Royal Hoax: Station to Give $500K to Nurse's Family

The Australian radio station that employed the DJs who prank-called the London hospital where Kate Middleton was being treated has cancelled their show and will donate at least $500,000 to the grieving husband and children of the nurse who took the call and later apparently killed herself.

Australia's 2Day FM released a statement today saying it hopes to "help [Jacintha] Saldanha's family with the support they need at this very difficult time."

After days of suspended advertising, the radio station at the center of a global firestorm announced it will resume airing commercials Thursday. All its profits for the rest of the year will go directly to the family of the unsuspecting nurse at the center of that joke.

The Sydney-based station also issued a company-wide suspension of prank calls after the nurse who initially answered the hospital call was found dead.

Saldanha's husband and two teenage children met with officials at the hospital Monday, and spoke publicly for the first time, although via a member of the British Parliament.

Royal Hospital Hoax: End to Shock-Jock Pranks? Watch Video

Australian DJs Apologize in Wake of Nurse's Suicide Watch Video

"This is a close family," Keith Vaz said. "They are devastated by what has happened. They miss her every moment of every day.

Although radio pranks have been a staple of shock DJs for years, DJs Mel Greig and Michael Christian of Australia's 2Day FM might have crossed the line last week when they pranked the hospital, prompting the question of whether this is the end for radio pranking.

"Entertainers try to use real-life everyday circumstances and try to find humor in them," Radio DJ J Niice of B96 in Chicago, who does regular pranks on his show, told ABC News.

DJ Niice says his station has no intentions of pulling the plug on prank calls because it doesn't need to.

Based on U.S. law, such calls only become problematic when any resulting damage or injury could have been foreseen.

Former Alaska Gov. Sarah Palin was famously pranked while running for vice president by a notorious Montreal-based comedy duo, who pretended to be then-French President Nicolas Sarkozy.

"You know, I see you as a president one day," one of them told Palin, to which she replied with a giggle, "Maybe in eight years.'"

A prank caller even managed to make his way through security to speak to Tony Blair while he was still British prime minister. But it was no laughing matter in 1998 when Opie and Anthony, DJs from a Boston radio station, were fired for telling listeners on April Fools' Day that the city's mayor had died in a car accident.

While the Australian DJs' show has been terminated, it's still unclear whether they will be.

They could face criminal charges if police determine their call was illegally recorded. And the same joke at which they initially laughed is now the reason for their tears.

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Egypt army gets temporary power to arrest civilians

CAIRO (Reuters) - Egypt's government has temporarily given the military the authority to arrest civilians to help safeguard a constitutional referendum planned for Saturday, the official gazette said.

The order, gazetted late on Sunday, said the military would support police and liaise with them to protect "vital institutions" until the referendum result is declared.

The decree gave army officers the right to make arrests and transfer detainees to prosecutors.

Despite its limited nature, the edict will revive memories of Hosni Mubarak's emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure, introduced by a civilian government, would have a short shelf-life.

"The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only," the military source said.

"The armed forces secured polling stations during previous elections when it was in charge of the country," the source said, referring to 16 months of army rule after Mubarak fell.

"Now the president is in charge. In order for the armed forces to be involved in securing the referendum, a law had to be issued saying so," the source added.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army's assistance.

"The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over," Ali said.

On Saturday, the military urged rival political forces to solve their disputes via dialogue and said the opposite would drag the country into a "dark tunnel", which it would not allow.

A statement issued by the military spokesman and read on state radio and television made no mention of President Mohamed Mursi, but said a solution to the political crisis should not contradict "legitimacy and the rules of democracy".

A military source close to top officers said the statement "does not indicate any future intervention in politics".

A military council took over after a popular revolt ended Mubarak's 30 years of army-backed rule last year. It then handed power to Mursi, who became Egypt's first freely elected leader in June. The military has not intervened in the latest crisis.

The army statement said the military's duty was to protect national interests and secure vital state institutions.

