Swiss lender ZKB says three charged by U.S. authorities

Swiss lender Zuercher Kantonalbank (ZKB) said two of its bankers and one former employee had been charged by U.S. authorities, which had accused them of helping U.S. clients avoid taxes.
The three were indicted over changes of conspiring with American clients to hide more than $420 million from the U.S. Internal Revenue Service, the U.S. Attorney's Office in Manhattan had said on Wednesday.
The indictment did not identify the bank concerned but named Stephan Fellmann, Otto Hueppi and Christof Reist, who it said were all former client advisers for the unnamed institution.
None of the bankers had been arrested, authorities said.
Banking secrecy is enshrined in Swiss law and tradition but has recently come under pressure as the United States and other nations have moved aggressively to tighten tax law enforcement and demand more openness and cooperation.
U.S. authorities are investigating at least 11 banks, including Julius Baer , Credit Suisse and other Swiss regional banks, along with UK-based HSBC Holdings and Israel's Hapoalim, Mizrahi-Tefahot Bank Ltd and Bank Leumi .
In February, Wegelin & Co, Switzerland's oldest private bank, was indicted.
UBS AG , the largest Swiss bank, in 2009 paid a $780 million fine as part of a settlement with U.S. authorities who charged the bank helped thousands of wealthy Americans hide billions of dollars in assets in secret Swiss accounts.
ZKB said in a statement it was cooperating with U.S. authorities. The bank said it could give no details about the employees due to the ongoing investigation and did not confirm what they had been changed with.
ZKB bankers Fellmann and Reist could not be reached for comment. Hueppi declined to comment.

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Existing home sales rise to fastest pace in three years

WASHINGTON (Reuters) - Home resales rose sharply in November to their fastest pace in three years, a sign the recovery in the housing market is gaining steam.
The National Association of Realtors said on Thursday that existing home sales climbed 5.9 percent last month to a seasonally adjusted annual rate of 5.04 million units.
That was the fastest since November 2009, when a federal tax credit for home buyers was due to expire. Sales were well above the median forecast of a 4.87 million-unit rate in a Reuters poll.
The U.S. housing market tanked on the eve of the 2007-09 recession and has yet to fully recover, but steady job creation has helped the housing sector this year, when it is expected to add to economic growth for the first time since 2005.
NAR economist Lawrence Yun said superstorm Sandy, which slammed in the U.S. East Coast in late October and disrupted the regional economy for weeks, had only a slight negative impact on home resales.
The NAR expects some purchases delayed by the storm to add a slight boost to resales over the next few months, Yun said.
Nationwide, the median price for a home resale was $180,600 in November, up 10.1 percent from a year earlier as fewer people sold their homes under distressed conditions compared to the same period in 2011. Distressed sales include foreclosures.
The nation's inventory of existing homes for sale fell 3.8 percent during the month to 2.03 million, the lowest level since December 2001.
At the current pace of sales, inventories would be exhausted in 4.8 months, the lowest rate since September 2005.
Distressed sales fell to 22 percent of total sales from 29 percent a year ago.
The share of distressed sales, which also include those where the sales price was below the amount owed on the home, was also down from 24 percent in October.

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New York City should hike taxes on big business-comptroller

