Holiday sales of PCs slide for first time in five years: IDC






SEATTLE (Reuters) – Holiday season sales of personal computers fell for the first time in more than five years, according to tech industry tracker IDC, as Microsoft Corp’s new Windows 8 operating system failed to excite buyers and many opted for tablet devices and powerful smartphones instead of PCs.


PC makers such as Hewlett-Packard Co, Lenovo Group and Dell Inc sold 89.8 million PCs worldwide in the fourth quarter of last year, down 6.4 percent from the same quarter of 2011. That was slightly worse than expected by most.






For all of 2012, 352 million PCs were sold, down 3.2 percent from 2011. That was the first annual decline since 2001, according to IDC. (Reporting By Bill Rigby; Editing by Gary Hill)


Tech News Headlines – Yahoo! News





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Spielberg's in at Oscars, Bigelow, Affleck are out


BEVERLY HILLS, Calif. (AP) — Steven Spielberg had a great day at the Academy Awards nominations, where his Civil War saga "Lincoln" led with 12 nominations.


It was not so great for Kathryn Bigelow, Tom Hooper and Ben Affleck, whose films did well but surprised — dare we say shocked? — Hollywood by failing to score directing nominations for the three filmmakers.


"I just think they made a mistake," said Alan Arkin, a supporting-actor nominee for Affleck's Iran hostage-crisis tale "Argo."


"Lincoln," ''Argo," Bigelow's Osama bin Laden manhunt thriller and Hooper's Victor Hugo musical "Les Miserables" landed among the nine best-picture contenders Thursday.


Also nominated for the top honor were the old-age love story "Amour"; the independent hit "Beasts of the Southern Wild"; the slave-revenge narrative "Django Unchained"; the shipwreck story "Life of Pi"; and the lost-souls romance "Silver Linings Playbook."


A mostly predictable bunch. But it's baffling how Bigelow — the first woman to earn the directing Oscar for her 2009 best-picture winner "The Hurt Locker" — missed out on a nomination for one of last year's most-acclaimed films.


"Yes, it was a surprise," Spielberg said of Bigelow. "But I've been surprised myself through the years, so I know what it feels like."


Spielberg was snubbed for a directing slot on 1985's "The Color Purple," which earned 11 nominations, including best picture. He also was overlooked for director on 1975's "Jaws," another best-picture nominee.


"I never question the choices the academy branches make, because I've been in the same place that Kathryn and Ben find themselves today," said Spielberg, who finally got his Oscar respect in the 1990s with best-picture and director wins for "Schindler's List" and another directing trophy for "Saving Private Ryan." ''I'm grateful if I'm nominated, and I've never felt anything other than gratitude even when I'm not — gratitude for at least having been able to make the movie. So I never question the choices."


Especially this time, when "Lincoln" has positioned itself as the film to beat at the Feb. 24 Oscars. Its nominations include best actor for Daniel Day-Lewis for his monumental performance as Abraham Lincoln, supporting actress for Sally Field as Mary Todd Lincoln and supporting actor for Tommy Lee Jones as abolitionist firebrand Thaddeus Stevens.


Oscar directing contenders usually are identical or at least line up closely with those for the Directors Guild of America Awards. But only Spielberg and "Life of Pi" director Ang Lee made both lists this time.


The Directors Guild also nominated Affleck, Bigelow and Hooper, but the Oscars handed its other three slots to David O. Russell for "Silver Linings Playbook" and two real longshots: veteran Austrian filmmaker Michael Haneke for "Amour" and newcomer Benh Zeitlin, who made his feature debut with "Beasts of the Southern Wild."


Zeitlin, whose low-budget, dream-like film about a wild child in Louisiana's flooded backwoods won the top honor at last year's Sundance Film Festival, said he never expected to be competing "alongside the greatest filmmakers alive."


"I'm completely freaking out," Zeitlin said. "Those guys taught me how to make films. The VHS pile that was on the VCR when I was born was past Spielberg movies, and that's why I started wanting to do this, was watching them thousands and thousands of times."


Other nominees were caught off guard over how the category shook out.


"I would be lying if I didn't say I was surprised," Russell, a past nominee for "The Fighter," said about Bigelow.


