Well: How to Go Vegan

When I first heard former President Bill Clinton talk about his vegan diet, I was inspired to make the switch myself. After all, if a man with a penchant for fast-food burgers and Southern cooking could go vegan, surely I could too.

At the grocery store, I stocked up on vegan foods, including almond milk (that was the presidential recommendation), and faux turkey and cheese to replicate my daughter’s favorite sandwich. But despite my good intentions, my cold-turkey attempt to give up, well, turkey (as well as other meats, dairy and eggs) didn’t go well. My daughter and I couldn’t stand the taste of almond milk, and the fake meat and cheese were unappealing.

Since then, I’ve spoken with numerous vegan chefs and diners who say it can be a challenge to change a lifetime of eating habits overnight. They offer the following advice for stocking your vegan pantry and finding replacements for key foods like cheese and other dairy products.

NONDAIRY MILK Taste all of them to find your favorite. Coconut and almond milks (particularly canned coconut milk) are thicker and good to use in cooking, while rice milk is thinner and is good for people who are allergic to nuts or soy. My daughter and I both prefer the taste of soy milk and use it in regular or vanilla flavor for fruit smoothies and breakfast cereal.

NONDAIRY CHEESE Cheese substitutes are available under the brand names Daiya, Tofutti and Follow Your Heart, among others, but many vegans say there’s no fake cheese that satisfies as well as the real thing. Rather than use a packaged product, vegan chefs prefer to make homemade substitutes using cashews, tofu, miso or nutritional yeast. At Candle 79, a popular New York vegan restaurant, the filling for saffron ravioli with wild mushrooms and cashew cheese is made with cashews soaked overnight and then blended with lemon juice, olive oil, water and salt.

THINK CREAMY, NOT CHEESY Creaminess and richness can often be achieved without a cheese substitute. For instance, Chloe Coscarelli, a vegan chef and the author of “Chloe’s Kitchen,” has created a pizza with caramelized onion and butternut squash that will make you forget it doesn’t have cheese; the secret is white-bean and garlic purée. She also offers a creamy, but dairy-free, avocado pesto pasta. My daughter and I have discovered we actually prefer the rich flavor of butternut squash ravioli, which can be found frozen and fresh in supermarkets, to cheese-filled ravioli.

NUTRITIONAL YEAST The name is unappetizing, but many vegan chefs swear by it: it’s a natural food with a roasted, nutty, cheeselike flavor. Ms. Coscarelli uses nutritional yeast flakes in her “best ever” baked macaroni and cheese (found in her cookbook). “I’ve served this to die-hard cheese lovers,” she told me, “and everyone agrees it is comparable, if not better.”

Susan Voisin’s Web site, Fat Free Vegan Kitchen, offers a nice primer on nutritional yeast, noting that it’s a fungus (think mushrooms!) that is grown on molasses and then harvested and dried with heat. (Baking yeast is an entirely different product.) Nutritional yeasts can be an acquired taste, she said, so start with small amounts, sprinkling on popcorn, stirring into mashed potatoes, grinding with almonds for a Parmesan substitute or combining with tofu to make an eggless omelet. It can be found in Whole Foods, in the bulk aisle of natural-foods markets or online.

BUTTER This is an easy fix. Vegan margarines like Earth Balance are made from a blend of oils and are free of trans fats. Varieties include soy-free, whipped and olive oil.

EGGS Ms. Coscarelli, who won the Food Network’s Cupcake Wars with vegan cupcakes, says vinegar and baking soda can help baked goods bind together and rise, creating a moist and fluffy cake without eggs. Cornstarch can substitute for eggs to thicken puddings and sauces. Vegan pancakes are made with a tablespoon of baking powder instead of eggs. Frittatas and omelets can be replicated with tofu.

Finally, don’t try to replicate your favorite meaty foods right away. If you love a juicy hamburger, meatloaf or ham sandwich, you are not going to find a meat-free version that tastes the same. Ms. Voisin advises new vegans to start slow and eat a few vegan meals a week. Stock your pantry with lots of grains, lentils and beans and pile your plate with vegetables. To veganize a recipe, start with a dish that is mostly vegan already — like spaghetti — and use vegetables or a meat substitute for the sauce.

“Trying to recapture something and find an exact substitute is really hard,” she said. “A lot of people will try a vegetarian meatloaf right after they become vegetarian, and they hate it. But after you get away from eating meat for a while, you’ll find you start to develop other tastes, and the flavor of a lentil loaf with seasonings will taste great to you. It won’t taste like meat loaf, but you’ll appreciate it for itself.”

Ms. Voisin notes that she became a vegetarian and then vegan while living in a small town in South Carolina; she now lives in Jackson, Miss.

“If I can be a vegan in these not-quite-vegan-centric places, you can do it anywhere,” she said. “I think people who try to do it all at once overnight are more apt to fail. It’s a learning process.”


What are your tips for vegan cooking and eating? Share your suggestions on ingredients, recipes and strategies by posting a comment below or tweeting with the hashtag #vegantips.

