From NBC's Ali Weinberg
Former Christie aide resigns
The No. 2 official in New Jersey's U.S. Attorney's office resigned yesterday, less than two weeks after news broke that she accepted a loan from former boss and current Republican gubernatorial nominee Chris Christie.
 
Christie and his wife gave Michele Brown a $46,000 mortgage loan when Christie was U.S. Attorney. Brown stepped down because her "financial ties to her former boss raised questions about her ability to be impartial in her duties." Christie asserts, however, that his loan to Brown and her husband was "a helping hand to friends, and that he and Ms. Brown have not discussed the inner workings of the office, or its cases, since [Christie] stepped down last year," the New York Times reported yesterday. 
 
In her resignation letter, Brown wrote, "I know how important it is that we continue to pursue our mission, and I do not want to become a distraction."
 
The campaign of Gov. Jon Corzine, Christie's opponent, continued to criticize the matter. "Michele Brown's resignation today does nothing to put to rest questions about Christie's conduct both in and outside of the U.S. attorney's office," said Corzine press secretary Elisabeth Smith.
 
New Christie video links Corzine to Lehman Bros.
A new Web ad released by the Christie campaign links Corzine to Gordon Gekko, the villain of the movie "Wall Street." Flanked by the infamous Gekko line "greed is good," the ad focuses on the New Jersey State Investment's Council, who invested pension funds with Lehman Brothers three months before its collapse, costing the fund about $118 million, according to Matt Friedman of PolitickerNJ.  
 
 DNC spokesman Michael Czin "called the ad hypocritical," saying: "Democrats aren't going to be lectured on ethics and business practices by a Bush U.S. Attorney who used his position to award tens of millions of dollars in no-bid contracts to hacks and political cronies like John Ashcroft. And it appears when Christie wasn't busy funneling money to his friends he was violating the Hatch Act and evading taxes."
 
McDonnell up with new TV ad
On the same day Virginia Democratic gubernatorial nominee Creigh Deeds released a radio spot featuring President Obama, Republican candidate Bob McDonnell's camp says it's airing a TV ad (in all markets except pricey Northern Virginia) that touts McDonnell's plan to "make Virginia the energy capital of the East Coast" by creating "new green job zones to help innovators create new energy and jobs" and promote "safe offshore drilling."

From NBC's Mark Murray
On a day when all other political news is going to be buried by Ted Kennedy's passing, South Carolina Lt. Gov. Andre Bauer (R) is going to make a statement at noon ET -- in which he'll call for Gov. Mark Sanford (R) to resign, the AP reports. 

"South Carolina's lieutenant governor will ask embattled Gov. Mark Sanford to resign at a news conference Wednesday, a spokesman said. Lt. Gov. Andre Bauer will agree to stay out of next year's governor's race if Sanford steps down, an offer he first made in June after his fellow Republican admitted a yearlong affair with an Argentine woman."

From NBC's Courtney Kube
A U.S. defense official confirms that the late Ted Kennedy will be buried at Arlington Cemetery -- date and time still TBD.

The official expects he will be buried at the John F. Kennedy gravesite, but that is also still TBD.

Any sitting or former senator is eligible for burial at Arlington Cemetery, but Kennedy's military service alone does not qualify him for burial there since he did not retire from the Armed Forces. His military service alone only qualifies him to be cremated and inurned at the Columbarium at Arlington.

Kennedy served as a Private First Class in the Army, serving from June 25, 1951 to March 27, 1953. He was honorably discharged.  

From NBC's Athena Jones
CHILMARK, Ma. -- President Obama joined politicians and organizations from across the country and around the world in hailing "Lion of the Senate" Ted Kennedy, who passed away early this morning in nearby Cape Cod at the age of 77.

Calling Kennedy an extraordinary leader, a counselor, and a friend, Obama said he was "one of most accomplished Americans ever to serve our democracy" and that the "good he did lives on."

"The outpouring of love, gratitude, and fond memories to which we've all borne witness is a testament to the way this singular figure in American history touched so many lives," the president said. "His ideas and ideals are stamped on scores of laws and reflected in millions of lives."

Marvin Nicholson, the president's trip director, woke Obama up just after 2:00 am ET to tell him Sen. Kennedy had died. The president spoke with Mrs. Kennedy about 25 minutes later.

Obama -- who was born just before Kennedy entered the Senate -- said the Kennedy name was "synonymous with the Democratic Party" and that no one in the Senate engendered greater respect or affection on both sides of aisle. "His seriousness of purpose was perpetually matched by humility, warmth, and good cheer," he said. "He could passionately battle others and do so peerlessly on the Senate floor for the causes that he held dear, and yet still maintain warm friendships across party lines."

Kennedy endorsed Obama on Jan. 28, 2008, a crucial time during the then-Illinois senator's presidential nomination battle against Hillary Clinton -- after Obama had won the contests in Iowa and South Carolina, and Clinton had won in New Hampshire and Nevada. 

President Obama last saw Kennedy in Washington on April 21, when he signed a national service bill named for the Massachusetts icon. The pair were also together to celebrate Kennedy's birthday at the Kennedy Center for the Performing Arts on March 8, the White House said. They spoke on June 2 about health care and on July 10 after the President gave the Pope a letter from the senator.

Earlier this month, the president awarded Kennedy the 2009 Presidential Medal of Freedom, America's highest civilian medal. Kara Kennedy, his daughter, came to the White House to accept the medal on behalf of her father.

After his statement this morning, the First Family headed to a private beach here on the island of Martha's Vineyard where they are vacationing for the week.

From NBC's Mark Murray
Even if you disagreed with his political views, the late Ted Kennedy was adored by both Democratic and Republican lawmakers -- as these statements below suggest.