"The armed forces affirm that dialogue is the best and only way to reach consensus," it added. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies said Saturday's army statement suggested the military wanted both sides to talk out their differences, but discounted the chance of direct military intervention.

"They realize that interfering again in a situation of civil combat will squeeze them between two rocks," he said.

(Additional reporting by Yasmine Saleh; Writing by Alistair Lyon; editing by Philippa Fletcher)

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US, UK shareholders 'now to pay if bank fails'

LONDON: British and US banking regulators proposed on Monday a joint strategy to ensure that the bankruptcy of big banks won't spark a chain reaction of contagion throughout markets.

The two bodies, acting on behalf of the two largest financial centres in the world, stressed that under the proposals, shareholders and not taxpayers would bear the full costs, and top managers would be sacked.

At the Bank of England, the deputy governor for financial stability Paul Tucker said: "The 'too big to fail' problem simply must be cured. We believe it can be and that this joint paper provides evidence of the serious progress that is being made."

The British and US authorities said in a joint statement that the financial crisis had "driven home the importance of an orderly resolution process for globally active, systemically important, financial institutions" which have foundered.

They said that their solutions, which would target the parent of any finance house in trouble, "have been designed to enable large and complex cross-border firms to be resolved without threatening financial stability and without putting public funds at risk."

They said they had borne in mind work by the G20-backed Financial Stability Board on principles for dealing with failed financial institutions.

There has been widespread criticism of the way in which Lehman Brothers investment bank was closed down, triggering a massive crisis of confidence, and that in the disruption that followed some shareholders did not carry the full brunt of the costs and some managers held on to their boardroom jobs.

In the United States and in Europe, governments had to use taxpayers' funds to provide guarantees or new capital to financial institutions in trouble. Creditors lost money but most depositors were protected.

The objective is to minimise the dangers of so-called "systemic risk", when a sudden loss of confidence threatens to trigger chaos throughout the financial system as nearly occurred in 2007.

The strategy by the Bank of England and the US Federal Deposit Insurance Corporation is a response to the traumas and lessons of the financial crisis which followed.

The statement said that the British part of the strategy was intended to fit with the powers provided by the UK Banking Act of 2009 "and in anticipation of the further powers that will be provided by the European Union Recovery and Resolution Directive."

Britain, a member of the European Union but not of the eurozone, is campaigning hard on another front which has a bearing on bank resolution: this is progress towards an EU banking union, built initially around the 17 eurozone members with banking supervision vested in the European Central Bank.

Britain is concerned that this could become a back door way for eurozone and EU authorities to interfere in regulation of the financial sector in Britain in a way which would damage British interests.

The statement said that the proposals were based on a "top-down" strategy for dealing with financial firms in severe difficulty, whereby a single authority would apply its powers "to the top of a financial group, that is, at the parent company level" and across borders.

In the United States the measures would work in the context of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

"Such a strategy would apply a single receivership at the top-tier holding company, assign losses to shareholders and unsecured creditors of the holding company, and transfer sound operating subsidiaries to a new solvent entity or entities," said the statement.

Both the US and British approaches would "ensure continuity of all critical services performed by the operating firm(s), thereby reducing risks to financial stability."

The joint statement said: "The unsecured debt holders can expect that their claims would be written down to reflect any losses that shareholders cannot cover, with some converted partly into equity in order to provide sufficient capital."

Subsidiaries which were viable would be kept open and operating, "thereby limiting contagion effects and crossborder complications."

The statement also made clear that action to deal with financial firms in trouble "would be accompanied by the replacement of culpable senior management."

- AFP/ir

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Samsung video hints at big release at CES

Samsung's Galaxy S3

(Credit:
Josh Miller/CNET)

A teasing post on Samsung's site suggests a new product will be revealed at
CES 2013.

In a blog post and video, the electronics giant says that its customers should "get ready" for January 8 to 11 -- the dates of the Consumer Electronics show -- and should stay tuned to learn more.

