May 6, 2004

$10.5 billion acquisition of Charter One Financial, announced by Citizens Financial Group unit of Royal Bank of Scotland, could be first in string of American buyouts by cash-rich European financial institutions that are looking across Atlantic for growth after failing to do deals in Europe; many European banks have enjoyed strong, steady income from corporate and consumer loans in last year; financial industry has already consolidated within many Western European countries, with exception of Germany; photo (M)

Gov James E McGreevey bows to pressure of New Jersey's Roman Catholic bishops by saying he will no longer receive communion at Mass because his support for abortion rights and other social causes contradicts church doctrine; does not rule out receiving communion at private services or while out of state; sharply disagrees with what he calls efforts to force Catholic officials to choose between their political beliefs and their faith; many elected officials and political analysts believe that McGreevey's position may help him politically in New Jersey, where 60 percent of voters support abortion in most polls (M)

Pres Bush goes on Arab television in effort to limit diplomatic damage from abuse of Iraqi prisoners by American soldiers, saying mistreatment 'does not represent the America that I know'; offers no apology, but pledges to bring all facts into open and says guilty would be held accountable; abuse case has left Bush administration on defensive; State Dept officials acknowledge that they put off release of annual report on human rights abuses around world because they did not want to face awkward questions about how United States could point fingers at time when its own record has been sullied; in Congress, senior members of both parties express anger at failure of Pentagon to keep Congress fully informed about case; Sen John W Warner, Republican chairman of Armed Services Committee, summons Defense Sec Donald H Rumsfeld to public hearing on May 7; national security advisor Condoleezza Rice and deputy secretary of state Richard L Armitage apologize in their interviews with Arab broadcasters; new commandant of Abu Ghraib prison, Maj Gen Geoffrey Miller, also apologizes to Iraqi people; Bush's interviews are broadcast on Al Hurra, US government-sponsored network, and Al Arabiya, Dubai-based broadcaster; photo (M)

American military begins its first major assault against Shiite insurgents, striking at enclaves in Karbala and Diwaniya in effort to regain control in southern Iraq; coordinated attacks begin hours after powerful Shiite politicians and religious leaders urge rebellious cleric Moktada al-Sadr to withdraw his militia from Karbala and Najaf; soldiers kill at least 10 Iraqi fighters and capture 20 people in first attack in Karbala; American soldier is killed when two insurgents run checkpoint and ram truck into his Humvee; Sadr spokesman says nine militiamen are killed in Diwaniya; American assault on Karbala takes place southwest of two Shiite shrines, and commanders say they are trying to make precise attacks; town leaders do not protest, and dozens of families stand outside their homes watching convoy as it rolls toward battle; photo (M)

New York City housing developer Les Bluestone, who ointerspersed 70 brick houses among public housing towers and abandoned lots in South Bronx, included green building measures, such as high-efficiency insulation and appliances, to conserve energy and lower costs for lower-income residents; similar programs in affordable homes across country also described; photos (M)