• Federal Reserve Chairmain Outlines Plans for Expanded Fed Powers
• Secretary Rice Signs Missile Shield Deal with Czech Republic
• African Leaders and G8 Officials Differ on Sanctions for Zimbabwe
• Preliminary Hearings for Gitmo Habeas Challenges
• Intelligent Design Evolves into Constitutional Challenge in Texas
• Correction: Industrial Workers of the World

Click here for newscast for Tuesday, July 8th, 2008

Federal Reserve Chairmain Outlines Plans for Expanded Fed Powers
Fed Chairman Ben Bernanke today laid out his vision for a more powerful Federal Reserve. Speaking at a Virginia forum on mortgage lending to low income borrowers, Bernanke outlined an expanded set of powers for the Fed, new regulations for the mortgage industry, and the extension of a program providing short term loans to investment banks. Kat Aaron reports.

The bulk of Bernanke's address focused on what he called the near-bankruptcy of investment bank Bear Stearns in March of this year. The Federal Reserve had engineered the sale of Bear to JPMorgan, supporting the transaction with a 30 billion dollar loan. In an effort to stave off further crises, the Fed established an emergency program of short term loans to the remaining investment banks. The loan program, originally proposed as a six-month support for the turbulent markets, now looks likely to be extended past the end of the year. But some question the wisdom of the loan program, known as the Primary Dealer Credit Facility or PDCF, since the collateral for the loans is often the mortgage-backed securities whose dubious value has thrown global markets into crisis. The securities that backed the Fed's 30 billion dollar loan to JPMorgan have already dropped more than a billion dollars in value since March. While these losses don't yet require taxpayers to pony up cash, further devaluation of the securities could put the American public on the hook for a bailout. Chairman Bernanke also outlined new regulations for high cost and subprime loans, potentially putting the regulatory brakes on the era of expensive and sometimes predatory loans made to borrowers across the country. But this may be a case of too little too late. According to foreclosure listing service, RealtyTrac Inc, over 260,000 homes received foreclosure notices in May, up 48 percent from the same month last year. For FSRN, I'm Kat Aaron in New York.

Secretary Rice Signs Missile Shield Deal with Czech Republic
Secretary of State Condoleezza Rice was in Prague today to sign a controversial deal that would allow the Pentagon to install part of a missile shield system on Czech soil. The radar systems slated for the Czech Republic will work in conjunction with interceptor missiles based in Poland. The objective is to be able to shoot down incoming missiles in mid-air. Russia has opposed the US missile shield system from the start and the rhetoric between the two former Cold War rivals has at times sparked concerns of a new arms race. Public opinion polls have consistently shown the vast majority of Czechs do not want the radar system in their country.

African Leaders and G8 Officials Differ on Sanctions for Zimbabwe
African leaders and top officials from the world's eight richest nations clashed today over proposed sanctions against Zimbabwe. Sam Olukoya reports from Lagos.

G8 member nations have agreed to support limited sanctions on the Zimbabwean government following the controversial presidential run-off vote which extended President Robert Mugabe’s 28 year rule. G8 leaders have described the re-election of the Zimbabwean leader as a sham because of widespread violence against opposition supporters. Seven African leaders, who met today with G8 officials in Japan, reject the proposal of sanctions on Zimbabwe. The African leaders, including President Umaru Yar’Adua of Nigeria and Thabo Mbeki of South Africa, say sanctions will only make the situation worse. The African Union concluded its most recent summit by calling on Mugabe and the Zimbabwean opposition Movement for Democratic Change to form a unity government. The Zimbabwean opposition has refused to form a unity government, saying it would do nothing to adress state-sponsored violence. The G8 has requested the United Nations Security Council take up the issue of sanctions and appoint an envoy to investigate the situation in Zimbabwe. For Free Speech Radio News, this is Sam Olukoya in Lagos.

Preliminary Hearings for Gitmo Habeas Challenges
Attorneys for Guantanamo Bay detainees were in DC district court today for the preliminary hearings on how to move forward with some 200 challenges to the government's policy of detaining prisoners without charge at the US naval base. The latest round of hearings comes after the Supreme Court ruled last month that Guantanamo detainees have the right to challenge their detentions in US civilian courts.

Intelligent Design Evolves into Constitutional Challenge in Texas
In other legal news, the debate over the teaching of so-called Intelligent Design in public schools has come back to life in Texas. Ann Raber has the story from Austin.

Last year, the director the science curriculum at the Texas Education Agency, Chris Comer, was given the choice to resign or be fired from her job after she forwarded an email to friends and colleagues about an event on the problems of teaching so-called intelligent design in public schools. Her termination notice stated that she ---violated the neutrality of the agency in regards to the teaching of intelligent design vs evolution. Chris Comer has now filed suit in federal district court against her former employer, alleging that she was fired for violating a policy that violates the first amendment of the US Constitution. The establishment clause, also known as the religion clause in the first amendment, states that congress shall make no law respecting the establishment of religion or prohibiting the exercise thereof. Texas Observer magazine says the suit pits the religion clause against the neutrality policy of the Texas Education Agency. [clip] "The argument goes that the neutrality policy that the tea says it has is not in fact neutral, but is an endorsement of religion by a state body, and that comer was fired for opposing an unconstitutional policy. So, if this case moves forward it will basically be argued on constitutional grounds." It's unknown how far the suit will go, but Comer's suit puts the issue of how Texas deals with the teaching of intelligent design and creationism in public schools up for powerful scrutiny in federal court. For FSRN in Austin, this is Ann Raber.

Correction: Industrial Workers of the World
And a correction to yesterday's newscast. In Monday's headlines, a report on worldwide labor demonstrations against Starbucks referred to one of the unions behind the protests as the International Workers of the World. The correct name for the IWW is the Industrial Workers of the World.