State Department security chief leaves post over Benghazi






WASHINGTON (Reuters) – The U.S. State Department said on Wednesday its security chief had resigned from his post and three other officials had been relieved of their duties following a scathing official inquiry into the September 11 attack on the U.S. mission in Benghazi.


Eric Boswell has resigned effective immediately as assistant secretary of state for diplomatic security, State Department spokeswoman Victoria Nuland said in a terse statement. A second official, speaking on condition of anonymity, said Boswell had not left the department entirely and remained a career official.






Nuland said that Boswell, and the three other officials, had all been put on administrative leave “pending further action.”


An official panel that investigated the incident concluded that the Benghazi mission was completely unprepared to deal with the attack, which killed U.S. Ambassador Christopher Stevens and three other Americans.


The unclassified version of the report, which was released on Tuesday, cited “leadership and management” deficiencies, poor coordination among officials and “real confusion” in Washington and in the field over who had the authority to make decisions on policy and security concerns.


“The ARB identified the performance of four officials, three in the Bureau of the Diplomatic Security and one in the Bureau of (Near Eastern) Affairs,” Nuland said in her statement, referring to the panel known as an Accountability Review Board.


Secretary of State Hillary Clinton accepted Boswell’s decision to resign effective immediately, the spokeswoman said.


Earlier, a U.S. official who spoke on condition of anonymity said Boswell, one of his deputies, Charlene Lamb, and a third unnamed official has been asked to resign. The Associated Press first reported that three officials had resigned.


PANEL STOPS SHORT OF BLAMING CLINTON


The Benghazi incident appeared likely to tarnish Clinton’s four-year tenure as secretary of state but the report did not fault her specifically and the officials who led the review stopped short of blaming her.


“We did conclude that certain State Department bureau-level senior officials in critical positions of authority and responsibility in Washington demonstrated a lack of leadership and management ability appropriate for senior ranks,” retired Admiral Michael Mullen, one of the leaders of the inquiry, told reporters on Wednesday.


The panel’s chair, retired Ambassador Thomas Pickering, said it had determined that responsibility for security shortcomings in Benghazi belonged at levels lower than Clinton’s office.


“We fixed (responsibility) at the assistant secretary level, which is, in our view, the appropriate place to look for where the decision-making in fact takes place, where – if you like – the rubber hits the road,” Pickering said after closed-door meetings with congressional committees.


The panel’s report and the comments by its two lead authors suggested that Clinton, who accepted responsibility for the incident in a television interview about a month after the Benghazi attack, would not be held personally culpable.


Pickering and Mullen spoke to the media after briefing members of the House of Representatives Foreign Affairs Committee and Senate Foreign Relations Committee behind closed doors on classified elements of their report.


Clinton had been expected to appear at an open hearing on Benghazi on Thursday, but is recuperating after suffering a concussion, dehydration and a stomach bug last week. She will instead be represented by her two top deputies.


Clinton, who intends to step down in January, said in a letter accompanying the review that she would adopt all of its recommendations, which include stepping up security staffing and requesting more money to fortify U.S. facilities.


The National Defense Authorization Act for 2013, which is expected to go to Congress for final approval this week, includes a measure directing the Pentagon to increase the Marine Corps presence at diplomatic facilities by up to 1,000 Marines.


Some Capitol Hill Republicans who had criticized the Obama administration’s handling of the Benghazi attacks said they were impressed by the report.


“It was very thorough,” said Senator Johnny Isakson. Senator John Barrasso said: “It was very, very critical of major failures at the State Department at very high levels.” Both spoke after the closed-door briefing.


Others, however, took a harsher line and called for Clinton to testify as soon as she is able.


“The report makes clear the massive failure of the State Department at all levels, including senior leadership, to take action to protect our government employees abroad,” Representative Mike Rogers, the Republican chairman of the House Intelligence Committee, said in a statement.


