Archives for FUBAR

Banks set to repay government

Ten big US banks got approval Tuesday to repay 68 billion dollars in capital from the Treasury, in the latest sign the ailing financial sector is standing on its own without government aid.

President Barack Obama welcomed the news but warned that the troubles of the sector were far from over.

Obama said that "it is worth noting that in the first round of repayments from these companies, the government has actually turned a profit."

But the president warned "this is not a sign that our troubles are over -- far from it."

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First Gitmo detainee in U.S. for trial

U.S. authorities have brought the first Guantanamo Bay detainee to the United States, flying him into New York to face trial for bombing U.S. embassies, the Justice Department said Tuesday.

The department said Ahmed Ghailani arrived in the early morning hours Tuesday. U.S. Marshals took custody of Ghailani from his military jailers and brought him to the Metropolitan Correctional Center in Manhattan. Ghailani is scheduled to appear in Manhattan federal court later Tuesday.


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Court to judges: Avoid appearance of bias

The Supreme Court ruled Monday that elected judges must step aside from cases when large campaign contributions from interested parties create the appearance of bias.

By a 5-4 vote in a case from West Virginia, the court said that a judge who remained involved in a lawsuit filed against the company of the most generous supporter of his election deprived the other side of the constitutional right to a fair hearing.


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Supremes slap freeze on Chrysler deal

Italian auto maker Fiat has vowed to stick with plans to forge an alliance with distressed US group Chrysler after a US Supreme Court decision put a temporary freeze on the transaction.

"Fiat is committed (to a tie-up with Chrysler) even after June 15," a Fiat spokesman told AFP. The company is entitled to pull out of the deal after that date if Chrysler's recovery plan has not been fully approved.


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Report finds billions of waste in Iraq, Afghanistan

The Defense Department has failed to provide adequate oversight over tens of billions of dollars in contracts to support military operations in Iraq and Afghanistan, says a new report by an independent commission investigating waste and fraud in wartime spending.

U.S. reliance on private sector employees has grown to "unprecedented proportions," yet the government has no central database of who all these contractors are, what they do or how much they're paid, the bipartisan commission found.


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Justice official warned torture would backfire

Senior Justice Department lawyers in 2005 sought to limit tough interrogation tactics against terror suspects, but were overruled.

James Comey, then the No. 2 official at the Justice Department, tried to convince Attorney General Alberto Gonzales that some of the tactics were wrong and would eventually damage the reputation of the department.

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Couple spent three decades as Cuban spies

For three decades, accused spies Walter Kendall Myers and his wife shuffled secrets to their Cuban contacts in such fear of being caught, authorities say, that he memorized top-secret documents rather than bring them into their home.

Their downfall came simply and swiftly, lured by a stranger who offered Myers a cigar.


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High Court asked to block Chrysler sale

Indiana pension funds and consumer groups asked the U.S. Supreme Court on Sunday to stop the sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA while they challenge the deal.

The separate requests, which moved the legal battle to the nation's highest court, were filed after a U.S. appeals court in New York approved Chrysler's sale to a group led by Fiat, a union-aligned trust and the U.S. and Canadian governments.


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Unemployment rate hits 9.4 percent

With companies in no mood to hire, the unemployment rate jumped to 9.4 percent in May, the highest in more than 25 years. But the pace of layoffs eased, with employers cutting 345,000 jobs, the fewest since September.

The much smaller-than-expected reduction in payroll jobs, reported by the Labor Department on Friday, adds to evidence that the recession is loosening its hold on the country. It marked the fourth straight month that the pace of layoffs slowed.


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