World/Nation Briefs December 11, 2012

Cliff talks: No progress evident, deadline ahead

WASHINGTON - A year-end deadline approaching, negotiations to avoid an economy-rattling "fiscal cliff" appeared at a standstill Monday. Republicans pressed President Barack Obama to name specific spending cuts he will support, while the White House insisted the GOP agree explicitly to raise tax rates on upper incomes.

At a campaign-style event in Michigan, Obama warned his listeners their taxes will rise on Jan. 1 without action by the Congress. "That's a hit you can't afford to take," he declared.

He spoke one day after meeting privately at the White House with House Speaker John Boehner, whose office expressed frustration with the talks to date.

"We continue to wait for the president to identify the spending cuts he's willing to make as part of the 'balanced' approach he promised the American people,'" said a written statement from the Ohio Republican's office.

The negotiations are designed to prevent across-the-board tax increases and spending cuts scheduled to begin at the turn of the year, a combination that economists say poses the threat of a new recession.

Egypt's military assumes powers ahead of vote

CAIRO - Egypt's military assumed responsibility Monday for protecting state institutions and maintaining security ahead of a Dec. 15 constitutional referendum, as the country braced for another round of mass demonstrations by the supporters of the country's Islamist president and the liberal opposition over the disputed charter.

The referendum on a contentious new constitution lies at the heart of a bitter political battle that has deeply polarized Egypt and triggered some of the worst street violence between backers and opponents of President Mohammed Morsi since he took power in June as the country's first democratically elected leader.

So far, Morsi has stood firm on the referendum, refusing to yield to opposition demands that he scrap the vote scheduled for Saturday. The opposition, meanwhile, was still trying to decide late Monday whether to boycott the referendum or rally Egyptians to vote "no" to the draft constitution, and hoping that a massive turnout for a rally today would force the president to cancel the balloting.

"We still have a chance, with popular rejection, to stop the referendum," said Basil Adel, a former lawmaker and liberal activist.

Egypt's political crisis began on Nov. 22 when Morsi issued a decree granting himself - and the Islamist-dominated panel writing the constitution - immunity from judicial oversight or challenge. Those decrees sparked mass demonstrations, with opponents saying they were issued initially to protect the draft charter from the judiciary.

Strauss-Kahn, NYC hotel maid reach settlement

NEW YORK - Former International Monetary Fund leader Dominique Strauss-Kahn and a hotel maid settled her lawsuit Monday over sexual assault allegations that sank his political career and spurred scrutiny of his dealings with women on two continents.

The housekeeper, Nafissatou Diallo, looked composed and resolute as state Supreme Court Justice Douglas McKeon announced the confidential deal. Strauss-Kahn stayed in Paris and was mum when asked about the settlement, which came after prosecutors abandoned a related criminal case because they said Diallo had credibility problems.

"I thank everyone who supported me all over the world," Diallo, who has rarely spoken publicly since the May 2011 encounter between her and Strauss-Kahn, said softly after court.

"I thank God, and God bless you all," she added.

In a statement, Strauss-Kahn attorneys William Taylor III and Amit Mehta said the former diplomat was "pleased to have arrived at a resolution of this matter." They credited the judge with "patience and forbearance" that fostered the agreement.

HSBC to pay $1.9B in money-laundering probe

WASHINGTON - HSBC, the British banking giant, will pay $1.9 billion to settle a money-laundering probe by federal and state authorities in the United States, a law enforcement official said Monday.

The probe of the bank - Europe's largest by market value - has focused on the transfer of billions of dollars on behalf of nations like Iran, which are under international sanctions, and the transfer of money through the U.S. financial system from Mexican drug cartels.

According to the official, HSBC will pay $1.25 billion in forfeiture and pay $655 million in civil penalties. The $1.25 billion figure is the largest forfeiture ever in a case involving a bank. Under what is known as a deferred prosecution agreement, the financial institution will be accused of violating the Bank Secrecy Act and the Trading With the Enemy Act.

Under the deferred prosecution arrangement, HSBC will admit to certain misconduct, the official said, but the details of those admissions to be made in a New York court were not immediately available late Monday.

- The Associated Press