Senator Bob Corker, who will be the top Republican on the Senate Foreign Relations Committee when the new Congress is seated early next year, said Clinton should testify about Benghazi before her replacement is confirmed by the Senate.


Republicans have focused much of their firepower on U.S. Ambassador to the United Nations Susan Rice, who appeared on TV talk shows after the attack and suggested it was the result of a spontaneous protest rather than a premeditated attack.


The report concluded that there was no such protest.


Rice, widely seen as President Barack Obama’s top pick to succeed Clinton, withdrew her name from consideration last week.


(Additional reporting by Tabassum Zakaria and Susan Cornwell; Editing by Christopher Wilson)


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Facebook predicted to overtake Google in mobile display ad revenue this year






Shares of Facebook (FB) have begun to rebound since the company’s disastrous initial public offering this past May. After opening at $ 38 per share the company’s stock plummeted into the mid-20s over the summer months and eventually fell to a low of $ 17.55 in early September. Since then, however, Facebook shares have begun to bounce back after the company posted better-than-expected results in the third quarter. While Facebook stock is still down more than 25% on the year, it is rising steadily as analysts and investors become increasingly bullish about the company’s future as a leading advertising platform.


[More from BGR: BlackBerry 10 browser smokes iOS 6 and Windows Phone 8 in comparison test [video]]






According to a new report from eMarketer, Facebook is predicted to surpass Google (GOOG) in mobile display advertising in 2012. Google is expected to generate $ 339 million in mobile ad revenue this year, a significant increase from previous estimates of between $ 45 and $ 100 million. The research firm notes that Facebook is expected to capture an 18.4% share of the mobile display ad market in the U.S. this year, compared to Google’s 17% share, which is down from 23% in 2011.


[More from BGR: New iMac early adopters upset that they can’t run Boot Camp]


“Major ad publishers are strengthening their offerings much faster than previously expected,” said Clark Fredricksen, vice president of communications at eMarketer. “I don’t think anybody thought after the second quarter that Google and Facebook would be in position that they are now in the mobile ad marketplace.”


The company’s mobile ad revenue is expected to more than triple by 2014 when it will reach an estimated $ 1.2 billion. The firm predicts that Facebook and Google will continue to battle for the No.1 spot in the mobile ad market over the next few years. Facebook is expected to increase its lead to 25.2% in 2013, compared to Google’s 19.6% share. Google is estimated to bounce back in 2014, however, with a market leading 23.1% share, ahead of Facebook’s 22.7% share.


Despite the impressive numbers, eMarketer notes that mobile still represents a small slice of the total advertising market. In 2012, only 2.4% of total ad spending in the U.S. is expected to go towards mobile ads, but the market is expected to reach an 11% share by 2016 when it surpasses both radio and print spending.


This article was originally published by BGR


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Thousands mourn U.S.-Mexican singer Jenni Rivera






LOS ANGELES (Reuters) – Thousands of mourners on Wednesday packed a Los Angeles theater to pay their final respects to Mexican-American singer Jenni Rivera more than a week after her death in a plane crash.


Rivera, 43, best known for her work in the Mexican folk Nortena and Banda genres, died after the small jet she was traveling in crashed in northern Mexico on December 9.






Rivera’s family, dressed in white, led the memorial service eulogizing the singer. A bank of white roses was displayed in front of Rivera’s bright red coffin and a brass band performed musical interludes.


More than 6,000 people crowded into the theater about 30 miles north of her childhood home in Long Beach, California. Tickets for the service at the Gibson Amphitheatre sold out within minutes, organizers said.


The daughter of Mexican immigrants, Rivera was called the “Diva de la Banda.” She sold about 15 million albums and earned a slew of Latin Grammy nominations during her 17-year career.


“Jenni made it OK for women to be who they are,” her manager Pete Salgado said at the service. “Jenni also made it OK to be from nothing, with the hopes of being something.”


