Arizona State University announced Thursday that it is severing ties with a fraternity after the chapter hosted a distasteful party in commemoration of Martin Luther King Jr. Day, replete with racist stereotypes and offensive costumes. The school said in a statement that it has notified Tau Kappa Epsilon its recognition as a fraternity chapter at ASU has been permanently revoked. Revoking recognition means the 65-year-old local chapter is no longer affiliated with ASU, the group won't be listed on the university's website and it cannot recruit members or hold on-campus meetings. …