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BREAKING: Holder Ordered to Find New Venue for KSM Trial? [Daniel Foster]

UPDATE:The White House has ordered the Department of Justice to find alternative sites for the Khalid Sheikh Mohammed trial, the Daily News is reporting. The move came after a call from Mayor Michael Bloomberg to Attorney General Eric Holder.

Bloomberg, who initially supported a Lower Manhattan trial, was influenced by a behind-the-scenes campaign to change the venue led by New York police commissioner Ray Kelly and area business leaders.

"What turned this around was when Ray made a presentation to the Police Foundation," the source said. "Everyone went from thinking, 'Justice will be served' to thinking 'We are screwed.'"

The order reportedly does not change the administration's position that Mohammed should be tried in federal criminal court. But it has caught the Justice Department off-guard:

"They're in a tizzy at Justice over Bloomberg," a federal law enforcement official said. "It's like a half-baked souffle — the plan is collapsing."

UPDATE II: Fox News's Major Garrett says officials confirm the White House and Department of Justice are in senior-level talks considering alternative sites. The talks, Garrett says, foreshadow a stand-down.