 Bernanke: More economic pain ahead
 Associated Press
Federal Reserve Chairman Ben Bernanke warned Tuesday that the financial crisis has not only darkened the country's current economic performance but also could prolong the pain.
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Fed to buy massive amounts of short-term debt
WASHINGTON, 11:19 a.m. Oct. 7 (AP)
The Federal Reserve moved swiftly to break through a credit clog that is imperiling the economy, saying Tuesday it would buy massive amounts of short-term debt and hinting that it may cut interest rates.
Fed Chairman Ben Bernanke warned that the financial crisis has not only darkened the country's current economic performance but also could prolong the pain.
LONDON, 11:42 a.m. Oct. 7 (AP)
British leaders in talks after bank shares skid: Prime Minister Gordon Brown summoned the head of Britain's central bank and chief financial regulator for talks Tuesday after banks' share prices plunged amid investors' worries that the government hasn't done enough to strengthen bank balance sheets.
WASHINGTON, 11:41 a.m. Oct. 7 (AP)
Retirement accounts have lost $2 trillion: Americans' retirement plans have lost as much as $2 trillion in the past 15 months, Congress' top budget analyst estimated Tuesday.
NEW YORK, 11:34 a.m. Oct. 7 (AP)
Stocks tumble as Street worries about financials: Wall Street extended its steep declines Tuesday as enthusiasm over the Federal Reserve's latest efforts to inject frozen credit markets with a dose of much-needed confidence gave way to concerns about financial companies' balance sheets. Trading remained fractious, with the Dow Jones industrial average losing more than 225 points.
WASHINGTON, 11:28 a.m. Oct. 7 (AP)
Fed minutes show policymakers saw balanced risks: Even in the midst of a severe meltdown on Wall Street, Federal Reserve officials at their September meeting believed the risks from weaker growth and higher inflation were roughly equal.
NEW YORK, 11:26 a.m. Oct. 7 (AP)
Oil prices recover slightly after steep drop: Oil prices rebounded slightly Tuesday, hovering near $89 a barrel after some stability returned to the shaky financial system and encouraged investors to cautiously re-enter the market.
WASHINGTON, 11:25 a.m. Oct. 7 (AP)
Insurance giant AIG's role in market crisis probed: Former top executives of insurance giant American International Group Inc. were on the receiving end of a verbal smackdown Tuesday as a congressional panel probed the chain of events that forced the government to bail out the conglomerate.
DETROIT, 11:06 a.m. Oct. 7 (AP)
NADA chair says 700 dealers to likely close: The chairwoman of the National Automobile Dealers Association says the credit crunch and economic problems are likely to cause 700 auto dealers to go under this year.
WASHINGTON, 9:28 a.m. Oct. 7 (AP)
Bush talks with European leaders on crisis: President Bush reached out to European leaders on Tuesday to urge coordination on efforts to solve financial crisis spreading around the globe. The White House said Bush was open to the idea of a leaders' summit on the economic upheaval.
WASHINGTON, 9:04 a.m. Oct. 7 (AP)
IRS eases tax rules on U.S. firms with foreign units: The Internal Revenue Service, seeking to make cash more available during the current credit crunch, has issued a rule making it easier for U.S. corporations to bring home money made by their foreign subsidiaries.
WASHINGTON, 8:23 a.m. Oct. 7 (AP)
FDIC approves bank fee increase for insurance fund: The FDIC on Tuesday approved a proposed increase in premiums that will double the average paid by U.S. banks and thrifts next year to replenish the deposit insurance fund.
NEW YORK, 8:21 a.m. Oct. 7 (AP)
Credit markets ease a bit on Fed move to buy paper: The credit markets saw some slight easing Tuesday after the Federal Reserve said it would buy commercial paper, the unsecured short-term debt that companies sell for their short-term cash needs.
8:17 a.m. Oct. 7 (AP)
Now that oil prices are down, why aren't airfares?: Q. Since oil prices have fallen off recently, why haven't airfares fallen too? A. Fuel makes up about 40 percent of the total budgets of most major airlines. And in the past year, as the price of oil – and in tandem, the price of jet fuel – has skyrocketed and surpassed labor as their biggest expense.
7:28 p.m. Oct. 6 (AP)
Stock drop heightens investors' money worries: The panicked selloff in the stock market that sent the Dow Jones industrial average down as much as 800 points Monday before it recovered left investors' jangled nerves further on edge.
Oct. 7 (UNION-TRIBUNE)
Countrywide settlement to bring relief to S.D. County: Hundreds of San Diego County homeowners now facing foreclosure will benefit from the settlement of California's predatory lending lawsuit against Countrywide Financial Corp., Attorney General Jerry Brown said yesterday.
NEW YORK, 2:03 p.m. Oct. 6 (AP)
Wall Street tumbles amid global sell-off: Wall Street suffered through another extraordinary and traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points – their largest one-day point drop – before recovering to close with a loss of 370.
MOSCOW, 6:03 a.m. Oct. 7 (AP)
Medvedev pledges more $36B cash for banks: President Dmitry Medvedev unveiled new measures Tuesday to prop up Russia's shattered banking system, injecting billions of rubles to ease a liquidity shortage one day after the country's stocks suffered their worst-ever day of trading.
LONDON, 5:58 a.m. Oct. 7 (AP)
European markets recover on rate cut hopes: European stocks posted modest gains Tuesday ahead of Wall Street's opening on hopes the world's leading central banks will cut interest rates soon, possibly in a coordinated manner to deal with the world financial crisis.
