Looks like Goldman Sachs will be the first of Wall Street’s battered banks to pay back its debts to the federal government: The bank has announced stronger than expected first-quarter earnings of $1.81 billion and a plan to raise $5 billion by selling shares to investors. Last fall, Goldman took $10 billion in taxpayer money, and with it came tough federal restrictions on executive compensation. The pay caps, Goldman CEO Lloyd Blankfein said, are “going to limit our ability to compete, both here and abroad.” Possible hurdle: The government says it won’t allow any major bank to pay the money back until it has passed a “stress test” to ensure the bank can continue lending.

Music titan Phil Spector has been found guilty of second-degree murder in the 2003 slaying of actress Lana Clarkson. The 69-year-old producer, whose 2007 trial for the murder ended in mistrial, faces up to 18 years in prison. Spector’s legal team had sought to portray Clarkson’s grisly murder—she was shot in the mouth at his Alhambra mansion—as a suicide. The prosecution, meanwhile portrayed the “Wall of Sound” creator as “a sadistic misogynist who had a three-decade “history of playing Russian roulette with the lives of women” when he was drunk,” the Los Angeles Times reports.

Pack your bags for Havana: ABC News is reporting that President Obama “will lift travel, remittance, mail and business restrictions relating to the Communist nation of Cuba.” Obama will allow both unlimited visits to family members in Cuba and unlimited remittances (cash immigrants send back home) after President Bush put stronger restrictions on both in 2004. He will also allow U.S. telecommunications networks to link the U.S. and Cuba, and allow for more humanitarian items to be sent to the island.

Great news for Democrat Al Franken out of Minnesota: A three-judge panel has ruled the Senate challenger has defeated Republican incumbent Norm Coleman for the state’s remaining seat. Franken should be given the election certificate that permits him to take his seat in the U.S. Senate, the panel ruled. The Coleman camp responded immediately, saying it would appeal. “More than 4,400 Minnesotans remain wrongly disenfranchised by this court’s order,” Coleman attorney Ben Ginsberg said. “By its own terms, the court has included votes it has found to be ‘illegal’ in the contest to remain included in the final counts from Election Day.” Next the case will head to the Minnesota Supreme Court, where a decision is not expected until the end of May. At that point, Politico reports, “the loser has a choice—seek review from the U.S. Supreme Court or wage a new battle in federal district court.”

More than a week after North Korea launched a long-range rocket, the U.N. Security Council has finally gotten around to condemning it. Although Pyongyang claimed the rocket carried only a satellite, several nations called it a cover for a long-range missile test. The Security Council unanimously called on North Korea to obey a 2006 resolution that banned missile tests, and Japan’s UN ambassador called the April 5 launch a “provocative act.” The 15-member Security Council also said it would tighten sanctions against North Korea.

It’s almost April 15. Have you filed your taxes yet? The deadline this year is scariest of all for Americans struggling to make ends meet amid the economic downturn. Experts are predicting a surge in taxpayer delinquency, as people close their eyes and hope the IRS—and their bills—disappear. “We’ve seen a huge rise in what we call the rookie delinquent taxpayer,” Richard Boggs, founder of Nationwide Tax Relief, said. “They are incredibly scared, and they have no idea what’s going to happen to them because, God bless them, they’ve never owed before.” The IRS, not known for its compassion in tax matters, says it is keeping the financial crisis in mind. “We recognize the economic realities that are out there,” IRS Commissioner Doug Shulman said. “We’re available to work with people.”

Under a barrage of tear gas and warning shots from the Thai army, it appeared protesters in Bangkok were being corralled into a small, controlled area. However, Thai citizens--apparently sick of the chaos--began taking matters into their own hands, and several skirmishes erupted between protesters and locals. The first two fatalities of the turmoil occurred during a gun battle between the red-shirted activists and residents "enraged at their violent disruption," the Associated Press reports. The unrest threatens to unravel Thailand's economy, which relies heavily on tourism. Celebrations for the Thai new year have also been canceled.

A shocker out of Wasilla today: Diana Palin, half-sister of Alaska First Dude Todd Palin, has been indicted for burglary, theft, and trespassing related to three break-ins, the Anchorage Daily News reports. The 35-year-old Diana, who pleaded not guilty to the charges, allegedly broke into a Wasilla home owned by Theodore Turcott on three occasions and stole cash. Turcott, who was armed, was home during the most recent alleged incident, and as he detained Palin, her 4-year-old daughter came into the house. Turcott lost $2,600 in cash from his cabinet during the first two incidents. Police offered no theories on why Palin picked Turcott’s house.

