JIM LEHRER: President Bush offered ways today to help homeowners pay their mortgages. He outlined proposals to avert loan defaults and home foreclosures. The plan would permit homeowners with good credit to refinance into federally insured mortgages if they can't make their payments.
The president also called for stricter enforcement of laws against predatory lenders, and he urged Congress to reform the tax code to let people avoid a penalty when they refinance. At the same time, Mr. Bush ruled out helping lenders who made too many bad loans. He said a bailout would only encourage them to do it again.
The chairman of the Federal Reserve made his own effort today to reassure the public. Ben Bernanke said the Fed "will act as needed" so the credit crunch does not hurt the economy.
Wall Street rallied on the news. The Dow Jones Industrial Average gained 119 points to close at 13,357. The Nasdaq rose 31 points to close at 2,596. The major indexes fell for the week, but for the month the Dow gained 1 percent, the Nasdaq rose 2 percent. We'll have more on the Bush and Bernanke statements and reaction right after this news summary.
Another key member of the Bush administration is stepping down. President Bush announced today Press Secretary Tony Snow will leave on September 14th. Snow said he's going because of financial concerns and not because of his battle with cancer. He said he will miss the job.
TONY SNOW, White House Press Secretary: I am sure I'm going to go through some serious withdrawals in two-and-a-half weeks. But on the other hand, this is a chance for the first time in my life where I'll actually be able to decide what I want to do when I grow up. And I will spend a lot of time trying to speak out on things I care about when looking at opportunities and trying to do some good.
JIM LEHRER: The president named Snow's deputy, Dana Perino, to be the new press secretary.
The president got a top-level briefing on Iraq today from the Joint Chiefs of Staff. The Pentagon session was a prelude to assessments due next month on security and political progress.
The New York Times reported today an independent panel has found the Iraqi national police are "hopelessly corrupt" and need overhauling. The report was commissioned by Congress. A Pentagon spokesman said efforts to get rid of corruption in the Iraqi force were showing progress.
Iraqi Prime Minister al-Maliki's government appealed today for more militias to freeze operations; that came a day after Shiite cleric Muqtada al-Sadr ordered his Mahdi Army to stand down for six months.
Also today, the U.S. military announced two more U.S. troops were killed Wednesday; that brought the toll for August to at least 80, up two from July. More than 3,700 Americans have died in Iraq since the war began.
Two Egyptians were indicted today in Florida on federal terrorism charges. The two are students at the University of South Florida. Earlier this month, police stopped their car in South Carolina near a Navy base where enemy combatants have been held. Investigators found pipe bombs in the car.
Republican Senator John Warner of Virginia announced today he won't run for a sixth term. Warner has been a leading voice on military affairs. In Charlottesville today, he pointed to the physical demands of the job, made apparent during a trip to Iraq this month.
SEN. JOHN WARNER (R), Virginia: It was day and night, jumping on and off helicopters, cargo planes, shaking hands, quickly eating, and moving on. I withstood it fine, just as well as when I was in boot camp in the Marines. No problem at all. But you've got to face I'm now 80. I will be near 88 when I finish. And I was always amused by one physician talking to me the other day. He said, "Now, your eighties are your golden years. Enjoy them."
JIM LEHRER: After that trip, Warner called for U.S. troops to begin leaving Iraq by Christmas.
Senator Larry Craig of Idaho will announce tomorrow whether he's resigning or staying on. A number of fellow Republicans have pressed him to step down over his June arrest in Minneapolis. Police were investigating sexual activity in an airport men's room. Craig pleaded guilty to disorderly conduct.
A top Democratic fundraiser turned himself in today in California on a grand theft charge. Norman Hsu had been a fugitive since 1991 when he failed to appear for sentencing. He went on to become a clothing executive in New York. Most recently, he helped Senator Hillary Clinton's presidential bid. This week, she and others returned thousands of dollars he raised.
The first same-sex marriage in Iowa was performed today. A state judge threw out a law against it yesterday, and some 20 gay couples applied for marriage licenses. At least one couple got married today before the same judge stayed his ruling. The issue now goes to the State Supreme Court.
Princess Diana's family gathered in London today to mark 10 years since her death. She was killed in a car crash in a Paris tunnel in 1997. Some 500 people attended today's memorial service, including Diana's two sons and Queen Elizabeth II. Prime ministers past and present were also on hand.
Prince Harry offered a tribute to his mother.
HRH. PRINCE HARRY: She was our guardian, friend and protector. She never once allowed her unfaltering love for us to go unspoken or undemonstrated. She will always be remembered for her amazing public work, but behind the media glare, to us, just two loving children, she was quite simply the best mother in the world. We would say that, wouldn't we? But we miss her.
JIM LEHRER: The bishop of London also spoke. He urged an end to a long-running war of words between Diana's fans and her detractors.
