Wall Street flat near highs as investors seek catalysts

NEW YORK (Reuters) - Stocks were little changed on Monday as investors scrambled to find catalysts to move the market higher after a six-weeks-long advance that has taken the S&P 500 index near record highs.


The benchmark index is up more than 6 percent so far this year after a steep rally in January that has stalled as the S&P and Dow industrials near multiyear highs.


Trading volume was relatively low, which could make the market volatile and exaggerate moves.


Google Inc shares fell 0.9 percent at $777.94 after the company said in a filing former chief executive Eric Schmidt is selling roughly 42 percent of his Google stake, a move that could potentially net him $2.51 billion.


But the decline was offset by gains in Apple , up 1.8 percent at $483.68 after a New York Times report that the iPhone maker is experimenting with the design of a device similar to a wristwatch.


"It's really the valuation and indications that the economy is improving that have pushed the market higher. We would have to see a probable correction before heading higher and that could come from weak economic data in the future," said Tim Ghriskey, chief investment officer at Solaris Asset Management.


No economic data or major earnings reports are scheduled for Monday, but Federal Reserve Vice Chairwoman Janet Yellen is due to speak about the economic recovery at 1 p.m. On Tuesday, President Barack Obama will describe his plan for spurring the economy in his State of the Union address. He is expected to offer proposals for investment in infrastructure, manufacturing, clean energy and education.


The Dow Jones industrial average <.dji> was down 18.09 points, or 0.13 percent, at 13,974.88. The Standard & Poor's 500 Index <.spx> was down 0.71 point, or 0.05 percent, at 1,517.22. The Nasdaq Composite Index <.ixic> was down 2.32 points, or 0.07 percent, at 3,191.55.


Upbeat U.S. and Chinese data last week helped the S&P 500 extend its weekly winning streak to six.


Opposition has grown to the $24.4 billion buyout of Dell Inc , the No. 3 personal computer maker, as three of the largest investors joined Southeastern Asset Management on Friday in raising objections. Dell said in a regulatory filing it had considered many strategic options before opting to go private in a buyout led by Chief Executive Michael Dell.


Dell shares hovered near $13.65, the buyout offer price.


Regeneron Pharmaceuticals Inc shares jumped 3.9 percent at $172.39 after it said longtime drug development partner Sanofi plans to boost its stake in Regeneron by open market purchases of its stock.


(Reporting By Angela Moon)



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Eagles, QB Vick agree to restructured deal


PHILADELPHIA (AP) — Quarterback Michael Vick, who was slated to earn $16 million next season, has agreed to a restructured deal with the Philadelphia Eagles.


Vick, who was injured and inconsistent last season, eventually giving way to rookie Nick Foles, now has a three-year contract, and will compete with Foles to see who runs new coach Chip Kelly's offense this season.


Vick, who returned to start the season finale vs. the New York Giants in December because Foles was injured, finished the season with 2,362 yards passing, 12 touchdowns and 10 interceptions. The Eagles finished 4-12 and in last place in the NFC East.


Andy Reid was fired as coach the day after the season ended, and Kelly was hired last month. Vick, who will be 33 when next season begins, is still elusive when healthy, and seems equipped to run Kelly's aggressive, up-tempo offense that he is bringing to the Eagles from Oregon.


Either way, Kelly was noncommittal at his opening press conference on Jan. 17 on the quarterback situation.


"I'm going to look at everybody," he said. "If you can throw the ball and run, I'm going to take you out there. We're going to look at everything we can do to put the best product on the field and that's what it's all about. I've followed Michael's career and I understand what a talent he is. But there is nothing that's on the board right now, there's nothing that's off the board right now.


Vick was signed by Philadelphia in 2009, and became the starter in 2010. He led the Eagles that season to an NFC East title, and a memorable 38-31 December win over the Giants in which he rallied the team from a 21-point deficit.


"Our sole focus and goal is that we're going to put an offense on the field that's going to score points," Kelly said. "That's basically what we're going to do and whoever that is, I don't know that. There's nobody ruled in, there's nobody ruled out."


All told, Vick has started 35 games for Philadelphia over the last three seasons. Foles has started six. The Eagles scored just 280 points last season as they endured an eight- and a three-game losing streak. Only Arizona (250) scored fewer in the NFC.


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What beats Grammy? Immortality













Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time








STORY HIGHLIGHTS


  • Bob Greene: Grammy nominated acts should remember the real prize comes later in life

  • He says at a hotel he ran into a group of singing stars from an earlier era, in town for a show

  • He says the world of post-fame touring less glamorous for acts, but meaningful

  • Greene: Acts grow old, but their hits never will and to fans, the songs are time-machine




Editor's note: CNN Contributor Bob Greene is a best-selling author whose 25 books include "When We Get to Surf City: A Journey Through America in Pursuit of Rock and Roll, Friendship, and Dreams"; "Late Edition: A Love Story"; and "Once Upon a Town: The Miracle of the North Platte Canteen."


(CNN) -- Memo to Carly Rae Jepsen, Frank Ocean, Hunter Hayes, Mumford & Sons, Miguel, the Alabama Shakes and all the other young singers and bands who are nominated for Sunday night's Grammy Awards:


Your real prize -- the most valuable and sustaining award of all -- may not become evident to you until 30 or so years have passed.


You will be much older.


But -- if you are lucky -- you will still get to be out on the road making music.



Bob Greene

Bob Greene



Many of Sunday's Grammy nominees are enjoying the first wave of big success. It is understandable if they take for granted the packed concert venues and eye-popping paychecks.


