Apparently the puppet government of Whatizname Maliki is showing a little spine (I guess they're not getting their kickbacks from the contractors on time) concerning Blackwater. They're revoking their "license" to do business in Iraq, which effectively takes them out of the "protection" racket. And it means that the US officials who use them for bodyguards can't anymore...

The US has suspended all road journeys by its diplomats in Iraq outside Baghdad's heavily fortified Green Zone.
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"For their own interests, the Americans should hire a new company to protect their people so they can move freely."
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In a statement sent to US citizens in Iraq on Wednesday, the US embassy said it had suspended all road journeys by its diplomats throughout the country in order to conduct a safety review.

I've wondered how long the Iraqis would tolerate the "security" companies running rampant in their country. The whole "contractor" thing has been such a legacy of the unlamented Rummy that I'm betting that the current (and certainly next) powers that be will be looking for a way to get rid of them, expediently and quietly. They are useful, but becoming a political embarrassment at home, something that never increases your longevity as an entity that receives money from our Uncle (unless you're really, really connected which Blackwater is right now).