Congress examines science behind HGH test for NFL


WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.


Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.


The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.


Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."


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'Modern Family' star's mom cut out of showbiz


LOS ANGELES (AP) — The family of teenage actress Ariel Winter agreed Wednesday to undergo counseling to try to resolve issues that led to her mother losing custody and control of her daughter's already prolific career for the near future.


The accord came shortly before a trial over who would raise the "Modern Family" star was scheduled to begin, with both sides appearing likely to air longtime family grievances and other issues in court. Winter's mother, Chrisoula Workman, has been accused of physically and emotionally abusing her 14-year-old daughter, claims she has vehemently denied.


For the next several months, Winter will continue living with her adult sister, Shanelle Gray. The sisters held hands throughout court proceedings as a judge reviewed the agreement. Her father, Glenn Workman, was granted temporary control of his daughter's finances, and both parents agreed to undergo counseling with Winter and Gray to seek a potential long-term reunification.


The settlement makes clear that fundamental changes will have to occur with Winter's parents for them to continue raising her.


"The parties acknowledge that there is no assurance that Ariel will return to the home of either or both parents," the agreement states.


A therapist will set the terms of counseling, and when and how often Winter and Gray will meet with their parents.


The agreement calls for Winter's mother to not have any involvement in her acting career and relinquish control in Winter's company unless a court orders otherwise. "Chrisoula Workman shall have no contact with nor in any way interfere with Ariel Winter Workman's professional relationships and business contacts," the agreement states.


Ariel, who has been acting since age 7, plays Alex Dunphy on the ABC series, which is both popular and critically acclaimed.


Chrisoula Workman left the courtroom crying and did not speak with reporters as her husband, who had been living separately from her recently, held her hand and navigated a crowd of cameras.


Superior Court Judge Michael Levanas praised the family and their attorneys, saying, "I do believe things are going to get better."


An initial report by child protective services found evidence of emotional abuse, but claims of physical abuse were deemed inconclusive, Levanas said last month.


Since October, Ariel, who turns 15 in January, has been living with Gray, an actress who has appeared on "The Bold and the Beautiful" and operates acting studios with her husband. Gray's attorney has said she was subjected to similar abuse by her mother and that state authorities removed her from Chrisoula Workman's home when she was a teenager.


The actress' brother, Jimmy Workman, said after the hearing that Gray's claims were overblown and the family had been close until recently. "My mother is a loving, caring sweet individual who's done everything for her children," he said.


The trial would have likely featured testimony from various family members and acquaintances about the abuse claims lodged against Chrisoula Workman. She had contended Gray was an unfit guardian and had sought detailed financial information to try to prove her claim.


Guardianship cases in California are public record. Gray's attorneys requested the case and its proceedings be sealed, but a judge refused. The case was filed under Ariel's birth name, Ariel Workman, in part to avoid attention.


Ariel has several projects in the works and already has a lengthy resume of appearances on TV series such as "ER" and "Phineas and Ferb" and movies such as "Kiss Kiss Bang Bang," ''Ice Age: The Meltdown" and "ParaNorman."


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Anthony McCartney can be reached at http://twitter.com/mccartneyAP


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Fed adds another $45B per month in stimulus









The Federal Reserve ramped up its stimulus to the economy on Wednesday, expressing disappointment with the pace of recovery in employment as contentious U.S. budget talks heighten uncertainty about the outlook.

The central bank replaced a more modest stimulus program due to expire at year-end with a fresh round of Treasury purchases that will increase its balance sheet. It committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September.

In a surprise move, the Fed also adopted numerical thresholds for policy, a step that had not been expected until early next year. In particular, the Fed said it will likely keep official rates near zero for as long as unemployment remains above 6.5 percent, inflation between one and two years ahead is projected to be no more than 2.5 percent, and long-term inflation expectations remain contained.

The Fed noted unemployment remains elevated and that inflation is running somewhat below policymakers' 2 percent objective.

"The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions," the Fed said in a statement.

