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AP Business NewsBrief at 12:51 p.m. EST
(AP Online Via Acquire Media NewsEdge) Wall Street gains as GMAC gets financingNEW YORK (AP) _ Wall Street showed more signs of stability Tuesday after Washington's latest lifeline to the auto industry bolstered hopes that the government will keep taking whatever steps are necessary to cut short the recession. Investors were comforted after General Motors Corp.'s troubled financing arm received $5 billion of financing. The Treasury Department said late Monday it would provide the money to GMAC Financial Services LLC from the $700 billion bank rescue program.
GM offers 0 pct financing in big sales pushNEW YORK (AP) _ General Motors Corp. said Tuesday it will offer financing as low as zero percent over the next week for several 2008 and 2009 models as the automaker makes a big year-end sales push. The news comes after its financing arm, GMAC Financial Services LLC, agreed to take a $5 billion bailout package from the Treasury Department. Mark LaNeve, GM's vice president for GM North America vehicle sales, service and marketing, said GMAC's approval to become a bank holding company and subsequently qualify for the Treasury funding were crucial steps to affording the new financing offers.
December consumer confidence drops to all-time lowNEW YORK (AP) _ Consumer confidence hit an all-time low in December, dropping unexpectedly in the face of layoffs and deteriorating markets for housing, stocks and other investments. The Conference Board's Consumer Confidence Index fell to 38 in December from a revised 44.7 in November. Economists surveyed by Thomson Reuters had expected the index to rise incrementally to 45.
Home prices post 18 percent annual drop in OctoberNEW YORK (AP) _ Home prices dropped by the sharpest annual rate on record in October and there are no signs the housing pain is over, according to a closely watched index released Tuesday. The Standard & Poor's/Case-Shiller 20-city housing index fell by a record 18 percent from October last year, the largest drop since its inception in 2000. The 10-city index tumbled 19.1 percent, its biggest decline in its 21-year history.
GMAC receives $5B in bailout fundsWASHINGTON (AP) _ The Treasury Department said that it will provide $5 billion to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., in a move that's expected to stave off a bankruptcy protection filing at the company but also severely limit GM's control over it. In exchange for the slice of the $700 billion bank rescue package, the government will receive preferred shares that pay an 8 percent dividend and warrants to purchase additional shares in return for the money, the department said.
Ecomomic news drowns out geopolitics in oil marketCOLUMBUS, Ohio (AP) _ Oil prices fell Tuesday as consumer confidence in the U.S. hit an all-time low in December and home prices dropped sharply, with few signs that the real estate market has hit bottom. Crude prices had risen for the first time in a week Monday with the armed conflict between Israel and Palestinian militants entering a third day. Israel on Tuesday said it might suspend its Gaza offensive to give Hamas militants an opening to halt cross-border rocket fire.
SEC's enforcement accountant to leave next monthWASHINGTON (AP) _ The Securities and Exchange Commission says the top accountant in its enforcement branch is leaving the agency for a private sector job next month. Susan Markel, chief accountant in the agency's division of enforcement, is taking a job in the corporate investigations practice of AlixPartners LLP, a business advisory firm. Markel has been at the SEC since 1994, working on the agency's inquiries into Xerox Corp., Cendant, WorldCom and Cardinal Health Inc.
Madoff liquidation trustee receives $28M for costsNEW YORK (AP) _ A U.S. Bankruptcy Court judge on Tuesday approved the transfer of $28.1 million to cover expenses tied to the liquidation of Bernard Madoff's investment firm. Madoff is accused of running an elaborate Ponzi scheme that duped investors ranging from individuals to charities to large banks out of potentially $50 billion.
Japan auto sales plunge as young lose interestTOKYO (AP) _ To get around the city, Yutaka Makino hops on his skateboard or rides commuter trains. Does he dream of the day when he has his own car? Not a chance. Like many Japanese of his generation, the 28-year-old musician and part-time maintenance worker says owning a car is more trouble than it's worth, especially in a congested city where monthly parking runs as much as 30,000 yen ($330), and gas costs $3.50 a gallon (about 100 yen a liter).
3 private investors seek to purchase IndyMacWASHINGTON _ A trio of private investors _ J.C. Flowers & Co., Dune Capital Management and Paulson & Co. _ have teamed up in an effort to buy failed thrift IndyMac, a person familiar with the deal said Monday. The two private-equity firms and hedge-fund Paulson have applied for a federal holding company charter, according to the person, who asked not to be named because the deal has not been completed.
Copyright ? 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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