Democratic Sen. Chris Dodd: "I'm not sure America has ever had a greater Senator, but I know for certain that no one has had a greater friend than I and so many others did in Ted Kennedy."

Democratic Sen. John Kerry: "We have known for some time that this day was coming, but nothing makes it easier. We have lost a great light in our lives and our politics, and it will never be the same again."

Senate Minority Leader Mitch McConnell: "No one could have known the man without admiring the passion and vigor he poured into a truly momentous life. We send our deepest expressions of sympathy to Vicki, his children, and the entire Kennedy family."

House Minority Leader John Boehner: "Ted Kennedy was my friend. While there were few political issues on which he and I agreed, our relationship was never disagreeable, and was always marked by good humor, hard work, and a desire to find common ground."

GOP Sen. John McCain: "What is harder for us to express is the emptiness we will feel in the Senate in his absence. Even when we are all crowded in the chamber for a vote, engaged in dozens of separate conversations, it will seem a quiet and less interesting place, in the knowledge that his booming voice, fueled by his passion for his convictions, will never encourage or assail or impress us again. I will miss him very much."

Former President George W. Bush: "He was a man of passion who advocated fiercely for his convictions. I was pleased to work with Senator Kennedy on legislation to raise standards in public schools, reform immigration, and ensure dignity and fair treatment for Americans suffering from mental illness. In a life filled with trials, Ted Kennedy never gave in to self-pity or despair. He maintained his optimistic spirit, his sense of humor, and his faith in his fellow citizens. He loved his family and his country - and he served them until the end. He will be deeply missed."

Mitt Romney, who lost to Kennedy in a bid for the Senate: "In 1994, I joined the long list of those who ran against Ted and came up short. But he was the kind of man you could like even if he was your adversary. I came to admire Ted enormously for his charm and sense of humor - qualities all the more impressive in a man who had known so much loss and sorrow. I will always remember his great personal kindness, and the fighting spirit he brought to every cause he served and every challenge he faced. I was proud to know Ted Kennedy as a friend, and today my family and I mourn the passing of this big-hearted, unforgettable man."

*** UPDATE *** Susan Collins, Republican senator from neighboring Maine: "With the passing of Senator Kennedy, our country has lost a giant of the Senate, and those of us who served with him have lost a warm, big-hearted, generous friend. Ted served the people of his state and our nation through five decades. His remarkable record of legislation has touched virtually every American. I worked most closely with Ted on education issues, joining with him to expand Pell grants which help low-income families afford college. We also worked together for years on the Senate Armed Services Committee where we advocated for a strong Navy. But my warmest memories of Ted are personal. He loved the coast of Maine and once told me there was no better sailing than Penobscot Bay. We shared pride in our Irish heritage. Ted once inscribed a book written by his mother for my mother. It was those countless kind gestures that I will remember most about Ted. I will miss Ted so much.

From NBC's Mark Murray
Today's political news is dominated by Sen. Ted Kennedy's passing. The Boston Globe: "Senator Edward M. Kennedy, who carried aloft the torch of a Massachusetts dynasty and a liberal ideology to the citadel of Senate power, but whose personal and political failings may have prevented him from realizing the ultimate prize of the presidency, died at his home in Hyannis Port last night after a battle with brain cancer. He was 77."

The New York Times: "Mr. Kennedy had been in precarious health since he suffered a seizure in May 2008. His doctors determined the cause was a malignant glioma, a brain tumor that often carries a grim prognosis... While Mr. Kennedy was physically absent from the capital in recent months, his presence was deeply felt as Congress weighed the most sweeping revisions to America's health care system in decades, an effort Mr. Kennedy called 'the cause of my life.'"

Video: NBC's Domenico Montanaro on MSNBC talks about how Democrats have missed Ted Kennedy's voice on health care, as well as what to watch today in politics.

The Wall Street Journal: "Mr. Kennedy was embraced early on as an heir to a heroic legacy and long seen as a president-in-waiting. But his own mistakes -- especially a car crash near Chappaquiddick Island in 1969, in which a campaign aide died -- helped cost him the presidency when he sought it in 1980. In later years, episodes like the rape trial of his nephew William Kennedy Smith in 1991 gave him the reputation of an irresponsible playboy. But Mr. Kennedy never entirely lost his standing, and he rebuilt his reputation sufficiently so that when candidate Barack Obama won the senator's endorsement in the Democratic primaries last year, it was seen as a major coup and helped shift the race's dynamic."

Per NBC's Kelly O'Donnell, sources close to the late senator say that extended family came throughout the early evening to Massachusetts. His immediate family was also at his bedside. Kennedy is survived by wife Victoria, three children Kara, Edward Jr. and Patrick, two stepchildren, Curran and Caroline and grandchildren. Details on his funeral and wake arrangements "won't be finalized for the next day or so."

The AP notes that unless Massachusetts' law is changed, a replacement for Kennedy in the Senate won't come for another five months. "Massachusetts law requires a special election for the seat no sooner than 145 days and no later than 160 days after a vacancy occurs. The law bans an interim appointee. The law was changed in 2004, when Sen. John Kerry, D-Mass., became his party's presidential nominee and Republican Mitt Romney was the state's governor. Before the change, the governor would have appointed a replacement to serve until the next general election."

More: "Despite speculation that Kennedy's wife, Vicki, could assume his Senate seat, family aides have said she is not interested in replacing her husband either temporarily or permanently. One of Kennedy's nephews, former Rep. Joseph P. Kennedy II, has also been described as interested. Any race to succeed Kennedy would be crowded and fiercely fought."

"Other potential Democratic candidates include state Attorney General Martha Coakley, U.S. Reps. Stephen Lynch, Michael Capuano, Edward Markey, James McGovern and William Delahunt, and former Rep. Martin Meehan, now chancellor of the University of Massachusetts at Lowell. On the Republican side, potential candidates include Cape Cod businessman Jeff Beatty, former Lt. Gov. Kerry Healey, former U.S. Attorney Michael Sullivan and Chris Egan, former U.S. ambassador to the Organization for Cooperation and Development."