Lee, who won the directing Oscar for "Brokeback Mountain," agreed that there were surprises — but pleasant ones, particularly for Zeitlin's inclusion.


"Newcomers, veterans, a European," Lee said. "It's great company, and it's an honor to line up with them, and encouraging because there is a newcomer."


Colleagues of snubbed filmmakers were not so happy.


"That put a damper on my enthusiasm," ''Argo" co-star Arkin said of Affleck, an A-lister who's arguably proving himself a better director than actor. "I thought his work was the work of an old master, not somebody with just two films under his belt. I thought it was an extraordinary piece of directing."


"I would have loved him to have been recognized in this," Hugh Jackman, a best-actor nominee as Hugo's tragic hero Jean Valjean for "Les Miserables," said of director Hooper. "But no one will be able to take away the achievement, nor really that the eight nominations that 'Les Miz' has are more shared with him than with anyone."


Composer Alexandre Desplat, who wrote the music for "Zero Dark Thirty" and "Argo" and earned a best-score nomination for the latter, said he was puzzled over Affleck and Bigelow's exclusion.


"I think they both deserved to be nominated," Desplat said. "Unfortunately, I don't decide."


"Zero Dark Thirty" has had backlash in Washington, where some lawmakers say it falsely suggests that torture produced a tip that led the U.S. military to Bin Laden. It's hard to imagine that affecting the film's Oscar nominations, though, given Hollywood's history of playing loose with facts in depicting true-life stories.


The academy's directing snubs virtually take "Argo," ''Les Miserables" and "Zero Dark Thirty" out of the best-picture race, since a movie almost never wins the top prize if the filmmaker is not nominated. It can happen — 1989's "Driving Miss Daisy" did it — but a directing nomination usually goes hand-in-hand with a best-picture win.


The nominations held other surprises. "Amour" won the top prize at last May's Cannes Film Festival but mainly was considered a favorite for the foreign-language Oscar. It wound up with five nominations, the same number as "Zero Dark Thirty," which came in with expectations of emerging as a top contender.


Along with best-picture, director and foreign-language film, "Amour" picked up nominations for Haneke's screenplay and best actress for Emmanuelle Riva as an ailing, elderly woman tended by her husband.


"It's the last stage of my life, so this nomination is a gift to me, a dream I could never had imagined," Riva said. "Michael's talent is to make the film real. ... That's why it touched the world. We are all little, fragile people on this earth, sometimes nasty, sometimes generous."


Riva is part of a multi-generational spread: At 85, Riva is the oldest best-actress nominee ever, while 9-year-old Quvenzhane Wallis is the youngest ever for her role as the spirited bayou girl in "Beasts of the Southern Wild."


Spielberg matched his personal Oscar best as "Lincoln" tied the 12 nominations that "Schindler's List" received.


Two of Spielberg's stars could join the Oscar super-elite. Both Day-Lewis and Field have won two Oscars already. A third would put them in rare company with previous triple winners Ingrid Bergman, Walter Brennan, Jack Nicholson and Meryl Streep. Katharine Hepburn holds the record with four acting Oscars.


A best-picture win would be Spielberg's second, while another directing win would be his third, a feat achieved only by Frank Capra and William Wyler, who each earned three directing Oscars, and John Ford, who received four.


"Lincoln" also was the ninth best-picture nominee Spielberg has directed, moving him into a tie for second-place with Ford. Only Wyler directed more best-picture nominees, with 13.


"I think Steven is a full-fledged genius. I think he has transformed the motion-picture industry more than once, and he's constantly pushing the envelope and changing," Field said. "He stands alone. And he has the most profound respect, and he's a scholar of John Ford and William Wyler and many others. ... He's a scholar of all of this because he's so endlessly curious."


___


AP entertainment writers Christy Lemire, Sandy Cohen, Anthony McCartney and Derrik Lang in Los Angeles and AP writers Jill Lawless in London and Thomas Adamson in Paris contributed to this report.


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Parental Consent Rule May Proceed for a Circumcision Ritual, a Judge Says





New York City health officials may proceed temporarily with a plan to require parental consent before an infant may undergo a particular Jewish circumcision ritual, a federal judge ruled Thursday.




