NEW YORK, Feb. 18 (UPI) -- The Air Lines Pilots Association has given Delta and Northwest Airlines (NYSE:NWA) the green light to continue with merger discussions, it was reported Monday.

The critical step means the pilots' union has given a conceptual nod of approval to the portion of the merger plan that blends each company's rules regarding pilot seniority, pay, rank and what size aircraft pilots will be allowed to fly, the Cincinnati Enquirer reported.

The boards of directors from Delta and Northwest Airlines could decide as early as Wednesday whether or not they will create the world's largest airline, the report said.

Delta Chief Executive Officer Richard Anderson has said any joining of the two companies would involve "seniority protection."

Delta's board is scheduled to meet in New York Wednesday and Northwest is also considering gathering its board together the same day, a source said.

House to look into Ashcroft appointment

WASHINGTON, Feb. 18 (UPI) -- A congressional subcommittee wants to know why former U.S. Attorney General John Ashcroft was appointed to a multimillion-dollar corporate monitor position.

New Jersey U.S. Attorney Christopher Christie appointed Ashcroft to the position that could result in $27 million to $52 million in fees for his Washington consulting firm, The Star-Ledger newspaper in Newark, N.J., reported Monday.

Neither Christie nor Ashcroft have responded to the invitation to meet with the U.S. House of Representatives Judiciary Committee group that investigates commercial and administrative law, the report said. Christie, however, told reporters Thursday, "If my bosses at the Department of Justice call and ask me to come and testify, I will follow their direction."

The requests to meet with the committee on Feb. 26 were sent out two weeks ago, the report said.

Monitors are often hired to oversee out-of-court settlements that involve companies involved in federal prosecution. Zimmer Holdings (NYSE:ZMH), an Indiana manufacturer has agreed to have a monitor oversee a fraud investigation that Christie's office is pursuing.

European markets post strong gains Monday

LONDON, Feb. 18 (UPI) -- European markets rallied throughout the day Monday, posting gains in Germany, France and the United Kingdom.

The strongest gains were in financial markets where investors are hedging bets based on the British government's announcement it was taking over troubled Northern Rock bank.

In Britain, the FTSE 100 rose 159 points to 5,946.60, a gain of 2.75 percent.

In Germany, the DAX 30 gained 135.12, up 1.98 percent to 6,967.55.

In France, the CAC 40 index also gained, up 90.01 points to 4,861.80, up 1.89 percent.

The DJ Stoxx 50 covering Eurozone indexes gained 69.06 points to 3,236.70, up 2.1 percent.

Suits allege Michigan Ponzi scheme

PONTIAC, Mich., Feb. 18 (UPI) -- Attorneys filed two lawsuits alleging Doeren Mayhew and Co. directors engaged in a Ponzi scheme that lasted nine years, it was reported Monday.

The two suits, filed in Oakland Circuit Court in Michigan, allege that James O'Rilley and Todd Fox convinced victims to invest in a limited liability companies, saying they had telephone service contracts with various hotels and casinos, The Detroit News reported.

"But, they had paperwork, bank statements, that would clearly show it was all a fraud," one attorney said.

"Investors approached them at barbecues about the investments and they were always assured everything was solid," John W. Schryber, a Washington attorney, told the News.

Ponzi schemes work by using money from new investors to pay dividends to previous investors. But, as new investors become hard to find, the dividends -- supposedly coming from legitimate companies -- begin to dry up.

In the scheme that lasted from 1998 to 2007, the companies were fabricated, Schryber alleged.

One suit was filed on behalf of 70 people who lost $250 million but the second lawsuit, involving a dozen plaintiffs, could be expanded to a class action suit involving between 500 and 1,200 plaintiffs, the report said.