On Monday April 26, 2010, 6:10 pm EDT
Senate probe: Goldman planned to profit
from bust
WASHINGTON (AP) --
Top Goldman executives misled investors
in complex mortgage securities that became toxic, investigators for a Senate
panel allege. They point to e-mails and other Goldman documents obtained in an
18-month investigation. Excerpts from the documents were released Monday, a day
before a hearing that will bring CEO Lloyd Blankfein and other top Goldman
executives before Congress.
Caterpillar turns 1Q profit, sees
growing economy
OMAHA, Neb. (AP) -- Caterpillar Inc.,
the world's largest maker of construction and mining equipment, said Monday it
is ramping up production as the global economic recovery spurs demand for its
heavy equipment, especially in commodity-rich developing countries.
"We're in a revival. There's no
doubt about it," Chief Financial Officer Dave Burritt said. "We're
heading up, and it's driven by the emerging markets. No doubt."
The Peoria, Ill., company offered an
upbeat outlook for its business and the world economy after reporting
first-quarter earnings of $233 million on Monday, reversing last year's loss in
a quarter weighed down by layoff costs.
Strong Caterpillar results, outlook
lift stocks
The stock market ended narrowly mixed
Monday after a strong earnings report from Caterpillar Inc. overshadowed
questions about financial regulation.
The Dow Jones industrial average eked
out a gain of 1 point to 11,205.03, as broader indexes fell. Banking shares
fell as discussions pushing financial overhaul legislation continued in
Washington.
Caterpillar's results are seen as an
economic indicator. The company said economic conditions are "definitely
improving" and that orders are significantly higher than last year.
LOUISVILLE, Ky. (AP) -- Health insurer
The company also showed improvement in
its commercial segment, due to a bump in claims reserves that offset a
membership drop.
Greece still under siege despite aid
pledge
ATHENS, Greece (AP) -- Help is on the
way for debt-stricken Greece, but fears of an eventual financial disaster still
haunt the country and the rest of the 16-nation eurozone.
A bailout package of 45 billion euros
from other eurozone countries and the International Monetary Fund should see
Greece through its borrowing needs for this year. But the bailout is
complicated by German grumbling, which continued Monday, about the burden of
the bailout on its own finances.
More than that, bond markets are still
flashing warning lights that someday Greece might say it can't pay -- and
announce a restructuring or default.
Hertz agrees to buy rival Dollar
Thrifty for $1.2B
CHICAGO (AP) -- Hertz Global Holdings
Inc. said Monday it has agreed to buy rival Dollar Thrifty Automotive Group for
about $1.17 billion in cash and stock as it tries to expand its vacationer
business.
Shares of both companies soared.
The deal will give Hertz, already the
world's largest car rental company by locations, a third more sites around the
globe, boosting its total to 9,800. More importantly, it will also give Hertz's
leisure segment a much-needed boost when it assumes control of the company's
Dollar and Thrifty brands.
Court:
SAN FRANCISCO (AP) -- A sharply divided
federal appeals court on Monday exposed
In its 6-5 ruling, the 9th Circuit U.S.
Court of Appeals said the world's largest private employer will have to face
charges that it pays women less than men for the same jobs and that female
employees receive fewer promotions and have to wait longer for those promotions
than male counterparts.
US newspaper circulation falls 8.7
percent
NEW YORK (AP) -- Circulation continues
to drop severely at U.S. newspapers, though the rate of decline slowed from the
previous six-month reporting period.
Figures released Monday by the Audit
Bureau of Circulations show average weekday circulation fell 8.7 percent in the
six months that ended March 31, compared with the same period a year earlier.
Sunday circulation fell 6.5 percent.
That's a slight improvement from April
through
Even so, the top 25 newspapers in the
country showed some huge circulation losses.
Treasury announces plans for first
WASHINGTON (AP) -- The Treasury
Department said Monday that it plans to sell up to 1.5 billion shares of
The sales, which amount to about 20
percent of the government's ownership stake, could begin as soon as Monday,
according to a person familiar with the transaction. The person wasn't
authorized to speak on the record about the deal.
The government received about 7.7
billion shares, or a 27 percent ownership stake, as compensation for the
massive support it extended to the bank during the height of the financial
crisis in late 2008. Treasury said last month that it would soon begin selling
its
Mortgage fraud incidents rise 7 pct
last year
MIAMI (AP) -- Incidents of residential
mortgage fraud increased last year, a sign that scammers are still targeting
the industry despite more diligent efforts to find and report such activity.
The number of mortgage fraud reports among
loans made in 2009 grew 7 percent, a smaller increase than the 26 percent jump
seen the previous year, according to a study released Monday by the LexisNexis
Mortgage Asset Research Institute.
Since the housing boom, lenders have
tightened their underwriting standards, requiring larger down payments,
stronger credit histories and reliable proof of income. Law enforcement
agencies also have created investigative teams to fight mortgage fraud.
By The Associated Press
The Dow Jones industrial average rose
0.75, or less than 0.1 percent, to 11,205.03.
The Standard & Poor's 500 index
fell 5.23, or 0.4 percent, to 1,212.05, while the
Benchmark crude for May delivery fell
92 cents to settle at $84.20 a barrel on the New York Mercantile Exchange.
Earlier in the session, it rose as high as $85.63.
In other Nymex trading in May
contracts, heating oil fell 1.34 cents to settle at $2.2371 a gallon, and
gasoline dropped 1.22 cents to settle at $2.3409 a gallon. Natural gas added a
half penny to settle at $4.262 per 1,000 cubic feet.
In London, Brent crude gave up 42 cents
to settle at $86.83 a barrel on the ICE futures exchange.