Computer spies have repeatedly breached the Pentagon's costliest weapons program, the $300 billion Joint Strike Fighter project, The Wall Street Journal reported on Tuesday.
The newspaper quoted current and former government officials familiar with the matter as saying the intruders were able to copy and siphon data related to design and electronics systems, making it potentially easier to defend against the plane.
The spies could not access the most sensitive material, which is kept on computers that are not connected to the Internet, the paper added.
The U.S. Treasury's plan to purge toxic assets from banks' balance sheets is vulnerable to fraud and abuse and needs tough rules against conflict of interest, the government's bailout watchdog said on Tuesday.
Neil Barofsky, the special inspector general for the $700 billion Troubled Asset Relief Program (TARP), said in a report that subsidies for public-private investment partnerships (PPIP) to buy assets could expose taxpayers to higher losses without corresponding increases in the potential for profit.
For the first time, an accused domestic terrorist is being added to the FBI's list of "Most Wanted" terror suspects.
Daniel Andreas San Diego, a 31-year-old computer specialist from Berkeley, Calif., is wanted for the 2003 bombings of two corporate offices in California.
Authorities describe San Diego as an animal rights activist who turned to bomb attacks and say he has tattoo that proclaims, "It only takes a spark."
Treasury Secretary Timothy Geithner faces a slew of questions about his plans to shore up banks while a watchdog agency warns that Obama administration initiatives could increasingly expose taxpayers to losses.
Geithner is scheduled to testify Tuesday before the Congressional Oversight Panel for the government's $700 billion financial rescue program.
CIA interrogators used the waterboarding technique on Khalid Sheik Mohammed, the admitted planner of the September 11 attacks, 183 times and 83 times on another al Qaeda suspect, The New York Times said on Sunday.
The Times said a 2005 Justice Department memorandum showed that Abu Zubaydah, the first prisoner questioned in the CIA's overseas detention program in August 2002, was waterboarded 83 times, although a former CIA officer had told news media he had been subjected to only 35 seconds underwater before talking.
The United States "will not join" the UN conference on racism starting Monday in Geneva because its final declaration still includes language the US "is unable to support," the State Department said.
"Unfortunately, it now seems certain these remaining concerns will not be addressed in the document to be adopted by the conference next week. Therefore, with regret, the United States will not join the review conference," State Department spokesman Robert Wood said in a statement.
The first use of waterboarding and other harsh treatment against suspected Al-Qaeda operative Abu Zubaydah was ordered by senior Central Intelligence Agency officials over objections from his interrogators, The New York Times reported Saturday.
Citing unnamed former intelligence officials and a footnote in a newly released legal memorandum, the newspaper said the harsh interrogation techniques had been ordered despite the belief of interrogators that the prisoner had already told them all he knew.
In the aftermath of the Sept. 11 attacks, CIA operatives were allowed to shackle, strip and waterboard terror suspects. Now, President Barack Obama has assured these operatives that they will not be prosecuted for their rough interrogation tactics.
At the same time, Obama's attorney general offered the operatives legal help if anyone else takes them to court over the harsh interrogation methods that were approved by the Bush administration.
There are several disturbing aspects to the revelations that the National Security Agency went well beyond the generous legal limits set by Congress to intercept Americans' private phone calls and e-mail messages.
The New York Times, which broke the story, said its sources described the practice as "significant and systemic" and possibly inadvertent. And it's unclear whether the agency actually listened to or read the calls and messages it swept up.
The U.S. Supreme Court is about to get involved in one of the most difficult of American subjects -- middle schools and the care of their inmates who as they emerge half baked from babyhood more resemble zoo animals.