Meeting planned on bridging ‘fiscal cliff’ as deadline looms

With a deadline looming, President Obama will meet with congressional leaders at the White House today in search of a compromise to avoid a year-end “fiscal cliff” of across-the-board tax increases and deep spending cuts.

The development capped a day of growing urgency in which Obama returned early from a Hawaiian vacation while lawmakers snarled across a partisan divide over responsibility for gridlock on key pocketbook issues. Speaker John A. Boehner called the House back into session for a highly unusual Sunday evening session.

Adding to the woes confronting the middle class was a pending spike of $2 per gallon or more in milk prices if lawmakers failed to pass farm legislation by year’s end.

Four days before the deadline, the White House disputed reports that Obama was sending lawmakers a scaled-down plan to avoid the fiscal cliff of tax increases and spending cuts.

Administration officials confirmed today’s meeting at the White House in a bare-bones announcement that said the president would “host a meeting.”

An aide to Senate Republican Leader Mitch McConnell said the Kentucky lawmaker “is eager to hear from the president.”

A spokesman for Boehner issued a statement that said the Ohio Republican would attend and “continue to stress that the House has already passed legislation to avert the entire fiscal cliff and now the Senate must act.”

While there was no guarantee of a compromise, Republicans and Democrats said privately that elements of any agreement would likely include an extension of middle class tax cuts with increased rates at upper incomes as well as cancellation of the scheduled spending cuts. An extension of expiring unemployment benefits, a reprieve for doctors who face a cut in Medicare payments and possibly a short-term measure to prevent dairy prices from soaring could also become part of a year-end bill, they said.

That would postpone politically contentious disputes over spending cuts for 2013.

Top Senate leaders said they remain ready to seek a last-minute agreement. Yet there was no legislation pending and no sign of negotiations in either the House or the Senate on a bill to prevent the tax hikes and spending cuts that economists say could send the economy into a recession.

Far from conciliatory, the rhetoric was confrontational and at times unusually personal.

Senate Majority Leader Harry Reid, D-Nev., accused Boehner of running a dictatorship, citing his refusal to call a vote on legislation to keep taxes steady for most while letting them rise at upper incomes. The bill “would pass overwhelmingly,” Reid predicted, and said the Ohio Republican won’t change his mind because he fears it might cost him re-election as speaker when the new Congress convenes next week.

Boehner seems “to care more about keeping his speakership than keeping the nation on a firm financial footing,” he said in remarks on the Senate floor.

A few hours later, McConnell expressed frustration and blamed the standoff on Obama and the Democrats. “Republicans have bent over backwards. We stepped way, way out of our comfort zone,” he said, referring to GOP offers to accept higher tax rates on some taxpayers.

“We wanted an agreement, but we had no takers. The phone never rang, and so here we are five days from the new year and we might finally start talking,” McCon- nell said.

Still, he warned: “Republicans aren’t about to write a blank check for anything the Democrats put forward just because we find ourselves at the edge of the cliff.”

Brendan Buck, a spokesman for Boehner, responded in a similar vein to Reid’s comments. “Harry Reid should talk less and legislate more if he wants to avert the fiscal cliff. The House has already passed legislation to do so,” he said, referring to a measure that extends existing cuts at all income levels.

Addressing the GOP rank and file by conference call, Boehner said the next move is up to the Senate, which has yet to act on House-passed bills to retain expiring tax cuts at all income levels and replace across-the-board spending cuts with targeted savings aimed largely at social programs.

Norman Schwarzkopf dead, retired general was 78

Retired Gen. H. Norman Schwarzkopf, who topped an illustrious military career by commanding the U.S.-led international coalition that drove Saddam Hussein's forces out of Kuwait in 1991 but kept a low public profile in controversies over the second Gulf War against Iraq, died Thursday. He was 78.

Schwarzkopf died in Tampa, Fla., where he had lived in retirement, according to a U.S. official, who was not authorized to release the information publicly and spoke on condition of anonymity.

A much-decorated combat soldier in Vietnam, Schwarzkopf was known popularly as "Stormin' Norman" for a notoriously explosive temper.

He served in his last military assignment in Tampa as commander-in-chief of U.S. Central Command, the headquarters responsible for U.S. military and security concerns in nearly 20 countries from the eastern Mediterranean and Africa to Pakistan.

Schwarzkopf became "CINC-Centcom" in 1988 and when Saddam Hussein invaded Kuwait three years later to punish it for allegedly stealing Iraqi oil reserves, he commanded Operation Desert Storm, the coalition of some 30 countries organized by President George H.W. Bush that succeeded in driving the Iraqis out.

