Update 1:10pm: Stories Making Headlines Right Now

OBAMA ECONOMY
UPDATE: Obama team spells out need for bailout money

President-elect Barack Obama's top economic
adviser tells Congress that the need for the remaining $350 billion
of the financial bailout package is "imminent and urgent."
Larry Summers has written a letter to the bipartisan leadership
of the House of Representatives and the Senate to assure lawmakers
that the money will be used to help community banks, small
businesses, consumers and homeowners as well as large financial
institutions.
The letter comes as Obama asks Bush to seek the remaining money
in the Troubled Asset Relief Program (TARP) so that Obama can have
the money at his disposal promptly after taking office.

OBAMA-ECONOMY-BUSH
UPDATE: Bush agrees to ask for financial bailout funds

The White House says President George W. Bush
has agreed to ask Congress to release the remaining $350 billion
intended to help the nation deal with its financial crisis.
White House press secretary Dana Perino said Bush is acting on a
request of President-elect Barack Obama. She said the Bush White
House will continue working with Obama's transition team and with
Congress on how best to proceed on the release of the money.
The idea is to make the money available to the new
administration shortly after Obama takes office Jan. 20. The
unpopular bailout has featured unconditional infusions of money
into financial institutions that have done little to account for
it.

BUSH-NEWSER-MISTAKES
Bush cites disappointments, mistakes, in office

In the final days of his presidency, George W.
Bush is acknowledging a list of mistakes or disappointments.
Here's his list:
-He said, "Clearly, putting 'Mission Accomplished' on an
aircraft carrier was a mistake." The banner went up shortly after
Saddam
Hussein was toppled from power.
-Bush also said that "some of my rhetoric" has been a mistake.
He has been widely criticized for proclaiming "Bring it on!" to
terrorists around the world.
-He said he probably miscalculated in going immediately for an
overhaul of the Social Security program, rather than seeking
immigration reform, in the wake of his re-election to a second term
in 2004.
-Bush also cited his "disappointment" with the revelations of
abuses at the Abu Graib (ah-booh GRABE) detention camp in Iraq and
in never turning up weapons of mass destruction in the country.

ISRAEL-PALESTINIANS
UPDATE: Reserves move into Gaza as Israel pounds new Hamas
targets

Thousands of Israeli reservists have
begun moving into the Gaza Strip.
They are taking over areas cleared by regular troops. That will
allow those forces to push toward new targets. The deployment is
being taken as a sign that Israel is preparing to intensify its war
against Gaza's Hamas rulers.
Israeli warplanes have been pounding the homes of Hamas leaders
as ground troops edge closer to the Gaza Strip's densely populated
urban center.
Black smoke has been seen rising over the eastern suburbs of
Gaza City, where the two sides skirmished overnight.
At least six Palestinians have been killed in the latest
airstrikes or died from their wounds today. Among the dead is a
militant killed in a northern Gaza battle.
At least 15 militant rockets have been fired into southern
Israel but no injuries have been reported.

US-GAZA-EVACUATION
NEW: State Dept: US to evacuate 150 from Gaza

The State Department says it is planning to
evacuate about 150 Americans and non-American family members from
Gaza, where Israel is continuing major military operations against
Hamas militants.
Spokesman Gordon Duguid (DO-good) says U.S. diplomats in Tel
Aviv and Jerusalem are taking steps to help them leave once
arrangements can be made with Israel for their safe travel out of
the conflict zone. The State Department has already evacuated 27
people, 16 Americans and 11 non-American family members, from Gaza
since the fighting began on December 27.
The Council on American Islamic Relations said Wednesday that
the Gaza home of two American children aged three and six had been
hit by Israeli fire and urged the department to take immediate
action to assist U.S. citizens trapped by the fighting.

IRAQ
Officials say blasts kill at least 10

The death toll now stands at 10 in a series of
bombings targeting Iraqi security forces.
The largest took place when two parked vehicles exploded in a
commercial district in Baghdad. The blasts hit as a police patrol
passed by. Officials say at least four people died, including a
police officer. Nine other people were wounded.
There's also word that a roadside bombing struck a military
convoy in western Baghdad. Police say three Iraqi soldiers were
killed and four bystanders were wounded.
Police say two other roadside bombs were apparently aimed at
Iraqi army and police patrols elsewhere in Baghdad. Three people
died and six others were wounded.
The violence comes as Vice President-elect Joe Biden makes an
unannounced visit. He's been meeting with Iraqi President Jalal
Talabani and top U.S. officials.

MADOFF SCANDAL
UPDATE: NYC judge allows Madoff to remain free

A judge has allowed Bernard Madoff to remain
free on bail, rejecting a bid by prosecutors to send the disgraced
money manager to jail.
Madoff mailed more than $1 million in jewelry and heirlooms to
family and friends over the holidays. Prosecutors said the gifts
were grounds to have his bail revoked because what's left of
Madoff's assets will have to be returned to burned investors.
Madoff's lawyers said the gifts were an innocent mistake and
said he is neither a danger to the community nor a threat to flee.
The fact that Madoff (MAY'-dawf) has been able to spend his days
in his luxury apartment - and not jail - has stirred up outrage
among investors who lost billions in his alleged fraud that he
reportedly describes as a $50 billion Ponzi scheme.

AUTO SHOW-TOYOTA PRIUS
NEW: Toyota unveils 2010 Prius that boasts 50 mpg

Toyota is looking to keep the Prius in its spot
as the top-selling hybrid in the U.S. with the next generation of
the iconic fuel-sipper.
The highly anticipated 2010 Prius being unveiled Monday at the
North American International Auto Show in Detroit gets an average
of 50 miles to the gallon. That's a 4 mpg improvement over the
current model, which already is the most fuel-efficient vehicle
ranked by the Environmental Protection Agency.
The third generation gas-electric Prius has a more aerodynamic
design, but its exterior is easily recognizable as a Prius. Toyota
says pricing will be released before the midsize sedan goes on sale
in late spring.
Toyota Motor Corp. also will offer options such as a moonroof
with solar panels to power the ventilation system.

MISUSED MARSHALS
NEW: Report: US Marshals misused as sports escorts

Investigators say a lawyer for the U.S.
Marshals Service used government cars and armed deputies to drive
himself and broadcasters to major sporting events like the Super
Bowl and the World Series.
A report by the Justice Department's inspector general was
highly critical of the lawyer, Joseph Band, who worked in the
agency's Washington office.
Band also worked as a part-time statistician for Fox Sports. He
received rides to two World Series games in 2007 in Boston, as well
as the 2008 Super Bowl in Phoenix.
The report issued Monday by Inspector General Glenn Fine says
Band sometimes got escorts not just for himself, but for
broadcasters as well.
Fine says use of armed government agents as a VIP car service
violates ethical standards.

MINNESOTA SENATE
NEW: Franken campaign asks for certificate to take seat

Democrat Al Franken is asking the
Minnesota governor and secretary of state to issue an election
certificate that would let him take office in the Senate.
In letters the campaign sent Monday, Franken's lawyers argue
that a seven-day waiting period has passed and he should get the
signed certificate. State law requires the waiting period after the
election is finalized; the election was finalized on Jan. 5, with
Franken leading Republican Norm Coleman by 225 votes after a
statewide recount.
But Coleman is suing over the result. Minnesota law appears to
prevent the issuance of a certificate until that case is resolved.
Franken attorney Marc Elias says the campaign believes federal law
entitles him to the certificate before the Coleman lawsuit is
settled.
There was no word from Republican Gov. Tim Pawlenty and
Democratic Secretary of State Mark Ritchie.