Settlement Expected With Banks Over Home Loans

Banking regulators are close to a $10 billion settlement with 14 banks that would end the government’s efforts to hold lenders responsible for foreclosure abuses like faulty paperwork and excessive fees that may have led to evictions, according to people with knowledge of the discussions.

Under the settlement, a significant amount of the money, $3.75 billion, would go to people who have already lost their homes, making it potentially more generous to former homeowners than a broad-reaching pact in February between state attorneys general and five large banks. That set aside $1.5 billion in cash relief for Americans.

Most of the relief in both agreements is meant for people who are struggling to stay in their homes and need the banks to reduce their payments or lower the amount of principal they owe.

The $10 billion pact would be the latest in a series of settlements that regulators and law enforcement officials have reached with banks to hold them accountable for their role in the 2008 financial crisis that sent the housing market into the deepest slump since the Great Depression. As of early 2012, four million Americans had been foreclosed upon since the beginning of 2007, and a huge amount of abandoned homes swamped many states, including California, Florida and Arizona.

Federal agencies like the Securities and Exchange Commission and the Justice Department are continuing to pursue the banks for their packaging and sale of troubled mortgage securities that imploded during the financial crisis.

Housing advocates were largely unaware of the latest rounds of secret talks, which have been occurring for roughly a month. But some have criticized the government for not dealing more harshly with bankers in light of their lax standards for making loans and packaging them as investments, as well as their problems with modifying troubled loans and processing foreclosures.

A deal could be reached by the end of the week between the 14 banks and the nation’s top banking regulators, led by the Office of the Comptroller of the Currency, four people with knowledge of the negotiations said. It was unclear how many current and former homeowners would receive money or when it would be distributed.

Told on Sunday night of the imminent settlement, Lynn Drysdale, a lawyer at Jacksonville Area Legal Aid and a former co-chairwoman of the National Association of Consumer Advocates, said: “It’s certainly a victory for consumers and could help entire neighborhoods. But the devil, as they say, is in the details, and for those people who have had to totally uproot their lives because of eviction it may still not be enough.”

In recent weeks within the upper echelons of the comptroller’s office, pressure was mounting to negotiate a banner settlement with the banks, according to people with knowledge of the matter. The reason was that some within the agency had started to realize that a mandatory review of millions of bank loans was not yielding meaningful examples of the banks’ wrongfully evicting homeowners who were current on their payments or making partial payments, according to the people.

Representative of banking regulators did not return calls for comment on Sunday.

The biggest action against the banks for foreclosure-related abuses has been the $26 billion settlement between the five largest mortgage servicers and the state attorneys general, Justice Department and the Department of Housing and Urban Development after allegations arose in 2010 that bank employees were churning daily through hundreds of documents used in foreclosure proceedings without properly reviewing them for accuracy.

The same banks in that settlement — JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and Ally Financial — are included in the current negotiations.

Under the terms of the settlement being negotiated, $6 billion would come from banks to be used for relief for homeowners, including reducing their principal, helping them refinance and donating abandoned homes, the people said.

The proposed settlement would also halt a separate sweeping review of more than four million loan files that the comptroller’s office and the Federal Reserve required the banks undertake as part of a consent order in April 2011.

Under the terms of the order, the 14 banks had to hire independent consultants to pore through the loan records to determine whether the banks illegally charged fees, forced homeowners to take out costly insurance or miscalculated loan payment amounts. Consultants initially estimated that each loan would take about eight hours, at a cost of up to $250 an hour, to go through.

The costs of the reviews have ballooned, though, according to people with knowledge of the reviews, in part because each loan file is taking up to 20 hours to review. Since its inception, the reviews have cost the banks about $1.5 billion, according to those people.

Pressure to reach a settlement with the banks has been building, particularly within the Office of the Comptroller of the Currency, amid widespread frustration that the banks’ mandatory review of loan files was arduous and expensive, and would not yield promised relief to homeowners, according to five former and current banking regulators.

In private meetings with top bank executives, these people said, regulators have admitted that the reviews had gone awry. At one point this month, an official from the comptroller’s office said the agency had “miscalculated” the scope and requirements of the reviews, according to the people with knowledge of the negotiations.

