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Business news briefs for 08/21/10
Saturday, August 21, 2010
Investors' pessimism pushes markets lower

Stocks closed moderately lower Friday as investors' pessimistic view of the economy deepened. The Dow fell 57.59 to 10,213.62. The Standard & Poor's 500 index fell 3.94 to 1,071.69, and the Nasdaq composite index rose 0.81 to 2,179.76. For the week, the Dow fell 0.9 percent, while the S&P 500 index fell 0.7 percent and the Nasdaq rose 0.2 percent. The indexes seesawed through the week as investors shuttled between optimism and pessimism about the economy.

Cuomo subpoenas AIG in fraud probe

New York Attorney General Andrew Cuomo has subpoenaed American International Group Inc. as part of a fraud investigation focusing on life insurers' retention of death benefits, a spokesman for his office said. Lincoln National Corp., Aetna Inc., CNO Financial Group Inc. and Principal Financial Group Inc. also were ordered to turn over records, said Richard Bamberger, the spokesman. Mr. Cuomo is widening a probe after saying on July 29 that he subpoenaed MetLife Inc. and Prudential Financial Inc. following reports that more than 100 carriers earn investment income on $28 billion owed to life-insurance beneficiaries.

Gasoline prices could decline 10 to 15 cents

Americans can expect gasoline prices to drop as school buses start rolling through neighborhoods across the country. Over the next month, motorists could see prices fall 10 cents to 15 cents a gallon unless there's a sudden increase in oil prices and in investors' confidence in the global economy, predicted Tom Kloza, chief oil analyst at Oil Price Information Service. Oil prices have dropped about $7 per barrel over the past two weeks as economic data signal a slowing economic recovery.

Wabtec completes Bach-Simpson deal

Wabtec Corp., which makes control systems and other technologies for trains and rail systems, said Friday it completed its roughly $13 million acquisition of Bach-Simpson Corp., which makes data recorders and speed indicators and other electronics for trains.

Also in business ...

Calgon Carbon said its Hyde Marine subsidiary won a contract worth an estimated $19.8 million to provide ballast water treatment systems for tankers being built for an undisclosed Greek ship owner. Treating ballast water prevents the spread of harmful species from port to port. ... Regulators said Friday they have shut down two Florida banks and one in Virginia, lifting to 113 the number of U.S. bank failures this year.

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First published on August 21, 2010 at 12:00 am