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Fitch warns that debt-limit delay could hurt U.S. credit rating









WASHINGTON — As Congress again veers close to the nation's debt limit, a leading credit rating company is delivering a stark warning: Don't wait until the last minute.


Fitch Ratings said Tuesday that the U.S. could lose its AAA credit rating if lawmakers don't raise the $16.4-trillion debt limit in a "timely manner" as a possible default looms as early as mid-February.


Congressional Republicans want major government spending cuts in exchange for another debt-limit increase. But Fitch, one of three major credit-rating companies, said the debt limit should not be used as leverage.





"In Fitch's opinion, the debt ceiling is an ineffective and potentially dangerous mechanism for enforcing fiscal discipline," the company said.


For that reason, a group of House Democrats on Wednesday plan to announce legislation to eliminate the debt limit. They said Republicans are exploiting it and risking another financial crisis.


QUIZ: Test your knowledge about the debt limit


"In the old days, which weren't that long ago, both parties grandstanded on the debt ceiling," Rep. Peter Welch (D-Vt.) said. "But grandstanding is one thing. Defaulting is another, and they're prepared to do it."


Congress has increased the debt limit 76 times since 1962. But in recent years, as the budget deficit has soared, clashes over the limit have become more contentious.


Standard & Poor's downgraded the nation's AAA rating in 2011 after the last debt-limit battle. Fitch and the other major firm, Moody's Investors Service, did not. But they have given the U.S. rating a negative outlook, a prelude to a downgrade.


Fitch said Tuesday that it wasn't calling for elimination of the debt limit, just raising concerns about how it is being used.


"Fitch is not advocating any particular policy, but we are making the point that regular episodes of running up against the debt ceiling generates considerable uncertainty and undermines confidence in the predictability and reliability of the federal government as a borrower," said David Riley, Fitch's managing director for sovereign and supranational ratings.


A repeat of the 2011 brinkmanship would trigger a formal review of the U.S. credit rating because it would raise doubts about the ability of policymakers to agree on ways to reduce the budget deficit, Fitch said.


But the firm also noted that failure by Congress and the White House to agree on a plan to reduce the deficit could lead to a credit-rating downgrade later this year "even if another debt-ceiling crisis is averted."


House Majority Leader Eric Cantor (R-Va.) seized on that second point and criticized President Obama for saying he would not negotiate budget cuts with Congress in exchange for a debt-limit increase.


"It's time for President Obama to stop putting our credit rating at risk and acknowledge we need a credible deficit reduction plan attached to any increase in the debt limit," Cantor said. "It's time to come together, get to work and solve the problem."


Obama said Monday that borrowing under the debt limit pays only for spending already authorized by Congress and that lawmakers were responsible for raising the limit or risking an economically devastating default.


The U.S. technically reached the debt limit on Dec. 31. But the Treasury Department has been using what it calls "extraordinary measures" to juggle the nation's finances and buy some more time.


Treasury Secretary Timothy F. Geithner informed congressional leaders Monday that those measures would be exhausted as early as mid-February, though they could give lawmakers until mid-March. Geithner said it was difficult to be more precise because the flow of money in and out of the Treasury is more volatile during tax season.


On Tuesday, Geithner wrote to congressional leaders to say that the Treasury had initiated another of those measures, suspending daily reinvestment of a federal employees' pension plan. Treasury has said the move — essentially borrowing from the plan — would free up about $156 billion.


Once the debt limit is increased, the plan would be reimbursed, Geithner said.


jim.puzzanghera@latimes.com





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Rupert Murdoch says Los Angeles Times purchase not a sure thing









Now that Rupert Murdoch is spinning off News Corp.’s publishing properties into a separate company, media observers have identified the Los Angeles Times as a likely target for acquisition.


Murdoch isn’t one of them.


"It won’t get through with the Democratic administration in place," Murdoch said during a break in the Golden Globes ceremony Sunday night in Beverly Hills.





PHOTOS: Golden Globes 2013 red carpet


Murdoch was alluding to federal regulations that seek to limit media consolidation. A Federal Communications Commission rule adopted in 1975 bars the same company from owning newspapers and television stations in the same market. News Corp. owns two television stations in Los Angeles: KTTV-TV Channel 11 and KCOP-TV Channel 13. Adding the L.A. Times to the portfolio would put Murdoch in violation of the cross-ownership rules.


News Corp. is expected to split into two publicly traded companies this summer.  The more profitable Fox television and movie studio properties will become one company called the Fox Group. Newspapers, including the Wall Street Journal, New York Post, Times of London and the Australian, along with HarperCollins book publishing, will make up another stand-alone company called News Corp.


Murdoch will be chairman of both entities.


Jack Goodman, a communications lawyer and former attorney with the National Assn. of Broadcasters, said Monday that separating the newspapers from the TV stations will not get Murdoch out of the cross hairs of FCC cross-ownership rules. Murdoch and his family are expected to retain their voting control in both the Fox Group and News Corp.


Under the FCC’s current rules, because Murdoch would be a common officer of both corporations, the assets of one would be considered owned by the other.


