The Fed: The Federal Reserve may have improperly cut in front of other creditors owed money in Lehman Brothers Holdings Inc.'s $613 million bankruptcy case. A court-appointed examiner—Anton Valukas, chairman of Jenner & Block—is looking into whether the Fed and the New York Fed, which lent Lehman Brothers $46 million in September, were paid back promptly while other debts were left to be sorted out in court, the Wall Street Journal reports.
Burma Trial: A court in Myanmar ruled today to uphold a guilty verdict against opposition leader Aung San Suu Kyi, which could keep the Nobel laureate in prison until after next year’s election. According to Reuters, Suu Kyi was found guilty in August of breaking a law protecting the state from "subversive elements" when, while under house arrest, she allowed an American intruder to stay at her lakeside home for two nights.
Letterman Blackmail: David Letterman admitted during a monologue in front of millions of viewers on the Late Show last night that he had been the victim of extortion attempts by a fellow CBS employee who was trying to blackmail the late-night host. Letterman admitted he had affairs with women who worked for him, which was the subject of the extortion attempts, the New York Times reports. Letterman, who in March married his longtime girlfriend, said he reached out to the Manhattan district attorneys office and had already testified in front of a grand jury about the blackmail. The CBS employee has been arrested. The district attorney’s office is expected to hold a news conference today.
Elizabeth Smart: The Utah girl who was kidnapped seven years ago and held captive for nine months took the stand in a Salt Lake City federal court yesterday in the competency hearing of her captor, Brian David Mitchell. Elizabeth Smart, 14 at the time but now 21, said she was raped on a daily basis and given drugs and alcohol to wear down her defenses, according to a National Public Radio story. Mitchell also told her that if she tried to escape or yelled for help, she would be killed, Smart testified.