South Korea votes in tight race on economy and jobs

SEOUL (Reuters) - South Koreans  voted on Wednesday in freezing winter temperatures for a new president in a battle between the daughter of their former military ruler and a man her father jailed for political activism.

The next president of Asia's fourth largest economy will have to deal with a hostile North Korea, under young and untested new leader Kim Jong-un, and a slowing domestic economy.

Conservative candidate Park Geun-hye had a thin lead in polls published last week, the last allowed under election rules.

Park's left-wing challenger, Moon Jae-in, has promised to perform global pop sensation Psy's Gangnam Style "horse dance" if turnout hits 77 percent.

That turnout would signify a high level of participation by young voters who pollsters say could propel Moon into the presidential "Blue House".

With three hours until the polls close, turnout was 59.3 percent, higher than the two previous presidential elections and well on track to achieve 70 percent.

If Park wins, the unmarried 60-year old would be the first woman leader of the country, which is still largely run by men in dark suits. {ID:nL4N09K1P3]

"I trust her. She will save our country," said Park Hye-sook, 67, who voted in an affluent Seoul district early in the morning.

"Her father ... rescued the country," said the housewife and grandmother, who is no relation to the candidate, reflecting the admiration many older voters feel for former president Park Chung-hee, which has translated into support for his daughter.

She has pledged dialogue with impoverished North Korea, whose rocket launch last week reinforced fears it is developing a long-range missile. She has promised a tough line on the isolated North's nuclear and missile programs.

Park, wearing a red muffler, was cheered by crowds chanting her name as she entered the polling station and urged voters to "open a new era".

Moon is a former human rights lawyer who has promised unconditional aid for North Korea and to reintroduce an engagement policy that ushered in closer ties between the Cold War rivals.

Those ties started unraveling with the shooting by North Korea of a tourist from the South in 2008, and deteriorated with the sinking of a South Korean warship in 2010, which the North denies, and the shelling of a South Korean island the same year.

Moon cast his ballot in the southern city of Busan and said voters disenchanted by five years of conservative rule under Lee Myung-bak, who is constitutionally limited to a single term, had the chance to "change the world with their vote".

IT'S THE ECONOMY

More than 40 million people are eligible to cast their votes. Polling stations will close at 6 p.m. (0900 GMT) and the three network television stations will announce the result of a jointly conducted exit poll shortly afterwards.

While Park's bid to become president has stirred debate and divisions about her father's rule, and the prospect of a nuclear-armed North Korea also hangs over the country, the main issue in the election has been the economy.

While outwardly successful and home to some of the world's biggest companies, such as Samsung Electronics Co Ltd and Hyundai Motor Co, South Korean society has become steadily more unequal.

Park advocated a broader welfare policy than when she ran five years ago, when she failed to win the conservative presidential nomination, but says she will not raise taxes or spend more money to boost the economy, instead relying on cutting wasteful spending.

Moon, by contrast, has proposed an $18 billion jobs package, boosting maternity pay and taxing the super-rich. He has also pledged to repeal a controversial free trade agreement with the United States.

Park's father took power in a 1961 coup and helped push South Korea from poverty to developed nation status, but at the cost of repressing human rights and democracy.

His wife was shot by a North Korean-backed assassin who was gunning for him in 1974 and his then young daughter took on the role of South Korea's first lady until Park's own killing in 1979 by his security chief after a drunken night out.

The younger Park has at times sought to appeal to the spirit that her father embodied. On Tuesday she evoked his economic call to arms of "Let's Live well" in a bid to rally her party faithful.

But at other times she has stumbled over apologies to victims of her father's rule and sought to appeal to her mother's softer image.

Moon, jailed in 1975 when he was a student activist, has attacked Park "for living the life of a princess". His only political experience was as an aide to former President Roh Moo-hyun, who was his law partner.
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Google filing error shocks investors, exposes process

SAN FRANCISCO/NEW YORK (Reuters) - R.R. Donnelley & Sons Co handles thousands of securities filings a year for corporate clients in a routine process that is invisible to most investors. On Thursday Google and its shareholders found out just what happens when that process goes wrong.

Google issued a statement blaming Donnelley, its filing agent, after the Internet search company's quarterly results were released by the U.S. Securities and Exchange Commission hours ahead of schedule.