"Gen. Norm Schwarzkopf, to me, epitomized the 'duty, service, country' creed that has defended our freedom and seen this great nation through our most trying international crises," Bush said in a statement. "More than that, he was a good and decent man — and a dear friend."

At the peak of his postwar national celebrity, Schwarzkopf — a self-proclaimed political independent — rejected suggestions that he run for office, and remained far more private than other generals, although he did serve briefly as a military commentator for NBC.

While focused primarily in his later years on charitable enterprises, he campaigned for President George W. Bush in 2000 but was ambivalent about the 2003 invasion of Iraq, saying he doubted victory would be as easy as the White House and Pentagon predicted. In early 2003 he told the Washington Post the outcome was an unknown:

"What is postwar Iraq going to look like, with the Kurds and the Sunnis and the Shiites? That's a huge question, to my mind. It really should be part of the overall campaign plan," he said.

Initially Schwarzkopf had endorsed the invasion, saying he was convinced that former Secretary of State Colin Powell had given the United Nations powerful evidence of Iraqi weapons of mass destruction. After that proved false, he said decisions to go to war should depend on what U.N. weapons inspectors found.

He seldom spoke up during the conflict, but in late 2004, he sharply criticized then-Defense Secretary Donald Rumsfeld and the Pentagon for mistakes that included inadequate training for Army reservists sent to Iraq and for erroneous judgments about Iraq.

"In the final analysis I think we are behind schedule. ... I don't think we counted on it turning into jihad (holy war)," he said in an NBC interview.

Schwarzkopf was born Aug. 24, 1934, in Trenton, N.J., where his father, Col. H. Norman Schwarzkopf Jr., founder and commander of the New Jersey State Police, was then leading the investigation of the Lindbergh kidnap case, which ended with the arrest and 1936 execution of German-born carpenter Richard Hauptmann for stealing and murdering the famed aviator's infant son.

The elder Schwarzkopf was named Herbert, but when the son was asked what his "H'' stood for, he would reply, "H." Although reputed to be short-tempered with aides and subordinates, he was a friendly, talkative and even jovial figure who didn't like "Stormin' Norman" and preferred to be known as "the Bear," a sobriquet given him by troops.

He also was outspoken at times, including when he described Gen. William Westmoreland, the U.S. commander in Vietnam, as "a horse's ass" in an Associated Press interview.

As a teenager Norman accompanied his father to Iran, where the elder Schwarzkopf trained the country's national police force and was an adviser to Reza Pahlavi, the young Shah of Iran.

Young Norman studied there and in Switzerland, Germany and Italy, then followed in his father's footsteps to West Point, graduating in 1956 with an engineering degree. After stints in the U.S. and abroad, he earned a master's degree in engineering at the University of Southern California and later taught missile engineering at West Point.

In 1966 he volunteered for Vietnam and served two tours, first as a U.S. adviser to South Vietnamese paratroops and later as a battalion commander in the U.S. Army's Americal Division. He earned three Silver Stars for valor — including one for saving troops from a minefield — plus a Bronze Star, a Purple Heart and three Distinguished Service Medals.

While many career officers left military service embittered by Vietnam, Schwarzkopf was among those who opted to stay and help rebuild the tattered Army into a potent, modernized all-volunteer force.

After Saddam invaded Kuwait in August 1990, Schwarzkopf played a key diplomatic role by helping to persuade Saudi Arabia's King Fahd to allow U.S. and other foreign troops to deploy on Saudi territory as a staging area for the war to come.

On Jan. 17, 1991, a five-month buildup called Desert Shield became Operation Desert Storm as allied aircraft attacked Iraqi bases and Baghdad government facilities. The six-week aerial campaign climaxed with a massive ground offensive on Feb. 24-28, routing the Iraqis from Kuwait in 100 hours before U.S. officials called a halt.

Schwarzkopf said afterward he agreed with Bush's decision to stop the war rather than drive to Baghdad to capture Saddam, as his mission had been only to oust the Iraqis from Kuwait.

But in a desert tent meeting with vanquished Iraqi generals, he allowed a key concession on Iraq's use of helicopters, which later backfired by enabling Saddam to crack down more easily on rebellious Shiites and Kurds.

While he later avoided the public second-guessing by academics and think tank experts over the ambiguous outcome of Gulf War I and its impact on Gulf War II, he told the Washington Post in 2003, "You can't help but... with 20/20 hindsight, go back and say, 'Look, had we done something different, we probably wouldn't be facing what we are facing today.'"