New York City's top financial officer and possible contender for mayor in 2013, John Liu, proposed on Thursday tax hikes for big businesses and an end to Madison Square Garden's $15 million annual property tax exemption.
The proposals by New York City Comptroller John Liu include tax hikes on private equity firms, which would help offset his plan for $500 million in tax breaks and lowered fines for 90 percent of the city's small businesses.
Liu is expected to vie for the Democratic mayoral nomination for the election in November 2013.
The city could end tax breaks for big companies - more than $250 million of which were handed out last year, Liu said.
The city could also eliminate its $15 million annual property tax exemption for Madison Square Garden, the indoor arena in midtown Manhattan that's home to the New York Knicks basketball team. Madison Square Garden has been exempt from paying taxes on real property since 1982 under New York state law.
The arena is owned by The Madison Square Garden Co, which also owns the Knicks and other professional sports teams. The company also owns Radio City Music Hall, the Beacon Theatre and others venues, as well as television networks.
Liu also proposed examining tax breaks for special interests. Insurance companies, for instance, have not paid the general corporation tax since 1974, at a cost of $300 million annually to the city, he said.
Private equity firms could also start paying the unincorporated business tax for carried interest or gains from assets being held for investment. The exemption costs New York City about $200 million a year, Liu said.
Liu's package would use the revenue generated by those measures to offset his plan to ease the tax burden for small businesses.
He proposed ending the city's general corporation tax for all businesses with liabilities under $5,000 -- about 240,000 business in the city, or 85 percent of those that currently pay the tax.
His plan would also reduce some fines, as well as exempt businesses that make less than $250,000 in annual income from the city's unincorporated business tax.
The proposals would have to be approved by the governor and state legislature after a request by the city council.
The city is facing a possible $2.7 billion gap in fiscal 2014 that could grow to $3.8 billion the following year, Liu said.

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Republicans push own "fiscal cliff" plan; talks frozen

WASHINGTON (Reuters) - Republicans in the Congress pushed ahead on Thursday with a "fiscal cliff" plan that stands no chance of becoming law as time runs short to reach a deal with President Barack Obama to avert a Washington-induced economic recession.
House of Representatives Speaker John Boehner's "Plan B" to limit income-tax increases to the wealthiest sliver of the population appeared likely to pass the House on Thursday evening after it narrowly cleared a procedural hurdle in the afternoon.
However, Obama has vowed to veto the plan, and Senate Majority Leader Harry Reid said he will not bring it up for a vote in the Democratic-controlled chamber. White House spokesman Jay Carney called it a "multi-day exercise in futility."
Still, passage of Plan B could give Boehner the political cover he needs to strike a deal that would break with decades of Republican anti-tax orthodoxy.
"Time's running short. I'm going to do everything I can to protect as many Americans from an increase in taxes as I can," Boehner told a news conference.
Though it does not raise taxes on as many affluent Americans as Obama wants, the bill would put Republicans on record as supporting a tax increase on those who earn more than $1 million per year - a position the party opposed only weeks ago.
That could make it easier eventually to split the difference with Obama, who wants to lower the threshold to households that earn more than $400,000 annually. Obama also faces resistance on his left flank from liberals who oppose cuts to popular benefit programs, which Republicans say must be part of any deal.
Obama and Boehner will need to engage in more political theater to get lawmakers in both parties to sign on to the painful concessions that will have to be part of any deal to avert the cliff and rein in the national debt, analysts say.
"They are now in the mode where they have to demonstrate how hard they're trying to get everything they can," said Joe Minarik, a former Democratic budget official now with the Committee For Economic Development, a centrist think tank.
Even as he pressured Obama and the Democratic Senate to approve his plan, Boehner indicated that he was not willing to walk away from the bargaining table.
"The country faces challenges, and the president and I, in our respective roles, have a responsibility to work together to get them a result," Boehner said.
TIME RUNNING OUT
Obama and Boehner aim to reach a deal before the end of the year, when taxes will automatically rise for nearly all Americans and the government will have to scale back spending on domestic and military programs. The $600 billion hit to the economy could push the U.S. economy into recession, economists say.
Investors so far have assumed the two sides will reach a deal, but concerns over the fiscal cliff have weighed on markets in recent weeks. The S&P 500 index of U.S. stocks was up 0.4 percent in Thursday trading, despite a round of strong data on economic growth and housing.
"The closer we get to the end of the year without a deal, the more optimism is going to evaporate," said Todd Schoenberger, managing partner at LandColt Capital in New York.
Shares crept up after Boehner said he was prepared to work with Obama to prevent the fiscal cliff from kicking in.
Lawmakers are eager to wrap up their work and return home for the Christmas holiday, but congressional leaders kept the door open for last-minute action.
The Senate was expected to leave town on Thursday or Friday, but Reid said it could return next week to vote on any deal.
Boehner indicated the House would stay in session after Thursday's vote, scheduled for 7:45 p.m. EST (0045 GMT on Friday).
Several influential conservative groups have condemned Plan B, and some Republicans are expected to vote against it. But passage appeared likely after the House narrowly voted by 219 to 197 to bring the bill to the floor for debate.
The U.S. Chamber of Commerce, an influential business group that has often tangled with the Obama administration, offered grudging support.
"We are not comfortable allowing tax increases on anyone in this environment. However, we understand that, at times, politics requires compromise," the Chamber's top lobbyist, Bruce Josten, wrote in a letter to lawmakers.
To placate conservatives, Boehner also scheduled a vote on legislation that would shift $55 billion in scheduled defense cuts to cuts in food and health benefits for the poor and other domestic programs.
That measure also would roll back some of the Dodd-Frank financial regulation reforms of 2010. It is not expected to become law.

