Opponents of Arizona’s controversial immigration law launched a new offensive Tuesday in order to stop the “show me your papers” portion of the legislation, the only element left standing after the U.S. Supreme Court threw out the three other parts of the hardline enforcement law last month. Civil-rights groups, religious leaders, and business organizations teamed up to lobby U.S. District Judge Susan Bolton to block the rule that requires police to check the immigration status of individuals that are stopped for other reasons, arguing that Latinos in Arizona would face systematic racial profiling under the law. Passed in 2010, the Arizona legislation was meant to combat the state’s status as the busiest illegal entry point into the country.

Federal Reserve Chairman Ben S. Bernanke spoke dire words during a hearing before the Senate Banking Committee on Tuesday. Bernanke told senators that “economic activity appears to have decelerated somewhat” and that “the reduction in the unemployment rate seems likely to be frustratingly slow.” He did not say whether the Federal Reserve plans to do more to boost growth. He also warned lawmakers that federal spending cuts and tax hikes that automatically take effect in 2013 if Congress does not act to extend the Bush-era tax cuts, is the biggest threat to the nation’s economy. He urged lawmakers to “Do no harm.”

Jerry Sandusky may not be the only one found guilty. Penn State University says it will provide the information the NCAA is demanding within days—which could lead to a shutdown of the school’s beloved football program if the university is found at fault. The Department of Education is also investigating Penn State with a probe into whether the university violated federal campus-safety law. Officials are looking into whether the university’s response to Sandusky ignored the Clery Act, which requires schools to provide public-safety alerts and annual disclosure of crime stats. Federal officials are declining to comment on the scope of the investigation, which spans 13 years.

It’s not a murder charge, but it sure isn’t pretty. Hans Kristian Rausing, the billionaire to the Tetra Pak fortune, was charged Tuesday with preventing the lawful and decent burial of his wife’s body. Eva Rausing's remains were discovered in the couple’s home after her husband was stopped under suspicion of driving under the influence last week. The heiress’s father, former Pepsi executive Tom Kemeny, defended Hans Kristian Rausing in a statement Tuesday saying “Eva and Hans Kristian were a devoted and loving couple for the 21 years they spent together.” A postmortem by investigators failed to issue a formal cause of the heiress’s death.

We generally like being part of the conversation, but this is one we’d rather not participate in. A new type of phishing malware infecting at least 800 computers in the Middle East and parts of Central Asia mysteriously linked to a November 2011 Daily Beast article, “Israel’s Secret Iran Attack Plan: Electronic Warfare.” Russian and Israeli cybersecurity firms identified the malware, named “Mahdi” or “Madi” in reference to an Islamic messiah figure, which contains a religious-themed PowerPoint attachment and an attached text file of Eli Lake’s report on Israel’s response to Iran’s nuclear program. The cybersecurity firms have found no connection linking this new malware to the “Flame” or “Stuxnet” viruses that were detected earlier this year on computers in Iran and the Middle East.

A bizarre string of crimes came to a tragic end Tuesday when an airline pilot on the run after allegedly killing his ex-girlfriend attempted to steal a plane, but killed himself before it took flight. Brian Hedglin, a pilot for SkyWest Airlines, was fleeing police after allegedly stabbing his former girlfriend, Christina Cornejo, last Friday in Colorado Springs. Hedglin reportedly broke into the St. George Municipal Airport in Utah, attempted to steal a jetliner, but shot himself before the plane was airborne. The aircraft, however, struck the airport terminal and several parked vehicles. Police aren’t sure why the pilot fled to the Utah airport: “The person who has those answers, unfortunately, is dead.”

Planned Parenthood filed suit against Arizona on Monday over a new state law that blocks funding for its abortion-providing clinics. Part of a larger, nationwide campaign against abortion that has been championed by social conservatives, the new law was signed by Arizona Gov. Jan Brewer in May and goes into effect on Aug. 2. Planned Parenthood contends the law violates Medicaid patients’ rights and will prevent low-income women from receiving care at their preferred provider. “The men and women of this state have the right to see the health-care provider they deem is best for them,” said Bryan Howard, president and CEO of Planned Parenthood Arizona. The state already blocks use of taxpayer money for abortion funding.

