DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

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

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

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

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'Lincoln,' 'Les Mis,' 'Playbook' lead SAG awards

LOS ANGELES (AP) — Steven Spielberg's Civil War saga "Lincoln," the Victor Hugo musical adaptation "Les Miserables" and the lost-soul romance "Silver Linings Playbook" led the Screen Actors Guild Awards with four nominations each Wednesday.

All three films were nominated for overall performance by their casts. Also nominated for best ensemble cast were the Iran hostage-crisis thriller "Argo" and the British retiree adventure "The Best Exotic Marigold Hotel."

"Lincoln" also scored individual acting nominations for Daniel Day-Lewis in the title role as best actor, Sally Field for supporting actress as Mary Todd Lincoln and Tommy Lee Jones for supporting actor as abolitionist firebrand Thaddeus Stevens.

"Les Miserables" had nominations for Hugh Jackman for best actor as Hugo's long-suffering hero Jean Valjean and Anne Hathaway for supporting actress as a woman fallen into prostitution, plus a nomination for its stunt ensemble.

"Silver Linings Playbook" also had lead-acting nominations for Bradley Cooper and Jennifer Lawrence as troubled spirits who find a second chance at love and Robert De Niro for supporting actor as a football-obsessed dad.

Besides Lawrence, best-actress nominees are Jessica Chastain as a CIA analyst pursuing Osama bin Laden in "Zero Dark Thirty;" Marion Cotillard as a woman who finds romance after tragedy in "Rust and Bone;" Helen Mirren as Alfred Hitchcock's strong-willed wife in "Hitchcock;" and Naomi Watts as a woman caught in the devastation of a tsunami in "The Impossible."

Joining Cooper, Day-Lewis and Jackman in the best-actor field are John Hawkes as a polio victim aiming to lose his virginity in "The Sessions" and Denzel Washington as a boozy airline pilot in "Flight."

The SAG Awards will be presented Jan. 27. The guild nominations are one of Hollywood's first major announcements on the long road to the Feb. 24 Academy Awards, whose nominations will be released Jan. 10.

Nominations for the Golden Globes, the second-biggest film honors after the Oscars, come out Thursday.

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Online:

http://www.sagawards.org

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Chicago best housing market -- for buyers

A sign stands outside a house for sale in the 4400 block of North Mozart Avenue in Chicago. (Chris Sweda/ Chicago Tribune / December 12, 2012)

Tribune staff reporter

5:58 a.m. CST, December 12, 2012

The Chicago area again took the top spot in Zillow's ranking of the best real estate markets for homebuyers, an accolade that is unwelcome news to homeowners trying to sell their properties.

The real estate web site also tapped Chicago in July as the best buyer's market among the nation's 30 largest metropolitan areas.

To calculate its rankings, Zillow looked at selling prices versus list prices, the number of days a listing was on Zillow and the percentage of homes in a market with a price cut. Its ranking as the top buyer's market means properties in the Chicago area stay on the market longer, with more frequent price cuts and sell for less than their listing price, all factors that give prospective buyers more power at the negotiating table.

Among the local municipalities, Inverness, Lansing, Rolling Meadows, Winnetka and Darien were ranked as the top five markets for homebuyers. Sellers had the most negotiating power in Plano, Sycamore, Carpentersville, Elgin and Matteson, according to Zillow.

In November, Zillow identified Chicago as the only market of 30 it follows that experienced month-over-month home value declines in October.

mepodmolik@tribune.com | Twitter @mepodmolik

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Pilot, 2 nurses killed in medical helicopter crash

Three people were killed when a medical helicopter crashed Monday night near the city of Rochelle.

A medical helicopter crashed Monday night on its way to a hospital in Mendota, killing the pilot and two nurses on board, officials said.

The helicopter was registered to Rockford Memorial Hospital and was enroute to pick up a patient at Mendota Community Hospital, officials said.

The helicopter crashed about 8:30 p.m. in a field in the small town of Compton, near the city of Rochelle. The helicopter was destroyed in the crash, according to the FAA.

The Rockford hospital identified the helicopter's occupants as pilot Andy Olesen and flight nurses Jim Dillow and Karen Hollis.

"At Rockford Health System, our hearts are heavy," hospital spokesman Wester Wuori said in a statement. "We grieve the loss of three heroes who dedicated their careers to serving others."

On the hospital's Facebook page, hundreds of people, many of them paramedics and other emergency responders, offered their condolences to the victims' families.

Authorities established a staging area near the intersection of U.S. Route 30 and Illinois Route 251, a dispatcher with the Lee County Sheriff's Office said. The intersection lies between Rochelle and Mendota.

