Thursday, February 7, 2013

NM abortion complaint highlights privacy concerns

This still image taken from the documentary, "After Tiller," shows Dr. Shelley Sella. On Thursday, Feb. 7, 2013, the New Mexico medical board is expected to make a decision on whether to take action against Sella, who performed a late-term abortion. Sella is a former colleague of slain Kansas abortion doctor George Tiller and one of the few doctors in the country who still openly performs third-term abortions. (AP Photo/Sundance Institute)

This still image taken from the documentary, "After Tiller," shows Dr. Shelley Sella. On Thursday, Feb. 7, 2013, the New Mexico medical board is expected to make a decision on whether to take action against Sella, who performed a late-term abortion. Sella is a former colleague of slain Kansas abortion doctor George Tiller and one of the few doctors in the country who still openly performs third-term abortions. (AP Photo/Sundance Institute)

(AP) ? A woman from New York came to New Mexico to terminate her pregnancy at one of the nation's four late-term abortion clinics after she found out the fetus she had been carrying for more than eight months had severe brain abnormalities. There were complications during the abortion and the 26-year-old woman was rushed to the hospital with a ruptured uterus.

Nearly two years later, the intimate details of her medical treatment, her mental state, her religion and family status have become public as part of a state medical board probe that was initiated not by the patient, but by anti-abortion activists with Operation Rescue who aggressively monitor and file complaints based on 911 calls made from abortion clinics.

On Thursday, the New Mexico Medical Board is expected to decide whether to revoke the license of or otherwise discipline Dr. Shelley Sella, a former colleague of slain Kansas abortion doctor George Tiller and one of the few doctors in the country who still openly performs third-term abortions. It's a case that highlights Operation Rescue's aggressive attempts to halt abortions and raises questions about whether the tactics are an invasion of privacy when patient records become public.

The case also highlights the sensitivity surrounding late-term abortions, which several states have made illegal in recent years. Supporters of abortion rights say the procedures are rare and used only in cases where the health of the mother or child is in danger. Abortion opponents say they are a danger to mothers and painful for the unborn baby. The procedure involves injecting the fetus with a drug to stop its heartbeat and administering drugs over the next three to four days to prepare the cervix and induce labor.

Sella gave the woman drugs commonly used in late-term abortions, drugs that, according to transcripts in the case, are known to potentially cause contractions strong enough to cause uterine ruptures in women who previously have delivered a baby through cesarean section, as this woman had.

Records show the patient, who returned to New York three days after the rupture was repaired and was not involved in the complaint or hearing, was warned of the risks. But board prosecutor Daniel Rubin argued that proper standards of care were not followed. At issue is whether abortions providers should be held to the same standards of care that apply to live births, such as whether such a risky procedure so late in a pregnancy should have been done in a hospital rather than a clinic.

Anti-abortion activists are aggressively seeking that determination.

Operation Rescue's Cheryl Sullenger, who filed the complaint against Sella, says winning such a determination "will dramatically impact the ability of these abortionists to do these dangerous procedures on women."

But Vicki Saporta, president and CEO of the National Abortion Federation, downplayed the potential outcome of the case, saying it was part of the group's ongoing campaign against abortion doctors.

"This is a medical board," she said. "This is certainly not a standards-setting body for the rest of the United States. So while Operation Rescue would love for their complaints to have national scope, they really don't, and they haven't had much success in having medical boards agree with their complaints."

Another question focuses on patient privacy. The name of the woman who had the abortion has not been released, but full transcripts of three days of hearings into the details of her case have been made public.

Marc Rotenberg, president and executive director of the Electronic Privacy Information Center in Washington, said the case "underscores the sensitivity of medical records and the need to keep them private."

He pointed to a 2004 decision by the 7th U.S. Circuit Court of Appeals that blocked an attempt by the Department of Justice under Attorney General John Ashcroft to get redacted abortion records from a Chicago hospital for a trial on the constitutionality of late-term abortions. The opinion said that opening even redacted medical records was a violation of privacy and that the details could lead to a patient being identified and harassed.