MUMBAI, India, 4:57 a.m. Oct. 7 (AP)
India's central bank eases monetary policy: India's central bank has reversed months of monetary tightening, as concerns about liquidity take precedence over the bank's long battle against double-digit inflation.
SYDNEY/TOKYO, 4:37 a.m. Oct. 7 (REUTERS)
Australia rate cut stuns, markets thirst for more: Australia stunned markets with its steepest interest cut in 16 years on Tuesday and investors expected that other central banks would follow suit in a coordinated move to combat the global credit crisis.
TOKYO, 4:33 a.m. Oct. 7 (AP)
Bank of Japan to manage policy independently: The head of Japan's central bank said Tuesday that while global financial turmoil is intensifying, each country should manage monetary policy independently, damping speculation of coordinated rate cuts by major economies.
Oct. 7 (UNION-TRIBUNE)
Land sale delayed; developer seeks loan:The scheduled foreclosure auction of a prime, full-block site near Petco Park has been delayed to give the bankrupt developer more time to arrange a $33 million bridge loan in hopes of salvaging the project.
Oct. 7 (UNION-TRIBUNE)
T-bill rates fall: Interest rates on short-term Treasury bills fell in the government's auction with yields on three-month bills declining to the lowest level on record.
Oct. 7 (UNION-TRIBUNE)
Bailout no quick fix for wide financial crisis:
When the Bush administration pushed its $700 billion bailout bill through Congress last week, the stated goal was to calm the stock market and ease the global flow of credit.
LONDON, 3:05 p.m. Oct. 6 (AP)World stock markets plunge on crisis fears: Stock markets slumped worldwide Monday, some marking record one-day drops, on fears the global financial crisis will worsen and hit the wider economy despite bank bailouts in the U.S. and Europe. NEW YORK, 2:39 p.m. Oct. 6 (AP)
Wachovia, Citigroup, Wells agree to standstill: Wachovia, Citigroup and Wells Fargo on Monday agreed to a standstill of all formal litigation activity – a sign that the banks and the Federal Reserve are working feverishly to reach an agreement over the fate of Wachovia. WASHINGTON, 3:00 p.m. Oct. 6 (AP)
FDIC head promises no taxpayer cost in borrowing: Amid ebbing public confidence in banks, the head of the FDIC promises there will be no cost to taxpayers if the agency needs to borrow from Treasury to cover the new increase in the federal deposit insurance limit to $250,000. WASHINGTON, 2:37 p.m. Oct. 6 (AP)
Rescue plan disappointment contributes to sell-off: The government's $700 billion rescue, aimed at rebuilding economic confidence, appeared to sound a global alarm instead on Monday, triggering a fearful international sell-off as the U.S. began work on a plan that investors feared would be too little and too late to stave off a worldwide recession. NEW YORK, 1:44 p.m. Oct. 6 (AP)
Credit markets still tight as stocks plunge: The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the Treasury will go about buying $700 billion of U.S. banks' mortgage assets. NEW YORK, 1:52 p.m. Oct. 6 (AP)
Oil prices fall as financial turmoil goes global: Oil prices plunged below $90 a barrel Monday, coming within reach of year-ago levels as a widening financial maelstrom spreads overseas and crimps global demand for energy. HOUSTON, 1:55 p.m. Oct. 6 (AP)
Reliant Energy considering seeking buyer: Reliant Energy, which supplies electricity to nearly 2 million customers in Texas and the Mid-Atlantic region, served notice that it may be shopping for a buyer Monday as a credit crises that has reshaped Wall Street continued to spread. NEW YORK, 2:04 p.m. Oct. 6 (AP)
Bank of America reports profit drop, capital raise: Bank of America Corp. on Monday reported its third-quarter results earlier than planned, revealing a 68 percent profit drop and plans to boost capital by selling stock and halving its dividend. HARRISBURG, Pa., 2:13 p.m. Oct. 6 (AP)
Mars, Wrigley close $23 billion deal, create giant: Mars Inc. has closed a $23 billion deal to purchase chewing-gum giant Wm. Wrigley Jr. Co., the companies said Monday, making the combined business the world's largest candy maker. NEW YORK, 2:15 p.m. Oct. 6 (AP)
eBay cutting 1,600 jobs, 10 percent of work force: After a series of changes designed to draw more people to its online marketplace, eBay Inc.'s latest alteration is aimed at its own employees. The auction site operator said Monday it will cut about 1,600 jobs, 10 percent of its work force, in its largest round of dismissals ever. INDIANAPOLIS, 2:17 p.m. Oct. 6 (AP)
Eli Lilly to buy ImClone for more than $6B: Eli Lilly & Co.'s winning bid of more than $6 billion for cancer drugmaker ImClone Systems means a billion-dollar payday for former rival bidder Bristol-Myers and vindication for corporate raider and ImClone Chairman Carl Icahn. LUXEMBOURG, 2:19 p.m. Oct. 6 (AP)
ECB tries to soothe volatile markets: European Central Bank President Jean-Claude Trichet said Monday he thinks jittery financial markets are overestimating risks. SAO PAULO, Brazil, 2:21 p.m. Oct. 6 (AP)
Latam stocks plunge on slowdown concerns: Latin American stocks plunged Monday, led by a stunning 15 percent intraday drop in Brazilian shares, on concern the world is descending into a severe economic slowdown that could devastate the region's commodities-based economies and reverse hard-won gains for workers. CHARLOTTE, N.C., 2:23 p.m. Oct. 6 (AP)
Allianz investing $2.5B in Hartford Financial: Hartford Financial Services Group Inc. said Monday it will receive a $2.5 billion investment from Allianz SE, a move which may foretell a possible acquisition. LOS ANGELES, 1:42 p.m. Oct. 6 (AP)
Paid plaintiff gets 3 months for kickback scheme: A man who was paid $2.5 million to be a plaintiff in a major lawsuit kickback scheme was sentenced Monday to three months in prison. NEW YORK, 1:41 p.m. Oct. 6 (AP)
Kraft to cut 400 jobs in North America: Foodmaker Kraft Foods Inc. said Monday it is cutting 400 jobs in North America to reduce costs.
