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From The Associated Press

Iraqis: U.S., Iraq close to deal

BAGHDAD—Iraq and the U.S. are near an agreement on all American combat troops leaving Iraq by October 2010, with the last soldiers out three years after that, two Iraqi officials told The Associated Press on Thursday. U.S. officials, however, insisted no dates had been agreed.

The proposed agreement calls for Americans to hand over parts of Baghdad’s Green Zone — where the U.S. Embassy is located — to the Iraqis by the end of 2008. It would also remove U.S. forces from Iraqi cities by June 30, 2009, according to the two senior officials, both close to Iraqi Prime Minister Nouri al-Maliki and familiar with the negotiations.

The officials, who spoke separately on condition of anonymity because the talks are ongoing, said all U.S. combat troops would leave Iraq by October 2010, with the remaining support personnel gone “around 2013.” The schedule could be amended if both sides agree — a face-saving escape clause that would extend the presence of U.S. forces if security conditions warrant it.

Both Iraqi and American officials agreed that the deal is not final and that a major unresolved issue is the U.S. demand for immunity for U.S. soldiers from prosecution under Iraqi law.

Iraqi cleric links truce, withdrawal timetable

BAGHDAD—Shiite cleric Muqtada al-Sadr will call on his fighters to maintain a cease-fire against American troops but may lift the order if a planned Iraq-U.S. security agreement lacks a timetable for the withdrawal of American forces, a spokesman said Thursday.

The statement by Sheik Salah al-Obeidi comes as al-Sadr plans to reveal details of a formula to reorganize his Mahdi Army militia by separating it into an unarmed cultural organization and elite fighting cells.

The announcement is expected during weekly Islamic prayer services on Friday.

Citigroup returning billions to investors

WASHINGTON, D.C.—Citigroup Inc. will buy back more than $7 billion in auction-rate securities and pay $100 million in fines as part of settlements with federal and state regulators, who said the bank marketed the investments as safe despite liquidity risks.

Citigroup will buy back the securities from tens of thousands of investors nationwide under separate accords announced Thursday with the Securities and Exchange Commission, New York Attorney General Andrew Cuomo and other state regulators. The buybacks from nearly 40,000 individual investors, small businesses and charities are not expected to cause significant losses for Citigroup; they must be completed by November.

Similar steps to buy back auction rate securities from customers are expected to be taken by other financial institutions. Bank of America Corp. revealed that it has received subpoenas and requests for information about its sale of the investments. Merrill Lynch & Co. said it will offer to buy back an estimated $12 billion in auction rate securities, though the company has already been actively reducing that amount.

Pakistani ruling coalition moves to oust Musharraf

ISLAMABAD, Pakistan—After months of internal bickering, Pakistan’s governing coalition announced Thursday it will seek to impeach President Pervez Musharraf, cranking up pressure on the U.S.-backed former general to resign.

With his popularity at rock bottom and civilian political forces arrayed against him, the outlook is gloomy for the leader who pushed Pakistan into the U.S.-led war on extremist groups after the Sept. 11 attack on America.

Stripping Musharraf of the presidency will require a two-thirds majority of lawmakers voting in a joint session of both houses of Parliament.

Navajo president vetoes smoking ban

ALBUQUERQUE, N.M.—Navajo Nation President Joe Shirley Jr. has vetoed a measure that would have banned smoking and chewing tobacco in public places across the vast reservation.

Tribal lawmakers had approved the ban during their summer session last month in the Navajo capital of Window Rock, Ariz. Shirley had 10 days to consider the measure.

Shirley says in a veto message issued Thursday he was concerned the ban would infringe upon religious ceremonies and would affect the tribe’s ability to generate revenues through its new gaming initiative.

Shirley also says the measure didn’t adequately focus on underage smoking.