Lynn Hart, executive director of the New Mexico Medical Board, said the panel has authority to open an investigation into any medical case in the state, regardless of who files the complaint. She said it has the subpoena authority to obtain patient records with or without a patient's consent, and it is also exempt from federal medical privacy laws.

Attorneys for Sella successfully argued to close the hearing to media and the public, but the transcripts were made public in advance of the board vote on whether to discipline Sella.

Sullenger, who lives in Wichita, Kan., says the group currently has some 100 complaints pending with medical boards around the country based on information it gets from things like 911 calls for ambulance runs to abortion clinics. Although there are only four clinics in the country that do late-term abortions, according the transcripts presented in the New Mexico case, she said that their efforts are focused on all abortion clinics, not just those like Southwestern Women's Options in Albuquerque that do the procedures on women in their final trimester.

It's a tactic the group has employed for years with varying results. In 2005, for instance, a Kansas judge dismissed a public records lawsuit from Sullenger after she was denied copies of 911 calls involving Tiller's clinic. But the group was successful, through similar complaints, in winning the revocation of the medical license of Dr. Ann Kristin Neuhaus, who provided second opinions for Tiller. And Operation Rescue believes it would have ultimately won the revocation of Tiller's Kansas license if he had not been killed by an anti-abortion zealot. Sella's license in Kansas was cancelled at her request after she moved to New Mexico.

Privacy of patients was long an issue surrounding Tiller's Kansas clinic. Operation Rescue used to post pictures of pregnant women, with their faces blurred, going into Tiller's clinic. And a former state attorney general who tried to prosecute Tiller fought to get redacted medical records of Tiller's clinic's patients, then crosschecked information about their hometowns and dates of procedures with records from the hotel where many of Tiller's patients stayed to learn their identities.

Sullenger said her group had no contact with the patient in the Albuquerque case, and has no interest in revealing patients' identities.

"We are actually about protecting them," she said. "We believe that if these abortionists did not employ these dangerous practices we would not have these problems."

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/386c25518f464186bf7a2ac026580ce7/Article_2013-02-07-Abortion%20Complaint/id-2006ab431a5d4bcea3f9d146803aa2a6

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Micex IPO is an FX plan | beyondbrics - Blogs - Financial Times

By Ben Aris of bne

The management of Russia?s MICEX exchange arrived in London on Tuesday on a roadshow ahead of its IPO on Feburary 15. What they are selling is not just a stock exchange but a diversified business that is in many ways unique.

Widely seen as Russia?s leading stock exchange, MICEX is actually a unusually diversified business for an exchange, which means it has managed to earn steadily increasing profits that have been largely unaffected by the 2008 crisis, let alone the notorious volatility that plagues portfolio investors into Russian stocks.

Trading stocks and bonds made up only 34 per cent of MICEX?s operating income in the first nine months of 2012. The biggest single business on the exchange is foreign currency trading (FX) that accounts for 80 per cent of the aggregated trading volumes by value and, at just under a third, was the single biggest contributor to the operating income in same period.

It?s all in the name: MICEX stands for ?Moscow Interbank Currency Exchange?. The exchange was set up in 1992 as the money market platform for the banking sector and also for Central Bank of Russia (CBR) interventions on the currency market, used to control the exchange rate and provide support to the banking sector in times of crisis. Neither of these jobs are typical for an exchange and 20 years later its FX business still provides MICEX with a steady stream of income.

It only took on trading stocks in the second half of the 1990s and came into its own when the government ruled domestic Gazprom shares could only be traded on MICEX after it removed the so-called ring fence ? special rules that prevented foreigners buying locally listed shares in what at the time was Russia?s most valuable company.

In all the exchange trades five asset classes: in addition to stocks, bonds and currency it is also a platform for repo deals with fixed income instruments and also the burgeoning derivatives business.

And as well as handling issuance and trading, the exchange also unusually offers all the post-trade services of settlement, clearing and depository services as a single unified operation ? more steady revenues for the exchange irrespective of what else is happening in the country, which together make up 16 per cent of its total income.

Source: Micex

The advantage of having such a diversified business is the exchange?s income has risen pretty consistently over the last six years, despite the huge swings on its on trading floor, even during the worst of the 2008 meltdown, when the value of stocks traded on the exchange plummeted by about 75 per cent.