Oct. 6 (UNION-TRIBUNE)
On the move: Systems, a pharmacy benefit management company, named Dr. Louis C. Tripoli vice president and medical director. Tripoli served in the Navy and was senior medical officer for the personnel command.
FRANKFURT/BOSTON, 12:56 p.m. Oct. 6 (REUTERS)
SAP saw sudden drop-off in software sales: German software maker SAP AG warned that its sales had abruptly dropped off in the last two weeks of September as companies cut back on computer-related spending due to the widening financial crisis.
CINCINNATI, 12:55 p.m. Oct. 6 (AP)
Bush: Financial rescue plan will take some time: As Wall Street reeled and global markets plunged, President Bush on Monday said the U.S. economy is going to be “just fine” in the long run. But he cautioned that the massive rescue plan will take time to work.
WASHINGTON, 12:51 p.m. Oct. 6 (AP)
China cancels military contacts with U.S.: China has abruptly canceled a series of military and diplomatic contacts with the United States to protest a planned $6.5 billion package of U.S. arms sale to Taiwan, American officials told The Associated Press on Monday.
MOSCOW, 12:42 p.m. Oct. 6 (AP)
Russian shares plunge: With the price of crude sliding, oil-rich Russia on Monday saw its stock markets take their most brutal one-day beating ever.
MINNEAPOLIS, 12:27 p.m. Oct. 6 (AP)
Sun Country files for bankruptcy protection: Regional carrier Sun Country Airlines is filing for Chapter 11 bankruptcy, blaming legal troubles from a fraud investigation of its parent company Petters Group Worldwide.
NEW YORK, 12:00 p.m. Oct. 6 (AP)
Starbucks faces another NLRB complaint: Starbucks Corp. is facing another complaint from the National Labor Relations Board alleging that the gourmet coffee chain engaged in unfair labor practices by firing a barista in Michigan.
WASHINGTON, 11:55 a.m. Oct. 6 (AP)
Fed to provide as much as $900B in loans to banks: The Federal Reserve will provide as much as $900 billion in cash loans to squeezed banks in an urgent effort Monday to break through a dangerous credit clog that threatens the economy and has unhinged financial markets around the globe.
WASHINGTON, 11:40 a.m. Oct. 6 (REUTERS)
Lehman's Fuld falls on sword as Congress bares teeth: Richard Fuld, the disgraced head of Lehman Brothers, said he took full responsibility for his actions ahead of the downfall of the 158-year investment bank, but said U.S. regulators knew exactly what the firm's liquidity was and how it was pricing its distressed assets in the months before its collapse.
WASHINGTON, 10:43 a.m. Oct. 6 (AP)
FDIC chair: Higher insurance to boost confidence: The head of the FDIC says the new increase in federal deposit insurance limits will not solve all banking industry ills but will bolster public confidence in banks' safety. And she said a resolution was near in the legal tussle betwen Citigroup and Wells Fargo over which one will buy Wachovia.
10:36 a.m. Oct. 6 (AP)
A look at world market activity: A look at what happened in some stock markets around the world Monday:
LOST PINES, Texas, 9:29 a.m. Oct. 6 (REUTERS)
Fed's Evans: weak growth to linger, inflation too high: The U.S. economy faces difficult challenges during a time of extraordinary turbulence, and weak growth will probably linger into 2009, a top Federal Reserve official said Monday, adding that the central bank needs to continuously re-evaluate its policies.
BERLIN, 8:42 a.m. Oct. 6 (AP)
Germany considers national financial 'shield': Germany's finance minister said Monday he is considering creating a “shield” that would protect the country's entire financial sector, arguing it would not be possible to continue to address troubled financial institutions on a case by case basis.
NEW YORK, 8:40 a.m. Oct. 6 (REUTERS)
Citi wants U.S. guarantee for Wachovia – source: Citigroup Inc. does not have any appetite to take on Wachovia Corp.'s mortgage assets without at least a partial government guarantee, a person close to the bank said – but the bank is also disinclined to walk away from Wachovia.
NEW YORK, 8:39 a.m. Oct. 6 (REUTERS)
Allianz invests $2.5 billion in Hartford Financial: Hartford Financial Services Group Incsaid Monday that Germany's Allianz SE will invest $2.5 billion in the U.S. life and property insurer, sending Hartford shares up as much as 20 percent, even as it cut its quarterly dividend and forecast losses.
BAGHDAD, 8:27 a.m. Oct. 6 (REUTERS)
OPEC members worried by oil price fall-Iraq: OPEC members are worried by the drop in the price of oil to around $90 a barrel, Iraq's oil minister told Reuters in an interview on Monday.
WASHINGTON, 8:17 a.m. Oct. 6 (AP)
Treasury and Fed pledge rapid response to crisis: The president's top economic advisers are pledging to work with their counterparts around the world to restore confidence and stability to financial markets roiled by tight credit and worries about a global economic slowdown .