Policymakers also repeated a pledge to keep buying bonds until the labor market outlook improves substantially. A drop in the jobless rate to 7.7 percent in November from 7.9 percent in October was driven by workers exiting the labor force, and therefore did not come close to satisfying that condition.

Under the "Operation Twist" program that will expire at the end of the month, the Fed was buying $45 billion in longer-term Treasuries with proceeds from the sale of short-term debt. The new round of government bond-buying it announced on Wednesday will be funded by essentially creating new money, further expanding the Fed's $2.8 trillion balance sheet.

Fed Chairman Ben Bernanke will discuss the central bank's latest decision at a news conference at 2:15 p.m. (1915 GMT).

SWEATING A WEAK RECOVERY

The Fed cut overnight interest rates to near zero in December 2008 and has bought about $2.4 trillion in bonds in a further effort to push borrowing costs lower and spur a stronger recovery.

Despite the unconventional and aggressive efforts, U.S. economic growth remains tepid. GDP grew at a 2.7 percent annual rate in the third quarter, but it now appears to be slowing sharply. According to a Reuters poll published on Wednesday, economists expect the economy to expand at just a 1.2 percent pace in the current quarter.

Businesses have hunkered down, fearful of a tightening of fiscal policy as politicians in Washington wrangle over ways to avoid a $600 billion mix of spending reductions and expiring tax cuts set to take hold at the start of 2013.

Bernanke has warned that running over this "fiscal cliff" would lead the economy into a new recession.

Fed officials will release a new set of quarterly economic and interest rate projections at 2 p.m. (1900 GMT) that could show yet another round of downward revisions to future growth prospects.

Back in September, the Fed predicted the U.S. economy would expand 2.5 percent to 3 percent in 2013, but even that modest rate is looking potentially rosy. The Reuters poll showed a median U.S. growth estimate of 2.1 percent for next year on the same fourth quarter over fourth quarter basis.

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Court strikes down Illinois' concealed-carry weapons ban

Chicago Tribune reporter Ray Long provides details on the U.S. appeals court ruling regarding concealed weapons in Illinois.









The state of Illinois would have to allow ordinary citizens to carry weapons under a federal appeals court ruling issued today, but the judges also gave lawmakers 180 days to put their own version of the law in place.

In a 2-1 decision that is a major victory for the National Rifle Association, the U.S. Seventh Circuit Court of Appeals said the state's ban on carrying a weapon in public is unconstitutional.

"We are disinclined to engage in another round of historical analysis to determine whether eighteenth-century America understood the Second Amendment to include a right to bear guns outside the home. The Supreme Court has decided that the amendment confers a right to bear arms for self-defense, which is as important outside the home as inside," the judges ruled.

"The theoretical and empirical evidence (which overall is inconclusive) is consistent with concluding that a right to carry firearms in public may promote self-defense. Illinois had to provide us with more than merely a rational basis for believing that its uniquely sweeping ban is justified by an increase in public safety. It has failed to meet this burden.

"The Supreme Court’s interpretation of the Second Amendment compelled the appeals court to rule the ban unconstitutional, the judges said. But the court gave 180 days to "allow the Illinois legislature to craft a new gun law that will impose reasonable limitations, consistent with the public safety and the Second Amendment as interpreted in this opinion, on the carrying of guns in public."


David Sigale, an attorney who represented the Second Amendment Foundation in the lawsuit, called the decision by the appeals court in Chicago “historic.”


“What we are most pleased about is how the court has recognized that the Second Amendment is just as, if not at times more, important in public as it is in the home,” he said. “The right of self-defense doesn’t end at your front door.”








In the opinion, Judge Richard Posner wrote that “a Chicagoan is a good deal more likely to be attacked on a sidewalk in a rough neighborhood than in his apartment on the 35th floor of the Park Tower.”


Illinois Attorney General Lisa Madigan, a Democrat, is taking time to examine the ruling before deciding whether to appeal to the U.S. Supreme Court.