In other news, Gov. Charlie Crist (R) is expected to name a successor to retiring Sen. Mel Martinez (R) by week's end. "Who will get the nod is anybody's guess, although it will come from a shortlist of eight applicants. Crist said Tuesday he hasn't narrowed that list, which doesn't feature a clear front-runner or household name in Florida politics."

From NBC's Mark Murray
Sen. Ted Kennedy -- a legislative lion of the Senate and brother to John F. Kennedy and Robert F. Kennedy -- passed away late last night. He was 77.

"We've lost the irreplaceable center of our family and joyous light in our lives, but the inspiration of his faith, optimism, and perseverance will live on in our hearts forever," his family said in a statement. "We thank everyone who gave him care and support over this last year, and everyone who stood with him for so many years in his tireless march for progress toward justice, fairness and opportunity for all. He loved this country and devoted his life to serving it. He always believed that our best days were still ahead, but it's hard to imagine any of them without him."

President Obama, whom Kennedy endorsed during the Democratic primaries, released his own statement, saying that he and his wife were "heartbroken" about the news. "For five decades, virtually every major piece of legislation to advance the civil rights, health and economic well being of the American people bore his name and resulted from his efforts," he said. "I valued his wise counsel in the Senate, where, regardless of the swirl of events, he always had time for a new colleague. I cherished his confidence and momentous support in my race for the Presidency. And even as he waged a valiant struggle with a mortal illness, I've profited as President from his encouragement and wisdom."

Republican Sen. Orrin Hatch, one of Kennedy's closest friends in the Senate, added: "Today America lost a great elder statesman, a committed public servant, and leader of the Senate. And today I lost a treasured friend."           

From NBC's Domenico Montanaro
A Democratic fundraiser was arrested and charged with one count of bank fraud today.

Bloomberg reports (hat tip: conservative blog RedState) that "Hassan Nemazee, chairman of Nemazee Capital Corp. and a fundraiser for President Obama and Hillary Clinton, was arrested on charges that he tricked Citigroup Inc. into lending him as much as $74 million using phony documents. Nemazee got the loan by telling Citibank that he held accounts with hundreds of millions of dollars which could serve as collateral, U.S. Attorney Preet Bharara said today in a statement. He used fake addresses and phone numbers to mislead the bank, prosecutors said."

Nemazee was an Obama bundler, DSCC national campaign finance chairman, John Kerry and Bill Clinton donor. He raked in more than $500,000 for candidate Obama.

One irony here: He's represented by Bracewell & Giuliani (yes, that Giuliani) attorney Marc Mukasey (of yes, that Mukasey family. He's the former Bush attorney general's son).

Nemazee apparently "repaid the loan to Citibank yesterday, a day after he was interviewed by Federal Bureau of Investigation agents, prosecutors said," per Bloomberg. "The interview took place at Newark Liberty International Airport as Nemazee was checking in for a flight to Rome."

This is one of those stories that would have been political fodder during a campaign, but you likely won't hear much about it today other than a few blog posts. Just asking, but what does that then say about the actual relevance/implications for candidates of stories like these -- despite their shiny metal object status' during campaigns?

From NBC's Domenico Montanaro
Long Island Rep. Pete King's not one to mince words.

Remember this?

[YouTube:2RmneMDZlWQ]

Now, a fuming King tells Ben Smith over at Politico that "it's bulls---" that the Justice Department has decided to open an  investigation -- however narrowly focused -- on CIA interrogation abuses.

He also called it "disgraceful" and "chided his own party for what he described as a weak response to the move...."

"It's bulls***. It's disgraceful. You wonder which side they're on," King said, adding that this is a "declaration of war against the CIA, and against common sense."

From NBC's Domenico Montanaro
So Wyden-Bennett's going nowhere, but the Club for Growth is slapping Utah Sen. Bob Bennett for thinking it. Well, trying it.

Roll Call: "Sen. Bob Bennett (R-Utah) is taking fire from the Club for Growth in a new television ad and letter-writing campaign for his efforts to push the Healthy Americans Act... The ad, which is launching Tuesday in Utah, is part of the club's $1.2 million campaign to 'highlight the dangers of government-run health care,' according to a release from the anti-tax group. 'Senator Bennett's bill is a health care nightmare,' said Club for Growth President Chris Chocola. 'Rather than lowering the cost of care by increasing competition, it turns control of our health insurance system over to the government.'"

From NBC's Ali Weinberg
Republican gubernatorial candidate and former U.S. Attorney Chris Christie yesterday pushed back on Gov. Jon Corzine's charge that a $46,000 loan Christie made to a former staffer "tarnishes [Christie's] credentials as an ethics reform candidate."
 
Calling Corzine's accusations "fake hysteria and fake outrage" on a conference call with reporters, Christie brought up Corzine's record during his tenure at Goldman Sachs, saying Corzine "lobbied then-President Bill Clinton for a loophole that enabled Enron to get tax breaks before the company's collapse."
 
Goldman did, in fact, sell financial products called monthly income preferred shares, or MIPS, to Enron in the 1990s, while Corzine was a partner at the investment firm. According to a 2005 Philadelphia Inquirer article, "the MIPS allowed Enron to create partnerships that could issue debt and raise money free of certain taxes."  
 
But Corzine's press secretary at the time said that "Enron's secret partnerships and hidden losses were the problem," not the MIPS. Also, Goldman stopped doing business with Enron by 1994 before "the problematic Enron partnerships exploded in the late 1990s," the Inquirer wrote. Corzine did lobby President Clinton to keep the tax breaks for the MIPS, but after Enron took its business to another investment banker.
 
