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NEW YORK – Citigroup Inc. (C) and Wachovia Corp. (WB), two of the four largest U.S. banks, on Friday reported record quarterly profits, as consumers borrowed more, bad loans declined and costs were kept in check. Citigroup, the largest bank, said first-quarter profit increased 3 percent, while Wachovia, the fourth-largest, …

WASHINGTON – A boss sends a red bra to a former female subordinate who had a falling out with him. Government e-mails distribute profanity and a picture of a partly nude woman. An order to better protect patients in a medical experiment takes two years to complete. All of that …

WASHINGTON – Senior U.S. military commanders have become so pleased with events in Iraq that they expect troop levels (search) to drop to about 100,000 by early next year, depending on the persistence of the insurgency and local security-force training, defense sources confirmed to FOX News. “We’re hitting our goals,” …