Those may go away -- the newness of fame, the sold-out houses, the big money.


But the joy of being allowed to do what they do will go on.


I've been doing some work while staying at a small hotel off a highway in southwestern Florida. One winter day I was reading out on the pool deck, and there were some other people sitting around talking.


They weren't young, by anyone's definition. They did not seem like conventional businessmen or businesswomen on the road, or like retirees. There was a sense of nascent energy and contented anticipation in their bearing, of something good waiting for them straight ahead. A look completely devoid of grimness or fretfulness, an afternoon look that said the best part of the day was still to come.


I would almost have bet what line of work they were in. I'd seen that look before, many times.


I could hear them talking.


Yep.


The Tokens ("The Lion Sleeps Tonight," a No. 1 hit in 1961).




Little Peggy March ("I Will Follow Him," a No. 1 hit in 1963).


Little Anthony and the Imperials ("Tears on My Pillow," a top 10 hit in 1958).


Major singing stars from an earlier era of popular music, in town for a multi-act show that evening.


It is the one sales job worth yearning for -- carrying that battered sample case of memorable music around the country, to unpack in front of a different appreciative audience every night.


It's quite a world. I was fortunate enough to learn its ins and outs during the 15 deliriously unlikely years I spent touring the United States singing backup with Jan and Dean ("Surf City," a No. 1 hit in 1963) and all the other great performers with whom we shared stages and dressing rooms and backstage buffets:


Chuck Berry, Martha and the Vandellas, Jerry Lee Lewis, Little Richard, the Everly Brothers, James Brown, Lesley Gore, Freddy "Boom Boom" Cannon, the Kingsmen, the Drifters, Fabian, the Coasters, Little Eva, the Ventures, Sam the Sham. ...


Jukebox names whose fame was once as fresh and electric as that now being savored by Sunday's young Grammy nominees.


Decades after that fame is new, the road may not be quite as glamorous, the crowds may not be quite as large. The hours of killing time before riding over to the hall, the putrid vending-machine meals on the run, the way-too-early-in-the-morning vans to the airport -- the dreary parts all become more than worth it when, for an hour or so, the singers can once again personally deliver a bit of happiness to the audiences who still adore their music.


Greene: Super Bowl ad revives iconic voice


As the years go by, the whole thing may grow complicated -- band members come and go, they fight and feud, some quit, some die. There are times when it seems you can't tell the players without a scorecard -- the Tokens at the highway hotel were, technically and contractually, Jay Siegel's Tokens (you don't want to know the details). One of their singers (not Jay Siegel -- Jay Traynor) was once Jay of Jay and the Americans, a group that itself is still out on the road in a different configuration with a different Jay (you don't want to know).


But overriding all of this is a splendid truism:


Sometimes, if you have one big hit, it can take care of you for the rest of your life. It can be your life.


Sunday's young Grammy nominees may not imagine, 30 years down the line, still being on tour. But they -- the fortunate ones -- will come to learn something:


They will grow old, but their hits never will -- once people first fall in love with those songs, the songs will mean something powerful and evocative to them for the rest of their lives.


And as long as there are fairground grandstands on summer nights, as long as there are small-town ballparks with stages where the pitcher's mound should be, the singers will get to keep delivering the goods.


That is the hopeful news waiting, off in the distance, for those who will win Grammys Sunday, and for those who won't be chosen.


On the morning after that pool-deck encounter in Florida I headed out for a walk, and in the parking lot of the hotel I saw one of the Tokens loading his stage clothes into his car.


His license plate read:


SHE CRYD


I said to him:


"You sing lead on 'She Cried,' right?"


"Every night," he said, and drove off toward the next show.


The next show.


That's the prize.


That's the trophy, right there.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Bob Greene.






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Cardinal George: Pope showing 'great courage' in stepping down









Cardinal Francis George said today that Pope Benedict XVI "placed the will of God for the good of the church before every other consideration" when he decided to step down.


"He has taught with clarity and charity what God has revealed to the world in Christ, he has handed on the apostolic faith, he has loved all of God’s people with all his heart," George said in a statement. "He has now shown great courage in deciding, after prayer and soul-searching, to resign his office at the end of this month.
 
"With the gratitude of sons and daughters in our hearts, we ask the Lord to bless him and give him strength, as we begin to pray now for the one who will succeed him as Bishop of Rome, Successor of Peter and Vicar of Christ."


Joliet Bishop Daniel Conlon said the pope's decision "is consistent with the humble disposition that I have come to recognize in him, both in my brief personal encounters with him and in his deportment generally as earthly shepherd of the church.

"He recognized that he no longer had the physical gifts necessary to carry out an office that becomes increasingly demanding," Conlon said. "He has been a steady and calm presence in the face of tumult in the world.  He has persevered in Blessed John Paul II’s determination to confront the scandal of child abuse in the church."








Pope Benedict shocked the world by saying he no longer had the mental and physical strength to cope with his ministry, in an announcement that left his aides "incredulous" and will make him the first pontiff to step down since the Middle Ages.

The German-born pope, 85, admired as a hero by conservative Roman Catholics and viewed with suspicion by liberals, told cardinals in Latin that his strength had deteriorated recently. He will step down on Feb. 28 and the Vatican expects a new Pope to be chosen by the end of March.


Vatican spokesman Father Federico Lombardi said the pope had not decided to resign because of "difficulties in the papacy" and the move had been a surprise, indicating that even his inner circle was unaware that he was about to quit.