NEW YORK, 7:52 a.m. Oct. 6 (REUTERS)
MGM Mirage's CityCenter gets first phase funding: MGM Mirage said Monday that its CityCenter project on the Las Vegas Strip completed the first phase of a $3 billion financing package by securing a $1.8 billion bank credit facility.
DETROIT, 7:51 a.m. Oct. 6 (AP)
Ford feature will let parents set limits for teens: So you think junior is a little too lead-footed when he drives the family car? Starting next year, Ford Motor Co. will give you the power to do something about it.
NEW YORK, 7:49 a.m. Oct. 6 (AP)
Consumers likely to shop cautiously for toys: Will financial-market turmoil be the Grinch this Christmas? With parents already facing high food and gas costs and slumps in the job and housing markets, the turmoil in the financial sector could further spur them to cut their spending, focus on less-expensive toys and consider which toys will get the most use, experts say.
NEW YORK, 7:45 a.m. Oct. 6 (REUTERS)
CFOs say credit is both dearer and harder to get: Corporate finance chiefs say credit is both more difficult to get and more expensive when it is available, but they are more optimistic about the U.S. economy, according to a new survey Monday.
LONDON, 7:22 a.m. Oct. 6 (REUTERS)
Credit crisis to weigh on oil demand: The worsening credit crisis and economic outlook is likely to hit oil demand, weighing on prices and increasing the chance that consumption growth will slow down or even stop next year.
QUITO, 7:19 a.m. Oct. 6 (REUTERS)
Ecuador's Correa threatens to expel oil companies: Ecuadorean President Rafael Correa has threatened to expel foreign oil companies if they fail to lift dwindling output in the OPEC nation.
WASHINGTON, 7:16 a.m. Oct. 6 (AP)
Top court stays out of DVR patent fight: The Supreme Court is refusing to disturb a $74 million judgment against Dish Network Corp. for violating a patent held by TiVo Inc. involving digital video recorders.
WASHINGTON, 6:47 a.m. Oct. 6 (AP)
Official: Kashkari to be tapped to head bailout: An official says the administration has decided to pick a key Treasury Department official to be the interim head of its $700 billion rescue effort for financial institutions.
FRANKFURT, Germany, 6:36 a.m. Oct. 6 (AP)
Germany pledges to secure deposits: The German government on Monday defended its pledge to guarantee personal savings amid ongoing market turbulence as “an important step at the right moment.”
NEW YORK, 6:12 a.m. Oct. 6 (REUTERS)
Netflix trims 4th qtr revenue, subscriber numbers: Netflix Inc., the online DVD rental company, said Monday its fourth-quarter revenue and subscriber figures would fall short of expectations, driving its shares 10 percent lower.
NEW YORK, 5:53 a.m. Oct. 6 (AP)
Report: Fed pushes Citi, Wells to split Wachovia: Federal Reserve officials have been pushing for Citigroup Inc. and Wells Fargo & Co. to reach a compromise over Wachovia Corp., according to a media report.
WASHINGTON, 5:22 a.m. Oct. 6 (AP)
Treasury announces plan to boost debt auctions: The Treasury Department says it will increase its debt auctions to handle the $700 billion rescue program for the country's financial system.
Oct. 5 (UNION-TRIBUNE)
Then & now: On the campaign trail, Republican vice-presidential nominee Sarah Palin worries aloud that the nation “could be on that path” to the Great Depression. Her Democratic rival, Joe Biden, compares this year's election to the Depression-era clash between Herbert Hoover and Franklin Roosevelt.
NEW YORK, 7:24 a.m. Oct. 5 (AP)Citi: Wells Fargo blocked from buying Wachovia: The fight over control of Wachovia intensified Saturday, as a judge temporarily agreed to block the sale of the bank to Wells Fargo, Citigroup announced in a news release. WASHINGTON, 7:43 a.m. Oct. 5 (AP)
Next president will be handed a fragile economy: Even with the $700 billion bailout, the financial crisis and fragile economy promise to loom large over the opening days of the next administration. STOCKHOLM, Sweden, 8:04 a.m. Oct. 5 (AP)
Europeans scramble to save failing banks: Governments across Europe scrambled to save failing banks on Sunday, working largely on their own a day after leaders of the continent's four biggest economies called for tighter regulation and coordinated response to the global meltdown. BERLIN, 9:00 a.m. Oct. 5 (AP)
Germany guarantees private savings accounts: Germany announced Sunday that it would guaranteed all private savings accounts, joining Ireland and Greece in taking drastic independent action to head off financial crisis.
Oct. 4 (UNION-TRIBUNE)
Small banks may not see big bailout boost: San Diego County's small banks conceivably could benefit from the controversial $700 billion bailout package by selling troubled mortgages or construction loans to the government.
