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U.S. markets gain marginally Tuesday

NEW YORK, Nov. 25 (UPI) -- Financial stocks headed up, but broader stocks lost momentum Tuesday after the U.S. Federal Reserve Board announced a new program to ease consumer credit.

The Fed said it would loan $200 billion to investors for purchases of auto-, credit- and student loan-backed securities, an effort helped with a $20 billion contribution from the U.S. Treasury.

Citigroup Inc., involved in a multi-billion federal rescue announced Sunday, rose 3.36 percent, while Bank of America shares gained 3.15 percent.

The Dow Jones industrial average closed up 0.43 percent, gaining 36.08 points to 8,479.47. The Standard & Poor's 500 rose 0.66 percent, 5.60 points, to 857.41. The Nasdaq composite index fell 0.5 percent, losing 7.29 points to 1,464.73.

On the New York Stock Exchange 2,153 stocks advanced and 1,005 declined on a volume of 9.4 billion shared traded.

The benchmark 10-year U.S. Treasury bond rose 2 4/32 to yield 3.085 percent.

The euro rose to $1.3061, compared to Monday's $1.2902. Against the Japanese yen, the dollar fell to 95.27 yen, from Monday's 96.98 yen.

In Tokyo, the Nikkei average gained 413.14 points to 8,323.93, up 5.22 percent.

The FTSE 100 index in London rose 18.29 points to 4,171.25, up 0.44 percent.

King says BOE may cut rates again

LONDON, Nov. 25 (UPI) -- Bank of England Gov. Mervyn King said Tuesday the central bank may need to cut rates to stimulate the country's sluggish lending.

"I am in no doubt that the single most pressing challenge to domestic economic policy is to get the banking system to get lending in any normal sense. That is more important than anything else at present." King told members of the Treasury Select Committee, The Times of London reported Tuesday.

"We may need to cut (the) bank rate more than we would otherwise have done," King said.

The bank has dropped key lending rates from 3 percent to 2 percent since Oct. 8.

King said reduced lending may lead to deflation. Further, he said, lending to spur the economy would be in the best interest of the country's financial firms.

"Banks are giving up profitable lending opportunity in order to behave defensively and reduce the size of their balance sheet," he said.

"Collectively that makes no sense at all because if all banks behave in that way, then the economy will go into a steep recession and the banks will themselves see bigger losses on pre-existing loans," he said.

Wachovia execs due hefty severance pay

CHARLOTTE, N.C., Nov. 25 (UPI) -- Ten top executives at North Carolina's Wachovia Corp. could receive nearly $100 million in severance pay if displaced by a Wells Fargo merger, records show.

Several executives are keeping their jobs and won't take part in the $98.1 million golden parachute contracts stipulate, The Charlotte (N.C.) Observer reported Tuesday.

Golden parachutes -- hefty severance packages given to executives when they leave companies -- have been frequently criticized since the financial crisis began.

Wachovia lost $24 billion in the third quarter this year but managed to survive by selling itself to Wells Fargo. The executive agreements assume the sale will be complete Dec. 31, the Observer said.

Wachovia spokeswoman Christy Phillips-Brown said only executives who leave because of the merger would receive severance pay.

Wachovia's Chief Executive Officer Bob Steel, who joined the bank in July, wasn't scheduled for severance pay because he has no employment agreement in place, the Observer said.

Leaving the bank at the end of the year are Vice Chairman Ben Jenkins, corporate and investment bank chief Steve Cummings, Chief Financial Officer David Zwiener, general counsel Jan Sherburne and human resources chief Shannon McFayden, the newspaper said.

Nissan drops two premier auto shows

CHICAGO, Nov. 25 (UPI) -- Nissan North America Inc. said it was dropping out of two of the country's premier auto shows in Chicago and Detroit to save money.

"In extraordinary market conditions, every company takes a fresh look at its marketing strategy and tactics," said Nissan spokesman Alan Buddendeck, the Chicago Tribune reported Tuesday.

Jerry Cizek, president of the Chicago Automobile Trade Association, producers of the Chicago Auto Show, said he would not accept the decision lying down. "We're going to keep lobbying to see if they will reconsider because Chicago is too important for Nissan North America," he said.

As the industry struggles with declining sales and a potential U.S. recession sets in, Cizek said exhibits in Chicago could decline 10 percent to 15 percent this year.

Ferrari, Rolls-Royce, Land Rover and Suzuki Motor Corp. are also dropping out of the Detroit auto show this year, while Porsche quit the Detroit show a year ago, the Detroit News reported.

Buddendeck said the company felt the shows were currently "not the best way to invest marketing money," the News reported.

"This is not a comment in any way about the importance of the Detroit or Chicago auto shows," Buddendeck said.