"The court gave 180 days before its decision will be returned to the lower court to be implemented,” said Natalie Bauer, Madigan’s spokeswoman. “That time period allows our office to review what legal steps can be taken and enables the legislature to consider whether it wants to take action." 


Illinois is the only state in the nation not to have some form of conceal carry after Wisconsin recently approved law.

"The (Illinois) legislature, in the new session, will be forced to take up a statewide carry law," said NRA lobbyist Todd Vandermyde.

The lobbyist said prior attempts to reach a middle ground with opponents will no longer be necessary because "those compromises are going out the window."


House Majority Leader Barbara Flynn Currie, a longtime gun control advocate, said she hoped the state would appeal the ruling. But Currie also said lawmakers must “get cracking” on how to respond to the ruling and begin parsing its key points.


Currie, D-Chicago, said that “justices surely do not mean that we would have to have wide-open” laws in Illinois. She said Illinois must now look at what other states are doing, such as disallowing guns in day-care centers and other locations.


“If we need to change the law, let us at least craft a law that is very severely constrained and narrowly tailored so that we don’t invite guns out of control on each of our city’s streets,” Currie said. “I don’t want people out of control wandering the streets with guns that are out of control.”


Rep. Brandon Phelps, who has repeatedly sponsored concealed weapons legislation, hailed the measure as a “mandate."


“The justices more or less said Illinois has a mandate to get something passed within 180 days… to pass a concealed-carry law in the state of Illinois,” said Phelps, a Democrat from Downstate Harrisburg.


“I never thought we’d get a victory of that magnitude,” Phelps said.


Phelps fought unsuccessfully in the House to pass concealed weapons legislation with a long set of restrictions, but he warned opponents of his legislation may regret they had not supported it when they had a chance. Now, he said, he “can’t see us” going forward with legislation that has as many restrictions as the bill that failed.


The prior bill largely limited carrying weapons to when a person was in a car, walking into a house and out on a sidewalk, and it specifically disallowed guns to be carried in churches, schools, gymnasiums, sporting events, bars and businesses, Phelps said.


He said no decision has been made on which restrictions in his previous legislation would be removed in a new bill.


Phelps warned that gun control groups who might want to appeal the issue to the U.S. Supreme Court might put strict laws in other states in jeopardy. He said he would consult with the National Rifle Association and the Illinois State Rifle Association.


A spokeswoman for Gov. Pat Quinn said the administration is reviewing the decision. The governor has previously said he was firmly opposed to any law allowing citizens to carry loaded guns in public. He threatened to veto previous attempts by lawmakers to pass legislation allowing concealed carry in Illinois.


Mayor Rahm Emanuel said through a spokesman that he was “disappointed with the court’s decision.” The city is reviewing the opinion and will work with others “to best protect the residents of Chicago and still meet constitutional restrictions,” Bill McCaffrey added.


“As the mayor has said all along, the City of Chicago is committed to maintaining the fullest degree of lawful handgun restrictions possible while still respecting the Second Amendment rights of law abiding citizens, because maintaining common-sense restrictions is an issue of public safety.”





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Microsoft ups Surface production, to sell in more stores


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


The world's largest software company, which alone has sold the Surface since launch in late October, also said it was keeping its chain of 'pop-up' holiday stores open into the new year and may convert them into permanent retail outlets.


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


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


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


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


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



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Tagliabue overturns Goodell on Saints suspensions


NEW ORLEANS (AP) — In a sharp rebuke to his successor's handling of the NFL's bounty investigation, former Commissioner Paul Tagliabue overturned the suspensions of four current and former New Orleans Saints players in a case that has preoccupied the league for almost a year.


Tagliabue, who was appointed by Commissioner Roger Goodell to handle the appeals, still found that three of the players engaged in conduct detrimental to the league. He said they participated in a performance pool that rewarded key plays — including bone-jarring hits — that could merit fines. But he stressed that the team's coaches were very much involved.


