Expectations low for White House 'fiscal cliff' meeting

Roberta Rampton and Mark Felsenthal




Reuters

4:02 p.m. CST, December 28, 2012

WASHINGTON (Reuters) - President Barack Obama met congressional leaders on Friday but there was little sign of progress in resolving their differences over the U.S. federal budget and striking a "fiscal cliff" deal before January 1.

Obama was not planning to make a new offer, a source familiar with the meeting said as the hour-long talks got under way. None of the participants made statements to the media immediately after the summit at the White House ended.

U.S. stocks fell for a fifth straight day, dropping 1 percent as the federal government edged closer to the "fiscal cliff" with no solution in sight.

Members of Congress are increasingly looking at the period straight after the December 31 deadline to come up with a retroactive fix to avoid steep tax increases and sharp spending cuts that economists have said could plunge the country into another recession.

With taxes on all Americans set to rise when rates established under former President George W. Bush expire on New Year's Eve, lawmakers would be able to come back in January and take a more politically palatable vote to cut some of the tax rates.

The president met Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, House Speaker John Boehner and House Minority Leader Nancy Pelosi - the first time the group has met together since November.

If congressional leaders objected to his plan, Obama was planning to ask them for a viable counterproposal, the source said. If lawmakers had no alternative approach, Obama was seeking an up-or-down vote in Congress on his plan, the source said.

(Additional reporting by Richard Cowan, Thomas Ferraro and Rachelle Younglai; Writing by Alistair Bell; Editing by Todd Eastham)

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Matt Damon tackles “fracking” issue in the “Promised Land”

LOS ANGELES (Reuters) – The hot-button topic of “fracking” has finally made its way to Hollywood in the new movie “Promised Land,” out in U.S. theaters on Friday, with actors Matt Damon and John Krasinski teaming up to further the debate on the energy drilling technique.

The film explores the social impact of hydraulic fracturing drilling technique, or “fracking,” which has sparked nation-wide environmental and political battles over its impact on drinking water, U.S. energy use, seismic activity and other areas.

“Promised Land” will see Damon, 42, reunite with director Gus Van Sant for the third time, following their success with 1997 film “Good Will Hunting and 2002′s “Gerry.”

In their latest film, Damon plays a corporate salesman who goes to a rural U.S. town to buy or lease land on behalf of a gas company looking to drill for oil. He soon faces opposition from a slick environmentalist, played by Krasinski.

In real life, Damon hasn’t shied away from getting involved in political and social issues, working with charities and organizations to eradicate AIDS in developing countries, bringing attention to atrocities in Sudan’s Darfur region, providing safe drinking water and stopping trees from being chopped and used for junk mail.

Yet “Promised Land,” which Damon also co-wrote and produced, doesn’t take a noticeable stance on “fracking.” The actor would not publicly state his own views, telling Reuters that he didn’t think his opinion had “any bearing” on the film.

“The point is that the movie should start a conversation. It’s certainly not a pro-fracking movie, but we didn’t want to tell people what to think,” Damon said.

The actor said he and Krasinski never set out to make a socially conscious film, and “fracking” was added in later, as a backdrop to the story.

“It wasn’t that we said we wanted to make a movie about ‘fracking’ as much as we wanted to make a movie about American identity, about real people. We wanted to make a movie about the country today, where we came from, where we are and where we are headed,” Damon said.

“‘Fracking’ was perfect because the stakes are so incredibly high and people are so divided. It asks all the questions about short-term thinking versus long-term thinking.”

Hydraulic fracturing entails pumping water laced with chemicals and sand at high pressure into shale rock formations to break them up and unleash hydrocarbons. Critics worry that “fracking” fluids or hydrocarbons can still leak into water tables from wells, or above ground.

FROM ‘ADJUSTMENT BUREAU’ TO ‘PROMISED LAND’

At first glance, the pairing of Damon with Krasinski may not come across as the perfect fit, as Damon has primarily been associated with longtime friend and collaborator Ben Affleck, both of whom won Oscars for writing “Good Will Hunting.”