Murdoch could apply for a waiver to those rules. Tribune currently holds such a waiver because the company also owns KTLA-TV Channel 5 and The Times. Murdoch holds one because News Corp. owns the New York Post and two TV stations in the New York metropolitan region.


Murdoch received the FCC waiver for the New York Post in 1993, after a hard-fought, months-long battle with the FCC. The waiver -- to help rescue the tabloid from bankruptcy court -- came five years after Murdoch was forced to sell the Post to comply with the cross-ownership rules.


IN CASE YOU MISSED IT: Golden Globes 2013ListWinners | Ballot | Moments | Quotes | Best & Worst


The FCC rules would not be an immediate roadblock. The Fox Group will not need to seek renewals of its licenses for its two Los Angeles stations until mid-2014. That's when the issue would become a problem (although Murdoch would not want to spend hundreds of millions of dollars buying an asset, only to be forced to divest the same asset within a year).


Two other media companies, Belo Corp. and Cox Communications, also have waivers. Although Belo's TV stations and newspapers – among them the Dallas Morning News and the Riverside Press-Enterprise -- operate as two separate companies, Robert W. Decherd serves as chairman of both.


FCC Chairman Julius Genachowski has recommended an effort to "streamline and modernize" media concentration rules as the Internet has made concerns about media monopolies less of a factor.


Some reports indicate that Genachowski has proposed new rules to allow common ownership of a daily newspaper and a TV station in the 20 biggest U.S. cities, which should allow Murdoch sufficient wiggle room.


Times staff writer Joe Flint contributed to this report


ALSO:

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News Corp. declines to hint on possible purchases


Rupert Murdoch, other potential suitors eye the Los Angeles Times







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Apple stock wilts on worries about iPhone demand






SAN FRANCISCO (AP) — Apple‘s stock slipped below $ 500 for the first time in 11 months on Monday as investors reacted to reports signaling the company’s latest iPhone is falling further behind a slew of sleek alternatives running Google’s Android software.


The latest indication that Apple, the world’s most valuable company, is seeing sluggish demand for its iPhone 5 emerged in separate stories published Monday in the Japanese newspaper Nikkei and The Wall Street Journal. Both publications cited unnamed people familiar with the situation saying Apple has dramatically reduced its orders for the parts needed to build the newest iPhone because the device isn’t selling as well as the company hoped.






The adjustment means Apple will buy about half as many display screens for the iPhone as management originally planned for the opening three months of the year, according to the newspapers.


Apple Inc., which is based in Cupertino, Calif., declined to comment Monday. Spokeswoman Natalie Kerris said Apple executives would share their views on market conditions Jan. 23 when the company is scheduled to release its financial results for the final three months of 2011. The period covers the first full quarter that the iPhone 5 was on sale.


Although Apple hailed the iPhone 5 as the best version yet of a product that has revolutionized the telecommunications and computing industry, the company’s stock has wilted since the device hit the market.


After peaking at $ 705.07 on the day of the iPhone 5′s Sept. 21 release, Apple’s stock has plunged nearly 30 percent. The shares fell $ 18.55, or 3.6 percent, to close Monday’s regular trading at $ 501.75, dragging the company’s market value nearly $ 190 billion below where it stood in late September. The stock traded at $ 498.51 earlier in the day, its lowest price since February.


The stock’s decline hasn’t been entirely caused by concerns about the iPhone 5′s sales performance. Industry analysts are also worried about the recent introduction of a smaller, less expensive iPad cutting into the company’s profits.


But the biggest fears hover around the iPhone because it has become Apple’s most valuable product since the company’s late CEO, Steve Jobs, unveiled the first model in 2007. Apple has sold more than 271 million of the devices since then, and in the company’s last fiscal year ending in September, the iPhone generated $ 80 billion in sales to account for more than half of the company’s total revenue.


But Apple’s upgrades of the iPhone in the past two years have disappointed gadget lovers who have been clamoring for Apple to do more to stay in front of device makers relying on the free Android software made by Google Inc. For instance, there were high hopes for a larger iPhone screen with the release of the 2011 model, but Apple waited until last September to take that leap. And when Apple moved to a larger display screen with the iPhone 5, it didn’t include a special chip to enable users to make mobile payments by tapping the handset on another device at the checkout stand. Such a mobile payment feature is available on some Android phones.


Finally, Apple has insisted that wireless carriers subsidize so much of the iPhone’s cost in exchange for customers’ two-year commitments on data plans that the carriers make little or no money by selling the devices. That has prompted more wireless carriers to tout less expensive Android phones in their stores, undercutting the demand for iPhones, said Darren Hayes, who has been studying the shifting market conditions as chairman of the computing systems program at Pace University in New York.


Through the third quarter of last year, Android devices represented 75 percent of smartphone shipments worldwide according to the research firm International Data Corp. That was up from 58 percent at the same point 2011. Meanwhile, Apple’s share of worldwide smartphone shipments has fallen from a peak of 23 percent in the fourth quarter of 2011 to 15 percent in the third quarter of last year.