The entire case, he said, "has been contaminated by the coaches and others in the Saints' organization."


The team's "coaches and managers led a deliberate, unprecedented and effective effort to obstruct the NFL's investigation," the ruling said.


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


Saints linebacker Jonathan Vilma had been given a full-season suspension, while defensive end Will Smith, Cleveland linebacker Scott Fujita and free agent defensive lineman Anthony Hargrove each received shorter suspensions.


Tagliabue cleared Fujita of conduct detrimental to the league.


"I affirm Commissioner Goodell's factual findings as to the four players. I conclude that Hargrove, Smith and Vilma — but not Fujita — engaged in 'conduct detrimental to the integrity of, and public confidence in, the game of professional football,'" the ruling said.


"However, for the reasons set forth in this decision, I now vacate all discipline to be imposed upon these players. Although I vacate all suspensions, I fully considered but ultimately rejected reducing the suspensions to fines of varying degrees for Hargrove, Smith and Vilma. My affirmation of Commissioner Goodell's findings could certainly justify the issuance of fines. However ... this entire case has been contaminated by the coaches and others in the Saints organization," it said.


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


None of the players sat out any games because of suspensions. They have been allowed to play while appeals are pending, though Fujita is on injured reserve and Hargrove is not with a team.


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


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


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


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


Meanwhile, the players have challenged the NFL's handling of the entire process in federal court, but U.S District Judge Ginger Berrigan had been waiting for the latest round of appeals to play out before deciding whether to get involved.


NFL investigators found that Vilma and Smith were ring leaders of a cash-for-hits program that rewarded injurious tackles labeled as "cart-offs" and "knockouts." The NFL also concluded that Hargrove lied to NFL investigators to help cover up the program.


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


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


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


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


"We are happy for our members."


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


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


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“Hobbit” actor McKellen has prostate cancer






LONDON (Reuters) – “The Hobbit” actor Ian McKellen said in an interview published on Tuesday that he had had prostate cancer for the last six or seven years, but added that the disease was not life-threatening.


McKellen, 73, played Gandalf in the hit “Lord of the Rings” movie trilogy, and reprises the role in three prequels based on J.R.R. Tolkien’s novel “The Hobbit”.






The first of those, “The Hobbit: An Unexpected Journey”, recently had its world premiere in New Zealand, where it was shot under the directorship of Peter Jackson.


“I’ve had prostate cancer for six or seven years,” McKellen told the Daily Mirror tabloid. “When you have got it you monitor it and you have to be careful it doesn’t spread. But if it is contained in the prostate it’s no big deal.”


His representatives in London were not immediately available to comment on the interview.


“Many, many men die from it but it’s one of the cancers that is totally treatable,” added McKellen, one of Britain’s most respected actors who is also well known in Hollywood for appearances in the X-Men franchise.


“I am examined regularly and it’s just contained, it’s not spreading. I’ve not had any treatment.”


He admitted he feared the worst when he heard he had the disease.


“You do gulp when you hear the news. It’s like when you go for an HIV test, you go ‘arghhh is this the end of the road?’


“I have heard of people dying from prostate cancer, and they are the unlucky ones, the people who didn’t know they had got it and it went on the rampage. But at my age if it is diagnosed it’s not life threatening.”


“The Hobbit” opens in cinemas later this week.


(Reporting by Mike Collett-White)


Celebrity News Headlines – Yahoo! News


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APNewsBreak: DA investigating Texas cancer agency


AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.


Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.


Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.


His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.


CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.


Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.


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


The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.


Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.


Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.


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


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Lawsuit claims A&E's 'Storage Wars' show is rigged


LOS ANGELES (AP) — Some of the valuables found hidden in abandoned lockers on A&E's "Storage Wars" have been added by producers to deceive viewers, a former cast member of the show claims in a lawsuit filed Tuesday.


David Hester's suit claims producers have added a BMW Mini and newspapers chronicling Elvis Presley's death to lockers in order to build drama for the show and that his complaints about the practices led to his firing.


