AUTOMOTIVE: Sensor malfunction on VWs probed

Volkswagen AG's 2003 and 2004 New Beetles are being investigated by safety regulators for a sensor malfunction. The preliminary inquiry may involve 104,000 vehicles, the National Highway Traffic Safety Administration said Wednesday on its Web site. The agency said it received five complaints that the failure of the front crash sensor triggered the air bag warning light.

COMMODITIES: Gold, crude oil establish records

Gold futures rose to a record $949.20 an ounce after energy costs jumped. Crude oil rose to a record for a second straight day, reaching $101.32 a barrel in New York, extending the rally in the past year to 73 percent.

DEALS: Group withdraws offer for 3Com

Washington —- The $2.2 billion offer for 3Com made by a private equity group and a Chinese telecommunications firm is no longer on the table, The Associated Press reported, citing a person familiar with the matter. Shares of Massachusetts-based 3Com plunged. Early Wednesday, 3Com said in a news release that it was unable to satisfy the national security concerns of federal authorities reviewing the sale of the network equipment maker to Bain Capital Partners LLC and China's Huawei Technologies Co., which has strong ties to the Chinese government.

FINANCIAL

Thrift industry's losses set record

Washington —- The U.S. thrift industry on Wednesday reported a record $5.24 billion loss in the fourth quarter of 2007 —- the biggest quarterly loss since federal regulators first started collecting data. Office of Thrift Supervision Director John Reich said 2008 is going to be "very difficult" for thrifts. OTS said the $5.24 billion quarterly loss topped the previous record of $4.01 billion, set by the industry in the second quarter of 1988 in the midst of the savings and loan crisis. Reich cautioned that "this is not Banking and Thrift Crisis II," but did say he expects loan delinquencies to continue to climb.

GMAC to cut 15% of workers

Detroit —- GMAC LLC plans to cut about 930 jobs in its auto finance business as it restructures amid losses. The cuts announced Wednesday represent about 15 percent of the work force in the auto loan unit. The company says it will combine its offices into five regional centers in the Atlanta, Chicago, Dallas, Pittsburgh and Toronto areas.

Profits increase 18% at ING Groep

Amsterdam, Netherlands —- ING Groep NV, one of Europe's largest financial services companies, reported an 18 percent gain in fourth-quarter profit Wednesday from selling stakes in other companies and growth in its own operations. ING took a charge of 194 million euros ($284 million) to revalue assets related to subprime mortgages. Net profit was 2.48 billion euros ($3.63 billion), up from 2.10 billion euros a year earlier but including 1.02 billion euros ($1.50 billion) in one-time gains.

Garmin's earnings beat expectations

Olathe, Kan. —- Navigational device maker Garmin Ltd. said Wednesday that its fourth-quarter profit jumped 70 percent as holiday shoppers doubled the company's sales, helping it easily beat Wall Street forecasts. For the three months ended Dec. 29, the company earned $307.3 million, or $1.39 per share, compared with $180.3 million, or 82 cents per share, in the same period a year ago. Excluding favorable currency exchange rates, Garmin said per-share profits rose to $1.31 from 87 cents.

Profit increases at Interface

Interface Inc.'s fourth-quarter net income rose to $20.3 million, or 33 cents a share, from $12.1 million, or 21 cents a share, a year earlier, in part because of strong demand for modular carpet, as well as expansion into nonoffice markets. The Atlanta-based floor coverings and specialty chemicals provider said revenue rose 13 percent to $293.3 million.

LEGAL

Hedge fund chief charged with fraud

Miami —- The founder of the Lancer Group hedge funds and four other people are charged with defrauding investors out of more than $200 million by manipulating market prices and overvaluing securities, according to a federal indictment unsealed Wednesday. The indictment charges former fund manager Michael Lauer and the others with conspiracy and wire fraud.

Rogue trader acted alone, bank says

Paris —- Investigators of a $7 billion fraud at French bank Societe Generale say the only trader implicated acted alone. Investigators also said Wednesday they found no evidence that there were any personal monetary gains made through the allegedly unauthorized positions taken by futures trader Jerome Kerviel. In an interim report, internal investigators at France's second-largest bank said procedures were followed correctly but failed to stop Kerviel, 31, who is accused of carrying out trades that forced the bank to mop up almost 5 billion euros ($7.33 billion) in losses.

MANUFACTURING: G-P names chief for Europe, Africa

Tarek Hallaba has been named president of Georgia-Pacific's business in Europe, the Middle East and Africa. Hallaba, 55, will be based in Brussels, Belgium. Before joining G-P, Hallaba was president of the personal care business for Colgate-Palmolive. He will report to Kathy Walters, executive vice president for global consumer products. Atlanta-based Georgia-Pacific, a unit of Koch Industries, is one of the world's leading manufacturers and marketers of tissue, packaging, paper, building products, cellulose and related chemicals.

MEDIA: Ad sales up sharply for Internet radio

Advertising on Internet music radio stations almost tripled last year as listenership grew 26 percent, according to a report by AccuStream iMedia Research. Ad sales increased 194 percent to $80 million in 2007, AccuStream said in an e-mailed statement Wednesday.

RETAILING: Sharper Image files for bankruptcy

Sharper Image Corp. filed for bankruptcy protection after losing money in 11 of the last 13 quarters. The 31-year-old retailer will shed 90 stores while it deals with a "severe liquidity crisis" described in bankruptcy papers filed in Delaware.

UTILITIES / ENERGY: Gasoline demand declines again

U.S. gasoline demand fell for a fourth week, dropping 4.4 percent from a year earlier as pump prices approached $3 a gallon, MasterCard Inc. said in its weekly SpendingPulse report.