City officials say 12 cases of herpes simplex virus have likely resulted from the procedure, known as metzitzah b’peh, since 2000, including one Brooklyn case reported this week. Two infants died, and two suffered permanent brain damage. Most Jews no longer practice metzitzah b’peh, in which the circumciser uses his mouth to suck blood from the wound, but it remains common among some ultra-Orthodox communities.


Citing the risk of infection, health officials in September introduced a regulation that would require parents to provide written consent stating that they were aware of the health risks.


But the Central Rabbinical Congress of the United States and Canada, Agudath Israel of America, and the International Bris Association sued in October to stop the rule from taking effect, calling it an infringement of their constitutional rights. They also denied the procedure posed a risk and asked a federal court to put the rule on hold while the litigation proceeded.


In denying the request for a preliminary injunction, Judge Naomi Reice Buchwald of the United States District Court for the Southern District wrote that the risks were clear.


“In light of the quality of the evidence presented in support of the regulation, we conclude that a continued injunction against enforcement of the regulation would not serve the public interest,” she wrote.


City lawyers said they were gratified by the ruling, but Andrew Moesel, a spokesman for the plaintiffs, said the groups would appeal. “We continue to believe that this case is a wrongful and unnecessary intrusion into the rights of freedom of religion and speech,” he said.


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Herbalife fires back at hedge fund giant









Herbalife Chief Executive Michael Johnson was tired of a powerful hedge fund manager bad-mouthing his company.


So he put on a show Thursday before hundreds of investors at the Four Seasons hotel in Manhattan, rebutting claims that the Los Angeles nutritional supplement company is a pyramid scheme. The presentation accused hedge fund giant Bill Ackman of lies and snobbery, compared Herbalife to the Girl Scouts and featured the company's president entreating that "the world needs more hugs."


Who says Wall Street is more boring these days?





The company's two-hour defense of itself is the latest in a battle since Ackman's Pershing Square Capital Management labeled Herbalife as "the best-managed pyramid scheme in the history of the world," during a similar presentation he made late last month. The outspoken fund manager has made a $1-billion bet that the stock would plunge in value.


"Just the very nature of the 'battle' has never been seen in the history of the Earth," said Tim Ramey, an analyst with D.A. Davidson and Co. "This was a very, very orchestrated attack."


Herbalife has hired a battalion of researchers to prove that it has a legitimate and stable business model. Executives held back no punches Thursday before a crowd of investors and analysts, labeling Ackman an elitist who made "false statements," "distortions" and "misrepresentations" about Herbalife and vowing to use "every means available to protect our reputation."


"In recent weeks, there's been a tremendous amount of misinformation about Herbalife," Johnson said. "This misinformation has found its way into the marketplace. Therefore we are sitting with you to correct some of this today."


In addition to outside experts brought in to bolster Herbalife's claims, company executives went through Pershing's presentation last month, disputing individual slides.


To the complaint that Herbalife is not focused on its products, Chief Operating Officer Rich Goudis showed figures indicating that the company spends millions on research and development.


To a Pershing slide that accused Herbalife of having a small distribution network, the company countered with a map of more than 300 company-run distribution points and showing its expansion in Indonesia and South Korea.


To a Pershing slide showing Herbalife products as more expensive than competitors' per 200-calorie servings, the company offered its own slide that compared the prices of the products per unit and showed costs in line with those of its competitors.


"Pershing intentionally used a misleading metric," Goudis said. "They did this to knowingly create a false impression."


They paraded out experts.


Kim Rory, representing Lieberman Research Worldwide, said distributors she surveyed had joined Herbalife because they wanted to get a discount on the products for personal use. Few signed up because they thought they'd make a large amount of money, and about two-thirds would recommend being a distributor to friends, she said.


Anne Coughlan, a professor at the Kellogg School of Management, defended Herbalife's marketing structure and disputed the allegation that it is a pyramid scheme.


"I didn't even see a scintilla of evidence that would suggest to me any hint that this company is running anything but a legitimate multi-level marketing program," she said.


Perhaps the most personal attacks came from Herbalife President Des Walsh, who said he was "highly offended" by Ackman's portrayal of Herbalife's nutrition clubs and defended the company for bringing nutritional products to poor neighborhoods.


