Stocks fall as lawmakers doubt budget deal

Stocks are down Wall Street amid concern that lawmakers will fail to reach a deal to stop the U.S. going over the so-called fiscal cliff.
The Dow Jones industrial average is down 32 points at 13,158. The Standard & Poor's 500 index is off four points at 1,426. The Nasdaq composite is down nine points at 3,012.
Sen. Joe Lieberman said Sunday that it "It's the first time that I feel it's more likely we'll go over the cliff than not," following the collapse late Thursday of House Speaker John Boehner's plan to allow tax rates to rise on million-dollar-plus incomes. Wyoming Sen. Jon Barrasso, a member of the Republican leadership, predicted the new year would come without an agreement.

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New Jersey pension fund sues NYSE Euronext on ICE deal

 A pension fund that holds shares of NYSE Euronext has sued the exchange operator over its proposed $8.2 billion sale to IntercontinentalExchange Inc , saying the deal undervalues the company's stock.
The New Jersey Carpenters Pension Fund late on Friday filed a complaint in New York State Supreme Court in Manhattan contending that NYSE Euronext breached its duty to maximize returns for shareholders. The lawsuit seeks class action status on behalf of other NYSE Euronext shareholders and aims to block the sale.
It is the second such lawsuit filed against the exchange operator since the deal was announced on Thursday. An individual shareholder, Samuel Cohen, filed a proposed class action in Delaware Chancery Court on Friday that also seeks to prevent the buyout from going forward.
Under the deal, NYSE Euronext, which operates the New York Stock Exchange, will sell itself to Atlanta-based ICE. The stock-and-cash deal is expected to close in the second half of 2013.
At $33.12 per share, ICE's offer represents a 28 percent premium to NYSE Euronext's closing price last Wednesday.
In court papers, the New Jersey pension fund said the deal was based on a "hopelessly flawed process" that would favour NYSE Euronext Chief Executive Duncan Niederauer and several members of its board of directors.
The sale was "designed to ensure the sale of NYSE Euronext to ICE on terms preferential to ICE and designed to benefit NYSE Euronext's insiders," the pension fund said.
A spokesman for NYSE Euronext declined to comment. A spokeswoman for ICE, which is also named as a defendant in the lawsuit, did not return a call seeking comment.
The lawsuit also names as defendants Niederauer, NYSE Euronext Chairman Jan-Michiel Hessels, and other executives and board members.
The buyout is expected to help ICE compete in derivatives trading against U.S.-based CME Group, owner of the Chicago Board of Trade. Derivatives trading is highly profitable for the exchanges, and new rules next year will dramatically expand the demand for clearing over-the-counter contracts.
NYSE Euronext's stock market businesses are less valuable to ICE, and the company said it will try to spin off the Euronext European stock market businesses in a public offering, generating speculation it may also have little interest in the NYSE trading floor.
Profits from stock trading have been significantly eroded by new technology and the rise of other places for investors to trade, including venues known as "dark pools."
The cases are New Jersey Carpenters Pension Fund et al. v. NYSE Euronext et al., Supreme Court of the State of New York, No. 654496/2012, and Cohen v. NYSE Euronext et al, Delaware Court of Chancery, No. 8136.

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U.S. may expand mortgage refinance program: WSJ

The U.S. government is considering expanding its mortgage refinancing program to include borrowers whose mortgages are not backed by Fannie Mae and Freddie Mac , the Wall Street Journal reported, citing people familiar with the discussions. (http://link.reuters.com/mej84t)
The refinancing program now being considered also seeks to include "underwater" borrowers who owe more than their homes are worth, the Journal said.
The proposal would also transfer potentially riskier loans held by private investors to the government-sponsored mortgage entities Fannie Mae and Freddie Mac, the paper said.
Such a move would require congressional authorization to temporarily change the charters of Fannie Mae and Freddie Mac, according to the Journal.
About 22 percent of all homes with a mortgage, or around 10.8 million homes, down from 12.1 million last year, were worth less than the outstanding balance at the end of June, the Journal said, citing data from CoreLogic.
Under the proposal, Fannie and Freddie would be allowed to charge higher rates to borrowers in order to compensate for the risk of guaranteeing refinanced loans that are underwater and more likely to result in default.
Officials at the U.S. Treasury could not be reached for comment by Reuters outside of regular U.S. business hours.
Combined with Fannie Mae and Freddie Mac, which buy loans and repackage them as securities for investors, Washington's footprint in the market has grown to account for nearly nine of every 10 mortgages.

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TEXT-S&P summary: Chartis Singapore Insurance Pte. Ltd.

