INO.com News - AP Financial NewsBrief at 3:38 a.m. EDT (apnews)

AP Financial NewsBrief at 3:38 a.m. EDT

Treasury asks for control of derivatives market

WASHINGTON (AP) _ The Obama administration is asking Congress to extend its oversight of the financial system to include the shadowy market of derivatives, the kind of complex financial instruments that helped bring down the giant insurer AIG. In a two-page letter sent Wednesday to congressional leaders, Treasury Secretary Timothy Geithner said he wants to create a central electronic-based system that would track the buying and selling of derivatives. He also wants to ensure that financial firms selling the instruments have enough capital on hand in case they default and subject them to stringent standards of conduct and new reporting requirements.

Sony reports $1 bln annual loss, sees more red ink

TOKYO (AP) _ Sony Corp. reported a 98.9 billion yen ($1 billion) loss for the fiscal year ended March, its first annual net loss in 14 years, and projected it would lose even more money this year amid a serious slump in the global electronics market. Sony also said Thursday it is closing three plants in Japan to help turn its business around.

Obama continues push for credit card bill

ALBUQUERQUE, N.M. (AP) _ President Barack Obama is continuing to press for legislation to protect consumers by ending some credit card industry practices deemed abusive, such as sudden interest rate hikes and late fees. He has demanded that Congress send him a bill by Memorial Day.

Intel hit with $1.45 billion fine in Europe

SAN FRANCISCO (AP) _ Intel Corp. was fined a record $1.45 billion by the European Union on Wednesday for using strong-arm sales tactics in the computer chip market _ a penalty that could turn up the pressure on U.S. regulators to go after the company, too. The fine against the world's biggest chip maker represents a huge victory for Intel's Silicon Valley rival, Advanced Micro Devices Inc., or AMD, the No. 2 supplier of microprocessors to PC makers.

Obama administration to expand housing plan

WASHINGTON (AP) _ The Obama administration is expected to expand its mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a blemished credit record even if they don't qualify for other assistance. The new initiatives are expected to include ways to allow borrowers to avoid foreclosure by selling their properties or giving them back to lenders, according to people briefed on the plan who declined to be identified because it has yet to be announced.

Health insurance from Uncle Sam gets a look

WASHINGTON (AP) _ Look out Aetna, Humana and UnitedHealthcare. Senators are meeting behind closed doors to consider whether the federal government should jump into the health insurance business. The government already covers medical care for seniors, disabled people, poor families and many children. But coverage in those programs is restricted to people who meet certain qualifications, including age and income.

Asian markets tumble amid fears about US consumer

HONG KONG (AP) _ Asian stock markets tumbled Thursday as signs of distress among U.S. consumers dashed hopes for a faster end to the worst global economic slump in generations. Every major market was hit by sharp losses, with Japan and Hong Kong indexes down around 3 percent, as an aggressive nine-week rally that's lifted shares from Asia to the U.S. 30 percent or more started to reverse course.

Oil hovers below $58 as US recovery hopes wane

SINGAPORE (AP) _ Oil prices hovered near $58 a barrel Thursday in Asia as weak U.S. retail sales and housing figures dampened investor optimism about a fledgling economic turnaround. Benchmark crude for June delivery was down 35 cents to $57.67 a barrel midday in Singapore, in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract fell 83 cents to settle at $58.02.

Chinese imports could bring GM political troubles

DETROIT (AP) _ As thousands of General Motors workers await word on more U.S. plant closures, reports that the company plans to import Chinese-made vehicles to the U.S. have created a political problem for the automaker and the White House. The reports, which GM will neither confirm nor deny, could mean trouble because GM is supported by $15.4 billion in U.S. government loans, largely due to the Obama administration's desire to preserve the company's 90,000 U.S. jobs.

Retail sales dip raises worries about recovery

WASHINGTON (AP) _ Retail sales fell in April for a second straight month, dashing hopes that consumer spending was starting to revive and would help end the recession. Economists said families who are worried about layoffs and unpaid job furloughs are saving more and spending less, delaying the start of a sustained recovery.

Report: SEC may charge Angelo Mozilo with fraud

WASHINGTON (AP) _ The staff of the Securities and Exchange Commission has decided to recommend that the agency bring civil fraud charges against Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial Corp., according to a published report Wednesday. The SEC staff sent a Wells notice to Mozilo a few weeks ago informing him of possible charges, The Wall Street Journal reported online, citing unnamed people familiar with the investigation. The report said the charges include illegal insider trading and failing to disclose significant information to Countrywide shareholders.

FDA approves UCB drug for rheumatoid arthritis

WASHINGTON (AP) _ Belgian drugmaker UCB said Wednesday it received federal approval for an injectable drug to treat arthritis, entering a competitive market dominated by some of the largest U.S. pharmaceutical companies. The Food and Drug Administration approved the drug Cimzia for patients with moderate to severe rheumatoid arthritis. The injectable medication was previously approved to treat gastrointestinal Crohn's disease last April.

Trustee: Madoff firm was family's piggy bank

NEW YORK (AP) _ The credit card bill is a 30-page study in conspicuous consumption. A quick scan shows a restaurant charge of more than $2,800, $2,000 in spending at a Parisian boutique and $441 at a gourmet bagel shop. There was $8,400 for one night at a hotel in Santa Monica and another $5,000 at the Montauk Yacht Club. The total amount due: more than $100,000.

US lawmakers question AIG plan, future

WASHINGTON (AP) _ The government-installed head of AIG told Congress Wednesday the insurance giant is making progress toward repaying U.S. taxpayers by selling many of its foreign assets, but lawmakers questioned whether the plan makes sense and demanded details. American International Group Inc. Chief Executive Edward Liddy said the company has reduced, but not eliminated, the risk its failure could pose to the global economy despite getting more than $180 billion in federal bailout aid.

RealtyTrac: April foreclosures rise 32 percent

MIAMI (AP) _ The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday. Ohio was in the top 10. More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, Calif.-based foreclosure listing firm began its report in January 2005.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.