Toyoda faces lawmakers: 'I'm deeply
sorry' WASHINGTON (AP) -- The grandson of the founder of the
Japanese auto giant suggested to the House Oversight and Government Reform
Committee that his company's "priorities became confused" in a quest
for growth over the past decade at the expense of safety concerns. Toyoda told the panel he was
"absolutely confident" there was no problem with the electronics of New home sales drop 11 percent in
January, new low WASHINGTON (AP) -- Sales of new homes
plunged to a record low in January, underscoring the formidable challenges
facing the housing industry as it tries to recover from the worst slump in
decades. The Commerce Department reported
Wednesday that new home sales dropped 11.2 percent last month to a seasonally
adjusted annual sales pace of 309,000 units, the lowest level on records going
back nearly a half century. The big drop was a surprise to economists who were
expecting a 5 percent increase over December's pace. While winter storms were partly to
blame, home sales have fallen for three straight months despite sweeping
government support. Economists were already worried that an improvement in
sales in the second half of last year could falter as various government
support programs are withdrawn. Bernanke: Record-low rates still needed WASHINGTON (AP) -- In his twice-a-year report to the House
Financial Services Committee, Bernanke struck a confident tone that the
recovery should endure. But he also sought to tamp down expectations. The moderate economic growth the Fed
expects will lead to only a slow decline in the nation's nearly double-digit
unemployment rate, he said. He offered no new clues about the timing of an
interest rate increase. Most economists think it is months away. Bernanke said
rates will need to stay at exceptionally low levels for an extended period
"as the expansion matures." Stocks rebound as Bernanke sees rates
staying low NEW YORK (AP) -- Stocks rallied Wednesday and ended a
two-day slide after Bernanke sounded an upbeat note about the economy during
his semiannual report to Congress and said he still expects rates will remain
low for an extended period. Investors want to see low-cost borrowing continue
to help revive the economy. Financial stocks helped pull the Dow
Jones industrial average up 92 points to 10,374.16 after the index slid 101 on
Tuesday. GM to end DETROIT (AP) -- Heavy equipment maker Sichuan Tengzhong
Heavy Industrial Machines Co. pulled out of the deal for GM said it will continue to honor
existing GM has been trying to sell the
loss-making brand for the last year and found a suitor in Tengzhong, but
resistance from Chinese regulators created difficulties from the start. WASHINGTON (AP) -- Its chief executive, Charles Haldeman,
warned Wednesday of a "potential large wave of foreclosures" still to
come. This is a major problem for the federal
government, which seized control of Freddie and Fannie in Smaller thrift industry breaks even in
2009 WASHINGTON (AP) -- America's thrifts
posted a small profit last year after two years of losses, evidence the
industry may be stabilizing amid the economic recovery. But the industry also saw significant
consolidation as several large thrifts were combined with their parent banks.
As a result, the amount of new mortgage loans originated by thrifts dropped
last year. The Office of Thrift Supervision said
Wednesday that savings and loans earned $29 million in 2009, after reporting
net losses of $15.9 billion in 2008 and $649 million in 2007. That is the industry's first annual
profit since 2006, though it pales in comparison to the $15.8 billion profits
earned that year. SEC puts new curbs on short-selling WASHINGTON (AP) -- Federal regulators
on Wednesday imposed new curbs on the practice of short-selling, hoping to
prevent spiraling sales sprees in a stock that can stoke market turmoil. The Securities and Exchange Commission,
divided along party lines, voted 3-2 at a public meeting to adopt a new rule.
Investors and lawmakers have clamored for the agency to put such brakes on
trading moves they say worsened the market's downturn in the fall of 2008. The rule puts in a so-called circuit
breaker for stock prices, restricting short-selling of a stock that has dropped
10 percent or more for the rest of a trading session and the next one. The new
curbs take effect in about 60 days but stock exchanges have six months after
that to implement them. FBI raids NEW YORK (AP) -- The FBI raided the
U.S. headquarters of three auto parts suppliers as part of an antitrust
investigation, the agency said Wednesday. The FBI's Detroit office said agents
raided the offices of Denso Corp., Yazaki North America and Tokai Rika. All the
raids took place Tuesday evening. Justice Department spokeswoman Gina
Talamona said the department is conducting an investigation of automotive
electronics suppliers. It was unclear if other companies were involved in the
investigation. Denso spokeswoman Julie Kerr says the
search of the company's office -- which oversees Denso's operations in North
and South America and is located in Southfield, Mich. -- took place on Tuesday. By The Associated Press The Dow rose 91.75, or 0.9 percent, to
10,374.16. The advance pared the Dow's loss for the week to 28 points. The broader Standard & Poor's 500
index rose 10.64 or 1 percent, to 1,105.24, and the Benchmark crude for April delivery rose
$1.14 to settle at $80 per barrel on the Nymex. Heating oil prices for March delivery
rose 0.98 cent Wednesday to settle at $2.0421 per gallon on the New York
Mercantile Exchange. Natural gas prices gained 3.8 cents to settle at $4.816
per 1,000 cubic feet. In other Nymex trading in March
contracts, gasoline added 3.33 cents to settle at $2.0989 a gallon. In London, Brent crude gained 84 cents
to settle at $78.09 on the ICE futures exchange.