?MICEX keeps making money no matter what is happening on the exchange itself,? says one banker close to the business who didn?t want to be named. ?When share prices tank then derivatives spike. And the volumes of FX trading continue to grow no matter what else is going on in the country.?

Source: Micex

FX trading remains the exchange?s cash cow with volumes rising by a consolidated annual rate of growth of 24 per cent since 2009 to top in Rb295.5tn in 2012. And currency-trading volumes will only increase once restrictions on foreign investors buying bonds directly on the MICEX floor from their trading desks around the world are removed this month.

However, the fast growing business line is derivatives trading. Following the 1998 financial crisis the Central Bank ruled that derivatives were regulated by the same rules as casinos, as Russian banks attempted to wiggle out of some $40bn worth of forward contracts obligations signed with foreign investors to protect themselves from the very devaluation that actually happened.

Things have got better since then. A new law on investment was passed in 2002 that created the foundation of a real derivatives market and another covering futures trading was introduced in 2006. (All the casinos in Moscow have also since been closed and banished to remote regions in Russia?s interior.)

The derivatives business is booming. Because of a lack of domestic institutional investors, investors in Russian stocks have become increasingly keen to hedge against perennial volatility and part of the goal of merging MICEX with the RTS in 2012 was to further deepen the derivatives business, which now makes 18 per cent of the exchange?s income.

The exchange still quotes both the RTS and MICEX indices, which are now identical in terms of the basket of stocks and their weighting, except the RTS is denominated in dollars and used as a basis of hedging while the MICEX index is denominated in rubles. Last year, 43 per cent of all the derivate contracts written were against the RTS index value and worth a total of $3.8bn, making this derivative amongst the top six biggest derivative products in the world.

All in all MICEX reported revenues of Rb15.9bn ($530m) for the first nine months of 2012, a 36.7 per cent increase on the same period a year earlier, with net profits up by just under a quarter to Rb6.4bn ($213m). Going forward the exchange is travelling through Europe, America and the Russian regions (as this will be a Russian IPO on a Russian exchange after all) telling investors that the future looks even brighter.

The Kremlin is pushing to create an international financial centre in Moscow, but the ultimate goal is to win back Russia?s equity business from London, the preferred destination for most of Russia?s biggest IPOs.

Russian companies already account for 18 per cent of the London Stock Exchange?s total capitalization, according to President Vladimir Putin, but the president said last month that from this year he wants all the IPOs planned as part of the privatization drive to be held on the Moscow, not London, exchange. A few days later Andrei Kostin, CEO of VTB Bank, dutifully announced that VTB would sell its next tranche of a reported 10 per cent on MICEX, not the LSE. More will follow.

It will take a long time before MICEX can seriously threaten the LSE appeal for big Russian companies wanting to float. But the listing of MICEX and the new drive to promote domestic listings is another step along the road to creating a fully-fledged Russian capital market that can serve both pensioners and Russian companies looking to raise capital. It should also provide MICEX?S shareholders some nice and steady dividend payments in the process.

Related reading:
Putin: time to get serious about the stock market and privatisation, beyondbrics
Moscow bourse: no place like home, beyondbrics
Investors rush for Sberbank bond, beyondbrics
Moscow exchange presses ahead with IPO, FT

Source: http://blogs.ft.com/beyond-brics/2013/02/05/micex-ipo-is-an-fx-plan/

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Cute Baby Shower Ideas

Good morning!

I just ordered the invitations for my sister?s baby shower!

baby_shower_invite_

Aren?t they cute??I bought them from TinyPrints.com, which has tons and tons of mostly adorable baby shower invites. There?s also a few, um, interesting?ones.

On Sunday afternoon, my mom and my sister came over for lunch. I made chili and corn bread muffins. Chili in a crockpot = super easy and super tasty!

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After lunch, I gave my sister a few presents for my new nephew, including a Batman shirt and some teeny-tiny socks with monkeys and dogs on them. Buying baby clothes is so fun.

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Murphy?also bought some poop bags for the new baby.

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Don?t they look just like dog poop bags? Haha!

My mom had some fancy organic dog bones to give to Murphy, so we had a little fun with them him.

