WASHINGTON (Reuters) - The Federal Reserve would gain new powers over non-bank financial firms and keep much of its authority over banks under a new bill to be unveiled on Monday by the Senate's architect of financial reform.

WASHINGTON (Reuters) - A Pentagon official set up a unit of private contractors in Afghanistan and Pakistan to help track and kill suspected militants, The New York Times reported on its website, citing military officials and businessmen in Afghanistan and the United States.

Reuters - The Federal Reserve would gain new powers over non-bank financial firms and keep much of its authority over banks under a new bill to be unveiled on Monday by the Senate's architect of financial reform.

Reuters - A Pentagon official set up a unit of private contractors in Afghanistan and Pakistan to help track and kill suspected militants, The New York Times reported on its website, citing military officials and businessmen in Afghanistan and the United States.

AFP - Thai Prime Minister Abhisit Vejjajiva on Monday rejected an ultimatum by tens of thousands of protesters to dissolve parliament as they marched on a military barracks sheltering the government.

JERUSALEM (Reuters) - Israeli-U.S. relations have hit a 35-year low over a West Bank settlement plan that threatens to derail peacemaking efforts with the Palestinians, Israel's envoy to Washington was quoted as saying on Monday.

AP - Still seeking votes for his proposed health care overhaul, President Barack Obama appears ready to reverse his position and allow unpopular deal-sweetening measures in the hopes of finding Democratic support for legislation whose future will be decided in coming days.

AP - Let the count begin.

AP - Thailand's prime minister, backed by a formidable military force, rejected an ultimatum to dissolve Parliament on Monday as tens of thousands of red-shirted protesters vowed to continue their push to oust the government.

AP - Suspected drug gang hit men separately ambushed two cars carrying families with ties to the U.S. consulate in this violent border city, killing an American couple and a Mexican man. Three young children survived, although two suffered wounds.

AP - This much is not in dispute: Inspectors could not duplicate the sudden, unintended acceleration that a motorist reported last week when his Toyota Prius reached 94 mph on a California freeway. They tried during a two-hour test drive.

AP - China is once again the country Congress loves to hate.

AP - Israeli officials said Monday that the U.S. is pressing Israel to scrap a contentious east Jerusalem building project whose approval has touched off the most serious diplomatic feud with Washington in years.

AP - A torrential rainstorm that brought heavy winds to the Northeast is weakening as it moves north, but the damage and flooding left in its wake might keep some people from their homes for days and cause headaches for Monday's commute.

Reuters - Israeli-U.S. relations have hit a 35-year low over a West Bank settlement plan that threatens to derail peacemaking efforts with the Palestinians, Israel's envoy to Washington was quoted as saying on Monday.

AFP - Grenade attacks on a Bangkok military base Monday wounded two soldiers as tens of thousands of anti-government protesters massed at another barracks in the Thai capital, a military spokesman said.

BRUSSELS (Reuters) - Euro zone finance ministers are expected to agree a way of providing Greece with financial aid to tackle its debts on Monday, but France warned not to expect any hard figures and there remained barriers to a deal.

BANGKOK (Reuters) - Grenade explosions that wounded two soldiers at a Thai military base raised tensions in Bangkok on Monday as tens of thousands of anti-government protesters massed at another barracks on the outskirts of the city.

AP - The federal government said Monday it cannot explain a reported incident of sudden, high-speed acceleration in a Toyota Prius on a San Diego, Calif., freeway last week.

AP - A torrential rainstorm that brought heavy winds to the Northeast is causing some minor headaches for commuters.

Reuters - Euro zone finance ministers are expected to agree a way of providing Greece with financial aid to tackle its debts on Monday, but France warned not to expect any hard figures and there remained barriers to a deal.

Reuters - Grenade explosions that wounded two soldiers at a Thai military base raised tensions in Bangkok on Monday as tens of thousands of anti-government protesters massed at another barracks on the outskirts of the city.

AFP - Thailand's prime minister on Monday rejected an ultimatum by tens of thousands of protesters who had besieged the army barracks where he was holed up to demand immediate elections.

AFP - President Nicolas Sarkozy's party licked its wounds on Monday after a first round battering in French regional elections that saw the resurgence of the far-right National Front.

BRUSSELS (Reuters) - Euro zone finance ministers on Monday will look at how to give Greece financial aid should it ask for help, but there were signs France and Germany were holding out on making concrete commitments.

