CIA Connection in Libya?; Tropical Storm Lee to Hit Gulf Coast; Government Sues Banks

Documents tying the CIA to the Qaddafi-led Libyan government were found in an abandoned office in Tripoli, the New York Times reports. The findings, which have not been verified for authenticity, allude to the practice of the American intelligence agency handing over terror suspects to the Libyan government. "While some of the documents warned Libyan authorities to respect such detainees' human rights, the C.I.A. nonetheless turned them over for interrogation to a Libyan service with a well-known history of brutality." [NYT]

Tropical Storm Lee is expected to hit the Gulf Coast sometime this weekend. Some areas are expected to see as much as 20 inches of rain, with localized flooding feared for areas in Louisiana and Mississippi. Meanwhile, Hurricane Katia is building up speed in the Atlantic. It is not clear yet whether or not Katia will make landfall in the United States, however. [CNN]

The Federal Housing Finance Agency filed a lawsuit yesterday alleging that a multitude of big banks sold fraudulent mortgage investments. The suit says that banks including Bank of America, J.P. Morgan Chase, Goldman Sachs, Morgan Stanley, Citigroup and Deutsche Bank "falsely represented" loans that were bundled into securities and sold to Fannie Mae and Freddie Mac. [Washington Post]

A fighter plane escorted a civilian aircraft after it entered restricted air space around Camp David, Politico reports. An F-15E fighter intercepted the small Piper plane yesterday afternoon, when the president was not yet at the retreat. He is there this weekend with his family. [Politico]

There is a chance of thunderstorms later this afternoon. [TWC]