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The Honolulu Advertiser
Posted on: Thursday, September 10, 2009

BUSINESS BRIEFS
Consumer spending key as economy improves


Advertiser News Services

WASHINGTON — The recession is ending and the economy is finally growing again.

That's the message implicit in the Federal Reserve's latest survey of businesses around the country, which found economic activity stabilizing or improving in most regions. Economists warn the expansion is fragile and will have staying power only if consumers start spending more money. Rising unemployment that keeps Americans cautious could make for a plodding recovery in the months ahead.

The Labor Department will report today the number of new jobless claims filed last week, which could indicate whether the incipient recovery is slowing the pace of layoffs.

Wall Street economists expect that first-time claims for unemployment insurance benefits fell to a seasonally adjusted 560,000 from 570,000 the previous week, according to a survey by Thomson Reuters.

CONGRESS REOPENS SEC-MADOFF PROBE

WASHINGTON — Congress is reopening its inquiry into the Securities and Exchange Commission's failure to detect the multibillion-dollar fraud conducted for more than a decade by Bernard Madoff, this time seeking answers from the agency watchdog and potential lessons for lawmakers in crafting new financial rules.

The Senate Banking Committee is scheduled to hear testimony today from David Kotz, the SEC inspector general, who revealed in a detailed report last week how the agency bungled five investigations of Madoff's business between June 1992 and last December, when the disgraced financier confessed.

During that time span, the SEC received six "substantive complaints that raised significant red flags" regarding Madoff's operations, according to Kotz's report. But "a thorough and competent investigation or examination was never performed."

GM CHAIRMAN STARS IN TV AD CAMPAIGN

DETROIT — General Motors Co. Chairman Edward Whitacre Jr. will be the pitchman who starts the automaker's new advertising campaign this weekend with television spots urging people to try GM's new vehicles, a person briefed on the campaign said yesterday.

Whitacre, former CEO of telecommunications giant AT&T, was brought on to lead the board by the U.S. government in June as GM was preparing to emerge from Chapter 11 bankruptcy protection. In the ads, Whitacre will point to vehicles such as the Chevrolet Malibu sedan, the Chevrolet Equinox crossover and the Cadillac CTS as signs of a resurgent company, said the person, who was unidentified because the campaign hasn't been made public.

The spots will be followed by advertising that will focus on GM's four remaining brands, Chevrolet, Buick, GMC and Cadillac. Vice Chairman Bob Lutz has championed brand advertising as opposed to promotion of the corporation.

GM TO ANNOUNCE DECISION ON OPEL

DETROIT — The new General Motors Co. board apparently has decided what to do with its troubled German-based Opel unit, but nothing will be made public until German government officials and Opel's board are notified early today, a person familiar with the situation said.

The 13-member GM board yesterday was weighing four options for Opel, including keeping the operation or letting it slide into bankruptcy protection, said the person, who requested anonymity because of the sensitive nature of the decision.