The video doesn't give much away. But the phrase "the world is waiting" may be indicative of previous rumors concerning a potential successor to Samsung's Galaxy S3 smarphone, which debuted in May. The company actually quashed such rumors in September via Twitter.

The presumed the Galaxy S4 could potentially feature a quad-core processor and 13-megapixel camera, according to rumors. In addition, there is also word that the next-generation flagship model for the electronics giant may come equipped with an "unbreakable" screen. Below is the video:

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N. Korea extends rocket launch window a week

SEOUL, South Korea North Korea on Monday extended the launch period for a controversial long-range rocket by another week, until Dec. 29, citing technical problems.

An unidentified spokesman for the North's Korean Committee of Space Technology told state media scientists found a "technical deficiency in the first-stage control engine module of the rocket." The statement didn't elaborate, but said technicians were "pushing forward" with final preparations for the launch.

North Korea is making its second attempt of the year to launch a rocket that the United Nations, Washington, Seoul and others call a cover meant to test technology for missiles that could be used to strike the United States. They have warned North Korea to cancel the launch or face a new wave of sanctions.

The North Koreans call the launch a peaceful bid to advance their space program, and a last wish of late leader Kim Jong Il, who died a year ago, on Dec. 17. North Korea is also celebrating the centennial this year of the birth of national founder Kim Il Sung, current leader Kim Jong Un's grandfather. An April launch broke apart seconds after liftoff.

The announcement of the planned rocket launch has sparked worry because of the timing: South Korea and Japan hold key elections this month, President Obama begins his second term in January, and China has just formed a new leadership.

The North had originally set up a 13-day launch window, starting Monday, but it announced early Sunday that it may delay the liftoff for unspecified reasons.

Experts in Seoul and Tokyo had speculated that technical glitches may have forced scientists to postpone the launch of the finicky three-stage rocket, its fifth attempt since 1998.

Temperatures in the border city of Sinuiju, near the launch site, dropped to 8.6 degrees Fahrenheit Monday morning, and the Korean Peninsula has been seized by early winter storms and unusually cold weather, the Korea Meteorological Administration said in Seoul.

Engineers can launch a rocket when it's snowing, but lightning, strong wind and freezing temperatures have the potential to stall liftoff, said Lee Chang-jin, an aerospace professor at Seoul's Konkuk University.

Snow covered the North's launch site last week, according to commercial satellite imagery taken by GeoEye on Dec. 4 and shared with The Associated Press by the 38 North and North Korea Tech websites. The road from the main assembly building to the launch pad showed no fresh tracks, indicating that the snowfall may have stalled the preparations.

Still, Japanese Prime Minister Yoshihiko Noda said Monday that his government would maintain vigilance. Tokyo has mobilized its military to intercept any debris from the rocket.

"At this moment, we are keeping our guard up," Defense Minister Satoshi Morimoto told reporters Monday. "We have not seen any objective indication that would cause us to make any change to our preparedness."

In addition to four failed launches, North Korea has unveiled missiles designed to target U.S. soil and has tested two atomic devices in recent years. It has not yet proven to have mastered the technology for mounting a nuclear warhead to a long-range missile, however.

A successful launch would mean North Korea could develop an intercontinental ballistic missile capable of striking the U.S. mainland within two to three years, said Chong Chol-Ho, a weapons of mass destruction expert at the private Sejong Institute near Seoul.

Six-nation negotiations to offer North Korea much-needed aid in exchange for nuclear disarmament have been stalled since early 2009.

Last week, U.S. Secretary of State Hillary Rodham Clinton said Washington was deeply concerned, and urged foreign ministers from NATO and Russia to demand that Pyongyang cancel its plans. Moscow joined calls on Pyongyang to reconsider.

China, North Korea's main ally and aid provider, also noted its concern, acknowledging North Korea's right to develop its space program but urging Pyongyang to harmonize the bid with restrictions, including those set by the U.N. Security Council.