L’affaire d’email deepens in Britain: Prime Minister Gordon Brown, who has expressed regret for scandalous anti-Tory emails sent by one of his senior advisers, met with Derek Draper—a left-wing blogger also implicated in the smear campaign—further infuriating the opposition party. Damian McBride, Brown’s close adviser, resigned Saturday after the leak of an email exchange in which he and Draper plotted to publish “scurrilous” stories about prominent Tories. The Daily Telegraph reports Brown and his wife had lunch with Draper two weeks after the creation of a Web site that was to publish the stories, and because of the close relationship between Brown and his adviser, some opposition politicians say the prime minister must have known about McBride’s extracurricular activities. “The emails raise serious concerns about the operation of No10,” Francis Maude, the shadow Cabinet Office minister said.

Is this pirate retaliation? Gunman today fired mortars at a plane carrying Rep. Donald Payne and his entourage as they departed the Somali capital. Although neither the New Jersey Democrat nor his fellow passengers were injured, the attack and last week’s hijacking of the Maersk Alabama by Somali pirates illustrate the “continuing lawlessness” in the country, The Washington Post reports. Somalia’s transitional government has a fragile hold on the region, which boasts a growing Islamist insurgency tied to Al Qaeda. Obama said after the attack on Payne and the rescue yesterday of Captain Richard Phillips that the U.S. would work with allies to stop piracy off the Horn of Africa.

In an incisive piece in The Huffington Post, Scarlett Johansson hits back against rumors about her shrinking bod. Tabloid reports to the contrary, she says she’s been getting in “superhero shape” for her Iron Man 2 role by using proper diet and lots of exercise—the kind that makes her hurt and anticipate the day she no longer has to wear a latex cat suit. Johansson calls the idea that she’d lost 14 pounds “utter lunacy,” noting that if she did lose that much weight, “I’d have to part with both arms. And a foot.” The starlet also says the media is creating unhealthy ideals and that she’d be mortified if a 15-year-old girl took the tabloid “crash diet” story staple at face value and starved herself for a couple weeks so that “she too could crash diet and look like Scarlett Johansson.”

Being a Supreme Court justice was fun, before all these “rights” came and spoiled the fun. In a meeting with high school students, Justice Clarence Thomas—who usually plays his cards close to his vest—opened up a little about his worldview. The most intriguing moment? When Justice Thomas explained his distaste of "a proliferation of rights.” Thomas, who often portrays himself as a Horatio Alger-type figure who rose to the top of the judicial world through his own dedication, explained that he is repulsed by the notion "that each of us is owed prosperity and a certain standard of living." Reflecting on the challenges of his job, Thomas said that he can become pretty "morose," and at times seeks solace in classic speeches and the film Saving Private Ryan.

Opening the White House Egg Roll, President Obama described the festivities as "one of the greatest White House traditions." Though Obama might be guilty of a little hyperbole, thousands of kids--including Sasha and Malia--certainly had a good time romping around on the White House lawn. Michelle Obama reminded the visitors that the theme of the day was "let's go play" and encouraged kids to eat well and stay active. The president also sat down and read Where the Wild Things Are to a group of enraptured children. Fergie sang the National Anthem at the opening of the party, which included gay and lesbian parents in attendance.

Bernard Madoff’s niece, Shana, may not be on trial, but she’s making preparations just in case: The New York Post is reporting that, worried they too may join Uncle Bernie in the clinker, Shana and another relative “have contacted a consultant who teaches white-collar criminals how to survive in federal prison and secure early release.” Madoff was the compliance officer at Madoff’s investment firm, and has contacted Larry Levine, a former federal prisoner and founder of Wall Street Prison Consultants. Levine confirmed that “a female relative of Bernie Madoff contacted me” about taking his Fedtime 101 course. Another source said Shana “has been asking around what it's like to do time.”

Mel Gibson, who has become more and more off the wall in the last few years, is facing another shot at bachelorhood. His wife of 28 year, Robyn, has filed for divorce in California, citing "irreconcilable differences." The two married in 1980 and have seven children; only one is still a minor. TMZ.com reports that a showdown over Gibson's wealth—estimated at $900 million—looms on the horizon, as Robyn is entitled to 50 percent of the couple's earnings under state law. Rumors has it tensions escalated between the two after Gibson's embarrassing drunk driving arrest, when the star went on an anti-Semitic tirade.

