Sep 6, 2011, 11:30 p.m.

Edwards' lawyers file to dismiss conspiracy case

WASHINGTON (Reuters) - John Edwards, a former Democratic hopeful for U.S. president in 2008, has asked a federal court to dismiss charges that he used illegal campaign funds to help cover up an extramarital affair during his presidential campaign, his lawyers said on Tuesday. Edwards, a former North Carolina senator and John Kerry's vice presidential running mate, was indicted in June on six counts, including conspiracy, accepting nearly $1 million dollars in illegal campaign contributions and making false statements.

Obama crafting fix as Postal Service faces default

WASHINGTON (Reuters) - The White House is crafting a plan to overhaul the Postal Service and wants to delay a massive health benefits obligation the agency says it cannot pay, a federal official said on Tuesday. The White House will offer its reform plan in the next few weeks for the agency, which lost $3.1 billion last quarter and is approaching due dates for multiple billion-dollar payments, said John Berry, director of the U.S. Office of Personnel Management.

Senate panel OKs disaster aid as funds dry up

WASHINGTON (Reuters) - A Senate panel approved $6 billion in disaster aid on Tuesday but it was unclear whether Congress would be able to replenish the government's dwindling relief fund before it runs dry completely. The government has less than $600 million to help victims of floods, tornadoes, and a hurricane that raked the East Coast last week and has already suspended some payments to ensure that money remains for those who have suffered the most.

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