On Monday October 25, 2010, 6:08 pm EDT
Fed throws its weight into
foreclosure probe
WASHINGTON (AP) -- Raising
pressure on banks, the Federal Reserve is wading into the investigation of
whether mortgage lenders cut corners and used flawed documents to foreclose on
homes.
Major banks are already
under investigation by state officials with subpoena power, who could force
them to detail how they handled hundreds of thousands of foreclosure cases.
Federal Reserve Chairman
Ben Bernanke added weight to those efforts Monday by saying the central bank
would look "intensively" at policies and procedures that might have
allowed banks to seize homes improperly.
Home sales up in Sept. but
more troubles ahead
WASHINGTON (AP) -- Sales of
previously occupied homes rose last month after the worst summer for the
housing market in more than a decade. And fears over flawed foreclosure
documents could keep buyers on the sidelines in the final months of the year.
Sales grew 10 percent in
September to a seasonally adjusted annual rate of 4.53 million, the National
Association of Realtors said Monday.
Home sales have declined
37.5 percent from their peak annual rate of 7.25 million in September 2005.
They have risen from July's rate of 3.84 million, which was the lowest in 15
years.
Most experts expect roughly
5 million homes to be sold through the entire year. That would be in line with
last year's totals and just above sales for 2008, the worst since 1997.
Focus on global currency pact
turns to enforcement
SEOUL, South Korea (AP) --
Facing the risk of a dangerous trade war, top finance officials from the
world's leading rich and developing nations looked each other in the eye and
vowed they wouldn't use their currencies as economic weapons to boost exports.
The agreement that the
members of the Group of 20 reached the past weekend in South Korea, though
vague on enforcement and long on promises, was hailed Monday by officials and
analysts as a step forward in defusing tensions.
Still, it could turn out to
be nothing more than a symbolic handshake unless the disparate forum that has
become the board of directors for the global economy after the 2008 financial
crisis can act on its words and build a viable enforcement mechanism.
Stocks extend gains as
dollar falls
NEW YORK (AP) -- Stocks
rose moderately Monday on growing expectations that the Federal Reserve will
take steps to boost the economy -- and possibly send inflation climbing as
well.
A falling dollar that
contributed to a jump in commodity prices also helped push the Dow Jones
industrial average up 31 points to its highest close since late April.
Traders are widely
expecting the Fed to expand its program to buy bonds as a way to stimulate the
economy. That would push bond yields down and, in turn, would make stocks a
more attractive investment.
BP CEO hits back at media
and politicians
LONDON (AP) -- BP Chief
Executive Bob Dudley accused some politicians and the media on Monday of being
too hasty to pin all the blame on his company for the devastating Gulf of
Mexico spill.
In his first major public
speech since taking the top job, Dudley also said BP would not pull out of the
United States. The U.S. needs a company with BP's resources to meet its vast
energy demands, he said, while emphasizing the need for deep-water drilling.
Dudley delivered a speech
whose mood hovered between firm and penitent, seeking to make clear that BP was
learning every lesson possible from the disaster. He stressed that he also has
met with experts from other hazardous industries, including the nuclear and
chemical industries, as part of the company's focus on improving safety.
CommScope in talks with
Carlyle on $2.98B buyout
NEW YORK (AP) -- CommScope
Inc. is talking to asset management firm Carlyle Group about being taken
private in a deal valued at about $2.98 billion.
The network infrastructure
company said Monday that Carlyle Group would pay $31.50 per share in cash, a 36
percent premium over its closing price Friday. CommScope currently has 94.7
million outstanding shares, according to Thomson Reuters.
Shares of CommScope jumped
more than 30 percent.
AIG Chief diagnosed with
cancer
NEW YORK (AP) -- American
International Group Inc. said Monday that its president and chief executive
officer, Robert Benmosche, has been diagnosed with cancer.
The insurer said Benmosche
is undergoing aggressive chemotherapy. He said in a statement his long-term
prognosis is good.
As bedbugs creep out NYC,
tourists crawl away
NEW YORK (AP) -- New York
City's bedbugs have climbed out of bed and marched into landmarks like the
Empire State Building, Bloomingdale's and Lincoln Center, causing fresh anxiety
among tourists who are canceling Big Apple vacations planned for the height of
the holiday season.
Some travelers who had
arranged trips to New York say they are creeped out about staying in hotels and
visiting attractions as new reports of bedbugs seem to pop up every few days.
And officials in Mayor Michael Bloomberg's administration are concerned about
the effect on the city's image and $30 billion tourism industry.
US newspaper circulation
down, decline rate slows
NEW YORK (AP) -- U.S.
newspaper circulation fell over the past six months at the slowest rate in two
years.
Figures released Monday by
the Audit Bureau of Circulations show that while circulation is no longer in
free fall, spending on newspapers is not picking up the way it has for many
other consumer goods coming out of the Great Recession.
Several trends factor in
the decline. Free news on the Web is a big reason. Publishers also have been
looking to offset reductions in advertising revenue by raising newsstand and
subscription prices, losing some paying customers in the process. And some
newspapers have reduced delivery to less profitable areas, figuring the cost of
trucking newspapers far afield doesn't pay off in extra advertising dollars.
A Walkman Obit: Remembering
the portable player
NEW YORK (AP) -- The
Walkman, the Sony cassette device that forever changed music listening before
becoming outdated by digital MP3 players and iPods, has died. It was 31 years
old.
Sony announced Monday that
it has ceased production of the classic, cassette tape Walkman in Japan,
effectively sounding the death knell of the once iconic, now obsolete device.
The Walkman is survived by the
Discman (still clinging to life) and ironic music listeners who think using a
Walkman in this day-and-age is charmingly out-of-touch.
It will continue to be
produced in China and distributed in the U.S., Europe and some Asian countries.
Digital Walkmans are also being made with models that display lyrics and have
improved digital noise-canceling technology.
By The Associated Press
For the second time in the
past week, the Dow Jones industrial average eclipsed its highest closing level
this year only to quickly pullback. It closed at 11,205.03 on April 26. The
average rose 31.49, or 0.3 percent, to 11,164.05. The broader Standard and
Poor's 500 index rose 2.54, or 0.2 percent, to 1,185.62, while the
technology-focused Nasdaq composite index rose 11.46, or 0.5 percent, to
2,490.85.
Benchmark crude rose 83
cents to settle at $82.52 a barrel on the New York Mercantile Exchange.
Natural gas for November
delivery lost 1.5 cents to settle at $3.317 per 1,000 cubic feet on the Nymex.
In other energy trading,
heating oil added 0.34 cent to settle at $2.2550 per gallon, and gasoline
gained 1.35 cents to settle at $2.0773 a gallon.
In London Brent crude rose
58 cents to settle at $83.54 on the ICE Futures exchange.