The National Transportation Safety Board will lead the investigation into what caused the crash, according to the FAA.

The nurses and pilots who work in air ambulances are among the best trained in their fields, said Stephen Richey, a former flight respiratory therapist who lives in Indianapolis.

Pilots must be able to land on improvised landing sites on short notice, and the flight nurses on board often must deliver advance medical care to critically injured trauma patients.

The work draws those with years of experience and a deep commitment to helping patients, Richey said.

"You’ll never find a more dedicated group of professionals in your entire life," Richey said.

Medical flight crews also face daily risks. Richey became an aviation safety researcher after losing several friends in crashes, he said.

In October 2008, a medical helicopter crashed after striking a radio tower in Aurora, killing three crew members and a 1-year-old girl.

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Massive HP conference draws 10,000 attendees to ogle products, speakers, presentations

By Suzy Hansen

More than 10,000 customers, partners and attendees flocked to the Hewlett-Packard Discover conference in Frankfurt, Germany, this week to learn about HP's latest products, exchange ideas, swap business cards and basically examine whether HP can improve the way their companies are run. The event was held at Messe Frankfurt, one of the world's largest trade exhibition sites.

CEO Meg Whitman acknowledged in her speech on Tuesday that HP has gone through some rough times this past year. HP's stock price has been nearly halved during her tenure. Whitman, however, pointed out that HP has $120 billion in revenue and is the 10th-largest company in the United States. In Q4, HP has generated $4.1 billion in cash flow.

"We are the No. 1 or No. 2 provider in almost every market," Whitman told the crowd in Frankfurt.

Whitman emphasized  executives' increasing concerns about security and said that it will be addressed by "a new approach": HP's security portfolio, with Autonomy and Vertica, which helps "analyze and understand the context of these events." Executive Vice President of Enterprise Dave Donatelli spoke about converged infrastructure, or bringing together server, network and storage; their software-defined data centers; and their new servers, which "change the way servers have been defined." George Kadifa, executive vice president of software, said 94 of the top 100 companies use HP software. HP is the sixth-largest software company in the world, with 16,000 employees in 70 countries, Kadifa added.

Also at the conference was Jeffrey Katzenberg, CEO of DreamWorks and an old friend of Whitman's from their Disney days, who roused the crowd with a fun speech about his long relationship with HP. Katzenberg showed an old video of himself onstage with a lion, which nearly mauled him. This time, he appeared onstage with a guy in a lion suit. The lesson was to learn from past mistakes and move on.

"If I am smart enough to say 'scalable multicorps processing,' I am smart enough to not put myself onstage with a real lion again," he joked.

The Discover conference is a key vehicle for HP to show off products it's offering in the coming year. Among them were the latest ProLiant and Integrity servers, the 3PAR StoreServ 7000 and the StoreAll and StoreOnce storage systems. At the HP Labs section of the conference, attendees could learn about the cloud infrastructure or test HP's new ElitePad 900.

Throughout the three-day event, which saw attendance grow by 30 percent this year, attendees wandered the enormous halls, milling around displays, watching videos, listening to speeches and participating in workshops. People gathered on clustered couches and chatted with new acquaintances, frequently stopping to plug in their various devices and recharge themselves with coffee. With people coming from all over the world, you could hear many languages spoken, from Arabic to French to the most bewildering of them all: the language of technology. Despite the large crowds, it was hard not to notice there were very few women among the thousands in attendance. In fact, when asked about this phenomenon, one female HP employee said, "Trust me, you aren't the first person who has come up to me asking about this."

Indeed, the Discover conference was like a forest of men in suits. The few women stood out like rays of sunlight. 

Regardless of their presence at this conference, women are making big strides in information technology. Among the leaders are HP CEO Whitman, who also led eBay; Carly Fiorina, who ran HP before Whitman; Yahoo! CEO Marissa Mayer; and Facebook COO Sheryl Sandberg. Were the women at the Discover conference surprised by the low female turnout?

"No, for IT this is standard," said Stefanie, a 30-year-old product manager from Germany. "Many are afraid of all the technical stuff, and you have to prove that you are capable of it. You get more women in retail and distribution but not in high-tech areas, at least not in Europe. In America there are more women in management positions and in general."

Americans might assume that Europe, with its generous social programs that include free daycare, enables more women to ascend the corporate ladder. But that still doesn't mean that a woman trying to balance a high-tech career and a family is always accepted in European society.

"There is still a lot of emphasis on the family," Stefanie said. "It's easier to move up in the U.S., where there is a culture of 'having it all.' It's quite a fight to get there here."

Still, the IT industry might seem inhospitable to women. Could this male-dominated profession be male-dominant because women have a hard time breaking in?