Earnings were far less than analysts expected and Google shares immediately plunged as much as 10.5 percent, knocking $26 billion off its market capitalization - the equivalent, as it happens, of about 13 R.R. Donnelleys.

It was quickly obvious that a mistake had been made -- the second paragraph of the filing said "PENDING LARRY QUOTE" instead of an actual quote from Google CEO Larry Page -- but it was not clear why.

Within minutes, though, an unknown prankster set up a "PendingLarry" Twitter feed to hypothesize what the missing quote might be. Among the highlights: "Man, our privacy was WAY violated today."

Donnelley shares lost more than 5 percent after Google started pointing the finger, though they recovered later in the day. The company did not respond to a call for comment, but issued a statement to CNBC in which it said it was investigating the circumstances of the release.

Best known as a provider of printing services, Donnelley is also the top SEC filing agent in the country, handling more than 75,000 submissions this year as of mid-October, according to SECInfo.com.

Filing agents like Donnelley take paper documents and convert them for submission to the SEC in the appropriate format. The company also owns the filing portal EDGAR Online.

WHO GOOFED?

It is far from the first time a company's earnings have somehow gotten out early.

In late 2010 and early 2011, inadvertent releases - usually by a misplaced release on a website - plagued companies like Walt Disney Co (NYS:DIS) and Microsoft Corp (NSQ:MSFT).

The common thread in all of those cases is that investors who are not in the right place at the right time to see the news may suffer for it.

"Some who didn't get a chance to sell will try to, and others will be looking for bargains. I'm sure a lot of Google owners were caught off guard," said Randy Frederick, managing director of active trading and derivatives for Charles Schwab in Austin, Texas.

After the first question of "who goofed?" was sorted out Thursday afternoon, the second one being asked by investors was "can we sue?"

"Everyone is trying to figure out if there's any legal issue with respect to R.R. Donnelley. Google is halted, Donnelley is down big-time on the news since they're allegedly not supposed to have released the information," said Michael Matousek, senior trader at U.S. Global Investors in San Antonio.

But one plaintiffs lawyer who sues companies on behalf of investors said shareholders would not have a claim against either Google or R.R. Donnelley because the earnings disclosure was likely a mistake.

"There's no fraudulent intent here," said Reed Kathrein with Hagens Berman.

R.R. Donnelley may not be entirely off the hook with Google, however. The company could have a negligence claim to recover any additional costs it incurred in responding to the incident, Kathrein said.

Any potential damages against R.R. Donnelley could be limited, though, by the contract between the two companies.

Late Thursday, Google filed an amended press release with the missing quote and a confirmation that the figures in the original were accurate.

R.R. Donnelley shares were up 2 cents at $10.87 in late trading. Google was down 8.1 percent to $693.94 after trading resumed.
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Who Owns America’s Debt?

As the U.S. continues to rack up more than $1 trillion of new debt every year, Americans are beginning to worry about who we owe this money to and how much power our creditors have over us.

According to Barry P. Bosworth, a senior fellow at the Brookings Institution, our two biggest foreign creditors are Japan and China.

Although it may seem as though our debt to these countries renders us a puppet on strings, Bosworth says this fear is overblown. The U.S. market is very important to China's economy, so China would be loathe to do anything that might exacerbate tensions or disrupt trade between the two countries. And the same can be said for Japan. China owns $1.15 trillion of U.S. government debt -- more than any other country -- but U.S. taxpayers actually owe less money to China compared to recent years. China holds 10% of U.S. Treasuries, down from 12% two years ago.

Related: China's Slow Growth 'Marks An End of an Era' But No Hard Landing

And what about all the anti-China rhetoric that we hear about on the campaign trail?

Republican Presidential Nominee Mitt Romney has been promising the country that he will declare China a "currency manipulator" on the first day of his presidency--and then enact tariffs as necessary until he forces China to level the trading playing field. Is that something that Romney is actually likely to do if he gets elected?

No, says Bosworth.

Tough talk with respect to China has become standard rhetoric for any presidential challenger. If and when Romney becomes president, his position will likely mellow.