Rivera had five children, the first at age 15, and was married three times. Her third husband was baseball pitcher Esteban Loaiza. Rivera’s private life influenced her songs, which often referenced living through hardship.


“She’s a fighter and she knows it’s in all of us,” Rivera’s son Michael said between video tributes.


In recent years, Rivera branched out into television, appearing on a reality television show and serving as a judge on the Mexican version of the singing competition “The Voice.” Television broadcaster ABC was reported to be developing a comedy pilot for the singer.


Rivera’s plane crashed in mountains south of Monterrey killing all seven on board.


The singer was to perform in the city of Toluca, 40 miles southwest of Mexico City, in central Mexico after a concert in Monterrey. It is not clear what caused the crash.


(Reporting by Eric Kelsey; Editing by Stacey Joyce)


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Canada wins $28.3 billion case on pension fund payments






OTTAWA (Reuters) – The Canadian government won a far-reaching case at the Supreme Court of Canada on Wednesday when judges ruled Ottawa did not have to return more than C$ 28 billion ($ 28.3 billion) to civil servant union pension plans.


The unions said the federal government had improperly taken the money out of their plans, largely through withdrawal of surpluses. Ottawa said it had followed laws governing the pensions and that, in any case, it would meet its obligation to pay union members the defined benefits they were owed.






In a unanimous 9-0 ruling, the Supreme Court said the unions did not have a legal interest in the pension plan‘s surpluses.


“The plan members‘ interests are limited to their interest in the defined benefits to which they are entitled under the plans,” the court said in its judgment.


The government was not under a fiduciary obligation to the plan members, nor was it unjustly enriched by the amortization and removal of the pension surpluses.”


The judgment was not a surprise, since the unions had lost in two lower courts. A law passed in 2000 gave the government the right to remove surpluses from the pension funds and use the money for whatever purpose it saw fit.


The Canadian Association of Professional Employees said the ruling meant union members would have to pay larger contributions over longer periods of time.


“A portion of the accumulated funds to ensure the continued viability of their pension plans was used for other purposes by their employer,” it said in a statement.


The federal government was not immediately available for comment.


(Reporting by David Ljunggren; Editing by Lisa Von Ahn)


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UBS in $1.5bn Libor rigging fine







Swiss banking giant UBS has agreed to pay $ 1.5bn (£940m) to US, UK and Swiss regulators for attempting to manipulate the Libor inter-bank lending rate.






It becomes the second major bank to be fined over Libor after Barclays was ordered to pay $ 450m to UK and US authorities in the summer.


Regulators worldwide are investigating a number of banks for rigging Libor.


Libor tracks the average rate at which the major international banks based in London lend money to each other.


The bank also admitted to manipulating Euribor and Tibor – the equivalent interest rates set by lenders in the eurozone and in Tokyo.


UBS said it had agreed to pay fines to regulators in three different countries:


It is the second-largest set of fines imposed on a bank to date, after the $ 1.9bn that HSBC agreed to pay US authorities earlier this month to settle allegations of money-laundering.


Continue reading the main story

Start Quote



The potential costs to [the banks] could be eye-watering if clients can prove they are out of pocket as a result of market rigging”



End Quote



The fine “demonstrates the co-ordinated approach regulators are now taking to serious conduct issues that affect jurisdictions internationally,” said Nick Matthews, a forensic accountant at consultancy Kinetic Partners.


The bank has also agreed to admit to committing wire fraud through its Tokyo office in the case of manipulating Libor rates for loans denominated in Japanese yen, among others.


It said it would seek a non-prosecution agreement with the DoJ covering the rest of the bank’s misbehaviour.


The fine is the latest blow for UBS, following the conviction of rogue trader Kweku Adoboli earlier this year for losing £1.4bn for the bank, a £500m settlement with US authorities for helping US citizens evade taxes.


UBS also suffered the worst losses of any bank from US sub-prime mortgages during the financial crisis, totalling 38bn, and necessitating a bailout from the Swiss authorities.


