privately contracted CTA routes would be eliminated if subsidies provided by businesses aren't increased, officials said.

More service will be added to 48 bus routes and six of the eight rail lines with the goal of speeding travel times and making the ride more comfortable by reducing crowding by 10 percent to 15 percent during rush periods, according to the transit agency.

At Monday’s meeting, William Scott, a retired teacher who lives in Drexel Square, said other bus routes besides No. 11 suffer from serious problems too. He said it's difficult to find a seat on the No. 4 Cottage Grove bus.

Claypool responded that service will be added on the No. 4 under the de-crowding plan.
Neither Claypool nor CTA board Chairman Terry Peterson spoke about the possibility of altering the budget or the de-crowding plan.

Other people who testified complained about the CTA plan to more than double the fare, to $5, for trips beginning at O'Hare on the Blue Line.

Marge Demora, who works for United Airlines at the airport, said “it’s discrimination to single out O'Hare fares.” She said workers at restaurants and other jobs that pay minimum wages at the airport will be the hardest hit.

On buses that typically carry 70 passengers, the new target will be 45 to 55 passengers per bus, CTA officials said. Rail cars packed with 90 or more riders at maximum capacity are expected to have 70 to 75 passengers, officials said.

CTA officials said service will be increased on bus and rail routes used by 76 percent of the CTA’s total ridership.

But the bus service cuts, which the CTA board has already approved, have sparked vocal protests from some riders, particularly those who are rallying to save the No. 145 Wilson/Michigan Express and the No. 11 Lincoln/Sedgwick bus route, which is slated to stop operating between Western and Fullerton. CTA officials said the No. 11 service is redundant with the Brown Line between Fullerton and Western. A new route, the No. 37 Sedgwick, will be created.

jhilkevitch@tribune.com

Twitter @jhilkevitch

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