After showing a video featuring happy distributors in crowded nutrition clubs, Walsh suggested that Ackman was out of touch with real America.


"This doesn't look like a country club in Westchester, Connecticut, but let me tell you, inside this club is real America," he said. (Earlier in the presentation, Walsh explained that people come to the club for a hug, adding, "the world needs more hugs.")


His comments echo a note sent out last week by D.A. Davidson analyst Ramey, who has a "buy" rating on Herbalife.


"Perhaps where Mr. Ackman lives he never sees a car with the 'Lose weight, ask me how' message across the rear window," he wrote. "I can tell Mr. Ackman that in my hometown, which is not quite Chappaqua, Herbalife is an iconic and widely recognized brand."


Ackman responded quickly Thursday, saying that Herbalife's presentation "distorted, mischaracterized and outright ignored large portions of our presentation," and that he had been contacted by people who provided more information into Herbalife's business practices, which he will soon reveal.


The unusual fight on Wall Street ramped up in December, when Ackman laid out his case against Herbalife in a three-hour, 200-plus slide presentation. He questioned whether the company was focused on recruiting new distributors, who pay to join the company, instead of on selling products. His announcement sent the company's stock down 36% and turned heads when analysts heard he'd sold short 20 million Herbalife shares.


Ackman's biggest beef with Herbalife focused on its so-called multi-level marketing model, which he said led to only those at the top of the company making money. More than 90% of distributors break even or lose money, he said. Ackman even drew UCLA into the controversy, saying Herbalife mentioned a lab at the university multiple times during each investor presentation to lend itself legitimacy.


Herbalife shares recovered some of their losses in the weeks after Ackman's presentation as some investors expressed confidence in the company. Hedge fund Third Point said it was taking an 8.2% stake in Herbalife, betting that the company would survive Ackman's assault.


Analysts at Thursday's meeting seemed supportive of Herbalife, with some expressing their belief in the company during a question-and-answer period after the presentation. One analyst urged the company to fight back against Pershing Square's method of "slandering" the company.


"It was a good, thorough presentation that certainly accomplished the job of defending the legitimacy of their business model," Ramey said.


Still, not all investors were convinced by the presentation. Herbalife's stock closed down 71 cents, or 1.8%, at $39.24. That may be because on Wednesday the Securities and Exchange Commission opened an investigation into Herbalife, according to published reports.


alana.semuels@latimes.com





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Irvine City Council overhauls oversight, spending on Great Park









Capping a raucous eight-hour-plus meeting, the Irvine City Council early Wednesday voted to overhaul the oversight and spending on the beleaguered Orange County Great Park while authorizing an audit of the more than $220 million that so far has been spent on the ambitious project.


A newly elected City Council majority voted 3 to 2 to terminate contracts with two firms that had been paid a combined $1.1 million a year for consulting, lobbying, marketing and public relations. One of those firms — Forde & Mollrich public relations — has been paid $12.4 million since county voters approved the Great Park plan in 2002.


"We need to stop talking about building a Great Park and actually start building a Great Park," council member Jeff Lalloway said.





The council, by the same split vote, also changed the composition of the Great Park's board of directors, shedding four non-elected members and handing control to Irvine's five council members.


The actions mark a significant turning point in the decade-long effort to turn the former El Toro Marine base into a 1,447-acre municipal park with man-made canyons, rivers, forests and gardens that planners hoped would rival New York's Central Park.


The city hoped to finish and maintain the park for years to come with $1.4 billion in state redevelopment funds. But that money vanished last year as part of the cutbacks to deal with California's massive budget deficit.


"We've gone through $220 million, but where has it gone?" council member Christina Shea said of the project's initial funding from developers in exchange for the right to build around the site. "The fact of the matter is the money is almost gone. It can't be business as usual."


The council majority said the changes will bring accountability and efficiencies to a project that critics say has been larded with wasteful spending and no-bid contracts. For all that has been spent, only about 200 acres of the park has been developed and half of that is leased to farmers.


But council members Larry Agran and Beth Krom, who have steered the course of the project since its inception, voted against reconfiguring the Great Park's board of directors and canceling the contracts with the two firms.


