The Morning Wrap

Peering Inward: The Securities and Exchange Commission will investigate the relationship between a former official at the agency and a niece of financier Bernard Madoff, The Wall Street Journal reports. SEC Chairman Christopher Cox has admitted "apparent multiple failures" to oversee the firm at the center of Madoff's alleged $50 billion Ponzi scheme.

Shoe Fly: The Iraqi television reporter who chucked his shoes at President Bush during a news conference is scheduled to appear before a judge Wednesday, The New York Times reports. At the appearance, a criminal court judge will decide whether there is sufficient cause to try the reporter, Muntader al-Zaidi, 29, who has become a folk hero in much of the Arab world for his actions against the president in Baghdad on Sunday evening.

Pay Cu--I Mean Freeze: Latham & Watkins said Tuesday it will freeze associate salaries in response to "challenging economic times," a move that could signal the rest of the industry to follow suit. Click here, here and here for stories by ATL, The BLT and The Recorder.

Standing Down: The former chief of staff at the General Services Administration, who is on trial for a second time for allegedly lying and obstructing justice during the investigation into disgraced lobbyist Jack Abramoff, unexpectedly decided yesterday to forgo taking the stand in his own defense, handing the case over to a jury, The Washington Post reports. David Safavian told U.S. District Judge Paul Friedman that "right course of action" was not to testify. Jurors are expected to begin deliberations this week.