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Eventually, my mom said ?okay? and Murphy ate the piece of bone off of her knee. Haha!

A little while later, I made us some coffee and then we all relaxed on the couch. Murphy was exhausted.

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Murphy?s life = so hard.

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Hanging out and chatting eventually got us on the topic of my sister?s baby shower and soon we were in full planning mode. We decided on a date, place, and time, tentative menu, invitations, and a possible theme/color scheme. There?s still a lot to do, but we definitely made some progress.

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CNC Blog Birthday Giveaway

Thanks to everyone who entered my 5-year blog birthday giveaway! Here?s your winner:

Christine

I love your recipes! So simple and so good. I make your sweet breakfast scramble, protein pancakes and paleo morning glory muffins all the time! Congrats on 5 years Tina!

Congrats, Christine! Please email me at tina@carrotsncake.com with your full name and mailing address.

Question of the Day

What?s the best/cutest idea you?ve ever seen at a baby shower?

Here are some of the cute ideas I?ve found on Pinterest!

P.S. BIC Bands is offering?free shipping (first class) with the code CNCFeb!

Source: http://carrotsncake.com/2013/02/cute-baby-shower-ideas.html

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Wednesday, February 6, 2013

New keyboard BlackBerry in US could take months

Thorsten Heins, CEO of Research in Motion, introduces the BlackBerry 10, Wednesday, Jan. 30, 2013 in New York. The maker of the BlackBerry smartphone is promising a speedy browser, a superb typing experience and the ability to keep work and personal identities separate on the same phone, the fruit of a crucial, long-overdue makeover for the Canadian company. (AP Photo/Mark Lennihan)

Thorsten Heins, CEO of Research in Motion, introduces the BlackBerry 10, Wednesday, Jan. 30, 2013 in New York. The maker of the BlackBerry smartphone is promising a speedy browser, a superb typing experience and the ability to keep work and personal identities separate on the same phone, the fruit of a crucial, long-overdue makeover for the Canadian company. (AP Photo/Mark Lennihan)

Thorsten Heins, right, CEO of Research in Motion, introduces singer Alicia Keys as the Global Creative director of Blackberry, Wednesday, Jan. 30, 2013 in New York. The maker of the BlackBerry smartphone is promising a speedy browser, a superb typing experience and the ability to keep work and personal identities separate on the same phone, the fruit of a crucial, long-overdue makeover for the Canadian company. (AP Photo/Mark Lennihan)

BlackBerry's employees prepare the launch event for the company's new smartphones in London, Wednesday, Jan. 30, 2013. The first in a new generation of long-awaited BlackBerrys will go on sale in the next week in Canada and the United Kingdom, but won't be released in the U.S. until March.(AP Photo/Lefteris Pitarakis)

The BlackBerry 10 is displayed, Wednesday, Jan. 30, 2013 in New York. The maker of the BlackBerry smartphone is promising a speedy browser, a superb typing experience and the ability to keep work and personal identities separate on the same phone, the fruit of a crucial, long-overdue makeover for the Canadian company. (AP Photo/Mark Lennihan)

(AP) ? A modern BlackBerry with a physical keyboard might not arrive in the U.S. until May or June, a month or two behind other parts of the world, the chief executive of the smartphone maker suggested in an interview.

Although Research in Motion Ltd. CEO Thorsten Heins said the exact release date will depend on each wireless provider, he said the physical keyboard version, the BlackBerry Q10, will likely come out eight to 10 weeks after a carrier releases a model with only a touch screen, the BlackBerry Z10. The Z10 is expected in the U.S. in mid-March, so eight to 10 weeks brings the U.S. date for the Q10 to mid-May to early June.

"We're trying to get it as close as we can," Heins said in an interview this week with The Associated Press.

Both models are part of RIM's attempt at a comeback after the pioneering brand lost its cachet not long after Apple's 2007 release of the iPhone, which reset expectations for what a smartphone should do.

RIM promised a new system called BlackBerry 10 to catch up, using technology it got through its 2010 purchase of QNX Software Systems. But it has taken more than two years to unveil new phones that are redesigned for the new multimedia, Internet browsing and apps experience that customers are now demanding.