Krom has called the move a "witch hunt" against her and Agran. Feuding between liberal and conservative factions on the council has long shaped Irvine politics.


"This is a power play," she said. "There's a new sheriff in town."


The council meeting stretched long into the night, with the final vote coming Wednesday at 1:34 a.m. Tensions were high in the packed chambers with cheering, clapping and heckling coming from the crowd.


At one point council member Lalloway lamented that he "couldn't hear himself think."


During public comments, newly elected Orange County Supervisor Todd Spitzer chastised the council for "fighting like schoolchildren." Earlier this week he said that if the Irvine's new council majority can't make progress on the Great Park, he would seek a ballot initiative to have the county take over.


And Spitzer angrily told Agran that his stewardship of the project had been a failure.


"You know what?" he said. "It's their vision now. You're in the minority."


mike.anton@latimes.com


rhea.mahbubani@latimes.com





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Samsung sets sights on RIM’s corporate users






Now that Samsung (005930) has bested Apple in the consumer smartphone market, at least where shipment volume is concerned, the company is setting its sights on Research in Motion’s (RIMM) corporate user base. The company is investing heavily in enterprise devices that incorporate a higher level of security and reliability than consumers require. Various government agencies and corporations aren’t fully sold on RIM’s upcoming BlackBerry 10 operating system and are still unsure if will satisfy their needs. As a result, they have begun to explore alternatives for their employees.


[More from BGR: iPhone 5 now available with unlimited service, no contract on Walmart’s $ 45 Straight Talk plan]






“The enterprise space has suddenly become wide open,” Kevin Packingham, chief product officer for Samsung Mobile USA, said in an interview with Reuters. “The RIM problems certainly fueled a lot of what the CIOs are going through, which is they want to get away from a lot of the proprietary solutions.”


[More from BGR: CES has sadly become a complete waste of time]


The executive revealed that Samsung’s corporate market ambitions advanced after its flagship Galaxy S III smartphone gained various security certifications. He noted that companies “want something that integrates what they are doing with their IT systems,” and that “Samsung is investing in that area.” Packingham said that enterprise has been a focus of the company for a long time and its products have finally evolved enough to “really take advantage” of the market.


“We knew we had to build more tech devices to successfully enter the enterprise market,” he said. “What really turned that needle was that we had the power of the GS3.”


This article was originally published on BGR.com


Gadgets News Headlines – Yahoo! News





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'Lincoln,' 'Les Miz' look for big Oscar haul


BEVERLY HILLS, Calif. (AP) — Crusaders for good, old-fashioned Western democracy look to be the key figures vying for this year's Academy Awards.


Best-picture favorites for Thursday morning's Oscar nominations include "Lincoln," Steven Spielberg's portrait of the great emancipator who abolished slavery and reunified the United States; "Zero Dark Thirty," Kathryn Bigelow's chronicle of the hunt for U.S. public enemy No. 1, Osama bin Laden; and "Les Miserables," Tom Hooper's musical epic set against an uprising of freedom fighters in 19th century France.


Among other prospects are "Argo," Ben Affleck's thriller about a CIA scheme to save Americans from Iran amid the 1979 hostage crisis; "Django Unchained," Quentin Tarantino's bloody revenge saga about a former slave hunting white oppressors just before the Civil War; and "Life of Pi," Ang Lee's story of a free-thinking Indian youth cast adrift on a lifeboat with a Bengal tiger while traveling to a new life in North America.


This year's nominations come earlier than usual in Hollywood's long awards season, leaving the awards picture a bit murkier. By the time Oscar nominations come out most years, the Golden Globes already have given their trophies, helping to sort out prospective front-runners for show business' biggest night.


The nominations this time precede the Golden Globes ceremony, which follows on Sunday.


The Globes and other honors presented in late January and February by directors, actors, writers and producers guilds will clear up the best-picture race for the Oscars. Right now, "Lincoln," ''Les Miserables" and "Zero Dark Thirty" appear the most likely contenders for the top prize.