Stefanie disagreed. "No, they actually like working with women," she said. "They want to."

One male conference attendee, who asked not to be named, was less certain.

"There's a lot of ego and testosterone," he said. "It can't be easy" for women.

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Brady throws 4 TDs, Patriots top Texans 42-14

FOXBOROUGH, Mass. (AP) — Just another game for the New England Patriots. Just a wire-to-wire domination of the team with the NFL's best record.

So when their 42-14 Monday night rout of the Houston Texans was complete, there were few big smiles and no loud music in the Patriots locker room.

They've been here before — many times.

"We've played in a countless number of big games," said guard Logan Mankins, a veteran of two of the Patriots five Super Bowls in the past 11 seasons. "We know what it takes to prepare for one and not over-hype the game."

Not exactly the way some Texans viewed it coming in — "the biggest game in the history of this franchise," wide receiver Andre Johnson had said.

Houston certainly didn't play like it, falling behind 21-0 early in the second quarter on three touchdown passes by Tom Brady. It was 28-0 on his fourth scoring toss just over five minutes into the third quarter and, with a strong showing by an improving Patriots defense, the Texans had little hope of coming back.

"If we do what we want," safety Devin McCourty said, "we can't predict the score but we know we can dominate games."

Starting with Brady.

He threw four touchdown passes for the 18th time, passing Johnny Unitas and moving into fourth place all time. In the Patriots seven-game winning streak — four by a margin of at least 28 points — he's thrown for 19 touchdowns and just one interception.

But Monday night's performance was his first as a father of three, capping off a stretch in which his wife, supermodel Gisele Bundchen, gave birth to Vivian Lake on Wednesday.

"She is doing very well," Brady said. "It's been a great week, a great way to end it."

The Patriots (10-3) tied the AFC West-leading Denver Broncos for the second best record in the conference and already have clinched the AFC East title. The Texans (11-2) still hold the top spot in the conference, and have locked up at least a wild-card berth, but two of their remaining three games are against Indianapolis, which trails them by two games in the AFC South.

"We know how important this game was to us," Johnson said after the Texans six-game winning streak ended. "We have to respond next week" against the Colts.

Wes Welker had only three catches and remains five short of becoming the first player with five 100-reception seasons. But his 31-yard punt return and 25-yard catch — the 107th straight game he's had at least one — led to the first of Aaron Hernandez's two touchdowns, a 7-yard score that gave Brady 45 consecutive games with a scoring pass, the third longest streak in NFL history.

Houston came right back, marching to the Patriots 21-yard line. But Matt Schaub forced the ball into double coverage on the next play and McCourty intercepted in the end zone.

It was the farthest the Texans would get until their second series of the third quarter that ended with Arian Foster's 1-yard scoring run that did little to shift the momentum.

"We just got outplayed in all aspects of the game," Foster said. "It's hard to come back from a deficit when you are playing a team of that caliber."

By the time he had scored, the Patriots had built a 28-0 lead on the 7-yard pass to Hernandez, a 37-yarder to Brandon Lloyd, a 4-yarder to Hernandez and a 63-yarder to Donte' Stallworth, who had been cut in training camp but re-signed last week after wide receiver Julian Edelman was injured.

"That particular play is something we had worked on, even in the spring," Stallworth said.

That helped New England to its 20th successive home win in December dating to a loss in 2002 to the New York Jets.

"It is always good to play in Foxborough in December," linebacker Jerod Mayo said. "When you go out and perform the way you do, I think Foxborough is going to be a tough place for anyone to come and play."

It certainly was for Houston, no longer the only team to be unbeaten on the road, falling to 6-1.

Brady nearly had a fifth touchdown pass when Danny Woodhead broke free on a screen pass early in the fourth quarter. Defensive end J.J. Watt, who was pretty much invisible otherwise, forced a fumble, but the ball soared 11 yards into the end zone, where Lloyd fell on it for a 35-7 lead.

Stevan Ridley made it 42-7 with a 14-yard run. Texans backup quarterback T.J. Yates scored on a 1-yard run with 2:00 remaining to close the scoring.

"We got our tails kicked," Houston coach Gary Kubiak said. "I've got to get their chins up and get ready to go play again."

Notes: Watt, who leads the AFC with 16½ sacks, had none against the Patriots. ... New England CB Aqib Talib hurt his hip in the second quarter. CB Alfonzo Dennard injured his hamstring. ... Brady completed 21 of 35 passes for 296 yards. Schaub went 19 for 32 for 232 yards. ... New England has won 10 games in each of the last 10 seasons. The record is 16 by San Francisco (1983-98).

