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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3 dead, including gunman, in Portland, Ore., mall shooting

A gunman opened fire in a suburban Portland shopping mall Tuesday, killing two people and wounding another as people were doing their Christmas shopping, authorities said.

Witnesses described a scene of chaos and disbelief as a gunman wearing some sort of camouflage outfit and what looked like a hockey mask fired rounds fire from a military-style rifle near the food court at Clackamas Town Center.

Parents with children joined other shoppers rushing to stores' backrooms for safety as teams of police officers began entering the mall to find the shooter.

Clackamas County sheriff's Lt. James Rhodes said later that the gunman was dead, apparently from a self-inflicted gunshot wound. A shopper told KATU-TV he saw a man lying on the floor with a gun next to him.

Authorities went store-to-store to confirm that there was only one shooter and to escort hiding shoppers outside, Rhodes said.

Austin Patty, 20, who works at Macy's, said he saw a man in a white mask carrying a rifle and wearing a bulletproof vest.

He heard the gunman say, "I am the shooter," as if announcing himself, Patty said. He then fired several shots paced seconds apart.

A series of rapid-fire shots in short succession followed. Patty said he ducked to the ground and then ran.

His Macy's co-worker, Pam Moore, told The Associated Press the gunman was short, with dark hair, and dressed in camouflage.

"I heard about 20 shots and everyone hit the ground," Moore said. "That's when we all just ran."

Witnesses said the mall's Santa Claus was among those who ducked for cover.

The mall is one of the Portland area's busiest. It's in a middle-class area that has become popular with families as falling real estate prices have put its homes just a few miles from downtown Portland within financial reach.

The mall has about 185 stores and a 20-screen movie theater among anchor tenants that also include Nordstrom and J.C. Penney. Sheriff's deputies said it would remain closed during the investigation of the shooting, but it wasn't clear how long that would take.

Shaun Wik, 20, from Fairview, said he was Christmas shopping with his girlfriend Tuesday and opened a fortune cookie at the food court. Inside was written "live for today, remember yesterday, think of tomorrow."

As he read it, he heard three shots. He heard a man he believes was the gunman shout, "Get down!" but Wik and his girlfriend ran. He heard seven or eight more shots. He didn't turn around.

"If I had looked back, I might not be standing here," Wik said. "I might have been one of the ones who got hit."

Kira Rowland told KGW-TV that she was shopping at Macy's with her infant son when the shots started.

"All of a sudden you hear two shots, which sounded like balloons popping," Rowland told the station. "Everybody got on the ground. I grabbed the baby from the stroller and got on the ground."

Rowland said she heard people screaming and crying.

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Microsoft ups Surface production, to sell in more stores

SEATTLE (Reuters) - Microsoft Corp has stepped up manufacturing of the Surface tablet, its new device designed to counter Apple Inc's iPad, and will introduce it to third-party retailers this week.

The moves suggest Microsoft is seeing some demand for its first own-brand computer in the crucial holiday shopping season, although it has yet to divulge any sales figures.

"The public reaction to Surface has been exciting to see," said Panos Panay, general manager of Microsoft's Surface project, which forms part of the company's Windows unit.

"We've increased production and are expanding the ways in which customers can interact with, experience and purchase Surface," said Panay, but gave no details of how many extra units were being produced.

Panay did not mention names of retailers that will sell the Surface, but separately office equipment retailer Staples Inc said it would stock the tablet from Wednesday.

He said the Surface would also be on sale at retailers in Australia from mid-December, with more countries to follow in the next few months.

Since launch in late October, the Surface has only been sold by Microsoft itself, in its own brick and mortar stores in the United States and Canada and online in Australia, China, France, the UK and Germany.

The only Surface model available now - officially called Surface with Windows RT - runs a version of Windows created to work on the low-power chips designed by ARM Holdings, which dominate smartphones and tablets but are incompatible with old Windows applications.

It starts at $499 for the 32 gigabyte version plus $120 for a thin cover that doubles as a keyboard.