When the settlement discussions heated up this month, some banking executives said they felt they would be vindicated by the regulators. These executives said that they had raised objections to the reviews early on, but those concerns were largely dismissed by regulatory officials, according to the people with knowledge of the negotiations.

Instead, officials from the comptroller’s office, these people said, have used the loan reviews as a negotiating tool, telling banks that they can either sign on to a large settlement or be forced to pay billions over several more years until the consultants finish the reviews.

When regulators approached the banks to broach a settlement this month, they met first with Wells Fargo and proposed that the banks pay $15 billion, according to the people familiar with the discussions. After negotiations, though, the regulators agreed to $10 billion.

All of the 14 banks are expected to sign on.

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To Save Wildlife, and Tourism, Kenyans Take Up Arms

ARCHER’S POST, Kenya — Julius Lokinyi was one of the most notorious poachers in this part of Kenya, accused of single-handedly killing as many as 100 elephants and selling the tusks by the side of the road in the dead of night, pumping vast amounts of ivory into a shadowy global underground trade.

But after being hounded, shamed, browbeaten and finally persuaded by his elders, he recently made a remarkable transformation. Elephants, he has come to believe, are actually worth more alive than dead, because of the tourists they attract. So Mr. Lokinyi stopped poaching and joined a grass-roots squad of rangers — essentially a conservation militia — to protect the wildlife he once slaughtered.

Nowadays he gets up at dawn, slurps down a cup of sugary tea, tightens his combat boots and marches off with other villagers, some who had never picked up a gun before and are little more than volunteers, to fight poachers.

“We got to protect the elephants,” said Mr. Lokinyi, whose hooded eyes now glow with the zeal of a convert.

From Tanzania to Cameroon, tens of thousands of elephants are being poached each year, more than at any time in decades, because of Asia’s soaring demand for ivory. Nothing seems to be stopping it, including deploying national armies, and the bullet-riddled carcasses keep stacking up. Scientists say that at this rate, African elephants could soon go the way of the wild American bison.

But in this stretch of northern Kenya, destitute villagers have seized upon an unconventional solution that, if replicated elsewhere, could be the key to saving thousands of elephants across Africa, conservationists say. In a growing number of communities here, people are so eager, even desperate, to protect their wildlife that civilians with no military experience are banding together, grabbing shotguns and G3 assault rifles and risking their lives to confront heavily armed poaching gangs.

It is essentially a militarized neighborhood watch, with loping, 6-foot-6 former herdsmen acting as the block captains, and the block being miles and miles of zebra-studded bush. These citizen-rangers are not doing this out of altruism or some undying love for pachyderms. They do it because in Kenya, perhaps more than just about anywhere else, wildlife means tourists, and tourists mean dollars — a lot of dollars.

It is not unusual here for a floppy-hatted visitor to drop $700 a night to sleep in a tent and absorb the sights, sounds and musky smells of wondrous game. Much of that money is contractually bound to go directly to impoverished local communities, which use it for everything from pumping water to college scholarships, giving them a clear financial stake in preserving wildlife. The safari business is a pillar of the Kenyan economy, generating more than a billion dollars a year and nearly 500,000 jobs: cooks, cleaners, bead-stringers, safari guides, bush pilots, even accountants to tally the proceeds.

Surprisingly, many jobs in the safari industry can pay as much as poaching. Though the ivory trade may seem lucrative, it is often like the Somali pirate business model, with the entry-level hijacker getting just a minuscule cut of the million-dollar ransoms. While a pound of ivory can fetch $1,000 on the streets of Beijing, Mr. Lokinyi, despite his lengthy poaching résumé, was broke, making it easier to lure him out of the business.

Villagers are also turning against poachers because the illegal wildlife trade fuels crime, corruption, instability and intercommunal fighting. Here in northern Kenya, poachers are diversifying into stealing livestock, printing counterfeit money and sometimes holding up tourists. Some are even buying assault rifles used in ethnic conflicts.

The conservation militias are often the only security forces around, so they have become de facto 911 squads, rushing off to all sorts of emergencies in areas too remote for the police to quickly gain access to and often getting into shootouts with poachers and bandits.

