U.S. markets mixed Thursday
NEW YORK, March 18 (UPI) -- The Dow Jones industrial average extended a positive steak to eight days Thursday, after two government reports showed signs of economic stability.
The Labor Department said first-time jobless claims dropped for the third consecutive week. A Department of Commerce report said consumer prices were flat in February with core prices, which exclude energy and food items, up only 0.1 percent.
By close, the DJIA added 45.50 points, 0.42 percent, to 10,779.17. The Standard & Poor's 500 index dropped 0.03 percent, 0.38 points, to 1,165.83. The Nasdaq composite index added 2.19 points, 0.09 percent, to 2,391.28.
Dow components Bank of America lost 1.1 percent, while Alcoa Inc. shares shed 1.11 percent. Blue-chip winners included Hewlett-Packard, up 0.96 percent and du Pont, up 1.59 percent.
On the New York Stock Exchange, 1,281 shares advanced and 1,737 declined on a volume of 4.2 billion shares traded.
The benchmark 10-year U.S. treasury note fell 9/32 to yield 3.676 percent.
The euro fell to $1.3611 compared with Wednesday's $1.3741. Against the yen, the dollar rose to 90.38 yen compared with Wednesday's 90.27 yen.
In Japan, the Nikkei 225 index lost 102.95 points, 0.95 percent, to 10,744.03.
In Britain, the FTSE 100 index lost 0.04 percent, 2.01, to 5,642.62.
CBO says TARP will cost $109 billion
WASHINGTON, March 18 (UPI) -- The U.S. Congressional Budget Office said Thursday the $700 billion Troubled Asset Relief Program will end up costing the government $109 billion.
A major portion of the cost -- $36 billion -- is associated with the bailout of American International Group, while another $34 billion of the loss is connected to automotive industry bailouts, the CBO said in the third mandated report on the 2008 program.
The more than $200 billion of preferred stock the government purchased from hundreds of financial firms will net the government, "a very small net gain," CBO said in a statement.
The Office of Management and Budget estimates TARP will cost $127 billion with the $18 billion difference tied up in different estimates for the AIG bailout and for the Home Affordable Modification Program, the statement said.
The TARP program currently allows the U.S. Treasury to hold up to $699 billion in assets. CBO estimates $344 billion of that will be disbursed before the program comes to an end in October.
Money laundering to cost Wachovia $160M
MIAMI, March 18 (UPI) -- Wachovia Bank agreed to settle a money laundering case with a $160 million settlement, the U.S. Department of Justice said Thursday.
The Justice Department said Wachovia, which was purchased by Wells Fargo & Co., had "admitted failure to identify, detect, and report suspicious transactions in third-party payment processor accounts."
About $420 billion in transfers went through the bank without adequate money-laundering detection systems in place, The Wall Street Journal reported.
In a statement, Wachovia said it had spent $42 million in upgrades to its security system to "strengthen its ability to guard against unlawful use of its system by wrongdoers."
Prosecutors said some of the billions of dollars transferred from Mexican money exchange houses was used to buy planes for drug traffickers.
Federal attorney Jeffrey Sloman said, "Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations by laundering at least $110 million in drug proceeds. Corporate citizens, no matter how big or powerful, must be held accountable for their actions."
Wachovia agreed to pay $110 million to the U.S. Justice Department and $50 million to the U.S. Treasury, the Journal said.
Pine beetles threaten N. American forestry
VANCOUVER, British Columbia, March 18 (UPI) -- The pine beetle infestation of western Canadian forests is expected to close at least 16 major sawmills and cut exports by half, a report said Thursday.
The International Wood Markets Group forecast released in Vancouver, British Columbia, said losses due to the insects would also cause lumber prices to rise, the Vancouver Sun reported.
"Sawlog shortages caused by the mountain pine beetle could trigger the permanent closure of about 16 large primary sawmills and/or plywood production facilities within the British Columbia interior by 2018," the report said.
The pine beetle is expected to kill 11 billion square feet of timber in British Columbia and western Alberta, the report said.
Eradication efforts have been under way for the past 10 years in what the group called the largest-ever natural environmental disaster in North America, the Sun said.