All three films come from directors who delivered best-picture winners in the past: Spielberg with 1993's "Schindler's List," Bigelow with 2009's "The Hurt Locker" and Hooper with 2010's "The King's Speech." Bigelow also won the directing Oscar, the first woman ever to earn that honor, Hooper earned the same prize a year later, and Spielberg has received the directing trophy twice, for "Schindler's List" and 1998's "Saving Private Ryan."


"Lincoln" also has good chances on acting nominations for three past winners: two-time Oscar recipients Daniel Day-Lewis as Abraham Lincoln and Sally Field as Mary Todd Lincoln, and supporting actor recipient Tommy Lee Jones as abolitionist firebrand Thaddeus Stevens.


"Zero Dark Thirty" star Jessica Chastain, a supporting-actress nominee last season for "The Help," is in the running for a best-actress slot this time as a CIA operative relentlessly pursuing bin Laden.


Two past Oscar ceremony hosts have strong shots at nominations for "Les Miserables": Hugh Jackman for best actor as Victor Hugo's tragic hero Jean Valjean and Anne Hathaway for supporting actress as a doomed single mother forced into prostitution.


Other acting possibilities include Jennifer Lawrence, Bradley Cooper and Robert De Niro for the oddball romance "Silver Linings Playbook; Jamie Foxx, Leonardo DiCaprio and Christoph Waltz for "Django Unchained"; Affleck and Alan Arkin for "Argo"; John Hawkes and Helen Hunt for the sex-surrogate story "The Sessions"; Joaquin Phoenix, Philip Seymour Hoffman and Amy Adams for the 1950s cult tale "The Master"; Bill Murray for the Franklin Roosevelt comic drama "Hyde Park on Hudson"; Anthony Hopkins and Helen Mirren for the filmmaking chronicle "Hitchcock"; Marion Cotillard for the French-language drama "Rust and Bone"; and Denzel Washington for the airliner-crash saga "Flight."


Winners for the 85th Oscars will be announced Feb. 24 at a ceremony aired live on ABC from Hollywood's Dolby Theatre.


"Family Guy" creator and vocal star Seth MacFarlane — a versatile performer whose work includes directing and voicing for the title character of last summer's hit "Ted" and a Frank Sinatra-style album of standards — is the Oscar host.


Thursday's nominees will be announced at 8:40 a.m. EST by "The Amazing Spider-Man" star Emma Stone and MacFarlane, the first time that an Oscar show host has joined in the preliminary announcement since 1972, when Charlton Heston participated on nominations day.


___


Online:


http://www.oscars.org


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Recipes for Health: Tunisian Style Baked Cauliflower Frittata — Recipes for Health


Andrew Scrivani for The New York Times







In the authentic version of this frittata there is a lot more olive oil, as well as chopped hard-boiled eggs. This one is lighter and simpler. It is great for lunch or dinner and keeps well in the refrigerator.




1/2 medium head cauliflower (about 1 1/4 pounds), trimmed of leaves, bottom of the stem trimmed away


2 tablespoons extra virgin olive oil


1 small onion, finely chopped


2 garlic cloves, minced


8 eggs


Salt and freshly ground pepper to taste


1/2 cup finely chopped parsley


2 teaspoons ground caraway seeds


2 tablespoons freshly grated Parmesan


1/2 teaspoon harissa dissolved in 1 teaspoon water, or 1/4 teaspoon cayenne


Freshly ground pepper


1. Preheat the oven to 350 degrees. Place 1 tablespoon of the olive oil in a 2-quart casserole, preferably earthenware or in a 9-inch cast iron skillet, and brush the bottom and sides of the dish with the oil.


2. Bring a large pot of water to a boil and salt generously. Add the cauliflower and boil gently until very tender, about 15 minutes. If you prefer, you can cut up the cauliflower and steam it for 15 minutes. Using slotted spoons or tongs remove the cauliflower from the water (or from the steamer), transfer to a bowl of cold water and drain. Cut the florets from the stem and mash into little pieces with a fork. You should have about 3 cups.


3. Heat 1 tablespoon of the oil over medium heat in a large, heavy skillet and add the onion. Cook, stirring, until the onion softens, about 5 minutes. Stir in the garlic, stir together for about 30 seconds and remove from the heat.