“This isn’t just about animals,” said Paul Elkan, a director at the Wildlife Conservation Society, who is trying to set up community ranger squads in South Sudan modeled on the Kenyan template. “It’s about security, conflict reconciliation, even nation building.”

The rangers tend to be hardened and uneducated, drawn from different ethnic groups and the surplus of unemployed youth. Gabriel Lesoipa was a goat herder; Joseph Lopeiyok, a cattle rustler; John Pameri won his coveted spot because he was fast — at the time he was selected, the first entry requirement was a grueling 11-mile race.

Many are considered warriors in their communities, experts in so-called bushcraft from years of grazing cattle and goats across the thorny savanna — and defending them against armed raiders. They can follow faint footprints across long, thirsty distances and instantly intuit when someone has trespassed on their land.

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Michigan State edges TCU 17-16 in BWW Bowl

TEMPE, Ariz. (AP) — Michigan State labored on offense throughout the first half, unable to get anything going on the ground, in the air, anywhere.

For a team that had lost five games by a combined 13 points during the regular season, it was starting to feel familiar.

The Spartans changed their luck by turning to brutally effective running back Le'Veon Bell in the second half, setting up Dan Conroy for another game-winning kick in a bowl game.

Bell ran for 145 yards and a fourth-quarter touchdown, Conroy kicked a 47-yard field goal with 1:01 left and Michigan State rallied to beat Texas Christian 17-16 in the Buffalo Wild Wings Bowl on Saturday night.

"With so many close games and losing like we did during the season, to have one go our way was definitely sweet," Conroy said.

It wasn't always pretty for the Spartans.

Michigan State (7-6) managed 76 yards of offense during the first two quarters as TCU bottled up Bell.

The 237-pound junior started to wear down the Horned Frogs in the second half, grinding out 107 of his yards on a 32-carry night.

Behind Bell, the Spartans went on the longest drive in their bowl history in the third quarter, marching 90 yards to set up freshman Connor Cook's 15-yard touchdown pass to Aaron Burbridge.

Michigan State then recovered a muffed punt by TCU's Skye Dawson at the 4-yard line midway through the fourth and Bell scored two plays later by racing around left end for a 14-13 lead.

TCU (7-6) still had a little life after blowing a 13-point halftime lead, moving just far enough to set up Jaden Oberkrom for the longest field goal in the bowl's history, a 53-yarder that put the Horned Frogs up 16-14 with 2:42 left.

They just left Michigan State too much time.

Starting at their own 25-yard line, the Spartans moved 45 yards in eight plays, setting up Conroy for his second game-winner in a bowl after beating Georgia with a 28-yarder in the third overtime of the 2012 Outback Bowl.

Michigan State's defense held after that, sending the Spartans to their second straight bowl win after three consecutive losses.

"There was no doubt in my mind that after so many losses in similar fashion that we were going to come out on top in this one," Spartans linebacker Max Bullough said.

The Horned Frogs shut down Michigan State's offense in the first half and did just enough when they had the ball to put together three scoring drives.

In the second half, TCU couldn't get anything going against the Spartans' defense — 84 total yards — and its defense gave up the long scoring drive in the third quarter, along with the game-winner in the fourth.

Trevone Boykin threw for 201 yards and an interception on 13-of-29 passing for the Horned Frogs.

"A little bit empty feeling inside because we felt like we left a lot on the field," TCU coach Gary Patterson said.

TCU and Michigan State came to the desert with an awful lot of similarities.

The Horned Frogs opened their first season in the Big 12 with four straight wins before losing four of their final six games. Michigan State started 4-2, then lost four of six down the stretch.

Michigan State had the nation's fourth-best defense and was 10th in scoring defense during the regular season. TCU was 18th in total defense and 10th against the run.

Michigan State quarterback Andrew Maxwell was up-and-down in his first season as Kirk Cousins' replacement, throwing 13 touchdown passes and nine interceptions. Boykin took over after four games for Casey Pachall, who was suspended and later left the team, and threw for 15 touchdowns and nine interceptions.

The biggest difference between the teams was Bell.

He ranked third nationally with 137.3 yards rushing per game and had 1,648 on the season, second-most in Michigan State history and 242 fewer than TCU had as a team.

Early on, the Horned Frogs gave him nowhere to go.