While this allegation first came to light during Corzine's successful 2005 bid for governor against Republican Doug Forrester, Christie said the issue hasn't "been fully vetted, and we need to see it in the context of his conduct as governor." 

Corzine called the attack "a repeat and misframing of an issue we discussed over and over again in 2005," again calling attention to Christie's discussions he had with Bush White House advisor Karl Rove about running for governor.

*** UPDATE *** A conservative pollster shows Christie up just 3 points (39%-36%) among "definite voters" and Corzine actually up 2 among likely voters (37%-35%).

Deeds features Obama in radio ad
Democratic gubernatorial candidate Creigh Deeds releases his third radio ad today, to be featured on African-American radio stations in Richmond, Roanoke and Hamptons Roads. The ad features excerpts from President Obama's speech in Tysons Corner, VA, where he said Deeds was "cut from the same cloth" as former Virginia Democratic Govs. Mark Warner and Tim Kaine.

*** CORRECTION *** A previous version of this post indicated this was Deeds' first radio ad. It's not; it is his third overall and second on predominantly African-American radio.

From NBC's Domenico Montanaro
The first official results are starting to come in in Afghanistan's election. With just 10% in, incumbent president Hamid Karzai is up just 40.6%-38.7% over Dr. Abdullah Abdullah, the New York Times reports.

"The inconclusive results, reported by the Independent Election Commission, were sharply at odds with claims by aides to President Karzai on Monday that he had won an overwhelming majority in the voting last Thursday. If no candidate receives a majority, a runoff election would be required."

A candidate needs 50% to win outright and avoid a runoff. The country's finance minister, a Karzai appointee, earlier this week claimed Karzai had obtained a whopping 68% of the vote. Karzai got 55% in his first run and his popularity has fallen.

Af/Pak special envoy Richard C. Holbrooke told the Times, "Ten percent of the vote is in. Imagine an American election with 10 percent in. You don't call it with 10 percent. Anyone who extrapolates at this point is less than accurate."

From NBC's Athena Jones
OAK BLUFFS, Mass. -- President Obama took a break from his vacation on Tuesday to nominate Benjamin Bernanke to a second term as chairman of the Federal Reserve.

The White House said the announcement was intended to put to rest speculation about whether Bernanke, a Bush appointee who is an expert on the Great Depression, would be kept on. One official said the president wanted to keep his economic team intact as they work to ensure an economic recovery. Chief of Staff Rahm Emanuel, Treasury Secretary Timothy Geithner and Larry Summers, the director of the National Economic Council, all recommended to the president that he keep Bernanke on, the official said.

"Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and outside-the-box thinking that has helped put the brakes on our economic freefall," Obama told the reporters gathered in a a high school gym here. "Almost none of the decisions that he or any of us made have been easy."

The president went on to say that the actions taken to stabilize the financial system, restructure the auto industry and jump-start credit markets were "steps of necessity, not choice" that helped bring the economy back from the brink, though he acknowledged the country was a long way from a full recovery and pledged to work until people who want jobs can get them and companies that need loans can get them.

But the news came on the same day the administration announced an increase in its budget deficit projections to $9 trillion over the next 10 years from $7.1 trillion, news the president's critics are likely to use to support their argument that the president's programs are too expensive and threaten the nation's fiscal stability.

Obama argues his push for an energy bill and a massive revamp of the nation's health care system, along with updated financial regulations are essential to building a stronger economic foundation and helping to bring down deficits in the future. Obama vowed to continue to push his agenda.

"Much like the decisions we've made so far, the steps we take to build this new foundation will not be easy. Change never is," he said. "As Ben and I both know, it comes with debate and disagreement and resistance from those who prefer the status quo -- and that's ok, because that's how democracy is supposed to work. But no matter how difficult change is, we will pursue it relentlessly because it is absolutely necessary to lift this country up and create an economy that leads to good jobs, broad growth, and a future our children can count on."

The president will be vacationing here on Martha's Vineyard, an island off the coast of Massachusetts, for the entire week. After his brief statement to the press -- during which he took no questions -- Obama headed to a nearby golf course for his second day of golfing.

Bernanke, who thanked the president for his support during brief remarks, was headed back to Washington.

From NBC's Domenico Montanaro
President Obama re-nominated Fed Reserve Chairman Ben Bernanke. He still has to go through confirmation and Banking Chairman Chris Dodd, who is one of the most vulnerable Senate Democrats in the country right now, said he is prepared to give Bernanke a tough hearing.

The announcement comes on the same day as the administration released its mid-session budget review, which was delayed last month. The budget forecast showed a show smaller-than-once-thought deficit in 2009 and 2010, but a higher than estimated $9 trillion long-term deficit. 
 
The CIA interrogation probe has stirred the predictable food fight here in Washington, splitting Democrats and Republicans. NBC's Andrea Mitchell obtained a statement from former Vice President Dick Cheney just after midnight. Cheney used the opportunity to again question the president's ability to keep the country safe.

"The documents released Monday clearly demonstrate that the individuals subjected to Enhanced Interrogation Techniques provided the bulk of intelligence we gained about al Qaeda," Cheney said in the statement. "This intelligence saved lives and prevented terrorist attacks. These detainees also, according to the documents, played a role in nearly every capture of al Qaeda members and associates since 2002. The activities of the CIA in carrying out the policies of the Bush Administration were directly responsible for defeating all efforts by al Qaeda to launch further mass casualty attacks against the United States. The people involved deserve our gratitude. They do not deserve to be the targets of political investigations or prosecutions. President Obama's decision to allow the Justice Department to investigate and possibly prosecute CIA personnel, and his decision to remove authority for interrogation from the CIA to the White House, serves as a reminder, if any were needed, of why so many Americans have doubts about this Administration's ability to be responsible for our nation's security."