Bosworth also says that the problem with the U.S.-China trade relationship is not, as is commonly believed, that China doesn't play fair. China has actually addressed lots of its unfair practices over the past decade, Bosworth says, while the U.S. is still pursuing the same old self-destructive habits. Until we stop consuming so much and start producing more, Bosworth says, we're in no position to demand anything.
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US housing construction up 15 percent in September

WASHINGTON (AP) -- U.S. builders started construction on single-family homes and apartments in September at the fastest rate since July 2008, a further indication that the housing recovery is strengthening.

The Commerce Department said Wednesday that builders broke ground on homes at a seasonally adjusted annual rate of 872,000 in September. That's an increase of 15 percent from the August level.

Applications for building permits, a good sign of future construction, jumped nearly 12 percent to an annual rate of 894,000, also the highest since July 2008.

[Click here to see home loan rates in your area.]

The strength in September came from both single-family construction, which rose 11 percent, and apartments, which increased 25.1 percent.

Construction activity is now 82.5 percent higher than the recession low hit in April 2009. Activity is still well below the roughly 1.5 million rate that is consistent with healthier markets.

Still, the surge in construction suggests builders believe the housing rebound is durable.

Builder confidence reached at a six-year high this month, according to a survey by the National Association of Home Builders. The group's index of builder sentiment rose to a reading of 41. While that's still below the level of 50 that signals a healthy market, it has steadily climbed over the past year from a reading of 17.

Sales of new and previously owned homes have been slowly improving this year, and home prices are starting to show consistent gains.

Record-low mortgage have encouraged more people to buy. And the Federal Reserve's aggressive policies could push long-term interest rates even lower, making home-buying affordable for the foreseeable future.

Housing is expected to keep improving next year. But many economists say economic growth will stay muted until companies step up hiring and consumers start spending more.

Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the home builders group.
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Saints' suspensions tossed out in bounty case