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Canada's seven-month budget gap narrows to C$10.6 billion

 Canada's federal budget deficit narrowed in the first seven months of the fiscal year to C$10.57 billion ($10.68 billion) from C$13.90 billion in the same period last year as personal and corporate income tax revenues rose and debt charges were lower.
The monthly shortfall in October was C$1.68 billion, compared with a gap of C$2.13 billion a year earlier, the Department of Finance said in a report on Friday.
The Conservative government in October pushed back by one year, to 2016-17, the date it expects to eliminate the deficit. Most economists believe that if the economy continues to grow, the books could be balanced sooner.
Ottawa has estimated a 2012-13 deficit of C$26 billion, including a C$1 billion cushion for risk.
In the April-October period, revenues increased by 3.6 percent, or C$4.9 billion, from the same period in 2011, pushed up by personal income tax and corporate income tax. Program expenses rose by 2 percent, or C$2.7 billion, on increases in elderly benefits and direct program expenses.
Public debt charges decreased 6.1 percent, or C$1.1 billion, on a lower effective interest rate.

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Modern Etiquette: A bit of netiquette will keep Christmas real

Christmas is a convivial time of year when people get together for celebrations and conversation. It's all about human contact so it's important that you're discriminating about how you use your digital devices.
It's fine if they're used to facilitate get-togethers and spread seasonal cheer. But Christmas is a real, not a virtual event, so it's important to discard the phones, tablets and computers and enjoy festive celebrations in the real world.
Christmas cards are still an invaluable and personal way of keeping in touch with far-flung friends and relations.
In these straitened times, however, you might want to cut down the number of cards you send, so it's fine to explain to your nearest and dearest that you won't be sending them cards - a personalized seasonal message by text, phone call or email, sent out to individuals, is quite acceptable.
Avoid sending out generic e-cards. They're lazy and impersonal, and many people will find them lacking in Christmas spirit or just baffling.
If you're emailing instead of sending a Christmas card, make sure that you send out unique - and individual - messages to each of your recipients. Group emails, like round robins, are to be avoided.
It's fine to put general seasonal messages on social networking sites, but avoid posting compromising photos.
This is the time of year when we all let our hair down, but not everyone will appreciate the evidence being posted for all to see in cyberspace.
Don't get too carried away with seasonal cyber-cheer. Spamming your friends and followers with endless Christmas wishes and updates will soon get tedious.
Christmas Day is all about socializing with family and friends, and enjoying good food and good conversation. So don't spend the big day glued to your phone, rather than interacting with your family.
Ban all phones from the Christmas table.
Eating together is all about sociability and it's a real insult to the host and/or cook to be transfixed by your texts rather than the turkey and table talk.
Be a good digital host.
Technology is part of our everyday life and Christmas is no exception. If you have friends or family staying in your home, make sure that you have your WiFi password to hand. Offer them access to your network, and hope that everyone adheres to good festive netiquette.
Christmas is the perfect time to make a video call, but choose your timing carefully. Nobody wants to be talking to virtual visitors during lunch or present opening.
Remember the power of the written word.
If you are the lucky recipient of a generous present or lavish hospitality, then hand-writing a proper thank you letter is a much more elegant gesture than texting or emailing, and will be noted and appreciated. It is fine to email or text your thanks for small presents.

