India's Supreme Court ordered Vodafone to deposit 25 billion rupees ($554 million) within three weeks on its contested $2.5 billion tax bill, a company spokesman said Monday.

The British telecoms company said it also would arrange a guarantee with an Indian bank for the remaining 85 billion rupees ($1.9 billion) within eight weeks, as ordered by the court.

The Supreme Court has not yet delivered a verdict in the case, which is being closely watched by foreign companies fearful that it could set a precedent that might make them liable for retroactive changes under Indian tax law. The next hearing is set for Feb. 24.

The tax relates to Vodafone's acquisition of the Indian telecom assets of Hong Kong's Hutchison Telecommunications International Ltd.

Vodafone, whose joint venture with India's Essar group is one of India's largest mobile operators, maintains that it does not owe tax on the $11 billion transaction because it took place between two foreign entities.

In May 2007, Vodafone International Holdings BV — a Dutch subsidiary of the British telecom giant — acquired a 67 percent stake in CGP Investments Ltd., a Cayman Islands company which held the Indian telecom assets of Hutchison.

The Dutch government has stepped in to try to resolve the case out of court under the terms of a government-to-government tax treaty, Vodafone said, after earlier efforts by British officials to lobby New Delhi.

Discount retailer Loehmann's is filing for bankruptcy after its Dubai government-linked owner failed to reach a debt-extension deal with creditors.

Loehmann's says the Chapter 11 filing Monday in the U.S. Bankruptcy Court for the Southern District of New York is "pre-negotiated," meaning it could play out faster than a traditional bankruptcy filing.

Dubai's Istithmar World investment unit bought New York-based Loehmann's for $300 million in 2006. The 89-year-old retailer sells designer brands at discount prices in 15 states and the District of Columbia.

Istithmar is a subsidiary of troubled state conglomerate Dubai World.

U.S. regulators probing the May flash crash are focusing on a trading practice known as "quote stuffing", in which large numbers of rapid-fire orders to buy or sell stocks are placed and canceled almost immediately.

CFTC commissioner Scott O'Malia told Reuters on Thursday that the futures regulator was reviewing data from Nanex LLC, a trade database developer that issued a study suggesting that computer algorithms used quote stuffing to gain an edge during the May 6 crash.

The U.S. Securities and Exchange Commission, which is investigating the crash jointly with the Commodity Futures Trading Commission, is looking at quote stuffing and something called "sub-penny pricing", a person familiar with the flash crash probe said.

The Nanex study uses market graphics and playful names to illustrate quote stuffing, arguing that high-frequency trading firms do this to flood the marketplace with bogus orders to distract rival trading firms.

Investors could make trades under the false impression that those orders were legitimate, only to see liquidity disappear and the market move against them when the orders are canceled -- all in the blink of an eye.

The Justice Department's Public Integrity Section has a storied 34-year history of pursuing corruption in government and safeguarding the public trust.

That trust was breached, however, when some of the unit's prosecutors failed to turn over evidence favorable to the defense in their high-profile criminal trial of Sen. Ted Stevens, R-Alaska, who died earlier this month in a plane crash.

Now Jack Smith, a 41-year-old prosecutor with a love for courtroom work and an impressive record, has been brought in to restore the elite unit's credibility.

Before Stevens, Public Integrity's renown was built on large successes — like the prosecution of the Jack Abramoff lobbying scandal and convictions of federal and state judges, members of Congress and state legislators, military officers, federal lawmen and bureaucrats and their state counterparts over the years.

But its stumble — not disclosing exculpatory evidence as Supreme Court precedent requires — was equally large. It was so serious that Attorney General Eric Holder, one of Public Integrity's distinguished alums, stepped in and asked a federal judge to throw out Stevens' convictions.

At the time of the Stevens debacle, Smith was overseeing all investigations for the international war crimes office at The Hague in the Netherlands. He'd read about the Stevens case. Offered the chance to take over Public Integrity, he couldn't stay away.

Democratic Party Chairman Tim Kaine is defending first lady Michelle Obama's vacation trip to Spain, saying critics of her travels are trying to politicize the issue.

Kaine tells NBC's "Today" show he thinks "it's wrong" to talk critically about her trips. Critics contend they send a poor message at a time when many Americans are out of work.

Kaine said, "She's a mom." He said this was an opportunity for her to take nine-year-old daughter Sasha to a part of the world she hadn't seen before.

Kaine said President Barack Obama and Michelle Obama are "focused on being good parents." Mrs. Obama returned with Sasha to the White House late Sunday. Her trip occurred as Obama was celebrating his 49th birthday and their other daughter, 12-year-old Malia, was away at summer camp.