The bank still faces lawsuits in the US for mis-selling mortgage debt to other investors, including a $ 6.4bn claim by the US government-sponsored mortgage finance agencies Freddie Mac and Fannie Mae.


Trader collusion


UBS said the fines – along with other payouts for mis-selling mortgage debts in the US – were likely to result in the bank recording a loss of 2bn-2.5bn Swiss francs in its financial accounts for the last three months of the year, although it still expects to make a profit for the year as a whole.


Continue reading the main story

What is Libor?


  • Libor is the “London Inter-Bank Offered Rate”

  • It tracks the average interest rate at which the big international banks based in London are willing to lend to each other

  • The Libor rate is used to calculate payments under hundreds of trillions of dollars-worth of financial contracts, including mortgages and loans

  • Libor is set every day by the British Bankers’ Association, based on estimates submitted by a panel of a dozen or so banks of their borrowing costs

  • Banks are accused of lying about their real borrowing costs, in order to manipulate Libor for profit, and to make themselves look stronger during the financial crisis


The Swiss lender acknowledged its staff had manipulated the borrowing rates it submitted, which were then used to calculate the Libor rate – a benchmark interest rate that is used to calculate the payments on hundreds of trillions of dollars-worth of financial contracts – in order to make money on their trades.


According to the FSA, UBS had even gone so far as to give its traders formal responsibility for handling the bank’s submissions to the Libor-setting committee at the British Bankers’ Association – creating a direct conflict of interest, as the traders could profit depending on what they submitted.


Significantly, UBS also said its traders had colluded with their counterparts at other banks and brokerages.


The FSA said that UBS’s Tokyo office had made corrupt payments to brokerages – which helped to bring borrowers and lenders together anonymously in the inter-bank lending market – in order to enlist their support in manipulating Libor.


Besides UBS and Barclays, about a dozen other major banks are involved in setting Libor rates each day across a range of currencies, and most of them are understood to be still under investigation.


UBS chairman Axel Weber said: “The authorities have recognized UBS for the thoroughness of our investigation and our exceptional co-operation.”


According to the FSA, it would have fined UBS £200m, but gave the bank a 20% discount because it co-operated. Nonetheless, the £160m fine was still the largest ever imposed by the UK authority.


Barclays – which was the first bank to come clean over the scandal – has previously indicated that its fine of $ 450m would be overshadowed by the fines to be imposed on other culpable banks.


‘Not pretty reading’


Like Barclays, UBS also accepted that management had also told staff to submit inappropriately low estimated borrowing costs for the bank during the financial crisis, in order to give a false impression of the bank’s ability to borrow cheaply and maintain market confidence in the bank.


“We deeply regret this inappropriate and unethical behaviour,” said UBS chief executive Sergio Ermotti.


“No amount of profit is more important than the reputation of this firm, and we are committed to doing business with integrity.”




Former Schroders group managing director Philip Augar told BBC News that disadvantaged customers could take action against banks



The FSA said that the misconduct at UBS was extensive and widespread and involved at least 45 individuals.


“At least 2,000 requests for inappropriate submissions were documented – an unquantifiable number of oral requests, which by their nature would not be documented, were also made,” the FSA said.


“Manipulation was also discussed in internal open chat forums and group emails, and was widely known.”


It was so common that the FSA said every single Libor submission by UBS during the period it examined, from 2005 to 2010, may have been tainted.


“The findings we have set out in our notice today do not make for pretty reading,” said the FSA’s head of enforcement, Tracy McDermott.


Despite this, five separate internal audits by the bank’s compliance department failed to pick up on the misbehaviour.


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Canada serial killer inquiry finds “systemic bias” by police






(Reuters) – Police made critical errors in pursuing Canadian serial killer Robert Pickton partly because of “systemic bias” against his victims, sex trade workers from a rough Vancouver neighborhood, according to the final report from a public inquiry released on Monday.


