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TODAY'S HEADLINES, 5/16/12 *** Virginia’s Republican-led House has rejected the judicial nomination of an openly gay prosecutor after opponents said he would push an activist agenda. Tracy Thorne-Begland, a former Navy officer and fighter pilot, failed to gain the necessary majority when lawmakers voted 33-to-31 to support him, with 10 abstaining. Thorne-Begland was the only candidate among more than three dozen judicial nominees to be rejected *** The Justice Department has opened a criminal probe of a $2 billion trading loss at the nation’s largest bank, JPMorgan Chase. JPMorgan acknowledged the loss last week, saying it had come out on the losing end of a risky bet in derivatives which the public now has to pay. Democrats want tougher rules regulating the banks to prevent these things form happening but Republicans have fought any regulation at all *** The U.S. Drug Enforcement Agency is being accused of taking part in a raid that mistakenly killed four civilians in Honduras. According to local officials, a helicopter carrying Honduran and U.S. officers opened fire on a boat crossing a river that they thought was smuggling illegal drugs. Instead, the attack allegedly killed two women — both of whom were pregnant — and two men. Four others were also wounded. The Honduran military and the DEA have yet to respond to requests for comment. U.S. forces are in Honduras operating out of at least three military bases as part of the drug war *** *** More tomorrow

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