Associated Press
Banks borrow more money from Fed lending program
WASHINGTON : Banks borrowed more over the past week from the Federal Reserve's emergency lending program, while Wall Street firms took a pass for the fifth week in a row. A Fed report released Thursday said commercial banks averaged $18.98 billion in daily borrowing over the past week. That compared with a daily average of $18.47 billion in the previous week. For the week ending Sunday, Wall Street firms didn't take out any loans, the fifth straight period of no action. Their borrowing, however, averaged as high as $38.1 billion a day over the course of a week in early April. The situation raised fears that other Wall Street firms might be in jeopardy.
Associated Press
Plan to salvage Alitalia includes 3,250 layoffs
A plan to salvage the profitable part of Alitalia will include 3,250 layoffs, Italy's labor minister said yesterday, as key discussions with unions on the future of the bankrupt airline continued. Maurizio Sacconi indicated that jobs would be lost both at the national carrier and at its Italian rival Air One, which is expected to be merged with Alitalia. "Those who have presented the offer estimate that out of 17,500 structurally employed by Alitalia and Air One, 14,250 should be re-employed," Sacconi told reporters.
Associated Press
30-year mortgages dip to 6.35 percent
WASHINGTON : Rates on 30-year mortgages fell for a third straight week, dropping to the lowest level since mid-July. Freddie Mac, the mortgage company, reported yesterday that 30-year, fixed-rate mortgages dipped to 6.35 percent this week, down from 6.40 percent, the previous week. It marked the third consecutive decline and left rates at the lowest level since July 17, when they stood at 6.26 percent. The 30-year mortgage, which hit a high for this year at 6.63 percent July 24, has been above 6 percent since late May as financial markets have become convinced that rising inflation pressures will keep the Federal Reserve from cutting interest rates further. Frank Nothaft, chief economist for Freddie Mac, attributed this week's decline to recent reports indicating that consumer spending might slow further.
Associated Press