BANGKOK (Reuters) - Tens of thousands of protesters pressed ahead with a mass street rally in Bangkok on Monday after Thai Prime Minister Abhisit Vejjajiva rebuffed their demand for elections at a time of heightened political tension.

JERUSALEM (Reuters) - Israel and the United States are in a 'crisis of historic proportions' over a settlement dispute that has brought relations to a 35-year low, Israel's ambassador to Washington was quoted on Monday as saying.

AP - The federal government said Monday it cannot explain a reported incident of sudden, high-speed acceleration in a Toyota Prius on a San Diego, Calif., freeway last week.

AP - A torrential rainstorm that brought heavy winds to the Northeast, causing damage and flooding, created some minor headaches for commuters Monday.

AP - John Edwards' mistress said in her first interview released Monday that she didn't want him to run for president and considered it 'reckless' to stay in the race after his wife's cancer returned.

AP - Phillips-Van Heusen says it will buy privately held Tommy Hilfiger in a cash-and-stock deal valued at about $3 billion, creating one of the world's biggest clothing companies.

Reuters - Euro zone finance ministers on Monday will look at how to give Greece financial aid should it ask for help, but there were signs France and Germany were holding out on making concrete commitments.

Reuters - Tens of thousands of protesters pressed ahead with a mass street rally in Bangkok on Monday after Thai Prime Minister Abhisit Vejjajiva rebuffed their demand for elections at a time of heightened political tension.

Reuters - Israel and the United States are in a 'crisis of historic proportions' over a settlement dispute that has brought relations to a 35-year low, Israel's ambassador to Washington was quoted on Monday as saying.

AFP - Thailand's prime minister rejected on Monday an ultimatum by tens of thousands of protesters who demanded immediate elections as they besieged a military base where his government was holed up.

AFP - President Nicolas Sarkozy's party licked its wounds on Monday after a first round battering in French regional elections that saw the resurgence of the far-right National Front.

WASHINGTON (Reuters) - U.S. industrial production braked sharply in February, held back by severe winter storms that slammed parts of the country, while manufacturing activity in New York state stalled this month.

BRUSSELS (Reuters) - The European Union's executive said on Monday it was ready to propose a framework that could be used to aid Greece, despite signs of continuing reluctance from France and Germany to make concrete commitments.

WASHINGTON (Reuters) - Safety investigators have found no evidence so far to support or disprove a California motorist's claim his Toyota Motor Corp Prius sped out of control on its own, and cautioned the case may never be explained, U.S. regulators said on Monday.

AP - The U.S. military has turned over a prison holding some 2,900 detainees to Iraqi authorities.

AP - Thailand's prime minister, backed by a formidable military force, rejected an ultimatum to dissolve Parliament on Monday as tens of thousands of red-shirted protesters vowed to splatter the seat of government with their own blood if their demands weren't met.

AP - John Edwards' mistress Rielle Hunter said in an interview released Monday they are still in love, even if their relationship turned into something 'different' around the time he acknowledged the affair in 2008.

AP - Gilbert Arenas says he deserves to be punished for bringing guns to the locker room.

Reuters - U.S. industrial production braked sharply in February, held back by severe winter storms that slammed parts of the country, while manufacturing activity in New York state stalled this month.

Reuters - The European Union's executive said on Monday it was ready to propose a framework that could be used to aid Greece, despite signs of continuing reluctance from France and Germany to make concrete commitments.

Reuters - Safety investigators have found no evidence so far to support or disprove a California motorist's claim his Toyota Motor Corp Prius sped out of control on its own, and cautioned the case may never be explained, U.S. regulators said on Monday.

AFP - Relations between Israel and the United States have hit a 35-year low, Israel's ambassador in Washington said amid simmering tensions between the two key allies.

WASHINGTON (Reuters) - Industrial production braked sharply in February, held back by severe winter storms that slammed parts of the country, while manufacturing activity in New York state stalled this month.

JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu rejected on Monday any curbs on Jewish settlement in and around Jerusalem, defying Washington in Israel's deepening crisis with U.S. President Barack Obama's administration.

BAGHDAD (Reuters) - The U.S. military handed over a $107 million prison and nearly 3,000 inmates to the Iraqi government on Monday as it prepares to leave Iraq seven years after ousting Saddam Hussein.

SANAA (Reuters) - Yemen carried out air strikes against what they said were al Qaeda targets in the south for a second day on Monday, and authorities in the north recovered the remains of five people whose identities were being checked.

