Bailout Failure » A $700 billion economic rescue package failed to pass in the House yesterday after an uprising among rank-and-file Republicans ... news of the House's rejection sent the market into a freefall, with the Dow setting a single-day point drop record ... presidential candidates John McCain and Barack Obama both urged action, then blamed each other, for the bill's failure ... and the turmoil that began on Wall Street now spans the globe. — The Washington Post

Chinese Milk Scandal » China detained 22 people accused of operating an underground syndicate that deliberately adulterated milk; the scandal widens internationally as British candymaker Cadbury announced a recall of 11 types of chocolate bars made at its Beijing factory, joining two other Western food producers taking precautionary measures. — The New York Times, The Washington Post

DOJ Firings » The Justice Department has appointed Nora R. Dannehy, a longtime public corruption prosecutor, to continue an inquiry into the firing of U.S. Attorneys by the Bush administration. — The Washington Post

Md. Copter Crash » A preliminary investigation into the deadly crash of a Maryland State Police rescue helicopter over the weekend found that the aircraft was not equipped with a proper warning system. — The Washington Post

Nursing Home Violations » Federal inspectors cited 94 percent of U.S. nursing homes for violations of federal health and safety standards last year, according to a new report by the Department of Health and Human Services. — The New York Times

Gruesome Discovery in Calvert County, Md. » A 43-year-old Calvert County woman is in jail on child abuse charges after her 7-year-old adopted daughter was found wandering the street and two other children were discovered dead in her basement over the weekend; the case raises new questions about the District's adoption procedures. — The Washington Post