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After a discussion of the state of the banking system and U.S. economy, the bankers were then unceremoniously handed a one-page term sheet outlining Paulson’s plan. The bank CEOs “weren’t allowed to negotiate,” The WSJ reports. “Paulson requested that each of them sign. It was for their own good and the good of the country, he said, according to a person in the room.”

“We have had crazy days for a week now,” said Johannes Smari Oluffsson, manager of the Bonus discount grocery store in Reykjavik’s main shopping center. “Sales have doubled.”

Bonus, a nationwide chain, has stock at its warehouse for about two weeks. After that, the shelves will start emptying unless it can get access to foreign currency, the 22-year-old manager said, standing in a walk-in fridge filled with meat products, among the few goods on sale produced locally.

Jeffrey Churchill was charged with assault in an altercation with a woman in a mall parking lot.

Calvin Thomas was taken into custody in DeKalb County on a concealed weapons charge.

All three are now officers with the Atlanta Police Department.

More than one-third of recent Atlanta Police Academy graduates have been arrested or cited for a crime, according to a review of their job applications. The arrests ranged from minor offenses such as shoplifting to violent charges including assault. More than one-third of the officers had been rejected by other law enforcement agencies, and more than half of the recruits admitted using marijuana.

“On its face, it’s troubling and disturbing,” said Vincent Fort, a state senator from Atlanta. “It would be very troubling that people might be hitting the streets to serve and protect and they have histories that have made them unqualified to serve on other departments.”

But Atlanta police say it’s not so simple. Officials have been trying without success for more than a decade to grow the department

to 2,000 officers, an effort hurt by this year’s budget crisis. With competition for recruits intense among law enforcement agencies, Atlanta has had to make concessions.

“We would like, in an ideal world, to see every applicant with a clean record, but obviously that’s not reality,” said Atlanta police Lt. Elder Dancy, who runs the department’s recruitment unit. “I don’t think you’ll find any departments who hire only applicants with squeaky-clean records.”

Three decades ago, a police officer with a criminal record was much less common than it is now, said Robert Friedmann, a criminal justice professor at Georgia State University. But times have changed and many agencies have had to relax their hiring policies, Friedmann said.

Reports from the German national police obtained by the Südwestrundfunk, Southwest Germany public radio, blow the lid off the long running sting by revealing its role in nabbing a German credit card forger active on DarkMarket. The FBI agent is identified in the documents as J. Keith Mularski, a senior cybercrime agent based at the National Cyber Forensics Training Alliance in Pittsburgh, who ran the site under the hacker handle Master Splynter.

The NCFTA is a non-profit information sharing alliance funded by financial firms, internet companies and the federal government. It’s also home to a seven-agent FBI headquarters unit called the Cyber Initiative and Resource Fusion Unit, which evidently ran the DarkMarket sting.

And, as they say in Chicago, “If you are not at the table, you are on the menu.”

For the record those expected at the table are:

Goldman Sachs CEO Lloyd Blankfein, Morgan Stanley CEO John Mack, Citigroup CEO Vikram Pandit, JPMorgan Chase & Co. CEO Jamie Dimon, and Bank of America Corp. CEO Kenneth Lewis were all asked to attend. There was some speculation that Paulson might have expanded the invitation to at least three other CEOs from various regional banks, people said.

The FDIC directly examines and supervises about 5,250 banks and savings banks, and Paulosn invites at most 8 bankers to discuss how to divvy up $700 billion?

The ECB, the Bank of England and the Swiss central bank will offer unlimited dollar funds in auctions with maturities of seven days, 28 days and 84 days at a fixed interest rate, the Washington-based Fed said today. The Bank of Japan may introduce “similar measures.” The dollar declined and some money-market rates fell.

Policy makers from the Group of Seven nations pledged at the weekend to take “all necessary steps” to stem a market panic after the MSCI World stock index plunged 20 percent last week. Central banks last week cut interest rates in tandem for the first time since 2001, the U.S. plans to buy $700 billion in distressed assets from banks and in Europe, the U.K. is leading a push to keep lenders afloat with taxpayers’ money.

The companies are Citigroup Inc., Wells Fargo & Co., JPMorgan Chase & Co., Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley, State Street Corp., and Bank of New York Mellon Corp., the people said. One of the people also said Merrill Lynch & Co. will receive an investment.

The injections represent a new approach for Treasury Secretary Henry Paulson’s attempts to prevent a financial market meltdown from sending the U.S. economy into a prolonged recession. He’s following similar interventions by European leaders and using broad powers Congress gave him earlier this month to save the country’s banking system.

“They’ve decided they need to do something drastic and this is drastic,” said Gerard Cassidy, a bank analyst at RBC Capital Markets in Portland, Maine.

None of banks getting government money was given a choice about it, said one of the people familiar with the plans. All of the banks involved will have to submit to compensation restrictions, said the person.

The government will also guarantee the banks’ newly issued senior unsecured debt, making it easier for them to refinance their liabilities, the person said.

Allocating Money

Michael Cantrell, an engineer at the Army Space and Missile Defense Command headquarters in Huntsville, Ala., along with his deputy, Doug Ennis, had lined up millions of dollars from Congress for defense companies. Now, Mr. Cantrell decided, it was time to take a cut.

“The contractors are making a killing,” Mr. Cantrell recalled thinking at the meeting, in 2000. “The lobbyists are getting their fees, and the contractors and lobbyists are writing out campaign checks to the politicians. Everybody is making money here — except us.”

Within months, Mr. Cantrell began getting personal checks from contractors and later returned to the airport with Mr. Ennis to pick up a briefcase stuffed with $75,000. The two men eventually collected more than $1.6 million in kickbacks, through 2007, prompting them to plead guilty this year to corruption charges.