Political Scene

HOUSE

Retiring Democrat faces ethics complaint

The House ethics panel is reviewing a complaint against retiring Rep. Eric Massa, New York Democrat, by a male staffer who reportedly felt uncomfortable in a situation with Mr. Massa that had sexual overtones.

A House aide characterized the complaint on Thursday to the Associated Press. Mr. Massa said Wednesday that he will not seek a second term after a recurrence of cancer last year. The aide was not authorized to discuss the charge and spoke on the condition of anonymity.

The ethics panel issued a brief statement Thursday saying it is “investigating and gathering additional information concerning matters related to allegations involving” the freshman congressman.

Mr. Massa’s office did not immediately respond to messages Thursday seeking comment. The lawmaker, who is married, was stricken with non-Hodgkin’s lymphoma in 1996.

WYOMING

’Gov. Dave’ declines bid for third term

CHEYENNE | Wyoming Gov. Dave Freudenthal said Thursday that he will not seek re-election, ending speculation that the popular Democrat might try to overturn a state law that would have prohibited him from pursuing a third term.

Mr. Freudenthal, 59, said he decided after members of his family unanimously opposed another run.

Mr. Freudenthal, whose office door in the state Capitol bears the painted sign “Gov. Dave,” has enjoyed considerable popularity since narrowly winning his first election in 2002. He won re-election in 2006 with 70 percent of the vote, even though registered Republicans in the state outnumbered Democrats by a margin of more than 2-to-1.

No Democrats have expressed interest in running, and Republicans hope to recapture the statehouse in November.

TREASURY

Bank warrants sale raises $1.54 billion

The Treasury Department has received a record $1.54 billion from the sale of warrants it received from Bank of America as part of the support it provided under the $700 billion Wall Street bailout.

The Treasury Department said Thursday that it sold 272.17 million warrants in an auction held because Bank of America and the government could not agree upon an acceptable price. Warrants are financial instruments that allow the holder to buy stock in the future at a fixed price.

The $1.54 billion total is the largest amount raised from a single institution from the sale of warrants as part of the government’s financial rescue effort.

IRAN

GAO finds sloppy records on sanctions

Congressional investigators say sloppy record-keeping is making it hard to ensure Iran does not receive U.S. military goods it is not supposed to acquire.

The Government Accountability Office said Thursday that it’s tough to know whether sanctions against sending military items to Iran are being enforced. The sanctions allow only humanitarian goods for export to Iran.

Lawmakers asked for the review after an Associated Press investigation. The AP found a dramatic rise in U.S. exports to Iran under President George W. Bush. That included military rifles, though the Bush administration said the guns went to Iraq.

The GAO is calling for better documentation to make sure the sanctions are enforced.

HOUSE

Lawmakers push for NAFTA repeal

A group of U.S. lawmakers offered legislation Thursday to withdraw from the North American Free Trade Agreement in the latest sign of congressional disillusionment with free-trade deals.

The bill, spearheaded by Rep. Gene Taylor, Mississippi Democrat, would require President Obama to give Mexico and Canada six months’ notice that the United States will no longer be part of 16-year-old trade pact.

The lawmakers made the move as Mr. Obama says he wants to resolve problems blocking congressional approval of long-delayed trade deals with South Korea, Panama and Colombia. The strongest opposition to those agreements comes from Mr. Obama’s fellow Democrats.

Mr. Taylor blames NAFTA for a loss of U.S. manufacturing jobs that he thinks threatens national security, a spokesman for the conservative 10-term congressman said.

JUSTICE

AIG subsidiaries settle bias complaint

The Justice Department says two subsidiaries of American International Group Inc. have agreed to pay $6.1 million to settle charges of discrimination against black borrowers.

A complaint charges that black borrowers nationwide were charged higher fees for their home loans.

The settlement was filed Thursday in connection with the complaint under the federal Fair Housing and Equal Credit Opportunity acts.

From wire dispatches and staff reports