Dec 26 -
===============================================================================
Summary analysis -- Chartis Singapore Insurance Pte. Ltd. --------- 26-Dec-2012
===============================================================================
CREDIT RATING: Country: Singapore
Local currency A/Stable/--
===============================================================================
Credit Rating History:
Local currency Foreign currency
28-Feb-2011 A/-- --/--
22-Dec-2010 A+/-- --/--
===============================================================================
Rationale
The ratings on Chartis Singapore Insurance Pte. Ltd. reflect the company's
core status to the Chartis group (we rate the Chartis group's core operating
companies A/Stable/--). Chartis Singapore is a regional hub for the group's
Asia-Pacific (excluding Japan) operations and the company's operations in
Singapore are substantial and profitable. Chartis Singapore has strong
integration with, and support from, the group. Chartis Singapore's exposure to
increased competition and softening rates in its domestic market partly
offsets these strengths.
We view Chartis Singapore's stand-alone credit profile as strong, reflecting
the company's strong business position in the local non-life insurance market
(with a 13% share) and conservative investment portfolio.
Chartis Singapore is an indirect subsidiary of Chartis Inc., which is
ultimately owned by American International Group Inc. (AIG; A-/Negative/A-2).
Chartis Singapore benefits from access to its group's resources, expertise,
and extensive reinsurance support. As part of the Chartis group's efforts to
simplify its legal and organizational structure, Chartis has established three
geographic segments, of which one covers the Asia-Pacific region. The majority
of branch operations in Asia-Pacific have converted to locally domiciled
subsidiaries, with regional oversight by Chartis Singapore.
We view Chartis Singapore's capitalization as strong. Moreover the Chartis
group provides strong reinsurance support to the company. As part of the
group's capital management strategy, risk from volatile lines of business,
such as energy, financial lines, and commercial property, are ceded to the
Chartis group. The local entity retains the risk on less volatile business
lines, such as accident and health, and motor. Chartis Singapore's
conservative investment portfolio supports its capital position. About 94% of
invested assets are in cash, deposits, and bonds.
Continued softening in premium rates and continued pursuit of multinational
business by competitors have added to the challenges for Chartis Singapore. In
addition, the increasing cost of vehicle ownership has dampened growth
opportunities in motor insurance, where the company has a significant market
share. Chartis Singapore's operating performance has been good in the past few
years, although its underwriting performance has moderated somewhat in
2011-2012. We expect Chartis Singapore's remediation efforts on unprofitable
business and continued efforts to leverage its distribution capabilities to
improve its operating performance.
Enterprise risk management
In our view, Chartis Singapore's risk controls over factors such as insurance,
investment, and operations are adequate relative to the nature of the
company's overall risk as well as local standards.
Our view of Chartis Singapore's enterprise risk management reflects our
assessment of the risk characteristics of its ultimate parent, AIG.
Outlook
The stable outlook on Chartis Singapore is in line with the outlook on the
Chartis group.
The outlook on the Chartis group in turn reflects the stable outlook on its
ultimate parent, AIG. We view the Chartis group as strategically important to
AIG. We could lower our ratings on AIG and Chartis if the group's performance
were to fall short of our expectations, particularly with regard to earnings,
capitalization (currently strong), liquidity, or leverage. On the other hand,
we could raise the ratings if the consolidated group were to improve its
operating performance, particularly at the Chartis level, to above the
industry average while continuing to improve AIG's risk profile.
The ratings on Chartis Singapore are at the same level as that on the Chartis
group. If we upgrade Chartis group, we could upgrade Chartis Singapore if our
view of Chartis Singapore's status within the group remains unchanged.
We could raise Chartis Singapore's stand-alone credit profile if the company
improves its business position while maintaining its financial profile. We
could lower the stand-alone credit profile if the company's operating
performance deteriorates, thereby affecting its capital position.
Related Criteria And Research
-- Refined Methodology And Assumptions For Analyzing Insurer Capital
Adequacy Using The Risk-Based Insurance Capital Model, June 7, 2010
-- Interactive Ratings Methodology, April 22, 2009
-- General: Group Methodology, April 22, 2009
-- Summary Of Standard & Poor's Enterprise Risk Management Evaluation
Process For Insurers, Nov. 26, 2007

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AP source: Swisher, Tribe reach $56M, 4-year deal