International pressure and the prospect of dialogue may be a factor in the delay, analysts in Seoul said.

China must have sent a "very strong" message calling for the North to cancel the launch plans, said analyst Baek Seung-joo of the South Korean state-run Korea Institute for Defense Analyses.

North Korea may also be holding off if the U.S., its longtime Korean War foe, actively engages Pyongyang in dialogue, said Koh Yu-hwan, a professor of North Korean studies at Seoul's Dongguk University.

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Royal Hoax: DJs 'Shattered' After Nurse's Suicide

The two Australian radio DJs who prank-called the London hospital where Kate Middleton was being treated last week said they were "shattered" and "gutted" after the nurse who answered their call apparently killed herself.

Shock jocks Mel Greig, 30, and Michael Christian, 25, cried as they spoke to Australia's Channel 9 overnight in their first public interview since Jacintha Saldanha, 46, the nurse who last week connected the pair to the duchess' room, was found dead Friday morning.

"I'm shattered, gutted, heartbroken," Christian said. "Mel and myself are incredibly sorry for the situation and what's happened. I had the idea. … It was just a simple harmless phone call. It was going to go on for 30 seconds. We were going to get hung up on."

FULL COVERAGE: Royal Baby

The host of the "2Day" FM radio show pretended to be Queen Elizabeth and Prince Charles, asking for an update on Middleton's condition when they called up King Edward VII Hospital in central London. With no receptionist on duty overnight, Saldanha answered the prank call and put it through.

"It was just something that was fun and light-hearted and a tragic turn of events that I don't think anyone had expected," Christian said.

A Current Affair/ABC News

Jacintha Saldanha Dead: Could DJs Face Charges? Watch Video

Jacintha Saldanha Outrage: DJs Responsible for Prank Are in Hiding Watch Video

Saldanha was found dead Friday morning after police were called to an address near the hospital to "reports of a woman found unconscious," according to a statement from Scotland Yard.

Investigators have not said how she might have killed herself.

Greig cried today when asked about the moment she heard of the death of Saldanha, a mother of two.

"It was the worst phone call I've ever had in my life," she said through tears. "There's not a minute that goes by that we don't think about her family and the thought that we may have played a part in that is gut-wrenching."

The DJs said they never expected to get through to Middleton's nurse and assumed "the same phone calls had been made 100 times that morning," Christian said.

Grieg said, "We wanted to be hung up on with our silly voices and wanted a 20-second segment to air of us doing stupid voice. … Not for a second did we expect to even speak to Kate or even have a conversation with anyone at the hospital. We wanted to be hung up on."

The global backlash against the duo has been fierce, from online death threats to calls for prison time. Their radio station has announced it is banning phony phone calls altogether, and suspending advertising indefinitely.

Max Moore-Wilton, the chairman of Southern Cross Austereo, said in a letter Sunday to Lord Glenarthur, chairman of King Edward VII's Hospital, that the company is reviewing the station's broadcast policies, the AP reported.

"I can assure you we are taking immediate action and reviewing the broadcast and processes involved," Moore-Wilton said in the letter. "As we have said in our own statements on the matter, the outcome was unforeseeable and very regrettable."

Greig and Michael have been taken off the air, silenced indefinitely.

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Egypt's Mursi scraps decree, fails to appease opponents

CAIRO (Reuters) - Egypt's president scrapped a decree that gave him extra powers and ignited violent protests, but irate opponents said on Sunday he had deepened the conflict by pressing on with a vote on a constitution shaped by Islamists.

President Mohamed Mursi and his Islamist partisans have insisted the referendum go ahead on December 15 to seal a democratic transition that began when a popular uprising felled Hosni Mubarak 22 months ago after three decades of one-man rule.

The retraction of Mursi's November 22 decree, announced around midnight after a "national dialogue" boycotted by almost all the president's opponents, has failed to calm a war of words.