In South Carolina, there are more ethically questionable flights taken by Gov. Mark Sanford. A Republican state senator found that Sanford had taken business class trips to Europe, which cost the state $14,000 more than economy class.

In New York, Rudy Giuliani is STILL mulling a bid to run for governor. According to The New York Times, he's expected to make a decision in 30 to 60 days. He has a couple of things to weigh here before jumping in: the Times points out his business interests, but above all, this is about politics. According to various polls, he'd have a great shot against David Paterson, but not as much against Andrew Cuomo. Cuomo has so far been coy about whether he'll run. He's said he won't, but his lead in the polls may prove too enticing to stay away. Remember, in 2006, Barack Obama said he wasn't running for president in 2008.
 
In Massachusetts, state Democrats now appear more open to Ted Kennedy's "plea for a temporary appointment to any US Senate vacancy." The state senate president, who had previously (privately) been opposed to the idea "has given him the green light to round up the necessary votes."

Early analysis of next year's 2010 census shows that Texas will likely be the biggest political winner next year. It will likely gain three or four House seats. Others that will likely gain at least one: Arizona, Nevada, Georgia, Florida and Utah. The Wall Street Journal: "Since the number of seats in the House is capped at 435, the gains in the South and West have to be offset by losses elsewhere. New York, New Jersey and Massachusetts and the recession-battered industrial states of Michigan, Ohio and Pennsylvania each stand to lose a House seat. So does Louisiana, where the population still hasn't rebounded from Hurricane Katrina in 2005, which displaced so many residents that census takers face a difficult task in tallying them all. A state's votes in the presidential Electoral College depend on the size of its congressional delegation, so the census will likely tilt the balance of power slightly, with reliably Republican 'red states' gaining several votes while Democratic strongholds such as New England lose clout." 

And if the President Obama wants to fight the perception that he's moving to socialism, it doesn't help that Fidel Castro is jumping to his defense. In a column on state-run media, Castro said Obama inherited many problems from former President Bush and is being attacked by a racist extreme right wing. And Reuters reports it comes as Bill Richardson is in Cuba.

From NBC's Pete Williams
An administration official says the cases Attorney General Holder wants investigated are those listed today in the CIA Inspector General report -- and some others, about 10 in all.

In addition to the ones enumerated today -- involving the gun, the drill, threats to harm family members, and so on -- there are other cases that were fully redacted from the IG report.

"And they raise allegations of abuse that are much worse," the official says. 

Those cases remain classified.

As a practical matter, this set of roughly 10 allegations is the universe of cases Holder wants investigated -- meaning that he has all but concluded he will not recommend that the prosecutor look at the Bush officials who conceived of the enhanced interrogation program or the Justice Department lawyers who authorized it.

From NBC's Ali Weinberg
The Democratic National Committee held a conference call today criticizing Republican National Committee Chairman Michael Steele
for his Washington Post op-ed, in which he warned today of the
implications of a Democratic-led health-care reform bill being passed.

In the op-ed, Steele wrote that the Democratic proposals for
health-care reform "will give seniors less power to control their own
medical decisions and create government boards that would decide what
treatments would or would not be funded."

To that point, Rep. Jan Schakowsky (D-IL) said on the conference
call that Steele's op-ed was "riddled with lies" and that "the
substance of this document uses false claims which have time after time
been debunked."

"The Republican Party has to take responsibility for their lies and
hypocrisy when it comes to seniors and health-insurance reform," she
added.

Also on the call was former Congresswoman Barbara Kennelly (D-CT), now the president of the National Committee to Preserve Social Security. Noting Steele's critique that the Democrats will "raid, not aid" Medicare, she recalled her experience with Medicare disputes while serving in Congress.

"I remember then-Congressman [Newt] Gingrich being very proud of being quoted everywhere as saying he wanted Medicare to wither on the vine," Kennelly said. "That the Republican chair is now championing Medicare is hard for me to believe."

Edward Coyle, the executive director of the Alliance for Retired Americans, referred to statements Steele had previously made while running for the Senate in 2006.

"He [Steele] said that cuts to Medicare 'absolutely' had to be 'on the table' in order to 'control runaway federal spending,'" Coyle said, adding that Steele's op-ed was a "sad publicity stunt."

Schakowsky also reiterated House Speaker Nancy Pelosi's words that "we will pass the bill, it will have a public health insurance option in it."

When asked if she thought the Democrats would take a reconciliation vote on the health-care bill in order to circumvent Republican opposition, Schakowsky said, "[President Obama] is not going to let these individuals stand in the way," adding, "we'll reluctantly have to do it without them."

From NBC's Kelly O'Donnell
Sen. Joe Lieberman (I-CT), chairman of the Senate Homeland Security and Governmental Affairs Committee, today expressed his strong disappointment in the U.S. Attorney General's decision to name a prosecutor to investigate CIA interrogations:

I respectfully regret this decision by Attorney General Holder and fear our country will come to regret it too because an open ended criminal investigation of past CIA activity, which has already been condemned and prohibited, will have a chilling effect on the men and women agents of our intelligence community whose uninhibited bravery and skill we depend on every day to protect our homeland from the next terrorist attack. Career prosecutors in the Department of Justice have previously reviewed allegations of abuse and concluded that prosecution was not warranted, with the exception of one CIA contractor who has already been convicted. President Obama has established clear guidelines to ensure that past abuses are not repeated and has stated his desire to look forward rather than backward.

We cannot take for granted the fact that our homeland has not been attacked since September 11, 2001. That has occurred only because of the constant vigilance and unflinching efforts by those brave individuals in our military, civilian homeland security and counterterrorism agencies, and the intelligence community. These public servants must of course live within the law but they must also be free to do their dangerous and critical jobs without worrying that years from now a future Attorney General will authorize a criminal investigation of them for behavior that a previous Attorney General concluded was authorized and legal.

