The U.S. Office of Thrift Supervision seized the IndyMac Bank of California, worth an estimated 32 billion dollars, after the bank’s closure in the wake of mortgage industry collapse,AFPand the Bush Administration proposed a rescue package for ailing mortgage companies Fannie Mae and Freddie Mac that would allow the Treasury to buy billions of dollars of their stock and lend them billions more to meet their short-term funding needs. The two companies’ total debt is estimated at $1.54 trillion.NYTimesAbu Dhabi bought New York City’sChrysler building for $800 million,GuardianUKand the Belgian brewer InBev planned to buy Anheuser-Busch for nearly $50 billion.AP …

Caught in the Web, 1860. Oil reached a record $139.89 a barrel. Four Western companies met with Iraq’s Oil Ministry to finalize no-bid contracts to tap Iraqi oil fields, and the Nigerian government distributed billions of dollars of windfall to corrupt state officials. Thirty-five countries and 25 oil companies met in Jeddah, Saudi Arabia, to try to fix global oil prices, which have caused strikes, riots, and inflation around the world. Many OPEC countries blamed speculators for the price increase, as did some representatives of oil companies and oil-dependent industries. United States Energy Secretary Sam Bodman blamed supply and demand, …

An American cattleman. Wildfires spread from north of Los Angeles to south of San Diego, killing at least seven people, consuming more than 1,800 homes, burning a half-million acres, setting Camp Pendleton afire, forcing about 300,000 San Diego residents to evacuate, and prompting California Governor Arnold Schwarzenegger to declare seven counties disaster areas and to mobilize the National Guard. At the Qualcomm Stadium in San Diego, typically home to the Chargers but a place of refuge for 20,000 evacuees during the fires, an air-conditioned medical tent was erected, a cell-phone provider offered free calls to anywhere in the United States, …

Michael Mukasey, President George W. Bush‘s nominee for attorney general, received a warm reception on his first day before the Senate Judiciary Committee, where he decried torture and promised a nonpartisan Justice Department. On his second day, however, he hedged on whether waterboarding is torture and argued that the president could disregard laws passed by Congress. “I don’t know,” said Senator Patrick Leahy, “whether you received some criticism from anybody in the administration last night after your testimony, but I [sense] a difference.”New York TimesNew York TimesThe Senate Intelligence Committee agreed to grant retroactive immunity to phone companies that provided …

Michael Mukasey, President George W. Bush‘s nominee for attorney general, received a warm reception on his first day before the Senate Judiciary Committee, where he decried torture and promised a nonpartisan Justice Department. On his second day, however, he hedged on whether waterboarding is torture and argued that the president could disregard laws passed by Congress. “I don’t know,” said Senator Patrick Leahy, “whether you received some criticism from anybody in the administration last night after your testimony, but I [sense] a difference.”New York TimesNew York TimesThe Senate Intelligence Committee agreed to grant retroactive immunity to phone companies that provided …

An American cattleman. Attorney General Alberto Gonzales resigned.New York TimesThe CIA’s inspector general released a report recommending that former CIA director George Tenet and other senior officials be held accountable for failing to prepare for the threat of Al Qaeda before the September 11 attacks,New York Timesand the Pentagon announced it would close Talon, the database created after September 11 to monitor and store information about security threats and peace activists. Washington PostGrace Paley died.New York TimesIn a motion filed by the Justice Department, the Bush Administration argued that the White House Office of Administration is not subject to the …

Jittery global markets brought on by the subprime mortgage crisis led the Federal Reserve to cut its discount rate on loans to banks by half a percentage point.AP via ForbesCiting America’s $1 trillion debt to China, Senator Joe Biden warned, “We have to get off that sucking off of that breast which is China.”Des Moines RegisterIt was reported that a South Carolina small-parts supplier run by twin sisters had cheated the Pentagon out of $20.5 million in shipping costs; two 19-cent washers sent to an Army base in Texas, for instance, incurred a $998,798 charge.BloombergJenna Bush, the younger of the …

In the midst of a brief thunderstorm that transfixed the New York City subway system and killed one motorist, a tornado formed over the Atlantic Ocean, grazed the north coast of Staten Island, and blew into Brooklyn, felling 292 trees, ripping roofs off dozens of buildings, and displacing 200 people from their homes. New York TimesNY1Losses among lenders to American debtors led to a one-day plunge of 387 points in the Dow Industrial Average. The Federal Reserve injected $62 billion into the market–its largest intervention since September 19, 2001–and its international counterparts followed suit. Hedge funds were in the red. …

The Cloaca Maxima, 1872 Iraqis took to the streets after the national soccer team beat Saudi Arabia 1?0 in the Asian Cup championship. At least four people were killed by “happy fire” in the midst of what were reported to be the largest spontaneous celebrations in Iraq since the fall of Saddam Hussein. “Sport brings us together while the heads of everything in Baghdad can’t bring us together for five years,” said one reveler. “If the Iraqi football team ruled us, peace would spread in our home.” Each member of the Lions of the Two Rivers will receive $10,000 from …

Killing Ground. Israel insisted it had no immediate plans for a large-scale ground invasion of Lebanon, although it seized two Lebanese towns, called up 10,000 troops to the border, and called thousands of reservists to active duty. Almost 400 people (362 Lebanese, 37 Israelis) have been killed so far in the conflict. European governments debated the proportionality of these deaths, and Syrian president Bashar Assad told the international community to stop procrastinating and broker a ceasefire.NY Times and The AustralianPresident Mahmoud Ahmadinejad of Iran predicted that Israel had “pushed the button of its own destruction.”The AustralianNY TimesThe AustralianThe AustralianNY TimesNational …