Samsung Electronics, in particular, has been benefiting from the growing popularity of its Android-powered phones, led by its Galaxy S line. The company said Monday that it sold more than 100 million Galaxy S phones in less than three years. It took the iPhone nearly four years to reach that milestone.


“This is a real wake-up call for Apple,” Hayes said. “They need to be more flexible in how they do things.” Among other things, Hayes thinks Apple may have to reduce the financial burden on wireless carriers selling the iPhone and spend more money advertising the devices, especially with the recent wave of phones running on Microsoft Corp.’s Windows software. Apple’s efforts to sell more iPhones to companies also could be short-circuited if Research in Motion Ltd.’s upcoming release of a revamped BlackBerry proves to be a hit. The BlackBerry is due out Jan. 30.


In an attempt to regain its competitive edge, Apple already is considering the release of a less expensive version of the iPhone made of cheaper parts to boost sales in less affluent countries, according to a report last week in The Wall Street Journal. The company so far hasn’t commented on that speculation, either. The least expensive iPhone 5 without a wireless contract sells for $ 649. With the subsidy included with a two-year wireless service contract, the iPhone 5 sells for as little as $ 199.


Even as it loses ground to Android products, the iPhone remains a solid seller. Some analysts believe Apple sold more than 50 million iPhones in its last quarter ending in December, which would be far the most units that the company has ever shipped during any previous three-month period.


What’s more, the iPhone 5 got off to a torrid start in China, where Apple expects to eventually sell more devices than it does in the U.S. Apple said it sold more than two million iPhone 5s in the three days after its debut in China last month.


Wireless News Headlines – Yahoo! News





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AP source: Armstrong tells Oprah he doped


AUSTIN, Texas (AP) — Lance Armstrong confessed to Oprah Winfrey during an interview Monday that he used performance-enhancing drugs to win the Tour de France, a person familiar with the situation told The Associated Press.


The person spoke on condition of anonymity because the interview is to be broadcast Thursday on Winfrey's network.


Armstrong was stripped of all seven Tour titles last year following a voluminous U.S. Anti-Doping Agency report that portrayed him as a ruthless competitor, willing to go to any lengths to win the prestigious race.


USADA chief executive Travis Tygart labeled the doping regimen allegedly carried out by the U.S. Postal Service team that Armstrong once led, "The most sophisticated, professionalized and successful doping program that sport has ever seen."


After a federal investigation of the cyclist was dropped without charges being brought last year, USADA stepped in with an investigation of its own. The agency deposed 11 former teammates and accused Armstrong of masterminding a complex and brazen drug program that included steroids, blood boosters and a range of other performance-enhancers.


A group of about 10 close friends and advisers to Armstrong left a downtown Austin hotel about three hours after they arrived Monday afternoon for the taping. Among them were Armstrong attorneys Tim Herman and Sean Breen, along with Bill Stapleton, Armstrong's longtime agent, manager and business partner. All declined comment entering and exiting the session.


Soon afterward, Winfrey tweeted: "Just wrapped with (at)lancearmstrong More than 2 1/2 hours. He came READY!" She was scheduled to appear on "CBS This Morning" on Tuesday to discuss the interview.


In a text to the AP on Saturday, Armstrong said: "I told her (Winfrey) to go wherever she wants and I'll answer the questions directly, honestly and candidly. That's all I can say."


Armstrong stopped at the Livestrong Foundation, which he founded, on his way to the interview and said, "I'm sorry" to staff members, some of whom broke down in tears. A person with knowledge of that session said Armstrong choked up and several employees cried during the session.


The person also said Armstrong apologized for letting the staff down and putting Livestrong at risk but he did not make a direct confession to using banned drugs. He said he would try to restore the foundation's reputation, and urged the group to continue fighting for the charity's mission of helping cancer patients and their families.


Armstrong spoke to a room full of about 100 staff members for about 20 minutes, expressing regret for everything the controversy has put them through, the person said. He told them how much the foundation means to him and that he considers the people who work there to be like members of his family. None of the people in the room challenged Armstrong over his long denials of doping.


Winfrey and her crew had earlier said they would film Monday's session at Armstrong's home. As a result, local and international news crews were encamped near the cyclist's Spanish-style villa before dawn.


Armstrong still managed to slip away for a run despite the crowds outside his home. He returned by cutting through a neighbor's yard and hopping a fence.


___


Jim Litke reported from Chicago.


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Well: How to Go Vegan

When I first heard former President Bill Clinton talk about his vegan diet, I was inspired to make the switch myself. After all, if a man with a penchant for fast-food burgers and Southern cooking could go vegan, surely I could too.

At the grocery store, I stocked up on vegan foods, including almond milk (that was the presidential recommendation), and faux turkey and cheese to replicate my daughter’s favorite sandwich. But despite my good intentions, my cold-turkey attempt to give up, well, turkey (as well as other meats, dairy and eggs) didn’t go well. My daughter and I couldn’t stand the taste of almond milk, and the fake meat and cheese were unappealing.

Since then, I’ve spoken with numerous vegan chefs and diners who say it can be a challenge to change a lifetime of eating habits overnight. They offer the following advice for stocking your vegan pantry and finding replacements for key foods like cheese and other dairy products.