Hester is seeking more than $750,000 in his wrongful termination, breach of contract and unfair business practices lawsuit. A&E Television Network declined comment, citing the pending lawsuit.


"Storage Wars" follows buyers who bid for abandoned storage lockers hoping to find valuables tucked inside.


"A&E regularly plants valuable items or memorabilia," the lawsuit states. Hester's suit claims he was fired from participating in the series' fourth season after expressing concerns that manipulating the storage lockers for the sake of the show was illegal.


He claims that producers stopped adding items to his units after his initial complaints but continued the practice for other series participants. The lawsuit alleges entire units have been staged and the practice may violate a federal law intended to prevent viewers from being deceived when watching a show involving intellectual skills.


"Storage Wars" depicts buyers having only a few moments to look into an abandoned unit before deciding on whether to bid on it at auction. The lawsuit claims some of the auction footage on the show is staged.


Hester, known as "The Mogul" on the show, has been buying abandoned storage units and re-selling their contents for 26 years, according to the suit.


Nielsen Co. has ranked "Storage Wars" among cable television's top-ranked shows several times since its 2010 debut.


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HSBC to pay record $1.9B fine

British-owned bank HSBC is paying $1.9B to settle a US money-laundering probe. The bank was investigated for involvement in the transfer of funds from Mexican drug cartels and sanctioned nations like Iran. (Dec. 11)









HSBC has agreed to pay a record $1.92 billion fine to settle a multi-year probe by U.S. prosecutors, who accused Europe's biggest bank of failing to enforce rules designed to prevent the laundering of criminal cash.

The U.S. Justice Department on Tuesday charged the bank with failing to maintain an effective program against money laundering and conduct due diligence on certain accounts.






In documents filed in federal court in Brooklyn, it also charged the bank with violating sanctions laws by doing business with Iran, Libya, Sudan, Burma and Cuba.

HSBC Holdings Plc admitted to a breakdown of controls and apologised for its conduct.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes," said Chief Executive Stuart Gulliver.

"Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

The bank agreed to forfeit $1.256 billion and retain a compliance monitor to resolve the charges through a deferred-prosecution agreement.

The settlement offers new information about failures at HSBC to police transactions linked to Mexico, details of which were reported this summer in a sweeping U.S. Senate probe.

The Senate panel alleged that HSBC failed to maintain controls designed to prevent money laundering by drug cartels, terrorists and tax cheats, when acting as a financier to clients routing funds from places including Mexico, Iran and Syria.

The bank was unable to properly monitor $15 billion in bulk cash transactions between mid-2006 and mid-2009, and had inadequate staffing and high turnover in its compliance units, the Senate panel's July report said.

HSBC on Tuesday said it expected to also reach a settlement with British watchdog the Financial Services Authority. The FSA declined to comment.

U.S. and European banks have now agreed to settlements with U.S. regulators totalling some $5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.

No bank or bank executives, however, have been indicted, as prosecutors have instead used deferred prosecutions - under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing behaviour.

HSBC's settlement also includes agreements or consent orders with the Manhattan district attorney, the Federal Reserve and three U.S. Treasury Department units: the Office of Foreign Assets Control, the Comptroller of the Currency and the Financial Crimes Enforcement Network.

HSBC said it would pay $1.921 billion, continue to cooperate fully with regulatory and law enforcement authorities, and take further action to strengthen its compliance policies and procedures. U.S. prosecutors have agreed to defer or forego prosecution.

The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to better monitor suspicious transactions. Directives by regulators to improve oversight came in 2003 and again in 2010.

Last month, HSBC told investors it had set aside $1.5 billion to cover fines or penalties stemming from the inquiry and warned that costs could be significantly higher.

Analyst Jim Antos of Mizuho Securities said the settlement costs were "trivial" in terms of the company's book value.

"But in terms of real cash terms, that's a huge fine to pay," said Antos, who rates HSBC a "buy".

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