Commissioner Wally Oppal was asked by the British Columbia government to investigate, in effect, why Pickton was not caught sooner. Women disappeared from the Downtown Eastside neighborhood for more than a decade before the pig farmer’s 2002 arrest.






“The investigations of missing and murdered women were characterized by blatant police failures, and by public indifference,” Oppal said at a press conference in Vancouver that was frequently interrupted by protesters.


Pickton was convicted of six murders, but prosecutors believe he killed many more – 20 other charges were stayed after he received the maximum possible sentence.


Oppal outlined a string of police errors, from failing to take proper reports when women went missing and communicate adequately with families, to ineffective coordination across jurisdictions. He called his more than 1,200-page report, which is based on eight months of hearings, “Forsaken”.


“After reviewing the evidence of the investigations, I have come to the conclusion that there was systemic bias by the police,” he said.


Oppal recommended that the provincial government establish a compensation fund for the children of the victims and consider creating a regional police force for Vancouver, instead of the patchwork of jurisdictions currently in place.


After Oppal’s announcement, B.C. Minister of Justice Shirley Bond wiped away tears as she spoke to victims’ families.


“I want you to know that, however inadequate these words sound, we are sorry for your loss,” she said. “We will work hard to prevent these circumstances from being repeated in our province.”


She announced the appointment of a former lieutenant governor, Steven Point, to serve as the report’s “champion”, guiding implementation. Bond said the government would immediately give new funding to WISH, a drop-in center for women who work in the Downtown Eastside’s sex trade.


POLICE RESPOND


The Vancouver Police Department said in a short statement that it is committed to learning from its mistakes and will study the report.


“We know that nothing can ever truly heal the wounds of grief and loss but if we can, we want to assure the families that the Vancouver Police Department deeply regrets anything we did that may have delayed the eventual solving of these murders,” it said.


Deputy Commissioner Craig Callens, who commands the Royal Canadian Mounted Police in British Columbia, said in a statement that his force will review the report.


Oppal said many individual police officers were diligent, and he commended several by name. But he said that as a system, the authorities failed because of bias against Pickton’s victims, many of whom were poor and addicted to drugs.


“Would the reaction of the police and the public have been any different if the missing women had come from Vancouver’s (more affluent) west side? The answer is obvious,” he said.


Aboriginal women were overrepresented among the victims, and Oppal repeatedly referred to the broader “marginalization” of aboriginal people in Canada.


“There has to be community responsibility for what has taken place,” he said, highlighting poverty and the conditions on the Downtown Eastside. “The social reality is that racism and gender bias are prevalent within Canadian society, and we must do something to eradicate those.”


Victims’ families and activists were on hand for Oppal’s press conference, and he stopped speaking several times as audience members shouted criticism, chanted and played drums.


The provincial government did not offer funding to a number of community organizations that said they needed support to participate in the lengthy and complex inquiry. In protest, other groups boycotted the process.


In November, several organizations, including the B.C. Civil Liberties Association, released their own report, criticizing the inquiry for, among other things, excluding too many aboriginal women, sex trade workers and drug users.


Bond, the justice minister, said she did not regret the decision not to fund those groups, but said she saw them participating in the future. “I think going forward this is room for us to include other voices.” (Reporting by Allison Martell; Editing by Eric Beech)


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Facebook CEO Zuckerberg donating $500M in stock






SAN FRANCISCO (AP) — Facebook CEO Mark Zuckerberg said he is donating nearly $ 500 million in stock to a Silicon Valley charity with the aim of funding health and education issues.


Zuckerberg donated 18 million Facebook shares, valued at $ 498.8 million based on their Tuesday closing price. The beneficiary is the Silicon Valley Community Foundation, a nonprofit that works with donors to allocate their gifts.






This is Zuckerberg’s largest donation to date. He pledged $ 100 million in Facebook stock to Newark, N.J., public schools in 2010, before his company went public earlier this year. Later in 2010, he joined Giving Pledge, an effort led by Microsoft Corp. founder Bill Gates and Berkshire Hathaway Inc. CEO Warren Buffett to get the country’s richest people to donate most of their wealth. His wife, Priscilla Chan, joined with him.