AP - The federal government said Monday it cannot explain a reported incident of sudden, high-speed acceleration in a Toyota Prius on a San Diego freeway and acknowledged it may not be able to solve the mystery of what happened to the hybrid.

AP - A torrential rainstorm that brought heavy winds to the Northeast, downing trees, flooding roadways and knocking out power, continued to pour rain on New England on Monday.

AP - Communications regulators are unveiling a sweeping proposal to overhaul U.S. broadband policy. Their aim: to bring affordable, high-speed Internet connections to all Americans and make access much faster for people who already have broadband.

AP - Two iconic American clothing labels — preppy Tommy Hilfiger and classic Calvin Klein — are coming together under one roof after Phillips-Van Heusen said it will purchase Tommy Hilfiger for about $3 billion in cash and stock.

AP - Some musical acts that thrived in second lives are joining the Rock and Roll Hall of Fame.

AP - David Beckham checked into a hospital Monday for surgery on his torn left Achilles' tendon, hoping for a 'swift and full recovery' from an injury that will keep him out of the World Cup.

Reuters - Industrial production braked sharply in February, held back by severe winter storms that slammed parts of the country, while manufacturing activity in New York state stalled this month.

Reuters - Prime Minister Benjamin Netanyahu rejected on Monday any curbs on Jewish settlement in and around Jerusalem, defying Washington in Israel's deepening crisis with U.S. President Barack Obama's administration.

Reuters - The U.S. military handed over a $107 million prison and nearly 3,000 inmates to the Iraqi government on Monday as it prepares to leave Iraq seven years after ousting Saddam Hussein.

AFP - Israeli Prime Minister Benjamin Netanyahu made it clear on Monday settlement building in east Jerusalem would continue, in a move likely to further heighten tensions with key ally the United States.

WASHINGTON (Reuters) - Senate Banking Committee Chairman Christopher Dodd on Monday unveiled a bill to revamp U.S. financial rules that would place a consumer protection agency within the Federal Reserve and give the central bank new powers over non-bank financial firms.

STRONGSVILLE, Ohio (Reuters) - President Barack Obama on Monday delivered an emotional closing argument for his healthcare plan, kicking off a week he hopes will end with a conclusive vote in Congress after a year of debate.

BRUSSELS (Reuters) - Euro zone finance ministers discussed the mechanics of a financial rescue for Greece on Monday but gave few details of their standby planning as Athens tries to fix its public finances alone.

AP - With a fresh sense of urgency, President Barack Obama sought to reassure seniors Monday about health care legislation approaching a final vote in Congress, pledging it would make preventive care cost-free and close a gap in Medicare prescription drug coverage.

AP - A new Democratic Senate bill to tame the financial markets would give the government new powers to break up firms that threaten the economy and would force the industry to pay for its failures.

AP - The mistress of former presidential candidate John Edwards says she is helping him live 'a life of truth' and the two remain in love even after their affair helped trigger his downfall from the pinnacle of U.S. politics.

AP - Oscar-winning actress Kate Winslet has split from her film director husband Sam Mendes, a British law firm said Monday.

AP - The surgery on David Beckham's torn Achilles' tendon has been completed.

Reuters - Senate Banking Committee Chairman Christopher Dodd on Monday unveiled a bill to revamp U.S. financial rules that would place a consumer protection agency within the Federal Reserve and give the central bank new powers over non-bank financial firms.

Reuters - President Barack Obama on Monday delivered an emotional closing argument for his healthcare plan, kicking off a week he hopes will end with a conclusive vote in Congress after a year of debate.

Reuters - Euro zone finance ministers discussed the mechanics of a financial rescue for Greece on Monday but gave few details of their standby planning as Athens tries to fix its public finances alone.

AFP - Israeli Prime Minister Benjamin Netanyahu made it clear on Monday settlement building in east Jerusalem would continue, in a move likely to further heighten tensions with key ally the United States.

AFP - Faced with a brazen challenge from drug cartels, US FBI agents have joined a Mexican investigation into attacks on US consular staff and their families that left three dead in this border city, officials said Monday.

WASHINGTON (Reuters) - The Federal Reserve would gain new powers over non-bank financial firms and keep much of its authority over banks under a new bill on financial regulatory reform unveiled on Monday by the chairman of the Senate Banking Committee, Christopher Dodd.

WASHINGTON (Reuters) - The U.S. House of Representatives Budget Committee took the first step on Monday toward passing a healthcare reform bill, launching a process that could culminate with a final House vote this week.

