U.S. markets pitch downward Monday
NEW YORK, March 10 (UPI) -- U.S. stock indexes rallied briefly Monday morning but spent most of the day pitched downward, falling for the third straight business day.
With no major reports issued Monday, investors fell back on inflation worries as oil peaked to a record $108.21 in midday, before settling at $107.95 per barrel.
At the close Monday, the Dow Jones industrial average had dropped 153.54 points to 11,740.15 points, off 1.29 percent. The Standard & Poor's index was down 19.98 points to 1,273.39 points, off 1.54 percent. The Nasdaq composite index of tech-dominated stock slid 1.95 percent to 2,169.34 points, down 43.15 points.
The 10-year U.S. Treasury note advanced 22/32 to yield 3.459 percent.
The euro traded at $1.5348 from $1.5378 Friday, while the dollar traded at 101.74 from 102.76 yen Friday.
In Tokyo, the Nikkei index dropped 250.67 points Monday to 12,532.13, off 0.2 percent.
In London, the FTSE 100 index dropped 56.00 points Monday to 5,643.90 points, down 0.98 percent.
Whistle-blowers say FAA shares blame
WASHINGTON, March 10 (UPI) -- U.S. Federal Aviation Administration managers overrode safety inspectors' concerns and leaked information to a major U.S. airline, USA Today reported Monday.
The FAA fined Southwest Airlines $10.2 million Thursday for allowing 46 jets to fly beyond the dates they were required to undergo structural inspections. Subsequent inspections found some damaged aircraft, although none of the problems resulted in accidents.
But FAA inspector C. Bobby Boutris said he had written memos in 2003 warning his supervisors the airline wasn't keeping up with maintenance programs. Another inspector, Douglas Peters, said FAA officials had objected to his concerns about the airline, USA Today said.
The underlying cause: managers at the FAA and Southwest were too cozy with one another, the report alleged.
The inspectors are to testify April 3 in front of the federal Office of Special Counsel, which monitors whistle-blowers.
Northrop-EADS outmaneuvered Boeing
WASHINGTON, March 10 (UPI) -- Boeing's rival for a $35 billion U.S. Air Force contract spent $100 million on a prototype plane to help secure the bid, The New York Times reported Monday.
Before the contract was awarded, Northrop Grumman and the European Aeronautic Defense and Space Co. flew the prototype over Spain, where it successfully re-fueled a Portuguese F-16 fighter.
The demonstration helped explain how the contract got away from Boeing, considered a heavy favorite to win the deal, the Times reported.
But, awarding the contract to a joint venture the includes a foreign manufacturer has stirred debate in the capital about protecting jobs and military secrets.
"We are at risk of losing a major part of our aerospace industry to the Europeans forever," said U.S. Sen. Patty Murray, D-Wash.
Boeing is giving "serious consideration to filing a protest," Mark McGraw, a Being vice president in charge of the tanker program, said Friday.
The debate points on jobs and national security are murky, the report says. Northrop-EADS has promised to create 25,000 jobs in 49 states.
Boeing would have created 44,000 U.S. jobs.
But, many Boeing parts are made overseas and the 50-year old technology is too old to be a high-priority military secret, analysts said.
Subprime borrowers are frustrating bankers
WASHINGTON, March 10 (UPI) -- U.S. homeowners are walking away from their mortgage agreements in increasing numbers, frustrating bankers, USA Today said Monday.
The Mortgage Bankers Association said last week almost 3 million homeowners were behind on their mortgage payments.
Bankers are trying to help, but many homeowners are wary.
Fearing news from the bank is always bad, more than 23 percent of borrowers involved in a foreclosure proceeding had no contact with the lender prior to the action, the report said.
Almost a fifth -- 18 percent -- involve absentee homeowners.
"I can't get you to pay if you've got no skin in the game," said Dennis Lauria, senior vice president of Popular Mortgage Servicing in Cherry Hill, N.J.
Lenders are also wary. Afraid of being stuck with more unoccupied homes, they are pushing homeowners to try government programs to renegotiate terms.
The success has been limited so far, but work has been picking up at Safeguard Properties, which helps care for properties that have been abandoned.
Business at Safeguard Properties has risen more than 15 percent during the past year, the report said.