NEW ORLEANS (AP) — Finding fault with nearly everyone tied to the New Orleans Saints' bounty case, from the coaches to Roger Goodell, former NFL Commissioner Paul Tagliabue tossed out the suspensions of four players Tuesday and condemned the team for obstructing the investigation. In a surprising rejection of his successor's overreaching punishments, Tagliabue wrote that he would "now vacate all discipline to be imposed upon" two current Saints, linebacker Jonathan Vilma and defensive end Will Smith, and two players no longer with the club, Browns linebacker Scott Fujita and free-agent defensive lineman Anthony Hargrove. Tagliabue essentially absolved Fujita, but did agree with Goodell's finding that the other three players "engaged in conduct detrimental to the integrity of, and public confidence in, the game of professional football." It was a ruling that allowed both sides to claim victory more than nine months after the league first made "Saints bounties" a household phrase: The NFL pointed to the determination that Goodell's facts were right; the NFL Players Association issued a statement noting that Tagliabue said "previously issued discipline was inappropriate." Vilma, suspended by Goodell for the entire current season, and Smith, suspended four games, have been playing for the Saints while their appeals were pending. Fujita is on injured reserve; Hargrove is not with a team. Tagliabue, appointed by Goodell to oversee a second round of player appeals, criticized the Saints as an organization that fostered bad behavior and tried to impede the investigation into what the NFL said was a performance pool designed to knock targeted opponents out of games from 2009 to 2011, with thousands of dollars in payouts. A "culture" that promoted tough talk and cash incentives for hits to injure opponents — one key example was Vilma's offer of $10,000 to any teammate who knocked Brett Favre out of the NFC championship game at the end of the 2009 season — existed in New Orleans, according to Tagliabue, who also wrote that "Saints' coaches and managers led a deliberate, unprecedented and effective effort to obstruct the NFL's investigation." The former commissioner did not entirely exonerate the players, however. He said Vilma and Smith participated in a performance pool that rewarded key plays — including hard tackles — while Hargrove, following coaches' orders, helped to cover up the program when interviewed by NFL investigators in 2010. "My affirmation of Commissioner Goodell's findings could certainly justify the issuance of fines," the ruling said. "However, this entire case has been contaminated by the coaches and others in the Saints' organization." Tagliabue said he decided, in this particular case, that it was in the best interest of all parties involved to eliminate player punishment because of the enduring acrimony it has caused between the league and the NFL Players Association. He added that he hoped doing so would allow the NFL and union to move forward collaboratively to the more important matters of enhancing player safety. "To be clear: this case should not be considered a precedent for whether similar behavior in the future merits player suspensions or fines," his ruling said. Tagliabue oversaw the second round of player appeals to the league in connection with the cash-for-hits program run by former defensive coordinator Gregg Williams from 2009-2011. The players initially opposed his appointment. Goodell had given Vilma a full-season suspension, while he gave Smith, Fujita and Hargrove shorter suspensions. Tagliabue cleared Fujita of conduct detrimental to the league. The former commissioner found Goodell's actions historically disproportionate to past punishment to players for similar behavior, which had generally been reserved to fines, not suspensions. He also stated that it was very difficult to determine whether the pledges players made were genuine, or simply a motivational ploy, particularly because Saints defenders never demonstrated a pattern of dirty play on the field. "The relationship of the discipline for the off-field 'talk' and actual on-field conduct must be carefully calibrated and reasonably apportioned. This is a standard grounded in common sense and fairness," Tagliabue wrote in his 22-page opinion. "If one were to punish certain off-field talk in locker rooms, meeting rooms, hotel rooms or elsewhere without applying a rigorous standard that separated real threats or 'bounties' from rhetoric and exaggeration, it would open a field of inquiry that would lead nowhere." Saints quarterback Drew Brees commented on Twitter: "Congratulations to our players for having the suspensions vacated. Unfortunately, there are some things that can never be taken back." The Saints opened the season 0-4 and are now 5-8 and virtually out of the playoffs after appearing the postseason the three previous seasons, including the franchise's only Super Bowl title to conclude the 2009 season. Shortly before the regular season, the initial suspensions were thrown out by an appeals panel created by the NFL's collective bargaining agreement. Goodell then reissued them, with some changes, and now those have been dismissed. Now, with the player suspensions overturned, the end could be near for a nearly 10-month dispute over how the NFL handled an investigation that covered three seasons and gathered about 50,000 pages of documents. "We respect Mr. Tagliabue's decision, which underscores the due process afforded players in NFL disciplinary matters," the league said in a statement. "The decisions have made clear that the Saints operated a bounty program in violation of league rules for three years, that the program endangered player safety, and that the commissioner has the authority under the (NFL's collective bargaining agreement) to impose discipline for those actions as conduct detrimental to the league. Strong action was taken in this matter to protect player safety and ensure that bounties would be eliminated from football." The players have challenged the NFL's handling of the entire process in federal court, but U.S District Judge Ginger Berrigan had been waiting for the latest round of appeals to play out before deciding whether to get involved. The judge issued an order Tuesday giving the NFLPA and Vilma until Wednesday to notify the court if they found Tagliabue's ruling acceptable. Vilma also has filed a defamation lawsuit against Goodell, which also is being handled by Berrigan. Vilma's lawyers, Peter Ginsberg and Duke Williams, said by email to The Associated Press that they would "pursue the defamation action vigorously." NFL investigators found that Vilma and Smith were ringleaders of a cash-for-hits program that rewarded injurious tackles labeled as "cart-offs" and "knockouts." Witnesses including Williams also said Vilma made a $10,000 pledge for anyone who knocked then-Minnesota quarterback Brett Favre out of the 2010 NFC title game. However, Tagliabue found it was not clear if the pledge was genuine or simply a motivational prop. "There is more than enough evidence to support Commissioner Goodell's findings that Mr. Vilma offered such a bounty" on Favre, Tagliabue wrote. "I cannot, however, uphold a multi-game suspension where there is no evidence that a player's speech prior to a game was actually a factor causing misconduct on the playing field and that such misconduct was severe enough in itself to warrant a player suspension or a very substantial fine." The NFL also concluded that Hargrove lied to NFL investigators to help cover up the program. The players have from the beginning denied they ever took the field intending to injure opponents, while Hargrove has said he never lied about a bounty program, because there wasn't one. Goodell suspended Williams indefinitely, while banning Saints head coach Sean Payton for a full season. Tagliabue's ruling comes after a new round of hearings that for the first time allowed Vilma's attorneys and the NFLPA, which represents the other three players, to cross-examine key NFL witnesses. Those witnesses included Williams and former Saints assistant Mike Cerullo, who was fired after the 2009 season and whose email to the league, accusing the Saints of being "a dirty organization," jump-started the probe. "We believe that when a fair due process takes place, a fair outcome is the result," the players' union said in a statement. "We are pleased that Paul Tagliabue, as the appointed hearings officer, agreed with the NFL Players Association that previously issued discipline was inappropriate in the matter of the alleged New Orleans Saints bounty program. "Vacating all discipline affirms the players' unwavering position that all allegations the League made about their alleged 'intent-to-injure' were utterly and completely false." Smith said he was pleased that Tagliabue vacated his suspension. "I continue to maintain that I did not participate in a pay-to-injure program or facilitate any such program," he added. "I appreciate that Mr. Tagliabue did not rush to judgment, taking into consideration all facts presented to him, before ruling — something that was clearly not done by Commissioner Goodell in previous hearings." A statement released by Vilma's lawyers on his behalf said the linebacker is "relieved and gratified that Jonathan no longer needs to worry about facing an unjustified suspension. "On the other hand, Commissioner Tagliabue's rationalization of Commissioner Goodell's actions does nothing to rectify the harm done by the baseless allegations lodged against Jonathan. Jonathan has a right and every intention to pursue proving what really occurred and we look forward to returning to a public forum where the true facts can see the light of day."
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Spice Girls take stage at musical premiere

