WASHINGTON (Reuters) – The United States reversed policy on Wednesday and said it would back launching talks on a treaty to regulate arms sales as long as the talks operated by consensus, a stance critics said gave every nation a veto.

The decision, announced in a statement released by the U.S. State Department, overturns the position of former President George W. Bush’s administration, which had opposed such a treaty on the grounds that national controls were better.

U.S. Secretary of State Hillary Clinton said the United States would support the talks as long as the negotiating forum, the so-called Conference on the Arms Trade Treaty, “operates under the rules of consensus decision-making.”

“Consensus is needed to ensure the widest possible support for the Treaty and to avoid loopholes in the Treaty that can be exploited by those wishing to export arms irresponsibly,” Clinton said in a written statement.

While praising the Obama administration’s decision to overturn the Bush-era policy and to proceed with negotiations to regulate conventional arms sales, some groups criticized the U.S. insistence that decisions on the treaty be unanimous.

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Banks continued to tighten lending standards for businesses and consumers over the past three months, the Federal Reserve’s latest survey of loan officers showed. But a smaller fraction of banks were making it harder to get loans, an encouraging sign the grip of the credit crunch may soon be easing.

About 15% of banks, on net, said they imposed stricter standards on business loans to firms of all sizes, a smaller fraction than those who said the same in July. They cited a reduced tolerance for risk, an uncertain or unfavorable economic outlook or worsening industry-specific problems.

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WASHINGTON — As health care legislation moves toward a crucial airing in the Senate, the White House is facing a growing revolt from some Democrats and analysts who say the bills Congress is considering do not fulfill President Obama’s promise to slow the runaway rise in health care spending.

Mr. Obama has made cost containment a centerpiece of his health reform agenda, and in May he stood up at the White House with industry groups who pledged voluntary efforts to trim the growth of health care spending by 1.5 percent, or $2 trillion, over the next decade.

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WASHINGTON — Top executives at Blackwater Worldwide authorized secret payments of about $1 million to Iraqi officials that were intended to silence their criticism and buy their support after a September 2007 episode in which Blackwater security guards fatally shot 17 Iraqi civilians in Baghdad, according to former company officials.

Blackwater approved the cash payments in December 2007, the officials said, as protests over the deadly shootings in Nisour Square stoked long-simmering anger inside Iraq about reckless practices by the security company’s employees. American and Iraqi investigators had already concluded that the shootings were unjustified, top Iraqi officials were calling for Blackwater’s ouster from the country, and company officials feared that Blackwater might be refused an operating license it would need to retain its contracts with the State Department and private clients, worth hundreds of millions of dollars annually.

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NEW YORK (Reuters) – Two former Bear Stearns hedge fund managers were found not guilty of fraud, a decision that could make government prosecutors less likely to bring criminal charges against Wall Street executives for their role in the financial crisis.

The case — the first major prosecution arising from the meltdown of major U.S. financial institutions — was seen as a litmus test of whether a jury, presented with evidence from emails between money managers and conference calls with investors, would convict individuals for corporate collapses.

Ralph Cioffi, 53, and Matthew Tannin, 48, were acquitted of all charges on the second day of deliberations by a jury in U.S. District Court in Brooklyn, New York. Cioffi and Tannin left the courthouse with their smiling wives and relatives, some of them crying tears of relief.

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The action could set up the Americans — who relatives say were hiking and strayed across the border from Iraq — as potential bargaining chips in Iran’s standoff with the West. The announcement came as Washington and Tehran were maneuvering over a deadlock in negotiations over Iran’s nuclear program.

President Mahmoud Ahmadinejad alleged the three crossed Iran’s border illegally, saying this was something any country would punish. Asked in Istanbul if he thought they were spies, he said:

“I have nothing to say about it. I have no opinion about it. It must be judged by the judiciary, whether they are spies or not. There are some Iranians who have spent many years in prison without doing anything wrong, in American prisons.”

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SEOUL, South Korea — North and South Korean naval vessels exchanged fire in disputed waters off the western coast of the Korean Peninsula on Tuesday, leaving one North Korean vessel engulfed in flames, South Korean officials said.

The two Koreas accused each other of violating territorial waters, provoking the fierce two-minute skirmish. It was the first border fighting in seven years between the countries, which technically remain at war after fighting in the 1950-3 Korean War ended in a truce rather than a permanent peace treaty.

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We have been led to believe that we must make our health care choices only within the current structure of a predatory, for-profit insurance system which makes money not providing health care. We cannot fault the insurance companies for being what they are. But we can fault legislation in which the government incentivizes the perpetuation, indeed the strengthening, of the for-profit health insurance industry, the very source of the problem. When health insurance companies deny care or raise premiums, co-pays and deductibles they are simply trying to make a profit. That is our system.

Clearly, the insurance companies are the problem, not the solution. They are driving up the cost of health care. Because their massive bureaucracy avoids paying bills so effectively, they force hospitals and doctors to hire their own bureaucracy to fight the insurance companies to avoid getting stuck with an unfair share of the bills. The result is that since 1970, the number of physicians has increased by less than 200% while the number of administrators has increased by 3000%. It is no wonder that 31 cents of every health care dollar goes to administrative costs, not toward providing care. Even those with insurance are at risk. The single biggest cause of bankruptcies in the U.S. is health insurance policies that do not cover you when you get sick.

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To hear President Obama tell it, he’s been busy creating jobs since taking office. The $787 billion stimulus package, he said last winter, would “save or create 3.5 million jobs.” The White House is touting reports from recipients of stimulus funds asserting that they have created or saved 640,000 jobs so far.

Yet the national unemployment rate has now hit 10.2 percent, helping explain why Republicans won the governors’ races in Virginia and New Jersey last week, just a year after the party’s 2008 drubbing. And Obama declared Friday that more action is needed.

“History tells us that job growth always lags behind economic growth, which is why we have to continue to pursue measures that will create new jobs,” he said. “And I can promise you that I won’t let up until the Americans who want to find work can find work.”

It was a strong vow, but it raises a question: Why has a White House that talks so much about boosting employment steered clear of the most direct strategy that could keep Americans on the job?

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“The best way to avoid war is preparing for it,” Chavez told military officers standing at attention during his weekly television and radio program.

Repeating an often-used military adage, he added, “If you want peace, prepare for war.”

Chavez told his supporters that President Barack Obama holds sway over Colombia’s government, and he cautioned the U.S. leader against using his allies in Bogota to mount a military offensive against Venezuela.

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Article Photo – USA Today