Tim Geithner’s confirmation hearings may not go so smoothly, after all: Sen. Chuck Grassley, the top Republican on the Finance Committee, is looking into the treasury secretary nominee’s nonpayment of Social Security and Medicare taxes and his employment of a housekeeper who lacked proper immigration papers. Senators are discussing the matter behind closed doors today. Geithner is probably hoping his Cabinet nomination doesn’t turn out like Zoe Baird’s did. Bill Clinton’s first choice for attorney general, Baird went down in flames when it emerged she had hired an illegal immigrant nanny, an episode that later came to be known as Nannygate.

Even at this late date, if you really, really want to go to Obama’s inauguration, all you have to do is cough up $500 on Craigslist. That’s what Politico is reporting, anyway. It seems the free distribution of 240,000 tickets has gone awry, with “a thriving gray market” springing up as dozens of entrepreneurial types sell their passes and try to elude congressional staffers. “You can’t stop supply and demand,” a professor of economics at George Mason University tells Politico. “Furthermore, I suspect most of these people don’t really feel they are doing anything wrong in reselling the tickets. It’s not as if they are condemning orphans to starvation.”

Ailing financial behemoth Citigroup, whose shares today fell to their lowest level since the bank’s last government bailout, in November, is going to break itself into pieces to survive. As expected, today it sold a controlling stake in its Smith Barney retail brokerage to Morgan Stanley; Citi will also “place unwanted assets and businesses worth more than $600 billion—a third of its balance sheet—into a ‘non-core’ unit to isolate them from healthier parts of the company,” the Financial Times reports. The move is expected to make Citi look a lot more like the old-style Citicorp. The new unit, which will eventually be sold off, will stay on the company’s books but, to cheer investors, its results will be reported separately. Bloomberg is reporting that CEO Vikram Pandit could announce the plan next week.

Here’s an exclusive from Condé Nast shelter mag Domino: The Obamas have chosen a decorator for the White House, and it’s Michael Smith. The Los Angeles-based Smith, whose first clients were Cindy Crawford and Richard Gere, and who now decorates for Steven Spielberg and the Murdoch-Dengs, said back in April: “I would love to redecorate the White House—I am sick of the paint color!” Domino describes his style as “old-world European influences filtered through a bright, light California sensibility” and his signature as “antique textiles on beds (especially suzanis), checked fabrics on chairs, four-poster upholstered beds.” Sounds perfect for the White House!

Days after a video leaked out of Prince Harry making racist jokes, his dad has his own explaining to do. Apparently, Charles and his pals have been in the habit of calling their friend Kuldip Dhillon, a fellow member of the Cirencester Park Polo Club in Gloucestershire, by the nickname “Sooty.” Dhillon has laughed off the controversy, saying, “I enjoy being called Sooty by my friends who I am sure universally use the name as a term of affection with no offence meant or felt. The Prince of Wales is a man of zero prejudice and both his sons have always been most respectful.” Still, some are calling the Prince of Wales “out of touch” for using the nickname, The Daily Telegraph reports.

Though her confirmation is all but certain thanks to bipartisan support, Hillary Clinton is being pressed at her hearing about donations to her husband's foundation from foreign governments. Top Republican Sen. Richard Lugar suggested that the former president should ban foreign contributions to avoid misperceptions and quid pro quos. Regarding her foreign policy views, Clinton said she and President-elect Obama "believe that foreign policy must be based on a marriage of principles and pragmatism, not rigid ideology" and will advocate "smart power."

Could Bernie Madoff be looking to plead out and avoid a trial? That’s what The New York Times thinks is behind Monday’s court order that says Madoff’s attorney is “engaging in discussions concerning a possible disposition of this case.” “He’s trying to cut a deal,” an attorney unconnected with the case tells The Times. “The only other possible ‘disposition’ that could be negotiated would be for the government to drop the whole case—and that’s not going to happen.” A judge Monday declined prosecutors’ request to revoke Madoff’s bail. Meanwhile, The Wall Street Journal reports on efforts to find out how a Spanish bank, Banco Santander, lost $3.1 billion worth of clients’ money in Madoff’s alleged schemes.