FONT CLASS="dateline">NEW YORK, 9:11 a.m. Oct. 4 (AP)For bailout to work, housing market needs to mend: Washington's financial bailout plan is now law. So the credit spigot will start flowing again, banks will resume lending, and an economic recovery can begin, right? WACO, Texas, 8:05 a.m. Oct. 4 (REUTERS)
Bush: Effects of financial bailout will take time: President Bush said Saturday that benefits from the recently passed financial bailout will take time to show up in the U.S. economy. NEW YORK, 2:16 p.m. Oct. 3 (AP)
Stocks end lower amid worries after House OKs plan: Wall Street ended an intensely volatile week with another sell-off Friday while credit markets remained strained after enthusiasm over the government's $700 billion financial rescue plan gave way to worries about obstacles still facing the economy. The Dow Jones industrials fell 157 points, and all the major indexes finished the week with big losses. MORAINE, Ohio, 2:15 p.m. Oct. 3 (AP)
GM to close Ohio SUV factory Dec. 23: General Motors Corp. said Friday it will shut down its SUV assembly plant here on Dec. 23 as the company shifts focus to smaller vehicles. NEW YORK, 2:14 p.m. Oct. 3 (AP)
Toyota's 0 percent offer shows credit is available: Toyota Motor Corp.'s unprecedented offer of zero-percent financing on nearly a dozen models is trying to make the point that tight credit is no excuse for buyers – in fact, it's literally giving credit away for free. SEATTLE, 2:08 p.m. Oct. 3 (AP)
Boeing airplane deliveries plummet during strike: One month after the start of a Machinists union strike, Boeing Co. has reported a nosedive in deliveries of commercial aircraft.
NEW YORK, 2:02 p.m. Oct. 3 (AP)
Wells Fargo agrees to buy Wachovia, Citi objects: A battle broke out Friday for control of Wachovia, as Wells Fargo agreed to pay $15.1 billion for the struggling bank, while Citigroup and federal regulators insisted that Citi's earlier and lower-priced takeover offer go forward.
NEW YORK, 2:02 p.m. Oct. 3 (AP)Dollar comes off highs vs euro as job losses mount: The dollar dipped against most major currencies and retreated from its high vs the euro Friday in New York as more jobs were cut in the U.S. and President Bush signed the financial rescue plan into law. CHARLOTTE, N.C., 2:01 p.m. Oct. 3 (AP)
Nervous Charlotte ponders the future of Wachovia: First it was Citigroup. Then Wells Fargo. As two banks still standing amid a historic economic meltdown clash over the once strong Wachovia, employees and city leaders are certain of only one thing: It's been a rough week on Tryon Street. SAN JUAN, Puerto Rico, 1:57 p.m. Oct. 3 (AP)
Drink up: Rum rebate in bailout benefits islands: The U.S. economy got a US$700 billion shot in the arm Friday – and Puerto Rico and the U.S. Virgin Islands got a shot of assistance from rum. SACRAMENTO, 1:46 p.m. Oct. 3 (AP)
Calif. leaders hope bailout loosens credit market: Gov. Arnold Schwarzenegger and California's top finance officials reacted cautiously Friday to congressional approval of the $700 billion Wall Street bailout package, warning that the nation's tight credit market still presents considerable challenges for the state. CHARLOTTE, N.C., 1:45 p.m. Oct. 3 (AP)
AIG plans sale of business units to repay debt: The insurer American International Group Inc. said Friday it plans to sell off a number of business units to pay off its massive government loan. NEW YORK, 1:43 p.m. Oct. 3 (AP)
Wall Street watches vote and exhales – for now: It started like any lunch hour at the New York Stock Exchange: Traders walked the floor carrying pizza boxes and sacks of fast food. Scattered clapping and laughter echoed around. WASHINGTON, 1:41 p.m. Oct. 3 (AP)
Economy sheds most jobs since 2003, more cuts seen: Jobs are vanishing at the fastest pace in more than five years with pink slips likely to keep stacking higher in the months ahead, an urgent signal the country may be careening toward a deep and painful recession just as Americans prepare to elect a new president. BOSTON, 1:35 p.m. Oct. 3 (AP)
Money-market fund providers seek guarantees: With a sign-up deadline approaching next week, most of the nation's biggest money-market mutual fund providers plan to participate in a federal guarantee program to prop up the $3.4 trillion money-market fund industry. SAN FRANCISCO, 1:35 p.m. Oct. 3 (AP)
Ex-McAfee exec cleared of option backdating charge: A jury has acquitted the former top lawyer at computer-security software maker McAfee Inc. of illegally tampering with his stock option grants to boost his pay package. NEW YORK, 1:33 p.m. Oct. 3 (AP)
Lofty commodity costs drench brewers: Anheuser-Busch Cos. and InBev SA, which are combining in a $52 billion tie-up to be the world's largest brewer, said Friday they plan to focus more on costs to deal with rising commodity prices that have consumers spending more for a pint of beer. SPRING HILL, Tenn., 1:32 p.m. Oct. 3 (AP)
GM launches new Traverse crossover at Tenn. plant: General Motors Corp. on Friday officially launched full-scale production of the its new Chevrolet Traverse at its overhauled former Saturn plant on the outskirts of Nashville. NEW YORK, 1:32 p.m. Oct. 3 (AP)
Cows may hold secret for unleashing energy in corn: Researchers attempting to make the production of corn-based ethanol more efficient may not have needed to leave the farm. NEW YORK, 1:30 p.m. Oct. 3 (AP)
Banks likely to get short-term boost from bailout: The $700 billion rescue package passed Friday by Congress will help alleviate short-term pressures on the faltering credit markets, but will not necessarily cure all the problems of the financial sector, analysts said. LOS ANGELES, 1:27 p.m. Oct. 3 (AP)
Little Tokyo seeks to build back Japanese vibe: The last time Little Tokyo tried getting back to its Japanese roots, it was in the early 1980s with the Japanese Village Plaza, a warren of sweets shops, tea stands and trinket stores under sloping glazed-tile roofs. WASHINGTON, 1:02 p.m. Oct. 3 (AP)
Banks to see write-offs after asset sales to gov't: The biggest tax breaks in the financial industry bailout may be those that aren't even in the bill. Banks and other financial institutions can conceivably write off billions of dollars in losses after they sell bad mortgage assets to the government. HOUSTON, 12:58 p.m. Oct. 3 (AP)
Oil slips after job report, $700B bailout: Oil prices slipped in volatile trading Friday after Congress approved a historic $700 billion bailout of the nation's teetering financial industry as the longterm health of the global economy remained questionable. WASHINGTON, 12:57 p.m. Oct. 3 (AP)
U.S. announces Taiwan arms package: The Bush administration announced plans Friday to sell $6 billion in arms to Taiwan, a decision sure to anger Taiwan's rival China and one that could complicate stalled North Korean disarmament efforts. LONDON, 12:45 p.m. Oct. 3 (AP)
Iceland pays price for rapid economic growth: As the world suffers a hangover from the financial excesses of the past few years, the tiny island nation of Iceland has a bigger headache than most. WASHINGTON, 12:44 p.m. Oct. 3 (AP)
Toy arrow makers duck as tax break gets zinged: They're tired of the zingers. Wisecracks aimed at a $2 million toy arrow tax break slipped into the financial bailout package are leaving some arrow makers feeling like they're wearing targets on their backs. NEW YORK, 12:35 p.m. Oct. 3 (REUTERS)
Many U.S. workers do not respect their bosses: Almost half of U.S. workers do not respect their boss and only half believe they are competent, according to an online survey released Friday.