4. Whisk the eggs in a large bowl. Season with salt and freshly ground pepper to taste. Stir in the cauliflower, onion and garlic, parsley, ground caraway and Parmesan. Make sure the harissa is dissolved in the water if using, and stir in; otherwise stir in the cayenne. Scrape into the casserole dish.


5. Place in the oven and bake 40 minutes, or until set. Allow to cool for at least 10 minutes before serving. In Tunisia these frittatas are served at room temperature, but you can also serve it hot.


Yield: Serves 6


Advance preparation: The frittata is delicious served the next day. Bring back to room temperature or heat slightly in a low oven before serving. The cooked cauliflower will keep for about 3 days in the refrigerator.


Nutritional information per serving: 165 calories; 12 grams fat; 3 grams saturated fat; 2 grams polyunsaturated fat; 6 grams monounsaturated fat; 249 milligrams cholesterol; 5 grams carbohydrates; 2 grams dietary fiber; 139 milligrams sodium (does not include salt to taste); 10 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Consumer bureau to unveil new mortgage standards









In sweeping new rules aimed at fixing the home lending market, the Consumer Financial Protection Bureau on Thursday will define a "qualified mortgage" — one a borrower can actually be expected to pay back — while in effect banning a slew of dicey loans at the center of the financial crisis.


The regulations, among the most important handed down yet by the 18-month-old agency, also aim to loosen the choking loan standards that have prevailed since the housing crash. They do so by limiting bankers' liability for prime loans that can be sold to government-backed mortgage giants such as Fannie Mae.


The rules, to be phased in over the coming year, aim to improve access for creditworthy borrowers to today's historically low-interest loans and to create a stable and predictable housing finance system for banks and their customers alike.





Complying with the rules would provide a "safe harbor" shielding lenders from being sued for one of the most frequent and bitter complaints of the subprime era: sticking borrowers with unaffordable loans, then selling off the loans — and the risk.


One leading consumer advocate said the bureau had gone too far out of its way to accommodate bankers, whose loose lending had triggered the foreclosure crisis and the worst economic collapse since the 1930s.


The bureau's action "invites abusive lending and erodes the progress made by Dodd-Frank," the landmark regulatory reform bill passed after the financial crisis, said Alys Cohen, an attorney with the National Consumer Law Center.


"The safe harbor the bureau has afforded for prime loans provides absolute shelter to lenders who knowingly make unaffordable loans, in direct violation of congressional intent," said Cohen, who was to appear at a home lending forum Thursday in Baltimore with bureau officials.


The safe harbor provision shields lenders only from lawsuits over borrowers' ability to pay. Consumers would still be able to pursue claims that lenders violated other laws, such as those governing deceptive advertising or wrongful foreclosures.


The rules met with relief from mortgage bankers, who had feared Draconian restrictions from the bureau, created by consumer advocate Elizabeth Warren. The former Harvard law professor, newly sworn in as a U.S. senator, was so at odds with the industry and congressional Republicans that President Obama backed away from appointing her to head the agency after tapping her to set it up.


"The goal of this regulation, ensuring that borrowers receive loans that they can repay, is in everyone's best interest. We cannot, and should not, go back to the high-risk lending environment of the early 2000s," Debra W. Still, chairwoman of the Mortgage Bankers Assn., said in a statement.


Consumer bureau Director Richard Cordray, who was scheduled to formally unveil the rules Thursday, said the aim was to achieve "the true essence of 'responsible lending.'"


"The American dream of homeownership was shaken to its foundations," Cordray said in prepared remarks. "But, in the wake of the financial crash, we have been experiencing a housing market that is tough on people in just the opposite way — credit is achingly tight."


The qualified mortgage rules rest on the principle of ability to pay, the goal Congress told the bureau to implement in the regulatory reform law passed after the financial crisis. Senior officials at the consumer agency briefed reporters on it Wednesday.


The rules notably limit a potential borrower's total payments, including those for property taxes, fire insurance and non-housing debt such as credit cards, to 43% of gross income.


During the housing boom, aggressive lenders had set the bar at 50% or higher for mortgage payments alone — disregarding other debt — and then allowed borrowers to qualify by merely stating their incomes, with no documentation.


