Business Briefs: Credit card changes seen

Oklahoman Published: May 1, 2009
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Credit card changes seen
WASHINGTON — Riding a crest of populist anger, the House has cleared a bill to rein in credit card practices and eliminate sudden increases in interest rates and late fees that have entangled millions of consumers. The legislation passed Thursday by a bipartisan vote of 357-70 and follows lobbying by President Barack Obama and members of his administration. The measure would prohibit so-called double-cycle billing and retroactive rate hikes and would prevent companies from giving credit cards to anyone under 18. If they become law, the new measures won’t take effect for a year, except for a requirement that customers get 45 days’ notice before their interest rates are increased. That would take effect in 90 days.

Trading surge draws query
KENILWORTH, N.J. — A suspicious surge in trading of Schering-Plough Corp. sales just before news of its merger deal with fellow drugmaker Merck & Co. is being investigated by federal regulators, according to a published report. The Securities and Exchange Commission is looking at whether any trades were made by people with inside knowledge about the merger talks, unidentified people familiar with the situation told The Wall Street Journal on Thursday. On March 6, the Friday before the deal was announced, Schering-Plough shares rose 8 percent and the volume of shares exchanged jumped to 34.1 million, unusually heavy trading for the mid-tier pharmaceutical company. That level was more than double the average trading over the previous four days.

Teen clothier plans cuts
NEW YORK — Teen-oriented clothing chain Abercrombie & Fitch Co. said Thursday it is in the process of cutting its headquarters staff by about 9 percent to save money. Spokesman Eric Cerny confirmed that the company is cutting about 170 positions at its 2,000-strong Columbus, Ohio, headquarters. Abercrombie has kept its relatively high prices as competitors have slashed theirs. In 2008, profit fell 43 percent to $272.3 million while sales fell 6 percent to $3.54 billion.

Radar system could get help
WASHINGTON — Transportation Secretary Ray LaHood said Thursday he thinks the Obama administration will seek financial aid for airlines to pay for equipment onboard planes that will be needed to move to a satellite-based air traffic control system. LaHood said he expects the White House to "rally some dollars” in response to a request from airline industry officials who met with the administration’s top economic adviser, Lawrence Summers. NextGen is the Federal Aviation Administration’s plan to move from today’s radar-based air traffic control system to a satellite-based system using GPS technology. The aim of new system is to make aviation more efficient, cutting travel times and thereby reducing fuel use and lowering greenhouse gas emissions.

2 states hook salmon aid
WASHINGTON — The Commerce Department released $53 million to Oregon and California on Thursday to help West Coast salmon fishermen after the third fishery failure in four years. Commerce Secretary Gary Locke declared the latest disaster in a letter to the governors of the two states.

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