Business International

Fed gets greater powers

Treasury Secretary Henry Paulson yesterday revealed sweeping new plans for streamlining a hodgepodge of regulation faulted for permitting the US mortgage crisis to balloon into a full-blown economic threat.

Can the Paulson plan stop risky investments?

While Wall Street faces the biggest overhaul of its regulatory structure since the Great Depression, analysts are already wondering if the plan announced by Treasury Secretary Henry Paulson would help prevent the kind of risky investments that led to the near-collapse of Bear Stearns Cos.

Citigroup separates credit card business

Citigroup Inc, battling to restore profit after a record loss, will set up an independent credit card unit and overhaul consumer banking along geographical lines.

UK lenders expect 'prolonged' slump

UK banks forecast that credit market turmoil will last at least until the end of the year, twice as long as they predicted three months ago, according to a survey by the Confederation of British Industry.

Stocks drop in Europe, Asia; US futures decline

Stocks fell in Europe and Asia, capping the worst quarter for the MSCI World Index since 2002, as concern deepened that losses in the credit markets will hurt economic and profit growth. US index futures retreated.

IN BRIEF (Page 16)

Business International

Financial firms, miners lead European stock rally

European stocks rose, led by financial firms and mining companies, on prospects for improved earnings. US index futures gained, while Asian shares fell for the first time in five days.

Central bankers make ready extra funds

The central banks of the United Kingdom and Switzerland promised extra funds to ease pressure on interbank lending rates yesterday while the European Central Bank said it is ready to add extra liquidity as needed.

Iraq blast lifts crude over $107

Oil jumped above $107 yesterday after saboteurs blew up one of Iraq's two main export pipelines.

Competition could cost Motorola dear

Motorola Inc, the biggest US mobile-phone maker, may find its money-losing handset unit is worth as little as $3.8 billion, a tenth of its value in 2006, now that Garmin Ltd and Hewlett-Packard Co are entering the market.