AP
Business Highlights
Monday March 16, 5:54 pm ET

Obama details plan to aid small businesses

WASHINGTON (AP) -- President Barack Obama on Monday offered a fresh package of aid to small businesses -- "the heart of the American economy" -- in an aggressive push to get big banks that got federal bailout money to do more lending to these struggling entrepreneurs.

With Treasury Secretary Timothy Geithner by his side, Obama said the nation has small businesses to thank for many of the new jobs, roughly 70 percent in the last decade. Geithner said as small businesses prosper, the nation does, a critical element to any economic recovery.

Obama: AIG can't justify 'outrage' of exec bonuses

WASHINGTON (AP) -- President Barack Obama declared Monday that insurance giant American International Group is in financial straits because of "recklessness and greed" and said he intends to stop it from paying out millions in executive bonuses.

Obama spoke out in the wake of reports that surfaced over the weekend saying that financially strapped American International Group Inc. was paying substantial bonuses to executives.

Stocks give up gains after 4-day rally

NEW YORK (AP) -- Wall Street broke a four-day advance Monday as a rally in financial stocks fizzled and dragged the market lower.

Analysts said the pullback didn't necessarily signal that traders were reconsidering their newfound optimism about financial stocks, a main driver behind week's advance.

In fact some viewed the measured easing in stocks as reassuring following the 10-percent surge in major indicators last week, which is more than the market has moved in some years. The Dow slipped 7.01, or 0.1 percent, to 7,216.97.

Prosecutors will seek Madoff's wife's money too

NEW YORK (AP) -- Bernard Madoff's wife could theoretically claim more than $100 million in assets -- and should forfeit it all, according to federal prosecutors.

The move by prosecutors seeks the court's help in recovering $22 million in Madoff properties, all of which are solely in Ruth Madoff's name except for one $3 million property. It also seeks $62 million in cash and securities in her name, $10 million in furnishings in the properties and $10 million for a yacht and other boats.

Madoff, 70, traded his $7 million Manhattan penthouse for a federal lockup on Thursday, immediately after he described how he created a two-decade Ponzi scheme which paid off early investors with proceeds from new investors.

Industrial output drops in February

WASHINGTON (AP) -- The nation's industrial output fell for the fourth straight month in February, with factories operating at their lowest level in six decades of record keeping. Analysts forecast more production cuts to come as companies are battered by recessions at home and abroad.

The Federal Reserve reported Monday that industrial output dropped by 1.4 percent last month, slightly larger than the 1.2 percent decline economists had expected.

The weakness included a 0.7 percent fall in manufacturing output, which pushed the operating rate at the nation's factories down to 67.4 percent of capacity last month, the lowest level on records that go back to 1948.

Homebuilder sentiment index unchanged in March

LOS ANGELES (AP) -- A key gauge of homebuilders' confidence remained near historic lows in March, as builders saw a drop in prospective homebuyers visiting model homes amid rising job losses and economic fears, according to a survey released Monday.

The National Association of Home Builders/Wells Fargo housing market index stood at nine, one point off the all-time low hit in January.

The report reflects a survey of 384 residential developers nationwide, tracking builders' perceptions of market conditions.

Mortgage fraud reports up 26 percent

WASHINGTON (AP) -- A mortgage industry group says there were a record number of mortgage fraud incidents last year, and Rhode Island made its first appearance as the nation's top fraud hot spot.

The number of mortgage fraud reports among loans made last year grew 26 percent from a year earlier, says a study released Monday by the Mortgage Asset Research Institute.

The increase came as banks stepped up their scrutiny of lending practices after a tidal wave of defaults.

Citi nominates 4 new directors in board shakeup

NEW YORK (AP) -- Citigroup has nominated four new independent directors to its board in the latest move to toughen up the bank's oversight.

Citigroup's board has been widely criticized for allowing bank executives to make risky investments in the housing market and not having enough financial services experience. The new directors include two former bank CEOS and two other financial experts.

Oil rebounds as OPEC keeps supply levels steady

SIOUX FALLS, S.D. (AP) -- Oil prices rebounded from an early retreat Monday, as traders brushed aside OPEC supply-side issues and focused on higher stock prices.

Benchmark crude for April delivery gained $1.10 to settle at $47.35 a barrel on the New York Mercantile Exchange. Prices fell as low as $43.62 overnight after OPEC decided to forgo further production cuts in favor of boosting compliance with existing ones.

Barclays has strong start to '09, may sell iShares

LONDON (AP) -- Barclays PLC said Monday it has had a good start to 2009 and confirmed it has been in talks with several parties about selling iShares, its San Francisco-based asset management unit.

"Barclays businesses continue to perform well and have had a strong start to 2009," the company said, without specifying further.

Despite the upbeat statement, the bank confirmed it would was considering divestments to boost its capital reserves as well as possibly joining the government's insurance plan for bad assets.

By The Associated Press

The Dow slipped 7.01, or 0.1 percent, to 7,216.97.

The Standard & Poor's 500 index fell 2.66, or 0.4 percent, to 753.89, while the tech-heavy Nasdaq composite index fell 27.48, or 1.9 percent, to 1,404.02.

Benchmark crude for April delivery gained $1.10 to settle at $47.35 a barrel on the New York Mercantile Exchange.

In other Nymex trading, gasoline for April delivery gained 1.44 cents to settle at $1.3673 a gallon, while heating oil added 1.58 cents to settle at $1.2130 a gallon. Natural gas for April delivery lost 8.2 cents to settle at $3.850 per 1,000 cubic feet.

In London, Brent prices lost 95 cents to settle at $43.98 on the ICE Futures exchange.