IMF: Personal accounts likely to raise debt, deficit

WASHINGTON -- The centerpiece of the Bush administration's Social Security overhaul -- letting workers set up personal investment accounts -- would "pose fiscal challenges," International Monetary Fund staff say. The assessment was contained in a broader examination of U.S. economic performance and policies. The 184-nation IMF regularly conducts such examinations with member countries. Under President Bush's plan to revamp Social Security, workers would be allowed to divert a chunk of their payroll taxes into individual investment accounts in stocks and bonds. While these accounts "hold the potential for raising the return on Social Security contributions, they would also imply a significant increase in federal deficits and debt in coming decades," the IMF staff report said.

Ohio official resigns amid growing scandal

COLUMBUS, Ohio -- The director of Ohio's workers' compensation bureau resigned under pressure Friday over the disappearance of at least $10 million worth of rare coins that the agency had bought as an investment. Gov. Bob Taft announced the departure of James Conrad a day after it was learned that $10 million to $12 million of the state's $55 million rare coin investment was believed to be missing -- dramatically more than the previous estimate of $400,000.

Administration wants secret records searches

WASHINGTON -- The Bush administration asked a federal appeals court Friday to restore its ability to compel Internet service providers to turn over information about their customers or subscribers as part of its fight against terrorism. The legal filing with the 2nd Circuit U.S. Court of Appeals in New York comes amid a debate in Congress over renewal of the Patriot Act and whether to expand the FBI's power to seek records without the approval of a judge or grand jury.

Ex-Clinton aide acquitted in fund-raising case

LOS ANGELES -- The former national finance director for Hillary Rodham Clinton's Senate campaign was acquitted Friday of lying to the government about a lavish 2000 Hollywood fund-raising gala. David Rosen was charged with two counts of making false statements to the Federal Election Commission about the cost of the star-studded gala.

First-ever heat advisory issued for Seattle area

SEATTLE -- Residents of the northwest corner of the nation dusted off the sunscreen and shorts Friday as the National Weather Service issued its first-ever heat advisory for Seattle. The advisory was prompted by a second day of record temperatures. Friday's high of 89 degrees broke a 33-year-old record for the date. Thursday's high -- also 89 degrees -- broke a 58-year-old record.

Warlord claims Moscow power outage his doing

MOSCOW -- Chechen warlord Shamil Basayev claimed responsibility for a power outage that caused chaos in Moscow, plunging entire neighborhoods into darkness and stranding thousands of subway passengers, a rebel-linked Web site said Friday. Russian officials insist worn-out equipment caused the power failure, which began with an explosion and fire at a 40-year-old substation and affected the Russian capital and surrounding region.

IMF: Personal accounts likely to raise debt, deficit

WASHINGTON -- The centerpiece of the Bush administration's Social Security overhaul -- letting workers set up personal investment accounts -- would "pose fiscal challenges," International Monetary Fund staff say. ...