Fed cuts interest rates to boost economy
WASHINGTON, Jan. 22 (UPI) -- The U.S. Federal Reserve cut the federal funds rate 3/4 point Tuesday in a bid to stem panic on Wall street.
The action brought the rate at which banks loan money to each other overnight down to 3 1/2 percent. It also lowered the discount rate 3/4 point to 4 percent.
The Federal Open Markets Committee said in a statement it took the step, "in view of a weakening of the economic outlook and increasing downside risks to growth."
Eight of the committee members including Chairman Ben S. Bernanke approved the new rate, while William Poole of the Federal Reserve Bank of St. Louis was the sole member to oppose it. Poole said he did not believe the move was warranted before next week's FOMC regular meeting.
With inflation expected and growing fears of a market slowdown, the cut is designed to spur new growth in mortgage lending and other sectors. The committee noted short-term funding markets have shown signs of strength, but "broader financial market conditions have continued to deteriorate," the statement said.
Report: Shoddy White House e-mail archives
WASHINGTON, Jan. 22 (UPI) -- The White House has reportedly been using an inadequate and haphazard system for preserving internal e-mail communications.
The Bush administration replaced the archiving system used by the Clinton White House and, as a result, huge volumes of electronic communications have been lost, The Washington Post said Tuesday
The Post came to its conclusion through documents and the opinion of various technical experts.
The White House is required by law to preserve its communications. The Clinton administration was, in fact, under a court order to set up a system to save e-mail.
The Bush White House recorded over backup server tapes between 2001 and 2003, tapes that provided "a last line of defense" for preserving e-mail, the newspaper said.
White House officials said there was no deliberate erasing of e-mail.
Supreme Court denies Enron investment case
WASHINGTON, Jan. 22 (UPI) -- The U.S. Supreme Court refused Tuesday to hear a $40 billion investors' lawsuit against investment banks doing business with the now-defunct Enron Corp.
The justices denied a review of California Regents vs. Merrill Lynch, et al, which comes a week after its 5-3 ruling that third parties cannot be sued over corporate fraud unless investors relied on the parties when making investment decisions, Scotusblog.com reported.
In the appeal decided Tuesday, investors sought $40 billion in damages from several investment houses, saying they participated in a scheme to falsely inflate the financial condition and the stock value of the huge, scandal-ridden energy company, Enron Corp. The plaintiffs were appealing the ruling of the 5th U.S. Circuit Court of Appeals, which found the investment firms did not directly mislead investors.
Justice Anthony M. Kennedy did not participate in Tuesday's order. He wrote the majority opinion in the 5-3 decision in Stoneridge Investment Partners vs. Scientific America, et al.
Meanwhile, the court ordered the 9th U.S. Circuit Court of Appeals to reconsider its ruling allowing a scheme-liability claim involving alleged participation by business partners trying to boost the financial standing of Homestore.com Inc., Scotusblog. com said.
Poll: No clamor for independent candidate
WASHINGTON, Jan. 22 (UPI) -- A Gallup Poll released Tuesday found a lack of desire among U.S. voters for a third-party presidential candidate.
"The American public does not appear to believe it is important or necessary for an independent candidate outside of the traditional two major parties to step into the race in order to save the nation," Gallup said.
The poll found that 82 percent of Americans surveyed believed there were good candidates in the field and another 72 percent agreed that the candidates were focusing on the important issues.
Gallup said in a news release the findings showed that while Americans might be grumbling, they generally see the current crop of candidates as being capable of stepping into the White House.
The survey of 2,010 adults was conducted in mid-January and an error rate of 2 percent.
'Juno,' 'Clayton' earn Oscar nods
BEVERLY HILLS , Calif., Jan. 22 (UPI) -- "Juno," "No Country for Old Men" and "Michael Clayton" each earned numerous Oscar nods as nominations were announced in Beverly Hills, Calif., Tuesday.
The films will compete with "Atonement" and "There Will Be Blood" for the best-picture honor.
"Hairspray" was shut out of the major nominations/ Fellow critical favorites "American Gangster," "Into the Wild" and "Sweeney Todd" each earned only one nod in the top categories.
"Gangster" ensemble player Ruby Dee earned a nomination for best supporting actress, "Wild" co-star Hal Holbrook got a nod for best supporting actor and "Sweeney Todd" leading man Johnny Depp was nominated for best actor.
"Juno" star Ellen Page grabbed a nomination for best actress and the comedy's Jason Reitman was nominated for best director and Diablo Cody for best original screenplay.
George Clooney was nominated for best actor for his work in "Michael Clayton", the drama's writer-director Tony Gilroy was named in the directing and best original screenplay categories and Tilda Swinton earned a nod for best supporting actress.
Javier Bardem garnered a nod for best supporting actor for his role in "No Country for Old Men" and the thriller's co-writers-directors Ethan and Joel Coen earned nominations for best adapted screenplay and best director.
Cate Blanchett got nominations for best supporting actress and best actress for her work in "I'm Not There" and "Elizabeth: The Golden Age," respectively.
Daniel Day-Lewis was nominated for best actor for his performance in "There Will Be Blood," which also earned a best adapted screenplay nod and best director mention for Paul Thomas Anderson.
"Atonement" picked up a nomination for the best supporting actress award for Saoirse Ronan and another for best adapted screenplay.