A priest at St. Peter's Church in the Loop said the news is "surprising but not terrifying," saying it will allow the church to continue to renew itself.

“It’s a new beginning and a chance for new energy in the church,” said the Rev. Ed Shea. "This is good news.”

The selection of a new pope will offer the church the chance to continue its emergence into the “the modern light, the modern world,” Shea said. 

It will also provide a chance to choose a pope from Africa or South America, he said, to reflect the growth of the church on those continents.

“I was shocked, like everybody else,” Father Ed Shea said.  “It kind of surprised me that we didn’t know about it ahead of time.”

As worshipers left a morning mass at St. Peter’s this morning, several said the pope’s announcement had caught them completely by surprise.

“I hadn’t read anything leading up to it about that he was failing in health or anything like that,” said Michael Muldoon of La Grange. “I knew he was in his mid-80s, but I didn’t know that it was coming.”

Asked about the selection of Benedict’s successor, Muldoon said he’d like to see a more youthful pope, “someone a little more forward thinking, someone a little more accepting.”

At St. Alphonsus Church, which still offers a Sunday mass in German, parishioners said they were stunned by the resignation.

Errol Kunz, a 65-year-old retiree who lives by the church in Lakeview, said the Rev. Michael O'Connell mentioned the news at the beginning of the 8:30 a.m. Mass.

"I was shocked," Kunz said. "I couldn't believe it."

Others had heard about the resignation when they woke up.

When a news alert flashed on her phone around 7 a.m., Kathleen Falk said she was confused. "I always thought the popes don't retire," said Falk, a 27-year-old nurse who has been attending St. Alphonsus for five years.

"If you can't fulfill the duties to guide the church, then you can't argue with that," Falk added.

Ian McBride, a 29-year-old social worker who has been going to St. Alphonsus for a few years, called it a "measure of humility" that the pope could recognize his health issues and step down.

For the pope's legacy, "time will tell," McBride said. "In the American church, dealing with the abuse and all that — he took that personally. . .He seemed to be very genuine and ashamed of how things happened."


Contributing: Reuters





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Pope's sudden resignation sends shockwaves through Church


VATICAN CITY (Reuters) - Pope Benedict said in a historic announcement he no longer had the mental and physical strength to run the Roman Catholic Church and would become the first pontiff in more than 700 years to resign, leaving his inner circle "incredulous".


Church officials tried to relay a climate of calm confidence in the running of a 2,000-year-old institution but the decision could lead to one of the most uncertain and unstable periods in centuries for a Church besieged by scandal and defections.


The Church has been rocked during Benedict's nearly eight-year papacy by child sexual abuse crises and Muslim anger after the pope compared Islam to violence. Jews were upset over rehabilitation of a Holocaust denier and there was scandal over the leaking of the pope's private papers by his personal butler.


In the announcement read to cardinals in Latin, the German-born pope, 85, said: "Well aware of the seriousness of this act, with full freedom I declare that I renounce the ministry of Bishop of Rome, Successor of St Peter ...


"As from 28 February 2013, at 20:00 hours (2 p.m. ET) the See of Rome, the See of St. Peter will be vacant and a conclave to elect the new Supreme Pontiff will have to be convoked by those whose competence it is."


The pope, known for his conservative doctrine, did not intend to influence the decision of the cardinals who will enter a secret conclave to elect a successor, Vatican spokesman Father Lombardi Federico said.


Benedict stepped up the Church's opposition to gay marriage, underscored the Church's resistance to a female priesthood and to embryonic stem cell research.


A new leader of the world's 1.2 billion Roman Catholics could be elected as soon as Palm Sunday, on March 24 and be ready to take over by Easter a week later, he said.


EX-POPE AND REIGNING POPE


Lombardi said the pope did not fear a possible "schism" but several popes in the past, including Benedict's predecessor John Paul, refrained from stepping down precisely because of the confusion and division that could be caused by having an "ex-pope" and a reigning pope living at the same time.


This could create a particularly difficult problem if the next pope is a progressive who influences such teachings as the ban on women priests and artificial birth control and its insistence on a celibate priesthood.


"This is disconcerting, he is leaving his flock," said Alessandra Mussolini, a parliamentarian who is granddaughter of Italy's wartime dictator.


"The pope is not any man. He is the vicar of Christ. He should stay on to the end, go ahead and bear his cross to the end. This is a huge sign of world destabilization that will weaken the Church."


The pope's elder brother Georg Ratzinger, a frail 89-year-old priest who shares the pope's passion for music, told reporters in the Bavarian town of Regensburg where he once conducted the cathedral choir that he had been "very surprised" to learn of his brother's resignation.


"He alone can evaluate his physical and emotional strength," said Ratzinger.


Lombardi said Benedict would first go to the papal summer residence south of Rome and then move into a cloistered convent inside the Vatican walls. It was not clear if Benedict would have a public life.


The last Pope to resign willingly was Celestine V in 1294 after reigning for only five months, his resignation was known as "the great refusal" and was condemned by the poet Dante in the "Divine Comedy". Gregory XII reluctantly abdicated in 1415 to end a dispute with a rival claimant to the papacy.


NO SPECIFIC ILLNESS, NO DEPRESSION


Lombardi said Benedict's decision showed "great courage". He ruled out any specific illness or depression and said the decision was made in the last few months "without outside pressure".


While the pope had slowed down recently - he started using a cane and a wheeled platform to take him up the long aisle in St Peter's Square - he had given no hint recently that he was mulling such a dramatic decision.