A larger, heavier tablet - called Surface with Windows 8 Pro - will be introduced in January, running on an Intel Corp chip that works with all Microsoft's Windows and Office applications. Microsoft plans to price the new Surface from $899 for a 64 gigabyte version.

The world's largest software company also said it would keep its chain of 'pop-up' holiday stores open into the new year and will convert them into permanent retail outlets or what it called "specialty store locations".

Microsoft's recent push into physical retail - following Apple's great success - has resulted in 31 permanent stores plus 34 holiday ‘pop-up' stores in the U.S. and Canada.

If Microsoft converted each of the temporary stores into permanent outlets it would have 65 stores, still well below Apple with almost 400 worldwide.

(Reporting by Bill Rigby in Seattle, Sruthi Ramakrishnan in Bangalore)

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Saints' suspensions tossed out in bounty case

NEW ORLEANS (AP) — Finding fault with nearly everyone tied to the New Orleans Saints' bounty case, from the coaches to Roger Goodell, former NFL Commissioner Paul Tagliabue tossed out the suspensions of four players Tuesday and condemned the team for obstructing the investigation.

In a surprising rejection of his successor's overreaching punishments, Tagliabue wrote that he would "now vacate all discipline to be imposed upon" two current Saints, linebacker Jonathan Vilma and defensive end Will Smith, and two players no longer with the club, Browns linebacker Scott Fujita and free-agent defensive lineman Anthony Hargrove.

Tagliabue essentially absolved Fujita, but did agree with Goodell's finding that the other three players "engaged in conduct detrimental to the integrity of, and public confidence in, the game of professional football."

It was a ruling that allowed both sides to claim victory more than nine months after the league first made "Saints bounties" a household phrase: The NFL pointed to the determination that Goodell's facts were right; the NFL Players Association issued a statement noting that Tagliabue said "previously issued discipline was inappropriate."

Vilma, suspended by Goodell for the entire current season, and Smith, suspended four games, have been playing for the Saints while their appeals were pending. Fujita is on injured reserve; Hargrove is not with a team.

Tagliabue, appointed by Goodell to oversee a second round of player appeals, criticized the Saints as an organization that fostered bad behavior and tried to impede the investigation into what the NFL said was a performance pool designed to knock targeted opponents out of games from 2009 to 2011, with thousands of dollars in payouts.

A "culture" that promoted tough talk and cash incentives for hits to injure opponents — one key example was Vilma's offer of $10,000 to any teammate who knocked Brett Favre out of the NFC championship game at the end of the 2009 season — existed in New Orleans, according to Tagliabue, who also wrote that "Saints' coaches and managers led a deliberate, unprecedented and effective effort to obstruct the NFL's investigation."

The former commissioner did not entirely exonerate the players, however.

He said Vilma and Smith participated in a performance pool that rewarded key plays — including hard tackles — while Hargrove, following coaches' orders, helped to cover up the program when interviewed by NFL investigators in 2010.

"My affirmation of Commissioner Goodell's findings could certainly justify the issuance of fines," the ruling said. "However, this entire case has been contaminated by the coaches and others in the Saints' organization."

Tagliabue said he decided, in this particular case, that it was in the best interest of all parties involved to eliminate player punishment because of the enduring acrimony it has caused between the league and the NFL Players Association. He added that he hoped doing so would allow the NFL and union to move forward collaboratively to the more important matters of enhancing player safety.

"To be clear: this case should not be considered a precedent for whether similar behavior in the future merits player suspensions or fines," his ruling said.

Tagliabue oversaw the second round of player appeals to the league in connection with the cash-for-hits program run by former defensive coordinator Gregg Williams from 2009-2011. The players initially opposed his appointment.

Goodell had given Vilma a full-season suspension, while he gave Smith, Fujita and Hargrove shorter suspensions.

Tagliabue cleared Fujita of conduct detrimental to the league.

The former commissioner found Goodell's actions historically disproportionate to past punishment to players for similar behavior, which had generally been reserved to fines, not suspensions. He also stated that it was very difficult to determine whether the pledges players made were genuine, or simply a motivational ploy, particularly because Saints defenders never demonstrated a pattern of dirty play on the field.

