WASHINGTON — Households pushed their savings rate to the highest level in more than 15 years in May as a big boost in incomes from the government's stimulus program was devoted more to bolstering nest eggs than increased spending.

The higher savings rate is healthy in the long term, economists said. But without vigorous consumer spending, the government may have to do more to revive the economy, possibly through further tax breaks and spending.

The Commerce Department said yesterday that consumer spending rose 0.3 percent in May, in line with expectations. But incomes jumped 1.4 percent, the biggest gain in a year and easily outpacing the 0.3 percent increase that economists expected.

PROCEDURE IN PLACE FOR BANKS TO BUY WARRANTS

WASHINGTON — The Obama administration yesterday established its process for pricing billions of dollars worth of warrants that large banks must repurchase to exit the $700 billion bailout program.

The Treasury Department said the banks will make the first offer for the warrants. Treasury will then decide to sell at that price or make a counteroffer. If the government and a bank cannot agree on a fair price for the warrants, the two sides will have the right to use private appraisers.

Treasury also could auction to private bidders warrants from banks that choose not to repurchase them.

The banking industry immediately endorsed the plan, while critics said it could shortchange taxpayers in the long run.

MADOFF MUST GIVE UP $170 BILLION IN ASSETS

NEW YORK — Disgraced financier Bernard Madoff must forfeit $170 billion, a federal judge ordered yesterday.

U.S. District Judge Denny Chin entered a preliminary order of forfeiture, and acting U.S. Attorney Lev Dassin released a copy of the order last night. Madoff was ordered to give up his interests in all property, including real estate, investments, cars and boats.

According to earlier court documents, prosecutors reserved the right to pursue more than $170 billion in criminal forfeiture. That represents the total amount of money that could be connected to the fraud, not the amount stolen or lost.

NESTLE FACTORY DENIED DATA TO FDA, REPORTS SAY

NEW YORK — Inspection reports from a Nestle USA cookie dough factory released yesterday show the company refused several times to provide Food and Drug Administration inspectors with complaint logs, pest-control records and other information.

The records, which date back to 2004, were made public after Nestle's Toll House refrigerated, prepackaged cookie dough was found to be the likely culprit in an E. coli outbreak that has sickened 69 people in 29 states, according to estimates from the federal Centers for Disease Control. The CDC and the FDA are investigating the outbreak.