The remake of The Karate Kid just got a whole lot crazier with the news that Jackie Chan will take on the role of mentor Mr. Miyagi. The original 1984 pic starred Ralph Macchio as the bullied kid and Pat Morita as the “old one” who teaches him karate. Variety reports that the remake, which will star Will Smith’s son Jaden as the kid, will “borrow elements of the original plot” and will shoot this summer in Beijing. Guess the “old one” in the new Karate Kid is going to be a whole lot more active.

Yahoo has found a new leader: former CEO of software company Autodesk Inc. Carol Bartz, according to The Wall Street Journal. The selection of Bartz, 60, marks the end of the struggling company's two-month search for a new CEO. Jerry Yang, a co-founder, stepped down after a dramatic decline in the company's stock price under his leadership. No word on how Bartz plans to reverse Yahoo's fortunes in the face of Google and the recession. Yahoo President Sue Decker will leave the company, as expected.

Despite winning Best Drama Series at the Golden Globes this Sunday, the return of critic and audience darling Mad Men is not, in fact, set in stone. Creator Matthew Weiner told E! News, “I don't know anything about next season—I don't even know if it's happening.” He is locked in a contract dispute with the network; AMC claims the show will land on the summer schedule as planned. Christina Hendricks, who plays busty star Joan Holloway said, “There is no show without Matthew.” Weiner advertised his knowledge: “You know me, I'm very forthcoming…And I don't even know what to tell you. I don't know what to say… I've done everything I can. That's all I can tell you.” Guess the highball is in Lionsgate’s court now.

An extraordinary and moving article written by Lasantha Wickrematunge is reprinted in today’s Guardian. The editor of Sri Lanka’s Sunday Leader wrote a column defending investigative journalism in the midst of government terror and predicted his death because of it. As attacks against independent media worsened, he wrote, “Countless journalists have been harassed, threatened and killed. It has been my honour to belong to all those categories, and now especially the last…When finally I am killed, it will be the government that kills me.” He writes the “call of conscience” drove him to pursue journalism, as his paper frequently spoke against the army’s occupation of Sri Lanka’s north and east and the Tamil Tigers, “among the most ruthless and bloodthirsty organisations to have infested the planet.” Despite previous assaults he blamed on the government, he remained close with President Mahinda Rajapaksa, whom he calls a friend, and wrote, “I hope my assassination will be seen not as a defeat of freedom but an inspiration for those who survive to step up their efforts.” Wickrematunge was killed in Colombo three days prior to its publication.

When Israel and Hamas reach an inevitable cease-fire, what will happen next? That’s the question taken up by Richard Haass in Newsweek. Without the intervention of diplomats and the prioritization of negotiating over fighting, Haass argues, not a lot. President Obama needs to quickly and publically set forth what the US would see as a just settlement (establishment of a Palestinian state, financial compensation for refugees, some foothold in Jerusalem). Then the US should increase aid and investment in Palestine while teaming with Turkey to unite Syria and Israel, thus driving a wedge between Syria and Hamas. Building up the Palestinian police and military is the only way to ensure security. In the end, Haass writes, "Israel needs a successful Palestinian state almost as much as the Palestinians do if it is to remain democratic, Jewish, prosperous, and secure."

In a brutal turn of events in Alaska, a convicted sex offender has won a lottery held to benefit sexual abuse victims. The lucky pedophile, twice-convicted Alec Ashoak, redeemed a winning Lucky Time Pull Tabs lottery ticket for $500,000 on Saturday. Proceeds for the lottery are going to Standing Together Against Rape in Anchorage, a nonprofit group that works with sexual assault victims in the area. “It’s not how we had envisioned the story going,” Nancy Haag, the group’s executive director, told CNN Radio. According to FBI statistics, Alaska has the highest per capita number of rape cases in the United States.

But wherever will the tourists go? Theater ticket sales plummeted after the closures of nine shows on Broadway. Last week South Pacific was one of the few shows to dance in front of a full house, while Speed-the-Plow made slight gains in attendance after star Jeremy Piven’s impromptu departure bizarrely blamed on mercury poisoning. Classics and holiday favorites Mamma Mia!, Shrek the Musical, The Little Mermaid, and Mary Poppins posted losses, while three additional shows closed Sunday: Gypsy, All My Sons, and Monty Python’s Spamalot. A sketch last weekend on Saturday Night Live starring the displaced actors, cats, and Music Man proffered ways to save Broadway—yet no conclusions were reached.