Filling holes inside and stringing plays out toward the sidelines, TCU stuffed the bruising Bell on nearly every touch, holding him to 38 yards on 11 carries in the first half.

Of course, it didn't seem to matter what Michigan State did. The Spartans had 29 yards on 12 plays in the first quarter and weren't a whole lot better in the second, with Maxwell throwing two near-interceptions on consecutive passes and an ill-advised trick play that probably should have resulted in a turnover, too.

The Spartans still seemed to be stuck in the ruts in the third quarter before grinding out a 14-play scoring drive led by Cook, who replaced Maxwell for the second time in the game. They had their biggest play on a floating pass from Bell to fullback TyQuan Hammock (29 yards), then Cook threw his first career touchdown pass, a 15-yarder to Burbridge on a crossing route that cut TCU's lead to 13-7.

"I thought Connor did a good job on the 90-yard drive, gave us a little momentum," Spartans coach Mark Dantonio said.

TCU didn't exactly have its way with Michigan State's defense in the first half and missed some chances to build a bigger lead.

The Frogs started gashing the Spartans for decent-sized chunks with their option midway through the first quarter, setting up Matthew Tucker's 4-yard touchdown on an end-around.

Boykin had an impressive off-the-back-foot throw to freshman Kolby Listenbee for 59 yards on the last play of the first quarter and nearly had a 19-yard touchdown pass to open the second, but LaDarius Brown was bumped and dropped the ball in the end zone. Oberkrom followed with a 47-yard field goal and added another from 31 yards after Boykin hit Josh Boyce on a 61-yard pass to put TCU up 13-0 at halftime.

The Frogs couldn't keep it up in the second half.

With Michigan State clogging the running lanes and chasing Boykin around, TCU had 30 yards of offense in the third quarter and continued to struggle in the fourth. The Horned Frogs did manage the short scoring drive to set up Oberkrom's late field goal, but ended up going backward on their final drive after Conroy's kick.

"What I thought happened in the third quarter was Michigan State dialed up the heat and we didn't have an answer," Patterson said.

Michigan State did — for one of the few times this season.

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Elwood V. Jensen, Pioneer in Breast Cancer Treatment, Dies at 92

Tony Jones/Cincinnati Enquirer, via Associated Press

Elwood V. Jensen in 2004.

Elwood V. Jensen, a medical researcher whose studies of steroid hormones led to new treatments for breast cancer that have been credited with saving or extending hundreds of thousands of lives, died on Dec. 16 in Cincinnati. He was 92.

The cause was complications of pneumonia, his son, Thomas Jensen, said.

In 2004 Dr. Jensen received the Albert Lasker Basic Medical Research Award, one of the most respected science prizes in the world.

When Dr. Jensen started his research at the University of Chicago in the 1950s, steroid hormones, which alter the functioning of cells, were thought to interact with cells through a series of chemical reactions involving enzymes.

However, Dr. Jensen used radioactive tracers to show that steroid hormones actually affect cells by binding to a specific receptor protein inside them. He first focused on the steroid hormone estrogen.

By 1968, Dr. Jensen had developed a test for the presence of estrogen receptors in breast cancer cells. He later concluded that such receptors were present in about a third of those cells.

Breast cancers that are estrogen positive, meaning they have receptors for the hormone, can be treated with medications like Tamoxifen or with other methods of inhibiting estrogen in a patient’s system, like removal of the ovaries. Women with receptor-rich breast cancers often go into remission when estrogen is blocked or removed.

By the mid-1980s, a test developed by Dr. Jensen and a colleague at the University of Chicago, Dr. Geoffrey Greene, could be used to determine the extent of estrogen receptors in breast and other cancers. That test became a standard part of care for breast cancer patients.

Scientists like Dr. Pierre Chambon and Dr. Ronald M. Evans, who shared the 2004 Lasker prize with Dr. Jensen, went on to show that many types of receptors exist. The receptors are crucial components of the cell’s control system and transmit signals in an array of vital functions, from the development of organs in the womb to the control of fat cells and the regulation of cholesterol.

Dr. Jensen’s work also led to the development of drugs that can enhance or inhibit the effects of hormones. Such drugs are used to treat prostate and other cancers.

