Saudi Arabia disputes claims on terrorist funds

WASHINGTON -- Saudi Arabia went on the diplomatic offensive Tuesday, announcing new measures to deny funds to terror groups and disputing allegations it has done a poor job in keeping the money out of terrorists' hands.

The State and Treasury departments immediately issued statements complimenting the Arab kingdom's efforts and muting calls by the White House last week for the Saudis to do more.

But Sen. Bob Graham, D-Fla., chairman of the Senate Intelligence Committee, said "the Bush administration and the Saudis have done a masterful job of turning attention away from ... the trail that leads to the possibility that a foreign government provided support to some of the Sept. 11 hijackers."

Sen. Richard Shelby, R-Ala., said the Saudis had cooperated "some, probably begrudgingly."

Wall Street firms fined $8.25 million for e-mails

NEW YORK -- Securities regulators said Tuesday they fined five Wall Street firms a total of $8.25 million for not keeping e-mails for the required period of time.

The five -- Goldman Sachs, Salomon Smith Barney, Morgan Stanley, Deutsche Bank Securities and U.S. Bancorp Piper Jaffray -- agreed to pay $1.65 million each and to review their record-keeping procedures.

None admitted or denied the allegations.

The fines will go to the U.S. Treasury, New York Stock Exchange and the National Association of Securities Dealers.

The investigation came after regulators and state prosecutors uncovered embarrassing e-mails showing analysts publicly hyping a stock they privately disparaged, allegedly to win lucrative investment banking business.

Feds plan crackdown on hospital overcharging

WASHINGTON -- The government is cracking down on abusive billing practices by hospitals, the Centers for Medicare and Medicaid Services said Tuesday.

The new initiative deals with federal "outlier" payments, with which the government reimburses hospitals for expenses above what Medicare pays for certain conditions, such as heart surgeries. Allegations have arisen in recent months that hospitals may have used the payments to overcharge Medicare.

Under the initiative announced Tuesday, hospitals that are receiving large portions of their revenue through "outlier" payments will be more likely to have their charges reviewed and audited.

Attorneys ask $704,000 in commandments case

MONTGOMERY, Ala. -- Attorneys who won a federal court order for Alabama's chief justice to remove a Ten Commandments monument from the state's judicial building have asked for $704,000 in legal fees and expenses.

A motion filed in federal court Monday asks U.S. District Judge Myron Thompson to approve the payment for the work of six attorneys during a seven-day trial and for more than a year's preparation.

Thompson ruled that the 5,300-pound granite monument to the Ten Commandments is unconstitutional and gave Chief Justice Roy Moore 30 days to remove it. Moore, who had the monument moved into the rotunda last year, has said he plans to appeal the ruling.

Moore has said the money to fight the lawsuit would come out of his pocket or from his supporters. But Ayesha Khan, one of the plaintiffs' attorneys, said Tuesday she expects Moore will ask the state to pay the $704,000.

--From wire reports