Group calls for action on financial reform
BERLIN, April 20 (UPI) -- Global anti-corruption group Transparency International called for a focus on financial reform among Group of 20 leaders meeting in Washington this week.
"The time to act is now. It has been two years since the onset of the financial crisis and the critically needed reforms to protect the general pubic from fraud must be fully implemented," Transparency Chairwoman Huguette Labelle said in a statement.
Four days after the U.S. Securities and Exchange Commission charged financial giant Goldman Sachs with fraud, Transparency said, "In the face of mounting evidence of financial fraud … Group of 20 should swiftly implement financial reforms that ensure ethical corporate governance of financial institutions."
Financial ministers and central bank governors from G20 nations are scheduled to meet in Washington Thursday and Friday.
Transparency noted that the World Bank estimated 50 million people in developing countries were held back from escaping poverty in 2009 due to the financial meltdown.
Goldman repeats claims of innocence
NEW YORK, April 20 (UPI) -- Goldman Sachs executives said Tuesday the bank lost $100 million on the securities deals that provoked a lawsuit filed Friday by U.S. regulators.
In a conference call with reporters, Goldman co-general counsel Greg Palm said, "We would never intentionally mislead anyone," CNN reported.
U.S. regulators have been negotiating for months with Goldman Sachs concerning a fraud settlement, sources told The Washington Post. When negotiations failed, the Securities and Exchange Commission filed suit alleging the bank sold mortgage-backed securities secretly designed to fail, as they were selected by hedge fund manager John Paulson, who had bet heavily against the housing market.
Palm and Chief Financial Officer David Viniar said Tuesday Paulson was not involved in choosing the securities that went into the so-called Abacus securities deals.
Goldman said in a statement Monday: "We believe that the firm's actions were entirely appropriate, and will take all steps necessary to defend the firm and its reputation by making the true facts known."
Foreign regulators -- the Financial Services Authority in Britain and the Federal Financial Supervisory Authority in Germany -- have said they are also investigating the case in cooperation with the SEC. The Post said the Royal Bank of Scotland lost $850 million while Deutsche-Industriebank lost more than $100 million in investments related to the alleged fraud.
Hutaree leader's speech rehearsal released
DETROIT, April 20 (UPI) -- A federal judge released secret recordings of a Michigan Hutaree Christian militia leader's rehearsal of a speech he prepared for a national militia meeting.
Prosecutors initially refused to release the recording to the media, saying it would jeopardize Hutaree leader David Stone's trial rights, but U.S District Judge Victoria Roberts in Detroit released the recording and other evidence Tuesday, the Detroit Free Press reported.
Stone, 45, and eight others are charged with seditious conspiracy, attempting to use weapons of mass destruction and possession of a firearm in relation to a crime of violence. The arrests came during multistate raids in March.
During the rehearsal, Stone said Americans were waiting for militia members to decide to wage war against New World Order, a group of international power brokers he said overtook the U.S. government.
"We outnumber them," Stone said. "They forget they live in our neighborhoods. They shop at our grocery stores. They eat at our restaurants. We are the ones who control everything in this nation from preparing the food that they eat to running the power stations."
The nine defendants are being held without bond. During a hearing scheduled for April 27, the defendants' attorneys are expected to argue their clients aren't flight risks and don't pose a danger to the community, the Free Press said.
The court also released photos Tuesday, including a group shot of the Hutaree, with arrows pointing to the nine defendants.
FDA: Not ready to regulate salt content
WASHINGTON, April 20 (UPI) -- The U.S. Food and Drug Administration says while today's average salt intake is too high, it is not ready to regulate the amount of sodium contained in foods.
"Today's average sodium intake is several times what the body requires and its long-term effect on our health is very serious," the agency said in a statement. "A new report from the Institute of Medicine this week concludes national action is imperative to reduce the sodium content of foods if we are to make significant progress toward reducing the risk of hypertension and major cardiovascular events for Americans."
But the FDA said a story Tuesday in The Washington Post "leaves a mistaken impression that the FDA has begun the process of regulating the amount of sodium in foods."
FDA officials said they are not currently working on such regulations, nor have they yet made a decision to regulate sodium content in foods.
"Over the coming weeks, the FDA will more thoroughly review the recommendations of the IOM report and build plans for how the FDA can continue to work with other federal agencies, public health and consumer groups and the food industry to support the reduction of sodium levels in the food supply," the agency said.
"We are encouraged by the fact that some food manufacturers have already begun or announced their commitment to reduce sodium levels in their products," officials said.
27 percent too fat for military
WASHINGTON, April 20 (UPI) -- A group of more than 130 retired U.S. military leaders said the escalating rates of child and teen obesity endangers national security.
The U.S. non-profit group, Mission: Readiness, of retired admirals, generals and other senior military leaders, said 9 million young adults are too overweight to join the military.
The report, "Too Fat to Fight," said more than 9 million young adults, or 27 percent of all teens and young adults age 17-24, are too overweight to join the military.
The Centers for Disease Control and Prevention in Atlanta has reported that since 2000, the number of states with 40 percent or more of young adults overweight increased from one state to 39 states.
"We believe that the child obesity issue is so serious it has become a threat to our national security," retired U.S. Air Force Lt. Gen. Norman Seip of Mission: Readiness said in a statement.
The group has joined with Sen. Richard Lugar, R-Ind., and U.S. Secretary of Agriculture Tom Vilsack in supporting child nutrition legislation to ban junk food from schools, support the White House proposal to increase $1 billion per year for 10 years for child nutrition programs and develop school-based strategies to help parents and children adopt healthier eating and exercise habits.
