BUSINESS BRIEFS
$100 billion in Fed loans available to banks this month
Advertiser Staff and News Services
WASHINGTON — The Federal Reserve is taking bigger steps to ease the nation's credit crisis, including increasing the amount of loans it plans to make available to banks this month to $100 billion.
The Fed announced yesterday that it will boost the size of auctions planned for March 10 and March 24 to $50 billion each. That is up from the $30 billion limits it had previously announced. The auctions serve as short-term loans to get banks the cash they need to keep lending to their customers.
The Fed, in a statement, said it planned to continue the auctions for at least six months and would move to even larger auction amounts if needed.
CONSUMER CREDIT DEBT UP BY 3.3%
WASHINGTON — Consumers increased their borrowing in January, especially relying on credit cards to finance their purchases.
The Federal Reserve reported yesterday that consumer credit increased at an annual rate of 3.3 percent in January. That was up from a 1.8 percent growth rate in December and marked the fastest pace since November.
The pickup in January pushed up total consumer debt by $6.9 billion to $2.52 trillion. That was on target with economists' expectations.
SOUTHWEST PLANES FLEW WITHOUT OK
FORT WORTH, Texas — A "twofold breakdown" in safety procedures at Southwest Airlines and the Federal Aviation Administration resulted in airplanes flying without being inspected for potentially dangerous fuselage cracks last year, FAA officials said.
The agency denied Southwest's assertion that the FAA had approved a plan last March to continue flying 46 Boeing 737s for up to 10 days despite having missed key inspections. Small cracks were discovered on six aircraft once they were examined.
Although several agency employees were aware that Southwest planes were flying despite the lack of inspections, "no FAA employees have any authorization to provide an alternative" to the rules, said Peggy Gilligan, the agency's deputy associate administrator for aviation safety.
SHARPER IMAGE BORROWING OK'D
WASHINGTON — The judge overseeing Sharper Image Corp.'s bankruptcy case yesterday authorized the specialty retailer to borrow the rest of the money available under a $60 million financing arrangement.
Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., signed an order enabling Sharper Image to use the financing to operate its business while it restructures in bankruptcy.
Sharper Image, a retailer that sells an eclectic mix of gadgets ranging from massage chairs to an R2-D2 Interactive Droid, filed for bankruptcy on Feb. 19.
WAL-MART DOING MORE LOBBYING
WASHINGTON — Wal-Mart, the world's largest retailer, jacked up its lobbying budget by 60 percent in 2007, spending $4 million to influence the government on issues ranging from energy efficiency to retail crime.
A spokeswoman in company's Washington office said Wal-Mart decided around 2004 that it needed to focus more on federal relations and better educate policymakers on the many issues affecting the global retailer and employer. The company has 12 registered lobbyists now, up from two in 1999.
OIL TRADES ABOVE $106, SETTLES LOWER
NEW YORK — Oil prices jumped to a record price above $106 yesterday but settled lower, extending their recent pattern of choppy trading after a weak jobs report convinced many traders that the Federal Reserve's interest rate cutting campaign will continue.
Light, sweet crude for April delivery fell 32 cents to settle at $105.15 a barrel on the New York Mercantile Exchange. But prices fluctuated widely, setting a trading record high of $106.54 and falling as low as $103.91.