From NBC's Pete Williams
The CIA's inspector general looked at allegations of abuse after 9/11 up to October 2003.

In late December 2002 or early January 2003, the report says, unauthorized techniques were used on an al Qaeda suspect, Abd al Rahim al Nashiri. An American, who was not a trained interrogator and was not authorized to use enhanced methods, used a gun and a power drill to frighten al Nashiri. The gun was held close to his head and "racked," to produce the sound of a round being loaded into the gun's chamber. The power drill was revved while the detainee stood, naked with a hood over his head.

In another incident, a debriefer told al Nashiri, "We could get your mother in here," and "We can bring your family in here." The report says the debriefer was trying to exploit a belief in the Middle East that interrogation techniques included sexually abusing female relatives in front of the detainees.

The inspector says the man, believed to be the 9/11 mastermind Khalid Sheikh Mohammed, was told by a debriefer that if anything else happened in the U.S., "We're going to kill your children."

As for waterboarding, the inspector concluded, as previously reported, that Mohammed was subjected to it 183 times. The Attorney General, the report said, was aware of the repetitive use of the waterboard and that it was "well within the scope" of the legal authority authorized for the CIA.

Abu Zubaydah was also waterboarded. 

"It is not possible to say definitively that the waterboard is the reason for Abu Zubaydah's increased production [of intelligence information], or if another factor, such as the length of detention, was the catalyst," the inspector said.

The inspector also found other unauthorized techniques: putting pressure on the carotid artery to the point that the detainee would start to pass out, then shaking him awake and repeating the procedure twice more. In another incident, a gun was fired outside an interrogation room, then the detainee was moved outside, passed a guard dressed as a hooded detainee, lying motionless, to appear that he'd been shot to death. The detainee who saw this reportedly "sang like a bird," the inspector was told.

From NBC's Tom Costello and Domenico Montanaro
The "Cash for Clunkers" program deadline for dealers to file for rebates has been extended until tomorrow at noon ET.

The reason: The Department of Transportation's "Clunkers" filing Web site went down this afternoon.

Tonight's 8:00 pm ET deadline for any sales made stands.

The DOT said there was "an overwhelming demand on the CARS computer system. ... Despite a large increase in the system's capacity, the website was down temporarily this afternoon. Because of the temporary shutdown, dealers have been given extra time to file the necessary paperwork."

From NBC's Alicia Jennings
In response to the establishment of a Justice Department prosecutor to look into a select number of CIA interrogations, White House Deputy spokesman Bill Burton writes in an e-mail to NBC News:

"The President has said repeatedly that he prefers to look forward, not back, and the President agrees with the Attorney General that those who acted in good faith and within the scope of legal guidance should not be prosecuted. Ultimately, decisions about investigations and prosecutions are made independently by the Attorney General."

From NBC's Pete Williams
Attorney General Eric Holder has directed a federal prosecutor to look into possible violations of U.S. law in the CIA's treatment of terrorism detainees overseas.

Administration officials say he'll give the assignment to a career federal prosecutor in Connecticut, John Durham. 

For more than a year, since January 2008, Durham has been investigating whether any laws were broken when CIA officials destroyed audio and videotapes of the interrogations of several terrorism detainees. His work on the tapes issue is not yet completed, though there are indications that Durham is nearly done with that part of his work.

Holder's statement on a "preliminary review into the interrogation of certain detainees: 

The Office of Professional Responsibility has now submitted to me its report regarding the Office of Legal Counsel memoranda related to so-called enhanced interrogation techniques. I hope to be able to make as much of that report available as possible after it undergoes a declassification review and other steps. Among other findings, the report recommends that the Department reexamine previous decisions to decline prosecution in several cases related to the interrogation of certain detainees.

I have reviewed the OPR report in depth. Moreover, I have closely examined the full, still-classified version of the 2004 CIA Inspector General's report, as well as other relevant information available to the Department. As a result of my analysis of all of this material, I have concluded that the information known to me warrants opening a preliminary review into whether federal laws were violated in connection with the interrogation of specific detainees at overseas locations. The Department regularly uses preliminary reviews to gather information to determine whether there is sufficient predication to warrant a full investigation of a matter. I want to emphasize that neither the opening of a preliminary review nor, if evidence warrants it, the commencement of a full investigation, means that charges will necessarily follow.

Assistant United States Attorney John Durham was appointed in 2008 by then-Attorney General Michael Mukasey to investigate the destruction of CIA videotapes of detainee interrogations. During the course of that investigation, Mr. Durham has gained great familiarity with much of the information that is relevant to the matter at hand. Accordingly, I have decided to expand his mandate to encompass this related review. Mr. Durham, who is a career prosecutor with the Department of Justice and who has assembled a strong investigative team of experienced professionals, will recommend to me whether there is sufficient predication for a full investigation into whether the law was violated in connection with the interrogation of certain detainees.

There are those who will use my decision to open a preliminary review as a means of broadly criticizing the work of our nation's intelligence community. I could not disagree more with that view. The men and women in our intelligence community perform an incredibly important service to our nation, and they often do so under difficult and dangerous circumstances. They deserve our respect and gratitude for the work they do. Further, they need to be protected from legal jeopardy when they act in good faith and within the scope of legal guidance. That is why I have made it clear in the past that the Department of Justice will not prosecute anyone who acted in good faith and within the scope of the legal guidance given by the Office of Legal Counsel regarding the interrogation of detainees. I want to reiterate that point today, and to underscore the fact that this preliminary review will not focus on those individuals.