"The relationship of the discipline for the off-field 'talk' and actual on-field conduct must be carefully calibrated and reasonably apportioned. This is a standard grounded in common sense and fairness," Tagliabue wrote in his 22-page opinion. "If one were to punish certain off-field talk in locker rooms, meeting rooms, hotel rooms or elsewhere without applying a rigorous standard that separated real threats or 'bounties' from rhetoric and exaggeration, it would open a field of inquiry that would lead nowhere."

Saints quarterback Drew Brees commented on Twitter: "Congratulations to our players for having the suspensions vacated. Unfortunately, there are some things that can never be taken back."

The Saints opened the season 0-4 and are now 5-8 and virtually out of the playoffs after appearing the postseason the three previous seasons, including the franchise's only Super Bowl title to conclude the 2009 season.

Shortly before the regular season, the initial suspensions were thrown out by an appeals panel created by the NFL's collective bargaining agreement. Goodell then reissued them, with some changes, and now those have been dismissed.

Now, with the player suspensions overturned, the end could be near for a nearly 10-month dispute over how the NFL handled an investigation that covered three seasons and gathered about 50,000 pages of documents.

"We respect Mr. Tagliabue's decision, which underscores the due process afforded players in NFL disciplinary matters," the league said in a statement.

"The decisions have made clear that the Saints operated a bounty program in violation of league rules for three years, that the program endangered player safety, and that the commissioner has the authority under the (NFL's collective bargaining agreement) to impose discipline for those actions as conduct detrimental to the league. Strong action was taken in this matter to protect player safety and ensure that bounties would be eliminated from football."

The players have challenged the NFL's handling of the entire process in federal court, but U.S District Judge Ginger Berrigan had been waiting for the latest round of appeals to play out before deciding whether to get involved. The judge issued an order Tuesday giving the NFLPA and Vilma until Wednesday to notify the court if they found Tagliabue's ruling acceptable.

Vilma also has filed a defamation lawsuit against Goodell, which also is being handled by Berrigan. Vilma's lawyers, Peter Ginsberg and Duke Williams, said by email to The Associated Press that they would "pursue the defamation action vigorously."

NFL investigators found that Vilma and Smith were ringleaders of a cash-for-hits program that rewarded injurious tackles labeled as "cart-offs" and "knockouts." Witnesses including Williams also said Vilma made a $10,000 pledge for anyone who knocked then-Minnesota quarterback Brett Favre out of the 2010 NFC title game. However, Tagliabue found it was not clear if the pledge was genuine or simply a motivational prop.

"There is more than enough evidence to support Commissioner Goodell's findings that Mr. Vilma offered such a bounty" on Favre, Tagliabue wrote. "I cannot, however, uphold a multi-game suspension where there is no evidence that a player's speech prior to a game was actually a factor causing misconduct on the playing field and that such misconduct was severe enough in itself to warrant a player suspension or a very substantial fine."

The NFL also concluded that Hargrove lied to NFL investigators to help cover up the program. The players have from the beginning denied they ever took the field intending to injure opponents, while Hargrove has said he never lied about a bounty program, because there wasn't one.

Goodell suspended Williams indefinitely, while banning Saints head coach Sean Payton for a full season.

Tagliabue's ruling comes after a new round of hearings that for the first time allowed Vilma's attorneys and the NFLPA, which represents the other three players, to cross-examine key NFL witnesses. Those witnesses included Williams and former Saints assistant Mike Cerullo, who was fired after the 2009 season and whose email to the league, accusing the Saints of being "a dirty organization," jump-started the probe.

"We believe that when a fair due process takes place, a fair outcome is the result," the players' union said in a statement. "We are pleased that Paul Tagliabue, as the appointed hearings officer, agreed with the NFL Players Association that previously issued discipline was inappropriate in the matter of the alleged New Orleans Saints bounty program.

"Vacating all discipline affirms the players' unwavering position that all allegations the League made about their alleged 'intent-to-injure' were utterly and completely false."

Smith said he was pleased that Tagliabue vacated his suspension.