"I am really surprised," said Ricardo Rodriguez, a Portuguese tourist in St Peter's Square. "I hope the next pope can be better than this one doing the best for the world and Catholics," he said.


Elected in 2005 to succeed the enormously popular John Paul, Benedict never appeared to feel comfortable in a job he said he never wanted. He had wanted to retire to his native Germany to pursue his theological writings, something which he will now do from a convent inside the Vatican.


The resignation means that cardinals from around the world will begin arriving in Rome in March and after preliminary meetings, lock themselves in a secret conclave.


There has been growing pressure on the Church for the cardinals to shun European contenders and choose a pope from the developing world in order to better reflect parts of the globe where most Catholics live and where the Church is growing.


"MIND AND BODY"


The pope told the cardinals that in order to govern "...both strength of mind and body are necessary, strength which in the last few months, has deteriorated in me to the extent that I have had to recognize my incapacity to adequately fulfill the ministry entrusted to me."


He referred to "today's world, subject to so many rapid changes and shaken by questions of deep relevance for the life of faith".


Before he was elected pope, the former Cardinal Joseph Ratzinger, was known by such critical epithets as "God's rottweiler" because of his stern stand on theological issues.


After a few months, he showed his mild side but he never drew the kind of adulation that had marked the 27-year papacy of his predecessor John Paul.


The Archbishop of Canterbury, leader of the worldwide Anglican communion at odds with the Vatican over women priests, said he had learned of the pope's decision with a heavy heart but complete understanding.


German Chancellor Angela Merkel said the pope's decision must be respected if he feels he is too weak to carry out his duties. British Prime Minister David Cameron said: "He will be missed as a spiritual leader to millions."


Elected to the papacy on April 19, 2005 when he was 78 - 20 years older than John Paul was when he was elected - Benedict ruled over a slower-paced, more cerebral and less impulsive Vatican.


CHEERS AND SCANDAL


But while conservatives cheered him for trying to reaffirm traditional Catholic identity, his critics accused him of turning back the clock on reforms by nearly half a century and hurting dialogue with Muslims, Jews and other Christians.


Under the German's meek demeanor lay a steely intellect ready to dissect theological works for their dogmatic purity and debate fiercely against dissenters.


After appearing uncomfortable in the limelight at the start, he began feeling at home with his new job and showed that he intended to be pope in his way.


Despite great reverence for his charismatic, globe-trotting predecessor -- whom he put on the fast track to sainthood and whom he beatified in 2011 -- aides said he was determined not to change his quiet manner to imitate John Paul's style.


A quiet, professorial type who relaxed by playing the piano, he managed to show the world the gentle side of the man who was the Vatican's chief doctrinal enforcer for nearly a quarter of a century.


The first German pope for some 1,000 years and the second non-Italian in a row, he travelled regularly, making about four foreign trips a year, but never managed to draw the oceanic crowds of his predecessor.


The child abuse scandals hounded most of his papacy. He ordered an official inquiry into abuse in Ireland, which led to the resignation of several bishops.


Scandal from a source much closer to home hit in 2012 when the pontiff's butler, responsible for dressing him and bringing him meals, was found to be the source of leaked documents alleging corruption in the Vatican's business dealings, causing an international furor.


Benedict confronted his own country's past when he visited the Nazi death camp at Auschwitz.


Calling himself "a son of Germany", he prayed and asked why God was silent when 1.5 million victims, most of them Jews, died there during World War Two.


Ratzinger served in the Hitler Youth during World War Two when membership was compulsory. He was never a member of the Nazi party and his family opposed Adolf Hitler's regime.


(Philip Pullella; editing by Peter Millership, Ralph Boulton, Janet McBride)



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Analysis: Accounting risk clouds big U.S. business bets in China


NEW YORK/HONG KONG (Reuters) - Tales of shady business practices abound in China - fake revenues, phony invoices, sham factories - but until recently, the problem seemed confined mostly to Chinese companies.


No longer.


Concern is growing about risks to U.S.-based multinationals in a country where American audit regulators are locked out by the Chinese government and bribery and fraud are routine.


Questions about transparency and integrity weigh heavily on China, the world's second-largest economy, as it assumes greater economic leadership and responsibility. These doubts test its ability to adhere to international standards.


Stories of business deception - confirmed by corporate sleuths, former business executives, court filings and experts on accounting in China - are commonplace.


There was the Chinese company that billed itself as a high-tech television screen manufacturer, but had a factory that turned out to be a man selling fireworks from a shack.


Or there was the Chinese biodiesel plant that sat idle for months, then sprang to life one day - when investors showed up for a tour - only to fall silent again.


Last month, there was the scandal at a Chinese unit of Caterpillar Inc , the world's largest construction equipment manufacturer, based in Peoria, Illinois.


On January 18, Caterpillar disclosed "deliberate, multi-year, coordinated accounting misconduct" at the Siwei unit of ERA Mining Machinery. Caterpillar said it would write off most of the $654 million it had paid to acquire ERA only months earlier.


Caterpillar's Siwei stumble was not the first for a U.S. multinational in China, but the scope of the problem stood out.


Caterpillar has provided few details, but it has disclosed inventory discrepancies, inflated profits and improperly recorded costs and revenue at Siwei.


Caterpillar declined further comment.


Part of Caterpillar's problem may have been inadequate due diligence work prior to the ERA acquisition. Companies often try to keep fees down for this type of work, but in China that may be asking for trouble, says Paul Gillis, an accounting professor at Peking University in Beijing.


