Caught in the Web, 1860. Federal agents arrested hedge-fund manager Bernard Madoff and charged him with running a $50 billion Ponzi scheme, possibly the largest in Wall Street history. Madoff faces a maximum penalty of 20 years in prison and $5 million in fines; he had hoped to distribute his last $200 million to friends, family, and favored employees before his arrest, but was turned in by his sons. SECNYTBloombergWSJNYTRepublicansenators killed a plan to loan $14 billion to American automakers, and the White House said it would consider other options to save the industry and as many as three million …

At least 150 Iraqis were killed by a truck bomb in northern Iraq in possibly the deadliest bombing since the United States invaded in 2003, and it was reported that, despite a police security drive, the number of unidentified bodies found in Baghdad had increased sharply in June. New York TimesBBCnews.comAustralia’s defense minister, Brendan Nelson, admitted that securing oil is one of the reasons Australian troops stay in Iraq. “This government,” said Labor leader Kevin Rudd, “simply makes it up as it goes along.”BBCnews.comThe White House rejected demands to hand over documents related to the firings of eight U.S. attorneys …

“Into the palace parlor they stepped; her hand in his paw the old bruin kept,” 1875 Thirty-seven American soldiers were killed in Iraq, ending the deadliest month for U.S. forces in the past two-and-a-half years. U.S. military commanders were negotiating cease-fires with Iraqi militants, Turkish troops shelled northern Iraq, and in Baghdad the country’s preeminent calligrapher was shot to death. icasualties.orgAP via breitbart.comAP via International Herald TribuneBBCIraq was found to be the world’s 121st least peaceful country out of 121 countries; the United States ranked 96, below Yemen but above Iran.BBCThe crowd at the Miss Universe competition in Mexico City …

“Into the palace parlor they stepped; her hand in his paw the old bruin kept,” 1875 The U.S. director of national intelligence released a declassified version of a new National Intelligence Estimate on Iraq; the report found that “the term ‘civil war’ accurately describes key elements of the Iraqi conflict” and that “widespread fighting could produce de facto partition.”Office of the Director of National IntelligenceIraqi refugees were flooding Syria and Jordan, where they now account for 5 and 12 percent of those countries’ total populations,AP via Yahoo!NEWSand a massive bombing in a Shiite neighborhood in Baghdad killed 130 people, making …

“Into the palace parlor they stepped; her hand in his paw the old bruin kept,” 1875 Two hundred fifteen people were killed in a massive bombing and mortar attack on a Shiite neighborhood in Baghdad, marking Iraq’s largest single-day death toll since the U.S. invasion. The killings prompted Shiite militiamen to seize and burn alive as many as twenty-four Sunnis; other Shiite residents of the capital stoned Prime Minister Nouri al-Maliki. “It’s all your fault!” one man shouted.AP via MSNBCReutersElsewhere in Baghdad, insurgents set fire to a U.S. base, APand the host of a popular satirical Iraqitelevision show was found …

I. Lewis “Scooter” Libby, Vice President Dick Cheney’s former chief of staff, pleaded not guilty to charges of obstruction of justice, perjury, and making false statements.The Los Angeles TimesSenator Harry Reid and Representative Nancy Pelosi called for Karl Rove to be stripped of his security clearance.KHON2/Fox NewsJudith Miller was expected to return to her job at the New York Times.The New York ObserverSir Christopher Meyer, the former British ambassador to the United States, said that the Iraq war was inspiring acts of terrorism: “God,” he said, “it does not look good.”BBC NewsThe FBI, under the Patriot Act, was issuing 30,000 …

In Iraq at least one hundred Iraqis and eleven U.S. troops were killed in a span of four days. More than twenty car bombs were detonated, and in one case, a suicide bomber drove a car bomb into a Kurdish funeral tent, killing at least twenty-five people. Los Angeles TimesAccording to General Richard Myers, the Chairman of the Joint Chiefs of Staff, the strength of the Iraqi militant movement has not diminished during the past year.The GuardianArab newspapers reported that Donald Rumsfeld had a secret visit with Saddam Hussein and offered to free him if Hussein called for a ceasefire …