WASHINGTON, 12:27 p.m. Oct. 3 (AP)
House approves extension of jobless benefits: The House voted Friday to extend unemployment benefits to those who have exhausted their current benefits. The vote came hours after learning that the nation's payrolls were continuing to shrink and after the House had approved a massive financial rescue plan for Wall Street.
CHICAGO, 12:17 p.m. Oct. 3 (AP)
Investment banking careers dim for MBA students: The path to a high-powered career in investment banking suddenly is full of roadblocks for MBA students who have seen Wall Street drastically reshaped while they sit in the classroom.
WASHINGTON, 12:09 p.m. Oct. 3 (AP)
Paulson pledges quick action on rescue program: Treasury Secretary Henry Paulson pledged to get the $700 billion financial rescue program up and going quickly.
NEW YORK, 12:08 p.m. Oct. 3 (AP)
ALL BUSINESS: Bailout won't cure economic stress: Now that the government has decided it will spend $700 billion to get the economy started again, don't expect immediate results.
PARIS, 12:00 p.m. Oct. 3 (AP)
Divided EU leaders head into financial summit: The global financial crisis is forcing the leaders of France, Germany, Britain and Italy to come together for an emergency summit this weekend, but differences on how to respond to the economic turmoil could drive them apart.
LONDON, 11:40 a.m. Oct. 3 (AP)
Financial data firms brace for squeeze from crisis: Companies that provide financial data to banks are bracing for a squeeze after many of their major clients – Lehman Brothers, Merrill Lynch, UBS and dozens of hedge funds – have collapsed, been sold or cut thousands of jobs in the financial crisis.
SAO PAULO, Brazil, 11:37 a.m. Oct. 3 (AP)
Latam stocks lower on slowdown concerns: Latin American stocks were mostly lower Friday after U.S. lawmakers approved a bailout plan for financial institutions amid concerns it won't be enough to prevent a global economic slowdown.
COLUMBUS, Ohio, 11:23 a.m. Oct. 3 (AP)
Cleveland Cliffs gets investor support for buyout: A hedge fund lost the fight to double its holdings in Cleveland-Cliffs on Friday, a move that would have allowed it to block the iron ore miner's $4 billion buyout of Alpha Natural Resources.
NEW YORK, 10:52 a.m. Oct. 3 (AP)
Credit markets still tight after bailout approval: The stranglehold on the credit markets remained tight Friday after the House approved a revised $700 billion financial bailout, with investors still dubious about the plan's ability to boost the faltering U.S. economy.
WASHINGTON, 10:44 a.m. Oct. 3 (AP)
Tax breaks big and small sweeten financial bailout: Millions of taxpayers, thousands of businesses and groups as diverse as solar power developers and natural disaster victims will see tax relief with the House vote Friday to approve and send to the president a $700 billion financial rescue plan.
CALCUTTA, India, 10:40 a.m. Oct. 3 (AP)
Tata to move car plant to different Indian state: Tata Motors said Friday it has decided to shift production of the Nano, billed as the world's cheapest car, from India's West Bengal state because of unrelenting opposition from a powerful local political party.
WILMINGTON, Dela., 10:39 a.m. Oct. 3 (AP)
WaMu debt holders stake claim in bankruptcy court: Lawyers for Washington Mutual Inc. and its bondholders stood before a Delaware bankruptcy court judge on Friday to tussle over assets – including $5 billion in cash – and set timelines for the organized demise of what was once the nation's largest savings and loan.
LONDON, 10:32 a.m. Oct. 3 (AP)
UK pledges continued action on financial crisis: The British government pledged on Friday to take further action as necessary to help financial markets and stabilize the economy as it made moves to ensure consumer deposits and extend loans available to banks.
SALT LAKE CITY, 10:30 a.m. Oct. 3 (AP)
Questar Gas files for rate reduction: Questar Gas Co. plans to offer a rate cut because drilling in the Rocky Mountains is driving down prices in the volatile natural gas business.
PARIS, 10:23 a.m. Oct. 3 (AP)
Electric cars shine at Paris auto show: As the race to offer the first commercially viable electric car charges up, automakers hoping to cash in on environmental concerns displayed a slew of models at the Paris Motor Show on Friday.