"I continue to maintain that I did not participate in a pay-to-injure program or facilitate any such program," he added. "I appreciate that Mr. Tagliabue did not rush to judgment, taking into consideration all facts presented to him, before ruling — something that was clearly not done by Commissioner Goodell in previous hearings."

A statement released by Vilma's lawyers on his behalf said the linebacker is "relieved and gratified that Jonathan no longer needs to worry about facing an unjustified suspension.

"On the other hand, Commissioner Tagliabue's rationalization of Commissioner Goodell's actions does nothing to rectify the harm done by the baseless allegations lodged against Jonathan. Jonathan has a right and every intention to pursue proving what really occurred and we look forward to returning to a public forum where the true facts can see the light of day."

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Spice Girls take stage at musical premiere

LONDON (Reuters) – The Spice Girls took to the stage on Tuesday after the world premiere of a new musical loosely based on their meteoric rise to fame in the 1990s, earning huge cheers from an audience that only really got going at the encore.

“Viva Forever!” was the brainchild of producer Judy Craymer, whose “Mamma Mia!” musical based on the hits of ABBA has earned nearly $ 2 billion worldwide and spawned a hit movie starring Meryl Streep.

She teamed up with British comedian Jennifer Saunders to create a story about the central character Viva, a sprightly teenager who, along with her friends, gets into the final stages of a TV singing contest closely resembling “The X Factor”.

To boost flagging audience figures – a nod to “The X Factor”s real-life ratings woes in Britain this season – their “mentor” springs a surprise and throws out three members of the band to leave Viva on her own.

What follows is part morality tale examining what is more important – friends, family or fame – and part satire on reality television, including a callous, Simon Cowell-like producer.

“We love you Judy!” said Geri Halliwell at the end of the show, which closed with a romp through some of the Spice Girls‘ biggest hits including “Spice Up Your Life”.

“Thank you for making the Spice Girls‘ dream come true,” Halliwell added.

Halliwell was joined on stage by Victoria Beckham, Melanie Brown, Emma Bunton and Melanie Chisholm, who together stormed the charts in the 1990s and put “girl power” on the map.

Beckham, who arrived at the London premiere after her ex-bandmates, sat with her soccer star husband David and three sons, who clapped along to the music during the final medley.

NATIONAL TREASURES

Now all young mothers in their late 30s and early 40s, The Spice Girls are still affectionately known by the nicknames they adopted in the band – Posh (Beckham), Scary (Brown), Baby (Bunton), Sporty (Chisholm) and Ginger (Halliwell).

They were hailed as modern-day feminists by some and dismissed as vacuous pop princesses by others, but their success is beyond doubt. They sold 55 million records, had nine British No. 1 singles and three back-to-back Christmas No. 1s.

The band broke up around 12 years ago, and internal bickering among the members was long the delight of Britain’s celebrity-obsessed tabloids.

Perhaps surprisingly, given the bust-ups and hissy fits, the group has been united in its backing of the new musical, and underlining the Spice Girls‘ lasting popularity they played a major part in the closing ceremony at the London Olympics.

Paul Taylor, writing in the Independent newspaper, gave the musical two stars out of five in his review.

“The Spice Girls‘ songs, with their clever hooks and catchy rhythms, are better at projecting an attitude than fleshing out a dramatic situation,” he wrote, describing Saunders’ story as “charmless”, “messy” and “lackluster”.

“Not only does her script rarely give you that necessary gleeful sense of expectancy about where the songs are going to be shoe-horned in, but it’s embarrassingly derivative of ‘Mamma Mia!’ and looks way past its sell-by date in its utterly surprise-free satiric swipe at ‘X Factor’.”

Saunders said before the show that she considered herself the “sixth” Spice Girl.

“We used to travel around everywhere to see them and they were so great with my kids,” said the 54-year-old, best known for playing a self-absorbed, eccentric mother in the popular British comedy series “Absolutely Fabulous”.

“The thought of a Spice Girls musical written by somebody else was not acceptable,” she told the Daily Mirror newspaper. “Because I was so close to them, I couldn’t let it slip through my fingers.”

