Governor sues NCAA over Penn State sex scandal






(Reuters) – Pennsylvania Governor Tom Corbett said on Wednesday he is seeking to have the costly sanctions levied by the NCAA against Penn State University over the Jerry Sandusky sex-abuse scandal thrown out, saying the punishment threatens to cause devastating damage to the state’s residents and economy.


The sanctions, which included an unprecedented $ 60 million fine, are “overreaching and unlawful,” he said at a news conference in State College where the university is located.






“I cannot and will not stand by and let it happen without a fight,” said the Republican governor, who was accused of dragging his feet on the Penn State scandal when he was state Attorney General.


The lawsuit asks the U.S. District Court in Harrisburg to throw out all Sandusky-related sanctions that the National Collegiate Athletic Association, the governing body of U.S. collegiate sports, filed against Penn State.


At least one legal expert said the case is weak.


The NCAA fined Penn State $ 60 million in July and voided its football victories for the past 14 seasons in a dramatic rebuke for the school’s failure to stop the assistant coach’s sexual abuse of children.


“The NCAA, and the competing colleges and universities represented on its governing boards, cynically and hypocritically exploited the tragedy of the Sandusky Offenses as a ‘blank check’ to impose crippling and unprecedented sanctions on an already weakened competitor,” the lawsuit said.


Corbett said the NCAA overstepped its bounds and said the case was “a criminal matter, not a violation of NCAA rules.”


The scandal was revealed by a grand jury Corbett convened in 2009 when he was Pennsylvania‘s attorney general.


State Attorney General-elect Kathleen Kane, a Democrat, said during her campaign last year that by convening the grand jury, Corbett failed to protect children by delaying prosecution for more than two years. She has vowed to probe his handling of the case. Corbett has said he would welcome such an investigation.


In a statement, Kane said she had not been consulted on the filing of the lawsuit and would reserve comment.


Pennsylvania voters also have expressed dissatisfaction with Corbett’s handling of the case. Nearly two thirds of registered voters said he did a fair or poor job, according to a Franklin & Marshall College survey in September.


Sandusky, Penn State’s former defensive coordinator, was convicted in June of 45 counts of sexually abusing 10 boys over 15 years, some in the football team’s showers. He is serving a prison term of 30 years to 60 years.


The scandal sparked a national discussion of child sex abuse, embarrassed the university and implicated top officials in a cover-up, including the late Joe Paterno, the legendary football head coach.


The NCAA said it was disappointed by Corbett’s move.


“Not only does this forthcoming lawsuit appear to be without merit, it is an affront to all of the victims in this tragedy – lives that were destroyed by the criminal actions of Jerry Sandusky,” NCAA General Counsel Donald Remy said in a statement.


Pennsylvania residents have also been unhappy with the NCAA sanctions. The Franklin & Marshall poll showed more than half the respondents believed they were unfair.


Although Corbett might be seen as pursuing the lawsuit to further his own political ends, “this decision will be popular among Pennsylvanians,” said Terry Madonna, a professor of public affairs at Franklin & Marshall and director of the poll.


At Wednesday’s press conference Corbett rejected any political motivation for the lawsuit.


Max Kennerly, a Philadelphia-based attorney who has followed the case closely, questioned the chances of the case succeeding. It was unclear if the governor has the legal authority to file such a lawsuit he said, adding courts have generally sided with the NCAA on issues of sanctions.


“It’s not a frivolous lawsuit, there are real arguments to make, but, boy is it weak,” he said.


James Schultz, general counsel for the Commonwealth of Pennsylvania, who will be handling the case, said the governor has legal standing to sue, because he is acting on behalf of residents and businesses “collaterally damaged” by the NCAA sanctions.


The sanctions harm those who depend on revenue from the Penn State football program and negatively impact the state’s tax revenue base.


Also, the lawsuit said: “The stigma attached will diminish recruitment of students and student athletes, as well as the value of a Penn State education, for decades.”


In State College, Pennsylvania where the university has its campus, Kathy Punt, manager of a motel used by football fans, said her business dropped 30 to 40 percent this past fall as fewer people attended the games.


“We didn’t get the Penn State fans who usually come in,” she said.


The university recently made the first payment of $ 12 million of the sanctions toward a national fund to support the victims of child abuse. Other sanctions included a ban on its football team from appearing in bowl games for four years.