RIM said last week that the Q10 should be available through some carriers around the world in April, but it wouldn't say at the time whether any were in the U.S.

In the interview, Heins said it was up to the carriers to do the necessary testing and to decide whether they could shorten the process. He said eight to 10 weeks after the Z10 launch was "a good range" of what to expect.

Such a delay would further complicate RIM's efforts to hang on to customers tempted by Apple's trend-setting iPhone and a range of devices running Google's Android operating system. Even as the BlackBerry has fallen behind rivals in recent years, many BlackBerry users have stayed loyal so far specifically because they prefer a physical keyboard over the touch screen found on the iPhone and most Android devices. But the temptations to switch grow with each additional delay, despite favorable reviews for the new system.

Heins told the AP that he's disappointed the touch-only BlackBerry won't be released in the United States until mid-March, but he said the U.S. and its phone carriers have a rigid testing system.

"We need to respect that. Am I a bit disappointed? Yeah, I would be lying saying no. But it is what it is, and we're working with all our carrier partners to speed it up as much as we can," Heins said in Monday's interview at the Ritz Carlton in Toronto, ahead of Tuesday's debut of the touch-only model in Canada, RIM's home.

RIM unveiled new BlackBerrys last week after excruciating delays allowed Apple Inc., Samsung Electronics Co. and others to build commanding leads in the industry. The stock fell 12 percent last Wednesday after the kickoff event. There's concern the phone isn't coming out sooner than the March date for the U.S. announced last week.

Black and white versions of the touch-screen Z10 were released in the U.K. last Thursday. Heins said early data suggest that a substantial number of U.K. users are moving from other systems to BlackBerry, even though RIM initially targeted longtime BlackBerry users.

"It's beyond expectations," Heins said in the interview. "White is sold out already. The black is hard to stock up again. It's very encouraging. I won't share the number because I need to verify it, but we are getting a substantial number of users moving from other platforms to BlackBerry."

In Canada, telecom provider Bell said advance orders for the Z10 exceeded that of any previous BlackBerry model. "We're seeing intense interest today," Bell spokesman Mark Langton said Tuesday. "Sales are quite robust."

RIM's stock increased nearly 7 percent to close Tuesday at $16.02 after gaining 15 percent Monday following initial reports of strong U.K. sales and an upgrade of the stock by an analyst.

Heins said the company would have to regain market share in the U.S. for BlackBerry to be successful. The U.S. has been one market in which RIM has been particularly hurting, even as the company is doing well in many places overseas. According to research firm IDC, shipments of BlackBerry phones plummeted from 46 percent of the U.S. market in 2008 to 2 percent in 2012. The iPhone and Android now dominate.

Heins, who one year ago replaced longtime executives who had presided over BlackBerry's fall, said he's confident BlackBerry can become a third choice behind the iPhone and Android.

"We need to win back market share to be relevant," Heins said. "We have to be aggressive in the U.S. market."

To send a message that the BlackBerry is back, RIM ran an ad during Sunday's Super Bowl game in the U.S. suggesting that there's so much the new phones could do, it'd be easier to list the outlandish things that they can't. The Canadian company is also in the process of changing its name to BlackBerry to emphasize that brand.

Some analysts have questioned RIM's decision to release a touch-only version first considering that its most loyal users love the physical keyboard for typing.

Heins said the full touch screen was more complicated, so the company needed to focus on releasing that first. He has also acknowledged that RIM failed to quickly adapt to the emerging "bring your own device" trend, in which employees bring their personal touch-screen iPhones or Android devices to work instead of relying on BlackBerrys issued by their employers

Heins said the company wants to participate in that trend by releasing a touch version first.

Heins also addressed possible interest other companies might have in RIM should BlackBerry 10 prove successful and whether the Canadian government might block a foreign takeover.

"The recognition for BlackBerry 10 and what we built is pretty high. We got good reviews," he said. "That moves you into the middle of the radar screen so I expect some activity around it but we'll look at it one by one. We'll assess it and we'll make decisions with the board on what make sense."

Heins recently chatted with top Canadian government officials, including the industry minister, at the World Economic Forum in Davos.