Acquiring firms typically do some of their own due diligence while also relying on deal advisers, legal experts and auditors. Due to the risks in China, efforts should be beefed up to uncover fraud, Gillis said. "When you start cutting corners on audits ... you're enabling those who commit fraud."


GOING FOR GROWTH


Of course, it is not as if the United States has not had its own share of egregious accounting frauds over the years. In 2001-2002, a series of major scandals involving the likes of Enron, WorldCom and Tyco shook the U.S. economy.


Legislation followed that strengthened oversight of auditing and accountability of companies' top officers. That has not stopped U.S. accounting fraud, but it has made it easier to identify and deter some of the most egregious behavior.


In China, where large U.S. corporations are making some very big bets, a new frontier of accounting risk is opening up.


Lured by an economy growing much more quickly than the United States, U.S. companies have directly invested $54 billion in Chinese businesses, factories and property, most of it in the past decade, according to U.S. Department of Commerce data.


Despite a cooling off of China's growth last year, demand from its massive consumer class is still lifting revenues at companies that range from coffee seller Starbucks Corp to casino operator Wynn Resorts .


The Caterpillar experience and the growing catalog of smaller instances of deception and abuse have some experts wondering if U.S. companies' Chinese results can be trusted.


Though China is shifting to a market economy, much business is still done on a handshake, China experts say. State secret laws hinder investigations by outsiders. Audits done in China of U.S. corporate units there cannot be inspected by U.S. regulators because the Chinese government refuses to allow them.


A former executive at a large, U.S.-based multinational active in China recalled the firm's auditor being fired for trying to correct improper accounting at a joint venture in China. Managers there were trying to book sales early, sometimes for unassembled products, to avoid a coming tax increase, said the executive, who asked not to be named. He said he had the auditor reinstated and the accounting changed.


Dealings with a Chinese joint venture did not end well for California-based RAE Systems Inc, which makes chemical detection monitors. It had to pay nearly $3 million to the U.S. government to settle complaints in 2010 that it did too little to stop bribery at a Chinese joint venture.


'RED FERRARI' TEST


Despite well-known risks in China, auditors there often are not inquisitive enough or alert to possible fraud, some experts say.


Auditors in China may pore tirelessly over documents and yet "fail to spot the red Ferrari parked on the doorstep and fail to ask who it belongs to, how it was paid for," said Peter Humphrey, founder of ChinaWhys, a Shanghai-based anti-fraud consultancy that has investigated white-collar crime and fraud at scores of multinational firms in China.


China experts said it is difficult to do business there without encountering demands for gifts or kickbacks.


Transparency International, a corruption watchdog, surveyed business executives who said Chinese firms in 2011 were second only to Russian companies in being most likely to pay bribes abroad.


But six U.S. companies, including technology group IBM and drugmaker Pfizer Inc , were charged by the U.S. Securities and Exchange Commission over the past two years for improper payments or gifts in China.


Retailer Wal-Mart Stores has said it is investigating allegations of bribery in China, among other countries, and cosmetics group Avon Products Inc is dealing with probes of possible bribery in China.


There have been plenty of other red flags. For example, U.S. regulators have deregistered dozens of Chinese companies listed on U.S. exchanges after fraud probes, and some major U.S. investors have been caught flat-footed.


Billionaire hedge fund manager John Paulson suffered big losses after a disastrous bet on Chinese forestry company Sino Forest. Sino Forest was rocked by allegations in 2011 that it falsified its timber assets and later filed for bankruptcy.


Chinese software company Longtop Financial Technologies was accused of seizing audit documents when its auditor, Shanghai-based Deloitte Touche Tohmatsu, tried to double-check cash amounts at the company's bank. Longtop admitted cash had been faked. It was deregistered by the SEC.


The U.S. Public Company Accounting Oversight Board, which is responsible for regulating auditors of U.S.-listed companies, has been trying to get access to China to inspect audits there. But China has resisted because of sovereignty concerns.


Being unable to inspect in China "continues to create a gaping hole in investor protection," James Doty, chairman of the Washington, D.C.-based PCAOB, said in a statement.


The PCAOB recently reached deals with France and Finland to inspect in those countries, adding to its growing list of cooperation agreements with 16 nations.


The SEC has hit a wall trying to get documents out of China to investigate fraud. In December the commission began legal proceedings against the Chinese affiliates of five of the world's biggest audit firms - Deloitte , Ernst & Young , KPMG BDO and PricewaterhouseCoopers - over their refusal to turn over audit papers for fear of violating state secrets laws.


Meanwhile, investment in China continues. Over the past five years, U.S. companies and investment groups have announced or completed about $25 billion of whole or partial acquisitions in China, according to Thomson Reuters data.


(Additional reporting by Lisa Baertlein in Los Angeles, Ernest Scheyder in New York, Clare Baldwin in Hong Kong; Editing by Kevin Drawbaugh and Dan Grebler)



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Paternos issue report, challenge Freeh's findings


STATE COLLEGE, Pa. (AP) — A report commissioned by Joe Paterno's family says the late coach did nothing wrong in his handling of the Jerry Sandusky child sex abuse scandal and portrays Paterno as the victim of a "rush to injustice" created by former FBI director Louis Freeh's investigation of the case for Penn State.


The family's critique, released Sunday, argues that the findings of the Freeh report published last July were unsupported by the facts.


Former U.S. Attorney General Dick Thornburgh, one of the experts assembled by the family's lawyer to review Freeh's report last year to Penn State, called the document fundamentally flawed and incomplete.