After retiring from the Army in 1992, Schwarzkopf wrote a best-selling autobiography, "It Doesn't Take A Hero." Of his Gulf war role, he said, "I like to say I'm not a hero. I was lucky enough to lead a very successful war." He was knighted by Queen Elizabeth II and honored with decorations from France, Britain, Belgium, Kuwait, Saudi Arabia, United Arab Emirates, Qatar and Bahrain.

Schwarzkopf was a national spokesman for prostate cancer awareness and for Recovery of the Grizzly Bear, served on the Nature Conservancy board of governors and was active in various charities for chronically ill children.

"I may have made my reputation as a general in the Army and I'm very proud of that," he once told the AP. "But I've always felt that I was more than one-dimensional. I'd like to think I'm a caring human being. ... It's nice to feel that you have a purpose."

Schwarzkopf and his wife, Brenda, had three children: Cynthia, Jessica and Christian.

Delhi Gang Rape Patient Has Brain Injury and Is Fighting For Life, Doctors Say

The medical condition of the 23-year-old woman who was raped by several men and thrown off a moving bus on Dec. 16 is worse than previous reports had indicated, according to the Singapore hospital where she is being treated.

Dr. Kevin Loh, chief executive of Mount Elizabeth Hospital, said in a statement Friday:

“As at 28 Dec, 11am (Singapore time) the patient continues to remain in an extremely critical condition. She is still receiving treatment at Mount Elizabeth Hospital’s Intensive Care Unit.

“Our medical team’s investigations upon her arrival at the hospital yesterday showed that in addition to her prior cardiac arrest, she also had infection of her lungs and abdomen, as well as significant brain injury. The patient is currently struggling against the odds, and fighting for her life.

“A multi-disciplinary team of specialists has been working tirelessly to treat her since her arrival, and is doing everything possible to stabilize her condition over the next few days.”

On Thursday afternoon, hours after the patient arrived in Singapore from New Delhi, Dr. Loh described her condition as “extremely critical,” and said she had had three abdominal surgeries and a cardiac arrest before arrival.

In an interview Thursday evening, Dr. Mahesh Chandra Misra, professor and head of the department of surgical disciplines at the All India Institute of Medical Sciences, who was part of the team caring for the patient in New Delhi, described her initial injuries as the worst he’d ever seen.

“As doctors, we’ve never witnessed anything like this,” he said.

The patient was “practically dead” when she was brought in to Safdarjung Hospital on the morning of Dec. 17, and had to be resuscitated, he said. Then, the doctor’s immediate focus was on damage control, he said, and her small and large intestines were removed because they were gangrenous.

“Her intestines were hanging out” when she arrived at the hospital, Dr. Misra said, adding that her injuries indicated that an iron rod had been used to attack her. The young woman was taken off a ventilator last Friday, when was reported to have spoken to her family, but then put back on a ventilator on Sunday.

She has had three surgeries so far, which were extensive operations, Dr. Misra said, noting that her health was critical when she was shifted to Singapore Wednesday night.

“Right now, her heart needs to be stabilized,” Dr. Misra said Thursday night. The doctors’ task in Singapore is “bringing her back from this condition,” he said.

Report: Nets want Phil Jackson

The Nets were thinking big when they moved to Brooklyn and acquired a host of high-priced stars to rival the Knicks for New York supremacy.

Now, after firing coach Avery Johnson when the team sank into a slump, the Nets may be shooting for the stars again.

Phil Jackson is the top target of the Nets' coaching search, according to a report by ESPN's Marc Stein and Chris Broussard.

Jackson's agent, Todd Musburger, told TNT's David Aldridge that his client has "no interest in the Nets' job at this time." But, according to the report, the Nets still hope to sway him, and an ESPN source says Jackson would listen because his interest in coaching was rekindled when the Lakers approached him after firing Mike Brown in November.

Jackson, who coached the Lakers to five titles and the Bulls to six, reacted  with surprise and some disappointment when the Lakers unexpectedly hired Mike D'Antoni in November.

P.J. Carlesimo was named Brooklyn's interim coach Thursday and was told by GM Billy King to approach the job "like he's going to coach the team for the next 10 years."

Toyota seeks to settle acceleration case for $1.1 billion

Shares of Toyota rose nearly 3 percent in Tokyo following the news, with some investors saying the settlement removed one uncertainty for the company and looked manageable given its improving sales outlook and a weaker yen.

The proposed settlement will compensate customers for economic losses related to possible safety defects in Toyota vehicles, covering most of the litigation involving unintended acceleration, although it does not cover claims for wrongful death or injuries.

