NATION

NATION

Negotiations slow between Chrysler, GM and UAW

DETROIT — Three people briefed on concession talks between Chrysler LLC, General Motors Corp. and the United Auto Workers say the negotiations have slowed as the union waits to see what the companies’ debtholders will give up.

GM and Chrysler face a government-imposed March 31 deadline to complete deals with the union to cut labor costs. They also must get debtholders take equity in exchange for part of the companies’ debt. Both companies are living on a total of $17.4 billion in federal loans.

The people briefed on the talks say neither the debtholders nor the union wants to make another move. They did not want to be identified because the talks are private.

Nation’s banks lost $32.1B in fourth quarter of 2008

WASHINGTON — Federal regulators now say the nation’s banks lost $32.1 billion in the final quarter of last year, even worse than the $26.2 billion originally reported last month.

The Federal Deposit Insurance Corp. says “significant” revisions it received from banks also lowered the industry’s net income for all of last year to $10.2 billion from $16.1 billion.

Rising losses on loans and eroding values of assets bit into the revenue of U.S. banks and thrifts in late 2008, causing them to post the first quarterly deficit in 18 years.

Associated Press