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FBI investigates four Wall Street players

WASHINGTON, Sept. 24 (UPI) -- The FBI has opened investigations into possible fraud at four entities at the center of the recent turmoil in the U.S. financial markets, officials said.

The inclusion of Fannie Mae, Freddie Mac, Lehman Brothers and American International Group insurance company brings to 26 the number of federal investigations into wrongdoing in institutions tied to the mortgage crisis, The Washington Post reported Wednesday.

The Securities and Exchange Commission has at least 50 probes into disclosure and valuation of housing-related investments at banks, credit-rating agencies and insurers, SEC Chairman Christopher Cox told the U.S. Senate Banking Committee Tuesday.

Investigators face challenges in investigating the mortgage-related cases because of their complexity, people associated with the probes told the Post.

"The reason is they involve securities ... that are all but incomprehensible even to sophisticated investors," said Timothy Coleman, a former U.S. Justice Department official in charge of the department's corporate fraud task force. "The other problem is that there is no obvious crime that was committed here."

News of the investigations into Federal National Mortgage Association, Federal Home Loan Mortgage Corp. -- Fannie Mae and Freddie Mac, respectively -- investment house Lehman Brothers and insurance giant AIG came as Congress considers a $700 billion plan Bush administration officials said would help stabilize the markets by helping lenders unload more than $700 billion of bad assets on a taxpayer-funded entity.

Poll: Economy gives Obama 9-point lead

WASHINGTON, Sept. 24 (UPI) -- The swooning U.S. economy has given Democratic presidential candidate Barack Obama a clear lead over his Republican rival, a Washington Post poll indicates.

Among likely voters, Obama now leads GOP nominee John McCain 52 percent to 43 percent, results from the Washington Post/ABC News national poll released Tuesday indicate. Immediately after the Republican National Convention, the presidential race was a virtual dead heat, with McCain at 49 percent and Obama at 47 percent.

The poll indicates more voters thought Obama would handle the economy better than McCain, 53 percent to 39 percent. Fifty percent of respondents said the economy and jobs the single most important issue that will determine their vote, up from 37 percent two weeks ago.

The poll indicates McCain and Obama now are about even among white women, with Obama closing the overall gap among white voters to within 5 percentage points.

McCain's advantages on national security issues and battling terrorism also have eroded, pollsters said.

The survey conducted telephone interviews Friday through Monday with 1,082 adults. The margin of error is 3 percentage points.

Palin: No more comments on 'Troopergate'

ANCHORAGE, Alaska, Sept. 24 (UPI) -- Republican U.S. vice presidential nominee Sarah Palin says she will no longer discuss the so-called Troopergate probe with the media.

The state investigation into Palin's move as the governor of Alaska to fire its public safety commissioner will now be regarded as a "confidential" at the request of the new lead investigator, a Palin spokeswoman told CNN Tuesday.

The Alaska state Personnel Board has hired Anchorage attorney Timothy Petumenos to lead its inquiry into whether Palin fired former Alaska Public Safety Commissioner Walt Monegan for refusing to help her settle a personal score her ex-brother-in-law, an Alaska state trooper. Palin spokeswoman Meg Stapleton said the nominee is cooperating with Petumenos.

"The governor waived confidentiality and Mr. Petumenos has just stated as of this moment that he would like for things to remain confidential," Stapleton said. "So that is why we are telling you as of today, we are no longer going to be discussing aspects of this as directed by Mr. Petumenos."

Palin, however, has dropped a pledge to cooperate with a Troopergate probe being conducted by Democrats in the Alaska Legislature, which she says has been tainted by partisan politics.

NIE on Afghanistan reportedly 'grim'

WASHINGTON, Sept. 24 (UPI) -- A classified report on Afghanistan being prepared by U.S. intelligence analysts calls the Asian country's state "grim," ABC News reports.

Sources close to the preparation of the National Intelligence Estimate said the Bush administration does not plan to declassify it before the election. It is to be presented to policy makers in the administration.

While sources did not tell ABC details about the contents, they described the news as "grim" seven years after the U.S. invasion that toppled the Taliban regime. Admiral Michael Mullen, chairman of the Joint Chiefs of Staff, gave a similarly gloomy picture in testimony before Congress.

"I'm not sure we're winning it in Afghanistan," he said.

Mullen said he was unsure if any troop increase could achieve all the U.S. objectives in Afghanistan without a change in approach.

India flooding death toll more than 2,400

NEW DELHI, Sept. 24 (UPI) -- The death toll from India's monsoon flooding rose to more than 2,400, as authorities Wednesday reported 32 more killed in northern Uttar Pradesh state.

Floods since June have ravaged several northern and eastern states, CNN reported.

In coastal Orissa in the east, the Indian navy was pressed into service to join other military units in the massive effort to rescue hundreds of thousands stranded by the turbulent Mahanadi River, other reports said.

Flooding in all of these states has affected about 20 million people and the death toll is more than 2,400, CNN, quoting federal authorities, reported.

Police in Uttrakhand state rescued a stranded seven-member Austrian trekking team, the report said.

Besides the navy, India air force and paramilitary forces are aiding in the rescue effort.