NONDAIRY MILK Taste all of them to find your favorite. Coconut and almond milks (particularly canned coconut milk) are thicker and good to use in cooking, while rice milk is thinner and is good for people who are allergic to nuts or soy. My daughter and I both prefer the taste of soy milk and use it in regular or vanilla flavor for fruit smoothies and breakfast cereal.

NONDAIRY CHEESE Cheese substitutes are available under the brand names Daiya, Tofutti and Follow Your Heart, among others, but many vegans say there’s no fake cheese that satisfies as well as the real thing. Rather than use a packaged product, vegan chefs prefer to make homemade substitutes using cashews, tofu, miso or nutritional yeast. At Candle 79, a popular New York vegan restaurant, the filling for saffron ravioli with wild mushrooms and cashew cheese is made with cashews soaked overnight and then blended with lemon juice, olive oil, water and salt.

THINK CREAMY, NOT CHEESY Creaminess and richness can often be achieved without a cheese substitute. For instance, Chloe Coscarelli, a vegan chef and the author of “Chloe’s Kitchen,” has created a pizza with caramelized onion and butternut squash that will make you forget it doesn’t have cheese; the secret is white-bean and garlic purée. She also offers a creamy, but dairy-free, avocado pesto pasta. My daughter and I have discovered we actually prefer the rich flavor of butternut squash ravioli, which can be found frozen and fresh in supermarkets, to cheese-filled ravioli.

NUTRITIONAL YEAST The name is unappetizing, but many vegan chefs swear by it: it’s a natural food with a roasted, nutty, cheeselike flavor. Ms. Coscarelli uses nutritional yeast flakes in her “best ever” baked macaroni and cheese (found in her cookbook). “I’ve served this to die-hard cheese lovers,” she told me, “and everyone agrees it is comparable, if not better.”

Susan Voisin’s Web site, Fat Free Vegan Kitchen, offers a nice primer on nutritional yeast, noting that it’s a fungus (think mushrooms!) that is grown on molasses and then harvested and dried with heat. (Baking yeast is an entirely different product.) Nutritional yeasts can be an acquired taste, she said, so start with small amounts, sprinkling on popcorn, stirring into mashed potatoes, grinding with almonds for a Parmesan substitute or combining with tofu to make an eggless omelet. It can be found in Whole Foods, in the bulk aisle of natural-foods markets or online.

BUTTER This is an easy fix. Vegan margarines like Earth Balance are made from a blend of oils and are free of trans fats. Varieties include soy-free, whipped and olive oil.

EGGS Ms. Coscarelli, who won the Food Network’s Cupcake Wars with vegan cupcakes, says vinegar and baking soda can help baked goods bind together and rise, creating a moist and fluffy cake without eggs. Cornstarch can substitute for eggs to thicken puddings and sauces. Vegan pancakes are made with a tablespoon of baking powder instead of eggs. Frittatas and omelets can be replicated with tofu.

Finally, don’t try to replicate your favorite meaty foods right away. If you love a juicy hamburger, meatloaf or ham sandwich, you are not going to find a meat-free version that tastes the same. Ms. Voisin advises new vegans to start slow and eat a few vegan meals a week. Stock your pantry with lots of grains, lentils and beans and pile your plate with vegetables. To veganize a recipe, start with a dish that is mostly vegan already — like spaghetti — and use vegetables or a meat substitute for the sauce.

“Trying to recapture something and find an exact substitute is really hard,” she said. “A lot of people will try a vegetarian meatloaf right after they become vegetarian, and they hate it. But after you get away from eating meat for a while, you’ll find you start to develop other tastes, and the flavor of a lentil loaf with seasonings will taste great to you. It won’t taste like meat loaf, but you’ll appreciate it for itself.”

Ms. Voisin notes that she became a vegetarian and then vegan while living in a small town in South Carolina; she now lives in Jackson, Miss.

“If I can be a vegan in these not-quite-vegan-centric places, you can do it anywhere,” she said. “I think people who try to do it all at once overnight are more apt to fail. It’s a learning process.”


What are your vegantips? We’re collecting suggestions on ingredients, recipes and strategies.

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JPMorgan told to fix poor risk management tied to $6-billion loss









JPMorgan Chase & Co. has been ordered to take steps to correct poor risk management that led to a surprise trading loss last year of more than $6 billion.

Federal regulators also cited JPMorgan for lapses in oversight that allowed the bank to be used for money laundering.

JPMorgan, the nation's largest bank by assets, will not pay a fine under the agreements with the Federal Reserve and the U.S. Comptroller of the Currency, a Treasury Department agency. The bank promised to strengthen its policies and procedures to control risk and to screen customers to prevent money laundering.








The regulators each issued two cease-and-desist orders against JPMorgan, a sanction that requires a bank to change its practices. They said they had found "deficiencies" in the bank's procedures to prevent money laundering, and "unsafe or unsound practices" regarding management of risk. The order said the regulators and other government agencies could pursue further action.

The regulators said the bank had committed to take "all necessary and appropriate steps" to correct the problems.

