BUSINESS BRIEFS
Bernanke touts progress in battling financial crisis
Advertiser News Services
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WASHINGTON — Federal Reserve Chairman Ben Bernanke told Congress yesterday that a flurry of radical programs aimed at busting through debilitating credit clogs are showing promise and pledged to keep Americans better informed about efforts to battle the worst financial crisis since the 1930s.
While acknowledging that measuring the impact of the Fed's programs is complicated because many factors affect market conditions, Bernanke said the central bank was encouraged by feedback from Wall Street and others.
Specifically, a Fed program to buy mounds of "commercial paper" has helped to relieve strains for many companies that rely on this crucial short-term financing to bankroll everyday expenses like payrolls and supplies, Bernanke said.
PEANUT FIRM CHIEF CALLED TO HEARING
WASHINGTON — A congressional committee issued a subpoena yesterday for the top executive of a small company that allegedly shipped the tainted peanut products responsible for a national salmonella outbreak.The House Energy and Commerce Committee voted to compel Peanut Corp. of America President Stewart Parnell to appear at a hearing yesterday, as a wide-ranging investigation focuses on who was responsible for an outbreak that has sickened at least 600 people and may have contributed to eight deaths.
Rep. Bart Stupak, D-Mich., chairman of the committee's investigations panel, says he wants know how Peanut Corp. managed to sell allegedly tainted goods month after month without triggering action by state and federal health authorities.
PROMOTER, TICKET AGENT PLAN MERGER
LOS ANGELES — Concert promoter Live Nation Inc. and ticketing giant Ticketmaster Entertainment Inc. confirmed their merger plans yesterday and got right to work addressing antitrust concerns that have taken center stage.Ticketmaster Chairman Barry Diller, to be chairman of the new company — which would be called Live Nation Entertainment — sought to dispel the notion that the deal would lead to higher ticket prices.
Under the deal, Ticketmaster shareholders would receive 1.384 shares of Live Nation stock for each share of Ticketmaster they hold. Ticketmaster shareholders would own 50.01 percent of the new company, while Live Nation shareholders would have 49.99 percent. Live Nation Chief Executive Michael Rapino would be the new company's CEO.
GM TO CUT 10,000 ADDITIONAL JOBS
NEW YORK — General Motors Corp. is planning to slash another 10,000 salaried jobs this year, saying the cuts are unavoidable with a government restructuring deadline looming and industrywide sales in one of the worst downturns in history.The Detroit-based automaker said yesterday it will reduce its total number of white-collar workers by 14 percent to 63,000. About 3,400, or 12 percent, of GM's 29,500 salaried U.S. jobs will be eliminated. Most of the company's remaining salaried employees will have their wages cut.
