Business Digest

March 19, 2010 at 12:00a.m.

Financial regulators got reward bonuses

wASHINGTON

As banks gambled on the risky mortgages that helped create the worst financial crisis in generations, the U.S. government handed out millions of dollars in bonuses to regulators at agencies that missed or ignored warning signs that the system was on the verge of a meltdown.

The bonuses, released in response to a Freedom of Information Act request, were part of a reward program little known outside the government. Some government regulators got tens of thousands of dollars in perks, boosting their salaries by almost 25 percent. Often, though, rewards amounted to just a few hundred dollars for employees who came up with good ideas.

J.D. Power: Porsche most dependable

NEW YORK

Porsche shot to the top of a closely watched study of long-term vehicle dependability, overtaking U.S. and Japanese rivals, J.D. Power and Associates said Thursday.

The German sports-car brand took the No. 1 spot in the annual study, which gave it ninth place last year. Lincoln came in second, while Buick and Lexus tied for third. Mercury and Toyota rounded out the top five.

MGM up for sale

LOS ANGELES

Metro-Goldwyn-Mayer is preparing to be sold again and is stressing the value of its film archive as a major asset.

Six companies made nonbinding bids in January for MGM, which owns the rights to 4,100 movies and TV shows and has a stake in future James Bond and “The Hobbit” films. Now MGM is preparing to receive binding acquisition offers today.

It is unclear how many suitors are still in the running, but Time Warner Inc., Lions Gate Entertainment Corp. and billionaire Len Blavatnik’s Access Industries are expected to make bids.

Mortgage rates still below 5 percent

WASHINGTON

Mortgage rates held below the 5 percent threshold for the third-straight week as the Federal Reserve prepares to end a program that has kept rates at or near record lows.

The average rate on a 30-year fixed-rate mortgage edged up to 4.96 percent this week from 4.95 percent a week earlier, the mortgage finance company Freddie Mac said Thursday.

The average rate on a 15-year fixed-rate mortgage was 4.33 percent, up from 4.32 percent last week, according to Freddie Mac.

Mixed data on jobs

WASHINGTON

The picture of an economy growing modestly without producing inflation yet struggling to create jobs emerged from government reports Thursday.

The number of newly laid-off workers requesting jobless benefits fell slightly last week for the third-straight time. But initial claims remain above levels that would signal net job gains.

New claims for unemployment aid fell 5,000 to a seasonally adjusted 457,000, the Labor Department said. That nearly matched analysts’ estimates of 455,000, according to Thomson Reuters.

In a separate report, the Labor Department said consumer prices were flat in February.

Associated Press