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Good news raises hopes recovery won't fizzle
WASHINGTON (AP) _ A flurry of good news this week _ including falling jobless claims, stronger consumer spending and higher new-home sales _ suggests the economic rebound, modest though it is, might be here to stay.
The number of newly laid-off workers filing applications for unemployment aid fell by 35,000 last week to 466,000, the Labor Department said _ the fewest new filings since September of last year.
Another report showed that Americans stepped up their shopping in October in the best showing since August.
Meanwhile, sales of new homes rose last month to the highest level in more than a year.
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AIG resolves all legal disputes with Greenberg
NEW YORK (AP) _ American International Group Inc. has agreed to settle all legal disputes with its former chairman Maurice "Hank" Greenberg, the company said late Wednesday.
AIG also settled all its legal disputes with former Chief Financial Officer Howard I. Smith. AIG, which is owned by U.S. taxpayers, said it will pay up to $150 million in past legal costs for Greenberg and Smith.
AIG has said that a Greenberg-controlled investment firm owed it $4.3 billion to cover stock taken from a retirement fund.
AIG had also claimed that Greenberg and Smith owe part of the $1.6 billion AIG has paid to settle a range of issues with regulators including the Securities and Exchange Commission, Justice Department and New York Attorney General.
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Stocks rise following drop in jobless claims
NEW YORK (AP) _ Stocks climbed Wednesday following a drop in weekly unemployment claims to the lowest level of the year and a rise in new home sales.
The market's gains were modest on light trading volume ahead of the Thanksgiving holiday.
The government said new claims for unemployment insurance fell by 35,000 last week to 466,000. That's the fewest claims since September last year, and better than the 500,000 that economists had expected.
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Fed tightens conflict of interest rules
WASHINGTON (AP) _ The Federal Reserve on Wednesday tightened the conflict of interest restrictions governing the boards of directors of its 12 regional banks.
The new rules were passed to deal with potential conflicts such as one that involved Stephen Friedman, a former chairman of Goldman Sachs Group Inc. The requirements take effect immediately and spell out the obligations of directors with ties to financial institutions that change status while the official is serving on a Fed regional board.
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Toyota to replace gas pedals on 4 million vehicles