Finance giant reports 2Q loss of $2.3b, over 3 times analysts' estimates.
Foreign-born American obtained secret info on US military sales to Taiwan.
Pentagon seeks to double size of Afghan army US Defense Secretary Robert Gates has endorsed a 17-billion dollar plan to double the size of the Afghan army over five years, the Pentagon said. Under the plan, the Afghan army would grow from 65,00 to 122,00 active duty soldiers by 2014, said Geoff Morrell, the Pentagon press secretary, adding that it also includes upgrades to Afghanistan's fledgling air corps.
F.B.I. Says It Improperly Obtained Reporters' Phone Records --Records apparently sought as part of 'terrorism' investigation The Federal Bureau of Investigation said Friday that it had improperly obtained the phone records of reporters for The New York Times and The Washington Post in the newspapers’ Indonesia bureaus in 2004. F.B.I. officials said the incident came to light as part of the continuing review by the Justice Department inspector general’s office into the bureau’s improper collection of telephone records through "emergency" records demands issued to phone providers.
US accused of backing terrorism in Pakistan Pakistan has accused the US of backing militancy within the country, saying this goes against the grain of the Washington-led global war against terror. Quoting "impeccable official sources", The News reported on Tuesday that "strong evidence and circumstantial evidence of American acquiescence to terrorism inside Pakistan" was outlined by President Pervez Musharraf, army chief General Ashfaq Pervez Kayani and Inter-Services Intelligence (ISI) chief Lt. Gen. Nadeem Taj in separate meetings with two senior US officials in Islamabad on July 12. "For reasons best known to Langley, the CIA headquarters, as well as the Pentagon, Pakistani officials say the Americans were not interested in disrupting the Kabul-based fountainhead of terrorism in Balochistan nor do they want to allocate the marvellous Predator resource to neutralise the kingpin of suicide bombings against the Pakistani military establishment now hiding near the Pakistan-Afghan border," The News said. During the meetings, the US officials were also asked why the CIA-run Predators and the US military did not swing into action when they were provided the exact location of tribal leader Baitullah Mehsud, "Pakistan's enemy number one and the mastermind of almost every suicide operation against the Pakistan Army and the ISI since June 2006", the newspaper added.
Rice on possible IDF Iran strike: U.S. has no veto over Israeli military ops United States Secretary of State Condoleezza Rice on Thursday refrained from saying the U.S. would prevent Israel from mounting a much-touted attack against Iran over the Islamic Republic's nuclear aspirations. "We don't say yes or no to Israeli military operations. Israel is a sovereign country," Rice said in an interview with Yahoo! News.
California state computers can't handle pay cut, controller says If Gov. Arnold Schwarzenegger (R) wants to issue minimum-wage checks to 200,000 state workers in less than a month, he may want to rehire any semi-retired computer programmers he terminated last week. The massive pay cut would exhaust the state's antiquated payroll system, which is built on a Vietnam-era computer language... State Controller John Chiang (D) said Monday it would take at least six months to reconfigure the state's payroll system to issue blanket checks at the federal minimum wage of $6.55 per hour, though Schwarzenegger insists such a change should occur this month.
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