According to the governor’s office, Penn State football was the second-most profitable, collegiate athletic program in the United States in 2010-11 when it brought in $ 50 million, generating more than $ 5 million in tax revenue.


Penn State released a statement saying it was not party to the lawsuit and reiterated its commitment to comply with the NCAA sanctions.


The governor was asked about the report into the Penn State scandal produced by former FBI director Louis Freeh that was the basis of the NCAA sanctions. The report was scathingly critical of the university and said Penn State leaders covered up Sandusky’s sexual abuse of children for years.


“The Freeh report is an incomplete report,” Corbett said.


The family of Joe Paterno, who was fired by Penn State trustees who said he failed to do enough when he was alerted to suspicions about Sandusky, said: “The fact that Governor Corbett now realizes, as do many others, that there was an inexcusable rush to judgment is encouraging.”


Paterno died a year ago of lung cancer.


(Reporting by Jonathan Stempel, Daniel Trotta, Dan Burns and Peter Rudegeair in New York and Dave Warner in Philadelphia, Writing by Ellen Wulfhorst, Editing by Kenneth Barry, Claudia Parsons and Leslie Gevirtz)


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GM recalls 145,628 mid-sized pickups for hood latch issue






(Reuters) – General Motors Co said on Thursday it is recalling 145,628 mid-sized pickup trucks globally as the hood could open unexpectedly due to a possible missing latch.


Of the Chevrolet Colorado and GMC Canyon pickups affected by the recall, 118,800 are in the United States, 15,264 are in Canada, 7,492 are in Mexico and the rest are exports, GM said.






GM is recalling the model year 2010 to 2012 trucks because the hood may be missing a secondary hood latch, so if the primary latch is not engaged the hood could open and block the driver’s view and increase the risk of a crash, according to documents filed with the U.S. National Highway Traffic Safety Administration.


There are no reports of crashes or injuries related to the issue, and there are four known cases of the secondary hood latch being missing, GM said.


GM said it will notify owners and instruct them to inspect their trucks for the presence of a secondary hood latch or take the truck to a dealer for inspection. If the secondary latch is missing, a new hood will be installed, the company said.


Dealers were notified of the issue on December 18 and GM expects to begin mailing letters to owners on January 17, according to NHTSA.


(Reporting By Ben Klayman in Detroit; Editing by Gerald E. McCormick)


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HTC rumored to debut flagship ‘M7′ smartphone at CES






HTC (2498) will reportedly unveil a new flagship smartphone code-named “M7″ at the Consumer Electronics Show next week. The rumor comes to us from XDA-Developers forum member “Football,” who reported accurate information about unreleased HTC devices in the past. The phone is believed to the be the successor to the One X and could be equipped with a 4.7-inch full HD 1920 x 1080-pixel display, a 1.7GHz quad-core Snapdragon processor, a 13-megapixel rear camera, LTE and HSPA+ connectivity, Beats Audio, 2GB of RAM, 32GB of internal memory and a 2,300 mAh battery. The M7 is also said to be HTC’s first smartphone to utilize on-screen navigation keys in place of traditional hardware buttons. 


[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]






The problem for HTC in the past has been the company’s ability to market its high-end devices to consumers. Despite class-leading features and hardware, HTC’s smartphone sales have stalled in the past year and the company has continued to lose market share. It will be interesting to see if it can turn things around in 2013.


[More from BGR: Microsoft lashes out at Google’s decision to spurn Windows Phone]


The Consumer Electronics Show is scheduled to take place from January 8th to January 11th in Las Vegas, Nevada.


This article was originally published by BGR


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Playboy Hugh Hefner marries his ‘runaway bride’






LOS ANGELES (AP) — Hugh Hefner is celebrating the new year as a married man once again.


The 86-year-old Playboy magazine founder exchanged vows with his “runaway bride,” Crystal Harris, at a private Playboy Mansion ceremony on New Year’s Eve. Harris, a 26-year-old “Playmate of the Month” in 2009, broke off a previous engagement to Hefner just before they were to be married in 2011.






Playboy said on Tuesday that the couple celebrated at a New Year’s Eve party at the mansion with guests that included comic Jon Lovitz, Gene Simmons of KISS and baseball star Evan Longoria.