WASHINGTON (Reuters) - People leave more than fingerprints when they touch stuff -- they also deposit a tell-tale trail of germs that could help investigators solve crimes, U.S. researchers reported on Monday.

AP - Toyota cast doubt Monday on a California man's claim that his Prius sped out of control, saying the report is inconsistent with the findings of the company's preliminary investigation.

AP - Iowa City police arrested a woman who allegedly attacked her sister with the lid of a toilet tank. Nitasha Johnson, of Iowa City, was arrested early Sunday and was charged with domestic abuse assault causing injury and interference with official acts. According to police, Johnson removed the lid and hit her sister during a fight. Authorities said the sister suffered an injured foot and finger.

AP - David Beckham's left Achilles' tendon was totally torn, and the doctor who performed the surgery said the England midfielder is expected to be out of action for about six months.

Reuters - The Federal Reserve would gain new powers over non-bank financial firms and keep much of its authority over banks under a new bill on financial regulatory reform unveiled on Monday by the chairman of the Senate Banking Committee, Christopher Dodd.

Reuters - The U.S. House of Representatives Budget Committee took the first step on Monday toward passing a healthcare reform bill, launching a process that could culminate with a final House vote this week.

WASHINGTON (Reuters) - The Federal Reserve would take on a greatly expanded role in financial regulation under new legislation unveiled on Monday by a top Senate Democrat, in a push to move ahead with the regulatory reform that has been a top priority of President Barack Obama.

SAN DIEGO (Reuters) - Toyota Motor Corp said on Monday it had found no evidence to support the driver's version of a widely publicized 'runaway' Prius episode a week ago, suggesting that authorities examine whether the incident happened as reported to police.

WASHINGTON (Reuters) - The first of several Democratic job-creation efforts cleared a procedural hurdle in the Senate on Monday and appeared to be headed toward final congressional approval.

BRUSSELS (Reuters) - Euro zone finance ministers agreed on Monday on a mechanism that would allow them to help Greece financially if needed, but revealed no details except that it would be without loan guarantees.

WASHINGTON (Reuters) - A U.S. envoy's plans to visit the Middle East were up in the air on Monday, the State Department said, as it waited for Israel to respond to U.S. demands it show that it is serious about peace talks with the Palestinians.

WASHINGTON (Reuters) - The Pentagon said on Monday it was looking into 'serious allegations' about a U.S. Defense Department official accused of setting up a unit of private contractors in Afghanistan and Pakistan to help track and kill suspected militants.

CIUDAD JUAREZ, Mexico (Reuters) - The killing of three people linked to the U.S. consulate in Mexico's bloodiest drug war hotspot has thrown President Felipe Calderon a major test as he heads to this border city on Tuesday to try to contain spiraling violence.

AP - House Democrats triggered the countdown Monday for the climactic vote on President Barack Obama's fiercely contested remake of the health care system, even though the legislation remained incomplete and lacked the votes needed to pass.

AP - Toyota dismissed the story of a man who claimed his Prius sped out of control on the California freeway, saying Monday that its own tests found the car's gas pedal and backup safety system were working just fine.

AP - The two families climbed into white SUVs and almost simultaneously left the children's birthday party put on by the U.S. consulate. One headed deeper into one of the world's most dangerous cities, the other toward a bridge to El Paso, one of America's safest.

AP - The Afghan government was holding secret talks with the Taliban's No. 2 when he was captured in Pakistan, and the arrest infuriated President Hamid Karzai, according to one of Karzai's advisers.

AP - An Illinois insurance executive who secretly shot nude videos of ESPN reporter Erin Andrews was sentenced Monday to 2 1/2 years in prison before giving a tearful apology that was harshly rebuked by his victim.

AP - Unless David Beckham can mend it as well as he can bend it, soccer's now-limping glamour boy will miss this summer's World Cup — a blow to tournament organizers, sponsors, TV viewers and average fans.

Reuters - The Federal Reserve would take on a greatly expanded role in financial regulation under new legislation unveiled on Monday by a top Senate Democrat, in a push to move ahead with the regulatory reform that has been a top priority of President Barack Obama.

Reuters - Toyota Motor Corp said on Monday it had found no evidence to support the driver's version of a widely publicized 'runaway' Prius episode a week ago, suggesting that authorities examine whether the incident happened as reported to police.

Reuters - The first of several Democratic job-creation efforts cleared a procedural hurdle in the U.S. Senate on Monday and appeared to be headed toward final congressional approval.

