AIG to sell Asian life insurer to repay
bailouts American International Group Inc. is
selling a cornerstone of its business, Asia-based life insurer AIA Group, in a
government-approved $35.5 billion deal. The sale to British insurer Prudential
PLC could reduce by nearly one-fifth the amount of federal bailout money still
invested in struggling AIG. But officials and analysts say it's not
clear whether taxpayers will eventually recoup all the money AIG drew from a
$182.5 billion rescue package the government committed to at the height of the
2008 credit crisis. In return for that package, the government got a nearly 80
percent stake in the insurer. Reports show modest but steady economic
recovery NEW YORK (AP) -- Mixed reports Monday
on manufacturing, construction and personal income and spending made clear that
the economy is enjoying modest growth even though the recovery remains fragile. Manufacturing output expanded in
February for a seventh straight month. Factory output has provided one of the
few areas of strength for the economy. Still, the growth in manufacturing
activity slowed compared with January and fell short of economists'
expectations. In addition, construction spending fell
for a third straight month in January. And though personal spending rose
slightly more than expected, Americans' incomes scarcely budged. In part, that
was because Social Security recipients didn't get their usual cost-of-living
boost. Kohn to leave Fed in June; gives Obama
opening WASHINGTON (AP) -- Kohn, the Fed's second-highest ranking
official, has played a major role in shaping the Fed's strategy in fighting the
worst financial and economic crises to hit the country since the Great
Depression. His departure will open up a third seat
on the seven-member Buyouts lift stocks to highest level
since Jan. NEW YORK (AP) -- Major stock indexes
rose to their highest levels in more than a month Monday after corporate
buyouts raised hopes about the economy. The Dow Jones industrial average rose
79 points to 10,403.79. The Standard & Poor's 500 index, the basis of many
mutual funds, erased its losses for the year. The The biggest boost for the market came
from insurer American International Group Inc., which agreed to sell its prized
Asian life insurance business to Britain's Prudential PLC. It is seen as a sign
of confidence in the economy when big businesses go ahead with takeovers. EU, Greece discuss more cuts amid
bailout reports ATHENS, Greece (AP) -- The EU's
financial affairs chief pressed Greece hard Monday to make more painful,
permanent budget cuts soon, as markets speculated that the bloc or heavyweights
France and Germany are preparing a financial lifeline to get the country out of
its debt crisis. Finance Commissioner Olli Rehn insisted
in Athens that additional measures were necessary "in the coming
days," a view he said was shared by the European Central Bank and the
International Monetary Fund. Rehn said it was up to the Payback formula for Bernard Madoff
victims upheld NEW YORK (AP) -- The victims of Bernard
Madoff's massive swindle are only owed the money they invested with his firm
and not the $64.8 billion reflected on fictitious statements, a Manhattan
bankruptcy judge ruled Monday. The written decision by U.S. Bankruptcy
Court Judge Burton Lifland rejected the victims' arguments that they had
legitimate claims based on "securities positions" listed in final
Nov. 30, 2008 statements. It upheld a "net equity" formula being used
by a trustee overseeing the liquidation and distribution of Madoff's assets. Madoff, 71, was sentenced last year to
150 years in prison for orchestrating an epic scheme that wiped out life
savings and entire charities. He admitted that he never made investments, and
instead used new investors' money to pay returns to existing ones. Dish Network 4Q profit falls, gains
subscribers Dish Network Corp., the low-cost leader
in a subscription-TV industry where growth comes from taking customers away
from competitors, lifted fourth-quarter revenue by attracting budget-conscious
customers with aggressive promotions. As a result, the nation's
second-largest satellite TV operator added 249,000 net subscribers during the
quarter while several of its cable TV rivals lost ground. The increase in
customers overshadowed a 17.5 percent drop in net income to drive shares higher
by $1.29, or 6.5 percent, to $21.26 in afternoon trading on Monday. Dish said Monday that it earned $179
million, or 40 cents per share, in the quarter compared with $217 million, or
48 cents per share, in the prior year's quarter. The results exceeded the 32
cents per share in earnings that analysts had been expecting on average,
according to Thomson Reuters. Astellas Pharma plans $3.5B takeover
bid for OSI Japanese drugmaker Astellas Pharma Inc.
said Monday it will take a $3.5 billion takeover offer for OSI Pharmaceuticals
directly to shareholders after being rebuffed several times by executives of
the U.S. biotechnology company. Astellas said it will start on Tuesday
an offer to pay $52 per share in cash for all outstanding common shares of the
OSI Pharmaceuticals Inc. stock -- a premium of more than 40 percent over
Friday's close. Shares of OSI, based in Melville, N.Y.,
soared above the offered price in Monday trading, suggesting some traders
expect the bidding will go higher. OSI shares rose $19.23, or 51.9 percent, to
close at $56.25 after rising to a 52-week high of $57 earlier in the session. Treasury sets Bank of America warrant
sale date WASHINGTON (AP) -- The Treasury
Department said Monday it will auction 272 million warrants for Bank of America
stock to recoup taxpayer money from the controversial financial bailout fund. Treasury said the auctions will take
place on Wednesday and will be divided into two classes of warrants. Warrants
are financial instruments that allow the holder to buy stock in the future at a
fixed price. Bank of America Corp. repaid the
government $45 billion in December as part of its efforts to sever ties with
the $700 billion bailout program. The auction of the warrants is taking place
because Bank of America and the Treasury Department could not agree on a price
for the warrants. High court hears ex-Enron CEO
Skilling's appeal WASHINGTON (AP) -- The Supreme Court
appeared troubled Monday by the selection of the jury that convicted former
Enron CEO Jeffrey Skilling as well as the use of a federal fraud law against
him. Several justices appeared receptive to
arguments by Skilling's lawyer that he did not have a fair trial in Houston,
Enron's hometown, following the energy company's 2001 collapse that cost
thousands of jobs and billions of dollars. Skilling was convicted in 2006 on 19
counts of conspiracy, securities fraud, insider trading and lying to auditors.
His lawyers are hoping for a new trial. Critics say the law is vague and
unfair. By The Associated Press The Dow rose 78.53, or 0.8 percent, to
10,403.79. The broader The Russell 2000 index of smaller
companies rose 14.09, or 2.2 percent, to 642.65. Crude oil fell 96 cents to settle at
$78.70 per barrel on the New York Mercantile Exchange. In other Nymex trading in April
contracts, heating oil fell 1.18 cents to settle at $2.0235 a gallon, and
gasoline lost 3.23 cents to settle at $2.1556 a gallon. Natural gas lost 13.4
cents to settle at $4.679 per 1,000 cubic feet. In London, Brent crude dropped 70 cents
to settle at $76.89 on the ICE futures exchange.