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In Newtown, an anguished debate over gun rights, controls

Two days after a gunman opened fire in a Connecticut elementary school, killing 26 people, several dozen parents and children gathered in a circle at Newtown's public library to draw something positive from the town's sudden, tragic notoriety.
After several hours of anguished discussion about gun control, and of the responsibilities of parents and community members to prevent more bloodshed, Newtown United was born.
A Facebook and Twitter presence is on the way, and the group is already talking about meetings with elected officials and forming alliances with neighboring towns to push for such action as local automatic weapon bans.
"We have the benefit and the misfortune of being on the national stage right now," said Craig Mittleman, a 49-year-old father of four and an emergency physician. "In a week, everybody's going to be gone and Newtown is going to be just like Columbine, just like Virginia Tech. We're going to be on a list of towns victimized by this insanity."
The group's initial discussion took place as the emotional wounds from the massacre were still raw in this community. After 20-year-old Adam Lanza's mother was killed at their home, he drove 5 miles to Sandy Hook Elementary School, shot his way in and opened fire on staff and students, leaving 20 first-graders and six adults dead before killing himself.
Still, the purpose of the group is not entirely clear. More direct names like Newtown Against Guns and Act Now Newtown were rejected, and the group is also talking about simpler gestures, like building a memorial for the victims.
In Newtown, where it seems like everyone is connected in some way to Friday's massacre, an anguished debate has broken out: how to protect the rights of responsible gun owners, including hunters, while working to prevent another massacre.
Indeed, in this state with a long history of gun manufacturing but some of the strictest gun laws in the country, some residents say they are not ready to lay down their arms. Newtown itself has an active gun culture, residents say.
There is even a vocal minority that argues that if a school official had been armed, Friday's outcome might have been different.
"The gun is not the issue. If someone else there had a gun, maybe they could have stopped this," Benjamin Torres, owner of Betor Roofing in Danbury, said over breakfast at a Newtown diner. "The bad guys are going to get guns illegally anyway."
In the shooting's wake, the complexity of the issue was underscored by geography. Just up the street from Newtown's Reed Intermediate School, where volunteers had set up a grief counseling center, sits the headquarters of the National Shooting Sports Foundation, considered one of the nation's leading gun lobbies after the National Rifle Association.
A PLACE FOR RESTRICTIONS
New England, and specifically Connecticut, was once a center of gun-making. Colt's Patent Manufacturing Co was founded in Hartford, and Remington, Sturm Ruger and Co, and Savage Arms all have Connecticut roots.
The subject of guns took center stage almost immediately after the shooting. A local hunting club suspended outings to avoid tormenting grieving families with the sound of gunfire.
"We thought it would be rather disrespectful considering what they're going through," said Frank Hufner, president of the Newtown Fish and Game Club, which has some 300 members who fish and hunt in the heavily forested hills surrounding Newtown's Sandy Hook neighborhood, where the eponymous school sits.
At Shooters Pistol Range, a firing range in nearby New Milford, the owner said gun owners are being given a bad name, but he largely declined to answer questions.
"I live in that town. My children went to that school. This is not a time to make news," said the range's white-bearded owner, who declined to give his name. "Holiday season is a tough time to lose someone, especially kids, and I'm not going to add to their misery."
He also said he did not trust the press to accurately portray gun enthusiasts. "Many of us are college-educated. I myself have a masters' degree."
On Saturday afternoon at a Dick's Sporting Goods store in Danbury, shoppers milled about the hunting section.
One shopper, 19-year-old Peter Griffin from nearby Redding, said the shooting only strengthened his enthusiasm for guns because killers are more likely to go where there are no guns.
"Personally, I feel safer where there's guns. I don't want to go to any gun-free zones any more," said Griffin, an apprentice cabinet maker who owns three guns.
Newtown-area gun businesses say sales have picked up since President Barack Obama's election, as gun owners fear a crack-down.
"It's absolutely booming right now - anything about guns. People are scared out of their wildest dreams that the FBI is going to come and knock down their doors," said Sean Eldridge, owner of Parker Gunsmithing in nearby Bethel, who specializes in repairing and restoring guns.
TAKING LEADERSHIP
Len Strocchia, 46, who lives 10 houses down from the Lanzas, is no stranger to gun violence. His alma mater, Virginia Tech, was the site of a mass shooting in 2007. He also lost a high school classmate in the 1993 shooting on the Long Island Railroad in New York, which left six people dead and 19 others wounded.
"I'm disgusted that this mass murder took place with legally purchased firearms," said Strocchia, who attended the Newtown meeting with his daughter.
On Sunday, Tim Northrop, a 49-year-old Newtown resident whose next-door neighbor, Anne Marie Murphy, a mother of four, was among the teachers killed, sent letters to Connecticut's U.S. Senator Richard Blumenthal and Senator-elect Chris Murphy.
"The people of your state have been assaulted and murdered. We demand that you take leadership in pursuing new gun control legislation," the letter said. "Be the leader that this country is sorely lacking. Have the courage to stand up for those kids that were murdered."