Kerry Kennedy, the ex-wife of New York Gov. Andrew Cuomo and the daughter of the late Sen. Robert Kennedy, said Tuesday that she was not under the influence of drugs of alcohol at the time of her car accident Friday—and she said she has a hospital report to prove it. Kennedy was arrested Friday after police said she hit a tractor-trailer with her car, and then she allegedly drove the damaged car off the highway. A witness said Kennedy “appeared slumped at the wheel,” and a police officer said in a deposition that Kennedy failed the standing-on-one-leg test and the walk-and-turn test. She was able to recite the alphabet. Kennedy told police she may have accidentally taken a sleeping pill before driving. Kennedy plead not guilty at the arraignment.

It's official: Jeremy Lin is leaving New York. The Knicks decided to decline matching the Houston Rockets' offer to keep the surprise sensation around for another year.  Lin will spend next season with the Houston Rockets, who signed him to a three-year $25.1 million offer sheet. The Knicks had first-refusal rights on Lin and haduntil 11:59 p.m. to match the deal, but sources say that the decision had been made as of 4 p.m. and was considered final. Houston’s offer included a third-year balloon payment of $14.9 million, which would have cost the Knicks at least $35 million in luxury-tax penalties had they attempted to match it.

Holy lovefest, Batman. The first round of reviews for The Dark Knight Rises, Christopher Nolan’s breathlessly anticipated conclusion to his Batman trilogy, is in, and the notices—with few exceptions—are unqualified raves. The Hollywood Reporter calls the film, officially in theaters on July 20, “big-time Hollywood filmmaking at its most accomplished,” while The Playlist hails it as a “cinematic, cultural and personal triumph.” The brave few dissenters may need to seek out the help of the Caped Crusader himself: critics who panned the film, including the website Hollywood and Fine’s Marshall Fine, received death threats from diehard Batman fans.

Timing is everything, which is why Louis C.K. got a bad rap when he voiced his support of Daniel Tosh on Twitter when Tosh was under fire for making rape jokes. Appearing on The Daily Show Monday night, C.K. told Jon Stewart he wasn’t aware of the rape-joke controversy when he tweeted, “@danieltosh your show makes me laugh every time I watch it. And you have pretty eyes.” C.K. has been known to defend other comedians’ off-color jokes in the past, but he’s also famously averse to social media, so we’re inclined to believe him this time. “I’ve been called a rape apologist because I said hi to a guy,” C.K. joked to Stewart before noting that he’d learned from the experience. “I’ve read some blogs during this whole thing that have enlightened me to things I didn’t know.”

From the podium to disgrace. Cyclist Frank Schleck, who finished third at last year’s Tour de France, tested positive for a banned substance and will not continue in this year’s race. The 32-year-old RadioShack Nissan team cyclist failed a drug test conducted on July 14 when the diuretic Xipamide, which can be a masking agent for performance-enhancing drugs, was discovered in his system. Schleck, whose older brother Andy won the 2010 tour, was 12th in the overall standings, nine minutes and 45 seconds behind leader Bradley Wiggings.

So much for the gold medal for security performance. Nick Buckles, the head of private security contractor G4S, told a parliamentary inquiry that he was “deeply sorry” for the failure to meet security obligations at the London Olympics. The company was granted a $450 million contract, but has since failed to provide enough guards. Now that 3,500 more British soldiers have been added, the total has hit 17,000—some of whom just returned from Afghanistan. Buckles agreed with the panel that the company’s performance was a “humiliating shambles.” Some police forces are now controlling security for areas of London, though the overall security plan has not changed.

With the controversial made-in-China outfits Ralph Lauren designed for Team USA to wear at the Olympics Opening Ceremony drawing the ire of not only fashionistas, but Washington as well, hipster outfitter American Apparel is offering to design its own versions of the patriotic outfits. The clothing company is vocal about its commitment to manufacturing its garments only in the United States, and is extending an impressive offer: “American Apparel could start working on uniforms today and have them in London within seven days.” Ralph Lauren’s current contract with the U.S. Olympics extends until 2020.

