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Major makeover of Wall Street regulations passes House
WASHINGTON (AP) _ The House passed the most ambitious restructuring of federal financial regulations since the New Deal on Friday, aiming to head off any replay of last year's Wall Street failures that plunged the nation deep into recession.
The sprawling legislation would give the government new powers to break up companies that threaten the economy, create a new agency to oversee consumer banking transactions and shine a light into shadow financial markets that have escaped the oversight of regulators.
The vote was a party-line 223-202. No Republicans voted for the bill; 27 Democrats voted against it.
While a victory for the administration, the legislation dilutes some of President Barack Obama's recommendations, carving out exceptions to some of its toughest provisions. The burden now shifts to the Senate, which is not expected to act on its version of a regulatory overhaul until early next year.
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Treasury pay czar limits pay at automakers, banks
WASHINGTON (AP) _ The Obama administration's pay czar is limiting the cash compensation for executives at companies that received the largest taxpayer bailouts to $500,000.
The 25th through the 100th top earners at Citigroup, GMAC, American International Group and General Motors also must take more than half their compensation in stock, and at least half must be delayed for three or more years, said Kenneth Feinberg, the Treasury Department's Special Master for Executive Compensation.
About 12 executives were granted exemptions to the $500,000 cash cap.
The rules will affect many workers' year-end bonuses and stock grants, Feinberg said. They also will serve as a starting point for negotiations next year over pay packages for 2010.
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Stronger retail sales and sentiment boost stocks
NEW YORK (AP) _ Stocks mostly rose Friday on signs that consumers and businesses are feeling more confident about the economy.
The Commerce Department said retail sales rose 1.3 percent in November, more than double the increase analysts had expected and better than the 1.1 percent rise in October.
The report boosted hopes that consumers are starting to feel more comfortable opening their wallets after months of building up their savings. A recovery in consumer spending, a major component of U.S. economic activity, is seen as one of the key elements to sustained growth.
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Oil below $70 for first time since October
NEW YORK (AP) _ A nine-month rally in oil prices appeared to falter as a gradual sell-off that began in late October gained momentum.