The State Update

National News

Washington Post - Massive Shifts on Wall St.
Lehman Brothers announced early Monday morning that it will file for bankruptcy, becoming the largest financial firm to fail in the global credit crisis, after federal officials refused to help other companies buy the venerable investment bank by putting up taxpayer money as a guarantee.

NY Times - Jittery Road Ahead

Wall Street and the federal government played a game of chicken over the weekend, and neither side backed down, pushing Lehman Brothers toward bankruptcy and setting off worries of a worldwide sell-off when markets open on Monday. While some feared a precipitous decline in the markets, others hoped that Bank of America’s surprise announcement Sunday that it was buying Merrill Lynch might provide enough reassurance to calm investors.

NY Times - Fed Loosens Standards on Emergency Loans

Even though the Federal Reserve refused to provide a financial backstop to potential buyers of Lehman Brothers, concerns over what may unfold in the market on Monday led it to dramatically loosen its standards on making emergency loans to major Wall Street investment banks. At the same time, a group of 10 major banks agreed to contribute $7 billion each to an emergency borrowing facility that any of the banks can tap if they run into a crisis similar to the one faced by Lehman Brothers. The fund may grow in size as more banks agree to contribute.

San Diego Union Tribune - Oil brokers sex scandal may affect drilling debate

A scandal involving sex, drugs and – uh, offshore oil drilling. It's a strange mix, and it couldn't have come at a worse time for those in Congress pressing to expand oil and gas development off America's beaches while trying to stave off an election-year rush by Democrats to impose new taxes and royalties on the oil industry.

Washington Times - Obstacles stunt Calif. offshore drilling

The Bush administration and oil companies say they want to open up the nation's coastal areas to new drilling, but in two cases - involving some of California's most promising oil fields - they are doing little to make that happen.

AP - GOP: Democrats' plan leaves most oil off limits

House Republicans attacked a Democratic offshore drilling plan Friday for including a 50-mile coastal buffer that they said would leave untouched most of the 18 billion barrels of oil in waters now off-limits to energy companies.

The Hill - Lower oil prices unlikely to stop calls for drilling

A drop in oil prices has taken pressure of Democrats with weeks left before the election, although not enough to slow calls for expanding offshore drilling.

Roll Call - House Salary ‘Gamble’ Fails

House appropriators plan to take millions of dollars from various legislative branch projects — including the Capitol Visitor Center — to help pay for the raises they gave to House staffers about seven months ago.

Politico - Poll: Public opposes increased power

Americans strongly oppose giving the president more power at the expense of Congress or the courts, even to enhance national security or the economy, according to a new poll.

The Associated Press-National Constitution Center poll of views on the Constitution found people wary of governmental authority after years of controversy over the Bush administration's expansion of executive power, and especially skeptical of increasing the president's powers.

LA Times - On the lookout for immigration raids

Activist networks have sprung up to prepare illegal immigrants for possible federal activity in their communities.

CQ - Lobbying for Lame-Duck Session

Lobbyists for trade groups, companies and municipalities big and small have quietly put out word on Capitol Hill that they want more time to get their priorities enacted.

Meet the newest coalition in Washington: lobbyists who see an advantage in a post-election congressional session.

CQ - Stimulus Package May Include Medicaid Dollars

House Democrats are strongly considering providing billions of dollars to state governments by increasing their reimbursements for expenses under Medicaid, Democratic aides say.

International News

NY Times - Afghanistan Is in Its Worst Shape Since 2001, European Diplomat Says

One of the most experienced Western envoys in Afghanistan said Sunday that conditions there had become the worst since 2001. He urged a concerted American and foreign response, even before a new American administration took office, to avoid “a very hot winter for all of us.”

LA Times - Georgia war sparks political battle in Ukraine

The ruling coalition is near collapse as the president and the prime minister spar over whether to treat Russia as foe or friend.

USA Today - Stocks fall in U.S., Europe

U.S. stocks fell moderately at the opening bell Monday, then got worse, after the stunning reshaping of the Wall Street landscape. The Dow Jones industrials opened down less than 100 points but soon was off nearly 300.

NY Times - As Economy Slows, China Eases Monetary Policy

After five years of tightening monetary policy to fight inflation, China abruptly reversed course Monday, cutting interest rates and easing bank lending restrictions in response to signs that growth in the Chinese economy was slowing.

LA Times - Mexico safety chief's tough job: policing the police

Drug money and corruption have long tainted law enforcement. But Genaro Garcia Luna, with President Calderon's backing and the aid of technology, may succeed in reforming the system, analysts say.

LA Times - Gates arrives in Baghdad, points to risks of troop withdrawals

Future troop cuts in Iraq will have to be done carefully, even as the shrinking numbers of forces compel a shift in the U.S. mission, Defense Secretary Robert M. Gates said.

Gates arrived in Baghdad today in advance of Tuesday's change of command ceremony, when Lt. Gen. Raymond T. Odierno is scheduled to takes over for Gen. David H. Petraeus as the top U.S. commander.

State News

San Francisco Chronicle - Top Calif. lawmakers say they have budget deal

The state's legislative leaders on Sunday announced a breakthrough in California's record budget impasse, potentially ending a stalemate that set a new standard for dysfunction in a Capitol with a long history of blown budget deadlines. It was not immediately clear whether the tentative deal would be accepted by Gov. Arnold Schwarzenegger, who has said he would not sign a budget that failed to include long-term reform.

San Diego Union Tribune - Surprise twist in casino rules

Brown sides with tribes against gaming controls

NC Times - Area codes leaping geographic bounds

Telephone area codes are being liberated from the areas they once represented. As the codes leave geography behind, a multitude of new services are arising, industry observers say.

Contra Costa Times - Is Schwarzenegger vulnerable enough to be ousted?

Most of the essentials are in place for a recall campaign against Gov. Arnold Schwarzenegger: a sagging economy, a historically late budget, a massive deficit, high voter dissatisfaction, a brewing revolt from within the governor's party, and a sponsor that has enough money to put the question on the ballot.