I share the President's conviction that as a nation, we must, to the extent possible, look forward and not backward when it comes to issues such as these. While this Department will follow its obligation to take this preliminary step to examine possible violations of law, we will not allow our important work of keeping the American people safe to be sidetracked.

I fully realize that my decision to commence this preliminary review will be controversial. As Attorney General, my duty is to examine the facts and to follow the law. In this case, given all of the information currently available, it is clear to me that this review is the only responsible course of action for me to take."

From NBC's Ali Weinberg
After revelations surfaced last week that New Jersey Republican gubernatorial candidate Chris Christie did not disclose a $46,000 loan he gave to a high-level staffer, the campaign of Christie's opponent, Jon Corzine, today "continued to insinuate that there is an improper relationship" between Christie and the staffer, current First Assistant U.S. Attorney Michele Brown.

State Sen. Loretta Weinberg, running as Corzine's lieutenant governor, urged the U.S. Attorney's Office to remove Brown from the process of retrieving some of Christie's documents, like travel expenses and daily calendars, requested by the Corzine campaign through the Freedom of Information Act.

"Based on what we already know and on today's report by the AP that Christie is refusing to answer who he's still in contact with at the U.S. Attorney's office and how informed he is about day-to-day activities there, we are simply saying we need someone not caught up in this controversy to work on the FOIA requests," Weinberg said, per PolitickerNJ.

Deeds' new ad
Virginia Democratic gubernatorial candidate Creigh Deeds released an ad on Friday echoing a speech he delivered intended to reframe his campaign in terms of "backwards-forwards," where Republican Bob "McDonnell will take the state back, Deeds will take it forward."

The ad says Deeds will continue the "pro-business economic policies Mark Warner put in place, and not go backwards by embracing the failed economic policies of George W. Bush." 

On the campaign trail, Deeds frequently mentions the record of DNC Chairman and former Virginia Gov. Tim Kaine, a Democrat whose success among conservative Southern Virginia voters Deeds hopes to mimic. But Deeds has had to walk a fine line between channeling Kaine's gubernatorial legacy and over-aligning himself with Kaine's position in the national party.

"Privately, some [Deeds campaign officials] say they realize it's not always politically beneficial for Deeds to be associated with [Kaine]," the Washington Post writes. "Kaine's popularity rating remains above 50 percent but is waning, and his position as party chairman brings with it the burdens of a national party that voters are viewing with increasing skepticism." And "nationally, Democrats will be counting on Kaine to deliver his own state and provide a political boost to President Obama. If he can't manage that, many will wonder how effective a chairman he can be." 

A recent Washington Post poll found McDonnell with a lead over Deeds among likely voters, 54%-39%, and a smaller lead among all voters, 47%-40%. Columnist Josh Goodman writes that Deeds leads among unlikely voters: "The results, based on my calculations, are 42 percent for Deeds, 31 percent for McDonnell and 27 percent undecided. So Deeds enjoys a double-digit lead among those unlikely voters. That to me is the strongest indication yet that Virginia Democrats are unmotivated this year."

Goodman says the biggest challenge for Deeds "is persuading people who are predisposed to think he will make the best governor to actually vote. Getting unlikely voters to the polls isn't impossible, but it is, well, unlikely."  

Deeds and McDonnell will participate in a debate Oct. 12th in Richmond organized by the League of Women Voters of Virginia and AARP Virginia. The Peoples Debate will feature an online component allowing voters to submit their own questions to the candidates. We are very excited to give the average Virginian a voice in this debate," League President Olga Hernandez said. The debate will be moderated by PBS's Judy Woodruff.

From NBC's Domenico Montanaro
Responding to the story this morning in the New York Times that the administration has only filled 43% of all positions requiring Senate confirmation, White House spokesman Bill Burton shot back that Kansas Sens. Sam Brownback and Pat Roberts were holding up John McHugh's confirmation "for partisan purposes."

Brownback and Roberts do not want Guantanamo detainees moved to Fort Leavenworth, which is in Kansas.

Burton also defended the vacation against the NRCC's, the House political arm's, attack that he shouldn't be taking one: "As I recall, the previous president [took] quite a bit of vacation himself, and I don't think anyone bemoaned that," Burton said.

Liberals certainly bemoaned it.

The Wall Street Journal reports on some of the details of what the president has done so far: This morning, he worked out, played tennis with his wife and planned a golf outing for the afternoon with House Democratic Whip Rep. James Clyburn, who Burton said was already on the island; UBS AG Chief Executive Robert Wolf, a big fund-raiser for Obama; and aide Marvin Nicholson...."

[*** UPDATE *** Robert Wolf was a major fundraiser for candidate Obama. He is a bundler and raised more than $500,000 for him.]

Also inside the Obama inner circle, the family dined on Sunday night "with Martha's Vineyard neighbor and senior adviser Valerie Jarrett, and friends Eric Whitaker and his wife."

Also, the White House noted which books the president took with him: Tom Friedman's "Hot, Flat and Crowded," David McCullough's "John Adams," Richard Price's "Lush Life," Kent Haruf's "Plain Song," George Pelecanos's "The Way Home."

*** UPDATE *** The Wall Street Journal makes this fun (skeptical) point: "That's 2,301 pages of recreational reading in a week, sandwiched between tennis, golf, meetings with friends, and possible calls to Congress. Aides say Obama is a speedy reader. So at that pace, the president would need about 3.5 days for the 1,000-page House health care proposal, whenever it's finalized."

From NBC's Andrea Mitchell
Senior White House and Justice Department officials briefing reporters on a conference call just now insisted that the White House would not be involved in tactical decisions about the interrogation of detainees under new procedures approved by the president. Officials said the National Security Council interagency role would be "policy guidance" -- only.

The new unit will be headquartered at the FBI and overseen by the NSC's counter terror chief, John Brennan, who used to run the counter terror center at the CIA.