"These guys are reasonable, rational people. At the end of the day, it's about employment. It's about economic health. It's about Canada playing a major role," Heins said. "If the right logic and rational applies, I don't think they will just block it for their own sake. They could have done it with Nortel and the patents."

Several months ago, RIM's decline evoked memories of Nortel, a former Canadian tech giant, which declared bankruptcy in 2009 and was picked over for its patents. For RIM, the lengthy delays releasing the new BlackBerry system helped wipe out more than $70 billion in shareholder wealth and 5,000 jobs.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-02-05-TEC--BlackBerry%20CEO/id-489fd3a8e94f415782b1b021de61ecec

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Ex-Lion Young says he's better than Johnson

FlaccoAP

The Super Bowl victory tour has taken Ravens quarterback Joe Flacco from New Orleans to Orlando to New Jersey to New York City, where he finished a whirlwind day with an appearance on The Late Show with David Letterman (which tapes much earlier than 11:30 p.m. ET).

And while Flacco is far closer to Eli Manning than Peyton on the natural charisma spectrum, Flacco showed enough personality to allow him to start cashing in off the field ? but not to the extent Flacco will cash in on the field.? More importantly, Flacco continues to prove that, contrary to his father?s opinions, Flacco isn?t dull.

For example, Letterman at one point asked, ?Tell me about this guy Ray Lewis.? What?s his deal??

?Well, half the time I don?t know,? Flacco said, laughing.? ?But come Sunday, he has something special.?

Is that something special ?deer hoof spray,? as Letterman described it?

?You?d have to ask him about that one, man,? Flacco said.

On slightly meatier subjects, Flacco said he?ll have no concerns having his infant son (and any others he may have) play football.

?No doubt about it,? Flacco said.? ?I don?t know if he?ll ever be able to play at the level that we play at.? But football?s a great sport, and it?s the reason why I?m able to live the life I live today and the reason he?s gonna grow up the way he grows up.?

Flacco said the he never has had a concussion; ?I haven?t been knocked out, but I?ve been knocked down,? Flacco said.

And brainpower apparently isn?t as important as fans would think.

?An NFL playbook is much easier than people make it out to be,? Flacco said.

?You?re hurting yourself a little in that contract negotiation,? Letterman observed.

It was a funny line, but the proverbial hay is already in the barn.? The only question left is how much Flacco will get paid for it ? and whether he?ll have to withhold services in order to get what he wants.

Until then, maybe Flacco can host Saturday Night Live.

[Editor's note:? Since there was no studio photo of Flacco with Letterman, we opted for a picture of Flacco rubbing the head of Letterman employee "Biff" Henderson.? And, yes, that's Rich Eisen in the background, possibly remarking to Flacco, "You're better than that."]

Source: http://profootballtalk.nbcsports.com/2013/02/04/titus-young-recently-boasted-hes-better-than-megatron/related/

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Leahy Embassy Security Bill Passes Senate

WASHINGTON, Feb. 4, 2013 /PRNewswire-USNewswire/ -- The U.S. Senate Monday night approved legislation authored by Senator Patrick Leahy (D-Vt.) to transfer surplus funds for Iraq to U.S. embassy security needs in several locations that have been identified in the post-Benghazi review.?

Leahy's bipartisan bill would authorize the State Department to transfer to embassy security purposes up to $1.1 billion in previously appropriated funds that are no longer needed in Iraq because of reduced operations there.? Leahy chairs the Appropriations Committee's Subcommittee on State Department and Foreign Operations. ?Cosponsors of the bill include Appropriations Committee Chairwoman Barbara Mikulski (D-Md.); Senator Lindsey Graham (R-S.C.), ranking member of the State and Foreign Operations Subcommittee; Senator Robert Menendez (D-N.J.), chairman of the Foreign Relations Committee; Senator Jeanne Shaheen (D-N.H.); Senator Bob Casey (D-Pa.); and Senator Sheldon Whitehouse (D-R.I.).?

The bill is based on the Leahy Amendment that the Senate approved in December during debate on the Supplemental Appropriations Bill for Sandy and other purposes. ?House Republican leaders dropped the Leahy provision in the House's version of the bill.

