Obama's Budget Knife Yields Modest Trims  —  Plan Likely to Face Tough Fight on the Hill  —  President Obama has said for weeks that his staff is scouring the federal budget, “line by line,” for savings.  Today, they will release the results: a plan to trim 121 programs by $17 billion …

Some Big Banks Are Seen in Need of More Capital  —  The results of the bank stress tests have been trickling out for days, from Washington and from Wall Street, and the leaks seem to confirm what many bankers feel in their bones: despite all those bailouts, some of the nation's largest banks still need more money.

The Treasury Capital Assistance Program and the Supervisory Capital Assessment Program  —  During this period of extraordinary economic uncertainty, the U.S. federal banking supervisors believe it to be important for the largest U.S. bank holding companies (BHCs) to have a capital buffer sufficient …

The Torture Follies — Just When You Thought It Couldn't Get Worse ...  As K-Lo notes, I have an article (posted on the homepage this afternoon) which recounts how the Obama administration is urging the Sixth Circuit U.S. Court of Appeals to adopt the same interpretation of federal torture law …

Should the GOP Forget Reagan?  —  The Republican Party's unending tale of woe sounds like a friend's account of sitting through the New York Yankees' 22-4 loss to the Cleveland Indians at the new Yankee Stadium April 18.  —  In the 14-run second inning, three Indians hit home runs into the right-field seats, including a grand-slam.

EXCLUSIVE: Records violations ensnare housing nominee  —  Office handed largest fine in U.S. history  —  President Obama's choice for the government's No. 2 housing job is embroiled in the largest fine in U.S. history for “blatant violations” of open records laws after the Washington State …

Free web news era over, says Rupert Murdoch  —  Current days of free internet will soon be over, says media mogul  —  Rupert ­Murdoch expects to start charging for access to News Corporation's newspaper websites within a year as he strives to fix a ­"malfunctioning" business model.

UPDATED: Steele Condemns Maine Decision, Revealing Split With Snowe and Collins  —  After the RNC said he wouldn't be issuing a statement on Maine's decision to legalize gay marriage today, RNC Chairman Michael Steele is in fact condemning the decision, a position that puts him at odds …

Obama to be prayer day no-show  —  President to sign proclamation, observe privately  —  President Obama is distancing himself from the National Day of Prayer by nixing a formal early morning service and not attending a large Catholic prayer breakfast the next morning.

Are There Any Rules In The Bailout Game?  —  For the Obama administration, the answer is “no.”  —  We are entering a precarious phase of the economic and financial crisis.  On the one hand, there are encouraging, if weak, signs of an economic recovery.  There is evidence of a revival in lending.

JOHN EDWARDS' MISTRESS DEMANDS DNA TEST FOR BABY!  —  John Edwards' furious mistress is demanding he submit to a DNA test, The ENQUIRER has learned exclusively!  —  Rielle Hunter - the longtime secret lover of the disgraced 2-time presidential candidate - wants definitive proof that Edwards …

Hawaii Lawmakers Pass Bill to Create ‘Islam Day’  —  Hawaii's state Senate overwhelmingly approved a bill Wednesday to celebrate “Islam Day” — over the objections of a few lawmakers who said they didn't want to honor a religion connected to Sept. 11, 2001.  —  HONOLULU — Hawaii's state …

With Gay Issues in View, Obama Pressed to Engage  —  WASHINGTON — President Obama was noticeably silent last month when the Iowa Supreme Court overturned the state's ban on same-sex marriage.  —  But now Mr. Obama — who has said he opposes same-sex marriage as a Christian but describes himself as a …

Congressman: AG Holder Stonewalling on Terrorists' Release  —  The Obama administration is reportedly set to announce the release onto U.S. soil of at least some of the 17 Uighur detainees currently being held at Gitmo.  All 17 are members or associates of the Eastern Turkistan Islamic Party …

Krauthammer's Take  —  From last night's “All-Stars.”  On the Obama administration's approach to the Israeli-Palestinian conflict: Well, I think this argument over a two-state solution is a complete red herring.  There is no Israeli government, including Netanyahu's government …

House bypasses governor's veto to claim Oklahoma's sovereignty  —  Although Gov. Brad Henry vetoed similar legislation 10 days earlier, House members Monday again approved a resolution claiming Oklahoma's sovereignty.  —  Unlike House Joint Resolution 1003, House Concurrent Resolution 1028 does not need the governor's approval.

US public at risk from complacency over flu -CDC  —  Source: Reuters  —  * As fear of flu subsides, CDC concerned about complacency  —  * CDC officials worried H1N1 could return in the fall  —  The U.S. public could become more vulnerable to a flu pandemic if complacency about the need …

A Granite State Home Base For Romney?  —  Former MA Gov. Mitt Romney (R), who is writing a book on the direction of the country and has signed on to be one of the national spokesmen for the upstart National Council for a New America, which aims to revive the GOP, appears to be taking a third step …

Launch protocols for US missile system among sensitive data found on second hand computers  —  Sensitive information for shooting down intercontinental missiles as well as bank details and NHS records was found on old computers, researchers say.  —  Of 300 hard disks bought randomly …

Justice Dept. Finds Flaws in F.B.I. Terror List  —  WASHINGTON — The Federal Bureau of Investigation has incorrectly kept nearly 24,000 people on a terrorist watch list on the basis of outdated or sometimes irrelevant information, while missing people with genuine ties to terrorism …