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AP Business NewsBrief at 12:11 a.m. EDT
(AP Online Via Acquire Media NewsEdge) Battered financial industry faces more oversightWASHINGTON (AP) _ Withtype:bold,italic; the passage of the $700 billion rescue package, the financial industry will face greater congressional scrutiny in coming weeks and months. Further-reaching regulation is almost certain. Previously obscure corners of the industry now subject to few rules, such as complex derivatives and hedge funds, could face federal supervision for the first time.
Bank of America settles lawsuit over bad mortgagesSPRINGFIELD, Ill. (AP) _ Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes, the Illinois attorney general's office said Sunday. Borrowers stuck with mortgages they can't afford could see their interest rates reduced or have the loan principal cut. Some might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.
Court tilts Wachovia fight toward Wells FargoNEW YORK (AP) _ The battle for control of troubled bank Wachovia tilted toward Wells Fargo Sunday as a state appeals court blocked a lower court ruling that had favored rival bidder Citigroup. At stake is the $339 billion in Wachovia deposits and its network of more than 3,300 branches throughout the country that would solidify the winner as being in the top tier of U.S. retail banking.
Investors expect volatility as credit woes persistNEW YORK (AP) _ The world's financial markets face an uncertain and possibly volatile week as investors await details about how the Treasury will implement the government's financial rescue package _ and watch for any further fallout from the credit crisis around the globe. The markets have switched their focus to the world economy now that the $700 billion bailout plan has become law. And there's reason for their concerns _ governments across Europe are rushing to prop up failing banks. On Sunday, Germany said it would follow suit with Ireland and Greece in guaranteeing all private bank accounts.
Bank on this: bank failures will rise in next yearSAN FRANCISCO (AP) _ Here's a safe bet for uncertain times: A lot of banks won't survive the next year of upheaval despite the U.S. government's $700 billion plan to restore order to the financial industry. The biggest question is how many will perish and how they will be put out of their misery _ in outright closures by regulators scrambling to preserve the dwindling deposit insurance fund or in fire sales made under government pressure.
Europeans scramble to save failing banksSTOCKHOLM, Sweden (AP) _ Germany became the latest country to move to allay fears about the financial meltdown, enhancing a rescue plan for Hypo Real Estate AG and guaranteeing private bank accounts as European governments scrambled on their own Sunday to save failing banks. Chancellor Angela Merkel said that no citizen should fear for the safety of their investments. Hours later, her government announced a new bailout package totaling 50 billion euros ($69 billion) for Hypo Real Estate, Germany's second-biggest commercial property lender.
Ex-CEO of S&L bought by Wachovia defends recordSAN FRANCISCO (AP) _ Once hailed for running their savings-and-loan company like an endearing mom-and-pop shop, Herb and Marion Sandler are now being vilified as ruthless home lenders who helped destroy Wachovia Corp. and contributed to the financial decay that led to the U.S. government's $700 billion rescue plan to buy rotten mortgages. After deflecting the media for months, Herb Sandler defended his lending record in an interview Sunday. He also tried to make a case for why Wachovia shareholders should be demanding substantially more than the $14.8 billion that Wells Fargo & Co. has offered for the company.
German gov't, banks agree to $69B bailout for HypoBERLIN (AP) _ Germany on Sunday guaranteed all private bank accounts and negotiated a 50 billion euro ($69 billion) bailout deal for Hypo Real Estate AG as Europe's second largest economy sought to ward off financial crisis. The Finance Ministry and private banks reached a deal late Sunday to infuse an additional line of credit worth up to 15 billion euros ($21 billion) into the embattled real estate giant, expanding on an earlier 35 billion euro ($48 billion) bailout plan that would have found the government and private banks splitting the bill.
Credit crisis adds to pressures on auto dealersNEW YORK (AP) _ Hundreds of thousands of new cars and trucks that would have quickly made their way to people's driveways a year ago are now stacking up on dealer lots across the country, with potential buyers worried about whether they'll keep their jobs, be able to pay for gas, or qualify for a car loan. For auto dealers already suffering under the worst U.S. sales downturn in 15 years, the increasing cost of the credit they use to keep inventory in their showrooms means every Ford Focus and Jeep Grand Cherokee with a sale sticker in the window is chipping away at dealers' razor-thin profit margins every day and threatening to send more of them out of business.
American Airlines considers a la carte pricingFORT WORTH, Texas (AP) _ The idea of paying a single, simple fare to fly on an airliner is becoming as quaint as stewardesses in short skirts. American Airlines is about to accelerate the trend of breaking the cost of a trip into an airfare plus many smaller fees.
Copyright ? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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