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Internet ayatollah: Iran's supreme leader "likes" Facebook

 Facebook - banned in Iran due to its use by activists to rally government opponents in 2009 - has an unlikely new member: Supreme Leader Ayatollah Ali Khamenei.
Launched a few days ago, the Facebook page "Khamenei.ir" displays photographs of the 73-year-old cleric alongside speeches and pronouncements by the man who wields ultimate power in the Islamic Republic.
While there are several other Facebook pages already devoted to Khamenei, the new one - whose number of "likes" quadrupled on Monday to over 1,000 - appeared to be officially authorized, rather than merely the work of admirers.
The page has been publicized by a Twitter account of the same name that Iran experts believe is run by Khamenei's office.
Both U.S-based social media sites are blocked in Iran by a wide-reaching government censor but they are still commonly used by millions of Iranians who use special software to get around the ban.
In 2009, social media were a vital tool for those Iranians who believed the re-election of President Mahmoud Ahmadinejad was rigged. Facebook was used to help organize street protests of a scale not seen since the Islamic Revolution of 1979.
The protests - which the government said were fuelled by Iran's foreign enemies - were eventually stamped out by the security forces and their political figureheads remain under house arrest.
Khamenei's Facebook page has so far shared a picture of a young Khamenei alongside the founder of the Islamic Republic, Ayatollah Ruhollah Khomeini, in the early 1960s.
It shares a similar tone, style and content with accounts devoted to disseminating Khamenei's message on Twitter and Instagram and to the website www.khamenei.ir, a sophisticated official website published in 13 languages.
Experts said the social media accounts showed that Iran, despite restricting access to such sites inside the country, was keen to use them to spread its world view to a global audience.
"Social media gives the regime leadership another medium of communication, one that can share their message with a younger and far more international demographic," said Afshon Ostovar, a Middle East analyst at CNA, a U.S.-based research organization.
Iran is locked in a decade-long dispute with the West over its nuclear program, which the U.S. and its allies suspect is aimed at developing a bomb, something Iran has repeatedly denied. Iran, the West and regional states are also often opposed on issues such as the violence raging in Syria and the Israeli-Palestinian conflict.
Iranian authorities have said they are trying to build a national intranet, something skeptics say is a way to further control Iranians' access to the global web. Tehran tried to block Google Inc.'s email service this year but soon reopened access.