Damon later become a colleague and friend to a number of key Hollywood players, including George Clooney and Brad Pitt, with whom he co-starred in the “Ocean’s Eleven” franchise.

Krasinski, 33, is best known for playing sardonic Jim Halpert on NBC’s long-running television series, “The Office,” and has had occasional supporting roles in films such as 2008′s “Leatherheads.”

Damon and Krasinski came together after meeting through Krasinski’s wife, Emily Blunt, who co-starred with Damon in the 2011 film “The Adjustment Bureau.” Damon said he and his wife started double-dating with Krasinski and Blunt, through which their collaboration on “Promised Land” came about.

The duo’s busy work schedules forced them to moonlight on weekends to make “Promised Land.”

“John showed up at my house every Saturday at breakfast and we would write all day until dinner,” Damon said. “Then we’d do it again on Sunday. I have four kids so he would come to me.”

But Damon’s determination to make the film his feature directorial debut fell through when his acting schedule changed, making it impossible to direct “Promised Land,” so he turned to Van Sant.

“My first inclination was to send the script to somebody I’d worked with before,” he said. “Gus seemed like the most obvious choice and I realized later that I’d never written anything that anyone else had directed, except Gus. I have a real comfort level with him.”

Damon said he has not given up on his dream of directing movies and has his eye on a project at movie studio Warner Bros., which has a deal with Damon and Affleck’s joint production company, Pearl Street Films.

With Affleck’s third directorial effort “Argo” becoming an awards contender, Damon joked that the film’s success can only be a good thing for his own budding directing career.

“I now happen to be partnered with the hottest director in Hollywood!” he said, laughing.

(Reporting By Zorianna Kit, Editing by Piya Sinha-Roy and Paul Simao)

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Surgery Returns to NYU Langone Medical Center

Chang W. Lee/The New York Times

Senator Charles E. Schumer spoke at a news conference Thursday about the reopening of NYU Langone Medical Center.

NYU Langone Medical Center opened its doors to surgical patients on Thursday, almost two months after Hurricane Sandy overflowed the banks of the East River and forced the evacuation of hundreds of patients.

While the medical center had been treating many outpatients, it had farmed out surgery to other hospitals, which created scheduling problems that forced many patients to have their operations on nights and weekends, when staffing is traditionally low. Some patients and doctors had to postpone not just elective but also necessary operations for lack of space at other hospitals.

The medical center’s Tisch Hospital, its major hospital for inpatient services, between 30th and 34th Streets on First Avenue, had been closed since the hurricane knocked out power and forced the evacuation of more than 300 patients, some on sleds brought down darkened flights of stairs.

“I think it’s a little bit of a miracle on 34th Street that this happened so quickly,” Senator Charles E. Schumer of New York said Thursday.

Mr. Schumer credited the medical center’s leadership and esprit de corps, and also a tour of the damaged hospital on Nov. 9 by the administrator of the Federal Emergency Management Agency, W. Craig Fugate, whom he and others escorted through watery basement hallways.

“Every time I talk to Fugate there are a lot of questions, but one is, ‘How are you doing at NYU?’ ” the senator said.

The reopening of Tisch to surgery patients and associated services, like intensive care, some types of radiology and recovery room anesthesia, was part of a phased restoration that will continue. Besides providing an essential service, surgery is among the more lucrative of hospital services.

The hospital’s emergency department is expected to delay its reopening for about 11 months, in part to accommodate an expansion in capacity to 65,000 patient visits a year, from 43,000, said Dr. Andrew W. Brotman, its senior vice president and vice dean for clinical affairs and strategy.

In the meantime, NYU Langone is setting up an urgent care center with 31 bays and an observation unit, which will be able to treat some emergency patients. It will initially not accept ambulances, but might be able to later, Dr. Brotman said. Nearby Bellevue Hospital Center, which was also evacuated, opened its emergency department to noncritical injuries on Monday.