Freeh's report reached "inaccurate and unfounded findings related to Mr. Paterno and its numerous process-oriented deficiencies was a rush to injustice and calls into question" the investigation's credibility, Thornburgh was quoted as saying.


In a statement released Sunday through a spokesman, Freeh defended his work.


"I stand by our conclusion that four of the most powerful people at Penn State failed to protect against a child sexual predator harming children for over a decade," he said.


Paterno's family released what it billed as an exhaustive response to Freeh's work, based on independent analyses, on the website paterno.com.


"We conclude that the observations as to Joe Paterno in the Freeh report are unfounded, and have done a disservice not only to Joe Paterno and the university community," the family's report said, "but also to the victims of Jerry Sandusky and the critical mission of educating the public on the dangers of child sexual victimization."


Freeh's findings also implicated former administrators in university president Graham Spanier, athletic director Tim Curley and retired vice president Gary Schultz. Less than two weeks after the Freeh report was released in July, the NCAA acted with uncharacteristic speed in levying massive sanctions against the football program for the scandal.


"Taking into account the available witness statements and evidence, it is more reasonable to conclude that, in order to avoid the consequences of bad publicity, the most powerful leaders at Penn State University — Messrs. Spanier, Schultz, Paterno and Curley — repeatedly concealed critical facts relating to Sandusky's child abuse" from authorities, trustees and the university community, Freeh wrote in releasing the report.


The former administrators have vehemently denied the allegations. So, too, has Paterno's family, though it reserved more extensive comment until its own report was complete.


The counter-offensive began in earnest this weekend. The family's findings said that Paterno:


— Never asked or told anyone not to investigate an allegation made against Sandusky 12 years ago, Saturday, Feb. 9, 2001.


— Never asked or told former administrators not to report the 2001 allegation.


— And never asked or told anyone not to discuss or hide information reported by graduate assistant Mike McQueary about the 2001 allegation.


"Paterno reported the information to his superior(s) pursuant to his understanding of university protocol and relied upon them to investigate and report as appropriate," the family's analysis said.


Paterno's widow, Sue, broke her silence Friday in a letter to hundreds of former players informing them of the report's impending release. "The Freeh report failed and if it is not challenged and corrected, nothing worthwhile will have come from these tragic events," she wrote.


"I had expected to find Louis Freeh had done his usual thorough and professional job," Thornburgh said in a video posted on paterno.com. "I found the report to be inaccurate in some respects, speculative and unsupported to the record compiled ... in short, fundamentally flawed as to the determinations made to the role — if any — Mr. Paterno played in any of this."


Freeh was brought in to conduct an independent investigation of the school's response to allegations and find any shortcomings in governance and compliance to make sure failures don't happen again, Penn State said in a statement Sunday. Freeh made 119 recommendations to strengthen policies, and the majority have been implemented, according to the school.


University trustees and leaders have been criticized by some dissatisfied alumni, ex-players and community residents for their handling of Paterno's dismissal, the Freeh report and the sanctions.


"It is understandable and appreciated that people will draw their own conclusions and opinions from the facts uncovered in the Freeh report," the school said.


Freeh, in his report, said his team conducted 430 interviews and analyzed over 3.5 million emails and documents. The former federal judge said evidence showed Paterno was involved in an "active agreement to conceal" and his report cited email exchanges, which referenced Paterno, between administrators about allegations against Sandusky in 1998 and 2001.


According to Thornburgh's findings, Freeh's report relied on about 30 documents, including three notes authored by Paterno, and 17 emails. Four emails referenced Paterno — none sent by the octogenarian coach who notoriously shunned modern electronic technology.


Sandusky, 69, was sentenced to at least 30 years in prison in October after being convicted last summer of 45 criminal counts. Prosecutors said assaults occurred off and on campus, including the football building.


His arrest in November 2011 triggered the turmoil that led to Paterno's firing days later. Under pressure, Spanier left as president the same day. Curley was placed on administrative leave, while Schultz retired.


Spanier, Curley and Schultz are awaiting trial on obstruction and conspiracy, among other charges. They have maintained their innocence.


Critics have said that Freeh's team didn't speak with key figures including Curley, Schultz and Paterno, who died in January 2012 at age 85. The authors of the emails referenced in Freeh's report, which included Curley and Schultz, were not interviewed by Freeh, the family's analysis said.


Spanier spoke to Freeh six days before the report was released July 12.


"They missed so many key people. They didn't interview most of the key players, with the exception of President Spanier, who at the last minute we brought in and interviewed at a time when frankly the report ... was pretty well all prepared," Thornburgh said on the video.


Freeh said he respected the family's right to conduct a campaign to "shape the legacy of Joe Paterno," but called the critique self-serving. Paterno's attorney was contacted for an interview with the coach, he said, and Paterno spoke with a reporter and biographer before his death but not Freeh's team.


Curley and Schultz also declined numerous requests for interviews, Freeh said. They have been facing criminal charges since November 2011.


Freeh on Sunday cited grand jury testimony by Paterno in 2011 in which Paterno said a graduate assistant relayed to him the 2001 allegation against Sandusky of a "sexual nature" with a child.


He referred to a key point in the July report in which he said Spanier, Schultz and Curley drew up a plan that called for reporting Sandusky to the state Department of Public Welfare in 2001. But Curley later said in an email that he changed his mind "after giving it more thought and talking it over with Joe," according to Freeh's findings.


Said Freeh on Sunday: "These men exhibited a striking lack of empathy for Sandusky's victims by failing to inquire as to their safety and well-being, especially by not even attempting to determine the identity of the child" in the 2001 allegation.