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Shine America, Jack Black's Electric Dynamite Producing Comedy Series for Yahoo

 Shine America and Jack Black's Electric Dynamite Productions have partnered to produce "Ghost Ghirls," a new comedy series that will debut in the Spring on Yahoo! Screen, the web giant's video portal.
Jeremy Konner, Amanda Lund and Maria Blasucci created the show, which stars Lund and Blasucci as a pair of hapless investigators on the hunt for paranormal activity. It has begun production on a first season of 12 episodes.
Konner, who directed Funny or Die's "Drunk History" videos, will direct and executive produce with Lund, Blasucci, Black and Priyanka Matoo of Electric Dynamite.
"‘Ghost Ghirls' is the funniest idea for a TV show that we've seen since I've been in the business," Black said in a statement. "Jeremy Konner is an electrifying director, and Amanda and Maria are dynamite comedic talents. I'm very proud to be associated with such a powerful project."
Konner, Lund and Blasucci pitched the show to Eletric Dyanmite, which then brought it to Shine America. Shine is funding it.
No numbers were disclosed, but it has "a very healty budget for a digital series," according to Vivi Zigler, president of Shine 360 and Digital for Shine America.
"This one is pretty broad comedy," Zigler told TheWrap. "There is physical comedy, there's some very funny situational comedy that occurs."
Yahoo also airs Shine's "Who Knew," a news-focused web series.
Black, whose production company is based in Shine America's office building, will make a cameo in the series. He has also recruited assorted friends and comedians like Molly Shannon and Jason Schwartzman to do the same.
"Once Jack starts calling his friends, we almost have a play happening at the set," Zigler said.

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As online voting begins, Oscars take extra steps not to leave voters behind

The Academy opened online voting for the first time in his history on Monday. But in the days leading up to the unprecedented move away from paper ballots, AMPAS also took measures to make sure that chunks of its membership aren't left on the sidelines by the digital revolution.
"We're trying to enfranchise as many members as possible," AMPAS COO Ric Robertson told TheWrap.
Months ago, the organization set up stations in the lobby of its Beverly Hills headquarters where members could register to vote electronically and also receive answers to questions about the process.
In November, the organization extended the deadline for voters to request paper ballots.
And in the week before that new December 14 deadline, AMPAS took an extra step that essentially made that deadline irrelevant. Academy officials, worried about the number of members who hadn't chosen either option, decided to mail paper ballots to every one of its 5,856 members whose dues were current but who hadn't signed up for the online-voting option.
"If you've paid your dues and you haven't registered to vote electronically, we're going to send you a paper ballot whether or not you've asked for one," said Robertson.
That final decision by AMPAS officials, he said, will make the percentage of potential nominating voters commensurate with what it has been in prior years, when all voters whose dues were paid automatically received paper ballots.
"Between those who registered to vote electronically and those who are receiving paper ballots, we're at a number that is similar to what we've had in the past," he said.
As for the breakdown in this first year of online voting, Robertson said that "the majority of voting members" have registered to cast their votes by computer.
The move to online voting, he added, is particularly important this year, when the deadline to return nominating ballots is January 3, two weeks earlier than usual.
"The voting period for nominations is essentially the holiday season," he said. "Whether you're vacationing in Hawaii or working in Mexico, it's now much easier to vote - and you don't have to worry about being out of town while your ballot is sitting in your mailbox back in West L.A."
Still, Robertson admits that not every AMPAS voter has embraced moving into the online age.
"We have some members who are not shy in any way about saying, 'I'm going to vote paper and I'm not changing,'" he said. "But I was really pleasantly surprised that the number of people who registered to vote electronically was higher than I anticipated."
Throughout the year, he added, the Academy has had focus groups with members to explain the online voting process. And though the Screen Actors Guild had its nominations leaked early last week through an error on its website, Robertson insists that the Academy is not worried.
"I am confident about it," he said. "We have taken extensive measures to make sure our system is secure and protected."
While in past years, PricewaterhouseCoopers partners have told TheWrap that a large number of members voted and returned their nominating ballots immediately after receiving them, Robertson said he doesn't expect a similar early rush this time.
"Most of our members are still trying to see the movies," he said. "I don't think too many people are going to be voting right away this year."

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