Labor and delivery, the cancer floor, epilepsy treatment and pediatrics and neurology beyond surgery are expected to open in mid-January, Langone officials said. While some radiology equipment, which was in the basement, has been restored, other equipment — including a Gamma Knife, a device using radiation to treat brain tumors — is not back.

The flooded basement is still being worked on, and electrical gear has temporarily been moved upstairs. Mr. Schumer, a Democrat, said that a $60 billion bill to pay for hurricane losses and recovery in New York and New Jersey was nearing a vote, and that he was optimistic it would pass in the Senate with bipartisan support. But the measure’s fate in the Republican-controlled House is far less certain.

The bill includes $1.2 billion for damage and lost revenue at NYU Langone, including some money from the National Institutes of Health to restore research projects. It would also cover Long Beach Medical Center in Nassau County, Bellevue, Coney Island Hospital and the Veterans Affairs hospital in Manhattan.

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Wall Street ends sour week with 5th straight decline

NEW YORK (Reuters) - Stocks fell for a fifth straight day on Friday, dropping 1 percent and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight.

President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans. The Dow closed below 13,000 for the first time since December 4.

"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington."

In a sign of investor anxiety, the CBOE Volatility Index , known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time.

The Dow Jones industrial average dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index fell 25.59 points, or 0.86 percent, to end at 2,960.31.

For the week, the Dow fell 1.9 percent. The S&P 500 also lost 1.9 percent for the week, marking its worst weekly performance since mid-November. The Nasdaq finished the week down 2 percent. In contrast, the VIX jumped 22 percent for the week.

Pessimism continued after the market closed, with stock futures indicating even steeper losses. S&P 500 futures dropped 26.7 points, or 1.9 percent, eclipsing the decline seen in the regular session.

All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth.

An S&P energy sector index slid 1.8 percent, with Exxon Mobil down 2 percent at $85.10, and Chevron Corp off 1.9 percent at $106.45. The S&P material sector index fell 1.3 percent, with U.S. Steel Corp down 2.6 percent at $23.03.

Decliners outnumbered advancers by a ratio of slightly more than 2 to 1 on the New York Stock Exchange, while on the Nasdaq, two stocks fell for every one that rose.

"We've been whipsawing around on low volume and rumors that come out on the cliff," said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia, who helps oversee $7 billion in assets.

With time running short, lawmakers may opt to allow the higher taxes and across-the-board federal spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year. Standard & Poor's said an impasse on the cliff wouldn't affect the sovereign credit rating of the United States.

"We're not as concerned with January 1 as the market seems to be," said Richard Weiss, senior money manager at American Century Investments, in Mountain View, California. "Things will be resolved, just maybe not on a good timetable, and any deal can easily be retroactive."

Trading volume was light throughout the holiday-shortened week, with just 4.46 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Friday, below the daily average so far this year of about 6.48 billion shares. On Monday, the U.S. stock market closed early for Christmas Eve, and the market was shut on Tuesday for Christmas. Many senior traders were absent this week for the holidays.

Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.

Positive economic data failed to alter the market's mood.

The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.

"Economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity."

Barnes & Noble Inc rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.

Shares of magicJack VocalTec Ltd jumped 10.3 percent to $17.95 after the company gave a strong fourth-quarter outlook and named Gerald Vento president and chief executive, effective January 1.

The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc surged 13.8 percent to $2.47 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)

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Snow buries parts of Northeast, flights canceled

BUFFALO, New York (Reuters) - A powerful winter storm pushed through the U.S. Northeast on Thursday, forcing the cancellation of hundreds of airline flights while bringing some holiday cheer to families hoping for snow and lifting spirits at ski resorts in the region.

The storm dumped a foot of snow on parts of the United States with the heaviest snow falling across northern New York and New England, the National Weather Service reported.

