NPR 2008-04-09

The top US general in Iraq has been spending the day getting grilled 2 by lawmakers on Capital Hill. General David Petraeus told members of Senate committee today he thinks there should be a pause in troop withdrawls this summer in order to reassess the situation there. “I recommended to my chain of command that we continue the drawdown of the surge combat forces and that upon the withdrawal 3 of the last surge brigade combat team in July, we undertake a 45-day period of consolidation 4 and evaluation 5. At the end of that period, we’ll commence a process of assessment 6 to examine the conditions on the ground and over time, determine when we can make recommendations for further reductions. However, some lawmakers including Democratic presidential candidate Hillary Clinton were skeptical 7. “For the past five years, we have continually heard from the administration that things are getting better, that we are about to turn a corner, that there is, finally, a resolution in sight. Yet each time, Iraqi leaders failed to deliver.” Under questioning, Petraeus would not predict when he thinks US troop reductions in Iraq might be able to resume. Petraeus is also testifying before the Senate Foreign Relations Committee today.

 In Iraq, anti-US Shiite cleric Muqtada al-Sadr threatened to formally call off his unilateral cease-fire with US forces today. NPR’s JJ Sutherland reports from Baghdad.

 The cease-fire by Sadr’s Mahdi Army is credited as one of the major factors in decreasing violence in Iraq in recent months, especially in terms of the sectarian violence that has left thousands of people dead over the past few years. Despite the cease-fire, fighting is still ongoing 8 in the Mahdi Army stronghold of Sadr City though, as American and Iraqi forces moved into the sprawling 9 slum on the edge of Baghdad. Eleven US soldiers died on Sunday and Monday and scores of Iraqis were killed. The government has imposed an all-day curfew tomorrow and banned the men from the age of 18 to 35 from entering the city. JJ Sutherland , NPR News, Baghdad.

 The White House now says that President Bush will not support a home owner rescue bill which could clear the Senate this week. White House Press Secretary Dana Perino said today the measure contains too many costly 10 extras, including a provision that would provide a tax break for buyers of foreclosed-upon properties. Perino said Mr. Bush is worried that some of the provisions will do little to actually help homeowners avoid foreclosure or reduce the glut 11 of unsold houses on the market. Democrats 12 in the House meanwhile have been split over how to come up with their own package.

 Meantime, another housing market indicator 13 pointing in the wrong direction in February. The National Association of Realtors, the real-estate industry’s main trade group, said today its pending 1 home sales index fell to its lowest level since the index began in 2001.

 On Wall Street today, the Dow Jones Industrial Average was down nearly 36 points to close at 12, 576. The NASDAQ dropped 16 points. The S&P 500 was down 7 points today. This is NPR.

 Washington Mutual 14 is getting a seven-billion-dollar infusion 15 of new capital primariliy from a private equity 16 firm. From Seattle, NPR’s Wendy Kaufman reports.

 The seven billion dollars will come from an investment group led by TPG Capital, a Texas-based private equity firm. Washington Mutual, known as WaMu, had been one of the nation’s largest lenders of home mortgages including subprime loans, which made up nearly 7% of its portfolio 17. The once mighty 18 company has been hemorrhaging. It says losses for the past six months will total nearly 3 billion dollars. In addition to the investment by TPG, WaMu announced other measures to stablize the Seattle-based thrift 19. It would exit the wholesale 20 lending business. There will be no more loans originated by brokers 21. And the company will slash 22 its quarterly dividend 23 15 cents to 1 penny. TPG’s founding partner is expected to take a seat on the WaMu board. Wendy Kaufman, NPR News, Seattle.

 Crude oil prices fell 59 cents a barrel today to close at $108.50 a barrel on the New York Mercantile Exchange.