The bride wore a strapless gown in soft pink, Hefner a black tux. Hefner’s been married twice before but lived the single life between 1959 and 1989.


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Gambian leader says to build herbal AIDS-cure hospital






BANJUL (Reuters) – AIDS patients would be offered an herbal cure at a 1,111-bed hospital in Gambia that the president said on Tuesday he plans to build despite medical concerns the treatment is dangerous.


President Yahya Jammeh said in 2007 he had found a remedy of boiled herbs to cure AIDS, stirring anger among Western medical experts who claimed he was giving false hope to the sick.






“With this project coming to fruition, we intend to treat 10,000 HIV/AIDS patients every six months through natural medicine,” Jammeh said in his New Year’s address, adding that he expected the 1,111-bed hospital to open in 2015.


The World Health Organisation and the United Nations have said Jammeh’s HIV/AIDS treatment is alarming mainly because patients are required to cease their anti-retroviral drugs, making them more prone to infection.


Jammeh said in October that 68 HIV/AIDS patients undergoing his herbal remedy had been cured and discharged, the seventh batch since the treatments began five years ago.


Other African leaders have drawn criticism for extolling the power of natural remedies to combat AIDS.


The administration of former South African President Thabo Mbeki was ridiculed for denying there was a link between HIV and AIDS while prescribing meaningless treatments such as beet root instead of internationally proven medicines.


The HIV rate in Gambia is relatively low compared to other African states, with 2 percent of the country’s roughly 1.8 million people infected, according to the United Nations.


Jammeh came to power in Gambia, a sliver of land on Africa’s west coast that is popular with sun-seeking European tourists, in a bloodless military coup in 1994.


He is accused by activists of human rights abuses during his rule, and most recently drew international criticism for executing nine death-row inmates by firing squad.


(Reporting by Pap Saine; Writing by Richard Valdmanis; Editing by Michael Roddy)


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Wall Street Market Report







Continue reading the main story
Continue reading the main story






(Close): Wall Street shares rose after President Obama said that a deal to avoid the fiscal cliff was in sight.


The Dow Jones Industrial Average closed up 166.0 points, or 1.3%, at 13,104.1, following five days of losses.


It meant that the index was up 7% for the whole year.


The index had been little changed for much of the day, but rose after the president said: “There are still issues left to resolve but we’re hopeful Congress can get it done.”


But he warned that a deal was unlikely before the midnight deadline.


US markets are closed on Tuesday for the New Year holiday, which means they will be unaffected if a deal is done on Tuesday instead of Monday.


The day’s top gainer was Hewlett Packard, which rose 4.2%, although it has been one of the worst performers on the Dow Jones for the year as a whole, dropping about 45%.


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France counts 1,193 cars torched on New Year’s Eve






PARIS (AP) — A New Year’s Eve tradition for some in France of torching empty, parked cars has continued.


Interior Minister Manuel Valls said Tuesday that 1,193 vehicles were burned overnight around the country, where the stunt began in the 1990s.






There was no way to compare this figure to recent ones because the conservative government of former President Nicolas Sarkozy stopped making the numbers public while he was in office. But the rate of burned cars was apparently steady. On Dec. 31, 2009, 1,147 vehicles were burned.


For some, the decision of France’s current Socialist government to resume making public figures of New Year’s Eve’s torched cars is unwise.


Bruno Beschizza, a security chief for Sarkozy’s UMP party, said on iTele TV that publishing the numbers motivates youths to commit such crimes.


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Kardashian, West feel ‘blessed’ over baby news






ATLANTIC CITY, N.J. (AP) — Kim Kardashian and Kanye West are feeling lucky about their first child together.


“It’s true,” the 32-year-old reality TV star said in a statement on her site Monday. “Kanye and I are expecting a baby. We feel so blessed and lucky and wish that in addition to both of our families, his mom and my dad could be here to celebrate this special time with us.”






Kardashian’s father, Robert Kardashian, died in 2003. West’s mother, Donda West, died in 2007.


Kardashian added in the blog post that she was “looking forward to great new beginnings in 2013 and to starting a family.”


The 35-year-old rapper revealed to a crowd of more than 5,000 in song form at a concert Sunday that his girlfriend is pregnant. Kardashian was in the crowd at Revel Resort’s Ovation Hall with her mother, Kris Jenner, and West’s mentor and best friend, Jay-Z.