(Reporting by Mike Collett-White, editing by Jill Serjeant)

Music News Headlines – Yahoo! News

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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LA prosecutors seek to violate Lohan's probation

LOS ANGELES (AP) — Los Angeles prosecutors on Tuesday asked a judge to revoke Lindsay Lohan's probation and schedule a hearing that could lead to the actress' return to jail.

The filing came one day before Lohan is scheduled to be arraigned Wednesday on three misdemeanor charges filed last month related to a June car crash.

Lohan will not need to be present for Wednesday's arraignment on charges she lied to Santa Monica police, was driving recklessly and obstructed an officer from performing duties related to the crash investigation. She remains on probation for a 2011 necklace theft case and could be sentenced to 245 days in jail if a judge determines her conduct was a probation violation.

Her attorney Shawn Holley did not immediately return an email seeking comment.

City attorney's spokesman Frank Mateljan said any probation violation proceedings are likely to be heard after the Santa Monica case. Prosecutors allege Lohan lied about being a passenger in her Porsche when it crashed on Pacific Coast Highway on the way to a film shoot.

The "Liz and Dick" star was released from supervised probation in March after completing several months of court appearances and morgue cleanup duty.

Lohan has yet to be booked on the new charges and a judge on Wednesday will likely set bail and the terms of her release.

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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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IHSA rules Mooseheart basketball players eligible to play

Mooseheart High School head basketball coach Ron Ahrens gives his team a pregame talk after the Illinois High School Association determined that three Sudanese athletes on the team are eligible to play. (Scott Strazzante/Chicago Tribune)

The Illinois High School Association has determined that three Sudanese athletes for Mooseheart High School are eligible to play, but the IHSA also sanctioned the school.

The state athletic governing body's executive director on Nov. 29 deemed Mangisto Deng, Akim Nyang and Makur Puou — all 6 feet, 7 inches and taller — ineligible to play for Mooseheart High School. The IHSA board reviewed the case and found them eligible today, the board president said this evening.

After nearly four hours of deliberation, the IHSA board voted unanimously to declare the students eligible.

The decision reversed IHSA Executive Director Marty Hickman's ruling last month that barred the boys from playing.

But the board also sanctioned Mooseheart by placing it on probation and barring it from participating in the 2013 state basketball tournament until school officials institute training and compliance measures to ensure that the program does not run afoul of recruiting rules in the future, and severs contact with a placement organization at the center of the controversy, African Hoop Opportunities Providing an Education, or AHOPE.

Board President Dan Klett was blunt about the IHSA's view of AHOPE.

When asked what he would say to any other school who might use AHOPE to find basketball players, Klett said, "Don't. We don't believe they are a quality organization."

Klett said AHOPE used the students as pawns, and said Mooseheart didn't do enough to make sure they were complying with IHSA rules.

Mooseheart engaged in recruiting the three basketball players and a fourth Sudanese teen who is a talented cross-country runner for athletic purposes, Hickman had said. IHSA bylaws prohibit athletic recruitment.

Mooseheart, a 99-year-old residential and educational institution for children from unstable environments, disputed Hickman's decision and won a temporary reprieve Tuesday in Kane County Court.

Judge David Akemann granted Mooseheart's request to allow the boys to play until the IHSA board of directors reviewed the case.

Attorneys for the "child city" contended it told the organization placing the boys that Mooseheart would accept Sudanese children regardless of their athletic prowess.

The attorneys also noted that Mooseheart had no contact with the boys until they arrived on its bucolic, 1,000-acre campus in Batavia in May 2011, then waited a full year — at the IHSA's direction — before allowing the teens to compete.

But IHSA attorney David J. Bressler noted that the placement organization specifies that it works with athletes exclusively and that Mooseheart basketball coach Ron Ahrens deliberately called the organization, African Hoop Opportunities Providing an Education, seeking basketball players.