LONDON (Reuters) - The Spice Girls took to the stage on Tuesday after the world premiere of a new musical loosely based on their meteoric rise to fame in the 1990s, earning huge cheers from an audience that only really got going at the encore. "Viva Forever!" was the brainchild of producer Judy Craymer, whose "Mamma Mia!" musical based on the hits of ABBA has earned nearly $2 billion worldwide and spawned a hit movie starring Meryl Streep. She teamed up with British comedian Jennifer Saunders to create a story about the central character Viva, a sprightly teenager who, along with her friends, gets into the final stages of a TV singing contest closely resembling "The X Factor". To boost flagging audience figures - a nod to "The X Factor"s real-life ratings woes in Britain this season - their "mentor" springs a surprise and throws out three members of the band to leave Viva on her own. What follows is part morality tale examining what is more important - friends, family or fame - and part satire on reality television, including a callous, Simon Cowell-like producer. "We love you Judy!" said Geri Halliwell at the end of the show, which closed with a romp through some of the Spice Girls' biggest hits including "Spice Up Your Life". "Thank you for making the Spice Girls' dream come true," Halliwell added. Halliwell was joined on stage by Victoria Beckham, Melanie Brown, Emma Bunton and Melanie Chisholm, who together stormed the charts in the 1990s and put "girl power" on the map. Beckham, who arrived at the London premiere after her ex-bandmates, sat with her soccer star husband David and three sons, who clapped along to the music during the final medley. NATIONAL TREASURES Now all young mothers in their late 30s and early 40s, The Spice Girls are still affectionately known by the nicknames they adopted in the band - Posh (Beckham), Scary (Brown), Baby (Bunton), Sporty (Chisholm) and Ginger (Halliwell). They were hailed as modern-day feminists by some and dismissed as vacuous pop princesses by others, but their success is beyond doubt. They sold 55 million records, had nine British No. 1 singles and three back-to-back Christmas No. 1s. The band broke up around 12 years ago, and internal bickering among the members was long the delight of Britain's celebrity-obsessed tabloids. Perhaps surprisingly, given the bust-ups and hissy fits, the group has been united in its backing of the new musical, and underlining the Spice Girls' lasting popularity they played a major part in the closing ceremony at the London Olympics. Paul Taylor, writing in the Independent newspaper, gave the musical two stars out of five in his review. "The Spice Girls' songs, with their clever hooks and catchy rhythms, are better at projecting an attitude than fleshing out a dramatic situation," he wrote, describing Saunders' story as "charmless", "messy" and "lackluster". "Not only does her script rarely give you that necessary gleeful sense of expectancy about where the songs are going to be shoe-horned in, but it's embarrassingly derivative of 'Mamma Mia!' and looks way past its sell-by date in its utterly surprise-free satiric swipe at 'X Factor'." Saunders said before the show that she considered herself the "sixth" Spice Girl. "We used to travel around everywhere to see them and they were so great with my kids," said the 54-year-old, best known for playing a self-absorbed, eccentric mother in the popular British comedy series "Absolutely Fabulous". "The thought of a Spice Girls musical written by somebody else was not acceptable," she told the Daily Mirror newspaper. "Because I was so close to them, I couldn't let it slip through my fingers."
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Cowboys' Brent attends memorial with team support