New details are leaking out about fugitive financial manager Marcus Schrenker, the 38-year-old Indiana man whose plan to fake his own death by crashing his plane into a Florida swamp has gone wildly awry. Authorities suspect that Schrenker was looking to escape, among other things, a divorce hearing and a federal investigation into his shady business dealings. He parachuted from his aircraft in Alabama, where he vanished on a red Yamaka motorcycle he had stashed. Childersburg, Ala., police lost a soaking wet Schrenker yesterday, after he told them he’d been in a canoe accident; they’re now searching a nearby storage unit. A judge has ordered his assets frozen.

If you’re party-hopping in D.C. in the next four years, you should know Desirée Rogers. As Barack Obama’s social secretary, she’s the one planning every social event and ceremony—the woman with a huge computerized seating chart (“so you can drag the names of guests around until you get it right”). The Chicagoan tells Vogue she is “helping people visualize what the Obama presidency is about, the feelings Americans voted for—inclusion, transparency, embracing people you might never otherwise learn about—and also translating the splendor, that sweetness, that comfort of the White House to everyone.” Quite a task, no? Letitia Baldridge, who held the position during the Kennedy administration, says: “Desirée is so poised and so charming, so substantial and capable, but nonetheless I told her how important it is to always stand up to the West Wing.” Let the gatherings (and gatekeeping) begin!

President-elect Obama may issue an order to close Guantánamo next Wednesday, but the task of finding a home for its 248 prisoners may take up to a year, The New York Times reports. Some of the detainees will be sent to other prisons while others will be resettled abroad—though some of those prisoners can’t return home without fear of retribution. The paper also reports two developments: Obama officials will reject the Bush plan to replace Guantánamo with indefinite detention inside the United States. Obama will also “immediately” end his predecessor’s military commissions, having thought of them, in the words of one source, as a “complete and utter failure.”

America may be more than ready for George W. Bush's presidency to end, but not all countries are eager to see 43 fade off into the sunset. Perhaps no country will miss Bush more than Israel, which, many speculate, launched its recent assault on Gaza to take advantage of the president's support. ("Israel is probably the only place on earth where Bush can still get a standing ovation," says one scholar.) In Africa, Bush enjoys an 80 percent approval rating—he is beloved for his efforts to fight the spread of AIDS, and his role playing peace maker between the Arab north and African south. The Sudanese routinely name their children George Bush. Rounding out the Bush lovers, for reasons economic and geopolitical, are Colombia, the Ukraine, and Georgia.

The morbid fascination that has long made the first few weeks of American Idol so compelling is, perhaps unfortunately, a thing of the past. It's just one of a spate of changes in store for Idol, which comes back to Fox tonight for its eighth season. The show will introduce a fourth judge, Kara DioGuardi, more semifinalists, and a wild card round giving some contestants a second chance. The number of audition episodes will be decreased from four to three. Also down: the number of seemingly certifiable contestants. “They couldn’t just come in a costume and guarantee that they were going to get on TV, not anymore,” Ken Warwick, an executive producer, said last month. Of course, that doesn't mean there's no reason to watch early on. “There are places that we went to—you know, to Puerto Rico—and the majority of them weren’t very good at all,” making some footage of uncomfortable auditions unavoidable, Warwick said.

To the 2.6 million Americans who lost their jobs in 2008, a bit of good news: Australia has an opening for “the best job in the world.” The lucky hire will find themselves with six months of employment at a $105,000 salary. The responsibilities? Hop around the country’s tropical locations kicking up sand, snorkeling, and taking care of a “few minor tasks.” Applicants should know how to use computers (blogging is required), be a good swimmer, an excellent communicator, and be able to write and speak English. "The fact that they will be paid to explore the islands of the Great Barrier Reef, swim, snorkel, and generally live the Queensland lifestyle makes this undoubtedly the best job in the world," said Queenzland’s acting state Premier Paul Lucas. The position is the creation of the state’s tourism board, which admitted that traditional tourism advertising “just doesn’t cut it sometimes.” Applications are due on February 22.

