Inspectors found that 13 percent of dairy firms inspected since last week had produced melamine-tainted formula, state TV reported Tuesday. Critics say state regulation alone won???t prevent more food scandals.
AP - Another day, another bailout. The U.S. government stepped in Tuesday to rescue American International Group Inc., one of the world's largest insurers, with an $85 billion injection of taxpayer money.
AP - John McCain and Barack Obama traded increasingly barbed insults along with prescriptions for the ailing economy Tuesday as financial fears shoved aside lipstick on pigs and every other political issue in a blink with just weeks left in the long presidential campaign.
AP - The House voted late Tuesday to open waters off the Atlantic and Pacific coasts to oil and gas drilling but only 50 or more miles out to sea and only if a state agrees to energy development off its shore.
In an unprecedented move, the Federal Reserve Board is lending as much as $85 billion to rescue crumbling insurance giant AIG, officials said Tuesday evening. In return, the federal government will receive a 79.9 percent stake in the company, CNNMoney.com reports. Officials decided they had to act lest the nation's largest insurer file bankruptcy.
The House of Representatives is set to vote Tuesday on a bill clearing the way for more oil drilling in the United States, with the Democrats who control Congress yielding to Republican pressure on the issue.
Stocks rallied Tuesday as investors focused on the positive implications for the economy in the Federal Reserve's decision to hold interest rates steady, and on diminishing fears about AIG's solvency.