Finance Minister Jim Flaherty said Ottawa and Canada's banks will create a working group to loosen tight consumer credit, which has been the "number one concern" voiced during pre-budget consultations.

A Canadian Forces officer charged with second-degree murder in Afghanistan was seen near a severely wounded insurgent before two shots were fired, a court heard Tuesday.

Bowing to growing international pressure, Israel will create a "humanitarian corridor" into the Gaza Strip so that food, medication and other important supplies can be sent into the embattled area.

An eastern Ontario woman said her son Jessie Barrie was one of the two men killed in a plane crash southeast of Quebec City Tuesday morning, The Canadian Press reported.

Roland Burris announced Tuesday he was rejected for Barack Obama's Senate seat, in a bizarre rainy-day scene on the Capitol grounds as lawmakers awaited the gavelling of the 111th Congress into session.