The Paterno family report said Freeh chose not to "present alternative, more plausible, conclusions" about Paterno's actions. Their attorney, Wick Sollers, responded Sunday that Freeh didn't take the time to read the family's critique, or address accusations of procedural shortcomings.


"A failure to consider the facts carefully is exactly the problem our expert analysis highlights," Sollers said. "Everyone, including Mr. Freeh, should take the time to study this report."


Sue Paterno had directed Sollers, to review Freeh's report and her husband's actions. Sollers brought in Thornburgh, as well as former FBI profiler and special agent Jim Clemente, described as a child molestation and behavioral expert.


Also brought in was Dr. Fred Berlin, a psychologist from Johns Hopkins Hospital and School of Medicine whose profile lists him as the founder of the Johns Hopkins Sexual Disorders Clinic.


The analysis included interviews, including of Paterno before his death, as well as a review of documents and testimony and "information from our access to the lawyers for other Penn State administrators."


The Paterno family's analysis said Freeh's report turned into a platform for scapegoating Paterno rather than seizing on an opportunity to educate about identifying child sex abuse victims, and ignored "decades of expert research and behavioral analysis regarding the appropriate way to understand and investigate a child victimization case."


It said expert analysis showed Sandusky "fooled qualified child welfare professionals and law enforcement, as well as laymen inexperienced and untrained in child sexual victimization like Joe Paterno." The coach respected Sandusky as an assistant, but knew little about Sandusky's personal life, the analysis said, though Freeh's report "missed that they disliked each other personally, had very little in common outside work, and did not interact much if at all socially."


Actions by entities outside of Penn State were not a focus for Freeh's review. "This was an internal investigation into Penn State's response ... and that is how the University has utilized the report," the school said.


Penn State removed a bronze statue of Paterno outside Beaver Stadium on July 22. The next day, the NCAA in levying sanctions said Freeh's report revealed "an unprecedented failure of institutional integrity leading to a culture in which a football program was held in higher esteem."


The NCAA improperly relied on that report and never identified a rules infraction "based on Sandusky's crimes, much less an infraction by Penn State that implicated the NCAA's jurisdiction and core mission of ensuring competitive balance," the Paterno family report said.


An NCAA spokeswoman said the organization stood by its previous statements and declined comment Sunday.


A four-year bowl ban and steep scholarship cuts were included among the sanctions, while 111 wins between 1998 and 2011 under Paterno were vacated. It meant Paterno no longer holds the record for most wins by a major college coach.


Read More..

Women with No Fear Feel Panic in Experiments






Three women with an extremely rare type of brain damage had never felt fear in their adult lives. Snakes and scary movies didn’t do it for them. In fact, they couldn’t even recognize a fearful expression on someone else’s face. But when given a hit of carbon dioxide that made them feel like they couldn’t breathe, the women experienced something surprising and novel: They were panicked.


The amygdalae, a pair of almond-shaped structures buried deep inside the brain, are thought to be the mind’s storage center for fears. Damage across both of these nuggets of gray matter is uncommon, but the three women in this case study all suffer from Urbach-Wiethe disease, which has wasted away this part of their brains.






One of these patients, known only as SM, had been extensively studied before, and scientists had marveled at her lack of a response to frightening external stimuli in experiments. The woman, who is in her 40s, had also been in life-threatening and traumatic situations outside the lab. She was held up at knife point and at gun point, and she was nearly killed in an act of domestic violence, but none of these experiences induced fear.


One scary stimulus that the scientists hadn’t tested in their experiments with SM was carbon dioxide. Inhaling the gas, also referred to as CO2, can make you feel like you’re starved for air, and it’s been known to trigger panic attacks, especially in people with panic disorder. For the new study, a research team led by scientists at the University of Iowa, tested how SM and a set of twin sisters with Urbach-Wiethe disease reacted to CO2. [What Really Scares People: Top 10 Phobias]


In two trials, not only did all three report feeling fear, but they also all had panic attacks, the researchers said. Meanwhile, just three out of 12 in a control group of people with no brain damage panicked after inhaling CO2.


But if fear had been foreign to the women, how could the scientists know that’s what they were feeling? There apparently were some clear signs observed in all three.


“First, all of the patients found the feelings induced by the CO2 to be novel and described the experience as ‘panic,’” the team wrote. “Second, all of the patients displayed similar behavioral responses to CO2, including gasping for air, distressed facial expressions and escape behavior (for example, ripping off the inhalation mask).”


The researchers were surprised by the results. They said the higher rate of panic attacks among the Urbach-Wiethe patients suggests that the loss of amygdala function might actually spur the development of panic disorder.


The results also indicate that there could be other pathways for fear in the brain that skirt the amygdalae. While external scary stimuli are processed through visual and auditory pathways that fire off signals to the amygdalae, CO2 might trigger a response in another part of the brain, such as the brain stem or insular cortex.


“Thus, CO2 may directly activate extra-amygdalar brain structures that underlie fear and panic,” the researchers wrote last week in the journal Nature Neuroscience.


Follow LiveScience on Twitter @livescience. We’re also on Facebook & Google+.


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Why real prizes come after a Grammy













Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time








STORY HIGHLIGHTS


  • Bob Greene: Grammy nominated acts should remember the real prize comes later in life

  • He says at a hotel he ran into a group of singing stars from an earlier era, in town for a show

  • He says the world of post-fame touring less glamorous for acts, but meaningful

  • Greene: Acts grow old, but their hits never will and to fans, the songs are time-machine




Editor's note: CNN Contributor Bob Greene is a best-selling author whose 25 books include "When We Get to Surf City: A Journey Through America in Pursuit of Rock and Roll, Friendship, and Dreams"; "Late Edition: A Love Story"; and "Once Upon a Town: The Miracle of the North Platte Canteen."