"It feels lovely to have wonderful snow for the kids to play in, and I think it's the kind of snow that's good for making forts and snowmen," said Katryna Nields, a musician in Conway, Massachusetts, who was outside her home shoveling snow.

"It's just the kind of snow you want for between Christmas and New Year's," she added.

The National Weather Service issued winter storm warnings for parts of Pennsylvania, New Jersey, New York and New England and coastal flood advisories from New York's Long Island to southern Maine.

Airlines canceled more than 800 flights on Thursday, according to FlightAware.com, a website that tracks flights.

Some flights into and out of the three major New York City area airports - Newark Liberty International, John F. Kennedy International and LaGuardia - were delayed due to the weather, the Federal Aviation Administration reported.

The weather service forecast 12 to 18 inches of snow for northern New England, accompanied by freezing rain and sleet, creating hazards on the highways and at airports.

More snow is headed east, said Alex Sosnowski, senior meteorologist at Accuweather.com.

"A new storm is in the works for portions of New England, the mid-Atlantic and the Ohio Valley," he said.

The new storm "will bring more snow to areas that received snow from the post-Christmas storm and will bring snow to some areas that got rain or mostly rain," he said, adding that it has the potential to strengthen to a strong nor'easter or blizzard in parts of New England.

Tom Olney, a 50-year-old stay-at-home father of two, was making plans to go sledding with his children in their hometown of Wayland, Massachusetts.

"We love snow," Olney said. "What else are you going to do when it's this wet and cold out?"

Western Massachusetts, like much of the Northeast, had an uncharacteristically mild winter last year, but residents such as Olney say they are ready for a more typical cold season.

"Mother Nature doesn't usually give you two in a row," he said. "We've still got a lot of supplies from last year, so I guess we're ready for it now."

Heavy snow was falling in Maine, Vermont and New Hampshire.

Eleven inches of snow was forecast for Buffalo, where some 8 to 12 inches of snow fell overnight into Thursday. Prior to that, Buffalo was 23 inches below average for this time of year, the weather service said.

"It's just a reminder, winter is here," said Tom Paone of the National Weather Service in Buffalo.

Daniel Ivancic, of the Buffalo suburb of Tonawanda, said he bought a snowmobile last winter that has sat largely idle with snow totals well below average.

"I waited and waited and, no snow. This winter it seemed like the same thing was going to happen until the storm hit," Ivancic said. "I'm just going to take advantage of every minute of it."

Police patrolling the New York State Thruway from Buffalo to Albany reported dozens of accidents, mostly involving cars that slipped off snowy roads overnight.

Freezing rain - making for treacherous travel conditions - was predicted for parts of Maryland, Pennsylvania, Virginia and West Virginia while significant rain was likely along the New Jersey, Virginia and Maryland coasts, the weather service said.

The storm system dumped record snow in north Texas and Arkansas before sweeping through the South on Christmas Day and then veering north.

The system triggered tornadoes and left almost 200,000 people in Arkansas and Alabama without power on Wednesday.

Authorities said an 81-year-old man died in Georgiana, Alabama after a tree fell on his home.

(Additional reporting by Betsy Pisik in Wayland, Massachusetts, Zach Howard in Conway, Massachusetts, Kaija Wilkinson in Mobile, Alabama, Colleen Jenkins in Winston-Salem, North Carolina and Dan Burns in New York; Editing by Ellen Wulfhorst and Claudia Parsons)

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iOS apps see Christmas sales spike shrink in 2012

Distimo just released its statistics on Christmas Day app downloads and revenue growth… and the download spike is far smaller than it was last year. Back in 2011, Christmas Day iOS app download volume spiked 230% above the December average. This year, the increase was just 87% — far below industry expectations. The revenue spike came in at 70%.

[More from BGR: Google names 12 best Android apps of 2012]

Interestingly, iPad downloads increased by 140% this Christmas, implying that the iPhone download bounce was really modest.