The chief White House correspondent for NBC, Chuck Todd, will soon be joining the crowded weekend political talk show scene: According to The New York Observer, MSNBC will be giving him his own show. The show, whose specifics are not yet worked out, will further establish Todd's presence in the competitive world of inside-the-beltway news. Todd rose to prominence during the closely contested Democratic primary, where his "encyclopedic knowledge of electoral mechanics" proved invaluable to MSNBC and NBC. The new show will also give a boost to MSNBC's weak weekend schedule.

It’s Boy vs. Mountain: Johnny Strange, a 17-year-old from Malibu, is preparing to take on Mount Everest. Success would mean he’d be the youngest Westerner to reach the summit; the current record-holder is a 15-year-old Nepalese Sherpa. Strange is hoping to become the youngest person to climb the highest peaks on each continent, dubbed the Seven Summits. After the 29,035-foot Everest, he’ll have only Australia’s 7,310-foot Mount Kosciuskzo to go. Everest has killed about 200 climbers, but as Strange said, “If there wasn’t risk, it wouldn’t be fun.” He’s preparing for the trip with his 53-year-old father, Brian, a prominent consumer affairs attorney.

Was the Navy SEALs' successful rescue of American captain Richard Phillips from Somali pirates just the first strike in their mission? Bloomberg reports that the Pentagon is now considering the viability of attacking pirate bases in Somalia. "The military also is drawing up proposals to aid the fledgling Somalia government to train security forces and develop its own coast guard," according to Bloomberg. The Obama administration now faces the challenge of combating piracy and securing Africa's east coast, an important strategic gateway for international shipping and commerce. U.S. forces haven't been in the country since the early '90s, when 42 Americans died because President Clinton withdrew. But the Pentagon isn't looking to repeat history: "No such broad military effort is being seriously considered now."

“Rahmbo” is getting a makeover. Rahm Emanuel, the president’s tough chief of staff, is becoming “more valet than hit man.” In anticipation of the budget vote earlier this month, Emanuel’s West Wing office came to resemble a “legislative bazaar,” as lawmakers peddled their concerns about the bill. And, as he is doing with the entire Obama agenda, Emanuel listened carefully to each person in order to expertly shepherd the president’s budget through Congress. He’s learned to see the best in lawmakers, and, in an effort to garner support for the Obama agenda, makes each person feel as if their voice needs to be heard. He’s become so sweet that one night when the House Budget Committee was working late, Emanuel sent over eight chocolate cakes and a batch of cookies.

Let’s hope he’s better at writing books than he is at giving speeches: Right-wing publishing house Regnery Publishing (home to the Newt Gingrich, Chuck Norris and Ann Coulter books) has signed Louisana Governor Bobby Jindal to pen a book due out in 2010. The book will be about his life and policy ideas, but it won’t take up very much of his time—he’ll be co-authoring it with Peter Schweizer, who has written books about Bush family and President Reagan. "One of the reasons I'm doing this with a co-author is to make sure there's somebody else doing a lot of the heavy lifting," Jindal said. There’s speculation that the book deal reveals Jindal’s interest in a 2012 Presidential run.

Score one for the great apes. During a survey of a remote forest in Indonesia, ecologists from the Nature Conservancy discovered a pocket of orangutans that numbers as many 2,000, the Associated Press reports. The discovery is heartening—there are only 50,000 to 60,000 orangutans left in the wild, and they are among the world's most endangered species. (Though the orangutans were not so keen to be found—one male “angrily threw branches as [journalists] tried to take photos.”) Ninety percent of them live in Indonesia, with the remainder dwelling in nearby Malaysia. In recent years, the great apes' habitat has been shrinking as rain forests are burnt and clear cut to make way for palm oil plantations. As a bonus, the cache of apes is a rare subspecies—the black Borneon orangutan.

After her attempt to adopt a Malawian child was rejected, Madonna is taking her case to the people: “I want to provide Mercy with a home, a loving family environment and the best education and healthcare possible,” Madonna told a Malawi paper. “And it's my hope that she, like David, will one day return to Malawi and help the people of their country.” She has also appealed the court decision that rejected her adoption of Mercy.

Chinese researchers have made a startling discovery: The ovaries of adult and newborn mice contain stem cells that can be cultured into viable eggs. Not only may it one day be possible to do the same for women, but the discovery could help to reverse menopause, make women born with few eggs fertile, and restore fertility to women who have undergone cancer treatments. The controversial research must be independently verified before the skeptical international scientific community accepts it. As a British expert put it, "extraordinary claims require extraordinary evidence, whereas to me this is a very incomplete piece of work."