Prime Minister Hisham Kandil, a technocrat with Islamist leanings, said the referendum was the best test of opinion.

"The people are the makers of the future as long as they have the freedom to resort to the ballot box in a democratic, free and fair vote," he said in a cabinet statement.

But opposition factions, uncertain of their ability to vote down the constitution against the Islamists' organizational muscle, want the document redrafted before any vote.

Ahmed Said, a liberal leader of the main opposition National Salvation Front, said Mursi's withdrawal of his November 22 decree had not annulled its consequences, describing the race to a referendum as "shocking" and an "act of war" against Egyptians.

The Front has promised a formal response later on Sunday.

Egypt tipped into turmoil after Mursi grabbed powers to stop any court action to hinder the transition. An assembly led by Mursi's Muslim Brotherhood and other Islamists then swiftly approved the constitution it had spent six months drafting.

Liberals, leftists, Christians and others had already quit the assembly in dismay, saying their voices were being ignored.

The April 6 movement, prominent in the anti-Mubarak revolt, derided the result of Saturday's talks as "manipulation and a continuation of deception in the name of law and legitimacy".

A leftist group led by defeated presidential candidate Hamdeen Sabahy demanded the referendum be deferred until a consensus could be reached on a new draft, saying there could be "no dialogue while blood is being spilled in the streets".

But Muslim Brotherhood spokesman Mahmoud Ghozlan said scrapping Mursi's decree had removed any cause for controversy.

"We ask others to announce their acceptance of the referendum result," he said on the group's Facebook page, asking whether the opposition would accept "the basics of democracy".

"NOT LOGICAL"

More protests were planned near Mursi's palace, despite tanks, barbed wire and other barriers installed last week after clashes between Islamists and their rivals killed seven people.

"A constitution without consensus can't go to a referendum," said Hermes Fawzi, 28, a protester outside the palace. "It's not logical that just one part of society makes the constitution."

After the dialogue hosted by Mursi, a spokesman announced that the president had issued a new decree whose first article "cancels the constitutional declaration" of November 22. He said the referendum could not be delayed for legal reasons.

Egypt is torn between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptians just crave stability and economic recovery.

Each side has mobilized tens of thousands of supporters in rival rallies in Cairo and other cities. Mursi's foes have chanted for his downfall. Islamists fear a plot to oust the most populous Arab nation's first freely elected president.

Islamists reckon they can win the referendum and, once the new constitution is in place, an election for a new parliament about two months later. The Islamist-led lower house elected this year was dissolved after a few months by a court order.

Investors appeared relieved at Mursi's retraction of his decree, sending Egyptian stocks 4.4 percent higher on Sunday. Markets are awaiting approval of a $4.8 billion IMF loan later this month designed to support the budget and economic reforms.

The new decree removed some parts of the old one that had angered the opposition, including an article that had given Mursi broad powers to confront threats to the revolution or the nation - wording that critics said gave him arbitrary authority.

It also dropped an article that had shielded Mursi's actions from the courts until a new parliament was elected, reflecting his distrust of a judiciary largely unreformed from Mubarak's era. But the new decree said "constitutional declarations including this declaration" remained beyond judicial review.

The new decree also set procedures to form an assembly to write a new constitution if Egyptians vote this draft down.

The military, which led Egypt's transition for 16 turbulent months after Mubarak fell, told feuding factions on Saturday that only dialogue could avert "catastrophe". But a military source said these remarks did not herald an army takeover.

(Additional reporting by Tamim Elyan and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

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Mandela "comfortable" after night in hospital

JOHANNESBURG: Nelson Mandela is comfortable, after a restful night in hospital for tests, the South African government said Sunday as the former president spent his second day in hospital.

President Jacob Zuma visited the country's first black president and said he had found him "comfortable, and in good care."

It was the second time the 94-year-old and increasingly frail Mandela had been hospitalised this year. While officials are trying to allay fears over his health, they are not releasing any details of his condition.