[More from BGR: New purported BlackBerry Z10 specs emerge: 1.5GHz processor, 2GB RAM, 8MP camera]

A few weeks ago, AppAnnie released statistics showing that iOS app revenue growth had stalled over the summer of 2012, whereas Android app revenue growth was relatively strong at 48% over a five month period. Both Distimo and Appannie are respected companies and their analytics are closely followed by app industry professionals. Could it be that the pace of iPhone app revenue growth has slowed down sharply from 2011 levels, even if Distimo and AppAnnie numbers aren’t entirely accurate?

This article was originally published by BGR

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“Rescue Me” singer Fontella Bass dies aged 72

(Reuters) – American soul singer Fontella Bass, who topped the R&B chart in 1965 with the song “Rescue Me,” died in St. Louis. She was 72.

Bass died in hospice care on Wednesday night from complications of a heart attack she suffered three weeks ago, her daughter, Neuka Mitchell, told Reuters. Bass had also suffered from strokes in recent years.

“She’s going to be missed,” Mitchell said. “Her big personality. Her love for family. Her big, giving heart and her cooking.”

She was known as the “queen of soul food” to her family, Mitchell said.

Bass was born into a singing family in St. Louis. Her mother, Martha Bass, was a singer in the Clara Ward Singers gospel group. Her brother, the late R&B singer David Peaston, scored a handful of hits in the 1980s and 1990s.

Bass first achieved success dueting with Bobby McClure in 1965 on songs such as “Don’t Mess Up A Good Thing” and “You’ll Miss Me (When I’m Gone),” both of which were hits on the pop and R&B charts.

Bass’ biggest hit came with “Rescue Me,” which shot up the Billboard pop charts in the fall of 1965, becoming one of the most popular soul hits of all time.

“It held a special place in her heart,” Mitchell said of the song. “She sang it every time she performed.”

The song has been covered and sampled numerous times over the years, including by pop stars Linda Ronstadt and Cher, and more recently in 2000 by UK group Nu Generation, who remixed the song into a dance track.

Nu Generation’s remix, “In Your Arms (Rescue Me)” hit the top 10 of the UK singles chart.

Bass had moderate success in later years with a gospel album in the 1990s, but was unable to emulate the popularity set by “Rescue Me.”

She was married to jazz trumpeter and composer Lester Bowie. The two spent time living in Europe in the late 1960s and early 1970s before moving back to the United States.

Funeral arrangements for Bass have not been finalized. The singer is survived by her four children.

(Reporting by Eric Kelsey and Piya Sinha-Roy; Editing by Doina Chiacu)

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New York’s Mental Health System Thrashed by Services Lost to Storm

Marcus Yam for The New York Times

Dr. Richard Rosenthal, physician in chief of behavioral services for Continuum hospitals, at St. Luke’s-Roosevelt Hospital Center.

When a young woman in the grip of paranoid delusions threatened a neighbor with a meat cleaver one Saturday last month, the police took her by ambulance to the nearest psychiatric emergency room. Or rather, they took her to Beth Israel Medical Center, the only comprehensive psychiatric E.R. functioning in Lower Manhattan since Hurricane Sandy shrank and strained New York’s mental health resources.

The case was one of 9,548 “emotionally disturbed person” calls that the Police Department answered in November, and one of the 2,848 that resulted in transportation to a hospital, a small increase over a year earlier.

But the woman was discharged within hours, to the shock of the mental health professionals who had called the police. It took four more days, and strong protests from her psychiatrist and caseworkers, to get her admitted for two weeks of inpatient treatment, said Tony Lee, who works for Community Access, a nonprofit agency that provides supportive housing to people with mental illness, managing the Lower East Side apartment building where she lives.

Psychiatric hospital admission is always a judgment call. But in the city, according to hospital records and interviews with psychiatrists and veteran advocates of community care, the odds of securing mental health treatment in a crisis have worsened significantly since the hurricane. The storm’s surge knocked out several of the city’s largest psychiatric hospitals, disrupted outpatient services and flooded scores of coastal nursing homes and “adult homes” where many mentally ill people had found housing of last resort.