Suri Cruise will start at New York’s prestigious Convent of the Sacred Heart School on Sept. 6. The Catholic all-girls school costs $39,265 per year to attend. The school is said to be extremely strict and requires students to attend mass every Thursday. Only 690 students attend the pre-kindergarten through 12th-grade school, and all kids in grades 8-12 have the use of their own iPad. Founded in 1881, the school originally specialized in teaching the “social graces” and it shows; past alums include Paris Hilton and Lady Gaga. Meanwhile, Suri reunited with her father in New York City on Tuesday.

The secret to successful unity governments? Unity. The national body formed in Israel months ago has collapsed, after Shaul Mofaz, head of the Kadima Party, pulled out of talks with Prime Minister Benjamin Netanyahu. Mofaz cited differences over the universal draft law. Netanyahu had a majority of 94 of 120 members in Parliament, but the unity government hit a wall when trying to decide on regulations for drafting ultra-Orthodox Jews and Arabs. It’s unclear whether there will be early elections now.

The Romney campaign is using clips of Hillary Clinton attacking then-opponent Barack Obama during the 2008 Democratic primary for its own negative TV ads. Clinton insists that the ads are "waste of money" since voters already know what happened in 2008. "I am out of politics, and I haven't seen any of the ads that you're talking about," she told CNN while in Jerusalem. "But I have to say that it's a waste of money. Everybody knows I ran against President Obama in 2008. That's hardly news. Everybody knows we ran a hard-fought campaign and he won. And I have been honored to serve as his secretary of state." 

There is “the potential of jihadists and terrorists taking up an operational base in Sinai,” said Hillary Clinton, on Monday, of the desert between Israel and Egypt. There have been growing concerns from the Israeli side about the region’s safety since the Arab Spring. On Monday, two American tourists and their guide were released after being held hostage in Sinai for three days—their tour bus had been reportedly ambushed as it headed for Israel. “We think it’s a dangerous situation for both Egypt and Israel,” the U.S. secretary of state told CNN. “It is also dangerous for Americans. We have Americans who are part of the multinational force that observes the continuation of the monitoring [of the] Camp David Accord. We have Americans in the Sinai. We’ve had a few concerns about their safety.” Israeli officials have also said recently that Egypt needs to tackle terror cells in the region.

Google’s Marissa Mayer has been tapped to be the new CEO of Yahoo, The New York Times reported Monday. Mayer, 37, was one of the rising stars at Google and is one of the most prominent faces in Silicon Valley. It's a big week for Mayer: she announed Monday night that she is pregnant with her first child, a boy, due in October. At Google, she had been responsible for the company's famous white homepage and the design of Gmail, Google News, and Google Images. Yahoo, on the other hand, has had a troubled history with its CEOs, with Scott Thompson resigning in May after just four months on the job and after allegations that he lied about his academic qualifications. Yahoo’s board has also undergone significant restructuring in the past year.

HSBC, the largest bank in Europe, did not do nearly enough to prevent Iran, Mexican drug cartels, and firms with terrorist ties from laundering money through it, members of the U.S. Senate alleged on Monday. The Senate Permanent Subcommittee on Investigations released a 335-page report pointing to a decade of lax security within the bank that granted criminals—and millions of their dollars—access to the U.S. financial system. In addition, Iran, North Korea, Cuba, Sudan, and Burma—all states that are restricted from trading in the U.S.—used HSBC to execute transactions in the states. In the case of Iran, records show that U.S. bankers were aware of the deals, which violated U.S. sanctions. “The failure of accountability here is dramatic,” said Sen. Carl Levin, head of the subcommittee.

Katie Holmes and daughter Suri were leaving Chelsea Piers after Suri’s gymnastics class Monday night when a garbage truck sideswiped their car. Their black Mercedes was dented, but, other than that, no harm was done. Holmes recently acquired a new security team in an effort to completely disassociate from Tom Cruise after she filed for divorce—her driver was the only other person in the car with them at the time of the accident. “It was nothing major other than the fact that it was Katie Holmes,” a police source said.

Kobe Bryant suggested earlier this week that the 2012 U.S. basketball team could be more talented than the 1992 team—President Obama disagrees. During a courtside interview with ESPN at a pre-Olympic scrimmage between the U.S. and Brazil in D.C., the president explained, “This is a generational thing. I was around in ’92. I was a Bulls fan. I’ve gotta go with the original Dream Team.” Still, he insisted, he’s confident that this year’s players will take home the gold.