"I think he has had a restful night, the doctors are comfortable about it, they are continuing monitoring," Mac Maharaj, Zuma's spokesman and a former fellow prisoner with Mandela, told AFP.

The tests and medical attention were consistent with his age, he added.

Medical experts say there is nothing out of the ordinary for a person of Mandela's age to require in-patient attention from time to time.

"We need to understand that he is 94 years old, and that his state of health is not genuinely of a good quality, and that from time to time he is admitted to hospitals," Mark Sonderup, vice chairman of the South African Medical Association told AFP.

The anti-apartheid hero and Nobel Peace Prize laureate was flown from his home village of Qunu in the southeast of the country to a hospital in the capital Pretoria on Saturday.

The once spry boxer, who stayed fit during his 27 years in prison by doing calisthenics in his cell, has grown increasingly frail. But his stature as one of the world's most famous and loved public figures remains undimmed.

"We wish him as speedy recovery," said Ntanyongwana Mdzeki, an octogenarian neighbour of Mandela in Qunu village. "We still need him to be around because he changed our lives."

Mandela's former political colleague Ahmed Kathrada, another apartheid-era prisoner, also wished Mandela a speedy recovery.

"Even in such mundane times as routine hospital visits, you allow South Africans from across the length and breadth of this country to unite in concern for you," said a statement by the Kathrada foundation.

Keith Khoza spokesman of the ruling ANC party, which Mandela once led, said the party wished him well.

"He is in perfect health," he added. "Everything is well. It's just that he has to undergo these regular check ups."

Officials have refused to give more details about his condition or say in which hospital he is being treated.

Security appeared to have been beefed up however at 1 Military Hospital on the outskirts of Pretoria. Military police were searching the trunks of all the cars entering the hospital complex, according to an AFP photographer.

South Africa's military has in the past been responsible for Mandela's health.

The revered statesman has not appeared in public since South Africa hosted the FIFA World Cup final in 2010.

Madiba, as he is affectionately known by South Africans, has all-but retired from public life, choosing to live in his childhood hometown of Qunu in the rural Eastern Cape.

His last hospitalisation was in February when he spent a night in hospital for a minor exploratory procedure to investigate persistent abdominal pain.

In January 2011, Mandela had the country on edge when he was admitted for two nights for an acute respiratory infection. He was discharged in a stable condition for home-based care and intense medical monitoring.

Mandela has also had prostate cancer, for which he was successfully treated in 2001. He had cataract surgery in 1994, just months after he took office as president.

After years fighting white-only rule, he shared the Nobel Peace Prize with the last white president, FW de Klerk, in 1993.

A year later, he crowned his long fight against minority rule by becoming the country's first black president at the end of apartheid.

The last pictures of Mandela published in the media were in August when he received a visit from US Secretary of State Hillary Clinton at his home.

- AFP/xq

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Square launches gift cards

Twitter and Square founder Jack Dorsey at TechCrunch Disrupt in San Francisco in September.

(Credit:
Daniel Terdiman/CNET)

Square, a leader in mobile payments, today launched a gift card service tied to its Square Wallet program and that could be aimed at attracting some would-be Apple Passbook users.

The new service appears designed to let anyone purchase a gift card for friends or family at any of the more than 250,000 businesses nationwide that accept Square Wallet, an iOS and
Android app that lets users pay automatically with their mobile device. The recipient would then redeem the value of the gift using Square Wallet on their own device.

The value of a service like this is that it avoids the use of physical gift cards and lets merchants that accept Square Wallet easily set up the transaction with Square Register, a system that lets them take credit cards, track sales and inventory, and generate analytics.