Leahy said, "Hardening our embassy security is something that everyone agrees is needed.? We all want to do what we can to prevent another tragedy like what occurred in Benghazi.? The State Department has done a review, and these funds will be used to expedite construction of Marine security guard posts at overseas facilities, and to build secure embassies."

Leahy continued, "There already has been unnecessary delay in Congress that has prevented getting this work underway.? I hope the House will give this serious and prompt attention so these security improvements can begin."

SOURCE Office of U.S. Senator Patrick Leahy

Source: http://news.yahoo.com/leahy-embassy-security-bill-passes-senate-012100430.html

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UK declares new powers to break up banks

FILE- British Finance Minister George Osborne speaks during a meeting of EU finance ministers in Luxembourg in this file photo daetd Friday, June 22, 2012. Britain?s Chancellor of the Exchequer treasury chief Osborne warned the Britain's banks Monday Feb. 4, 2013, that they could be forcibly split into smaller pieces if they fail to properly insulate their public retail operations from their riskier investment arms, and that the taxpayers shouldn?t be expected to bail out the banks again. (AP Photo/Virginia Mayo, FILE)

FILE- British Finance Minister George Osborne speaks during a meeting of EU finance ministers in Luxembourg in this file photo daetd Friday, June 22, 2012. Britain?s Chancellor of the Exchequer treasury chief Osborne warned the Britain's banks Monday Feb. 4, 2013, that they could be forcibly split into smaller pieces if they fail to properly insulate their public retail operations from their riskier investment arms, and that the taxpayers shouldn?t be expected to bail out the banks again. (AP Photo/Virginia Mayo, FILE)

(AP) ? Britain's treasury chief warned the country's banks on Monday that they face being broken up if they fail to protect their retail operations from their riskier investment arms.

George Osborne told executives from JPMorgan that the days of banks being "too big to fail" are over in Britain, and that taxpayers shouldn't be expected to bail out the lenders. The next time a crisis hits, he wants more options to act.

"My message to the banks is clear: if a bank flouts the rules, the regulator and the Treasury will have the power to break it up altogether ? full separation, not just a ring fence," he said. "We're not going to repeat the mistakes of the past."

The new measure gives regulators the power to force a complete separation of a lender's retail business from its investment banking. Risky investments undermined banks' stability in 2008, leading to taxpayer bailouts of two big U.K. banks.

Osborne's remarks follow recommendations from the Parliamentary Commission on Banking Standards that proposals for a "ring-fence" to protect retail banks needed to be "electrified" to discourage banks from probing for loopholes. Osborne had been reluctant to accept the idea, but faced pressure stemming from public outrage over the behavior of Britain's banks.

Britain's banking industry, which accounts for 4.6 percent of annual economic activity, has been caught up in a series of scandals since the financial crisis in 2008. Several leading executives at Barclays have been forced to step down after the bank was hit with 290 million pound fine for rigging Libor, the rate at which banks lend to each other. Royal Bank of Scotland also faces a 500 million pound fine for manipulating the key interest rate. HSBC and Standard Chartered have also fallen foul with regulators over the way they do business overseas.

The banking standards commission said that the scandal of manipulating key lending indexes had "exposed a culture of culpable greed far removed from the interests of bank customers."

Bankers fear it will hurt the competitiveness of British banks and do little to make them more stable. The British Bankers' Association said the government's decision was "regrettable," and that it would create uncertainty for investors.

"No other major economy is considering moving away from the universal model of banking because it undermines banks' ability to provide all the services businesses need," the association said in a statement. "Above all, what banks and business need is regulatory certainty so that banks can get on with what they want to do, which is help the economy grow."

Other countries and regulators are also grappling with how to prevent future bailouts. In the United States, legislation known as the Dodd-Frank act seeks to bar banks them from engaging in risky trading on their own account. The European Union is also examining how banks might separate their riskier investment banking operations from the rest of their business.

Besides that, new international rules ? known as Basel III ? will require banks to hold more financial reserves to protect against possible losses. The requirements will be phased in over the coming years, but banks have said they are too demanding.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-02-04-EU-Britain-Banks/id-be278245bc46406aa7d79fc84025fa9c

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