The briefers said they would also create a unit to do scientific studies of "best practices" of interrogation to find out what works.

They pledged that the U.S. would no longer "render" suspects to countries that torture prisoners and that renditions would be overseen by the State Department.

The CIA would still have a role, but a much smaller one under the new system, and the CIA would no longer be involved in running detention camps.

Here's CIA Director Leon Panetta's message to CIA workers today:

Message from the Director:

Release of Material on Past Detention Practices

Today, as part of a number of Freedom of Information Act cases, the government is responding to court orders to release more documents related to the Agency's past detention and interrogation of foreign terrorists. The CIA materials include the 2004 report from our Office of Inspector General and two papers-one from 2004 and the other from 2005-that discuss the value of intelligence acquired from high-level detainees. The complete package is hundreds of pages long. The declassification process, a mandatory part of the proceedings, was conducted in accord with established FOIA guidelines.

This is in many ways an old story. The outlines of prior interrogation practices, and many of the details, are public already. The use of enhanced interrogation techniques, begun when our country was responding to the horrors of September 11th, ended in January. For the CIA now, the challenge is not the battles of yesterday, but those of today and tomorrow. It is there that we must work to enhance the safety of our country. That is the job the American people want us to do, and that is my responsibility as the current Director of the CIA.

My emphasis on the future comes with a clear recognition that our Agency takes seriously proper accountability for the past. As the intelligence service of a democracy, that's an important part of who we are. When it comes to past detention and interrogation practices, here are some facts to bear in mind on that point:

The CIA itself commissioned the Inspector General's review. The report, prepared five years ago, noted both the effectiveness of the interrogation program and concerns about how it had been run early on. Several Agency components, including the Office of General Counsel and the Directorate of Operations, disagreed with some of the findings and conclusions.

The CIA referred allegations of abuse to the Department of Justice for potential prosecution. This Agency made no excuses for behavior, however rare, that went beyond the formal guidelines on counterterrorism. The Department of Justice has had the complete IG report since 2004. Its career prosecutors have examined that document-and other incidents from Iraq and Afghanistan-for legal accountability. They worked carefully and thoroughly, sometimes taking years to decide if prosecution was warranted or not. In one case, the Department obtained a criminal conviction of a CIA contractor. In other instances, after Justice chose not to pursue action in court, the Agency took disciplinary steps of its own.

The CIA provided the complete, unredacted IG report to the Congress. It was made available to the leadership of the Congressional intelligence committees in 2004 and to the full committees in 2006. All of the material in the document has been subject to Congressional oversight and reviewed for legal accountability.
As Director in 2009, my primary interest-when it comes to a program that no longer exists-is to stand up for those officers who did what their country asked and who followed the legal guidance they were given. That is the President's position, too. The CIA was aggressive over the years in seeking new opinions from the Department of Justice as the legal landscape changed. The Agency sought and received multiple written assurances that its methods were lawful. The CIA has a strong record in terms of following legal guidance and informing the Department of Justice of potentially illegal conduct.

I make no judgments on the accuracy of the 2004 IG report or the various views expressed about it. Nor am I eager to enter the debate, already politicized, over the ultimate utility of the Agency's past detention and interrogation effort. But this much is clear: The CIA obtained intelligence from high-value detainees when inside information on al-Qa'ida was in short supply. Whether this was the only way to obtain that information will remain a legitimate area of dispute, with Americans holding a range of views on the methods used. The CIA requested and received legal guidance and referred allegations of abuse to the Department of Justice. President Obama has established new policies for interrogation.

The CIA must also keep its focus on the primary responsibility of protecting the country. America is a nation at war. This Agency plays a decisive role in helping the United States meet the full range of security threats and opportunities overseas. That starts with the continuing fight against al-Qa'ida and its sympathizers. There, alongside all its other contributions, the CIA is helping our government chart a new way forward on interrogation, one in keeping with the President's Executive Order of January 22nd. You, the men and women of this great institution, do the hard work and take the tough risks that intelligence and espionage demand.

I am very proud of what you do, here and abroad, to protect the United States. Your skill, courage, commitment, and focus on mission make the CIA indispensable to the nation. It is a privilege to serve with you.

Leon E. Panetta

From NBC's Winston Wilde
Education Secretary Arne Duncan and Health and Human Services Secretary Kathleen Sebelius acknowledged there is a significant chance of school disruptions in the upcoming flu season, due to H1N1 "swine flu."

At a press conference this morning in front of H.D. Cooke Elementary School, Duncan said, "Some schools may experience large absentee rates; some across the country may even need to be closed temporarily at some point during the school year. We must make sure that learning continues if the virus spreads. That is hugely important."

He added that the goal for schools nationwide is "to keep our children safe and keep our children learning."

The Department of Education released instructions to schools today on how to be ready for any possible disruption due to H1N1, including having homework packages ready for students while they must stay home, having online resources accessible from the home (Apple and Microsoft representatives were present at the school, according to Duncan), and maintaining close contact with parents, so they can keep their kids up to speed on curricula.

The H1N1 vaccine will be ready by mid-October. Once available, kids will be one of the "priority populations," and both the Department of Education and HHS are reaching out to schools to make sure parents remember to make vaccinations a priority.

While the H1N1 vaccine is still in its testing phases, Sebelius emphasized mitigation strategies, like remembering to wash hands, coughing into shirtsleeves instead of coughing into a hand or worse yet, not covering a mouth, and to stay home -- students and teachers alike -- if they develop flu symptoms.

HHS  distributed to elementary school s its "Avoid the Flu" resource kits, and of course, has a flu Web site, with guidance for K-12, colleges and  universities, and businesses.

After the press conference, Sebelius and Duncan toured the school to see its health facilities and green initiatives  and ate a breakfast with the  children in the cafeteria.