NPR 2008-06-20

The FBI and the Justice Department today announced arrests and indictments 1 resulting from a probe into the mortgage crisis. Since the beginning of March, more than 400 people have been arrested. In a related sweep, Justice and the SEC announced the arrests and indictments of two Bear Stearns hedge fund managers. NPR’s Yuki Noguchi reports.

The government’s crackdown on mortgage fraud is called “Operation Malicious 2 Mortgage”. On Wednesday alone, 60 people were arrested. FBI Director Robert Mueller:“We in the FBI have seen a steady growth in pending 3 FBI mortgage fraud cases. Our mortgage fraud caseload has doubled in the past three years to more than 1,400 pending investigations 4.” One related case concerns Matthew Tannin and Ralph Cioffi. They were charged with conspiracy 5 and fraud for misleading investors 6. Cioffi allegedly told a colleague he was sick to his stomach over the fund’s performance, but continued to urge investors to keep putting money into the fund. Yuki Noguchi, NPR News, Washington.

Forecasters are warning residents in a number of towns along the Mississippi River to prepare for possible record crests 7 as flood waters continue to move downriver. In Illinois and Missouri, sandbagging efforts continue. There are also still concerns in Iowa about high water levels in some small towns and fears those communities may never recover. President Bush took a tour of the flood-ravaged region today, stopping in Cedar 8 Rapids, Iowa where he told flood victims financial help is on the way. “Congress passed a, is about to pass, you know, a big chunk 9 of disaster money which, which put, which will help put people’s mind at ease and that will…We’ll help you, help you recover.” Presumptive Republican presidential nominee 10 John McCain also toured the flood-damaged southeastern Iowa town of Columbus Junction 11.

Iraqi military officials say they’ve entered the southern Iraqi city of Amarah without meeting any resistance from Shiite fighters loyal to anti-American cleric Muqtada al-Sadr. Many of the militia 12 members are believed to have fled. NPR’s Corey Flintoff has more.

There’ve been no reports of fighting from Amarah, a provincial 13 capital on the Tigris River about 200 miles south of Baghdad. Government troops entered the city at dawn and began searching the houses of suspected militia leaders. Last week, the Iraqi government issued an ultimatum 14, giving militia members four days to give up their weapons or face arrest. Today, some militants 15 were reportedly seen throwing their weapons into the streets or into irrigation canals. This is the fourth US-backed military operation conducted by the Iraqi army to gain control of militia and insurgent 16 strongholds. Government troops have previously 17 moved into the southern oil port of Basra, the Baghdad neighbourhood of Sadr City and the northern city of Mosul. Corey Flintoff, NPR News, Baghdad.

 On Wall Street, the Dow Jones Industrial Average gained 34 points today, ending the session at 12,063. The NASDAQ was up 32 points. The S&P rose five points. This is NPR.

A truce 18 in the Middle East appears to be holding despite widespread skepticism. A six-month ceasefire between Israel and Palestinian militants in the Gaza Strip took effect early today. Egypt brokered 19 the deal with an eye toward bringing an end to a year of fighting between the two sides which began after Hamas grabbed control of the Gaza Strip. Under terms of the current agreement, Israel will ease up on the blockade it put in place in an effort to pressure the Palestinian militants to halt rocket attacks on southern Israel.

Parliament in Sweden has approved a law that gives authorities sweeping 20 powers to eavesdrop 21 on all cross-border e-mail and telephone traffic. NPR’s Rob Gifford reports.

The law which comes into effect in January will give the Swedish government the most sweeping eavesdropping 22 powers of any country in Europe. It gives Swedish defense 23 officials the right to scan international phone calls, e-mails and faxes for sensitive keywords without a court order. The law was passed narrowly in parliament despite strong opposition 24. Hundreds of protestors gathered, handing out copies of George Orwell's novel “1984” about a fictional 25 futuristic police state. The Swedish government rejects claims the law will give it unlimited 26 powers to spy on its own citizens. Supporters argue the law will help prevent terrorist attacks. Rob Gifford, NPR News, London.

US phone companies that cooperated with the Bush administration’s warrantless wiretapping program could be shielded from lawsuits 27. That’s under terms of a measure hammered out today between congressional and White House negotiators. Under terms of the agreement, a court would agree to dismiss a suit if there is written certification that the White House requested the company participate in surveillance activities. The measure is expected to go to the House tomorrow. It would then go to the Senate and be sent onto President Bush for his signature. It’s expected both the House and Senate will approve the bill.