About 16 million Toyota, Lexus and Scion vehicles sold in the United States spanning the model years 1998 to 2010 are covered by the action, according to court filings made public on Wednesday. Thirty nameplates are affected, including the top-selling Toyota Camry midsize sedan and Corolla compact car.

Toyota, the No. 3 automaker in the U.S. market, admitted no fault in proposing the settlement, one of the largest of U.S. mass class-action litigation in the automotive sector.

"This was a difficult decision, especially since reliable scientific evidence and multiple independent evaluations have confirmed the safety of Toyota's electronic throttle control systems," Christopher Reynolds, general counsel for Toyota Motor Sales, USA, said in a statement.

"However, we concluded that turning the page on this legacy legal issue through the positive steps we are taking is in the best interests of the company, our employees, our dealers and, most of all, our customers."

The figure eclipses other settlements in the auto industry including Bridgestone Corp's $240 million payout to Ford Motor Co in 2005 over Ford's massive Firestone tire safety recall in 2001. Ford replaced 13 million Firestone tires, installed mostly as original equipment on the company's popular Explorer SUV, in one of the biggest recalls in U.S. history.

Hagens Berman, the law firm representing Toyota owners who brought the lawsuit in 2010, issued a statement saying that the settlement was valued between $1.2 billion and $1.4 billion. In a memo filed in court, the lawyers said the settlement was "a landmark, if not a record, settlement in automobile defect class action litigation in the United States."

Toyota said it would take a one-time pretax charge of $1.1 billion to cover the costs. The company said it planned to book the charge as operating expenses in its October-December third quarter.

"This is positive, as it removes the factor that was the biggest concern when it came to lawsuits ... Because Toyota's absolute numbers are very big when it comes to profits, it's hardly going to have an impact," said Koji Endo, an autos analyst at Advanced Research in Tokyo.

Toyota may be able to offset costs with a rise in its profits as the yen weakens, he added. Toyota's operating profit increases by 35 billion yen for every one-yen rise in the value of the dollar. The automaker has forecast an operating profit of 1.05 trillion yen ($12.3 billion) for the financial year ending in March 2013.

Toyota shares rose 2.7 percent, compared with a 1 percent rise in Japan's benchmark Nikkei index.

LINGERING EFFECTS

Toyota's recall of more than 10 million vehicles between 2009 and 2011 hurt the company's reputation for reliability and safety.

The effect of the recalls on sales and loyalty remains "difficult to isolate," IHS Automotive analyst Rebecca Lindland said.

"A lot of their growth through the early 2000s were first-time Toyota buyers," she said. "Those are the people that were most vulnerable to saying, 'I'll never own a Toyota again.' The long term effects won't fully be realized until all of the cars that have been impacted by the recall have been retired."

The biggest safety crisis in Toyota's history began to get public notice in August 2009 when an off-duty California Highway Patrol officer Mark Saylor and three members of his family were killed in a Lexus ES 350 that crashed at a high speed.

A separate lawsuit over the death of the Saylor family was settled out of court. A handful of wrongful death and personal injury cases are still pending, but the vast majority of the litigation over unintended acceleration will be finished if the proposed settlement is approved, said a person with knowledge of the remaining lawsuits who wished to remain anonymous.

Within a half year of the Saylor family crash, Toyota President Akio Toyoda and other company executives were questioned in a high-profile U.S. Congressional hearing, and Toyoda made a public apology.

Toyota maintained all along that its electronic throttle control system was not at fault, and reiterated that on Wednesday. It has blamed ill-fitting floor mats and sticky gas pedals for the problem.

A study by U.S. safety regulator the National Highway Traffic Safety Administration and NASA found no link between the reports of unintended acceleration and Toyota's electronic throttle control system.

INCREASINGLY COMMON

The settlement, which must be approved by a California federal judge, includes direct payments to customers as well as the installation of a brake override system in more than 2.7 million vehicles, according to the settlement agreement filed in court.

The terms include a $250 million fund for former Toyota owners who sold vehicles at reduced prices and a separate $250 million fund for owners not eligible for the brake override system.

Attorneys for the plaintiffs are slated to receive up to $200 million in fees and $27 million in costs, according to court documents.

Richard Cupp, a professor at Pepperdine University School of Law, said the settlement was large for the automotive sector but was dwarfed by other litigation involving economic loss claims. State cases against the tobacco industry, for instance, amounted to more than $200 billion.

"That could mean that lawsuits like these could become increasingly common, even where there is not provable physical injury on large scale," Cupp said.

The case is In re: Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices and Products Liability Litigation, U.S. District Court, Central District of California, No. 10-ml-02151. ($1 = 85.6700 Japanese yen)