(CNN) -- Memo to Carly Rae Jepsen, Frank Ocean, Hunter Hayes, Mumford & Sons, Miguel, the Alabama Shakes and all the other young singers and bands who are nominated for Sunday night's Grammy Awards:


Your real prize -- the most valuable and sustaining award of all -- may not become evident to you until 30 or so years have passed.


You will be much older.


But -- if you are lucky -- you will still get to be out on the road making music.



Bob Greene

Bob Greene



Many of Sunday's Grammy nominees are enjoying the first wave of big success. It is understandable if they take for granted the packed concert venues and eye-popping paychecks.


Those may go away -- the newness of fame, the sold-out houses, the big money.


But the joy of being allowed to do what they do will go on.


I've been doing some work while staying at a small hotel off a highway in southwestern Florida. One winter day I was reading out on the pool deck, and there were some other people sitting around talking.


They weren't young, by anyone's definition. They did not seem like conventional businessmen or businesswomen on the road, or like retirees. There was a sense of nascent energy and contented anticipation in their bearing, of something good waiting for them straight ahead. A look completely devoid of grimness or fretfulness, an afternoon look that said the best part of the day was still to come.


I would almost have bet what line of work they were in. I'd seen that look before, many times.


I could hear them talking.


Yep.


The Tokens ("The Lion Sleeps Tonight," a No. 1 hit in 1961).




Little Peggy March ("I Will Follow Him," a No. 1 hit in 1963).


Little Anthony and the Imperials ("Tears on My Pillow," a top 10 hit in 1958).


Major singing stars from an earlier era of popular music, in town for a multi-act show that evening.


It is the one sales job worth yearning for -- carrying that battered sample case of memorable music around the country, to unpack in front of a different appreciative audience every night.


It's quite a world. I was fortunate enough to learn its ins and outs during the 15 deliriously unlikely years I spent touring the United States singing backup with Jan and Dean ("Surf City," a No. 1 hit in 1963) and all the other great performers with whom we shared stages and dressing rooms and backstage buffets:


Chuck Berry, Martha and the Vandellas, Jerry Lee Lewis, Little Richard, the Everly Brothers, James Brown, Lesley Gore, Freddy "Boom Boom" Cannon, the Kingsmen, the Drifters, Fabian, the Coasters, Little Eva, the Ventures, Sam the Sham. ...


Jukebox names whose fame was once as fresh and electric as that now being savored by Sunday's young Grammy nominees.


Decades after that fame is new, the road may not be quite as glamorous, the crowds may not be quite as large. The hours of killing time before riding over to the hall, the putrid vending-machine meals on the run, the way-too-early-in-the-morning vans to the airport -- the dreary parts all become more than worth it when, for an hour or so, the singers can once again personally deliver a bit of happiness to the audiences who still adore their music.


Greene: Super Bowl ad revives iconic voice


As the years go by, the whole thing may grow complicated -- band members come and go, they fight and feud, some quit, some die. There are times when it seems you can't tell the players without a scorecard -- the Tokens at the highway hotel were, technically and contractually, Jay Siegel's Tokens (you don't want to know the details). One of their singers (not Jay Siegel -- Jay Traynor) was once Jay of Jay and the Americans, a group that itself is still out on the road in a different configuration with a different Jay (you don't want to know).


But overriding all of this is a splendid truism:


Sometimes, if you have one big hit, it can take care of you for the rest of your life. It can be your life.


Sunday's young Grammy nominees may not imagine, 30 years down the line, still being on tour. But they -- the fortunate ones -- will come to learn something:


They will grow old, but their hits never will -- once people first fall in love with those songs, the songs will mean something powerful and evocative to them for the rest of their lives.


And as long as there are fairground grandstands on summer nights, as long as there are small-town ballparks with stages where the pitcher's mound should be, the singers will get to keep delivering the goods.


That is the hopeful news waiting, off in the distance, for those who will win Grammys Sunday, and for those who won't be chosen.


On the morning after that pool-deck encounter in Florida I headed out for a walk, and in the parking lot of the hotel I saw one of the Tokens loading his stage clothes into his car.


His license plate read:


SHE CRYD


I said to him:


"You sing lead on 'She Cried,' right?"


"Every night," he said, and drove off toward the next show.


The next show.


That's the prize.


That's the trophy, right there.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Bob Greene.






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Woman killed when 2 cars collide on Tri-State













Photo: Scene of crash


Photo: Scene of crash
(February 10, 2013)


























































A Chicago woman died after she was thrown from a car in an accident along the Tri-State Tollway in Glenview, authorities said.

Danielle M. Pisterzi, 21, of the 5700 block of North Nina Avenue, died about an hour after the crash near Willow Road, according to Illinois State Police Master Sgt. Brian McKinney.


Two cars collided around 10:45 p.m., McKinney said. Pisterzi was taken to Advocate Lutheran General Hospital, where she was pronounced dead at 11:52 p.m.


The woman was the only person in her 2004 Hyundai when it crashed with an Audi SUV which had four people inside, police said.





No one else was taken to the hospital, McKinney said.

The crash happened in the southbound lanes of the tollway which were closed for hours as police investigated. By 4 a.m. all four southbound lanes had been reopened.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






Read More..