PRESS DIGEST – New York Times business news – Jan 27

Jan 27 (BestGrowthStock) – The following were the top stories in
the New York Times business pages on Wednesday. Reuters has not
verified these stories and does not vouch for their accuracy.

* Weeks after rescuing the American International Group Inc
(AIG.N: ) with an $85 billion taxpayer loan in late 2008, Federal
Reserve Board officials rejected a proposal that would have
forced the insurer’s trading partners to return $30 billion in
cash that they had received from A.I.G. in the preceding
months.

* Advocates of more aggressive steps to address the
national debt failed Tuesday in their effort to create a
bipartisan commission to press for tax increases and spending
cuts, but U.S. President Barack Obama now plans to establish a
similar panel by executive order in his State of the Union
address on Wednesday.

* Toyota Motor Corp (7203.T: ), still struggling to resolve a
problem with accelerator pedals, said Tuesday it would
temporarily stop building and selling eight models, including
the popular Camry and Corolla sedans, in the American market.

* Saab, the Swedish automaker that seemed destined for the
junkyard a month ago after its owner, General Motors Co
[GM.UL], said it could not find a buyer, won a new lease on
life Tuesday when G.M. agreed to sell Saab to a tiny Dutch
maker of high-end sports cars.

* The Transportation Department announced a new rule
Tuesday that prohibits interstate commercial truckers and bus
drivers from sending text messages while they are operating
moving vehicles.

* Prosecutors in the widening insider-trading investigation
involving the Galleon Group are working to secure new witnesses
who could testify against Raj Rajaratnam, the billionaire
founder of Galleon, and others charged in the case.

* The Securities and Exchange Commission announced on
Tuesday two enforcement actions against hedge funds that had
profited by shorting stocks just before they bought shares of
the same stock in a public offering. The agency said they were
the first enforcement actions since a rule against abusive
short-selling was strengthened.

* The Internal Revenue Service said on Tuesday that it
would require large corporations to reveal basic information
about their tax transactions, a surprise move intended to root
out questionable or illegal tax shelters.

* Verizon Communications Inc (VZ.N: ) reported a
fourth-quarter loss of $653 million on Tuesday, mostly because
of costs related to layoffs, despite a 10 percent increase in
revenue.

* Yahoo Inc (YHOO.O: ) announced Tuesday its best quarterly
financial performance since it hired Carol Bartz as chief
executive a year ago.

* Adding to anxiety among publishers about the health of
the book market, the Borders Group Inc (BGP.N: ) announced on
Tuesday that Ron Marshall had resigned as chief executive just
a year after he took the helm of the country’s second-largest
bookstore chain.

* Kivalina, an Inupiat Eskimo village of 400 perched on a
barrier island north of the Arctic Circle, is accusing two
dozen fuel and utility companies of helping to cause the
climate change that it says is accelerating the island’s
erosion.

* More than half of the dealers terminated by General
Motors and Chrysler last year have filed to have an arbitrator
determine whether they should be reinstated.

* Ben Bernanke’s prospects for confirmation to a second
term as chairman of the Federal Reserve advanced on Tuesday as
the Senate majority leader, Harry Reid, scheduled a crucial
vote in the process for Thursday.

* The global recovery has been more vigorous than expected,
led by 10 percent growth in China, the International Monetary
Fund said Tuesday. But the recovery in developed economies will
be weak by historical standards, with continued high
unemployment, and will probably slow next year, the fund said.

* A leading credit rating agency threatened Tuesday to
downgrade Japan’s rating unless the world’s second-largest
economy took more steps to rein in its mounting public debt.

* Home prices managed a 0.2 percent seasonally adjusted
gain in November from the previous month, according to the
Standard & Poor’s Case-Shiller Home Price Index.

* Home Depot Inc (HD.N: ), the home-improvement retailer,
said Tuesday that it was laying off 1,000 employees as it cuts
three pilot programs and cuts some support positions.

* Britain finally reported positive growth in the final
three months of 2009, government data showed Tuesday, after six
straight quarters of contraction. The data could signal an end
to the recession in Britain.

Stocks

PRESS DIGEST – New York Times business news – Jan 27