Guess Michelle’s not a fan of on-cue PDA. The First Lady rejected a kiss from President Obama at the Olympic basketball team tune-up game against Brazil Monday night. The couple was shown getting cozy on the Jumbotron during the first half of the game, but when the “kiss cam” video display prompted some smooching, Michelle failed to comply. The audience booed as the president appeared to lean in for a kiss, only to get Michelle shaking her head with a smile. Obama broke her down in the 4th quarter though, when the couple leaned in for a crowd-pleasing kiss. Maybe the campaign ran some numbers? Or maybe Michelle just likes to keep the romance alive by making the Commander-in-Chief work for his sugar. Either way, it was a confidence-boosting night for the U.S. men’s team, with a 80-69 win against Brazil.

It was only a few months ago that Linsanity was sweeping the nation. Now New York is buzzing about whether Jeremy Lin, unexpected star of the past season, is worth keeping around. The Houston Rockets have offered $25.1 million for the 23-year-old point guard, and the Knicks have until Tuesday night to match that offer or lose him to Texas. The tough decision has sparked a debate across the city over whether New York should hold onto its one-time boy wonder or let him go. While the undrafted, Asian-American Harvard grad’s overnight success made for great entertainment, some wary Knicks fans are unsure whether it’s worth spending $25 million on a rookie with a winning streak.

Facebook led to the arrest of three teenagers in the murder of a 62-year-old Chicago man Saturday. The group unwisely decided to film their game of “pick ’em out and knock ’em out,” in which 16-year-old Malik Jones “picked” a 62-year-old man who had been collecting cans and scrap metal to sell, and knocked him out. The video, which they then posted on Facebook, picks up the sound of Jones saying “I think I’m going to knock this guy out,” and then the “loud crack of his head hitting the cement.” The man, a father of 12, died, and all three of the boys—though only one was 18—are being charged as adults with first-degree murder.

A shooting at an outdoor party in Toronto killed two and injured at least 19 people Monday. Toronto was recently described by its mayor as “the safest city in the world,” but this week’s shooting compounded concerns over growing gun violence there. Six weeks ago, one person was killed and six were wounded in a shopping-mall shooting. “This is the most serious crime of its kind to ever take place in the city of Toronto,” the city’s police chief said of Monday night’s shooting.

Bob Dylan fans, rejoice: You have a new album to look forward to, and it will be released in a little less than two months. The album will be called Tempest and was produced by Dylan, working under the pseudonym Jack Frost. Very few details are available, other than that it will consist of ten tracks and be released Sept. 11. Dylan will be touring in Europe starting in late July, and then in North America for the rest of the summer, with the last date scheduled to occur just two days before the album is released.

Most Americans might scoff at the idea of almost a billion in profit constituting a “poor” quarter, but for Goldman Sachs it marks a serious downturn. The bank’s profits dropped from $2.1 billion in the first quarter of 2012 to $962 million in the second. The $962 million is an 11 percent dip from Goldman’s 2011 second-quarter profits. The bank’s head, Lloyd Blankfein, blamed global financial tumult. “During the second quarter, market conditions deteriorated and activity levels for both corporate and investing clients were lower given continued instability in Europe and concerns about global growth," he said.

Well, give the group points for consistency, at least. After a two-year internal review and relentless pressure to reform its stance on excluding gays, the Boy Scouts of America has decided instead to reaffirm it. An 11-member confidential committee convened in 2010 recently reached the decision unanimously, coming to the conclusion that “this policy is absolutely the best policy for the Boy Scouts,” as the Scouts’ national spokesman, Deron Smith, put it. The ban will continue to apply to both scout leaders and scouts, and will put pressure on national executive board member and AT&T CEO Randall Stephenson, who has indicated he hopes to reform the organization’s stance and who is scheduled to become president of its national board in 2014.

Nawaf Fares, the senior Syrian politician who recently defected from Bashar al-Assad’s government, told the BBC that the regime would not hesitate to use chemical weapons. He also said that Assad and al Qaeda are responsible for recent major bombings across the country.  Syria is in possession of many chemical weapons and Assad is a “wounded wolf and cornered,” Fares explained. “There is information, unconfirmed information of course, that chemical weapons have been used partially in the city of Homs,” he said. Meanwhile, clashes have reportedly intensified in the capital city of Damascus.