In the Headlines

"U.S. to Take Over AIG in $85 Billion Bailout" (Matthew Karnitschnig, Wall Street Journal) - The U.S. government seized control of American International Group Inc. -- one of the world's biggest insurers -- in an $85 billion deal that signaled the intensity of its concerns about the danger a collapse could pose to the financial system.

"AIG Rescue Plan Sparks Hill Concerns" (Manu Raju, The Hill) - Senior lawmakers raised concerns Tuesday over the Federal Reserve's $85-billion rescue plan to save insurance giant AIG, fearing the cost and ramifications of the unprecedented move to stabilize the financial markets.

"McCain, Obama Eye Wall Street" (David Jackson, USA Today) - Barack Obama outlined rules for a "21st-century regulatory system" Tuesday, and John McCain proposed a commission to examine the causes of failed banks and over-speculation in the financial markets.

"Abortion Issue Again Dividing Catholic Votes" (David Kirkpatrick, New York Times) - A struggle within the church over how Catholic voters should think about abortion is once again flaring up just as political partisans prepare an all-out battle for the votes of Mass-going Catholics in swing-state towns like Scranton.

On the Morning Shows

Good Morning America - John McCain on whether he agrees with the AIG bailout: "I didn't want to do that, I don't think anyone I know wanted to do that but there are millions of people whose retirements, insurances were at stake and their lives were going to be destroyed. This is one of the most severe crises in modern times."

Today - Tim Pawlenty: "McCain doesn't support the bailout of AIG on a philosophical level but he also understands something needed to be done to try to mitigate the failings of these companies. He authored legislation to crack down on [Freddie Mac and Fannie Mae]. It is not accurate to say he didn't support a crackdown."

Bill Richardson on whether Barack Obama supports the AIG bailout: "Senator Obama wants to get further details on this company. McCain has been chair of the Senate Commerce Committee and apparently has done nothing."