The rules simultaneously aim to ban mainstream use of the riskiest practices of the housing bubble, such as loans made without checking tax returns and pay stubs; loans with payments so low that the loan balance rises instead of falls; and qualifying borrowers based on low "teaser" rates instead of fully adjusted payments.


Certain subprime loans to borrowers with credit problems could be qualified mortgages, but not the loosely underwritten loans that helped fuel the housing boom and bust.


Lenders would still have to determine that borrowers could afford to repay such loans, which would carry significantly higher interest rates than prime mortgages. They also could be challenged more easily in court — for instance, by borrowers claiming a lender gave them a loan that left them too little money to live on, even though their debt payments were only 43% of their incomes.


Lenders are expected to continue lending outside the guidelines in some cases. For example, jumbo mortgages — those too big for purchase by Fannie and Freddie — are often written to affluent borrowers who for a variety of reasons choose to pay interest only for a period of time. There's no reason that practice should stop, senior consumer bureau officials said.


Lenders will be given a year to phase in compliance with the new rules. Some question certain limits imposed by the regulations, such as limits of 3% on points and fees that borrowers could be charged upfront, and the 43% cap on total debt payments.


The 3% fee limit would be hard to meet in some cases, said the mortgage trade group's Still.


Laguna Beach mortgage broker Richard Cirelli said that the debt ratio could pose problems, especially in expensive real estate markets.


"Capping the debt limit at 43% is going to create some problems," Cirelli said. "Especially for first-time buyers in California. It's still pretty expensive here."


scott.reckard@latimes.com





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Charlie Sheen downplays Baja encounter with L.A. mayor









Los Angeles Mayor Antonio Villaraigosa found himself sucked deeper into the Charlie Sheen-TMZ-Hollywood gossip vortex Tuesday, with the actor speaking out again about the night they met up at a hotel in Mexico over the holidays.


Sheen made news last month after he tweeted a picture of himself with his arm around Villaraigosa the night of Sheen's bar opening in Baja California, Mexico. The former star of "Two and a Half Men" praised the mayor as a man who "knows how to party." But Villaraigosa downplayed the significance of the image, telling KNBC's Conan Nolan over the weekend that he had only "bumped into" Sheen and engaged in a three-minute conversation.


On Tuesday, Sheen challenged Villaraigosa's account, telling celebrity website TMZ that the mayor was drinking in Sheen's hotel suite in a room full of beautiful women, including at least one porn star. "I memorize 95 pages a week, so the last thing that I am is memory challenged," Sheen told the website. "We hung out for the better part of two hours."





Hours later, Sheen issued a more muted account, saying the mayor had spoken to many other people at the opening of the bar. "I am a giant fan of the mayor's and apologize if any of my words have been misconstrued," the statement said.


By then, however, Villaraigosa found himself fending off related questions at a news conference meant to be devoted to billionaire Eli Broad's new downtown art museum. "Can you just set the record straight for us?" asked one reporter. "What was it? Two hours or three minutes?" asked another. Then came the zinger: "Does what happens in Cabo stay in Cabo?"


Villaraigosa cackled at the Cabo crack but refused to take the bait. "I've said what I'm going to say on that, everybody," Villaraigosa declared. "You had fun. Let's talk about the important things, like a thousand jobs today" — a reference to construction work going on at Broad's museum.


Villaraigosa has frequently bristled at media questions about his personal life, going silent on some occasions and becoming visibly angry on others. Last week, he told KNBC's Nolan that Nolan had asked a "bozo question" about the Sheen photograph. He also noted that Nolan and other newsroom staffers have, like Sheen, asked the mayor to pose for pictures with them.


Sheen has been a TMZ staple, using the website as a platform to talk up his $100,000 gift to celebrity Lindsay Lohan and his porn star "goddesses." And Villaraigosa has glided easily between the world of politics and the entertainment industry since being elected in 2005.


"He's a celebrity mayor. And he's always wanted to be that," said Jaime Regalado, professor emeritus of political science at Cal State L.A. "If you're going to be a celebrity mayor, you have to take the good and the bad and everything in between" when it comes to news coverage.


david.zahniser@latimes.com


kate.linthicum@latimes.com





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