Busines Digest | Bernanke: Economy fuels jobless rate

Bernanke: Economy fuels jobless rate

WASHINGTON

Federal Reserve Chairman Ben Bernanke on Friday gave an endorsement to one side in a debate among economists about why the unemployment rate is so high. Bernanke agreed with those who see the problem being more tied to a weak economy and less so to workers lacking the necessary skills for jobs that are available. That assessment is a big reason why the Fed is widely expected to take more steps soon to stimulate economic growth.

It’s an important debate, because its implications affect most Americans. Lowering interest rates won’t help unemployed factory workers find jobs in an industry they may not be qualified for, such as those in the health-care field.

Countrywide CEO settles for $67.5M

LOS ANGELES

Countrywide Financial Corp. co-founder Angelo Mozilo has agreed to a $67.5 million settlement to avoid trial on civil-fraud and insider-trading charges that alleged he profited from doling out risky mortgages while misleading investors about the risks.

Two other former Countrywide executives also settled before trial next week on charges filed by the Securities and Exchange Commission. But employment agreements that protect the men from lawsuits involving the failed lender mean Bank of America Corp., which bought Countrywide in July 2008, will pick up most of the tab.

The settlement announced Friday spares the executives the risk of a guilty verdict that could have been used against them in lawsuits by shareholders or by prosecutors.

GM chairman’s comments clarified

WASHINGTON

General Motors Co. on Friday clarified comments made earlier this week by Chairman Ed Whitacre about the automaker’s expected initial public-stock offering, saying the remarks “were not intended.”

Whitacre told reporters in San Antonio on Wednesday that GM’s IPO would take place sometime in November and estimated the shares would be priced from $20 to $25 per share. Investors have been waiting for GM to announce the share price, which traditionally is done in a filing with the U.S. Securities and Exchange Commission.

GM said Friday in a filing with the SEC that a price range for the offering had not yet been determined “and will be disclosed only after it has been determined.” GM said it could not predict whether the offering will be priced in November.

Study: 17% of costs blamed on obesity

ATLANTA

Nearly 17 percent of U.S. medical costs can be blamed on obesity, according to new research that suggests the nation’s weight problem may be having close to twice the impact on medical spending as previously estimated.

One expert acknowledged that past estimates likely low-balled the costs and said the new study — which places obesity-related medical costs at around $168 billion — probably is closer to the truth.

Associated Press