FINANCIAL: Late payments for loans dip slightly

Washington —- Late payments on consumer loans dipped slightly in the first three months of the year but remained at a level not seen since the early 1990s. The American Bankers Association said Wednesday that late payments on a broad sample of consumer loans fell to 2.62 percent in the January-March quarter, down from 2.65 percent in the last quarter of 2007. Still, it was the second-highest level since the first quarter of 1992.

Bankruptcy rates increase

The softening economy and the collapse of the housing market caused U.S. businesses to file for bankruptcy protection at a higher annualized rate than individuals, according to data compiled from June court records. U.S. bankruptcy filings during the month rose 33 percent from a year earlier and may surpass 1 million in a year for the first time since bankruptcy laws were tightened in October 2005. Individuals this year have filed at an annualized rate that is 23 percent above 2007, while total commercial bankruptcies rose 34 percent, according to data compiled by Jupiter eSources LLC of Oklahoma City.

FOOD / BEVERAGE: Kroger expands ground beef recall

Kroger Co. expanded its voluntary recall of some ground beef products beyond stores in Michigan and parts of Ohio to its stores in more than 20 states, including Georgia. Meat obtained from one of Kroger's suppliers, Nebraska Beef Ltd., has been linked to illness reported in Michigan and Ohio between May 31 and June 8 caused by E. coli bacteria. The recall includes Private Selection Natural ground beef sold in 16-ounce packages from the self-service meat case. The "sell by" dates are July 11 through July 21, 2008. Consumers who have questions may contact Kroger toll-free at 1-800-632-6900 or online at www.kroger.com/recalls.

HEALTH CARE: UnitedHealth to cut 4,000 jobs

Minneapolis —- UnitedHealth Group Inc. will cut at least 4,000 jobs, or 5 percent of its work force, in a restructuring and warned Wednesday that a weaker environment and higher costs will cut into profits this year. The company also said it will pay $895 million to settle lawsuits over stock options backdating and will pay $17 million into a fund in an agreement to resolve a suit related to the Employee Retirement Income Security Act.

LEGAL: Hedge fund fugitive surrenders

New York —- A hedge fund swindler who set off a national manhunt when he faked his suicide to avoid reporting to prison surrendered Wednesday to Massachusetts police after three weeks in which authorities suspected he was hiding out in RV parks and highway rest areas. Authorities say his mother helped broker the surrender. Samuel Israel III, 48, walked into the police station in Southwick, Mass., and surrendered, officials said. Israel disappeared June 9, just hours before he was to report to prison to begin serving a 20-year sentence handed down for his role in the collapse of the Bayou hedge funds. Israel's SUV was found abandoned on a bridge over the Hudson River with the words "Suicide is Painless" —- the theme song for the "M*A*S*H" TV show —- scrawled in dust on the hood.

Creditors turn up heat on Ply-Mart

Three Ply-Mart creditors have filed a petition in U.S. Bankruptcy Court in Atlanta that could force the 40-year-old Norcross-based wood supply company into bankruptcy. The company is already in receivership and is trying to keep two of its divisions alive by selling them. The company has cited the decline in the housing industry for its problems. The three companies —- PrimeSource Building Products, Dixie Plywood Company of Atlanta and J.B. Hunt Transport Inc., filed the petition for involuntary bankruptcy —- saying they have unpaid invoices totaling $1.19 million. The petition was filed Tuesday.

MANUFACTURING: German giant to eliminate jobs

Frankfurt, Germany —- German industrial conglomerate Siemens AG said Wednesday that it planned to cut jobs as a result of the economic downturn but didn't specify the number of positions. Media reports previously said the company would slash up to 4 percent of its work force worldwide, or about 17,200 jobs.

MEDIA: Radio company re-signs Limbaugh

Striking a deal estimated to be worth $400 million through 2016, conservative talk radio host Rush Limbaugh has renewed his contract with Clear Channel Communications and its syndication subsidiary, Premiere Radio Networks. The contract renewal was announced Wednesday by the companies, and the financial details were provided by Limbaugh in an interview with The New York Times Magazine for an article to be published on Sunday. In the interview, Limbaugh said the new contract would pay him about $38 million a year for eight years. He also said he would receive a $100 million signing bonus.

