US-BUSINESS Summary
Stocks dip on revised GDP; Fed's view curbs loss
NEW YORK - U.S. stocks fell on Tuesday on lackluster economic data in a session marked by low volume and choppy trading, but losses eased after the Federal Reserve raised its expectations for growth in 2010. Stocks fell early in the session as revised government data on gross domestic product showed the U.S. economy grew at a slower-than-expected pace in the third quarter.
Aware of policy risks, Fed sees firmer growth
WASHINGTON - Federal Reserve officials are increasingly confident the U.S. economic recovery will be durable, but do not see employment or inflation picking up soon, minutes from their November meeting showed. Senior Fed officials, meeting on November 3-4, also expressed concern their plans to keep interest rates low for a prolonged period could have negative repercussions, including possible speculative activity in financial markets.
AIG board OKs CEO pay, as Benmosche agrees to stay
NEW YORK - American International Group Inc <AIG.N>, the insurer that received billions of dollars in a U.S. bailout, has been authorized by its board to pay Chief Executive Robert Benmosche's $7 million compensation, after it laid to rest concerns that he may quit the post. The approval, which the company announced on Tuesday, means that AIG can pay Benmosche an already agreed annual salary of $3 million in cash and $4 million in fully-vested AIG stock.
U.S. third-quarter economic growth revised down
WASHINGTON - The U.S. economy grew more slowly than first thought in the third quarter, but a fifth month of gains in house prices in September and an improvement in consumer morale signaled the anemic recovery was intact. In its second estimate of third quarter gross domestic product published on Tuesday, the Commerce Department said the economy expanded at a 2.8 percent annual rate, probably ending the most painful U.S. recession in 70 years.
Privately held Facebook sets up dual-class stock
SAN FRANCISCO - Facebook has established a dual-class stock structure to ensure voting control by existing owners, but has no plans to become a public company, it said on Tuesday. "We did introduce a dual class stock structure because existing shareholders wanted to maintain control over voting on certain issues, to help ensure the company can continue to focus on the long term to build a great business," said Larry Yu, a Facebook spokesman. "Facebook has no plans to go public at this time."
Microsoft CFO to leave, look for bigger job
NEW YORK - Microsoft Corp's <MSFT.O> Chief Financial Officer Chris Liddell is to leave the company at the end of the year, indicating that he is looking for a bigger job at another company. Liddell, 51, has been CFO at the world's largest software company since May 2005, after joining from paper and packaging maker International Paper Co <IP.N>, where he was also CFO.
J Crew full-price sales spur profit beat, shares up
SAN FRANCISCO - J Crew Group Inc <JCG.N> reported a quarterly net profit far above Wall Street estimates due to strong autumn sales of clothing and expanded profit margins from depressed year-ago levels. The shares of the upscale apparel retailer rose 7 percent in after-hours trading.
FDIC fund falls into red, Bair urges lending
WASHINGTON - The government-run fund that safeguards U.S. bank deposits tumbled to a negative balance of $8.2 billion in the third quarter, as the number of problem banks surged by a third to 552. It was the first shortfall since 1992 when the Federal Deposit Insurance Corp was dealing with the failure of hundreds of small savings institutions known as thrifts.
Rajaratnam denies insider charges, blasts wiretaps
NEW YORK - Galleon Group hedge fund founder Raj Rajaratnam attacked a U.S. regulator's lawsuit on Tuesday, denying insider trading charges and saying government wiretaps violated his constitutional rights. The Sri Lankan-born billionaire is the most prominent of 20 people who face criminal or civil charges in the largest U.S. hedge fund insider trading case on record and Wall Street's first insider trading probe involving court-approved wiretaps.
U.S. court bars promotion of stock sale tax scheme
WASHINGTON - A federal judge has barred the promotion of a scheme designed to help clients evade taxes on more than $1.25 billion in asset sales, the U.S. government said on Tuesday. The U.S. District Court for the Northern District of California issued an injunction on Monday to stop Charles Cathcart from promoting the "90 percent loan scheme" that helped customers avoid tax on sales of stock and other securities.