One of the most affected hospitals, Beth Israel, recorded a 69 percent spike in psychiatric emergency room cases last month, with its inpatient slots overflowing. Instead of admitting more than one out of three such cases, as it did in November 2011, it admitted only one out of four of the 691 emergency arrivals this November, records show. Capacity was so overtaxed that ambulances had to be diverted to other hospitals 15 times in the month, almost double the rate last year, in periods typically lasting for eight hours, officials said.

Dr. Richard Rosenthal, physician in chief of behavioral services for Continuum Health Partners, Beth Israel’s parent organization, said he was proud of how much Continuum’s hospitals had done to handle psychiatric overflow since storm damage shuttered Bellevue Hospital Center, the city’s flagship public hospital; NYU Langone Medical Center; and the Veterans Affairs Hospital. But these days, he said, as he walks on Amsterdam Avenue between Continuum’s Roosevelt hospital on West 59th Street and its St. Luke’s hospital on West 114th Street, he notices more mentally ill people in the streets than he has seen in years.

“When you have the most vulnerable folks, all you need is one chink in the system and you lose them,” Dr. Rosenthal said. “Whether they lost their housing, or the outpatient services they usually go to were closed and they were lost to follow-up, they have become disconnected, with predictable results.”

Similar patterns are playing out in Brooklyn, where Maimonides Medical Center has been overwhelmed with mental health emergencies from the Coney Island vicinity since Coney Island Hospital, one of the city’s largest acute care psychiatric hospitals, suspended operations, hospital officials said.

“Triage has reached a different level: You have to get sicker to get in,” said Dr. Andrew Kolodny, the chairman of psychiatry at Maimonides, citing a 56 percent increase in psychiatric emergency room visits there from Oct. 26 to Dec. 7, compared with the same period last year, and a 24 percent rise in admissions. The increase in admissions was possible only with emergency permission from the state to exceed licensed limits.

“Not only is there decreased capacity, because Bellevue and Coney Island are off line,” Dr. Kolodny added, “but there’s increased demand because the storm or the loss of their residence has been a stressor for mental illness.”

The storm battered a mental health system that still relies heavily on private nursing homes and substandard adult homes to house people with mental illness. Such institutions have a sordid history of neglect and exploitation, and the courts have repeatedly found that their overuse by the state isolated thousands of people in violation of the Americans With Disabilities Act.

Plans are under way to increase supportive housing — dwellings where mentally ill people can live relatively independently, with support services. But even before Hurricane Sandy, the expansion fell far short of demand.

The storm underscored the fragility of the system. Many disabled evacuees who were sent first to makeshift school shelters lost access to the psychiatric medications that kept their symptoms at bay, Dr. Kolodny said. Even those lucky enough to have the drugs they need are at greater risk of relapse as they experience crowded living conditions. “If they’re now sleeping in a gym with 100 people, that can tip them over the edge and start making them really paranoid,” he said.

On Staten Island, where the chief of psychiatry at Richmond University Medical Center says psychiatric resources have been stretched to the limit, clergy members report that mentally ill people transferred to a large adult home in New Brighton from one that was washed away in Far Rockaway, Queens, are now showing up at church rectories, begging for socks and underwear.

“It’s heartbreaking, because they just found us by chance,” said Margaret Moschetto, a missionary at the Church of Assumption-St. Paul in New Brighton. “They were just walking around the neighborhood. They really didn’t know where they were.”

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Toyota to pay big to settle suits

Toyota Motor Corp., moving to put years of legal problems behind it, has agreed to pay more than $1 billion to settle dozens of lawsuits relating to sudden acceleration.

The proposed deal, filed Wednesday in federal court, would be among the largest ever paid out by an automaker. It applies to numerous suits claiming economic damages caused by safety defects in the automaker's vehicles, but does not cover dozens of personal injury and wrongful-death suits that are still pending around the nation.

