BUSINESS BRIEFS: AIG reduced its U.S. debt

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Published: November 8, 2008

Nation

AIG reduces Its U.S. debt

CHARLOTTE, N.C. — American International Group Inc. reduced the amount it owes the U.S. government by another $2.3 billion as the insurer continues to use the Federal Reserve’s new commercial-paper-funding program. The updated figures come as reports circulated Friday that New York-based AIG may receive less stringent loans terms.

Neel Kashkari

Buying other banks is OK’d

NEW YORK — The Treasury official overseeing the government’s $700 billion financial bailout plan on Friday defended banks that want to use federal money to buy competitors. The Treasury doesn’t want to "micromanage” banks that get capital infusions under the bailout, Assistant Treasury Secretary Neel Kashkari said at the Wharton Finance Conference in New York.

Grocer sets rollbacks

ROCHESTER, N.Y. — Wegmans Food Markets Inc., a stylish grocery store chain with 72 outlets in five states, is rolling back prices on many high-turnover foods by 10 percent to 30 percent as the economy weakens. The 93-year-old, family owned business credited with helping pioneer "one-stop shopping” said lower price tags appearing this week on hundreds of grocery items will save an average family of shoppers as much as $40 to $60 a month.

U.S. rig count increases by 21

HOUSTON — The number of rigs actively exploring for oil and natural gas in the United States increased by 21 this week to 1,992. Of the rigs running nationwide, 1,539 were exploring for natural gas and 442 for oil, Houston-based Baker Hughes Inc. reported Friday. Eleven were listed as miscellaneous. A year ago, the rig count stood at 1,714.

Lender reduces loan limits

WASHINGTON — People looking to buy more expensive homes next year will have fewer options to find financing because Fannie Mae and Freddie Mac will have lower limits on the size of loans they can buy. The changes, effective Jan. 1, will lower the limit in high-priced real estate markets to $625,500 down from $729,950. Consumers who need to take out home loans above that amount typically pay higher interest rates, and that can price some would-be buyers out of the market.

Airlines show improvement

ATLANTA — U.S. airlines’ on-time performance and baggage handling improved in September, though the carriers overall posted a higher rate of domestic cancellations compared to the same month a year ago, the Transportation Department said Friday. Delta Air Lines Inc.’s regional subsidiary, Comair, had the worst on-time performance in September, while Hawaiian Airlines had the best.

No comment from Chrysler

NEW YORK — Chrysler says it remains focused on returning to profitability and won’t comment on statements made by General Motors that the automakers’ takeover talks have been suspended. Chrysler LLC Chairman and Chief Executive Bob Nardelli says the company doesn’t comment on its private business meetings, but will continue to explore potential strategic alliances and partnerships.

From Wire Reports