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Gov. Audit Finds U.S. Overpaid Blackwater Wall Street Journal ($)
A government audit found that the State Department overpaid the contract-security firm once known as Blackwater Worldwide by tens of millions of dollars because the company failed to properly staff its teams in Iraq.

IG Report: Regulators Failed Banks USA Today
The inspectors general at the U.S. Treasury and the Federal Deposit Insurance Corp. (FDIC) have both issued reports saying that bank failures surged because regulators in some cases didn't step in and prevent hazardous behavior, and in others actively helped banks hide their growing problems.

CIA Mistaken on 'High-Value' Detainee Washington Post
An al-Qaeda associate captured by the CIA and subjected to harsh interrogation techniques said his jailers later told him they had mistakenly thought he was the No. 3 man in the organization's hierarchy and a partner of Osama bin Laden, according to newly released excerpts from a 2007 hearing.

Detainee Says He Lied to CIA Interrogators Los Angeles Times
Self-proclaimed Sept. 11 mastermind Khalid Shaikh Mohammed told U.S. military officials that he had lied to the CIA after being abused, according to documents made public Monday. The claim is likely to intensify the debate over whether harsh interrogation techniques generated accurate information.

Study Suggests Link Between Deaths, ADHD Drugs Washington Post
Children taking stimulant drugs to treat attention-deficit hyperactivity disorder are several times as likely to suffer sudden, unexplained death as children who are not taking such drugs, according to a study of a small group of children that was funded by the Food and Drug Administration and the National Institute of Mental Health.

Signs of Fraud, but No Hard Evidence in Iranian Election WaPo
Legislators' Cars Cost California Taxpayers LAT
Microsoft Sues Three in Click-Fraud Scheme NYT
Obama To Propose New Banking Regs LAT
Fraud Victims Want Maximum for Madoff NYT
S.E.C. Seeks Ruling on Reserve Fund NYT
Report: Antiterror Fight Undercuts Religious Freedom NYT
Government Reform Efforts Fall Short in Illinois NYT
Sen. Grassley Seeks Answers on IG Firing ABC
Stimulus Earmark Criticized Politico
South Africa Investigates Alleged Ponzi Scheme WSJ ($)