Clear Channel to rearrange ads

Clear Channel Communications Inc. will start offering advertisers more slots during times of peak demand and cut commercial time when fewer listeners are tuned in. The strategy will use two years of audience data to rearrange ad slots, Clear Channel radio unit chief John Hogan said Wednesday. "We know that advertisers use radio differently at different times for different reasons," Hogan said. "This is an evolution of our existing strategy, which will increase overall revenue because we will have the right minutes in the right place."

REAL ESTATE: Loan program slows down in May

Washington —- The pace of the mortgage industry's efforts to assist troubled borrowers declined in May, as critics questioned lenders' progress in aiding U.S. homeowners facing foreclosure. Hope Now, a group backed by the Bush administration to help stem the mortgage crisis, said Wednesday that about 169,000 borrowers received some form of loan workout in May, down from 177,000 a month earlier. The group said it is on pace to assist about 520,000 borrowers in the second quarter, the highest number in any quarter since the effort started last year.

REGULATORY: EU, U.S. near privacy-rights deal

Brussels, Belgium —- The European Union and the United States are close to agreeing on how to protect personal and private data while letting law enforcement officials share information to combat organized crime and terrorism. Eighteen months of closed-door talks between European and American officials have led to agreement on key principles for data-sharing, according to Jonathan Faull, director of the European Commission's justice and interior affairs department.

Paulson: System needs overhaul

Treasury Secretary Henry Paulson on Wednesday called for regulatory changes that would allow financial firms to fail without threatening broader market stability. The Treasury chief also proposed steps providing for the president to approve of any use of taxpayer funds to aid a financial company. In a speech in London, Paulson identified a legal gap that leaves unspecified how to deal with failures of companies that don't take deposits, such as investment banks. "We need to create a resolution process that ensures the financial system can withstand the failure of a large, complex financial firm," Paulson said in the speech at Chatham House, an international affairs research organization.

TECHNOLOGY: Report: Microsoft has new plan

San Francisco —- Unable to strike a deal on its own, Microsoft Corp. reportedly is hoping to snap up Yahoo's online search operations with the help of News Corp. and Time Warner Inc. The latest twist in Microsoft's convoluted courtship caused Yahoo's shares to rise more than 3 percent in Wednesday's sinking stock market. If nothing else, the enthusiastic reaction to the unconfirmed report in The Wall Street Journal served as another reminder that investors want Yahoo to pursue a different path than the one mapped out by Chief Executive Jerry Yang. Recognizing Yahoo's vulnerability, Microsoft is trying to recruit News Corp., Time Warner's AOL or other media partners to put together a joint bid that would slice Yahoo into pieces, the Journal said.

TRANSPORTATION: Midwest to ask staff for pay cuts

Milwaukee —- Midwest Air Group Inc.'s chief executive says the company is cutting pay for many employees, including a 40 percent cut for himself. Tim Hoeksema told employees in a memo Wednesday that the airline must make changes to survive amid soaring fuel costs. Midwest plans to ask unions for pilots and flight attendants to approve pay cuts that would bring their salaries in line with others in the industry.

Probe: Southwest, FAA too cozy

Washington —- A cozy relationship between the Federal Aviation Administration and Southwest Airlines led to safety lapses last year that put thousands of air passengers at risk, according to a probe of the agency released Wednesday. The Inspector General's Office of the Department of Transportation said the FAA developed "an overly collaborative relationship" with Southwest. The FAA admitted earlier this year its inspectors improperly allowed Southwest to fly 45 Boeing 737 jets that needed to be inspected for fuselage cracks.

UTILITIES / ENERGY: Solar application moratorium lifted

Washington —- The government said Wednesday that it is calling off a recently announced moratorium on applications to build solar plants on public lands. The Bureau of Land Management made the announcement after public opposition to its original decision, reached at the end of May. The BLM had wanted to put new applications for solar plants on federal land on hold while undertaking a comprehensive review of potential environmental impact from such plants. That review was not scheduled for completion until May 2010.

WORKPLACE: Wal-Mart loses appeal in bias case

Wal-Mart Stores Inc. lost its appeal of a jury verdict in a discrimination case and was ordered to pay $900,000 in damages. A unanimous three-judge appeals court panel in New York refused to throw out a 2006 ruling that upheld part of a $7.5 million award to a worker who claimed Wal-Mart gave him a less-desirable job because he had cerebral palsy. "I hope this finally sends a message that they can't treat disabled people as second-class citizens," Douglas Wigdor, an attorney for plaintiff Patrick Brady, said in an interview.