Populist outrage has been on low boil in recent weeks. Will this turn up the heat? The Wall Street Journal reports that the Congressional Oversight Panel will investigate bailed-out banks, which have “boosted charges on a wide range of routine transactions, hiked rates on credit cards and continued making loans criticized as predatory by consumer advocates.” Last week, for example, Bank of America doubled interest rates on credit cards to 14 percent and imposed fees of at least $10 on many transactions. "The people who are subsidizing the activities of the banks through their tax dollars are the same people who are furnishing the high profits through consumer lending," said Elizabeth Warren, the COP’s chairwoman. "In a sense, we're asking taxpayers to pay twice."

There are a few unanswered questions in this story. For starters, why did a woman scale a fence surrounding Berlin Zoo and jump into the polar bear habitat? Naturally, the bears were angry at the intrusion—one bear bit the woman while she was in the moat and a shocking photo exists as proof. Zoo workers tossed rescue rings into the water and she was carried to safety, but not before being severely injured. 

Move over, Jonas Brothers: Hannah Montana: The Movie is roaring to the second-best Easter weekend opening ever, grossing an estimated $34 million. The haul bolsters Miley Cyrus’ star status and far exceeds expectations, Variety reports. Fast & Furious had been expected to rule the box office this week; instead, it declined 59 percent from last week and took second place at $28.2 million, for a $118 million total. And sad news for Seth Rogen: his new comedy, Observe and Report, earned $11.1 million in its first weekend, much weaker than projected.

American ship captain Richard Phillips may be safe and sound, but trouble with the Somali pirates is just beginning: “In the future, America will be the one mourning and crying,” a Somali pirate told the Associated Press after the rescue operation that killed three of his comrades. Vice Admiral Bill Gortney said “There's second and third order effects to every action. And this could escalate violence in this part of the world. No question about it." Gortney added that the rescue mission was ordered because Phillips’ life was in “imminent danger.” President Obama authorized the attack himself: While one pirate was on board the main ship to negotiate, Phillips moved to the side of the lifeboat on which he was being held to relieve himself, and US forces shot the three pirates on the lifeboat with him.

Driven by fears that President Obama will restrict gun ownership, gun sales have surged in the six months since his election, the Guardian reports. The FBI says that, since November, more than seven million people have applied for criminal background checks in order to buy weapons, and that doesn't include many more who buy at thousands of gun shows without facing checks. Reportedly, assault rifles have been particularly popular. Gun control advocates have accused the NRA of whipping up a frenzy by portraying Obama as a gun owner's worst nightmare. In the last month, 50 people have been killed in a string of shootings.

Perhaps solitude actually does stimulate the creative mind. Lauded a “consummate craftsman” for his work, relative unknown 65-year-old Peter Zumthor will receive the architect’s equivalent of the Nobel Prize on Monday. For the past 30 years, Zumthor’s been living in a remote Swiss village carefully choosing his projects. Writes the Pritzker jury: “He develops buildings of great integrity—untouched by fad or fashion. Declining a majority of the commissions that come his way, he only accepts a project if he feels a deep affinity for its program, and from the moment of commitment, his devotion is complete, overseeing the project’s realization to the very last detail.” Zumthor’s most famous project, a thermal spa of quartzite slabs nestled in an Alpine commune in Switzerland, was a “contemporary take on the baths of antiquity,” writes The New York Times. The Pritzker, which consists of a $100,000 grant and bronze medallion, will be awarded on May 29 in Buenos Aires.

According to a government spokesperson, the situation in Thailand is “being brought back under control.” But that’s not what it looks like. The Thai Army has opened fire on demonstrators in the streets of Bangkok, and over 70 have now been injured from teargas. The number of red-shirts camped out in the Prime Minister’s office, Government House, has begun to dwindle, but a message from former PM Thaksin Shinawatra, who was ousted in 2006, read loud and clear: “Now that they have tanks on the streets, it is time for the people to come out in revolution. And when it is necessary, I will come back to the country,” he said in a statement that was projected to demonstrators over large video monitors.

Keep your eye out for a fire sale at the local Hummer dealership: The New York Times reports “The Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by a June 1 deadline, despite G.M.’s public contention that it could still reorganize outside court.” The hope is for a fast “surgical” bankruptcy. Under one plan, a new company would buy GM’s good brands, while its bad ones would remain with the old company, which would be liquidated over several years. Treasury officials hope the “good” GM could make its way through bankruptcy hearings in as little as two weeks, with $5 to 7 billion in federal aid.