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Terrorist attacks and the ongoing battle with the Islamic State cast a shadow over some of the accomplishments the president tried to highlight in his year-end news conference on Friday.

President Obama unveiled a plan to overhaul regulation of the nation's financial institutions Wednesday. He blamed the current economic crisis on a culture of irresponsibility by Wall Street, Main Street and Washington. Obama also said the government had to do more to protect consumers. The effort requires congressional action and would represent the most substantial revamping of the regulatory structure since the Great Depression.

The Labor Department said Friday the nation's unemployment rate rose to 9.7 percent in August, the highest since 1983. But the economy shed a net total of 216,000 jobs, the fewest monthly losses in a year.

Soldiers returning from Iraq often have to confront painful memories of war. Now military and veteran hospitals are using virtual reality to help veterans relive their experiences in order to break through them.

The Senate enters the second week of debate on a defense bill setting military policies and authorizing next year's Pentagon spending. Some senators are pushing to restore the legal protections of foreign detainees deemed to be "unlawful enemy combatants."

Senior officials have been deployed by the Bush administration to plead for more time for a troop surge to show results, after Congress voted in favor of a U.S. troop withdrawal from Iraq. But two Republican senators have introduced a bill calling for a pullout.

Relentless rains have pounded north-central Texas and southwest Oklahoma over the past two weeks. At least 11 people have died. Thousands have scrambled to safety. Fire ants and snakes are the next worry.

Sen. Barack Obama (D-IL) is making a weekend campaign swing through South Carolina. The state's January presidential primary will be the first held in the southern U.S. and could provide a key test of Obama's viability with black voters.

The Supreme Court rejects two Bush administration plans — one on global warming, the other on coal-fired power plants. The decisions are the latest in a string of setbacks the administration has suffered in the courts.

Opening statements began today in the penalty phase of the trial of Zaccarias Moussaoui, the only person charged in connection with the terrorist attacks of Sept. 11, 2001. Moussaoui has pleaded guilty to conspiring with al-Qaida to hijack planes and commit other crimes.