The foreclosure probe by 50 state attorneys general is ongoing, but Iow AG Tom Miller said last week that JPMorgan and Bank of America might be the first of the big five lenders to settle the matter.

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The apartment that Mrs Meagher shared with her husband Tom was searched twice on Tuesday, but Det Insp Potter said that Mr Meagher is not being treated "in any way" as a suspect and there are no other suspects at this stage.

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But Tom Scully, CMS administrator under President George W. Bush, said the plan would not be that difficult to implement.

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