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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New tests could hamper food outbreak detection

WASHINGTON (AP) — It's about to get faster and easier to diagnose food poisoning, but that progress for individual patients comes with a downside: It could hurt the nation's ability to spot and solve dangerous outbreaks.

Next-generation tests that promise to shave a few days off the time needed to tell whether E. coli, salmonella or other foodborne bacteria caused a patient's illness could reach medical laboratories as early as next year. That could allow doctors to treat sometimes deadly diseases much more quickly — an exciting development.

The problem: These new tests can't detect crucial differences between different subtypes of bacteria, as current tests can. And that fingerprint is what states and the federal government use to match sick people to a contaminated food. The older tests might be replaced by the new, more efficient ones.

"It's like a forensics lab. If somebody says a shot was fired, without the bullet you don't know where it came from," explained E. coli expert Dr. Phillip Tarr of Washington University School of Medicine in St. Louis.

The federal Centers for Disease Control and Prevention warns that losing the ability to literally take a germ's fingerprint could hamper efforts to keep food safe, and the agency is searching for solutions. According to CDC estimates, 1 in 6 Americans gets sick from foodborne illnesses each year, and 3,000 die.

"These improved tests for diagnosing patients could have the unintended consequence of reducing our ability to detect and investigate outbreaks, ultimately causing more people to become sick," said Dr. John Besser of the CDC.

That means outbreaks like the salmonella illnesses linked this fall to a variety of Trader Joe's peanut butter might not be identified that quickly — or at all.

It all comes down to what's called a bacterial culture — whether labs grow a sample of a patient's bacteria in an old-fashioned petri dish, or skip that step because the new tests don't require it.

Here's the way it works now: Someone with serious diarrhea visits the doctor, who gets a stool sample and sends it to a private testing laboratory. The lab cultures the sample, growing larger batches of any lurking bacteria to identify what's there. If disease-causing germs such as E. coli O157 or salmonella are found, they may be sent on to a public health laboratory for more sophisticated analysis to uncover their unique DNA patterns — their fingerprints.

Those fingerprints are posted to a national database, called PulseNet, that the CDC and state health officials use to look for food poisoning trends.

There are lots of garden-variety cases of salmonella every year, from runny eggs to a picnic lunch that sat out too long. But if a few people in, say, Baltimore have salmonella with the same molecular signature as some sick people in Cleveland, it's time to investigate, because scientists might be able narrow the outbreak to a particular food or company.

But culture-based testing takes time — as long as two to four days after the sample reaches the lab, which makes for a long wait if you're a sick patient.

What's in the pipeline? Tests that could detect many kinds of germs simultaneously instead of hunting one at a time — and within hours of reaching the lab — without first having to grow a culture. Those tests are expected to be approved as early as next year.

This isn't just a science debate, said Shari Shea, food safety director at the Association of Public Health Laboratories.

If you were the patient, "you'd want to know how you got sick," she said.

PulseNet has greatly improved the ability of regulators and the food industry to solve those mysteries since it was launched in the mid-1990s, helping to spot major outbreaks in ground beef, spinach, eggs and cantaloupe in recent years. Just this fall, PulseNet matched 42 different salmonella illnesses in 20 different states that were eventually traced to a variety of Trader Joe's peanut butter.

Food and Drug Administration officials who visited the plant where the peanut butter was made found salmonella contamination all over the facility, with several of the plant samples matching the fingerprint of the salmonella that made people sick. A New Mexico-based company, Sunland Inc., recalled hundreds of products that were shipped to large retailers all over the country, including Target, Safeway and other large grocery chains.

The source of those illnesses probably would have remained a mystery without the national database, since there weren't very many illnesses in any individual state.

To ensure that kind of crucial detective work isn't lost, the CDC is asking the medical community to send samples to labs to be cultured even when they perform a new, non-culture test.

But it's not clear who would pay for that extra step. Private labs only can perform the tests that a doctor orders, noted Dr. Jay M. Lieberman of Quest Diagnostics, one of the country's largest testing labs.

A few first-generation non-culture tests are already available. When private labs in Wisconsin use them, they frequently ship leftover samples to the state lab, which grows the bacteria itself. But as more private labs switch over after the next-generation rapid tests arrive, the Wisconsin State Laboratory of Hygiene will be hard-pressed to keep up with that extra work before it can do its main job — fingerprinting the bugs, said deputy director Dr. Dave Warshauer.

Stay tuned: Research is beginning to look for solutions that one day might allow rapid and in-depth looks at food poisoning causes in the same test.

"As molecular techniques evolve, you may be able to get the information you want from non-culture techniques," Lieberman said.