The news instantly went viral online, with thousands posting and commenting on the expecting couple.


Most of the Kardashian clan tweeted about the news, including Kim’s sisters. Kourtney Kardashian wrote: “Another angel to welcome to our family. Overwhelmed with excitement!”


West told concertgoers to congratulate his “baby mom” and that this was the “most amazing thing.”


Representatives for West and Kardashian didn’t immediately respond to emails about the pregnancy.


The rapper and reality TV star went public with their relationship in March.


Kardashian married NBA player Kris Humphries in August 2011 and their divorce is not finalized.


West’s Sunday-night show was his third consecutive performance at Revel. He took the stage for nearly two hours, performing hits like “Good Life,” ”Jesus Walks” and “Clique” in an all-white ensemble with two bandmates.


Kardashian is expected to spend New Year’s Eve at public appearance at a Las Vegas nightclub.


___


AP Writer Bianca Roach contributed to this report.


___


Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin . Follow Bianca Roach at http://twitter.com/B__Roach


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Housing and jobs key to lifting S&P toward record






NEW YORK (AP) — It may be a big if, but assuming Washington lawmakers can get past the “fiscal cliff,” many analysts say that the outlook for stocks next year is good, as a recovering housing market and an improving jobs outlook helps the economy maintain a slow, but steady recovery.


An advance of 10 percent in 2013 would send the S&P 500 toward, and possibly past, its record close of 1,565 reached in October 2007.






A mid-year rally in 2012 pushed stocks to their highest in more than four years. Both the Standard & Poor’s 500 and the Dow Jones industrial average gained in 2012. Those advances came despite uncertainty about the outcome of the presidential election and bouts of turmoil from Europe, where policy makers finally appear to be getting a grip on the region’s debt crisis.


“As you remove little bits of uncertainty, investors can then once again return to focusing on the fundamentals,” says Joseph Tanious, a global market strategist at J.P. Morgan Funds. “Corporate America is actually doing quite well.”


Although earnings growth of S&P 500 listed companies dipped as low as 0.8 percent in the summer, analysts are predicting that it will rebound to average 9.5 percent for 2013, according to data from S&P Capital IQ. Companies have also been hoarding cash. The amount of cash and cash-equivalents being held by companies listed in the S&P 500 climbed to an all-time high $ 1 trillion at the end of September, 65 percent more than five years ago, according to S&P Dow Jones Indices.


By the time trading ended Monday, Republicans and Democrats still hadn’t reached a budget compromise — but investors were betting that they would — after President Barack Obama said that a compromise was “within sight,” but not finalized. Without a budget agreement, millions of Americans face the prospect of higher taxes and the government would be forced to slash spending, measures that would probably push the economy into recession, economists say.


Assuming a budget deal is reached in a reasonable amount of time, investors will be more comfortable owning stocks in 2013, allowing valuations to rise, says Tanious.


Stocks in the S&P 500 index are currently trading on a price-to-earnings multiple of about 13.5, compared with the average of 17.9 since 1988, according to S&P Capital IQ data. A lower-than-average ration suggests that stocks are cheap.


The stock market will also likely face less drag from the European debt crisis this year, said Steven Bulko, the chief investment officer at Lombard Odier Investment Managers. While policy makers in Europe have yet to come up with a comprehensive solution to the region’s woes, they appear to have a better handle on the region’s problems than they have for quite some time.


“There is still some heavy lifting that needs to be done in Europe,” said Bulko. Now, though, “we are dealing with much more manageable risk than we have had in the past few years.”


Next year may also see an increase in mergers and acquisitions as companies seeks to make use of the cash on their balance sheets, says Jarred Kessler, global head of equities at broker Cantor Fitzgerald.


While the number of M&A deals has gradually crept higher in the past four years, the dollar value of the deals remains remains well short of the total reached five years ago. U.S. targeted acquisitions totaled $ 964 billion through Dec. 27, according to data tracking firm Dealogic. That’s slightly down from last year’s total of $ 1 trillion and about 40 percent lower than in 2007, when deals worth $ 1.6 trillion were struck.


M&A deals are good for stock prices because the acquiring company typically pays a premium for the one it’s buying.


