Richardson Probe » New Mexico Gov. Bill Richardson's withdrawal from consideration for commerce secretary because of an ongoing federal "pay-to-play" investigation is dominating headlines this morning. As The Washington Post reports, the probe focuses on "whether Richardson's office urged a state agency to hire a California firm as a result of generous contributions from the company and its president to political action committees established by the governor." See key events related to Richardson probe and more from the Chicago Tribune, New York Times, Wall Street Journal, U.S. News & World Report and Politico.

Md. Police Spied Far, Wide » The Maryland State Police surveillance of advocacy groups was far more extensive than previously acknowledged, with records showing that troopers monitored -- and labeled as terrorists -- activists devoted to such wide-ranging causes as promoting human rights and establishing bike lanes. — The Washington Post

Madoff Chasers Dug for Years » Federal regulators examined Bernard L. Madoff Investment Securities LLC at least eight times in 16 years, but regulators never came close to uncovering the alleged $50 billion Ponzi scheme that investigators now believe began in the 1970s. — Wall Street Journal

Activist Unveils Himself as Informant » Brandon Darby is expected to testify against two Texas men who were arrested during the Republican National Convention in St. Paul on charges of making and possessing Molotov cocktails. "The simple truth is that I have chosen to work with the Federal Bureau of Investigation," Darby said in disclosing his role. — New York Times

Watching Ledbetter » Lilly M. Ledbetter's complaints of sex-based pay discrimination became a rallying point for Democrats during the presidential campaign. Now, President-elect Barack Obama is planning swift action to overturn the Supreme Court's ruling in her case, which made it much harder for people to challenge discrimination. — New York Times

After the jump...

BEST OF THE REST

» Illinois Employees to Attend Ethics Training (Tribune)
» Franken Looks Like a Winner, but Not Quite a Senator (WaPo)
» Roland W. Burris Vows to Fight On (NYT)
» Alaska Trooper, Union Allege Delay in Johnston Drug Case (ADN)
» Wall Streeters Flock to Failed IndyMac (WSJ)
» Rail Shippers Ask Congress to Regulate Freight Prices (WSJ)