JPMorgan neither admitted nor denied the regulators' findings in agreeing to the accords.

"We've been working hard to fully remediate the issues" related to risk management, JPMorgan spokesman Mark Kornblau said Monday. He added that the bank had also made preventing money laundering a "top priority."

JPMorgan disclosed in May that its London office lost billions of dollars in trades designed to hedge against risk. The bank later said some traders had tried to hide the size of the losses.

The loss, which occurred less than four years after the 2008 financial crisis, hurt the bank's reputation. JPMorgan had survived the crisis by taking fewer risks than its competitors.

JPMorgan Chief Executive Jamie Dimon acknowledged before congressional lawmakers in June that the bank made mistakes but defended its strategy for managing risk.

Still, JPMorgan took action against several employees at the heart of the controversy. Two senior managers and the trader linked to the London trading operation were fired. The bank took back nearly two years' compensation from them.

In addition to the firings, Ina Drew, JPMorgan's chief investment officer overseeing its trading strategy, retired after 30 years at the bank and voluntarily repaid two years of salary.

The bank also made a broad reshuffle of its top management, in an apparent bid to restore investors' trust.

The second action announced Monday against JPMorgan was related to money-laundering controls. The accord did not cite any specific case, but the agreement reached was similar to one Citibank struck with regulators in April.

JPMorgan was cited for poorly monitoring potential money laundering at a time when a number of banks have been in the spotlight for such abuse.





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California's debt still a heavy cloud over state's future









SACRAMENTO — Gov. Jerry Brown proclaimed last week that California, which now has enough cash to pay its day-to-day bills, can no longer be described by naysayers as a "failed state."


But even though it appears to be free of the deficit that dogged the Capitol in recent years, the state is no model of financial health.


Sacramento is legally obligated to pay many billions of dollars withheld from schools, local governments and healthcare providers as lawmakers struggled repeatedly to balance the books. It owes Wall Street more per resident than almost every other state. And it has accumulated a crushing load of debt for retiree pensions and healthcare, now totaling more than taxpayers spend each year on all state programs combined.





The budget Brown proposed Thursday addresses only a small portion of the overall debt, which stems from the same types of bills that drove cities like Vallejo, Stockton and San Bernardino into bankruptcy. The state is likely to find its debt consuming an ever larger share of money meant for the basic needs of government.


"Every year we fail to acknowledge or fix these things, it just makes the cost bigger," said Joe Nation, a former Democratic assemblyman who teaches public policy at Stanford University.


When he released his budget plan, Brown vowed to knock down the state's "wall of debt." He presented a timeline for repaying nearly $28 billion the state owes to government programs that it raided for cash or deprived of funds over the years, as well as some bonds sold to balance the budget.


Payments of $4.2 billion would be made in the budget year that begins in July. Subsequent payments, growing to as much as $7.3 billion a year, would continue into 2017.


At that point, Brown says, $4.3 billion in debt would remain, mostly for delayed payments to healthcare providers and money owed to municipalities and schools for implementing state mandates.


"By paying down the debt, we've put ourselves in a stronger position when things go bad, as they inevitably do," Brown said.


But numerous reports by state agencies, think tanks and academics have shown the wall of debt to be many stories higher than $28 billion — hundreds of billions of dollars over the next few decades. Brown's repayment plan does not significantly reduce the sizable debt to Wall Street or account for promises the state has made to its current and future retirees but is not setting enough money aside to cover.


"If we just ignore these longer-term pressures, we're going to be back in the soup soon," said Mike Genest, who was budget director for Gov. Arnold Schwarzenegger.


State officials must grapple with a major shortfall in the retirement fund for teachers. Fund officials have warned that Sacramento needs to immediately start contributing about $3 billion annually to keep the pension system solvent.


Sacramento could kick the bill to school districts, requiring them to start paying more pension costs from their own budgets. But the money needed now to stabilize the fund is enough to wipe out the $2.7-billion budget boost the governor is proposing for schools after many years of cuts.


"That is a demand that will have to be met," said David Crane, who advised Schwarzenegger on pensions and the economy. "Even if there is an increase in funding for schools, the districts may have to use that — and more — to meet that demand."


So far, lawmakers have taken no action to fill the gap. They have opted, for now, to let it grow. (The changes legislators made in public pensions last year do not fix the problem.)


They have taken the same approach with the escalating cost of retiree healthcare.


State employees on the payroll 10 years or more are guaranteed insurance coverage for life — a benefit bestowed decades ago, before the cost of medical care exploded. Now, the state is facing a bill of $62.1 billion for those employees over the next 30 years, according to state projections. Sacramento has set no money aside to cover the payments, and the tab grows each year.


Brown proposed that lawmakers confront that cost last year. Lawmakers balked and excluded his plan to limit the number of state workers eligible for retiree healthcare.


The cost of closing the gaps in California's major public pension funds would be considerable. The State Budget Crisis Task Force, a bipartisan think tank based in New York, reported in September that every Californian would have to contribute $3,635 to cover the shortfalls. Paying for retiree healthcare might add a couple of thousand dollars to that tab.