WASHINGTON, 9:58 a.m. Oct. 3 (AP)
Report shows loan delinquencies up slightly: Consumer loan delinquencies rose only slightly in the second quarter, a sign that the federal economic stimulus package helped people pay off debt, the American Bankers Association said Friday.
NEW YORK, 9:41 a.m. Oct. 3 (AP)
Sept. dividend payouts lowest for 3Q in 50 years: Dividend cuts in the third quarter took $22.5 billion out of the pockets of investors during what one Standard & Poor's analyst called the worst September for dividends in more than 50 years.
MOSCOW, 9:14 a.m. Oct. 3 (AP)
Russian shares plunge, regulators halt trading: Russian regulators shut down one of the country's leading stock exchanges three times Friday to stem rapid declines in shares after investors took fright at growing concerns over the global economy.
From Friday's Union-Tribune
Oct. 3 (UNION-TRIBUNE)
Chula Vistans assail expansion of power plant: Residents of southwestern Chula Vista yesterday blasted a power-plant expansion proposed near their enclave of homes, a school and a community center, saying that if the California Energy Commission allows it, their health would suffer.
Oct. 3 (UNION-TRIBUNE)
Aethlon sets clinical trial for HIV patients: Aethlon Medical said it has begun enrolling patients in the “first-in-man” clinical study of a medical device to treat the AIDS virus. The San Diego company's device, the Hemopurifier, filters infectious viruses and immunosuppressive proteins from the blood. The device previously demonstrated viral reduction in hepatitis-C patients.
WASHINGTON, 8:56 a.m. Oct. 3 (AP)
Freddie, Fannie cut back mortgage fees: Mortgage finance companies Fannie Mae and Freddie Mac, seized by the federal government last month, are rolling back fee increases imposed as they struggled to shore up their finances over the past year.
NEW YORK, 8:56 a.m. Oct. 3 (AP)
Consumer bankruptcy filings up 29% in September: The number of consumer bankruptcy filings rose about 29 percent in September from a year ago, the American Bankruptcy Institute said Friday.
TORONTO, 8:07 a.m. Oct. 3 (AP)
Canada's central bank billions into money markets: Canada's central bank is increasing its plans to inject extra cash into term lending markets from $8 billion Canadian dollars ($7.4 billion) to C$20 billion ($18.5 billion) to ensure Canadians have access to loans.
NEW YORK, 8:04 a.m. Oct. 3 (AP)
Lehman creditors want to investigate JPMorgan role: Creditors of Lehman Brothers have asked a judge to allow an investigation into whether JPMorgan Chase & Co. had a role in weakening Lehman as it headed toward bankruptcy.
WASHINGTON, 7:54 a.m. Oct. 3 (REUTERS)
U.S. House approves deal to renew Andean benefits: The House approved a bill Friday providing a one-year renewal of longtime U.S. trade benefits for Colombia and Peru, but potentially only six months for Ecuador and Bolivia.
NEW YORK, 7:39 a.m. Oct. 3 (REUTERS)
U.S. service sector barely grows in September: The sluggish U.S. service sector was barely growing in September as the country's worst financial crisis since the Great Depression reached new heights, according to a report released Friday.
WASHINGTON, 7:31 a.m. Oct. 3 (AP)
FDIC stands behind Citigroup-Wachovia deal: The head of the FDIC is standing behind the agreement it made with Citigroup Inc. for buying Wachovia Corp. despite Wells Fargo & Co.'s new $15.1 billion deal trumping Citigroup's plan.
NEW YORK, 7:28 a.m. Oct. 3 (AP)
Exports fueled services expansion in September: Educational services, farms, utilities, stores and hospitals all saw their businesses expand in September, thanks to strong exports and deliveries, a private research group's survey showed Friday.
NEW YORK, 7:26 a.m. Oct. 3 (REUTERS)
Family Dollar profit tops view, shares up: Family Dollar Stores Inc posted a higher-than-expected quarterly profit Friday, helped by shoppers who spent tax rebate checks at the discount retailer and by cost controls.
NEW YORK, 7:09 a.m. Oct. 3 (REUTERS)
Apple says report of Jobs heart attack 'not true': An Internet report claiming that Apple Incchief executive Steve Jobs has had a heart attack is not true, the company said Friday.
CHICAGO, 7:03 a.m. Oct. 3 (REUTERS)
CVS takes issue with Longs shareholder letter: CVS Caremark Corp said Friday a review of a possible sale of Longs Drug Stores Corp to Walgreen Co that found few antitrust concerns was flawed, inaccurate, erroneous and incomplete.
6:50 a.m. Oct. 3 (REUTERS)
FACTBOX-Job cuts at major financial firms: Oct 3 – UBS AG said on Friday it is cutting another 2,000 jobs at its troubled investment bank and closing most of its commodities business but will remain a universal bank and will not quit investment banking completely.
WASHINGTON, 6:43 a.m. Oct. 3 (REUTERS)
White House calls jobs report disappointing: The September unemployement report that showed some 159,000 jobs were lost, well more than expected, was disappointing and it will take time for the U.S. economy to recover from a number of shocks, the White House said Friday.
PARIS, 6:17 a.m. Oct. 3 (AP)
French economy enters recession: France has entered a recession, with economic contraction expected in the third and fourth quarters of 2008, the country's national statistics agency said Friday.
PHOENIX,, 6:11 a.m. Oct. 3 (REUTERS)
Americans query CEO pay scales as crisis deepens: Arizona design teacher Marsha Minniss believes the culture of paying sky-high salaries to U.S. executives is “insane.”
