Federal regulators shut down bank in Illinois

Federal regulators shut down bank in Illinois

WASHINGTON — Regulators on Friday shut down Bank of Lincolnwood, a small bank in Illinois, marking the 37th failure this year of a federally insured bank. More are expected to succumb amid the pressures of the weak economy and mounting loan defaults.

The Federal Deposit Insurance Corp. was appointed receiver of the failed bank, based in Lincolnwood, Ill., which had about $214 million in assets and $202 million in deposits as of May 26.

Obama Cabinet members to skip mayors’ meeting

WASHINGTON — Steering clear of a messy labor dispute, the White House on Friday said Vice President Joe Biden and other members of President Barack Obama’s Cabinet have scrapped plans to attend a national mayors’ conference in Rhode Island rather than cross a picket line of local firefighters.

In a statement to The Associated Press, presidential spokesman Robert Gibbs said the Obama administration will redouble its efforts to work with the nation’s mayors in other ways. That includes a fresh invitation for the mayors to come to the White House.

Iran increases supply of nuclear materials

TEHRAN, Iran — Iran has boosted its supply and output of reactor-grade nuclear material significantly, according to a quarterly report issued Friday by the United Nations’ arms-control division.

Meanwhile, in Syria, international inspectors reported finding unexplained particles of modified uranium at a lab in Damascus, far from the site of an alleged nuclear site.

The inspectors said they discovered the artificially modified uranium particles in samples taken last year from a facility in the Syrian capital called Miniature Neutron Source Reactor. The report disclosed few other details about the discovery or Syria’s response to the agency’s request for an explanation.

Consumer borrowing falls

WASHINGTON — Borrowing by consumers fell by $15.7 billion in April as U.S. households continued to trim spending and put away their credit cards amid a severe recession.

The Federal Reserve said Friday the April decline was the second largest ever in dollar terms following March’s drop of $16.6 billion. March’s decline originally was reported as $11.1 billion, which had been the most on records dating to 1943.

The April decline was more than double the $6 billion drop that economists had expected. Analysts believe consumers will remain cautious as long as the unemployment rate keeps rising, which it did again in May.

Obama Homeland pick drops out of running

WASHINGTON — President Barack Obama’s pick for intelligence chief at the Homeland Security Department withdrew from consideration Friday amid questions about his role in the CIA’s interrogations of suspected terrorists.

Philip Mudd was scheduled to appear next week before senators considering his nomination as undersecretary of intelligence and analysis. He notified the White House on Friday that he was withdrawing his name because he did not want to be a distraction.

At issue was the extent of Mudd’s involvement in the interrogation program while he was a senior CIA official in the Bush administration. The interrogation methods have been criticized by Democratic lawmakers and Obama.

Fire at day-care center kills dozens in Mexico

MEXICO CITY (AP) — Flames engulfed a day-care center in northern Mexico on Friday, killing at least 29 children and injuring dozens as neighbors and teachers ran through thick, black smoke to pull preschoolers from the blaze, officials said.

The fire apparently started at tire depot Friday afternoon and spread to the neighboring ABC day-care center in the city of Hermosillo, said Jose Larrinaga, a spokesman for Sonora state investigators. There were about 100 children in the day care at the time.

Landslide buries 78

BEIJING — Rescuers searched for 78 missing people today after a landslide buried an iron-ore plant and several homes in a valley in southwestern China.

Seven people were rescued, three of whom were seriously injured, said an official.

Associated Press

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