Reuters - Euro zone finance ministers agreed on Monday on a mechanism that would allow them to help Greece financially if needed, but revealed no details except that it would be without loan guarantees.

Reuters - A U.S. envoy's plans to visit the Middle East were up in the air on Monday, the State Department said, as it waited for Israel to respond to U.S. demands it show that it is serious about peace talks with the Palestinians.

Reuters - The Pentagon said on Monday it was looking into 'serious allegations' about a U.S. Defense Department official accused of setting up a unit of private contractors in Afghanistan and Pakistan to help track and kill suspected militants.

WASHINGTON/SAN DIEGO (Reuters) - Toyota Motor Corp said on Monday it had found no evidence to support the driver's account of a widely publicized 'runaway' Prius incident in California.

WASHINGTON (Reuters) - The first of several Democratic job-creation efforts cleared a procedural hurdle in the Senate on Monday and appeared to be headed toward final congressional approval.

WASHINGTON (Reuters) - Congressional Democrats took the first step on Monday toward a quick final vote on a healthcare overhaul, and House of Representatives Speaker Nancy Pelosi vowed to muster the votes needed to pass it.

BRUSSELS (Reuters) - Finance ministers from the 16-country euro zone agreed on Monday to mobilize financial aid for Greece rapidly if needed but revealed little of how their standby plan for the debt-stricken nation would work.

AP - A woman heading to her stepfather's house was 'beyond lost' when she and her 8-year-old son took one wrong turn after another through the backroads of Thurston County and onto a private Puget Sound beach, authorities said Monday.

Reuters - Toyota Motor Corp said on Monday it had found no evidence to support the driver's account of a widely publicized 'runaway' Prius incident in California.

Reuters - The first of several Democratic job-creation efforts cleared a procedural hurdle in the Senate on Monday and appeared to be headed toward final congressional approval.

Reuters - Congressional Democrats took the first step on Monday toward a quick final vote on a healthcare overhaul, and House of Representatives Speaker Nancy Pelosi vowed to muster the votes needed to pass it.

Reuters - Finance ministers from the 16-country euro zone agreed on Monday to mobilize financial aid for Greece rapidly if needed but revealed little of how their standby plan for the debt-stricken nation would work.

AP - The estate of Michael Jackson has landed the late King of Pop the biggest recording deal in history: a $200 million guaranteed contract with Sony Music Entertainment for 10 projects over seven years, according to a person familiar with the deal.

AP - The Obama administration's fierce denunciation of Israel last week has ignited a firestorm in Congress and among powerful pro-Israel interest groups who say the criticism of America's top Mideast ally was misplaced.

AP - Connecticut's path to another perfect season could include a renewal of the most heated rivalry in women's college basketball.

AFP - Twenty-five people have been killed in a coal mine fire in central China, local authorities said Tuesday, the latest deadly incident in the country's hazardous mining industry.

WASHINGTON (Reuters) - The Federal Reserve is expected to hold interest rates near zero at a meeting on Tuesday and renew its pledge to keep borrowing costs very low for a long time, but could note a brightening economic picture and hint at being closer to dropping the vow.

BANGKOK (Reuters) - Tens of thousands of protesters pressed ahead with a mass rally in Bangkok on Tuesday, some expressing frustration that four days of peaceful protests had failed to force Thailand's premier to call elections.

SANTIAGO (Reuters) - A magnitude 6.7 aftershock struck off the coast of Chile on Monday night about 45 miles northwest of Concepcion, which was heavily damaged in an 8.8 magnitude quake on February 27, but the national emergency office said no casualties or damage to infrastructure had been reported.

AP - The estate of Michael Jackson has landed the late King of Pop the biggest recording deal in history: a $200 million guaranteed contract with Sony Music Entertainment for 10 projects over seven years, according to a person familiar with the deal.

AP - Connecticut's path to another perfect season could include a renewal of the most heated rivalry in women's college basketball.

Reuters - The Federal Reserve is expected to hold interest rates near zero at a meeting on Tuesday and renew its pledge to keep borrowing costs very low for a long time, but could note a brightening economic picture and hint at being closer to dropping the vow.

Reuters - Tens of thousands of protesters pressed ahead with a mass rally in Bangkok on Tuesday, some expressing frustration that four days of peaceful protests had failed to force Thailand's premier to call elections.

AFP - Iraqi Prime Minister Nuri al-Maliki's bloc looked likely to form parliament's single largest grouping Tuesday, after results showed the incumbent had strengthened his hold on key Baghdad province.