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| Shi'ite group hands back army camp to Yemeni government | |  Shi'ite Muslim tribesmen handed back an army camp to the Yemeni government on Saturday, a spokesman for the group said, to try to defuse tensions caused by the capture of a provincial capital north of Sanaa this week. The fall of Omran, some 50 kms (31 miles) north of the Yemeni capital, has drawn condemnation from the U.N. Security Council and a threat of military action by President Abd-Rabbu Mansour Hadi, who had ordered the army to raise its preparedness level to "carry out any tasks that may be assigned to it". The spokesman, Mohammed Abdul-Salam, said in a statement on the Houthi website that an army force despatched from Sanaa "had arrived to take charge of the 310 division headquarters and oversee the security presence in Omran province".
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| Ex-Goldman director Rajat Gupta fails to void conviction | |  By Jonathan Stempel NEW YORK (Reuters) - Former Goldman Sachs Group Inc director Rajat Gupta, serving a two-year prison term, has failed to persuade a federal appeals court to overturn his insider trading conviction. In a brief order, the full 2nd U.S. Circuit Court of Appeals in New York refused on Monday to disturb a March 25 decision by a three-judge panel of that court to let the June 2012 conviction stand. Gupta, 65, challenged the government's use of wiretap evidence against him, as well as the jury instructions by U.S. District Judge Jed Rakoff in Manhattan, who oversaw his trial. Gary Naftalis and Seth Waxman, two of Gupta's lawyers, were not immediately available for comment.
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| Friends of accused Boston bomber told FBI backpack was dumped -agent | |  By Daniel Lovering BOSTON (Reuters) - A friend of the accused Boston Marathon bomber, charged with obstructing the probe into the blasts, and his roommate "simultaneously" told the FBI a backpack belonging to the suspect had been thrown into a dumpster, an agent said Monday. Azamat Tazhayakov is the first of three friends of Dzhokhar Tsarnaev to face trial on charges of interfering with the investigation into the blasts by removing a laptop and the backpack, which contained empty fireworks casings, from Tsarnaev's room three days after the April 15, 2013, attacks that killed three people and injured 264. FBI Special Agent John Walker interviewed Tazhayakov, his roommate and fellow Kazakh exchange student Dias Kadyrbayev and a woman described as Kadyrbayev's girlfriend in the days after the attacks, at one point recovering a baseball cap and ash tray taken from Tsarnaev's room at the University of Massachusetts at Dartmouth. On April 20, the second day of interviewing the friends, Walker told the pair that the FBI was trying to find the backpack.
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| U.S. senators push for tough line in Iran nuclear talks | |  By Patricia Zengerle WASHINGTON (Reuters) - Two influential U.S. senators have asked fellow lawmakers to support demands that Iran accept tough conditions in nuclear talks, including at least two decades of inspections, before Congress would agree to ease sanctions. The appeal was made as Iran and six major powers, including the United States, approach a deadline in talks in Vienna aimed at a deal in which Iran would curb its nuclear program in exchange for gradual relief from crippling economic sanctions. Democrat Robert Menendez and Republican Lindsey Graham, who believe President Barack Obama's administration should not act without Congressional backing, distributed a letter among senators saying they want Iran to "come clean" about any military dimensions of its nuclear program.
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| Bodies found north of Baghdad as Sunni insurgents turn on each other | |  By Isra' al-Rubei'i and Maggie Fick BAGHDAD (Reuters) - Residents of a town north of Baghdad found 12 corpses with execution-style bullet wounds on Monday following fighting between rival Sunni insurgents that could eventually unravel a coalition which has seized much of northern and western Iraq. The incident points to an intensification of infighting between the Islamic State and other Sunni groups, such as supporters of former dictator Saddam Hussein, which rallied behind the al Qaeda offshoot last month because of shared hatred for the Shi'ite-led Iraqi government. Police in Muqdadiya, a town 80 km (50 miles) northeast of the capital, said residents from the nearby town of Saadiya found the 12 corpses on Monday after fighting overnight between Islamic State fighters and the Naqshbandi Army, a group led by Saddam allies. Since the Islamic State swept through Iraqi cities and proclaimed its leader caliph of all Muslims last month, there have been increasing signs of conflict with other Sunni groups which do not necessarily share its rejection of Iraq's borders or its severe interpretation of Islam.
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| Citi to pay $7 bln to settle securities investigation | |  By Anil D'Silva REUTERS - Citigroup Inc has agreed to pay $7 billion to resolve claims it misled investors about shoddy mortgage-backed securities in the run-up to the financial crisis, in a deal that includes the largest civil fraud penalty ever levied by the U.S. Justice Department. The settlement, announced on Monday, is more than twice what many analysts expected but less than the $12 billion the government sought in negotiations with Citi C.N, the third largest U.S. bank. It is one of several Justice Department probes into the packaging and sale of risky home loans. Many of the securities were marketed as safe, even though the banks knew they were destined to collapse.
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