The state's borrowing from Wall Street in recent years also comes at a cost. According to the state treasurer's office, it will cost $2,559 per Californian to pay that back. Texas, by contrast, has taken on just $588 of debt per resident.


Genest said California undeniably has made major strides since the darkest budget days of recent years. "We've finally got through the worst of it," he said.


But the mess is far from cleaned up, he cautioned: "We can't jump for joy."


evan.halper@latimes.com


chris.megerian@latimes.com





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HTC seeks Myanmar edge with local font phones






YANGON (Reuters) – Peter Chou, CEO of Taiwan smartphone company HTC Corp, will on Monday launch what he hopes will be a major boost to both a backward tech sector in Myanmar, his country of birth, and to his company’s share of one of the few untapped mobile markets: a phone that locals can use out of the box.


Until now, Chou says, Myanmarese users of mobile phones and computers must install fonts in their own language, a process that is cumbersome, often invalidates the device’s warranty and has, he says, slowed innovation and the embrace of technology.






HTC has instead teamed up with a local distributor and a software developer to customize Google’s Android operating system so its devices display local fonts and sport a dedicated and, Chou says, intuitive, Myanmar language onscreen keyboard.


“You don’t have to spend two months to learn how to type it,” Chou said in an interview ahead of the launch. “You just type it. We want to give people here a computing device they don’t have to learn. They just try it, they just use it, they just get it.”


Myanmar IT experts say that while the country’s alphabet is no more complex than some other Asian scripts, a failure to agree how to apply an international standard for language symbols called Unicode to existing versions of the computer font has made it difficult to bake the language into software.


As a result, web pages and apps will often be unreadable.


BIG CHALLENGES, LITTLE PENETRATION


The issue of fonts may seem a basic one, but reflects the challenges Myanmar faces in catching up with its neighbors as it sheds decades of military control over politics and the economy. Myanmar has one of the lowest mobile penetration rates in the world, with only 3 percent of the population owning a phone in 2011, according to the World Bank. In neighboring Bangladesh, 56 percent of people have a mobile phone.


When IT enthusiasts met last year for a conference on the future of technology called Barcamp Yangon, much of the discussion revolved around such basic issues, participants said. With at least two competing types of font software available, disagreements remain.


The problem is worse on smartphones, says Soe Ngwe Ya, general manager of KMD, HTC’s distribution partner for the new phones. In order to install such fonts on mobile devices users must first “root” the phone, effectively bypassing the manufacturer’s controls on customizing the phone’s operating system. That often invalidates any warranty. “It’s a major issue,” he says.


HTC also hopes it can claw back some ground from its biggest competitor in Android phones, Samsung Electronics, which has established a first mover advantage in Myanmar.


Samsung has at least two distributors for its handsets and its advertisements are visible around the capital. Soe says KMD will act as HTC’s distributor, open a flagship store and service HTC users.


Chou, who was born in Myanmar but left to work and study in Taiwan more than 30 years ago, says that at least for now the Myanmar fonts and keyboard will only be available on HTC devices. He denied that this undermined his claims of contributing to his homeland.


“While sometimes you can be idealistic,” he said, “the first thing you have to show the people is something to get excited about.”


(Editing by Ian Geoghegan)


Wireless News Headlines – Yahoo! News





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Waltz wins supporting-actor Globe for 'Django'


BEVERLY HILLS, Calif. (AP) — Christoph Waltz has won the supporting-actor Golden Globe for his role as a genteel bounty hunter who takes on an ex-slave as apprentice in "Django Unchained."


Sunday's win was Waltz's second supporting-actor prize at the Globes, both of them coming in Quentin Tarantino films. Waltz's violent but paternal and polite "Django" character is a sharp contrast to the wickedly bloodthirsty Nazi he played in his Globe and Oscar-winning role in Tarantino's 2009 tale "Inglourious Basterds."


"Let me gasp," said Waltz, whose competition included "Django" co-star Leonardo DiCaprio. "Quentin, you know that my indebtedness to you and my gratitude knows no words."


Pop star Adele and co-writer Paul Epworth won for best song for their theme tune to the James Bond adventure "Skyfall."


"Oh, my God!" Adele gushed repeatedly, before offering gratitude to the group that presents the Globes. "I'd like to thank the Hollywood Foreign Press. I never thought I'd say that."


The prize for musical score went to Mychael Danna for the lost-at-sea tale "Life of Pi," who said he wanted to share the award with the film's director, Ang Lee.


"Ang, I will always treasure this voyage we made together," Danna said. "Thank for guiding us all to shore safely."


Show hosts Tina Fey and Amy Poehler, who co-starred in the 2008 big-screen comedy "Baby Mama," had a friendly rivalry at the Globes. Both were nominated for best actress in a TV comedy series, Fey for "30 Rock" and Poehler for "Parks and Recreation."


"Tina, I just want to say that I very much hope that I win," Poehler told Fey at the start of the show.


"Thank you. You're my nemesis. Thank you," Fey replied.


