Business news digest

REGION

Reassurances on AIG

COLUMBUS — State regulators say Ohio consumers with AIG insurance have no reason to fear, despite concerns about the company.

Financial giant American International Group Inc.’s poor health has prompted the Federal Reserve to provide an $85 billion bailout loan. However, regulators say AIG’s insurance units are solvent and able to pay claims.

Ohio Department of Insurance Director Mary Jo Hudson said the agency is monitoring the situation closely. The National Association of Insurance Commissioners says AIG is unlikely to fail.

But even if that were to happen, the group says policyholders would be paid before other creditors.

And the officials say if there isn’t enough money to satisfy all claims, states maintain backup funds to protect consumers.

NATION

Bill targets speculation

WASHINGTON — The House has approved measures to curb speculation in oil and other commodity markets, ignoring a White House veto threat. Lawmakers said federal regulators don’t currently have the necessary tools or manpower to track trading abuses.

The bill passed Thursday 283-133. It is aimed at certain hedge fund and large institutional traders and would give the Commodity Futures Trading Commission more staff and authority to limit the stake traders hold in certain markets. It also would require new reporting and other limits on traders including foreign trading boards that operate electronically in the United States. The bill now goes to the Senate.

Ike damages 49 platforms

WASHINGTON — The Interior Department says at least 49 offshore oil or natural gas production platforms in the Gulf of Mexico were destroyed by Hurricane Ike, and some may not be rebuilt.

It said in an assessment Thursday that the platforms accounted for 13,000 barrels of oil and 84 million cubic feet of natural gas a day. There are more than 3,800 production platforms in the Gulf producing 1.3 million barrels of oil a day and 7 billion cubic feet of gas a day. Most remain shut down.

The department also said five gas transmission pipeline systems sustained damage, although the extent of damage is not yet known. The report said it’s too early to say whether there have been any oil spills.

world

Chinese banking deal

BEIJING — Bank of China Ltd. and French bank LCF Rothschild announced a deal Thursday to develop private banking and asset-management services for China’s newly rich.

China’s fast-growing banking industry is eager to expand its foreign ties, and the latest deal came despite industry turmoil after the failure of Wall Street house Lehman Brothers.

Bank of China said it will buy a 20 percent stake in La Compagnie Financiere Edmond de Rothschild for 236.3 million euros ($340 million) and the two will develop private banking and asset-management services.

Bank of China is the country’s No. 3 commercial lender by assets but has its biggest foreign exposure. It said the latest deal was the first of its kind by a Chinese bank in an economy that uses the euro currency.

Vindicator wire reports