Afghan War Deterioriating, McCain and Obama Advisers Briefed · Senior Bush administration officials briefed campaign advisers to John McCain and Barack Obama two weeks ago, on the grim news that the situation in Afghanistan is getting worse and a plan must be in place before January's Inaugural. (NYT)

Islamic Banking Thrives As Wall Street Falters [ANALYSIS] · Islamic finance, which bans interest and trading in debt according to sharia law, has held steady despite a painful global credit crisis, spurring U.S. Treasury officials to examine its features for regulatory guidance. (Washington Post)

Barclays Secures $12B Capital Injection · Barclays finalized an $11.8 billion capital injection Friday – including a $9.4 billion investment from private investors in Qatar and Abu Dhabi – in a move that will allow it to meet new capital ratios mandated by the U.K. government for Britain's largest banks. (FT)

Barclays Chases $10B Capital Injection · Barclays is reportedly close to securing a $9.8 billion investment from the Qatar Investment Authority and an Abu Dhabi-based sovereign wealth fund in a move that would help it meet new U.K. capital benchmarks.  The bank also discussed investment possibilities with Libya’s sovereign wealth fund. (FT)

Kurdish Leader Says Iraqi-US Pact May Not Pass · The president of the Kurdistan Regional Government said he is doubtful that a bilateral agreement authorizing U.S. forces to remain in Iraq will pass the parliament and cabinet. Massoud Barzani supports it, but other leaders fear appearing too close to the U.S. in advance of provincial elections in January. (NYT)

Most-Watched YouTube Supports McCain [VIDEO] · The most-viewed election-related video on YouTube was done by an Iraq war vet who critisizes Sen. Barack Obama, saying: "When you call the Iraqi war a mistake you disrespect the service and sacrifice of everyone who has died promoting freedom." (BBC) The video has been watched 11 million times.

McCain Slams LA Times On Obama-Khalidi Tape, Despite His Own Ties · Sen. John McCain says the Los Angeles Times would show a tape that purported to show him at a neo-Nazi event, therefore he can't understand why it won't release a video of Barack Obama in the company of Prof. Rashid Khalidi, chair of the Middle Eastern Studies Department at Columbia University. (FOX)

Treasury Official Says America “Open” To Gulf Investors · Deputy U.S. Treasury Secretary Robert Kimmitt told business leaders at the Dubai International Financial Center on Tuesday that the U.S. economy remains "open to investment" by Middle East sovereign wealth funds and other wealthy investors. (AP)

Haaretz: Rumors Say Sarkozy Critical Of Obama On Iran · The Israeli newspaper Haaretz says "reports have reached Israel's government" that "only in closed forums in France" is President Nicolas Sarkozy critical of Sen. Barack Obama's positions on Iran. (Haaretz)

Kurd-Shia Split Over Mosul Threatens New Iraq Rift · A new Iraqi military offensive in Mosul, in the semi-autonomous Kurdish north, risks opening up a new fault-line in Iraq's ethnic conflicts. Nouri al-Maliki's Shiite-led army is purging Kurdish units from the area, replacing them with Baghdad's police and army, and forging ties with local Sunni hard-lines who have long resisted the Kurdish regional government. (NYT)

Brown: China, Gulf States Should Help IMF · U.K. Prime Minister Gordon Brown said Tuesday China and the Persian Gulf states should substantially increase their conributions to the International Monetary Fund 's $250 billion emergency reserve to help nations struggling with the financial crisis. (Bloomberg)

Nir Rosen: Only Afghan Hope Is Negotiations With Taliban [ANALYSIS] · Israeli-American journalist Nir Rosen traveled deep into Afghanistan's Taliban territory unarmed, relying on contacts-of-friends, and concludes that the U.S. has lost the war and the only hope of stability is negotiation with the Taliban. (Rolling Stone)

Wall Street Bankers Look East For New Jobs · U.S. investment bankers and other finance professionals are mulling moving their careers to the oil-flush Persian Gulf, propelled by the hope that Dubai and other Middle East financial hubs will ride out a global recession better than New York or London. (Washington Post)

US Troops Kill 8 Inside Syria · U.S. helicopter-borne special forces carried out a raid inside Syria along the Iraqi border, killing eight people, according to Syrian and U.S. officials. (BBC) This is the first known attack by U.S. troops on Syrian soil.

Israel May Face Elections If Coalition Can’t Form · The ultra-orthodox Shas party says it will not join a coalition sought by Kadima, Israel's largest party, because they oppose negotiations over Jerusalem. Kadima is supported by Labour but the coalition still only has 48 of 120 Knesset members. They may call a general election if a government is not formed by Sunday, which would like benefit the Likud party the most. (BBC)