In a Facebook post Tuesday, Zuckerberg, 28, said he’s “proud of the work” done by the foundation that his Newark donation launched, called Startup: Education, which has helped open charter schools, high schools and others.


With the latest contribution, he added, “we will look for areas in education and health to focus on next.” He did not give further details on what plans there may be for funds.


“Mark’s generous gift will change lives and inspire others in Silicon Valley and around the globe to give back and make the world a better place,” said Emmett D. Carson, CEO of the foundation.


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“Best Funeral Ever” premiere delayed after Newtown school shootings






LOS ANGELES (TheWrap.com) – Fans of death-centric reality TV will have to wait a little longer to dig into TLC‘s “Best Funeral Ever.”


TLC has pushed back the premiere of the special to January 6 at 10/9c in light of the school shootings in Newtown, Conn. last week.






“Best Funeral Ever” was initially scheduled to premiere on December 26 at 8/7c.


“Best Funeral Ever” centers around the Golden Gate Funeral Home in Dallas, which specializes in elaborate specialty funerals catering to the deceased’s interest. In the special, a doo-wop singer famous for his rib-sauce jingle receives a barbecue-themed sendoff, while a disabled man who was unable to ride roller coasters in mortal life receives a State Fair-themed funeral.


Since last Friday’s horrific shootings, a number of programs and other entertainment-related events have been moved out of sensitivity. Syfy, for one, decided not to air its scheduled episode of “Haven” on Friday night, because it contained elements of fictionalized school violence.


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House Republicans eye limited fiscal cliff bill






WASHINGTON (Reuters) – With time running short before a Dec. 31 deadline, House of Representatives Speaker John Boehner will begin work on legislation that simply would extend current low income tax rates for all families with incomes below $ 1 million a year, according to an aide.


Negotiations will continue with the White House on a broader tax and spending deal, the Boehner aide said.






Boehner is presenting the plan to rank-and-file Republicans in a closed-door session.


On January 1, income tax increases for most Americans will begin unless Congress acts.


Last July, the Democratic-controlled Senate passed a bill to extend the current low rates for all families with net incomes below $ 250,000 a year. The House Republican proposal, if passed by the House, would require agreement by the Senate or force a round of negotiations on a compromise between the two chambers.


In excerpts of remarks Boehner was delivering to his Republican members Tuesday morning, the speaker complained that “the White House just can’t seem to bring itself to agree to a ‘balanced’ approach” to deficit-reduction in negotiations. At the same time, Boehner said Republicans were “leaving the door wide open for something better” than just the limited extension of current low tax rates for most Americans.


“Current law has tax rates going up on everyone January 1. The question for us is real simple: How do we stop as many of those rate hikes as possible?” Boehner said.


For months, Democrats have been urging House Republicans to pass a bill protecting middle-class taxpayers from a January 1 rate increase.


(Reporting By Richard Cowan; Editing by Doina Chiacu)


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Newtown Fallout: Cerberus Retreats From Guns






While President Barack Obama and other Democratic politicians clear their throats about proposing new gun control laws sometime next year, the marketplace is responding swiftly to the Newtown, Conn., elementary school massacre.


Dick’s Sporting Goods, one of the largest retailers in its industry, said Tuesday it is suspending the sale of certain military-style semiautomatic rifles similar to the one used by the Newtown killer. Fox News reported that Discovery Channel has decided to cancel its popular reality show “American Guns.”






Less visible to consumers, but no less important, Cerberus, a $ 20 billion private-equity firm based in New York, announced overnight that, under pressure from the California teachers’ pension fund, it will sell its controlling stake in the country’s largest guns-and-ammo manufacturer, a conglomerate called Freedom Group. The semiautomatic rifle used to slaughter 26 people at Sandy Hook Elementary School, 20 of them children, was made by Bushmaster Firearms, one of the companies that operates under the Freedom Group umbrella.