 The Indians' pitch to bring Nick Swisher "home" worked.
Two people familiar with the negotiations said Swisher has agreed to a $56 million, four-year contract with the Indians, who used the free agent outfielder's deep Ohio connections to convince him to join the club. The people spoke on condition of anonymity Sunday because Swisher must take a physical before the deal can be finalized. The Indians are expected to announce Swisher's signing after Christmas, one of the people said.
The Indians will not comment until Swisher completes his physical.
"Wow! What a crazy few weeks," Swisher said on Twitter. "Hey Cleveland! Are you ready? Because I'm coming home!"
Swisher's deal includes a $14 million option for 2017 that could become guaranteed based on plate appearances the previous year.
Indians second baseman Jason Kipnis was excited about the club's newest addition.
"Welcome to the Tribe (at)nickswisher, pumped to get ya," Kipnis tweeted.
The 32-year-old Swisher spent the last four seasons with the New York Yankees, taking advantage of the short right-field porch at Yankee Stadium. A switch-hitter, Swisher hit .272 this season with 24 homers and 93 RBIs.
Swisher will fill an outfield hole for the Indians, who traded Shin-Soo Choo to Cincinnati. Swisher will play right, with recently acquired Drew Stubbs likely taking over in center with Michael Brantley shifting from center to left field.
Swisher, who was born in Columbus and played at Ohio State, visited the Indians earlier in the week. The club used Swisher's ties with the Buckeyes to convince him to join a team that won just 68 games last season following an historic collapse in August.
During his tour of Progressive Field, Swisher watched a video presentation on the stadium's giant scoreboard that featured messages from current Ohio State football coach Urban Meyer and basketball coach Thad Matta, who urged him to sign with the Indians. Later, Swisher and his wife, actress JoAnna Garcia, had lunch with former Ohio State coach Jim Tressel, who was at the school when Swisher played there.
Swisher's signing is a significant win for the Indians, who have been in the market for an outfielder throughout the offseason. During the winter meetings in Nashville, Tenn., they offered Shane Victorino a $44 million, four-year contract before he agreed to a $39 million, three-year deal with Boston.
Seattle, Texas and Boston were believed to be interested in Swisher, an All-Star in 2010 who was regarded as the second-best free agent hitter this offseason behind Josh Hamilton. The Indians have been desperate to add power and Swisher, who has hit at least 22 homers in each of the past seven seasons, will bolster the middle of new manager Terry Francona's lineup.
Swisher's value may have been damaged by several poor postseasons with the Yankees. He batted .162 in the postseason for New York with seven RBIs and 38 strikeouts in 130 at-bats.
Swisher spent four seasons with Oakland and one with the Chicago White Sox before joining the Yankees.
The Indians will lose their second-round pick in next year's amateur draft as compensation for signing Swisher, and the Yankees will get an extra selection following the first round.
It's been a busy offseason for Indians general manager Chris Antonetti, who is trying to fix a team that has lost at least 93 games in three of the past four seasons.
Antonetti fired manager Manny Acta and replaced him with Francona, the former Boston manager who has spent the past few weeks meeting with his new players. Antonetti also signed free agent first baseman Mark Reynolds and was part of a three-team, nine-player deal that sent Choo to the Reds for Stubbs and brought Cleveland prized pitching prospect Trevor Bauer from Arizona.
The signing of Swisher will take some pressure of Antonetti, who has been criticized by fans for several moves in recent years.
His agreement was first reported by the New York Daily News.
Now that they've landed Swisher, the Indians are expected to focus on improving their starting pitching. The club agreed to terms with left-hander Scott Kazmir to a minor league deal this week, pending a physical. The Indians still need to add a designated hitter and there remains interest in Travis Hafner, who was limited to just 66 games last season because of injuries and remains an unsigned free agent.

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Baseball: Indians sign Swisher to four-year, $56 million deal

 Free agent outfielder Nick Swisher has agreed to a four-year, $56 million contract with the Cleveland Indians, Major League Baseball's website said on Sunday.
The deal, which is pending a physical, makes the 32-year-old Swisher the highest paid free agent ever signed by the Indians, who are trying to recover from a 94-loss season in 2012.
Swisher, who spent the past four seasons with the New York Yankees, hit .272 with 93 runs batted in and 24 home runs while playing in 148 games last season.
"Hey Cleveland! Are you ready? Because I'm coming home!" Swisher, an Ohio native, wrote on his Twitter account.
Cleveland had the second worst record in the American League last season at 68-94 and hired former Red Sox skipper Terry Francona to manage the club and signed slugger Mark Reynolds to play first base earlier this postseason.

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NFL: Bengals book playoff spot with win over Steelers

 Josh Brown booted a 43-yard field goal with four seconds left to play to earn the Cincinnati Bengals a 13-10 win over the Pittsburgh Steelers and a ticket to the National Football League playoffs on Sunday.
The victory was the Bengals' (9-6) first over their bitter AFC North rivals in six meetings and left a capacity crowd at Heinz Field stunned with the loss that eliminated the Steelers (7-8) from post-season contention.
As is typical when the Steelers and Bengals clash, the meeting was a bruising defensive battle, the Cincinnati defense accounting for the Bengals' only touchdown when Leon Hall intercepted Ben Roethlisberger in the opening quarter and returned it 17 yards for the score.
Roethlisberger connected with Antonio Brown on a 60-yard touchdown in the third quarter to get Pittsburgh back into the contest but made a fatal mistake with 14 seconds to play, throwing his second interception that was returned to the Steelers 46 to set up Brown's game-winning kick.

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