Falling interest rates also set off a rally in the bond market. Concerns about swings in stock prices prompted investors to switch money out of stocks and into bond funds. If investors decide that the bond rally may be nearing an end, that flow of funds may be reversed, providing a support for stocks.


“Equities are the best house in a bad neighborhood,” says Cantor’s Kessler. “Bonds are, not priced to euphoria, but they are definitely rich compared to equities right now.”


Not all investors are as sanguine about the prospects for 2013.


The rally in stocks in 2012 had less to do with company earnings and the economy and more to do with monetary stimulus from the Federal Reserve and other central banks around the world, says David Wright, a managing director and co-founder at Sierra Investment Management in Santa Monica, Calif.


Federal Reserve Chairman Ben Bernanke announced Sept. 13 that the central bank would add another round to its bond-purchase program, known as “quantitative easing” on Wall Street, which is intended to lower borrowing costs and boost growth. Speculation that more stimulus was coming had pushed the S&P 500 index to 1,466, its highest close of the year, a day earlier. The Dow peaked for the year at 13,610, Oct. 5.


“The Fed has done everything it can do and is probably pretty close to having used its last bullet,” said Wright. “It’s been a good year for stocks, but we think that’s an artifact of monetary stimulus.”


This year’s peaks in the Dow and the S&P 500 won’t be surpassed in 2013 and stocks may even slump in the first quarter, as investors lower their earnings expectations, Wright says. The money manager also says that any budget plan, regardless of the details, will be negative for stocks as it will involve higher taxes and lower government spending.


Wells Fargo Securities market analyst Gina Martin Adams also says companies will struggle in the first half of the year as the economy flirts with recession. Export growth is slowing and policymakers are struggling to come up with a plan to reduce the budget deficit.


The bank recommends that investors add to their holdings of financial and utilities stocks because low rates should help support steady earnings growth in the early part of the 2013. Financial stocks advanced 25 percent in 2012, making them the best performing industry group in the S&P 500. Utility stocks fell 3.4 percent, the worst performing of 10 industry groups in the index. The bank says investors should reduce their exposure to so-called consumer discretionary stocks, such as hotels and restaurant companies, because consumer spending will likely take a hit next year as taxes rise.


With a backdrop of historically low interest rates and an economy that still needs to address its fiscal imbalances, investors should remain realistic about the returns they are going to get from the stock market, says Darell Krassnoff, managing director at Bel Air Investment Advisors.


“Things are getting better, not worse, but you have to have reasonable expectations,” Krassnoff says.


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Pope marks end of difficult year, notes God’s good






VATICAN CITY (AP) — Pope Benedict XVI marked the end of a difficult year Monday by saying that despite all the death and injustice in the world, goodness prevails.


Benedict celebrated New Year’s Eve with a vespers service in St. Peter’s Basilica to give thanks for 2012 and look ahead to 2013. He appeared tired during the service and used a cane afterward — an indication that the busy Christmas season may be taking a toll on the 85-year-old Benedict.






In his homily, Benedict said it’s tough to remember that goodness prevails when bad news — death, violence and injustice — “makes more noise than good.” He said taking time to meditate in prolonged reflection and prayer can help “find healing from the inevitable wounds of daily life.”


This past year was full of highs and lows for the pope, including a successful trip to Mexico and Cuba but also the betrayal of his butler, convicted in October of stealing Benedict’s personal papers and leaking them to a journalist.


After the service, Benedict was brought out in a covered car to pray before the Vatican’s main nativity scene in St. Peter’s Square. Walking with a cane in the chilly piazza, Benedict chatted animatedly with the artist who crafted the scene, which recreated an entire village from the poor, southern Italian region of Basilicata which donated this year’s crèche.


The Vatican gladly accepted Basilicata’s donation after the €550,000 price tag the Vatican paid for the 2009 nativity scene was revealed in the documentation leaked by Benedict’s ex-butler Paolo Gabriele.


Gabriele was convicted of aggravated theft by a Vatican tribunal and sentenced to 18 months in prison. He received a pre-Christmas papal pardon and is expected to soon leave his Vatican City apartment for a new home and job elsewhere.


On Tuesday morning, Benedict celebrates a New Year’s Day Mass, which the Catholic Church celebrates as its world day of peace.


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