Obama makes key Cabinet picks

Several key appointments, including State and Treasury Department secretaries appear to be nearly-done deals, with Democratic officials confirming President-elect Barack Obama's intended nominees.

Pentagon bans computer flash drives
The Pentagon has banned, at least temporarily, the use of external computer flash drives because of a virus threat officials detected on Defense Department networks.

Bush effigy burned at Iraq protest

Followers of a Shiite cleric on Friday stomped on and burned an effigy of President Bush in Baghdad as they protested a proposed U.S.-Iraqi security pact on Friday.

Bush signs bill providing extra jobless benefits
President George W. Bush on Friday ensured that millions of laid-off workers will keep getting their unemployment checks as the year-end holidays approach.

Obama team springs leaks

Barack Obama was famously able to impose discipline and control over his presidential campaign, but it didn't take long for him to discover that running a transition is something quite different.

Islamists: We'll fight Somali pirates
A radical Islamic group in Somalia said Friday it will fight the pirates holding a Saudi supertanker loaded with $100 million worth of crude oil.

Germany drops attempt to ban Scientology
Germany is dropping its pursuit of a ban on Scientology after finding insufficient evidence of illegal activity, security officials said Friday.

Child deaths test faith-healing exemptions
Three criminal cases have revived concerns about exemptions that most states grant to parents who rely on faith healing instead of doctors to treat sick children.

GM, Chrysler make cuts to hold on for loans

Chrysler and GM need to follow Lee Iacocca's play book now as they try to outlast the debate in Washington over whether they will get billions in government loans.