DALLAS (AP) — Jason Garrett gave the Dallas Cowboys a day off after his players somehow pulled off a win in Cincinnati while reeling from a one-car accident that killed one teammate and landed another in jail. Many players showed up at team headquarters anyway and there was Josh Brent, the hulking defensive tackle who missed the trip after police say he was driving drunk and caused the wreck that killed practice squad linebacker Jerry Brown, his close friend and roommate. And Brent was back with his teammates again Tuesday for a private memorial honoring Brown. Players and team officials left without talking to reporters after the hour-long service on a chilly afternoon at Oak Cliff Bible Fellowship in Dallas, but Garrett had made it clear that Brent was still a part of the Cowboys family. "We're going to support Josh 100 percent in every way that we can," Garrett said Monday, a day after the Cowboys beat the Bengals 20-19 with a field goal on the final play to keep their playoff hopes alive. Brent arrived at the service earlier than most of the Cowboys players, team executives and staff members. He was in a van with several other people and could be seen hugging Brown's mother before walking into the building. Brent was one of the last to leave, too. He grew close to Brown during three seasons together at the University of Illinois, and took in Brown when the Cowboys added the 25-year-old to the roster in October. "It's a really, really difficult situation for him," Garrett said. "We want to make him feel that there are people around him who can help him get through this thing day by day." NFL spokesman Greg Aiello said the league had "no issues" with Brent being at team facilities while the manslaughter case against him works its way through the courts. Pittsburgh visits Dallas on Sunday in another game with playoff implications for both teams. Police in suburban Irving say Brent was speeding when his vehicle struck a curb and flipped early Saturday, hours before Brent was supposed to be on the team flight to Cincinnati. Brown was taken to a Dallas hospital, where he was pronounced dead. The Dallas County medical examiner said he died after suffering blunt force trauma to his head and neck. Officers who arrived at the accident scene found Brent pulling Brown from the wreck, according to an arrest affidavit. However, a woman who arrived moments after the accident said Brent didn't try to save his friend's life until she begged him. "Jerry was alive," Stacee McWilliams of Irving told The Dallas Morning News. "He was hurt. He was calling out, and his own friend walked away." McWilliams, a 40-year-old insurance company employee, said she was on her way home from her birthday party when she noticed the wreck and stopped. She told the newspaper Monday she could no longer talk about the case on the instruction of Irving police, and she did not respond to a message from The Associated Press seeking an interview Tuesday. Brent's attorney, George Milner, told the AP that an investigating officer told him the woman's story didn't match the circumstances surrounding Brown's death. Milner said he was told that Brown "wasn't talking to anyone. He wasn't moaning. He was dead." Milner said the woman also told police that Irving fire personnel weren't at the scene — another fact that isn't consistent with what really occurred. "Not one person in the Irving Police Department has said one thing that is consistent" with the woman's story, Milner said. Police spokesman John Argumaniz declined to comment on the account, saying only that investigators are interviewing "numerous" witnesses. A club where Brent and Brown reportedly spent at least part of Friday evening, Privae Dallas, has issued a statement saying it's "deeply saddened by the events of the weekend" and that it's cooperating with the Texas Alcoholic Beverage Commission and police. "Privae Dallas is a club that offers its guests a special level of privacy and often caters to celebrities," according to the statement, attributed to the club's human resources manager. "The safety of our guests is very important to us, and our staff is trained to follow the regulations set forth by the Texas Alcoholic Beverage Commission." Comedian Shawn Wayans was at the club last Friday night, and a club promoter tweeted that a dozen unnamed Cowboys players were there ordering numerous bottles of a popular champagne. In Texas, the sale of alcohol with criminal negligence to an intoxicated person is a misdemeanor punishable with a fine of as much as $500 and up to a year in jail. The TABC, which enforces the state's liquor laws, also can suspend or cancel the license of an establishment found to have served an intoxicated customer. TABC spokeswoman Carolyn Beck said the agency is investigating the accident, as it does all alcohol-related fatalities that come to its attention. She said the agency has been told the players were drinking at more than one location but she declined to be specific.
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