Poehler also had a quip about television vs. film at the Globes, where the small-screen category typically takes a backseat to the big-screen nominees.


"Only at the Golden Globes do the beautiful people of film rub shoulders with the rat-faced people of television," Poehler said.


Among TV recipients were Julianne Moore won a best-actress Globe for her role as Sarah Palin in "Game Change," which also was picked as best TV miniseries or movie. "Homeland" was named best TV drama series, and its star Damian Lewis received the TV drama actor Globe. Maggie Smith as supporting actress for "Downton Abbey."


"I'd like to dedicate this to my mum, looking down on me bursting with pride telling everyone around her how well her son is doing in acting," Lewis said.


An unusually chilly day in southern California left Globe guests looking glamorous but feeling frigid.


Claire Danes of "Homeland" in Versace and Zooey Deschanel of "New Girl" in a strapless Oscar de la Renta gown walked near heat lamps as the temperature stayed in the high 50s. "I'm so cold. My legs aren't cold but my arms are," Deschanel said.


The Globes are in a rare place this season, coming after the Academy Award nominations, which were announced earlier than usual and threw out some shockers that have left the Globes show a little less relevant.


Key Globe contenders lined up largely as expected, with Steven Spielberg's Civil War saga "Lincoln" leading with seven nominations and two CIA thrillers — Kathryn Bigelow's "Zero Dark Thirty" and Ben Affleck's "Argo" — also doing well.


All three films earned Globe nominations for best drama and director. Yet while "Lincoln," ''Argo" and "Zero Dark Thirty" grabbed best-picture slots at Thursday's Oscar nominations, Bigelow and Affleck were snubbed for directing honors after a season that had seen them in the running for almost every other major award.


The Globe and Oscar directing fields typically match up closely. This time, though, only Spielberg and "Life of Pi" director Lee have nominations for both. Along with Spielberg, Lee, Bigelow and Affleck, Quentin Tarantino is nominated for directing at the Globes. At the Oscars, it's Spielberg, Lee, "Silver Linings Playbook" director David O. Russell and two surprise picks: veteran Austrian filmmaker Michael Haneke for "Amour" and first-time director Benh Zeitlin for "Beasts of the Southern Wild."


That forces some top-name filmmakers to put on brave faces for the Globes. And while a Globe might be a nice consolation prize, it could be a little awkward if Affleck, Bigelow or Tarantino won Sunday and had to make a cheery acceptance speech knowing they don't have seats at the grown-ups table for the Feb. 24 Oscars.


That could happen. While "Lincoln" has the most nominations, it's a purely American story that may not have as much appeal to Globe voters — about 90 reporters belonging to the Hollywood Foreign Press Association who cover entertainment for overseas outlets.


The Bigelow and Affleck films center on Americans, too, but they are international tales — "Zero Dark Thirty" chronicling the manhunt for Osama bin Laden and "Argo" recounting the rescue of six U.S. embassy workers trapped in Iran amid the 1979 hostage crisis.


Globe voters might want to make right on a snub to Bigelow three years ago, when they gave their best-drama and directing prize to ex-husband James Cameron's sci-fi blockbuster "Avatar" over her Iraq war tale "The Hurt Locker."


Bigelow made history a month later, becoming the first woman to win the directing Oscar for "The Hurt Locker," which also won best picture.


Globe voters like to be trend-setters, but they missed the boat on that one. Might they feel enough chagrin to hand Bigelow the directing trophy this time?


Spielberg already has won two best-director Globes, so that might be a further inducement for the foreign-press members to favor someone else this time.


Their votes were locked in before the Oscar nominations came out. Globe balloting closed Wednesday, the day before the Academy of Motion Picture Arts and Sciences announced its awards lineup.


The Globe hosts had a wisecrack at Cameron's expense. Poehler noted that she had not been following the controversy over "Zero Dark Thirty," which has drawn criticism for indicating torture was pivotal in producing the tip that led to bin Laden.


But "when it comes to torture, I trust the lady who was married for three years to James Cameron," Poehler said.


The Globes feature two best-picture categories — one for drama and one for musical or comedy. Most of the Globe contenders also earned Oscar best-picture nominations, including all of the drama picks: "Argo," ''Lincoln," ''Life of Pi," ''Django Unchained" and "Zero Dark Thirty."


Yet only two of the Globe musical or comedy nominees — "Les Miserables" and "Silver Linings Playbook" — are in the running at the Oscars. That's not unusual, though, since Oscar voters tend to overlook comedy. The other Globe nominees for musical or comedy are "The Best Exotic Marigold Hotel," ''Moonrise Kingdom" and "Salmon Fishing in the Yemen."


Globe acting recipients usually are a good sneak peek for who will win at the Oscars. All four of last season's Oscar winners — Meryl Streep for "The Iron Lady," Jean Dujardin for "The Artist," Octavia Spencer for "The Help" and Christopher Plummer for "Beginners" — took home a Globe first.


Jodie Foster will receive the Globes' Cecil B. DeMille Award for lifetime achievement at the 70th Globes ceremony.


___


AP Writer Beth Harris contributed to this story.


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