Elwood Vernon Jensen was born in Fargo, N.D., on Jan. 13, 1920, to Eli and Vera Morris Jensen. He majored in chemistry at what was then Wittenberg College in Springfield, Ohio, and had begun graduate training in organic chemistry at the University of Chicago when World War II began.

Dr. Jensen wanted to join the Army Air Forces, but his poor vision kept him from becoming a pilot. During the war he synthesized poison gases at the University of Chicago, exposure to which twice put him in the hospital. His work on toxic chemicals, he said, inspired him to pursue biology and medicine.

Dr. Jensen studied steroid hormone chemistry at the Swiss Federal Institute of Technology on a Guggenheim Fellowship after the war. While there, he climbed the Matterhorn, one of the highest peaks in the Alps, even though he had no mountaineering experience. He often equated his successful research to the novel approach taken by Edward Whymper, the first mountaineer to reach the Matterhorn’s summit. Mr. Whymper went against conventional wisdom and scaled the mountain’s Swiss face, after twice failing to reach the summit on the Italian side.

Dr. Jensen joined the University of Chicago as an assistant professor of surgery in 1947, working closely with the Nobel laureate Charles Huggins. He became an original member of the research team at the Ben May Laboratory for Cancer Research (now the Ben May Department for Cancer Research) in 1951, and became the director after Dr. Huggins stepped down.

He came to work at the University of Cincinnati in 2002, and continued to do research there until last year.

His first wife, the former Mary Collette, died in 1982. In addition to his son, Dr. Jensen is survived by his second wife, the former Hiltrud Herborg; a daughter, Karen C. Jensen; a sister, Margaret Brennan; two grandchildren; and three great-grandchildren.

Dr. Jensen’s wife was found to have breast cancer in 2005. She had the tumor removed, he said in an interview, but tested positive for the estrogen receptor and was successfully treated with a medication that prevents estrogen synthesis.

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Senate Leaders Racing to Beat Fiscal Deadline

WASHINGTON — Senate leaders and their aides spent Saturday searching for a formula to extend tax cuts for most Americans that could win bipartisan support in the Senate and final approval in the fractious House by the new year, hoping to prevent large tax increases and budget cuts that could threaten the fragile economy.

As part of the last-minute negotiations, the lawmakers were haggling over unemployment benefits, cuts in Medicare payments to doctors, taxes on large inheritances and how to limit the impact of the alternative minimum tax, a parallel income tax system that is intended to ensure the rich pay a fair share but that is increasingly encroaching on the middle class.

President Obama said that if talks between the Senate leaders broke down, he wanted the Senate to schedule an up-or-down vote on a narrower measure that would extend only the middle-class tax breaks and unemployment benefits. The Senate majority leader, Harry Reid of Nevada, said he would schedule such a vote on Monday absent a deal.

If Congress is unable to act before the new year, Washington will effectively usher in a series of automatic tax increases and a program of drastic spending cuts that economists say could pitch the country back into recession.

The president and lawmakers put those spending cuts in place this year as draconian incentives that would force them to confront the nation’s growing debt. Now, lawmakers are trying to keep them from happening, though it seemed most likely on Saturday that the cuts, known as sequestration, would be left for the next Congress, to be sworn in this week.

“We just can’t afford a politically self-inflicted wound to our economy,” Mr. Obama said Saturday in his weekly address. “The housing market is healing, but that could stall if folks are seeing smaller paychecks. The unemployment rate is the lowest it’s been since 2008, but already families and businesses are starting to hold back because of the dysfunction they see in Washington.”

The fear of another painful economic slowdown appears to have accelerated deal-making on Capitol Hill with just 48 hours left before the so-called fiscal cliff arrives. Weeks of public sniping between Mr. Reid, the Democratic leader, and Senator Mitch McConnell of Kentucky, the Republican leader, ebbed on Friday evening with pledges of cooperation and optimism from both.

On Saturday, though, that sentiment was put to the test as 98 senators waited for word whether their leaders had come up with a proposal that might pass muster with members of both parties. The first votes in the Senate, if needed, are scheduled for Sunday afternoon.

“It’s a little like playing Russian roulette with the economy,” said Senator Mark Warner, Democrat of Virginia. “The consequences could be enormous.”

