'Scooter' Libby Indicted in CIA Leak Case, Resigns

The New York Times has reported that notes from a previously undisclosed June 12, 2003, conversation between Libby and Cheney suggest Libby first learned about Plame from Cheney himself. This appears to contradict Libby's grand jury testimony that he first heard about Plame from journalists.

With the outing, Plame's career as a covert CIA operative has ended. The leak of her identity has sparked the questions: Who revealed Plame's identity, and why? These questions have dogged the Bush administration as weapons of mass destruction -- the initial rationale for the United States attacking Iraq -- have never been found and the death toll continues to mount. Wilson has claimed that the leak was made in retaliation for his criticism of the Bush administration's argument for going to war in Iraq.

Knowingly disclosing the identity of a covert agent like Plame could be a violation of the Intelligence Identities Protection Act, which could land a person in prison for up to 10 years.

The White House can breathe a guarded sigh of relief with Rove unindicted at present. But Libby's indictment caps off a week full of bad news for Bush. On Wednesday, U.S. officials announced the 2000th military death in Iraq, fueling the already growing opposition to the war. And on Thursday, after mounting opposition from both Democrats and Republicans, the White House announced that Harriet Miers, Bush's choice to succeed retiring Supreme Court Justice Sandra Day O'Connor, had withdrawn her nomination.

Reported by ABC News' Jonathan Karl.

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