The Morning Wrap

Pope Resigning: Pope Benedict XVI announced Monday he will resign on February 28, The Associated Press reports. He said he doesn't have the strength to lead the world's 1 billion Catholics.

State of the Union: President Barack Obama will focus on the economy in his State of the Union address on Tuesday, The Washington Post reports. "Our single biggest remaining challenge is to get our economy in a place where the middle class is feeling less squeezed, where incomes sustain families," said a senior administration official who spoke on the condition of anonymity to describe the address based on drafts.

Budget Cuts: The federal government is almost certain to face the first installment of $1.2 trillion in budget cuts in less than a month, the Los Angeles Times reports. Reductions of $85 billion would take effect from March 1 through September.

Dewey Deal: Retired Dewey & LeBoeuf partners whose qualms threatened to hamper or thwart the defunct firm's bankruptcy proceedings have reached a deal that Dewey lawyers say should lead to the speedy approval of a pending Chapter 11 plan, The Am Law Daily reports.

Sandusky Scandal: Former U.S. Attorney General Dick Thornburgh and a team of others said that a report critical of Penn State University's handling of the Jerry Sandusky child sex abuse scandal was "deeply flawed" and an unfair "rush to injustice," The Morning Call reports. The family of late Penn State football coach Joe Paterno released Thornburgh's findings.