The gift card business is estimated to be worth $100 billion annually, yet tens of millions of dollars of such gifts expire every day, according to CouponTrade.com. Apple has recently attempted to get in on the gift card game by letting iOS 6 users store the cards in Passbook. Square is clearly hoping it can be the digital gift card service of choice for millions of iOS and Android users. The San Francisco startup has been developing more and more ways for users to pay. It started by providing merchants with plug-in dongles for iOS devices that let anyone take credit cards, and then launched Square Wallet and Square Register.

The company, which is already processing more than $10 billion in annualized transactions, also recently launched a partnership that lets customers pay using Square Wallet at more than 7,000 Starbucks outlets in the United States.

CNET expects to have more detail from Square later today. Please stay tuned.

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Authors exercise their "write" to self-publish

(CBS News) Even John Lennon - a Beatle - needed a publisher for his first book, "In His Own Write," back in 1964. Today authors nobody ever heard of can publish their OWN work all by themselves . . . IN THEIR OWN WRITE, as it were. Our Cover Story is reported now by Rita Braver:

Richard Paul Evans went from a 700-square-foot Salt Lake City house to a much larger one, all because of a little tale he wrote for his daughters.

Did he think he could sell it and that everyone would fall in love with his book? Negative, Evans said.

"The idea of being a novelist is really romantic, but it's kind of the same as being President of the United States - it's not gonna happen," he said.

But it DID happen for Rick Evans. You may remember "The Christmas Box," a mega hit 20 years ago.

Evans first printed only 20 copies of the book. But in the days before the Internet took off, friends started passing dog-eared copies around - and bookstores started asking for it.

"At that point I thought, you know, maybe I should send this to publishers, and they all quickly rejected the book," Evans said.

So Evans self-published, and only after his book hit the bestseller list did a major publisher buy it, for a reported $4 million! So in a way he became a godfather to a whole new generation of authors who are writing the next chapter in the saga of self-publishing.

Take Stephanie Bond, who's issuing her latest work right from her Atlanta home.

"This is actually a 'boxed set'" she was publishing, Bond said. It's called "Love Can Be Murder."

That's right, with just a few strokes Bond is creating an electronic book, or "e-book."

"That's it, I'll get an e-mail from Amazon saying, 'Your book is live and congratulations,'" Bond said.

It's one of the strongest trends in publishing, with estimates that more than 200,000 books were self-published last year - authors like Bond, by-passing the traditional publishing houses.

"For the longest time publishers have been able to dictate what is on the shelf," Bond said. "They've been the gatekeepers."

But not any more. Bond did have 60 books - mostly romance novels - published the traditional way, before she struck out on her own.

Was it a little scary? "It was," she said. "But at that point I really didn't have a choice. My publisher decided that they were going to drop the series that I had written, and I didn't have any money coming in."

But now, with romance one of the hottest categories for self-published books, her novels are flying off the virtual shelves. This past week a Bond book, "Stop the Wedding," was number 2 on Amazon's Kindle bestseller list.

Although she no longer gets advances, or upfront payments for her work, she gets royalties of up to 70 percent, instead of the 10-15 percent publishers usually pay.

And even with charging only 99 cents for some books, Bond says she made more than half a million dollars in the last year.

But not everyone sees this as a bonanza.

"When you price a book at 99 cents, $1.99, I personally think it devalues the author's time and effort," said Jamie Rabb, the chief of Grand Central Publishing, part of Hachette books. Her label puts out books by a lot of heavy hitters, and many lesser-known writers, too.

"There is almost a movement amongst some popular writers who are self-published to say, 'Don't go to publishers, they rip you off, they don't really promote your books unlike they're a really big seller.' Don't those authors have a point?" asked Braver.

"No, they don't," Rabb laughed. "I've worked in publishing a long time, and I see what happens to a book when it's acquired. First of all it's copyedited, it's proofread. They have a team of professional artists and markets that come up with a wonderful package, who try to figure out - even for books we don't spend a lot of money on - how to get them to the public."

But Raab is well aware that she is part of a shrinking industry, and even without the backing of a big-time publisher, a number of self-published authors are racking up huge sales.

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