Texas, Mexico brace for Hurricane Dolly DAVID J. PHILLIP / Associated Press Drivers leaving Texas' South Padre Island jammed a bridge yesterday as Hurricane Dolly headed toward the U.S.-Mexico border. With the storm expected to make landfall today, a hurricane warning was in effect for the coast of Texas from Brownsville to Corpus Christi and in Mexico from Rio San Fernando northward. Officials feared heavy rains could cause flooding and levee breaks in the densely populated Rio Grande Valley. Click for larger image

What's Inside At 112, his artwork is a window into another time Bale denies he assaulted his mother and sister Staying motivated Palestinian drives large vehicle into cars, is shot dead Hurricane heading toward populated U.S.-Mexico border Most e-mailed U-T stories Railroad to pay $102 million in N. Calif. wildfire Voters see problem in budget deficit, and doubt state leaders can resolve it More News

WASHINGTON – A federal rescue of Fannie Mae and Freddie Mac could cost taxpayers $25 billion, congressional budget experts said, as the House scheduled a vote today on legislation that would tap the mortgage giants' profits to cover any losses from saving 400,000 homeowners from foreclosure.

• Mortgage rates near 5-year high, hurting housing
• Foreclosures set new mark

BELGRADE, Serbia – For more than a decade, the world's most-wanted war crimes fugitive displayed a talent for eluding international justice. His secret? Hide in plain sight. In a ruse worthy of any thriller, Radovan Karadzic transformed himself from a leader instantly recognizable by his shock of salt-and-pepper hair into a man resembling a New Age mystic, with a flowing white beard and black robe.

Sidney Craig, a sailor and dance instructor who went on to create the international weight-loss company Jenny Craig with his wife, died Monday at the couple's home in Del Mar after an extended battle with cancer.

Hoping to avoid a November ballot measure, San Diego's labor unions instead gave in to many of Mayor Jerry Sanders' demands in a last-minute deal that reduces retirement benefits for future city employees. The move sidesteps a frustrated electorate, avoids a likely lawsuit from the unions over the mayor's bargaining tactics and leaves the door open for future benefits increases.