The IHSA board considered Mooseheart's case in a meeting that started about 1 p.m Monday at the organization's Bloomington office.

tgregory@tribune.com

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Massive HP conference draws 10,000 attendees to ogle products, speakers, presentations

By Suzy Hansen

More than 10,000 customers, partners and attendees flocked to the Hewlett-Packard Discover conference in Frankfurt, Germany, this week to learn about HP's latest products, exchange ideas, swap business cards and basically examine whether HP can improve the way their companies are run. The event was held at Messe Frankfurt, one of the world's largest trade exhibition sites.

CEO Meg Whitman acknowledged in her speech on Tuesday that HP has gone through some rough times this past year. HP's stock price has been nearly halved during her tenure. Whitman, however, pointed out that HP has $120 billion in revenue and is the 10th-largest company in the United States. In Q4, HP has generated $4.1 billion in cash flow.

"We are the No. 1 or No. 2 provider in almost every market," Whitman told the crowd in Frankfurt.

Whitman emphasized  executives' increasing concerns about security and said that it will be addressed by "a new approach": HP's security portfolio, with Autonomy and Vertica, which helps "analyze and understand the context of these events." Executive Vice President of Enterprise Dave Donatelli spoke about converged infrastructure, or bringing together server, network and storage; their software-defined data centers; and their new servers, which "change the way servers have been defined." George Kadifa, executive vice president of software, said 94 of the top 100 companies use HP software. HP is the sixth-largest software company in the world, with 16,000 employees in 70 countries, Kadifa added.

Also at the conference was Jeffrey Katzenberg, CEO of DreamWorks and an old friend of Whitman's from their Disney days, who roused the crowd with a fun speech about his long relationship with HP. Katzenberg showed an old video of himself onstage with a lion, which nearly mauled him. This time, he appeared onstage with a guy in a lion suit. The lesson was to learn from past mistakes and move on.

"If I am smart enough to say 'scalable multicorps processing,' I am smart enough to not put myself onstage with a real lion again," he joked.

The Discover conference is a key vehicle for HP to show off products it's offering in the coming year. Among them were the latest ProLiant and Integrity servers, the 3PAR StoreServ 7000 and the StoreAll and StoreOnce storage systems. At the HP Labs section of the conference, attendees could learn about the cloud infrastructure or test HP's new ElitePad 900.

Throughout the three-day event, which saw attendance grow by 30 percent this year, attendees wandered the enormous halls, milling around displays, watching videos, listening to speeches and participating in workshops. People gathered on clustered couches and chatted with new acquaintances, frequently stopping to plug in their various devices and recharge themselves with coffee. With people coming from all over the world, you could hear many languages spoken, from Arabic to French to the most bewildering of them all: the language of technology. Despite the large crowds, it was hard not to notice there were very few women among the thousands in attendance. In fact, when asked about this phenomenon, one female HP employee said, "Trust me, you aren't the first person who has come up to me asking about this."

Indeed, the Discover conference was like a forest of men in suits. The few women stood out like rays of sunlight. 

Regardless of their presence at this conference, women are making big strides in information technology. Among the leaders are HP CEO Whitman, who also led eBay; Carly Fiorina, who ran HP before Whitman; Yahoo! CEO Marissa Mayer; and Facebook COO Sheryl Sandberg. Were the women at the Discover conference surprised by the low female turnout?

"No, for IT this is standard," said Stefanie, a 30-year-old product manager from Germany. "Many are afraid of all the technical stuff, and you have to prove that you are capable of it. You get more women in retail and distribution but not in high-tech areas, at least not in Europe. In America there are more women in management positions and in general."

Americans might assume that Europe, with its generous social programs that include free daycare, enables more women to ascend the corporate ladder. But that still doesn't mean that a woman trying to balance a high-tech career and a family is always accepted in European society.

"There is still a lot of emphasis on the family," Stefanie said. "It's easier to move up in the U.S., where there is a culture of 'having it all.' It's quite a fight to get there here."

Still, the IT industry might seem inhospitable to women. Could this male-dominated profession be male-dominant because women have a hard time breaking in?

Stefanie disagreed. "No, they actually like working with women," she said. "They want to."

One male conference attendee, who asked not to be named, was less certain.

"There's a lot of ego and testosterone," he said. "It can't be easy" for women.

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