LONDON, 3:59 a.m. Oct. 3 (AP)
U.S. dollar down, gold falls in morning trading: The U.S. dollar was lower against other major currencies in European trading Friday morning. Gold fell.
NEW YORK, 7:28 a.m. Oct. 3 (AP)
Exports fueled services expansion in September: Educational services, farms, utilities, stores and hospitals all saw their businesses expand in September, thanks to strong exports and deliveries, a private research group's survey showed Friday.
NEW YORK, 2:17 p.m. Oct. 2 (AP)
Financial crisis moves from Wall St. to the mall: Alarmed by the financial meltdown, stores nationwide are slapping sale signs on everything from fall sweaters to furniture – frantically trying to attract shoppers who are cutting back.
October 2, 2008
LONDON, 2:38 p.m. Oct. 2 (AP)World markets move lower on global economic fears: World stock markets fell Thursday as broader concerns about a global slowdown dampened relief over the U.S. Senate's passage of the $700 billion bank rescue package. NEW YORK, 2:16 p.m. Oct. 2 (AP)
Stocks decline on unemployment, factory reports: Pessimism about a protracted economic downturn washed over the financial markets Thursday, sending stocks plunging and further tightening the credit markets. WASHINGTON, 1:53 p.m. Oct. 2 (AP)
Tighter credit begins to hit manufacturing, jobs: There's no need to explain to Al Lubrano how deeply tight credit has wounded the economy. Lubrano, president of a metal components maker in Lincoln, R.I., said orders from his customers in the automotive, computer, and telecommunications industries have “dropped precipitously” in the past six weeks. WASHINGTON, 1:40 p.m. Oct. 2 (AP)
Banks, investment firms ramp up Fed borrowing: Banks and investment firms ramped up borrowing from the Federal Reserve's emergency lending facility over the past week, providing fresh evidence of the credit stresses squeezing the country. NEW HAVEN, Conn., 1:35 p.m. Oct. 2 (AP)
Colleges scramble as investment fund freezes: An investment fund that serves about 1,000 colleges and private schools partially froze withdrawals this week amid the credit crunch, forcing colleges to develop new plans to pay bills. WASHINGTON, 1:40 p.m. Oct. 2 (AP)
Senator urges DOJ to monitor Google, Yahoo deal: A key senator is urging the Justice Department to keep up its investigation into the antitrust implications of the Internet advertising partnership that Google Inc. and Yahoo Inc. plan to launch this month. ROCHESTER, N.Y., 1:54 p.m. Oct. 2 (AP)
Winemaker Constellation Brands loses $23M: Constellation Brands Inc. said Thursday it lost nearly $23 million in its fiscal second quarter as strong sales of vodka and high-end wines were more than offset by charges to shrink its operations in Australia. Its shares fell nearly 9 percent. HOUSTON, 2:02 p.m. Oct. 2 (AP)
ConocoPhillips: Lower crude, gas prices in 3Q: ConocoPhillips, the third-largest U.S. oil company, said Thursday that global production of oil and natural gas in the third quarter was likely flat or slightly below second-quarter levels, in part from disruptions caused by two storms in the Gulf of Mexico. BETHESDA, Md., 1:57 p.m. Oct. 2 (AP)
Marriott books lower 3Q profit, expects tough 2009: Hotel company Marriott International Inc. said Thursday that its third-quarter profit dropped 28 percent, compared with 2007, and it warned investors about deteriorating conditions for 2009 amid the ongoing financial crisis. NEW YORK, 2:18 p.m. Oct. 2 (AP)
Thain to remain with BofA after Merrill deal: Bank of America Corp. said Thursday that Merrill Lynch & Co.'s Chief Executive John Thain will take a new position at Bank of America once the bank completes its acquisition of Merrill.
WASHINGTON, 11:21 a.m. Oct. 2 (AP)
Sweeteners entice lawmakers back to bailout plan: Bit by bit, lawmaker by lawmaker, forces in favor of the massive financial rescue plan that was rejected just days ago are turning around the tide of opinion in Congress.
LOS ANGELES, 11:19 a.m. Oct. 2 (AP)
EMI joins Nokia's 'Comes With Music': EMI Group PLC, the world's fourth-largest record label, has joined Nokia Corp.'s “Comes With Music” mobile phone service, and the handset maker has set pricing for its U.K. launch.
PARIS, 10:35 a.m. Oct. 2 (AP)
France to host Saturday EU summit on money crisis: France on Thursday formally called an exceptional weekend summit to hash out a common European Union response to the spreading U.S. financial crisis, amid divisions among European officials about how closely to coordinate their action.
Oct. 2 (UNION-TRIBUNE)
Home prices are forecast to slide for 2 more years: Homeowners already coping with an uncertain credit market and falling real estate values got more discouraging news yesterday when PMI Mortgage Insurance Co. said home prices in San Diego County are likely to continue dropping for another two years.
Oct. 2 (UNION-TRIBUNE)
IBM falls 5.8%, most in 3 years: IBM's share price fell the most in more than three years after a Sanford C. Bernstein and Co. analyst said the increased risk of customers failing to pay their bills could hurt profit.
Oct. 2 (UNION-TRIBUNE)Developer rushes to finalize loan before land sale: Developers of a proposed 39-story hotel/condo tower just outside Petco Park are scrambling to finalize a heavy-handed bridge loan before Monday, when the full-block site downtown is scheduled for sale at a foreclosure auction.
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