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Leaders in D.C. to discuss global economy

WASHINGTON, Nov. 14 (UPI) -- A Washington summit this weekend on the global financial crisis is expected to produce a "broad action plan," not a quick fix, the White House said.

The summit for leaders of developed and developing nations is one of a series of meetings to address the crisis. U.S. President George W. Bush called the summit as financial markets swooned and demands rose for a coordinated international response, the Los Angeles Times said.

While delegates may reach accord on several principles, Bush said at a White House dinner Friday evening the global financial crisis "did not develop overnight, and it will not be solved overnight."

He began his toast in the State Dining Room by offering his sympathy to Netherlands Prime Minister Jan Peter Balkenende, who left Washington and returned home when he received word his father had died. Minister of Finance Jan Cornelis de Jager attended the dinner in Balkenende's place.

There were protesters near the White House grounds as the foreign dignitaries arrived for the event.

Differences of opinion among nations over specifics of a common strategy will likely result in a go-slow approach and any agreement reached without U.S. President-elect Barack Obama probably wouldn't be effective, the Times said. Obama is not attending the summit, but is sending two representatives.

The White House said summit participants expect to agree on a broad action plan that includes establishment of working groups on issues such as overhauling financial regulations.

House grills Treasury on bailout

WASHINGTON, Nov. 14 (UPI) -- A U.S. House panel kept up the congressional criticism of the Treasury Department's handling of the $700 billion financial bailout Friday.

Rep. Dennis Kucinich, D-Ohio, chairman of the House Oversight and Government Reform's domestic policy subcommittee, said changing the direction of the bailout "breaks with congressional intent (and) contradicts public assurances" when Congress passed the bailout.

Treasury Secretary Henry Paulson this week said the rescue plan for U.S. financial markets was shifting to investing in financial institutions and away from buying toxic mortgages. He said an investment posture would provide leverage to the institutions and, ultimately, free up credit.

The reversal, Kucinich said in his opening statement, "leaves the federal government without an adequate mechanism to stem a tide of home foreclosures."

"Congress' intent in enacting the Emergency Economic Stabilization Act of 2008, the statute that created the Troubled Asset Relief Program, was in part to buy troubled mortgage assets and implement a plan to minimize risk for foreclosures," he said.

Treasury Assistant Secretary Neel Kashkari, who heads up the government's implementation of the rescue plan, defended the department's actions, saying, "It's not a stimulus, it's not an economic growth plan. It's an economic stabilization plan."

With a stronger capital base, banks "will be more confident and better positioned to play their necessary role to support economic activity," Kashkari said.

Emergency declared in California wildfire

MONTECITO, Calif., Nov. 14 (UPI) -- California Gov. Arnold Schwarzenegger declared a state of emergency in Santa Barbara County Friday as an out-of-control wildfire raged near Montecito.

The wind-driven Tea Fire, which broke out shortly after sunset Thursday, has destroyed more than 100 homes and forced thousands of residents to evacuate their neighborhoods, the Los Angeles Times reported.

Santa Barbara County Fire Chief John Scherrei said Friday a buildup of brush was the cause of the fire.

"The fuse has been lit on this brush for 30 years," he said at a news conference. "I'm surprised we haven't lost 500 homes by now."

Geri Ventura, a spokeswoman for the Montecito Fire Protection District, said officials had cleared brush from homes and taken other preventive steps to protect the area, the Times said.

"It was the luck of the wind and the weather, not the lack of preparation," she said.

Schwarzenegger said in a written statement he was making all state resources available to fire commanders and was requesting assistance from the federal government as well.

The Montecito Fire Department issued a public appeal for county residents to conserve water to maintain the levels of critically low reservoirs.

The fire had burned an estimated 2,500 acres and had caused 10 injuries, including smoke inhalation and burns, as it was pushed into residential areas the Times described as having incredible views and stands of trees that include oaks and highly flammable eucalyptus.

Montecito, located a few hours north of Los Angeles, has attracted celebrity homeowners including actors Michael Douglas and Rob Lowe, and talk show host Oprah Winfrey.

Santa Barbara Bank & Trust Co. said it would cover hotel expenses through the weekend for residents displaced by the wildfire, the Times reported.

Senate GOP may boot Stevens from caucus

WASHINGTON, Nov. 14 (UPI) -- Convicted felon Sen. Ted Stevens, R-Alaska, could be ousted from his party's Senate caucus even before his re-election bid is settled, officials said.

Senate Republicans are considering whether to expel the chamber's longest-serving Republican from the party caucus. USA Today reported Friday that Sen. Jim DeMint, R-S.C., said he would demand the vote Tuesday, when the party caucuses, even if the Alaska Senate race remains undecided or heads for a recount.

The latest vote tally indicated Stevens trailed Democratic Anchorage Mayor Mark Begich by 1,022 votes, following an Elections Division count of 14,508 ballots Friday, the Anchorage Daily News reported. An estimated 24,000 ballots remain to be counted.

The newspaper said Begich extended his lead Friday even though many of the ballots came from an area the newspaper identified as a Stevens stronghold. Elections officials said the count should be completed next week.

Kicking Stevens out of the Republican Senate caucus would strip him of committee assignments and prevent him from voting on GOP leadership and policies. Should Stevens lose the election, the caucus expulsion would affect him during next week's lame-duck session.

Stevens was convicted in October of seven felony counts for failing to include more than $250,000 in gifts and home renovations on Senate financial disclosure forms, but hasn't been sentenced. Stevens said he would appeal the verdict.