The California State Teachers’ Retirement System, which has $ 751 million invested with Cerberus, said it would review its relationship with the private-equity firm “given the tragic events last Friday in Newtown, Conn.” Cerberus then followed with its announcement, saying that unloading Freedom Group “allows us to meet our obligations to the investors whose interests we are entrusted to protect without being drawn into the national debate” on gun control.


Bloomberg TV’s Tom Keene asked me this morning on his “Surveillance” program whether this the beginning of something akin to the divestment campaign aimed at breaking South Africa’s apartheid system. That’s a provocative question. The answer is probably no, and the reasons shed light on the nature of the American gun market.


Gun ownership in the United States is not apartheid. Millions of Americans relish firearms and use them for lawful hunting, shooting sports, and self-defense. To many people, guns represent individualism and self-reliance. The Supreme Court has interpreted the Second Amendment as protecting an individual right to keep a handgun in the home. Forty-nine states allow their citizens to carry guns concealed in public. A federal appeals court recently said that the sole holdout, Illinois, violated the Second Amendment by prohibiting concealed carry.


The $ 2 billion American gun industry is not the South African economy. The gun market historically has been fragmented and made up of relatively small companies. It consolidated in recent years, driven largely by Cerberus buying companies such as Bushmaster (and Remington, Marlin, and Para USA) in hopes of squeezing redundancies from their operations and selling off the roll-up in an IPO. To Cerberus’ frustration, the initial private offering had stalled for reasons having nothing to do with Newtown. (Finding efficiencies and cross-marketing opportunities turned out to be more difficult than the private-equity gurus anticipated.) Now, Cerberus will use the cover of renewed controversy over gun control–and the suddenly shocked sensibilities of the California teachers pension-fund managers (from whom Freedom Group presumably had not been kept secret)–to dump a guns-and-ammo play that wasn’t working out smoothly.


There are personal elements to the move, as well. Stephen Feinberg, who founded Cerberus in 1992, and is an avid hunter and gun enthusiast. His father, Martin Feinberg, lives in Newtown and told Bloomberg News the shooting was “devastating.”


Cerberus’ move and the prospect that the companies within Freedom Group will get sold off individually or in small clumps will return the fractious gun industry to something closer to what it looked like a half-dozen years ago. Smith & Wesson (SWHC) and Sturm Ruger (RGR), the two publicly traded gun makers in the U.S., will stand a little larger in relative terms. Glock, Beretta, and Taurus will continue to import guns from, respectively, Austria, Italy, and Brazil (as well as assemble weapons in their U.S. plants). And overall, gun makers will likely enjoy increased sales over the next six to 12 months, as consumers buy additional pistols and rifles out of fear that their favorites might be more difficult to obtain if Democrats succeed in pushing through new restrictions.


There will be additional post-Newtown reaction from retailers and from Hollywood. Wal-Mart (WMT) is a major gun seller. It accounts for about 13 percent of Freedom Group’s sales, for example. The world’s biggest retail chain will doubtless come under pressure from anti-gun activists to curb its firearms sales, and the image-conscious company may follow its more specialized rival Dick’s.


In the entertainment world, the cable channel TLC has already delayed airing a show called “Best Funeral Ever.” Violent movie trailers might get postponed or edited. The massacre during a showing of The Dark Knight Rises in Aurora (Colo.) in July prompted Warner Bros. to pull the trailer for the forthcoming Gangster Squad, which showed a theater shooting. Later the studio cut the scene entirely.


Whether marketplace behavior will change over the long haul is a different question. Gangster Squad‘s opening was delayed but not cancelled. The film, pitting organized crime killers against police in Depression-era Los Angeles, is now slated to begin in theaters next month, and it will still include plenty of gunplay.


Businessweek.com — Top News





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