Here's an antidote to the gloom from the Detroit Auto Show: Subaru is doing brisk business. The quirky Japanese auto company increased sales in 2008 by 491 cars, or 0.3 percent. It might not sound like a lot but in the current climate it amounts to a boost in Subaru's market share from 1.2 percent to 1.92 percent—more than Cadillac, for instance. The company managed to succeed by rolling back list prices, backing off rebates, and relying on its loyal customers. The company also expanded beyond its safety-first image to one playing up the fun of vehicles like the Outback and Forester.

This month, Blake Lively—she of the golden tresses and constant adulation—waxes rhapsodic in Vogue about fashion and…the recession? Because Gossip Girl dallies in a “heightened reality,” Lively feels it’s unlikely the writers will incorporate the economic downturn into upcoming plots. (Although to keep up appearances, the show avoids filming “going out of business” signs on Manhattan streets). Lively also talks of being groomed for the part of Serena van der Woodsen—as a child, she frequented boutiques with her former model mother, and went from California style (“sweatpants and Uggs”) to New York chic. “You put on skinny jeans and riding boots and a leather coat and handbag, and you take on that posture and character…It becomes very natural.”

Can’t tell the accused New York Knicks without a program! This morning, Isiah Thomas—subject of a humiliating 2006 lawsuit—gives way to 6-foot, 11-inch center Eddy Curry. Curry’s chauffeur, David Kuchinsky, has filed suit against Curry for sexual harassment. Among the charges gleefully reported by the New York Post: Curry tried to solicit sex from Kuchinsky; confronted him in the nude; pointed a loaded gun at him; and called him a “white devil” and “grandmaster of the KKK.” "It's false, and everyone who knows me knows I'm not a racist," Curry said when informed of the suit. Kuchinsky served a prison term for burglary in the 1990s.

Barack Obama might be planning to send up to 30,000 more troops into Afghanistan but he doesn't anticipate that changing the direction of the deteriorating conflict, The Washington Post reports. Rather, the administration expects the doubling of forces in Afghanistan to help it buy time to reevaluate the entire war and develop a new comprehensive strategy. "We have no strategic plan. We never had one," says one senior military commander. The military is also looking to Obama to answer long standing questions about war: Should it conduct conventional combat or targeted guerilla war? Don't look for many answers before a NATO summit in France this April. The administration's got a few other things on its agenda to address first.

In a time of recession and war, it’s a bit jarring to return to the issue of steroids in sports, but here goes: The fate of Roger Clemens, the pitcher under investigation for lying to a House committee about his use of performance-enhancing drugs, is in the hands of a federal grand jury in Washington, D.C. The witnesses expected to testify will be familiar to anyone following the Clemens Sturm und Drang: Clemens’ trainer Brian McNamee; Kirk Radomski, who alleged supplied drugs to Clemens through McNamee; perhaps even Clemens’ former Yankee teammate Andy Pettitte. Clemens told a House committee last year: “I have never taken steroids or HGH.”

Not every Somali pirate is celebrating the weekend’s successful ransoming of the Sirius Star. A pirate named Libaan Jaama tells CNN that five of his comrades drowned in an accident just after completing the operation. Apparently, the pirates were in a small boat near the Sirius when they became confused by some gunfire by fellow pirates on the shore; they tried to turn their boat around and it capsized. Pirates collected a $3.5 million ransom for the ship, a Saudi oil tanker, which they had held since November 15. "We have the best way of life," Jaama says. "We drive in white SUVs, we enjoy driving them, and there is absolutely no difficulty in our life."

In a recession, luxuries are the first thing to go, and that's not good for electronics companies like Sony, which is expected to report a $1.1 billion operating loss in the fiscal year ending this March. It will mark the first time the electronics giant has reported a loss since 1995. The bleak forecast comes on the heels of job cuts, lowered spending and the shuttering of several plants last month. Historically, losses on Sony’s electronics side have been offset by gains in other divisions, like financial and video games. All sectors are now beset by problems. The strong yen hasn't helped. As the dollar has weakened from 108 yen a year ago to 90 yen today, overseas sales have become less valuable. "We need to rely more on other regions, and not depend so much on the U.S.," Sony President Ryoji Chubachi said recently.