Members of Congress were mostly absent from the Capitol on Saturday, after two days of Senate votes on other matters and a day before both chambers were to reconvene. However, senior aides were working on proposals in their offices or at their homes.

Speaker John A. Boehner stopped by the Capitol briefly to see his chief of staff on Saturday afternoon. Mr. McConnell spent much of the day in his office.

Aides to Mr. Reid were expecting to receive offers from Mr. McConnell’s staff, but no progress was reported by midday. Even if the talks took a positive turn, Senate aides said, no announcement was expected before the leaders briefed their caucuses on Sunday.

The chief sticking point among lawmakers and the president continued to be how to set tax rates for the next decade and beyond. With the Bush-era tax cuts expiring, Mr. Obama and Democrats have said they want tax rates to rise on income over $250,000 a year, while Republicans want a higher threshold, perhaps at $400,000.

Democrats and Republicans are also divided on the tax on inherited estates, which currently hits inheritances over $5 million at 35 percent. On Jan. 1, it is scheduled to rise to 55 percent beginning with inheritances exceeding $1 million.

The political drama in Washington over the weekend was given greater urgency by the fear that the economic gains of the past two years could be lost if no deal is reached.

Some of the consequences of Congressional inaction would be felt almost at once on Tuesday, in employee paychecks, doctors’ offices and financial markets. Analysts said the effect would be cumulative, building over time.

An early barometer would probably be the financial markets, where skittish investors, as they have during previous Congressional cliffhangers, could send the stock market lower on fears of another prolonged period of economic distress.

In 2011, the political battles over whether to raise the nation’s borrowing limit prompted Standard & Poor’s to downgrade its rating of American debt, suggesting a higher risk of default. The Dow Jones industrial average fell 635 points in a volatile day of trading after the downgrade.

This month, traders have again nervously watched the political maneuvering in Washington, and the markets have jumped or dropped at tidbits of news from the negotiations. Two weeks ago, Ben S. Bernanke, the chairman of the Federal Reserve Board, predicted that if lawmakers failed to reach a deal, “the economy will, I think, go off the cliff.”

Immediately — regardless of whether a deal is reached — every working American’s taxes will go up because neither party is fighting to extend a Social Security payroll tax cut that has been in place for two years.

Robert Pear and Jennifer Steinhauer contributed reporting.

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World Briefing | Africa: South Africa’s President Gives a Biting Critique of Pets

President Jacob Zuma, left, said in a speech that the idea of having a pet was part of “white culture” and that people should focus on family welfare, the newspaper The Star reported Thursday. The president’s office sought to clarify the remarks, saying that he was encouraging “the previously oppressed African majority” to uphold its own culture. It also suggested the way in which the comments were reported, rather than the comments themselves, was divisive.

During his speech on Wednesday to a crowd in KwaZulu-Natal, Mr. Zuma’s home province, the president said that people who loved dogs more than people had a “lack of humanity” and that some people were trying in vain to “emulate whiteness,” The Star reported. In a statement, the South African presidency said that Mr. Zuma was trying to “decolonize the African mind post-liberation” and enable people to take pride in their heritage and not feel pressure to adopt customs of minority cultures. Animals can be cared for, was the message, but not at the expense of people.

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Stomach bug knocks Nadal from Australian Open

MADRID (AP) — Rafael Nadal will miss the Australian Open because of a stomach virus, further delaying his comeback after being sidelined since June.

The Spaniard also will skip the preceding Qatar Open. The Australian Open, the year's first Grand Slam tournament, begins Jan. 14. The virus kept Nadal from making his return at Abu Dhabi this week.

Nadal said Friday his withdrawals had nothing to do with the tendinitis in his left knee, which forced him to take a break last summer following his second-round loss at Wimbledon to then 100th-ranked Lukas Rosol. Nadal also missed the London Olympics.

"My knee is much better and the rehabilitation process has gone well as predicted by the doctors," Nadal said in a statement. "But this virus didn't allow me to practice this past week, and therefore I am sorry to announce that I will not play in Doha and the Australian Open."

The former No. 1 player hopes to return at Acapulco, Mexico, starting Feb. 27. However, he did not rule out playing an earlier tournament if his recovery went well enough.

