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Fed to buy long-term U.S. government debt

WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday, in a surprise move, said it will buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.

AIG CEO asks employees to repay some bonus money

WASHINGTON (Reuters) - The head of AIG said on Wednesday he was trying desperately to prevent the company from collapsing when he allowed the payment of $165 million in bonuses that have stoked widespread public outrage.

Army-backed leader cements grip in Madagascar

ANTANANARIVO (Reuters) - Madagascar's new president, Andry Rajoelina, celebrated and consolidated power on Wednesday after being appointed by the Indian Ocean island's military in a move which drew international disapproval.

NATO says 4,000 extra troops needed for Afghan poll

KABUL (Reuters) - NATO's secretary-general said on Wednesday 4,000 more soldiers were needed to secure Afghanistan's presidential election in August and to make sure the vote was credible and fair.

Vatican defends pope condoms stand, criticism mounts

YAOUNDE (Reuters) - The Vatican on Wednesday defended Pope Benedict's opposition to the use of condoms to stop the spread of AIDS as scientists and politicians criticized it as unrealistic and dangerous.

Gas, clothing push up consumer prices

WASHINGTON (Reuters) - U.S. inflation rose in February on higher gasoline and apparel prices, government data showed on Wednesday, indicating some pricing power in the recession-hit economy and easing fears of deflation for now.

IBM in talks to buy Sun Microsystems: sources

NEW YORK (Reuters) - IBM is in talks to buy Sun Microsystems Inc, sources with knowledge of the matter said, a move that could bolster the technology giant against rivals in the high-end computer server and software markets.

Austria’s Fritzl admits murder, enslavement, rape

ST POELTEN, Austria (Reuters) - Josef Fritzl reversed his plea and admitted guilt on all charges on Wednesday after watching the daughter he locked up and raped for 24 years describe her ordeal in 11 hours of video testimony.

U.S. mortgage applications spike on refinance demand

NEW YORK (Reuters) - U.S. mortgage applications surged last week, driven by a spike in demand for refinancing as the average 30-year fixed-rate home loan rate fell, the Mortgage Bankers Association said on Wednesday.

U.S. charges Madoff accountant over phony audits

NEW YORK (Reuters) - An accountant for Bernard Madoff "pretended" to conduct audits of the confessed swindler's investment firm, authorities said on Wednesday in charging him with fraud going back 17 years in the biggest investment scheme on Wall Street.