NPR 2008-09-11

Federal regulators in Denver and Washington who were supposed to be watchdogs over oil and gas companies allegedly partied and have sex with industry employees. A report says they also improperly 1 accepted gifts and arranged lucrative 3 contracts for themselves. NPR's Jeff Brady reports.

Inspector 4 General Earl Devaney says 13 Minerals Management Service employees created a culture of substance abuse and promiscuity 5. He says one supervisor 6 used illegal drugs and had sex with subordinates. Others allegedly rigged contracts to benefit themselves and friends. The employees were supposed to keep a close eye on oil and gas companies to make sure they paid all the royalties 7 owed for drilling on public land and off the nation's coast. But they allegedly accepted industry-paid trips and other gifts. Devaney says the gifts weren't that valuable but employees accepted them with " prodigious 8 frequency". One person Jimmy Mayberry already has pleaded guilty to a criminal charge. Others could face administrative 9 sanctions but some will not be penalized 10 at all because they've already left their jobs. Jeff Brady, NPR News.

A federal judge today refused to dismiss corruption 11 charges against Alaska's Republican Senator Ted 2 Stevens. NPR's Nina Totenberg has that story.

Stevens is charged with seven counts of filing false financial disclosure forms in the Senate, specifically leaving out a quarter of a million dollars in gifts he received from an Alaska oil services company and its chief executive officer. In seeking to have the charges dismissed, Stevens contended that only the Senate could discipline him for any ethical 12 lapse 13 involving the disclosure forms. But after a hearing today federal judge Emmet Sullivan rejected that argument, clearing the way for the Stevens' trial to begin in less than two weeks. The 84-year-old Stevens, the longest-serving Republican in the US Senate, easily won re-nomination in the primary last month but faces a tough reelection bid in the general election this November. Nina Totenberg, NPR News, Washington.

Emergency crews investigating a building collapse 14 near Richmond, Virginia now say the body of one worker has been found beneath the rubble 15. Rescuers say it's unclear if the body is that of a worker who had not been accounted for. Initial reports said as many as a dozen workers inside when a 60-foot section of the building gave way. Crews say they've not ruled out the possibility there could be additional victims. It's not clear what caused the collapse.

Troubled investment bank Lehman Brothers says it plans to sell a majority stake in its investment management business and spin off its commercial real estate holdings as it struggles to remain afloat. And the fourth largest US investment bank says the sale of the entire company is also a possibility. Shares of the more than 150-year-old firm plunged 16 yesterday after reports surfaced the negotiations 17 with a South Korean bank to invest capital in Lehman Brothers were foundering 18.

On Wall Street today the Dow Jones Industrial Average gained 38 points to end the session at 11, 268. The NASDAQ added 18 points today. The S&P500 was up 7 points.

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The Defense 19 Department has decided 20 to end for now a 35-billion-dollar bidding contest for the Air Force's next generation air refueling tanker 21. Defense Secretary Robert Gates telling Congress the Pentagon could not meet its goal of picking between revised tanker proposals from Boeing and Northrop Grumman by the time President Bush leaves office. The Air Force back in February initially 22 awarded the contract for new refueling tankers 23 to Northrop's partner European airplane builder Airbus. However it reopened the contract after it was determined 24 there were significant errors in the bidding.

Nominations 25 for the annual Latin Grammys were announced today in Los Angeles. The Mexican Rock group Cafe Tacuba got the most nods. NPR's Mandalit del Barco reports.

Cafe Tacuba picked up six nominations for the album Sino including Album and Record of the Year and Best Alternative Album. Also nominated for Album and Record of the Year was Columbian singer Juanes. He got five nominations for his album La Vida Es Un Ratico. Both Juanes and Caf Tacvba have Argentinean musician Gustavo Santaolalla to thank for producing their music. The Oscar-winning producer also was nominated for five Latin Grammys. Other nominees 26 included Puerto Rican pop singer Kany Garcia, Peruvian folk group Peru Negro, and Washington. D. C. -based Latin Jazz group Afro Bop Alliance. Mandalit del Barco, NPR News.

Crude oil prices continued to fall today. Light sweet crude was down 68 cents a barrel settling at $102. 58 a barrel on the New York Mercantile Exchange.