"I always said that my return to competition will be when I am in the right conditions to play," he said. "And after all this time away from the courts I'd rather not accelerate the comeback and prefer to do things well."

Nadal, ranked No. 4, won the Australian Open in 2009. Last year, he lost to top-ranked Novak Djokovic in a title match that lasted 5 hours, 53 minutes, the longest recorded Grand Slam final.

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Well: Spinach Recipes for Health

Spinach goes well with all kinds of foods. It’s also a green that is easy to find year-round. As Martha Rose Shulman writes in this week’s Recipes for Health:

Spinach has remained a part of my holiday ritual. I love the convenience of bagged spinach, but I prefer the richness of the lush bunches I get at the farmers’ market. I don’t mind stemming and washing it, but if you are pressed for time the bagged spinach is a godsend, especially if you live in a cold climate and don’t have access to farmers’ market spinach in December.

Below are five new ways to add spinach to your meal. And for more spinach recipes, see “Making Spinach the Star of the Meal.”

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Spinach and Millet Timbale With Tomato Sauce
A timbale is a molded custard, somewhat similar to a quiche without a crust.

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Garlic Soup With Spinach
A quick and easy soup that is a great way to use any leftover turkey stock from Thanksgiving.

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Penne With Mushroom Ragout and Spinach
This is a delicious meal no matter what variety of mushrooms you have on hand.

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Spinach Gnocchi
A considerably lighter version of the classic gnocchi made with spinach and ricotta.

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Spinach, Sardine and Rice Gratin
This classic Provençal gratin is a good way to work fish that is high in omega-3s into your diet.

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Amid Fiscal Stalemate, How to Handle Tax Rate Uncertainty

So we’re left with no idea how much we’ll be paying in federal income taxes in 2013, and a wide range of possibilities for taxes on investments and estates and tax deductions for mortgage interest and charitable contributions. Plenty of people will spend the next several days feeling helpless, with one eye on the stock market and the other on Washington.

For all the uncertainty, though, there are a few things we do know about how things will change next year. For example, new taxes, some of which will help pay for Medicare, will affect a few million affluent households.

We also know that in all likelihood, whatever happens in Washington in the coming days or weeks won’t come close to solving the problem that tends to clear the room when you say it aloud: We are not collecting enough money to pay for the promises we’ve made to one another. It isn’t just Medicare, either. Many states have steadfastly refused to set aside the trillions of dollars they will need to cover benefits for public workers once they retire.

As for what you should do about all of this, the answer, for now, is probably nothing. In the short term, stock prices may decline and the economy may get the hiccups, but it’s foolish for amateurs to try to alter their investment portfolios to take advantage of the situation. Leave that to the hedge funds, and watch how many of them get it wrong.

In the long term, however, prepare to make the kind of attitude adjustment that can take a while to embrace. A decade or two from now, most of us will probably be paying more in taxes or getting fewer services from the government than we do now. Once that happens, you’ll need to earn more, save more, live on less or take better advantage of legal tax avoidance strategies.

In fact, you may want to try to do all of these things in the next couple of years, just to see which ones you can accomplish with the least amount of pain.

Here is what we do know will happen in 2013. First, there is a new tax of 0.9 percent on wages, other compensation and self-employment income above $200,000, if you’re single, or $250,000, if you’re married and filing your taxes jointly. This is on top of the existing Medicare tax.

Second, there is a new tax of 3.8 percent on investment earnings, including interest, dividends and capital gains, in addition to whatever the capital gains tax ends up being. It applies to single people with modified adjusted gross income of $200,000, or $250,000 for married couples filing jointly.

There is still some time to maneuver around the second tax. If you have winning investments you were planning to sell soon anyway, say for a down payment on a house, you might as well do it by Monday. That way, you can avoid the new tax if you’re certain you’ll be in the qualifying income category next year.

A few other changes: For now, you can generally take a tax deduction only for unreimbursed medical expenses that exceed 7.5 percent of your adjusted gross income. That floor will rise to 10 percent next year, except for people 65 and over, who won’t be subject to it until 2017.

Also, if you save money in a flexible spending account for health care expenses, 2013 will bring a $2,500 cap on what you can set aside each year while avoiding income taxes. Many people routinely saved $5,000 in the past.

