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1. The White House says it's very close to a decision on how to help the troubled US auto¹ industry. But the Bush administration didn't provide any details or even a timetable on when an announcement would be made. One option being considered is a managed bankruptcy².

2. Meantime, President-elect Barack Obama says a good portion of the nation's economic troubles can be blamed on government regulators who “dropped the ball”. Obama also named three veteran regulators to help clean up financial debacles.

3. The Iraqi journalist who threw his shoes at President Bush is asking for a pardon. The correspondent could face two years behind bars for insulting a foreign leader.

4. The New York Yankees have finalized³ their contracts with free-agent pitchers⁴ CC Sabathia and A.J. Burnett. Sabathia is getting a record $161 million, seven-year contract and Burnett is getting an $82.5 million, five-year deal.

WORDS IN THE NEWS

1. drop the ball: (AM,informal)

to make a mistake, especially by doing something in a stupid or careless way.

2. debacle: n.

an event or situation that is a complete failure

3. pardon: n.

an official order allowing someone who has been found guilty of a crime to go free without being punished

4. free-agent:

A free-agent professional athlete is free to sign a contract with any team.