The suits were filed over the last three years by Toyota and Lexus owners who claimed that the value of their vehicles had been hurt by the potential for defects, including floor mats that could cause the vehicles to surge out of control.

ROAD TO RECALL: Read The Times' award winning coverage

In addition, Toyota said it is close to settling suits filed by the Orange County district attorney and a coalition of state attorneys general who had accused the automaker of deceptive business practices. The costs of those agreements would be included in a $1.1-billion charge the Japanese automaker said it will take against earnings to cover the actions.

"We concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers," Christopher Reynolds, Toyota's chief counsel in the U.S., said in a statement.

Toyota's lengthy history of sudden acceleration was the subject of a series of Los Angeles Times articles in 2009, after a horrific crash outside San Diego that took the life of an off-duty California Highway Patrol officer and his family.

Under terms of the agreement, which has not yet been approved in court, Toyota would install brake override systems in numerous models and provide cash payments from a $250-million fund to owners whose vehicles cannot be modified to incorporate that safety measure.

In addition, the automaker plans to offer extended repair coverage on throttle systems in 16 million vehicles and offer cash payments from a separate $250-million fund to Toyota and Lexus owners who sold their vehicles or turned them in at the end of a lease in 2009 or 2010. The total value of the settlement could reach $1.4 billion, according to Steve Berman, the lead plaintiff attorney in the case.

The lawsuits, filed over the last several years, had been seeking class certification.

News of the agreement comes scarcely a week after Toyota agreed to pay a record $17.35-million fine to the National Highway Traffic Safety Administration for failing to report a potential floor mat defect in a Lexus SUV. Those come on top of almost $50 million in fines paid by Toyota for other violations related to sudden acceleration since 2010.

The massive settlement does not, however, put Toyota's legal woes to rest. The automaker still faces numerous injury and wrongful death claims around the country, including a group of cases that have been consolidated in federal court in Santa Ana, and other cases awaiting trial in Los Angeles County.

The first of the federal cases, involving a Utah man who was killed in a Camry that slammed into a wall in 2010, is slated for trial in mid-February.

The California cases are set to begin in April, among them a suit involving a 66-year-old Upland woman who was killed after her vehicle allegedly reached 100 miles per hour and slammed into a tree.

Edgar Heiskell III, a West Virginia attorney who has a dozen pending suits against Toyota, said he is preparing to go to trial this summer in a case that involved a Flint, Mich., woman who was killed when her 2005 Camry suddenly accelerated near her home.

"We are proceeding with absolute confidence that we can get our cases heard on the merits and that we expect to prove defects in Toyota's electronic control system," he said.

Toyota spokesman Mike Michels said the settlement would have no bearing on the personal injury cases.

"All carmakers face these kinds of suits," he said. "We'll defend those as we normally would."

The giant automaker's sudden acceleration problems first gained widespread attention after the August 2009 crash of a Lexus ES outside San Diego.

That accident set off a string of recalls, an unprecedented decision to temporarily stop sales of all Toyota vehicles and a string of investigations, including a highly unusual apology by Toyota President Akio Toyoda before a congressional committee. Eventually Toyota recalled more than 10 million vehicles worldwide and has since spent huge sums — estimated at more than $2 billion, not including Wednesday's proposed settlement — to repair both its automobiles and public image.

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One of Chicago's most feared mobsters dies in prison

Frank Calabrese Jr., ex-mobster and author of the book Family Secrets, speaks to the Chicago Tribune's John Kass on March 14, 2011, at Bella Luna cafe in Chicago. (Nancy Stone, Chicago Tribune, March 14, 2011)

Convicted mob hitman Frank Calabrese Sr. has died in a federal prison in North Carolina.

Calabrese died on Christmas at the Butner Federal Correctional Complex, where he had been serving a life sentence, according to a spokesman for the Bureau of Prisons. He was 75.