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Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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Luke Bryan cleans up at ACAs with 9 awards

Luke Bryan didn't want the American Country Awards to end.

He cleaned up during the fan-voted show, earning nine awards, including artist and album of the year. His smash hit "I Don't Want This Night To End" was named single and music video of the year.

Miranda Lambert took home the second most guitar trophies with three. Jason Aldean was named touring artist of the year. Carrie Underwood won female artist of the year, and a tearful Lauren Alaina won new artist of the year.

Bryan, Aldean, Keith Urban, Lady Antebellum and Trace Adkins with Lynyrd Skynrd were among the high-energy performances.

The third annual ACAs were held at Mandalay Bay in Las Vegas Monday night.

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Online: http://www.theACAs.com

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Follow http://www.twitter.com/AP_Country for the latest country music news from The Associated Press.

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HSBC to pay record $1.9B fine

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.

HSBC Holdings Plc admitted to a breakdown of controls and apologised in a statement on Tuesday announcing it had reached a deferred-prosecution agreement with the U.S. Department of Justice, as first reported by Reuters last week.

"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 deferred prosecution agreement, when detailed by U.S. Justice Department officials later on Tuesday, could yield new information about a failure at HSBC to police transactions linked to Mexico, sources familiar with the matter said.

Details of those dealings 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 a nd 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 i nadequate staffin g a nd high turnover in it s c ompliance units, July's re port 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 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".

HSBC shares dipped 0.3 percent in early London trading to 63 9 pe nce, in line with a slightly weaker European bank index . I ts Ho ng Kong stock nudged up 0.3 percent to HK$79.70.

"It has been damaging for the brand, albeit not as bad as it might have been," said Ian Gordon, analyst at Investec Securities in London.

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Off-duty Chicago cop shot in robbery attempt

A veteran Chicago police officer was shot twice early Monday during an attempted robbery outside his car as a young child sat inside, authorities said.

While the 34-year-old officer sustained gunshot wounds to the chest and wrist, his wounds did not appear to be life-threatening, Chicago Police Department Superintendent Garry McCarthy said.

The officer's wrist was broken, but the bullet that struck his chest inflicted only superficial damage, the superintendent said.

The wounded officer, Mohammad K. Shamah, has been with Chicago Police Department since 2002.

Officer Shamah was one of about 70 award recipients at the department's annual recognition ceremony last month, earning the Superintendent's Award of Valor for fatally shooting a knife-wielding man who threatened to kill three children.

According to a news release announcing the award, a "man with a knife" call was dispatched, stating a person was threatening to kill three children inside an apartment building. Responding officers broke a ground-floor window while Shamah went to the second floor.He then entered one of the units and forced his way into a bedroom, when he saw a man holding a knife to one of the children restraining the others with his legs. "In fear of the safety of the children, Officer Shamah fired his weapon, fatally striking the offender," the released stated.

The release did not state when or where the incident occurred.

"He's obviously shaken up, [but] he's in good spirits," McCarthy said this morning, after visiting the officer at Advocate Christ Medical Center in Oak Lawn. "Right now it's as good as it could possibly be."

The shooting happened about 12:30 a.m. in the 6300 block of South Nashville Avenue, Chicago Police Department News Affairs Officer Hector Alfaro said.

The officer had just parked his car and was preparing to take a child out of a car seat when the attacker approached, according to a law enforcement source with knowledge of the investigation.

The officer, who was off-duty at the time, fired in self-defense and may have struck his attacker, McCarthy said.

Early reports suggested the officer's wrist had sustained significant damage in the shooting, said the law enforcement source, who asked to remain anonymous.

Squad cars combed the area after the shooting, but police did not immediately take anyone into custody.

Despite some reports that police were looking for multiple suspects, police were searching for a single attacker, the law enforcement source said.

Police were reviewing video footage and robbery patterns in the area in hopes of identifying a suspect, McCarthy said.

"We're going to catch the guy [who did this]," the superintendent said.  "We're going to hold them accountable."

Several family members joined the officer in the hospital after the shooting, the superintendent said. The officer, whose name has not been released, also received a visit from Rev. Daniel J. Brandt, the police department's chaplain.

"I'll say this: God is good," Brandt said afterward. "It could have been a lot worse."

More than a dozen police vehicles responded to the area of the shooting, including a mobile command unit and squad cars from neighboring Oak Lawn.

As they stood across the street from the cordoned-off shooting site, neighbors awakened by the commotion said they had heard about a half a dozen gunshots.

A couple that lives nearby said the officer lives in the neighborhood and had been returning from work.

asege@tribune.com

Twitter: @AdamSege

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