LOS ANGELES — Countrywide Financial Corp., the nation's largest mortgage lender, said Thursday it had borrowed $11.5 billion from a group of 40 banks to fund loans in a move that shows just how deep the lending crisis has become.

Countrywide made the move amid a credit crunch that has driven a number of its smaller peers to bankruptcy.

Countrywide shares fell $5.14, or more than 24 percent, to $16.15 in afternoon trading. The stock has lost more than half its value since January.

The credit worries have grown as the secondary market for mortgages all but disappeared in recent weeks. Investors have worried about the value of loans and rising delinquencies and defaults.

Mortgage lenders rely on the secondary markets to borrow money to make more loans. The problems started as subprime mortgages _ loans given to customers with poor credit history _ started going delinquent and defaulting at faster rates.

Dell says it will reduce earnings by up to $150 million

DALLAS — Computer maker Dell Inc. on Thursday said it will reduce more than four years' worth of earnings by up to $150 million after an internal probe found the company misled its auditors and manipulated results to meet performance goals.

The struggling company said its net income for the restatement period will be reduced by between $50 million and $150 million, or 2 cents to 7 cents per share.

The largest reductions in quarterly profits were expected to be in the first quarter of fiscal 2003 and the second quarter of fiscal 2004, each lowered between 10 percent and 13 percent.

It will restate all of fiscal 2003 through 2006 and the first quarter of fiscal 2007, in total.

The investigation, which began in August 2006 and evaluated more than 5 million documents, "identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets," Dell said.

Whole Foods gets tentative green light to buy Wild Oats

WASHINGTON — A federal judge on Thursday gave a tentative green light to premium grocer Whole Foods Market Inc.'s plan to buy rival Wild Oats Markets Inc., rejecting arguments the deal would stifle competition and lead to higher prices.

The judge denied a request by the Federal Trade Commission to temporarily block the $565 million deal. The government had said it would appeal such a ruling.

U.S. District Judge Paul L. Friedman's reasoning was filed in a 93-page document that was sealed because it contains corporate secrets.

Whole Foods operates 190 stores, while Colorado-based Wild Oats has about 110. Both are relatively small players in the grocery business, but government lawyers said the combined company would essentially corner the industry market on premium and organic food.

New-home construction fell to record low in July

WASHINGTON — Construction of new homes fell in July to the lowest level in 10 1/2 years, and analysts said there is no end in sight to the deepening housing slump.

The Commerce Department reported Thursday that construction of new homes and apartments dropped by 6.1 percent in July from the June pace to an annual rate of 1.38 million units.

That was down 20.9 percent from the pace of activity a year ago and represented the slowest construction pace since January 1997.

Analysts said the housing problems are worsening because of rising mortgage defaults, especially in the market for subprime loans. That is dumping more homes on an already glutted market and causing banks to tighten up on lending standards, making it harder for prospective buyers to qualify for new mortgages.

Fannie Mae reports profit dropped 36% last year, forecasts more losses

WASHINGTON — Fannie Mae, the largest U.S. buyer and guarantor of home mortgages, reported Thursday that its profit dropped 36 percent in 2006 and said it expects higher delinquencies and credit losses this year from the turbulence in the mortgage market.

The government-sponsored company, which finances or guarantees one of every five home loans in the United States, said it earned $4.1 billion, or $3.65 a share in 2006, down from $6.35 billion, or $6.01 a share, in 2005 and $5 billion, or $4.94 a share, in 2004.

The decline in profit in 2006 was expected, mainly because of reductions in interest income and ballooning costs from Fannie Mae's reworking of its accounting following a $6.3 billion scandal that came to light in September 2004.

Hewlett-Packard sales and profit soar over expectations

SAN JOSE, Calif. — Hewlett-Packard Co.'s third-quarter sales and profit breezed past Wall Street's estimates as the technology bellwether continued to cash in on healthy sales of laptop computers and lucrative printing ink. Shares rose more than 2 percent on a higher financial forecast.

HP's net income for the quarter ended July 31 was $1.78 billion, or 66 cents per share, a 29 percent jump from the $1.38 billion, or 48 cents per share in the year-ago period. Excluding one-time charges, the Palo Alto-based company earned 71 cents per share, 5 cents higher than the average estimate of analysts polled by Thomson Financial.

Sales for the period were $25.38 billion, a 16 percent increase from the $21.89 billion recorded a year ago. Revenues were more than $1 billion higher than the $24.09 billion in sales that analysts had been predicting

Diebold fails to sell voting-machine business amid criticism

NORTH CANTON, Ohio — Diebold Inc. said Thursday it has failed to sell its voting technology business, which is used in elections across the country, amid criticism that its voting machines were not reliable.

Instead, the company said, it will allow the unit to operate more independently, giving it a separate board of directors that includes independent members and perhaps a new management structure.

Diebold also slashed its revenue outlook $120 million for the year for the unit because of delays by several states in purchasing voting equipment and said that will cut the company's earnings by 27 cents per share for the year.

Owner of Olive Garden, Red Lobster to buy Rare Hospitality for $1.19 billion

ORLANDO, Fla. — Darden Restaurants Inc., which operates the Olive Garden and Red Lobster restaurant chains, said Thursday it agreed to buy Rare Hospitality Inc. for about $1.19 billion.

Darden said it would buy all the company's outstanding shares in a tender offer with a price of $38.15 per share. The price is a 39 percent premium to Rare's closing price Thursday of $27.51. The deal value is based on 31.1 million shares outstanding.

Darden valued the deal at $1.4 billion, which includes outstanding debt and capital lease obligations.

Rare owns and operates 317 restaurants, including 287 LongHorn Steakhouse restaurants and 28 Capital Grille restaurants.

Fifth Third Bancorp buying First Charter Corp. in $1.09 billion deal

CINCINNATI — Fifth Third Bancorp said Thursday it is buying First Charter Corp. in a deal valued at $1.09 billion, expanding its presence in the southeast to North Carolina and suburban Atlanta.

Cincinnati-based Fifth Third said the deal will be financed with stock and 30 percent cash. The company will pay $31 per share, a 53 percent premium to First Charter's closing price of $20.25 on Wednesday.

First Charter shares hit a 52-week high of $29.35, before closing at $27.94, up $7.69, or 38 percent. Shares have traded as low as $17.78 in the past year.

Fifth Third shares fell to a 52-week low of $35.27 before finishing at $36.39, down 99 cents, or 2.7 percent. The shares have been as high as $43.32 in the past year.

The First Charter acquisition will give Fifth Third 57 retail locations and 134 automatic teller machines in North Carolina, as well as five retail locations and six ATMs in Georgia.

Wall Street numbers

The Dow industrial average fell 15.69, or 0.12 percent, to 12,845.78.

The Standard & Poor's rose 4.56, or 0.32 percent, to 1,411.26, and the Nasdaq composite index dropped 7.76, or 0.32 percent, to 2,451.07.

Light, sweet crude for September delivery fell $2.33 to settle at $71 a barrel on the New York Mercantile Exchange.

September gasoline fell 3.05 cents to settle at $1.9783 a gallon.

Nymex heating oil fell 4.4 cents to settle at $1.9829 a gallon, while natural gas rose 1.1 cents to settle at $6.875 per 1,000 cubic feet.