Calabrese, one of Chicago’s most feared mobsters, was convicted in 2007 during the Operation Family Secrets trial.

A federal jury held Calabrese and two other aging mobsters -- Joseph "Joey the Clown" Lombardo and James Marcello -- responsible for 10 murders after a trial that exposed the seedy inner workings of organized crime in Chicago.

Calabrese,  a portly, bearded loan shark who according to witnesses doubled as a hit man, was found responsible for seven mob murders. Witnesses, including his brother Nicholas Calabrese, said he strangled victims with a rope, then cut their throats to make sure they were dead.

Marcello, described by prosecutors as a top leader of the Chicago Outfit, was held responsible for the June 1986 murder of Tony "The Ant" Spilotro, the Chicago mob's longtime man in Las Vegas and the inspiration for the Joe Pesci character in the movie "Casino."

The Family Secrets trial was the biggest organized crime case in Chicago in years. The defendants were convicted of operating the Chicago Outfit as a racketeering enterprise.

They allegedly squeezed "street tax," similar to protection money, out of businesses, ran sports bookmaking and video poker operations as well as engaged in loan sharking. And they allegedly killed many of those who they feared might spill mob secrets to the government -- or already were doing so.

The cases went unsolved for decades.

Calabrese’s attorney in the Family Secrets trial, Joseph “Shark” Lopez, said Calabrese had been in ill health.

“Last I spoke with him a little over a year ago, he was a sick man,” Lopez said. “He was on about 17 different medications. But always a strong-willed individual.”

After spending hundreds of hours together while Calabrese was on trial, Lopez said the two developed a relationship.

“Sure he was difficult at times because he was used to getting his way, but I only saw one side of him and that was the good side,” Lopez said. “He was a pleasure to deal with and a pleasure to talk to. We’d talk about cooking, restaurants, history, you name it.”

“He was quick-witted, smart and street-savvy,” Lopez said. “Always very upbeat; nothing could keep Frank down.”

Lopez said Calabrese was very religious, making his Christmas day death feel “odd.”

“He always talked about how much he loved spending Christmas with his family. It was his favorite holiday of the year,” he said.

Lopez said he thinks there will be mixed feelings in Chicago about Calabrese’s death.

“I’m sure there are some people really sad and some people really happy,” Lopez said. “I’m sad for his family.”

Frank Coconate, a friend of the family, said he heard about the death through Calabrese's wife.

"I’m a little shook up about it,’’ said Coconate, 54, who took vacations to Florida with his wife and Calabrese and often dined with him.  “It’s a family tragedy."

Coconate said Calabrese had heart problems, and had broken his hip in the shower about a month ago.

Coconate remembered Calabrese as a “unique individual’’ with a temper that would flare up unexpectedly, even during dinners out with his family.

"If he heard something, if you shot your mouth off, you’d be having dinner and he’d ask you to come outside and he’d crack you in the head," Coconate said. "He was a throwback gangster. He would fight with his fists and was strong as a bull. But that’s the business they’re are in.

"He was a great manipulator," he said, recalling recent allegations that Calabrese persuaded a priest to act as a messenger for him. "He was very charming. That’s what made him dangerous.’’

He said the last real communication he’d received from Calabrese was a 19-page letter from prison. In recent years, there were just brief messages through other people. “He’d say, 'How's it going? How’s your wife?' He’d say keep an eye on his son. He didn’t want him him to get hurt."

Coconate said Calabrese was in isolation in prison, and only Calabrese's wife and his lawyer were allowed to see him about every month. “It’s pretty sad. But whatever he was, nobody should be treated like that. An animal should not be treated that way."

Coconate was in the news himself in 2005 when he was fired from his city job in Chicago. He was later reinstated after contending he was dismissed because of his frequent criticism of the Daley administration.

Calabrese's body was taken to the medical examiner's office, where it was to be examined, according to Kevin Gerity, autopsy manager for the office. 

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