Geithner
seeks new powers over financial companies
WASHINGTON (AP) -- Treasury Secretary Timothy Geithner
asked Congress on Tuesday for broad new powers to regulate nonbank financial
companies like troubled insurer American International Group whose collapse
could jeopardize the economy.
At the same time, Federal Reserve Chairman Ben Bernanke revealed
that he had considered filing suit to keep AIG from paying millions in
executive bonuses but that his legal advisers counseled him against it.
Geithner
acknowledged that the current climate of anger, including the furor over those
retention bonuses, will complicate any effort by the Obama administration to
get more bailout money from Congress.
Home prices post 6.3 pct annual decline in January
WASHINGTON (AP) -- A government report says
The Federal Housing Finance Agency says prices, on a seasonally
adjusted basis, rose 1.7 percent from December to January.
Changes in the geographic mix of sales explained the unexpected
monthly increase. Home sales included in January's data were weighted toward
areas that haven't borne as much of the brunt of the housing recession, the
agency says.
Wall Street gives up some ground after huge gains
The Dow Jones industrial average shed 115 points, or 1.5 percent,
to 7,659.97 on Tuesday. But it also held onto 382 of the 498 points it racked
up a day earlier.
Anyone with a 401(k) would have liked to see the rally continue.
Market analysts said, though, that a pullback was expected given the massive
gains Wall Street logged the day before when the government released plans lift
bad loans off banks' books.
GM begins white-collar layoffs with 160 pink slips
DETROIT (AP) -- Dreaded white-collar job cuts at General Motors
Corp. started Tuesday as the wounded automaker began to deliver on promises to
the government to shrink its work force so it can be profitable at lower sales
levels.
On Tuesday morning, GM told 160 people at its manufacturing
engineering operations in
It's the beginning of 3,400 salaried layoffs in the
Insurers offer to stop charging sick people more
WASHINGTON (AP) -- The health insurance industry offered Tuesday
for the first time to curb its controversial practice of charging higher
premiums to people with a history of medical problems.
The offer from America's Health Insurance Plans and the Blue Cross
and Blue Shield Association is a potentially significant shift in the debate
over reforming the nation's health care system to rein in costs and cover an
estimated 48 million uninsured people. It was contained in a letter to key
senators.
Stanford's finance chief cooperating with feds
DALLAS (AP) -- The chief financial officer of the troubled
companies owned by
Attorney David Finn said Tuesday that finance chief James M.
Davis will work with the Department of Justice and the Securities and Exchange
Commission, which accused him and Stanford of running a "massive Ponzi scheme."
BofA
shareholder looks to oust CEO from board
Finger Interests Number One Ltd., which owns about one-fifth of one
percent of Bank of
The investment group is asking shareholders to vote against
re-electing Lewis as well as lead director O. Temple Sloan and Jackie Ward.
Oil rallies to near $54 a barrel
SIOUX FALLS, S.D. (AP) -- Oil prices staged a late rally Tuesday,
rising to near $54 a barrel after slipping earlier in the day as the dollar
strengthened.
Benchmark crude for May delivery gained 18 cents to settle at
$53.98 a barrel on the
The dollar took a hit in recent weeks as the
Oil prices rallied all last week and again on Monday as the Dow
Jones industrials jumped nearly 500 points. Investors grew more optimistic
because of a new plan to resolve the nation's banking crisis.
Better-than-expected housing news helped too.
BEIJING (AP) -- China is calling for a new global currency to
replace the dominant dollar, showing a growing assertiveness on revamping the
world economy ahead of next week's
The surprise proposal by
Airlines group predicts big industry losses
The revised loss estimate, nearly double the previous forecast
issued in December, reflects "the rapid deterioration of the global
economic conditions," said the International Air Transport Association.
Revenues are expected to fall by $62 billion, or 12 percent, to
$467 billion, the association said.
By The Associated Press
The Dow fell 115.89, or 1.5 percent, to 7,659.97.
Broader stock indicators also tumbled. The Standard & Poor's
500 index fell 16.57, or 2 percent, to 806.35, and the Nasdaq fell 39.25, or 2.5 percent, to 1,516.52.
The Russell 2000 index of smaller companies fell 16.94, or 3.9
percent, to 416.78.
Benchmark crude for May delivery gained 18 cents to settle at
$53.98 a barrel on the
In other Nymex trading, gasoline for
April delivery rose 1.45 cents to settle at $1.5026 per gallon. Heating oil
added 2.89 cents to settle at $1.4996 a gallon. Natural gas gained 5.3 cents to
settle at $4.347 per 1,000 cubic feet.
In