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Israeli Prime Minister Ehud Olmert is refusing to resign Monday after a special commission harshly criticized his leadership during last July's war in Lebanon. The two Israeli soldiers whose kidnapping sparked the war in Lebanon are still not free.

The Senate is expected to pass legislation that would expand the number of embryonic stem-cell lines eligible for federal research funding. The House passed similar legislation, but a presidential veto is expected.

Documents relating to the late-night hospital room standoff between the Justice Department and the White House over the domestic spying program suggest that Vice President Dick Cheney punished a DOJ official who stood in the way of the reauthorization of the controversial program.

The Bush administration has announced plans to replace Gen. Peter Pace as chairman of the Joint Chiefs of Staff. Rather than risk a Senate confirmation struggle by reappointing Pace, Defense Secretary Robert Gates said he would recommend Adm. Mike Mullen to replace him.

The U.S. House passed the rescue package, paving the way for the government to start buying up troubled assets from financial institutions caught on the wrong side of record home foreclosures. Brian Naylor discusses the new bill.

President Bush announced a plan that will allow the U.S. government to spend about $250 billion of its $700 billion bailout program to buy equity stakes in banks. The government has been careful to call the program a "recapitalization" plan.

The rival candidates are spelling out their plans to improve the economy in appearances this week. And those plans have markedly different approaches to an issue likely to dominate the presidential race.

President Obama's pick for Treasury secretary, Timothy Geithner, began his confirmation hearing with an apology Wednesday. He told members of the Senate Finance Committee the tax questions that delayed his confirmation were the result of his own careless mistakes. But he added the mistakes were unintentional. The panel is expected to vote Thursday on his nomination.

The Senate is set to vote Thursday on whether to release the second half of the $700 billion financial rescue package. While most Democrats are on board to approve the funds, many Republicans say the bill lacks transparency and accountability. President-elect Barack Obama's economic team went to Capitol Hill Wednesday to try to win them over.

Retired Gen. Eric Shinseki, President-elect Barack Obama's pick to head the Department of Veteran Affairs, has promised to modernize the agency. Shinseki appeared Wednesday before the Senate Veterans Affairs Committee at his confirmation hearing.