A Quiet Windfall For U.S. Banks  —  With Attention on Bailout Debate, Treasury Made Change to Tax Policy  —  The financial world was fixated on Capitol Hill as Congress battled over the Bush administration's request for a $700 billion bailout of the banking industry.

Sometimes Continuity Trumps Change  —  Three Bush Appointees in Crucial Positions Likely to Remain Under Obama  —  As President-elect Barack Obama prepares to fill top positions for his incoming government, he faces a stubborn reality: Some of the key individuals he will rely upon to tackle …

Excuse Me?  —  Here's a disturbing story: … The WSJ covered this a few weeks back (h/t publius.)  —  Here's the relevant section of the Internal Revenue Code.  It provides that “The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section and section 383”.

U.S. Throws New Lifeline to AIG, Scrapping Original Rescue Deal  —  The U.S. government reached a deal Sunday night to scrap its original $123 billion bailout of American International Group Inc. and replace it with a new $150 billion package, according to people familiar with the matter.

Obama Weighs Quick Undoing of Bush Policy  —  CHICAGO — President-elect Barack Obama is poised to move swiftly to reverse actions that President Bush took using executive authority, and his transition team is reviewing limits on stem cell research and the expansion of oil and gas drilling …