Sometime in the next few weeks, we’ll presumably learn more about the new tax rates on income, capital gains, dividends and estates. A solution may come in stages, with a temporary patch now and the promise of a longer-term deal later.

But this is only the beginning, and if you want to read the Stephen King version of our collective fiscal story, there are a few sources to consult. You could start with the radical centrists at Third Way, a research group, who are the best splashers of cold water that I’ve read on the topic of the federal budget. They present some truly scary data while attempting to persuade Democrats to accept cuts to Medicare and other programs.

In 2010, for instance, 11,712 people turned 25 each day, while just 6,670 turned 65. By 2030, 12,499 people will be turning 25 each day, but the number turning 65 will jump to 10,948. The 65-year-olds in 2030 will probably live longer than the people who turned 65 in 2010, and keeping them alive could cost a lot more.

The Pew Center on the States, using the states’ own actuarial data, estimates that there is a $1.38 trillion dollar gap between what governments have set aside to pay for public employees’ pensions and retiree health care costs and their actual obligations. Robert Novy-Marx, an assistant professor at the University of Rochester’s Simon Graduate School of Business, and Joshua D. Rauh, a professor at the Stanford Graduate School of Business, believe the shortfall in pension financing alone is actually $3 trillion to $4 trillion.

If states were to try to fill the gap solely by raising taxes, Mr. Novy-Marx and Mr. Rauh estimate that the cost per household in 2011 would have been $2,250 in New York, $2,000 in New Jersey and $1,994 in California — and we’d need to pay that amount every year for 30 years, with adjustments for inflation. Happy New Year!

These numbers boggle the mind, which is why you’re not seeing them in the newsletters that state legislators send to your home. Instead, lawmakers are trying to change the benefits promised to public employees. But even minor changes have led to lawsuits that could take a decade to resolve. By then, the obligations will probably have grown much larger.

Read enough of these reality checks, and a hazy sort of reckoning starts to take shape. It’s not clear how high taxes will go or how many services — from retiree health care to garbage removal — we may someday need to pay more for, or cover ourselves. But it’s going to cost you more money one way or the other, unless you’re in a truly low tax bracket.

That brings us to those legal tax avoidance maneuvers, which often benefit people who can save. Flexible spending accounts for medical costs will still save you hundreds of dollars in taxes each year, even with a $2,500 cap. A health savings account, the kind that pairs up with a high-deductible health insurance policy, can grow into a sizable pile if you save the money and use it in retirement instead of to pay out-of-pocket medical expenses now. And the fact that the affluent can still avoid capital gains taxes, and get an income tax break in many states, on hundreds of thousands of dollars of college savings via 529 plans is a minor miracle.

There is also the Roth individual retirement account, where even the low-six-figure set can put away money on which they’ve already paid income taxes, leave it there for decades in stocks and bonds, and pull it out without paying a dime of capital gains or other taxes.

That’s the story — for now, at least. In 30 or 40 years, if things are really grim, might the federal government try to tax withdrawals from Roth accounts with enormous balances? As we’re learning now, most great tax deals, like the mortgage interest deduction for beach houses and the tax-free health insurance benefits that many of us get from our employers, may not last forever.

We don’t have much control over what will happen in Washington or our state capitals next year, or 10 years from now. But most of us can probably find ways to earn a little more, save a little extra or spend a little less. Pick just one of those options, make it your New Year’s resolution and see if it helps you feel more in control of your financial destiny by this time next year.

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McElroy has concussion, Sanchez to start for Jets

FLORHAM PARK, N.J. (AP) — Greg McElroy has a concussion and will be replaced by Mark Sanchez as the New York Jets' starting quarterback in the season finale at Buffalo on Sunday.

Coach Rex Ryan says Thursday that McElroy, preparing to make his second NFL start in place of the benched Sanchez, was lifting weights and had headaches. He went to the team's training staff and then revealed he was suffering concussion-like symptoms after being sacked 11 times in the Jets' 27-17 loss to San Diego last Sunday.

Ryan says he chose to start Sanchez over Tim Tebow because the team has just two practices and a walkthrough to prepare before the game and he feels "more comfortable" with Sanchez. Sanchez was benched after turning the ball over five times at Tennessee on Dec. 17.

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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