Struggling homeowners get a hand, better loans

Mortgage-servicing companies kept 225,000 U.S. homeowners in their homes last month by modifying loan terms or securing new repayment plans as foreclosures climbed to a record. The Hope Now Alliance, a coalition of servicers, counselors and investors, has helped an estimated 2.7 million borrowers avoid foreclosure since July 2007, the Washington-based group said yesterday. Mortgage modifications increased 24 percent from August through October, Hope Now said.

S&P affirms strength of UPMC revenue bonds

Standard & Poor's has assigned its AA- standard long-term rating to the Allegheny County Hospital Development Authority's $350 million series 2008C revenue bonds issued for UPMC. The ratings service also affirmed its AA- standard long-term rating and AA- underlying rating on various bonds issued for UPMC and affirmed its dual ratings of AA-/A-1+ on various UPMC bonds. The AA- rating "reflects continued business and market share growth" in Western Pennsylvania, according to Standard & Poor's.

AIG, feeling the heat, freezes pay, halts bonuses

American International Group Inc., under pressure to limit executive compensation after a U.S. bailout, froze pay and scrapped bonuses for seven top leaders and said Chief Executive Officer Edward Liddy would get a $1 salary. The insurer's next 50 highest-ranked executives will forgo pay raises through 2009, AIG said yesterday. New York Attorney General Andrew Cuomo, who demanded last week that AIG disclose compensation plans, said the insurer took a "positive step" and called on other firms to follow. AIG has received about $150 billion in government assistance, more than any other company.

Bayer to pay $97.5 million to settle kickback charges

Bayer AG will pay $97.5 million to settle government allegations that it paid kickbacks to medical suppliers to boost sales of its diabetes products. The Justice Department said yesterday that the settlement resolves an investigation into whether Bayer bribed 11 diabetic suppliers into switching patients to its products from competitors. Tarrytown, N.Y.-based Bayer Healthcare makes electronic monitors and testing strips used to measure blood sugar levels. Justice Department officials said Bayer paid Liberty Medical Supply Inc. about $2.5 million to convert patients to Bayer supplies between 1998 and 2002. The Justice Department also alleged Bayer paid $375,000 in kickbacks to 10 other diabetes equipment companies.

Also in business ...

The average price of a gallon of regular unleaded gasoline at area pumps fell 17.4 cents this week to $2.049, AAA East Central reported ... Allegheny Valley Bancorp Inc. declared a quarterly dividend of 57 cents per share and a special dividend of 21 cents per share. Both are payable Dec. 15 to shareholders of record Dec. 5 ... Cecil developer Horizon Properties Group said it has completed $107.5 million of financing for the new 730,000-square-foot Dick's Sporting Goods headquarters in Findlay. The project is set for a 2010 completition ... Lenox Group Inc., the maker of fine china, gifts and collectibles, said it filed for Chapter 11 bankruptcy protection.